2016 End of Season Crop Report

December 15th 2016 Comments

As we look ahead to the winter months, many of the root crops Silva produces for our customers have already been harvested and dehydrated at origin ready for further refinement at our Illinois facilities. In this crop report we will briefly look at the market outlook for some of our root crops as well as a few vegetables harvested toward the end of the year.

Carrot

In our crop update this spring, we highlighted the negative impact of prolonged cold weather on the late winter harvest of carrots in China. As the fall harvest is underway, we see a recovery in terms of availability of fresh material, so we consider the outlook positive. We expect stable pricing and availability through the second quarter of 2017. In many of the provinces in China where Silva produces carrot, our partners’ dehydrators are changing the main energy source. With continued strengthening of environmental policies and control, several of our raw material partners are switching from traditional coal fired boilers to systems using natural gas or “ready-to-use” steam. These upgrades do carry additional costs but with the more positive outlook on raw material availability, we do not expect rising prices in the short term.

Europe, notably Poland, is also an important source for carrot raw material for Silva’s overall budget. Last year, Polish raw material facilities were constrained by dry and hot weather during harvest. This affected both the carrot crop itself, as well as the availability and cost of energy for dehydration. Yet with this harvest in Poland, the market showed recovery, so we don’t anticipate any issues with supply.

Silva produces a wide variety of carrot cuts. Please browse our product section on our website or discuss your needs with your sales representative. Our state-of-the-art processing facilities outside of Chicago ensures we have the flexibility to provide you with the cut that you need, produced under full quality controls and food safety steps, and at the time you need it. 

Red Beet

Silva sources, in cooperation with our partner raw material facilities, red beet from a variety of origins in Europe and Asia. In general, crop conditions have been good and output sufficient. We expect a stable market moving forward. Do not hesitate to reach out to your sales representative to discuss your needs. With all our red beets processed, granulated and milled in house at our U.S. facilities, we are able to offer a consistent product most suitable for your specific application.

Sweet Potato and Pumpkin 

These holiday favorites are harvested at a similar time across the northern hemisphere with additional production in spring in the southern hemisphere. Silva offers products from a variety of origins to satisfy your requirements. Our sourcing team has been active in making sure that we take advantage of the most favorable crop conditions in our sourcing network. While crop conditions have varied across our network of growers, we have made sure to take advantage of the most favorable conditions on the ground. This year we have added pumpkin from three new GFSI certified raw-material facilities in China, Hungary, and Poland. Our raw material sourcing team is currently exploring various options for sweet potatoes in the southern hemisphere at the same time as we have secured volume from our traditional sources. We expect pricing and availability to remain stable through Q3 of 2017.

Cabbage                     

A tight fresh market in China is currently driving prices up and limiting availability of cabbage. Silva is currently exploring options to continue to produce cost competitive material with the help of our partner growers and raw material producers. We expect firm prices over the next six months, until material harvested in spring of 2017 becomes available. Do not hesitate to reach out to your Silva representative to make sure we are in the position to consider your upcoming projects and current needs.