God Bless America

Long range weather shows West Coast near normal this week with highs in the mid 60′s to mid 70’s with night time temps in the low 50’s. Inland Valley’s are predicted to be near normal.  The desert is experiencing their Summer time Monsoon conditions with below average temps and slightly above normal precipitation.   The rest of the country is averaging near normal temperatures and precipitation.   Truck availability remains good especially after a holiday week. Abundant supply should create favorable rates but fuel prices should keep rates from declining to drastically.  Advance notice will help in getting best value available.

 

LETTUCE- Production continues to be steady with good demand. Local production continues to be limited.  Quality is good in Salinas with occasional mildew and fringe burn.   Weights have been mostly in the mid 40′s.

 

BROCCOLI-  Demand for export and value added  along with slightly lower production in Santa Maria  has created an overall increase in the market ,especially crowns .  The market ended last week very active and should continue to be  active all week .  Supplies should improve next week. Quality continues to be  excellent.  Some of the regionally grown broccoli is reporting poor quality  which also has helped increase demand for California broccoli.

 

CAULIFLOWER- Production has slowed a bit while demand is picking up slightly. The overall market tone is good.  Quality is mostly good with occasional mildew jacket.

 

LEAF ITEMS- Romaine and Romaine Heart markets have settled and appear to be stronger for the balance of the  week although there is  a WIDE range in  quality .  Most suffering from fringe burn, twist and/ or mildew.  Demand on green and red leaf has weakened but will follow Romaine as it gets more active. 


CELERY-
The market continues to be strong.  Fair quality from Michigan continues to put increased demand pressure on Salinas and Santa Maria.  Quality and sizing are nice, good strong stalks with good color.  Production will continue to be on the light side until fall.

 

ASPARAGUS– Supplies from Mexico have increased and demand has stayed steady as the overall market has adjusted. Quality is improving weekly and is comparable to imports from Peru.  Market should stabilize once production levels.

 

GREEN ONION- Market has been active due to a reduction in summer acreage along with damage done from earlier heat.   Market will tighten further with recent rains in Mexico causing delays in harvesting and logistics. Once the weather cooperates look for market to settle.

 

STRAWBERRIES- Production from Watsonville / Salinas area continues with mostly small-medium fruit with full 95% color. Although overall production is down growers continue to have a hard time finding sufficient labor to strip overripe fruit with some getting in the flats which is causing arrival issues with most labels. Demand is very good for top quality but most, if not all, fruit will have issues upon arrival.    Most shippers are hesitant to go east with their fruit.  Cooler night time temperatures will help firm fruit but continue to expect 20-30% bruising related issues on arrival.  Some Santa Maria shippers have started to harvest their new fall crop of berries and Oxnard will start in another month.  Raspberry production from Salinas has leveled and prices are slightly higher for the best quality labels. Limited production of Blackberries continues to be shipped almost exclusively to the West Coast.  Driscoll will continue to be the preferred berry for the next couple months but expect to see a WIDER gap on quotes as demand shifts toward premium labels.

 

Produce West

www.producewest.com

FALL IS NEAR

As we approach the end of August dog days, we start looking towards Labor Day activity. People celebrating the end of summer, kids returning to the classroom, and the start of football season. This means more parties, BBQs and back to school lunches.  It also starts the end of local growing regions and people all over the country will again start looking to the west for their produce needs.  This is the time to lock in those ads and prepare for stronger business.

There have been a few initial recalls in the news lately, but are not having the impact they once had 4 or 5 years ago. Consumers are showing less overall concern and recalls reflect closer monitoring and better quality control. Shippers are doing a good job being proactive when any issues arise.

Long range weather in the Salinas Valley shows a consistent 68-72 degree range; perfect growing temperatures.  Central valley weather will be around 100 degrees, typical for this time of year.

Truck rates continue to settle. There are more trucks available and looking for loads, so we should see the market ease up over the next week, maybe bend a few hundred dollars, but no significant drop because fuel prices have once again spiked over the past 2 weeks.

LETTUCE- Shippers have been hopeful for better markets, but so far things have not responded the way they wanted.  Demand is still off, keeping the market at bay.  They are hoping the romaine shortage will funnel more customers to iceberg, but so far this has not been the case.  Quality is nice, good weights; mild temperatures have produced some nice heads.

BROCCOLI–Quality continues to be excellent.   Market has held steady with production coming out of Salinas and Santa Maria. The market could improve towards the latter end of the week as more demand shifts west.  Don’t hesitate to grab a few extra cases early; things could improve. Still, there is still plenty of local broccoli, especially in the east.

CAULIFLOWER– plentiful supplies currently, shippers are looking to move. The market is reflecting this, and coolers are full.  Run offers by us.  Quality is nice, very few problems to speak of.  Come and get it.

LEAF ITEMS–   Romaine has been tight over the past week.  This has affected the romaine heart supply and market, as well. Supply on green and red leaf is not keeping up with demand and markets are stronger here, too.  Heat waves put many local growing areas out of commission and more pressure is being put on the west.  Quality is generally good, some fringe burn from a windier than normal summer but the biggest issue currently is supply.

CELERY– This market is getting stronger.  Michigan supplies are dwindling, putting more pressure on Salinas and Santa Maria.  Quality and sizing is nice, good strong stalks with good color.  Supplies will be light for at least another month and then Oxnard will start up.

STRAWBERRIES–   Still plenty of quality issues. Most shippers are hesitant to go east with their fruit because they are just not making arrivals.  Driscoll are the only berries that are making consistent arrivals, but they are making us pay dearly for that luxury, charging a premium of $4-$5 more than other shippers.  Their quality isn’t all that much better, its just that it says “DRISCOLL” on the carton. Overall, plenty of bruising on berries, completely normal for this time of year and industry wide. Expect arrivals to be 20-30% worth of defects.

Produce West

www.producewest.com

SUMMER REPRIEVE

With the  weather throughout most of the  country and depressed  markets most of the Summer there hasn’t been much to get excited about.  But with Back to School activity, Holiday ( Labor Day) Promotions , Cooler weather forecast and increasingly active markets it looks like customers  and suppliers  are both getting a  Summer reprieve. All this during The Dog Days of Summer. This  may be the beginning of a  good run for all produce items . Or it could fizzle by the next edition of this  newsletter.  It’s  really up to the store merchandisers and whether they continue to promote ALL fruits and vegetables.

After a  short warming period,  Long range weather shows  West Coast cooling to near normal with highs in the mid 60’s to mid 80’s but continued  above normal temperatures for the inland valley’s and  deserts. The  rest of the country finally gets a reprieve from the Hot , Dry weather with an extended forecast of seasonal precipitation and  below normal temperatures.

Freight rates have adjusted and for now are holding steady for most of the country. Preferred rates are still available for mid week, advanced notice loading. Climbing diesel prices, especially on West Coast may affect rates in the short term but with more equipment available heading into the Fall  rates  should start to ease.

 

LETTUCE- Production continues to be steady  with good demand. Local production continues to be limited.  Quality is ranging from ok to good in Salinas with occasional mildew and fringe burn.   Weights have been mostly in the mid 40′s.  Market appears to be stable with potential upside due to limited local production.

 

BROCCOLI–Market continues to show some upside especially for the next 10 days with most  demand coming from the Midwest and West Coast with continued sporadic contribution from the  East . Production coming out of Salinas and Santa Maria with quality continuing to be excellent . Most volume discounts  will originate from Santa Maria.

 

CAULIFLOWER– A recent surge in production has market adjusting  with a wide range in quotes.  Production  should stabilize by mid week leaving fewer 9’s  available and erratic supplies of 12’s . Some customers are taking  advantage of the deals which will lead to stabilizing the overall market.  Local production should cap any extreme upside.  Quality continues to be good with occasional black spotting reported.

 

LEAF ITEMS–    Production continues to be moderate and demand has been very good. Markets will continue to see surges of demand even with East Coast quality improved but still fair.   Quality issues also in California have limited volume and have kept markets  active.  Romaine Hearts continue to be strong everywhere while carton Romaine is not far behind.  Continued fringe burn and now  internal burn issues are widespread.  You may even see demand for carton Romaine surpass  Hearts due to shippers actively “stripping” down problem leaves  from their carton Romaine.  


BRUSSELS SPROUTS- Production out of Mexico is winding down with some worm damage being reported. While production has increased out of Central California with an array of sizes from  small to  Jumbo’s .  With unsettled quality the market has dropped considerably.  Most shippers  are trying to find the appropriate level to get the  market jump started.  Once quality returns most retailers will jump back in for the nouveau  veg item and the market will stabilize.


CELERY– Production has leveled and the market seems to have settled.  Quality from Michigan  and subsequent demand from the  East will dictate market direction . Currently quality from Michigan is  reported as fair at best but improving.  Quality on California celery continues to be good with few quality issues to report. Similar to Cauliflower look for a narrowing in market prices with possible upside.


STRAWBERRIES–   Slowing Summer production and smaller fruit has limited  production causing an increasingly active market and higher prices .  Quality ranges from fair to good with ALL fruit showing some signs of bruising  and fair quality showing some decay at shipping point.  Even with the best, expect some bruising on arrival.  Demand continues to be  strong and shippers  are limiting shipments to their best customers with fewest problems.    Raspberry amp; Blackberry production also peaked from Salinas/ Santa Maria, with a wide range in quality. Most production being shipped to nearby markets. Quality won’t likely improve until the Fall crop starts around the first week of September.

ASPARAGUS – With minimal production from  Mexico and sporadic shipments from Peru supplies are limited and the  market is substantially higher than the previous week.  Quality has been good although occasional aging issues  due to the  distribution cycle from  East Coast to West Coast BACK to East Coast.  

ARTICHOKES- Lighter Summer supplies have led to a boost in the market on all sizes.  Quality has been excellent. Market should  remain  active for the  duration of the month.

WESTSIDE MELONS-Cantaloupe production has peaked from the Westside  with Honeydews  starting to increase volume. Most shippers having taken on a considerable amount of promotions  between now and the  Labor Day Holiday  which will result in an active market and higher pricing.

BACK TO SCHOOL SNACKS

Back to school time means several things to the produce industry. First, and foremost, changes in eating habits, as more meals are spent at home. Less eating out at restaurants, and more home cooking. Along with that, lunches for kids going to school, means more sales of items such as oranges, apples, grapes, vegetables such as lettuce for sandwiches, carrots, celery, and other items that go in the lunch bags. All getting back to normal and more “routine” living in the homes across the country. Combined with  the  hot weather around the nation look for continued strong demand on quick meal and  snack items.

Long range weather starting to warm on the West Coast with highs in the mid 70’s to high 80’s and continued  above normal temperatures for the inland valley’s,  deserts and the rest of the country.

If solicitations were an indicator of truck rates look for a drop in rates  soon even with diesel prices starting to inch upwards. Rates for now are holding steady for most of the country. Preferred rates are still available for mid week, advanced notice loading.

 

LETTUCE- Production continues to be steady  with good demand. Local production continues to be limited.  Quality is ranging from ok to good in Salinas with occasional mildew and fringe burn.   Weights have been mostly in the mid 40′s.  Market appears to be stable with potential upside due to limited local production.

 

BROCCOLI–Quality continues to be good to excellent.   Market has held steady  with production coming out of Salinas and Santa Maria. The market appears to be steady for the next 7-10 days with slight upside.

 

CAULIFLOWER– Lighter supplies  has firmed up the market but still with a wide range. Local production continues to be  limited but expected to increase going forward which should cap upside. Look for market to ease by the weekend.  Quality continues to be good with occasional black spotting reported.

 

LEAF ITEMS–    Production continues to be moderate and demand has been good. Romaine Hearts continue to be strong everywhere.   Market will continue to see surges of demand even with East Coast quality improved but still fair.   Quality issues also in California have limited volume and have kept markets  active. 

CELERY– Production has leveled and the market seems to have settled. Quality from Michigan  and subsequent demand from the  East will dictate market direction . Currently quality from Michigan is  reported as fair at best but improving.  Quality on California celery continues to be good with few quality issues to report.

 

STRAWBERRIES–   With Summer production past the peak the  market will start to  firm .   Quality ranges from fair to good with most fruit showing some signs of bruising  and fair quality showing occasional decay at shipping point.  Even with the best, expect some bruising on arrival.  Demand continues to be  strong and shippers  will be able to choose which markets  they want to ship.    Raspberry amp; Blackberry production also peaked from Salinas/ Santa Maria, with a wide range in quality. Most production being shipped to nearby markets. Quality won’t likely improve until the Fall crop starts in 2-4 weeks.

ASPARAGUS – With  Mexico production winding down , leaving imports  from Peru as  the  primary  source look for markets to become  more active especially as we near the  end of the  month.  

ARTICHOKES- Lighter Summer supplies have led to a boost in the market on all sizes.  Quality has been excellent. Market should  remain  active for the  duration of the month.

WESTSIDE MELONS-Cantaloupe production continues to peak from the Westside  with Honeydews  starting to increase volume.  Both peaking on the larger sizes and most shippers  eager to promote. 

Trade Deadline

Much like the  baseball trade deadline ,  there’s  a lot of talk and rumors  about local  production not holding up and possible higher markets  but we’ve only seen a few spikes in West Coast  Fruit and  Vegetable demand .  We’re expecting this trend to continue throughout the summer.  Long range weather continues to show little change on the West Coast with continued below normal pattern for the coastal regions and slightly above normal temperatures for the inland valley’s  and deserts.  The rest of the country appears to be near only slightly above normal. Trucks continue to be tight for most areas on the country, especially to the east coast mainly from the lack of backhauls although rates have eased slightly for mid week advanced notice.

 

LETTUCE- Production continues to be steady with good demand. Local production continues to be limited.  Quality is good in Salinas with occasional mildew and fringe burn.   Weights have been mostly in the mid 40′s.  Market appears to be stable with potential upside due to lack of local product.

 

BROCCOLI–Quality continues to be good to excellent few large stalk, hollow stem.   Market has held steady at modest levels with production coming out of Salinas and Santa Maria. The market appears to be steady for the next 7-10 days with slight upside.

 

CAULIFLOWER– Lighter supplies resulting from the continued below normal weather pattern has firmed up the market. Quality continues to be good with occasional black spotting reported. Market could remain fairly active until the weather pattern returns to normal.

 

LEAF ITEMS–    Production continues to be moderate and demand has been good. Romaine Hearts continue to be strong everywhere.  Market will continue to see surges of demand even with East Coast quality improved but still fair.  

CELERY– Production has leveled and the market seems to have settled but like the leaf market, demand from the  East will dictate market movement .  Quality on California celery continues to be good with few quality issues to report.

 

STRAWBERRIES–   Summer production has peaked in the Salinas/Watsonville area.   Quality ranges from fair to good with most fruit showing some signs of bruising  and fair quality showing occasional decay at shipping point.  Even with the best, expect some bruising on arrival.  Demand has been good with heavy promotions but with lesser quality prevalent look for fewer ads and a wider range market depending on quality.   Raspberry amp; Blackberry production also peaked from Salinas/ Santa Maria, with a wide range in quality. Most production being shipped to nearby markets. Quality won’t likely improve until the Fall crop starts in 3-4 weeks.

ASPARAGUS – Limited imports from Mexico amp; Peru have kept supplies  tight and the demand  limited  but strong. 

ARTICHOKES- Lighter Summer supplies have led to a boost in the market on all sizes.  Quality has been excellent.  The next spike in production will come next month.

WESTSIDE MELONS-Cantaloupe production continues to peak from the Westside  with Honeydews just starting to increase volume.  Both peaking on the larger sizes and most shippers  eager to promote.