Garrett McBride [00:00:09]:
Hey there, and welcome to Get the Scoop with Smirk’s podcast where bulk ingredient conversation happens. We’re sharing our knowledge and expertise as bulk ingredient importers. Tapping into the latest trends we are seeing and commenting on what that means for natural food businesses as they approach ingredient purchasing, product development, and marketing. You’ll hear the latest market reports, ingredient specifications, and product applications from Smirk’s in house experts, as well as origin stories from our growers and around the world. Listen in for the scoop on what’s happening with bulk ingedients.
Zach Schwindt [00:00:49]:
Hello everyone. And welcome to episode 12 of the, Get the Scoop with Smirk’s podcast. I’m Zach Schwint. And with me today is Garrett McBride. We’re gonna be chatting about the exciting world of pet food and animal product, bulk ingredients, and industry trends. It’s fresh on our minds since we exhibited at the end of April at the Pet Food Forum in Kansas City. Smirk’s has been serving the industry for a little while now as a pet food ingredient supplier, but this was our first time exhibiting at the Pet Food Forum. So in this episode, we’ll be calling out the trends we saw and just shining a little more light on the industry in general.
Zach Schwindt [00:01:22]:
In our second segment, we’ll explore the various ingredients that Smirk’s offers and in the 3rd segment, we’ll have Donnie’s market report. So, Garrett, I’m excited to chat with you about all things pet food.
Garrett McBride [00:01:33]:
Cool stuff, Zach. And there are a lot
Garrett McBride [00:01:35]:
of exciting things going on in this pet food space, and it feels like it’s just the tip of the iceberg for us.
Zach Schwindt [00:01:41]:
Yeah. No question, Garrett. I mean, in 2023, the pet food market in the US was valued at $43,900,000,000. Man. And this number is expected to grow to nearly 60,000,000,000 by 2032 according to the I’m ARC group. These numbers are comprised of dry pet food, wet and canned pet food, and pet snacks and treats, primarily for dogs and cats, but for other pets as well. It’s a growing category in the economy, and a segment of this market is trending towards premium pet food and pet treat products. According to Mintel Insights, pet owners are looking for products that provide overall wellness, healthy aging, good digestion, and healthy coats.
Zach Schwindt [00:02:21]:
They are also seeking products which contain simple and recognizable ingredient decks. Interestingly enough, Mintel indicates there’s even more new product development and innovation going on in the pet food industry. I mean, 50% of which is for dogs and cats than in human food. And 1 third of the innovation is coming from upstart pet food companies that have emerged in the last 5 years. It is predicted consumers desire to change their pets’ food to optimize health will continue to prompt more personalization for individuals pets specific needs. Owners are also starting to take interest in DNA tests for their dogs to determine the dog’s unique dietary needs as well. And a subset of the pet owner market is willing to pay for a cost of fresh pet foods, which are sold in either chilled or frozen formats.
Garrett McBride [00:03:08]:
Well, that’s crazy. What a huge and growing market. For those that are unfamiliar, what can you tell us about the pet food forum?
Zach Schwindt [00:03:15]:
Oh, the pet food forum is an awesome show. It’s first time exhibiting and we were very excited to see the different types of not only innovation, but, you know, you have companies who are manufacturing, whether it’s fruit powders or, you know, a digestive enzyme or whatever it is. There’s plenty of vendors that are unique, and it was very cool to see many different types of companies that supply the industry with products and services we’re exhibiting at the show. A large group of pet food CPG brands and producers were also in attendance. We enjoyed the chance to connect with so many interesting people from this fun and growing industry. Turns out there was almost 4,000 people that showed up this year and almost 400 exhibitors from my understanding.
Garrett McBride [00:04:01]:
That’s so crazy. I mean, just a couple years ago, it was like 4 brands of dog food on the shelf, you know, basic kibble. And now we’re, we’re in a whole new world. While you’re at that show, Zach, what are some of the trends that stuck out to you?
Zach Schwindt [00:04:13]:
You know, Garrett, what I found interesting is that many of the trends are closely mirroring what we see in the world of products for humans in our organic and natural food industry. As we know, many consumers are more conscious about choosing healthier foods these days. But what struck me is that this trend is translating to the food that consumers are purchasing for their pets. It’s wild, but in our last podcast episode 11 where we highlighted trends from natural products expo west, many of the same call outs were featured at the Pet Food Forum. These included, you know, an emphasis on sustainability, functional pet food, plant based proteins, and even more organic and regenerator of pet food. And food safety was also an important topic.
Garrett McBride [00:04:53]:
Yeah. Really astounding how, how much the pet food sector mirrors and what we see in the, human food, Such a shift. Considering that so many people treat their pets as full fledged family members, I guess it’s not surprising that they care enough to spend as much or maybe even more on their pets than they do on themselves. Diving into these themes a little bit deeper, let’s start with the topic of sustainability. What’s most important to pet food consumers when it comes to sustainability, Zach?
Zach Schwindt [00:05:20]:
That’s a good question. I mean, let’s take packaging to start off. Most companies are putting an emphasis on recyclable and biodegradable packaging whenever possible. And when it comes to the actual pet food products, consumers are valuing more products with upcycled ingredients. In other words, if there’s a way to utilize an ingredient in a pet food product, which keeps it from becoming a waste or heading to a landfill, it is considered upcycled. And they value sustainability business practice. The pet food is is very prevalent that sustainability was very important. Some examples are pet food facilities that are powered by renewable energy, such as solar power or products produced by limiting water use in the process.
Zach Schwindt [00:06:02]:
There’s several ways that we saw companies marketing their products as sustainable.
Garrett McBride [00:06:07]:
And I love that the upcycled concept is, has really taken hold. That’s such a cool way to be sustainable. What kinds of functional pet food products did you see and and talk about at the show?
Zach Schwindt [00:06:19]:
Yeah. A lot of people were asking us for products that provide better gut health for their pets. You know, as an example, they wanted quinoa, but specifically, they needed quinoa flakes because these are much more digestible for dogs than whole quinoa. And pumpkin powder is another item that’s great for pets digestion as well. And psyllium husk psyllium husk, whether it’s the powder or the fiber popped up as a product that, you know, aids dogs and horses and digestion in the same way it does for humans really.
Garrett McBride [00:06:49]:
Yeah. We heard from, one of our business partners. They use Chia as part of the horse feed in the southeast United States because the horses consume a lot of the dust and the the the gritty substrate where they live. The chia actually bulks their stool and pushes the the dirt and the dust and the grime out of their digestive tract. It’s really really cool stuff.
Zach Schwindt [00:07:09]:
That’s very interesting.
Garrett McBride [00:07:10]:
Yeah. And we all know, you know, there’s nothing like a sick dog to make you realize the importance of gut health. I know this from personal experience as a dog owner. Nobody wants to clean up those messes or be up in the middle of the night taking care of those sick pooches.
Zach Schwindt [00:07:24]:
Yeah. No. No. I definitely do not blame you. And as I noticed, many companies are looking to add plant based proteins into their ingredient decks. It’s not just a human trend. You know, our pets are eating more vegetables, fruits, seeds, and grains as well. As for grains, some brands are highly in gluten free while others are the opposite.
Zach Schwindt [00:07:42]:
There are different viewpoints on gluten in pets’ diets depending on the the specific animal, the pet’s dietary needs, whether it’s prescribed by a veterinarian or, you know, if the pet appears to be allergic to a specific ingredient, some pet food brands carry both gluten free and products with non gluten free grains to satisfy different needs. Plant based proteins of interest at the show include various protein powders, such as pea protein, pumpkin protein powder, rice protein powder, and alternative proteins like brewer’s yeast. Other plant based sources of protein that are popular for pet foods and treats are both chickpea flour, peanut butter, oats, groats, oat flour, pulses like chickpeas, peas, and lentils. Barley was a popular grain as well.
Garrett McBride [00:08:34]:
What kind of, fruit and veggies are our 4 legged friends consuming in their food and treats these days?
Zach Schwindt [00:08:39]:
Yes. Some great dried fruit and vegetable powder options are are available like banana, apple, strawberry, blueberry, you know, citrus fruit powders. On the vegetable side, we see dried peas, potato starch, corn, and sweet potato are definitely large items that we saw being utilized in the pet food industry. So
Garrett McBride [00:09:02]:
Are you also noticing, alternative sweeteners trending in the pet food space as well?
Zach Schwindt [00:09:07]:
Oh, yeah, for sure. I mean, coconut sugar is alternative sweetener known for what’s lower glycemic level than traditional cane sugar, which is what many pet food brands prefer to steer away from. And we can’t forget about the functional oils. A lot of pet food products utilize oils, such as coconut oil, MCT oil, sunflower oil, flaxseed oil, canola oil. All these oils help keep the dogs and cats coats healthy and shiny. You know, honestly, coconut products in general are popular, very, very common for adding in dog food to increase, you know, the shining of the coats and, and whatnot. Desiccated coconut, coconut flour, coconut milk powder, and even coconut aminos are incorporated into pet food and pet treats.
Garrett McBride [00:09:53]:
Man, everybody loves coconut. And you had mentioned previously organic and regenerative. What are you seeing and hearing on that front?
Zach Schwindt [00:10:01]:
Some brands are going all in with organic treats or pet food. This is appealing to consumers who believe strongly in the value of organic products. So while the marketing is still mainly conventional, we’re seeing more requests for organic ingredients. Regenerative is still relatively new, but as we know, more consumers are aware of the regenerative organic certified products for human consumption. What we learned is that regenerative is starting to pop up. For example, some brands are going all in with organic treats or pet food. And, you know, this is appealing to consumers who believe strongly in the value of organic products. So while the marketing is still mainly conventional, we are seeing more requests for organic ingredients.
Zach Schwindt [00:10:42]:
Regenerative is still relatively new, but as we know, more consumers are aware of regenerative organic certified products for human consumption. What we learned is that regenerative is starting to pop up. For example, there’s a brand of pet treats made with mushrooms that are regenerative organic certified. We imagine this trend could continue. As we saw at Expo West, some of the bigger categories of regenerative products include dried fruits and grains such as rice. Another interesting functional ingredient used in pet food is sorghum, interestingly enough. It is said to be relatively easy to digest for dogs and provides fiber to be low glycemic. It’s just an ingredient that can help animals to avoid spikes in their blood sugar.
Zach Schwindt [00:11:25]:
So
Garrett McBride [00:11:26]:
Yeah. This conversation’s starting to sound more and more like we’re talking about human food. This
Zach Schwindt [00:11:32]:
is a Yeah. We noticed a lot of similarities. I mean, one thing that we did that really stuck out to me personally was just like in the world of human food, pet food companies are starting to ask for ready to eat or RTE ingredients. In other words, they wanna make sure the ingredients they procure have gone through a validation process to ensure the risk of microorganism and pathogen is still consistently mitigated. This is particularly important to companies that do not have
Garrett McBride [00:12:02]:
a kill step in their own manufacturing process. Yeah. It doesn’t surprise me. You know, people’s pets are their kids. Their safety is just as important. Mhmm. We’ve worked with a variety of pet food companies that take great pride in their quality and food safety, systems. It’s impressive.
Garrett McBride [00:12:14]:
Human grade standards are becoming more of the norm in the pet food space, which as a dog owner, I feel great about. But that’s the reason the pet food companies are referred to Smirk’s. Our QA team can provide the long list of quality assurance documents and address the food safety and quality concerns like we would with food intended for human consumption. We supply a range of products that are either already sterilized at origin such as chia seeds. And we have partners in the US that will sterilize our ingredients that are are raw, prior to being delivered to our customers. So a lot of options out there that Smirk’s can provide.
Zach Schwindt [00:12:49]:
No, absolutely. And, I mean, honestly, this industry is a blast. I have a ton of fun speaking with pet food industry folks and hearing the new projects people are working on. There’s a ton of innovation and just excited to be a part of the the change and the growth in the industry. But please stay tuned for segment 2, you know, as we dive deeper into the specific ingredients that Smirx offers. In the meantime, don’t hesitate to connect with Smirx by email at what’s new at smirks.com or through our website www.smirks.com. Welcome back to our episode 12 product feature where we’re focusing on ingredients that Smirx offers for animal and pet food and pet treats. These items are typically offered in non GMO conventional and organic formats.
Zach Schwindt [00:13:35]:
Let’s break it down by product category. Garrett, do you wanna start with coconut products?
Garrett McBride [00:13:39]:
Yeah. Let’s start with coconut products. You know, coconut is said to be very healthy, as an ingredient for pet food, especially for dogs. And as we do for human consumption, we offer a wide range of coconut specifications to meet a variety of needs for the pet food space. Desiccated coconut in a variety of cuts, medium, macaroon, chips, great for pet food treats. Coconut smiles, which have a little bit of the pairing still on the, on the chips, are a fantastic stand alone pet treat for dogs. Coconut sugar is a fantastic alternative sweetener, better than cane sugar depending on on who you ask from a glycemic index standpoint. While supply is pretty tight right now, Smirk’s can certainly work with you on, on your future needs.
Garrett McBride [00:14:24]:
We have a supplier that also offers regenerative organic certified coconut sugar out of Indonesia, which is is pretty awesome. That trend is continuing to grow. Another alternative sweetener in pet foods is coconut nectar. We play heavily in that space. Coconut flour is a big one. You know, checks a lot of boxes for people, especially in the pet food space. It is relatively inexpensive. It’s gluten free and it’s it’s healthy for pets to consume.
Garrett McBride [00:14:51]:
It’s better than most of the fillers you’re gonna find in the conventional traditional pet food types of products. Oils are another huge one. You know, as we mentioned, there are a variety of oils that are utilized in, pet food products, which are said to keep dog and cats’ coats shiny and healthy. Coconut oil, virgin coconut oil, MCT oil, the medium chain triglycerides, sunflower oil, flaxseed oil, just a a couple of the items that, the Smirk’s specializes in that we’d be thrilled to help you out with.
Zach Schwindt [00:15:23]:
Yeah. Yeah. Coconut’s a huge one. I mean, when you think about the overall product category, you know, you have everything from oils to the shreds to the sweetener category. I mean, coconut in general is just a a huge category, but seeds is also a huge, huge category. And at Smirk’s, we’re very competitive in, in, you know, a variety of seeds imported from around the globe. So flax seeds is an item that’s found in a lot of different pet food ingredients, both raw and ready to eat flax. You know, there’s golden flax, brown flax, whole seed, milled, plenty of different flax specifications that Smirks deals with.
Zach Schwindt [00:16:05]:
Chia is another one that, you know, we see a lot of horse food customers will will be purchasing this for digestive health. We’ve seen some dog food customers as well, and this is available both in raw and sterilized format, also in in whole seed and and mill versions as well. Sunflower seeds is another big one. Primarily, we see this going into bird food. We have the sunflower kernels, and then we have the in shell sunflower seeds or, you know, black oil sunflower seeds. And these are, you know, both from from a price perspective, you’re getting a lot of nutrition to the pet. You know, in comparison to chi or another ingredient, it’s a great option in terms of the price. Quinoa flakes, We provide both raw and sterilized quinoa flakes, which are easier for dogs to digest than the whole quinoa seed.
Zach Schwindt [00:17:02]:
Another one that we’re, that we’re working with with a lot of pet food companies is psyllium husk fiber. You know, it’s said to be a great source of fiber and aids in dog’s digestion. And then another category I would think is very worth mentioning is plant based proteins. As we discussed in our previous segment, most more pet food brands are, you know, incorporating plant based proteins as a substitute for animal proteins in their ingredient deck. Smirk’s offers a range of protein powders that are widely used in pet products. Pea protein powder. It’s a huge conversation right now with the anti dumping situation in China. So we are actively able to offer the non Chinese origin pea protein powder, and this can come from Canada.
Zach Schwindt [00:17:48]:
And there’s also some options in Asia as well. Sunflower protein powder. It’s a new one for us. We work very well in, in dog food, some horse food as well. Pumpkin protein powder. We see this being a very common ingredient in in dog food. And then rice protein. So we’ve seen some people start to shift away from pea protein, wanting to incorporate some more readily available proteins and rice protein has been, you know, a good substitute for those who are looking to to steer away from pea.
Zach Schwindt [00:18:22]:
For nuts and nut butters, peanut butter has been known to be the source of protein for dogs. And I don’t know about you, but my dog loves a spoonful of peanut butter. So Smirk’s offers a range of peanuts, you know, whether those be splits or, Virginias. We have a wide portfolio of peanut ingredients, both whole peanuts and peanut butter.
Garrett McBride [00:18:45]:
Yeah. I don’t think anybody’s ever gonna replace peanut butter as the most popular, dog treat in our house. They can’t get enough of that. You know, Smirk’s deals pretty heavily in in grains and starches as well. Many, but not all of the grains and starches are gluten free. For those brands that are looking to formulate with that gluten free call out, keeps growing in popularity, and then we’re here to support that. On the other hand, some brands offer lines of products that contain gluten, and some use grains such as barley. We support that as well.
Garrett McBride [00:19:16]:
Sorghum is another one we mentioned before. This ancient grain is gluten free and is known to provide fiber and protein. It has a relatively low glycemic index, and some studies show that it’s relatively easy for dogs to digest. Barley’s another one, as mentioned. It’s non gluten free, but utilized in some pet food products. Tapioca starch gaining popularity, known to be a source of carbohydrates and energy for pets. They can add bulk to kibble. Arrow root powder is another one, gluten free option.
Garrett McBride [00:19:48]:
Cassava flour, gluten free as well. Potato starch used as a binder in wet and dry pet foods and of course rice, you know, a common ingredient in many pet food products. We sell a lot of rice. We’re here to support you on that front. Pulses, lower cost protein, plant based, provides a healthy filler for pet foods, especially for those that, choose not to use animal based proteins. They can market their products as grain free. Chickpeas, peas, lentils, some others. Oats are another big one.
Garrett McBride [00:20:20]:
Known to be a good source of soluble fiber for dogs. They’re offered in gluten free and non gluten free. Also comes in, oat flour and in groats.
Zach Schwindt [00:20:29]:
Yeah. Oats are definitely one that we saw all over at the pet food forum recently. You know? And in general, dried fruits is another one that’s being incorporated into many pet foods and pet treats to add additional, you know, nutrition and fiber. Some dried fruits that Smirk’s typically stocks include dried apples and these common both the diced and ring format. Dried pineapple. So this comes in small tidbits and then ring format. We work with a lot of dried mango. These are in strips and cheek format.
Zach Schwindt [00:21:06]:
We can also do dices by request. Dried cranberries. We’ve just started to bring this into our warehouse. It’s readily available on both coasts. It’s a new item for smirks. We’re working with both sugar infused and apple juice infused cranberries. So here definitely here to support you on the cranberry front and banana chips is another one.
Zach Schwindt [00:21:35]:
You know, we see those going into a lot of bird food applications and whatnot. So smirks can source a range of dried fruits from cherries, blueberries, papaya, banana, anything dried fruit, we’re glad to help you out with.
Garrett McBride [00:21:50]:
Yeah. We’ve got it all. We’re we’re ready to serve you. Smirk’s also works with r and d teams to source and supply new items. We provide samples, pricing information, quality documentation. We work closely with your team to support your new product development projects and and help make your programs as successful as they can possibly be. We can also be there for your ongoing ingredient needs, you know, whether it’s a primary supplier or a secondary supplier to to offer you that critical redundancy in your supply chain. You know, let us be your safety net.
Garrett McBride [00:22:21]:
Our QA team is there to provide your regulatory team the quality documentation that, that they need to make sure that, everything is where it needs to be from a food safety standpoint to support the certifications that, you might have associated with your your product lines. We offer human grade ingredients and a full suite of QA documentation that should meet the requirements for your animal and pet food projects. Let us know what you need and we’ll work together. We’re there for you. So whether you’re new or just breaking into the pet food industry or a well established pet food brand or pet food co man, we hope you’ll reach out to Smirx to request some specifications, samples, and price information. Connect with Smirx through our website www.smirk’s.com or email us at what’s@newsmirks.com. Thanks a ton for tuning in to our product feature. We’ll look forward to hearing from you.
Garrett McBride [00:23:14]:
Next up, stay tuned as we have our market report on deck.
Donny Edson [00:23:21]:
Smirk’s June market report. We will start with ocean freight. Shortages are causing very high rates from Asia. We’re seeing rates in the 7 to $8,000 range from Southeast Asia right now with the expectations that it will go above $10,000 by the end of the summer. Carriers are indicating that rates will likely not decrease until 2025. This is compared to rates of $1500 to $3,000 a few months ago. Why is this happening? There is a shortage of equipment mostly set off by all the lane changes that happened as a result of the attacks through the Suez Canal. This has led to higher demand for equipment as many industries, including our own, are back to purchasing larger volumes than they were a few months ago.
Donny Edson [00:24:03]:
What does this mean? Means that it’s really hard to give contracts further out to hedge what freight costs are gonna be. Even if importers have ocean freight contracts with carriers, there are no guarantees that the carriers will have equipment ready when the product is ready to load. Overall, expect higher freight prices for 2024, and expect shipment delays from most origins. Another hot topic right now are the new organic rules. We continue to see shipment delays on our organic items across the globe as shippers are waiting for certification bodies to inspect the goods to issue the NLP import certificates, which are required on all shipments now to the USA. Processors are reluctant to line up containers for loading until they’ve got the certificate in hand, and this coupled with the ocean freight issues we just mentioned is causing delays anywhere from 3 to 5 weeks on some items. Alright. Onto our market updates.
Donny Edson [00:24:55]:
Since our last report, there’s been a number of serious events that have caused some markets to increase dramatically. However, some markets are stabilizing as well. So we’ll start off with coconut. As we’ve been talking about for a few months now, El Nino has caused some serious issues globally with coconut. Extreme heat and drought in the Philippines has caused prices to increase, and offers from the Philippines are very hard to get. There are only a couple suppliers offering shipment for the end of 2024, while many other suppliers are sold out already on their desiccated items. Although the Philippines are tight, some other origins are offering product for shipment, but the price at origin, coupled with the increased ocean freight cost, is making the landed cost of the coconut almost at COVID levels. Here’s a breakdown of each origin for you.
Donny Edson [00:25:43]:
The Philippines. As mentioned, desiccated supply is tight and virtually gone for the rest of 2024. If you’re not covered from the Philippines, it’s gonna be very hard to get coverage there. Vietnam. This is a great option to get coverage on the books. They do have supply ready to ship pretty fast, and the pricing is comparable to what Q4 pricing was being offered at from the Philippines a few weeks ago. If you’re not covered on coconut, this is a recommended option to consider. Indonesia.
Donny Edson [00:26:12]:
Indonesia is pretty tight as well, and they are way behind on shipments. However, they will soon start offering shipment for their stuff in September sometime in July, but it will be very limited volume. So Indonesia will be a small option for some loads. Sri Lanka. Some of the packers had a small amount left to ship in July, but are mostly booked towards August. In Sri Lanka, it’s hard to get pricing very far out because of the fluctuation of their currency right now. So they mostly will book 6 to 8 weeks before they’re able to ship when they know they can lock in the currency one. So, again, overall, on coconut, the market is up, and we expect it to remain very firm.
Donny Edson [00:26:52]:
If you need coverage, we recommend reaching out immediately to consider looking at Vietnam origin. Coconut sugar. There’s a lot going on with coconut sugar from Indonesia at the moment that is leading to the shortages in the market. We’ll start with El Nino’s extreme heat that stressed the trees and led to less volume early in the year. As we were going into Ramadan, packers were trying to secure raw material. So when they came out of Ramadan, they have some product to process, but they were not able to secure the product. So after Ramadan, there was a run on the market to get anything possible to fill their back orders. In addition to the shortage of the product, the organic NLP import certificates are making it even harder for the supply chain to get product.
Donny Edson [00:27:31]:
Most shippers are booked through September right now, so relief is very, very far off. Overall, prices are increasing in Indonesia, freight is increasing, and supply is not available for new shipments until after September. So coconut sugar is gonna remain very difficult for the foreseen future. The next item we wanna talk about is cashews. The news is pretty concrete now that the crop is shorter than past crops. Biggest news is the Ivory Coast, which is a major shipper of RCN, which is raw cashew nut or the or the in shell cashews, imposed an export ban on RCN in May. They are one of the top shipping countries of this product in India and Vietnam. This has choked the supply chain of nuts to process, and we’ve seen pricing of 3 20 count cashews increase almost a dollar per pound in the last 4 weeks.
Donny Edson [00:28:19]:
Buyers are not fully covered, and many packers are now off the market until they can secure some raw cashew nuts to process. In addition to this, there are quality concerns of what the RCN will be when it is released and shipped from the Ivory Coast. All this coupled with importers keeping lower stocks, freight increases, and freight delays means cashews will remain tight, and we do not know when the prices will drop. There are some rumors of defaults already from some shippers as the market’s gone up so high and so fast. This is not
Zach Schwindt [00:28:48]:
only with conventional cashews. Organic cashews are very, very
Donny Edson [00:28:48]:
hard to find as well. If you’re not cashews, you should work to find some coverage immediately. Macadamia nuts. The market on macadamia nuts continues to firm up and remain tight as China continues to import in shell and large kernels to feed their strong demand. Kenya is basically out of product to offer until their smaller crop starts in November. South Africa is offering some product but prices are very high. Spot inventories in the US are very hard to come by. We do not see any scenarios where the price of macadamia drops until at least 2025 when new crop starts then.
Donny Edson [00:29:24]:
Chia. The new crop of chia is upon us in South America, and all indications are pointing to a large good crop. There’ve been no reports of significant frost damages, and we’re almost home free on frost anyways. Prices are very attractive for contracts for the new crop, which will start shipping in late July early August. Please reach out to see what we can put together for you on the chia. One more item I wanna talk about that has been softening is pumpkin seeds. Reports from China are there is a large planting of pumpkin this year. This has led to declining prices at origin for pumpkin as stockholders look to offload product before the big new crop arrives.
Donny Edson [00:29:59]:
However, demand is still quiet in China and around the world for pumpkin, so prices continue to weaken. The only issue is that as the prices decrease, ocean freight continues to increase, meaning the savings we’re seeing on the product at origin are not really seen yet because of the dramatic increases in ocean freight. Nonetheless, it’s recommended to stay covered through November, then we’ll be able to see what new crop’s coming in, and you’ll be able to take advantages of the good prices coming from the new crop. Aside from these commodities, we’re not seeing too much movement in the markets that we have not spoken about in the past reports. These are the major items we’re keeping an eye on, particularly ocean freight, coconut, and cashews. So that wraps up our get the scoop with Smirks market report for the month of June.
Garrett McBride [00:30:42]:
So that’s it for this episode of Get the Scoop with Smirk’s podcast, where we bring you the latest market reports, insights into bulk ingredients and their origins, as well as in-depth product information. So if you have any questions, feedback, or just want a sample to taste for yourself, visit the smirks.com website or email us at what’s new at smirks.com. Never miss a future episode. Be sure to hit the subscribe button wherever you listen to your podcast. Thanks so much for tuning in.