GULF STATES

Feedback from the Trade on Their Plans and Interest in the USA Pear Season:

Trade have begun inquiring about the USA Pear season and crop size. They attended trade shows in Hong Kong and Madrid to meet with suppliers, including for USA Pears. A couple of importers met with PBNW at those trade shows and have expressed interest in USA Pears this season.

Expectations for Any Freight or Logistics Challenges:

Shipping companies have raised their earnings and market demand forecasts due to Red Sea shipping disruptions, but remain cautious. More time, fuel, and resources are needed to account for the longer routes, and the costs of shipping remain relatively higher than before the blockade began.

Opportunities in Your Market for Specific Varieties, Sizes, and Grades:

The Gulf States retail market continues to register significant growth. Traders are interested in US1 grade and large size product, but have acquiesced to order smaller sizes (80) in order to compete with other sources. Past consumer surveys showed strong preference for USA Red Anjou pears.

Update on the Competition in the Market:

New varieties in the market include the Dutch "Early Desire" and Lebanese pears, which have been absent from the market for a few years. The main competitor remains South Africa. Three SA pear varieties are currently present in the market: Vermont Beauty, Forelle, Rosemary, and Sampier.

Political or Economic Issues Impacting Imports, Retail, or Consumer Behavior:

The war in Gaza and on the Lebanese border continues to experience regular flare-ups, and casts a shroud of uncertainty on regional trade. Shipping route detours around the Cape of Good Hope increased duration by 9%. Overall capacity was still down by 15% by the end of Q2 2024.

Other Brief Comments:

The Gulf States remains a premium market for high quality products. Despite the introduction of new varieties and new sources, USA Pear traders in the region have maintained strong relationships with their suppliers and are still interested in increasing their order volumes of USA Pears when crop size and prices are agreeable.