Devastating Rainstorm

When one talks about the “worst case scenario” they usually do not expect it to actually happen, and when it does, chances are very slim.  The worst case scenario has happened here in California.  Clouds have accumulated and unleashed their wrath on the Salinas Valley and surrounding regions.  Rain and winds that began Tuesday morning have already wreaked havoc on roads, power lines, causing huge damage and power outages throughout the county.  The worst part about this early rain is the damage it is doing to our produce industry.  Millions of dollars are being lost every hour of the day because we simply cannot harvest the fields.   Whatever small amount of product that is in the fields cannot be taken out.  Our entire Tuesday picking is ruined, along with the majority of Wednesday’s harvest.   Loads upon load are being canceled, but what can we do? The answer is to just sit and wait out the storm.  Never before can we remember a time where we got so much rain in in so little time in October.  Normally we get beautiful weather this time of year, rains just don’t come until mid November.   With all that said, we ask that the entire industry be patient, and understand that there was nothing we could have done to avoid this.  The market was already way too expensive coming into this storm and business was slow, the rain is the finishing touch.  Long range weather shows rain all day Tuesday and  Wednesday.  Warmer partly cloudy days are expected starting Thursday and through the rest of the week into next. Trucks are as plentiful as drops of rain in the fields.  Calls are coming from all over the industry, from truck lines, brokers, consolidators, etc. looking for loads.  Trucks are just sitting and waiting.  Even though there may be plenty of trucks currently, you better believe that once business picks up and thanksgiving rolls around the tables will turn and we will be begging them for trucks.

LETTUCE– Shippers are not harvesting Tuesday and most will not harvest Wednesday.  As for now we are waiting out this storm.  Whatever else can be harvested and loaded this week is a gift.  Quality is going to be fair to poor from here out, and expect some mud in the packaging.   The Market is still up around mid $20 range FOB, and some shippers are even quoting acceptance final on product getting out this week, they simply do not want to hear about any problems.  Huron lettuce will begin next week and should gain momentum from there.  Product seems to be ok, but there are some questionable signs of quality issues such as red ribs and internal decay, but so far tests have been minimal.

BROCCOLI– Supplies still available in the East coast, but as that deal wraps up, there will be more pressure on west coast product.  The rain will not affect quality on broccoli the same as it normally does with iceberg and leaf, but with harvesting put on hold, there is plenty of broccoli out in the muddy field and none in the cooler. Most shippers have been quoting sold out for the past 2 weeks and are only covering contracts.  We are hoping for better numbers by the end of the week, assuming we can get into the fields by Thursday.

CAULIFLOWER– Although rain does not ruin cauliflower, temperatures can really affect it. Warm weather can bring supplies on, while cool weather can basically stop growth and production.  Supplies should pick up soon, but for now product will sit in the muddy fields.  On the contrary, too much moisture can cause molding, but we are hoping this storm does not last more than a couple days.  Numbers are practically at zero now, but will hopefully pick up by this weekend.

LEAF ITEMS– Rain will certainly affect the leaf, red ribs, decay, and mud all will play a factor in the next few weeks arrivals.  Keep in mind however, these problems will be industry wide.  Most shippers are sold out of all leaf.  A few shippers will be moving their leaf production to Huron in 2 weeks,  early reports show quality is going to be ok but it is too early to tell how the overall condition is going to end up.

CELERY–  After a few weeks of what seemed like an endless supply, celery supplies are dropping off.  With the Canadian and Michigan deals winding down, and Thanksgiving business around the corner things are tightening up and markets are getting active.  There are fewer smaller sizes now, mostly attributed to higher demands for celery hearts.  Rain should not affect celery quality and overall condition, but once again, harvesting has been a challenge.

STRAWBERRIES–The rain has caused a DISASTER in the strawberry region.  With much of the storm centralized in the northern Salinas Valley and Watsonville area, they are expecting 2-4 inches in some of the fields.  What does 2-4 inches of water in a strawberry field mean to us?  It means entire orders are cut, not just pro rates, but completely cut and thrown away.   We will need to see what happens toward the end of this week, but for now, things do not look good.   Even if there is some product available, quality will be poor, so it may be just as well.

Cooler Weather, Stronger Markets

Now that we are getting towards the middle of October, with nighttime temperatures dipping close to freezing, and with shorter days, supplies of vegetables in the Salinas and Santa Maria areas are starting to tighten up. With that, shippers are looking to push prices upward. And make no mistake, they will NOT be bashful! They will push prices as high and as fast as they can. Items such as lettuce, broccoli, cauliflower, celery, various leaf items, strawberries, and other mix items are all effected.
Long range weather in the Salinas and Santa Maria areas show cool nights and days in the 60s and 70s, typical for this time of year. But, again, cooler weather definitely slows product growth, and eventually tighten markets. No rain forecasted for the next 7 days, but a chance after that.
Trucks are still plentiful, and should be so for the next 3 weeks, or so, then after that, Thanksgiving business will start to kick in. If you can believe it.

LETTUCE– cooler temperatures are allowing shippers to push prices up, and they ARE. We could see them push up prices all this week. It’s hard to say how high prices will go, as demand is only so-so. Still, the shippers don’t care,and will go for everything they can. Quality is decent, as we wind down another Salinas deal, but we are recommending not to hold the lettuce too long, as it just doesn’t have the “legs” that we see in the Spring and Summer. Huron looks to start around the 19th.

BROCCOLI–even with supplies still available in the East coast, shippers are raising prices out West daily. In fact, prices have more than doubled in the past week. Crowns, in particular, are scarce, with prices $3-4.00/box more than bunch.

CAULIFLOWER– temperatures can REALLY effect cauliflower. Warm weather can bring supplies on, while cool weather can basically stop growth and production. That is where we  currently are. Prices, like broccoli, have more than doubled in the past week, and shippers are looking for more. But, again, demand is only fair, so it is only a matter of time before the shippers kill the market.

LEAF ITEMS–with head lettuce getting stronger, it is only a matter of time before prices start to go up on red, green, boston, and romaine. Right now, prices are fairly reasonable, but we expect them to start going up very soon. Supplies will be coming out of the Salinas area until after Thanksgiving.

CELERY–even celery prices are starting to make a move. After the past few months of rock bottom prices, things are starting to make a move upward, especially with the “preferred” labels. Labels such as Dole and T&A are pricing their celery $3-4.00/box higher than the general market. This bump in demand and prices are attributed to the Canadian and Michigan deals winding down, and Thanksgiving business around the corner.

STRAWBERRIES–cooler nights and shorter days are doing one thing for strawberries. It is helping to firm the fruit and improve overall quality. The downside to this is that supplies drop off. Fortunately, demand is barely fair, so prices are basically holding. That is, of course, except for Driscoll, who continue to be $3-4.00/box more than the rest, AND pro rating orders.

October is here

You have to do a double take at a calendar to actually believe it is October! In the stores, you are already seeing Halloween items, and before you know it, there will be Thanksgiving items, and, yes, Christmas.
Sales continue slow for most vegetable and fruit items, and will continue that way until the East coast starts getting cold, and the local deals wrap up. That could be another 2-3 weeks. It is starting to get cold and wet in the growing areas of Maine and Canada, so it could be soon. As far as harvesting in Salinas, we will continue loading here through the end of October, then start drifting to Huron for lettuce, Oxnard for celery, and gradually work our way to the desert for the Winter.
Trucks are readily available for all areas of the country, particularly in the East.
Long range weather in the growing areas of Salinas show cooler, more seasonable Fall temperatures, as does the growing area around Fresno, where the tree fruit, melons, and grapes are coming from. No rain.

LETTUCE–market still flat for head lettuce. Supplies continue plentiful in Salinas and Santa Maria areas, and should for the next 3 weeks, or so, then we will move to Huron for the Fall deal.

BROCCOLI–better demand and stronger market for all bunch, and even stronger for crowns. This could be a combination of lighter supplies out West, as the Eastern deal winding down. Maine and New York expect to keep going for another 2 weeks, or so. When demand DOES pick up, hopefully the volume will too.

CAULIFLOWER–market starting to make a move. With cooler weather this week, supplies will probably tighten up, and the shippers will continue to raise their prices. But, as they usually do, they will push their prices too high, and kill the market. We recommend you order heavy early this week, with the expected bump in the market.

LEAF ITEMS–overall flat market for red, green, and romaine. We are seeing a fairly wide range in all leaf items, at least the “board” prices. In other words, shippers are selling lower than what they are “quoting”. It is worth it to shop around.

CELERY–not much change. We are still seeing a fairly wide range in price on all size celery, depending mostly upon the shipper, with as much as a $5.00/box SPREAD in price. There certainly are deals out there, so, again, shop around.

STRAWBERRIES–no change here. Driscoll leads the way, and continue to pro rate 50-75%, and charge $3-5.00/box MORE than the mostly market, while other shippers, even though they have good business, can’t seem to get their fruit to deliver to the East coast. We will continue to ship out of Salinas/Watsonville areas for the next 3 weeks, then gradually move to Oxnard. This is ALL depending upon the weather.

Fall is Here

Today is the first day of Fall, and with it come hopes of better business than what is out there now! Overall vegetable business is slow, with just too much local product hitting the markets. Items such as lettuce, broccoli, celery, jacket cauliflower, and leaf items are not allowing much action coming from the West coast. But, hope springs eternal, and as Fall REALLY kicks in, with colder days and nights, the local deals and backyard gardens will start to dry up, and business should pick up. But, that may not be for another 2-3 weeks.
Long range weather in the California growing areas show continued mild days and cool nights in the Salinas area, while the fruit areas around Fresno show steady days in the high 90s and mild nights. No rain in either area, normal for this time of year. In fact, our rain season doesn’t really kick in until mid November.
Trucks are plentiful, and rates negotiable. Oil prices are climbing slightly, which is holding diesel prices firm.

LETTUCE–supplies not overly heavy in Salinas and Santa Maria areas, but demand is only fair, at BEST. Prices are down today, and we don’t see much action this week. This will allow some deals to be made, so be aware of that. Quality is holding, but there are some problems out there, so if you stay with the better labels and the shippers that are staying on top of their fields, arrival problems are very minimal.

BROCCOLI–with supplies continuing to come out of the East coast, demand for broccoli out West continues slow. Still, the markets for bunch and crowns is fairly strong, only because shippers don’t plant heavy this time of year, knowing what is available in the East. Basically, the shippers are creating decent demand by planting light.

CAULIFLOWER–supplies are down this week, and we see shippers starting to push their prices upward. Not big jumps, as of yet, because demand is only fair, what with local jacket flower still available in the East. Still, look for this market to slowly climb this week.

LEAF ITEMS–slow demand for red, green, boston, and romaine, and prices are “negotiable”.

CELERY–not much change. Basically, good supplies and reasonable prices on just about all sizes.  We don’t see much change in the celery market until Canada and Michigan finish up, which may not be for another month. Sleeve is +$1.50/box.

STRAWBERRIES–this continues to be a real “head scratcher”. While most shippers are looking for business, and trying to avoid sending their fruit to the East coast because of quality issues, Driscoll continues to pro rate their supplies 50-75%! Even so, Driscoll’s quality isn’t anything to write home about, but their NAME keeps folks coming back. We don’t expect quality to improve until we head south to Oxnard for the late Fall deal, so, until then, order just what you need and move QUICKLY.

Where’s the Biz??

Most of us remember that old Wendy’s commercial, “Where’s the beef?”. Well, we can say “where’s the biz”, when it comes to the produce business! Not much demand for just about ANY fruit or vegetable item has everyone scratching their heads and looking under every rock for sales. As a rule, this time of year, with school back in session, local produce deals still pumping out product, and backyard gardens continuing to produce, it is a typical September. We need cold weather to hit the East coast to dry up their supplies, although don’t tell the local farmers that! “That” time year is around the corner, and we should see business pick up in the next few weeks.
Trucks were a bit short last week due to the Labor Day holiday getting them off track, but things are now back in order, and there are plenty around. Rates continue to slip.
Long range weather in the growing areas on Salinas show warm, mild days and nights, which is normal for this time of year. East coast weather for growing conditions show cooler temperatures, but not cold enough to end their growing season.

LETTUCE–still plenty of product and prices are “flexible”. Huron won’t start their Fall deal for another month or so, and we will continue to have supplies in Salinas well into November. Quality, for the most part is pretty decent, although there are some arrivals that show some complaints. It is important to stay with shippers that are on “top” of their fields, and don’t get behind, because as we start to wind down Salinas, the quality starts to get “iffy”, and you want to buy as fresh as you can.

BROCCOLI–lots of competition from East coast suppliers that are covering that area of the country. Supplies in Salinas/Santa Maria aren’t overly heavy, and growers here plan for that because of the flood of East coast supplies. With their lighter supplies out West, they are able to keep the market fairly strong. Still, there are plenty of bunch 14s, 18s, and crowns available.

CAULIFLOWER–the roller coaster ride is still going, and last week there were a FLOOD of supplies. Today, things are about the same, but we expect the market to get stronger as this week goes. Not because of demand, but supplies will start to dry up.

LEAF ITEMS–romaine is starting to drift downward, while green and red leaf are steady. Last week, we saw as much as a $5.00/box spread in price for romaine. We are now seeing prices from their higher priced shippers drift downward, giving us less of a “spread” in price. More “flex” with those folks.

CELERY–still a very wide range in price with just about all sizes of celery, especially the smaller sizes. We are seeing as much as a $6.00/box SPREAD in price, depending upon the size, between the “mostly market” shippers, and the “preferred” labels, such as Dole. Overall, the market is steady from the past 3 weeks, and we don’t see much change for another 3 weeks.

STRAWBERRIES–about the only change here is that Driscoll expects to pick up more volume, from where they have been the past month, or so. Still, they will be $3.00-4.00/box higher than the mostly market, because they CAN. Quality-wise, Driscoll is still the best, and few shippers even want to attempt to send their labels to the East coast, for fear of bad arrivals. However, even Driscoll’s arrivals are starting to get more “off and on” now. This is that time of year.

September Storms

With hurricane season under way, the East coast is forecasted for rain showers and storms and unsettled weather for the next 10 days. This will NOT help the produce business at the store level, especially with items such as strawberries, tree fruit, grapes, melons, and various vegetable items. With kids back in school, we will also see more traditional eating practices, and less eating out. There should be plenty of product out West, and deals on selected vegetable and fruit items.
As mentioned, the next 10 day weather forecast for the East coast show rain off and on. The growing regions out West show warmer days ahead, fairly typical for this time of year. No rain.
Trucks are fairly tight this week, mainly due to yesterday being a holiday, and now we will be squeezing 6 loading days in to 5. Rates should hold steady.

LETTUCE–steady market anticipated this week. Demand is only so-so, but supplies are fairly light, by design, so we don’t look for much of a change this week. Also, as mentioned earlier, we are loading this week with one less day. Supplies are still coming out of Salinas and Santa Maria areas.

BROCCOLI– good supplies of bunch 14s, 18s, and crowns this week, and there should be deals around. Quality is holding up nicely, and supplies are in Salinas and Santa Maria areas.

CAULIFLOWER–there are some really good deals out here right now on 12s, 9s, or 16s. This is an item that, when available, you need to grab NOW, and push hard, because by this time next week, supplies will be lighter, and we could see prices double what they are presently. Quality is good to VERY good.

LEAF ITEMS–no change. Romaine is still very active and high priced, green leaf is also showing good action, but with a wide range in price, and red leaf is about the lowest priced leaf item available.

CELERY–shippers looking for business on all sizes, except for Dole. They are nearly DOUBLE in price on their smaller size celery, because they are light in supply. But, they don’t care, because they have a good following with their celery, and feel they are worth the higher prices. That may or may not be true, but don’t tell THEM that.

STRAWBERRIES–shippers still looking for business, except for Driscoll, and they are still pro rating supplies, although not as much as they have been the past 2 weeks. They anticipate better supplies starting next week, and they should come off in price. For now, though, they are more than double the mostly market. Quality is still suspect, with most shippers not wanting to go East with their fruit. Driscoll is about the only label making arrival, and even their fruit is only fair, at best. It’s just that time of year.

Labor Day is Coming

Labor day will soon be upon us and people will be heading outside to enjoy the last holiday of the summer.  The northeast has seen some excellent weather this year, and labor day will be no exception.  This week is expected to be slow for west coast fruits and vegetables because the general labor day pull is over, and product is already on the road or in stores. Temperatures remain mild and warm across the board for the northeast.  Salinas weather still remains in the high 60s to low 70s, and is not expected to change for at least another 10 days.  Markets are down on just about everything, with the exception of only a few items.  Trucks remain plentiful, and rates continue to decline ever so slightly as a result.

LETTUCE — Not much change from last week.  Plenty of product in the fields and coolers.Quality has been good, structure has been firm, weights have been heavy.  Shipper are looking to move and taking offers.

BROCCOLI — East coast states continue to produce and is having an effect on west coast business. Some “delivered” prices for broccoli to the East is about the same as some West coast FOB prices! That makes it tough to sell.  This week is expected to be slow, and shippers are bringing prices down.  Be on the lookout for special deals and ad opportunities.

CAULIFLOWER — Plenty of product around, and good supplies throughout the industry.  There is a $4 spread between some labels, but favorable weather conditions have kept quality standards high, with comparable product throughout the industry.

LEAF ITEMS — Romaine and green leaf are tight.  East coast product is still growing, however, quality has been marginal at best.  Many east coast buyers are looking out west for better quality leaf, which, in part will lower supply and raise the market.  Romaine and green leaf have seemed to be hit the hardest, and should see a stronger market as we head into the next few days.

CELERY — Good prices on all sizes, plenty of product that has yet to harvested.  We expect the market to stay generally flat through this week and next. Shippers are taking offers and looking to move.

STRAWBERRIES  — VERY tight. Currently, the only shipper confident enough to deliver to the east coast on a daily basis is Driscoll, and they cannot keep up with the demand.  Prorates are getting worse, as orders are now being cut back 70 – 80%.  That means if you have a load booked (2808 cases) , you will only receive approximately 500 cases if you are lucky.  It is a frustrating predicament, but things are expected to continue like this for at least another week.  Hopefully, as September begins, coastal weather will warm, and production can get back to a more manageable level.

Plenty of Product

The dog days of August continue.  Shippers are looking to move whatever they can in this slow market, and prices are becoming competitive.   Kids are heading back to school this week and families once again fall into their normal every day routines of school lunches, dinners at home and evening cookouts.  Slightly cooler weather in the Salinas area, but overall good growing conditions for this time of year. Vegetable quality is good, very few problems to speak of.   Still plenty of trucks available, rates continue to decline despite rising fuel costs.

LETTUCE — Quality has been good, structure has been firm.  Cooler sunny days have improved overall condition.  Better weights this week.  More jumbo sizes available and shipper are looking to move.  24 count lettuce is weighing in at 44-45 lbs, normal for this time of year.

BROCCOLI — Good supplies, good deals industry wide, very few quality issues to speak of.   Shippers are looking to move product and taking offers.

CAULIFLOWER — Report card is similar to broccoli, plenty of product and good deals industry wide.  As favorable temperatures continue, expect to see more quality product to come.  Larger sizes are more prevalent, expect better deals on 9s, and some shippers are selling out of 12s.  We don’t expect this market to explode any time soon, there is plenty of product still to come.

LEAF — Romaine is tight, but supplies should recover by later this week.  Weather has been good, and there have been few quality problems to speak of.  Red and Green supplies are ok, quality is good.

CELERY — Good supplies, cheap prices, and shippers are looking to move.  There have been very few of the seeder issues normally seen this time year, mostly due to the cool weather.  Stalks are growing slowly and growers are able to keep the seed stem under control.  Excellent deals on load volume.  Come and get em.

STRAWBERRIES — Driscoll berries are very tight this week with 65% pro rates.  Supplies will continue to be light for 2 weeks.  The biggest contributing factor is the cold foggy weather in the Watsonville area.  The days are not warming up like they should be this time of year.  The outlook  will be much better as September weather warms and the fall crop begins to color up.  Prices are holding steady at over $14 for Driscolls, while other labels are significantly cheaper.

Back to School!…Already??

Yes, it is THAT time of year again! It seems like we just got finished with Memorial Day! Whoever said life is a BLINK of an eye was certainly correct.  Enjoy EVERY DAY to the fullest!
As Summer closes, buying produce  patterns change, as well. Families go from eating out while on vacation, to more of a schedule of eating at home, packing lunches, and after school snacks. This is where we start selling more traditional items for the Fall such as apples, oranges,potatoes, lettuce, broccoli, cauliflower, celery, and grapes. Its a good pattern to be in.
Plenty of trucks, and rates continue to slip every so slowly.
Long range weather continue to show seasonal norms, with mild temperatures in the growing areas of Salinas and Santa Maria, hot weather in the grape, melon, and tree fruit country around Fresno. No rain.

LETTUCE–no change here. The market is at a point where the shippers make money, and at the same time, retail prices can be at levels where the product moves well at the store levels. We should see this market hold steady this week.

BROCCOLI–not much change. Maine broccoli is having a effect on East coast business, to be sure. Some “delivered” prices for broccoli to the East is about the same as some West coast FOB prices! That makes it tough to sell.

CAULIFLOWER–while supplies at shipping point aren’t very heavy, business is slow. Retails have been set high, and demand has dropped. We should see business pick up and prices start to climb a bit by this time next week.

LEAF ITEMS–little change here. Romaine is still fairly active, although we are seeing a pretty good spread in price, with as much as a $5.00/box difference, depending upon the label and shipper. Green and red leaf are steady.

CELERY–no change. Market is flat, and there are some great deals out there on just about all sizes. Heart 12s and 18s are readily available.

STRAWBERRIES–most shippers are looking for business, while Driscoll is PRO RATING! Why? Mostly because the majority of berries can’t make the trip across the country to the East coast. It’s that time of year. Driscoll, while not necessarily “prime” stuff, is better than anyone else’s. And they KNOW it. As a result, they are priced $3-5.00/box higher than most, and are cutting back orders.

Not Much Happening

In typical August style, demand is sluggish and markets are just hanging in there for the majority of vegetable items out West. Lettuce, broccoli, cauliflower, celery, leaf, romaine, are all steady as she goes for this week, and most likely for the next several weeks. Lots of home grown items and backyard gardens are going full speed right now, and that has a huge impact on buying western vegetables and fruits.
Long range weather forecasts show steady, mild temperatures in Salinas/Watsonville areas and hot in the fruit country.
Still plenty of trucks around, and rates continue to drift downward. Diesel prices appear to have peaked out for the rest of the Summer.

LETTUCE–a fairly wide range in price, depending upon the shipper, with the preferred labels trying for a bit more. Still, there isn’t much business out there, and there can be some deals around this week.

BROCCOLI–not much change here. Bunch 14s and 18s are fairly steady, while the crowns are a bit more scarce, and show more of a range in price. Overall, good prices and quality are available in either Salinas or Santa Maria areas.

CAULIFLOWER–as expected, this market has come down. After the past few weeks of high prices, the high retails and lower priced local and Canadian cauliflower have taken their toll on demand for California product. There are especially some good deals on 9 size, which is an indication that the flower demand has slowed, and the product sits and grows in the field.

LEAF ITEMS–wide range in price for romaine and green leaf. Some shippers say they are light on red and green, heavy on romaine, while others say they are light on romaine and heavy on green and boston. In other words, if you can “shop” your leaf needs, there are some good deals out there.

CELERY–no change. Plenty of celery with good deals on ALL sizes. Celery available in Salinas or Santa Maria areas. Heart 12s and 18s available.

STRAWBERRIES–wide range in price here, with Driscoll leading the way. In fact, there is as much as a $5-6.00/box SPREAD between Driscoll and some other labels. Driscoll knows this is THEIR time of the year, and they price their berries the way they want. They also indicate they will have fairly light supplies for the next 3 weeks, or so, which means they will probably have strong prices during that time, as well. Raspberries and blackberries are also available, although quality is more of a “hit or miss” proposition on those items. Typical for this time of year.