The Akoya Slide Ends

The first auction results from Japan report good news for akoya producers. Hama-age prices are finally on the rise. Whilst these results are a bit early to predict the trend in prices through the Winter and later auctions, it seems a clear indication that the price slide has come to an end.

First rank production is reportedly up nearly 10%, followed by second rank up nearly 30%, and commercial third rank up an astonishing 50%.

The results are certain to be well-received by the dwindling number of akoya producers now accustomed to operating at a loss.

Pearl Producers Suffer

The global economic crisis has left few untouched. Producers around the globe have covered their grafting tables, pulled their shell and switched off the lights. As wholesale demand decreased, the unstoppable pipeline glut grew, pushing pearl prices to unsustainable levels. Whilst many believe the worst is now behind, producers struggling to hold their footing will be among the last to see the recovery.

In West Nusa Tenggara, Indonesia, 33 of 36 cultivators have stopped or nearly stopped producing. Production has dropped to 200 kilograms from an annual average of 1.2 tons. This has followed a drop in price from Rp 135,000 to Rp 1.5 million per gram, to a paltry Rp 35,000 to Rp 300,000 per gram. These prices fall far short of sustainability as prices are well below production cost.

The future promises to be difficult for the remaining producers, and those that close may or may not ever return. Without market correction, they won’t have a reason.