Water Chestnut Raw Material Shortage & Increased Demand
Last season’s raw material planting area for Ambrosia® Water Chestnuts was reduced by 1/3 compared to the previous season. Due to excess rain during harvest season, a number of our water chestnuts grew oversized, making them unsuitable for can production. In addition to the shortage, the demand for fresh water chestnuts in China has reportedly grown since the previous year, leaving very little raw material for canning.
As a result of the increases in demand with the recovery from the pandemic and the raw material shortage, prices remain at astronomical levels throughout the season and there is no inventory available, according to various sources. While it is still early to say, it is anticipated that new water chestnut raw material will be available for canning around late November/early December, with some relief in prices but still nowhere near as low as previous years. We anticipate availability in the United States toward the end of Q1.