April 2025 Market Update
Coconut
Worldwide supply of coconut remains tight due to the heavy rains and flooding caused by La Niña. These severe weather conditions have caused shortages of raw materials in key producing countries including Indonesia, Vietnam, and the Philippines. As global demand continues to increase, supply continues to tighten.
Pineapple
This year, the Indonesian total raw material volume for pineapple is expected to align with that of 2024. However, the yield will be weighted towards the second half of 2025, tightening supply through the third quarter. Thailand expects to see a rebound in raw material production in 2025, a substantial recovery from the near-decade low harvest of 2024. Unfortunately, it is still forecast to fall short of the 6-year average.
Overall, pineapple supply will remain tight in the short term. Global pricing is expected to remain firm, with potential fluctuations depending on demand and crop performance.
Green Olives
Spain’s drought conditions and labor shortages have caused the 2024 crop of Queen (Gordal) olives to suffer again this year. The total harvest yield fell significantly short of the 10-year average. The harvest for smaller-sized Manzanilla olives was short, although there were more Hojiblancas picked in 2024 compared to 2023. Egypt and Argentina also faced a difficult olive crop year, furthering the tightening of the global olive supply.
On the other hand, Greece experienced a favorable crop thanks to periods of rain in the late summer aiding growth. However, overall global supply will remain short due to limited carryover stock from last year’s crop and low harvest yields in most olive-producing countries.
Olive Oil
The Extra Virgin Olive Oil market has had a strong rebound with the 2024/2025 harvest compared to the 2023/2024 harvest in all Mediterranean olive oil-producing countries including Portugal, Spain, Greece, Morocco, and Tunisia.
Spain, the market leader for Extra Virgin Olive Oil, accounts for 45% of global production. They are expected to produce approximately 1.4 million tons of olive oil this year, their largest production since the 2021/2022 season.
After rapidly falling during the first quarter, the olive oil market has somewhat stabilized.
Ripe Olives
The harvesting of ripe olives has culminated in the Northern Hemisphere early in the year. Additional raw materials can be found in some countries, but they come at a higher cost.
Ocean Freight Rates
As of March 15th, 2025, ocean freight rates from Asia to the East and West coasts of the US have remained steady or in some cases decreased depending on their route. Carriers may attempt to impose rate increases later this month, especially if blank sailings become more rampant. Houthi attacks in the Red Sea continue to prevent the use of the Suez Canal.
The US may begin to impose fees on Chinese-built ships docking in the US, which would cause ocean freight rate increases, port congestion, and the potential elimination or reduction of service in smaller ports of call. Due to the numerous ever-changing variables in the market, the Global Trade Policy Uncertainty Index has reached a record high.
New tariffs were announced on April 2nd, 2025. Please see our separate company statement for tariff updates.