Memorial Day usually kicks off not just the Summer fruit, but also kicks off the race for the truck rates. Already, we are hearing rates upwards of $9000 for East coast mixers, and some as high as $10,000 to the far east coast. This is an increase of $3000-4000 from just a month ago. Put that with increased fob prices for lettuce, broccoli, cauliflower, and other items, and it’s easy to see why delivered prices have skyrocketed. On the other hand, this is nothing new, as this happens every year. We just don’t know from year to year how HIGH rates will go.

Long range weather shows some rain showers today in central and northern California, which could be especially damaging to the cherry crop, which is nearing its summer peak.

Trucks continue VERY tight for most areas on the country, especially to the east coast. As mentioned, rates continue to climb, and could get up another $1000 in a few weeks.

 

LETTUCE–shippers really pushed this market up the past few weeks, and with the higher freight rates, it is now $25-30 delivered at the eastern markets. We feel the market has now peaked out, due to the higher retail prices, as now some consumers find it is cheaper to buy bag salad, instead of a head of lettuce. Still, even if the market comes down $5.00, delivered prices will still be up there.

 

BROCCOLI–lighter supplies here, too, and stronger market. Crowns have gone up $5-6.00 over where they were 2 weeks ago, so with the increasing freight, we could see crowns closing in on $20.00+ on the east coast.

 

CAULIFLOWER–cooler weather in Salinas early this week will keep supplies lighter than we have seen. Shippers have already raised their markets last week, so retails will change. We could see the market come off by the end of this week.

 

LEAF ITEMS–no change here. Plenty of supplies of romaine, red, and green and the fob prices are still lower than normal. High freight rates will keep things down, especially with local product throughout the eastern seaboard.

 

CELERY–markets still hanging in tough, in spite of the increasing freight rates. Keep in mind that a box of celery to the east coast can run as high as $12.00/box this time of year! That easily pushes delivered prices for celery to $25/box.

 

STRAWBERRIES–there is plenty of fruit, and most shippers looking for business. Except for Driscoll. Surprise, surprise. With cooler temperatures and a threat of rain today in Salinas and Watsonville, things could turn around and ALL shippers may tighten up. We’ll have to see how much, if any, rain we get, and then we will know more.

 

Ed Brem

ed@producewest.com

Climbing freight rates are the big news this week. Rates last weekend, which is normally a tough time to find trucks due to the Memorial Day holiday, reached $9000 for loads to far east destinations, such as Boston, and New York. This week, due to the short work week, continue the same pattern. There is big demand for trucks to haul melons, grapes, stone fruit items, as well as the normal demand for veg and berries. There should be more trucks showing up this weekend, as they try to get back into their normal delivery pattern, but rates will probably remain strong. Keep in mind that these high freight rates affect ALL delivered prices.

Long range weather show continued mild temps in Salinas and Santa Maria areas, with early morning overcast, clear and breezy during the day. Fresno growing areas hitting the high 90s with a few 100’s and the desert melon regions are easily hitting 100 degrees during the day. All are normal for this time of year.

Trucks, as mentioned, are reaching for the sky with their rates, and easily getting it. There should be a few more trucks this weekend, then more of a normal pattern starting next week. Another 2 weeks, and we’ll be dealing with 4th of July business, which should show another spike in rates.

 

LETTUCE–lighter supplies of lettuce this week are allowing shippers to push up their markets $2-3.00/box over where they were last week. With the short work week, we see demand holding firm. As far as raising prices higher than they are currently, we aren’t sure because of the high freight rates pushing delivered prices upwards of $25.00 to the east coast. That may freeze demand. Quality is holding up nicely.

 

BROCCOLI–stronger market here, too. Crown material a bit more scarce, so that market is going up, while the bunch market not as much. The past few weeks we commented that bunch was even higher priced than crowns with some shippers. That has changed, and gone back to normal. The overall market for crowns should back off by the end of this week.

 

CAULIFLOWER–a very wide range in price, with as much as a $-6.00/box SPREAD in price, depending upon the shipper and area. This is another market that we aren’t sure will hold up as we get into the weekend.

 

LEAF ITEMS–plenty of red, green, and romaine, and prices are flexible. There is local leaf throughout the country, keeping prices from going up.

 

CELERY–not much change. Larger size 18s and 24s continue lower priced than the smaller sizes. High freight rates will keep prices from going up here, too. Also, Michigan isn’t that far off.

 

STRAWBERRIES–plenty of berries around now, and prices are slipping. Driscoll is still holding on tough, and quoting $2.00/box, or so, higher than the general markets. Still, with demand and volume picking up, and prices going down for tree fruit, melons, and grapes, demand for berries will drop, and shelf space shrink for strawberries to the point that even Driscoll will be looking for business.

 

Ed Brem

ed@producewest.com

 

This past week, and shipping early this week, is showing BIG BUSINESS for produce. This holiday is the first of the summer ads that stores have come to depend upon for pumping up their sales and making the cash registers ring. Even with light supplies of tree fruit, grapes, cherries, and other summer items, business has been brisk. After Wednesday, however, business will slow to a crawl for many items. So, like any business, you’ve got to make it while you can!

Long range weather shows continued mild along the California coast for veg and berries, while the inland areas around Fresno continue to warm up, closing in on 100 degrees, which will certainly help bring on the fruit. No rain, which is nice.

Trucks have been pushing for higher rates, and we are hearing $8000+ for east coast freight, which we called for last week. They have been able to get those top dollars because of Memorial Day business. But, with that business all but finished, things should start to level out and rates even go down this weekend, as business slows.

 

LETTUCE–continued good demand and strong prices this week. However, as consumers start thinking about “fruit” salads, instead of “lettuce” salads, we see demand slowing down, and prices dropping. The shippers will certainly be looking for business this weekend, and there should be deals out there. Quality is very nice, with some of the best we have seen all year, so keep looking to advertise.

 

BROCCOLI–continued wide range in price, especially on crowns, with as much as $2-3.00/box spread, depending upon the area and shipper. Competition from eastern seaboard shippers are keeping the overall market down for crowns. Look to California broccoli for your broccoli needs, as the quality is second to none.

 

CAULIFLOWER–also a wide range in price, depending upon the area and label. This is one that we could see some real deals by the end of this week, so look to shop around. Quality is nice here, as well.

 

LEAF ITEMS–with local gardens coming on throughout the east coast, business is really backing off for west coast romaine, red, and green leaf. The markets are starting to show it, too, with red and green prices almost 1/2 of what they were 2 weeks ago. Still, with the higher freight rates, delivered prices still look high.

 

CELERY–shippers have been pushing the celery market up the past few weeks, not even concerned about climbing freight rates. We have stated in various bulletins that celery really is impacted by freight. Because you only get about 700 boxes of celery on a truck, as opposed to, say, strawberries, where you can get 2800 boxes, you can see what freight means. Currently, a box of celery is over $10 for freight, ALONE. This will continue to climb the next 2 months, too. So, if you push the fob price too high, delivered prices can easily get to $25-30.00 in the east.

 

STRAWBERRIES–the bloom is off the rose. Now that Memorial Day business is done, it’s like switching off the lights. All of a sudden, shippers, who prior to this time, wouldn’t even return a phone call because of the strong demand, are now our BEST friends! Even with the summer fruits kicking into high gear, continue to advertise berries, as we are seeing good prices and very nice quality, overall.

 

Ed Brem

ed@producewest.com

Now that the summer fruit items, such as peaches, nectarines, apricots, plums, grapes, and melons are finally starting to come on, trucks are starting to tighten up, and rates climb. We mentioned last week that we will easily see rates to the east coast closing in on $8000 for Memorial Day business, and that WILL be the case, with truckers demanding that as early as this weekend to various east coast destinations. This is only the beginning.

Long range weather for the next 10 days continue to show normal temperatures in the Salinas area, with days in the high 60s to low 70s, while the Fresno area shows highs in the low 90s. The desert growing regions, where the melons and grapes are coming from, are forecasted for 100-105 degree highs, also normal. No rain in any regions.

Trucks continue their pre-Summer, Memorial Day push rates. We are already seeing quotes as high as $8000 for multiple pickups to the far east coast. This could be the norm by the end of this week, and into next. These climbing rates make a HUGE impact to delivered prices for ALL commodities.

 

LETTUCE–good supplies, good, quality, and good demand.  This strong demand is driving the market upwards, as there are a LOT of ads out there for lettuce. May is definitely “lettuce month”. When prices start going up the way they have been, we usually see a wider range in price, depending upon the area and shipper. We are certainly seeing that, with as much as a $3.00/box spread. Again, quality is improving to the point that we are seeing some of the best we have seen all year.

 

BROCCOLI–as mentioned last week, there are actually lower quotes on crowns than bunch 14s and 18s. This is because supplies coming out of Virginia, Georgia, and other Atlantic seaboard states are coming on strong with crowns. This will keep the market from going up out west. Still, some shippers such as T&A and Dole are fighting to keep their prices up. As a result, we are seeing as much as a $3-4.00/box SPREAD in price on crowns out west. Quality is VERY nice.

 

CAULIFLOWER–the roller coaster ride is heading downward. We said last week that there will be some deals available this week, and there are. Good time to shop around for deals on 9s or 12s. What some shippers are quoting, and what they are actually SELLING for could be two different animals.

 

LEAF ITEMS–slowly, the prices on romaine, red, and green leaf are coming down. Supplies aren’t overly heavy in Salinas, as shippers normally don’t plant too heavily because of local deals that start up this time of year throughout the mid west and east coast. There are deals on all leaf items, so, again, shop around. For most shippers, quality is VERY nice.

 

CELERY–for whatever reason, the shippers are pushing prices up on all size celery. With the climbing freight rates, we don’t see this trend continuing. It just makes delivered prices too high. When you add $10-12.00/box for just FREIGHT, delivered prices easily get over $20.00/box, and we are now approaching $25.00 for some labels to the east.

 

STRAWBERRIES–with high priced cantaloupes, grapes, peaches, plums, nectarines, and cherries, stores will continue to advertise reasonably priced strawberries for Memorial Day. This is keeping demand strong, and prices firm. Quality continues to improve, and we are now seeing some of the best we have seen all year.

 

Ed Brem

ed@producewest.com

As we head into the heart of May, there are plenty of vegetable items to go around. Salinas now has close to the full menu, with lettuce, broccoli, cauliflower, leaf, strawberries, romaine, along with the “oddball” items such as bok choy, napa, spinach, green onions, parsley, etc. The only main item that is not available yet is celery, which is still going in Oxnard and Santa Maria. That deal looks to start in June.
Trucks definitely tightening up, and rates continue to climb. East coast mixers are in the $7000-7500 range, which is up about $2000 from a month ago. We will continue to see rates climb the next several weeks, and could easily see $8000 for Memorial Day business. Keep that in mind when figuring your ads and delivered prices.
Long range weather for Central California shows warm days in the 70s and 80s, and mild nights in the 50s. The Fresno area, where the tree fruit deals are kicking off, are slowly creeping into the 90s. No rain anywhere. All typical for this time of year.

LETTUCE–plenty of lettuce around, and prices have been slipping. May is the largest producing month of the year, and typically has the best quality. We are definitely seeing to volume come on, and quality is definitely improving, after the rain issues that were prevalent the past month.

BROCCOLI–wide range in price on bunch and crowns. Interestingly, some shippers are quoting MORE on bunch 14s and 18s than crowns. This is due to the “local” broccoli crown deals that are starting along the eastern seaboard, and they supply much of those areas. They price to SELL.

CAULIFLOWER–in its typical roller coaster ride, there has been a gap in supplies the past week, and the market spiked up. Now, we can already see better supplies coming on, and the market will start to drift downward. We see that because currently there is a fairly wide range in price, but overall trending lower. There could/should be some deals available this weekend, certainly by next week.

LEAF ITEMS–good deals around on romaine, while red and green have been trending to the higher priced side. There is already talk of east coast local deals kicking off, so the bloom could be off the rose for California leaf very soon. Quality is also improving, after several weeks of rain-effected product.

CELERY–stronger market on ALL sizes. We don’t see how the celery market can go much higher because of freight.  For example, a $7500 truck that hold 700 celery works out to be over  $10/box FREIGHT. This puts delivered prices easily $20 and higher to the east coast. Tough to put a decent retail.

STRAWBERRIES–Mother’s Day business is still going strong with west coast deliveries. Normally you would see the berry market start sliding the Wednesday before Mother’s Day, but we don’t think so this time. Shippers indicate they have solid business for the balance of this week. Supplies should start to pick up next week, and the market drift downward. Quality is finally improving, after getting out from under the rain effected product. Weather is ideal right for berries.

Ed Brem
ed@producewest.com

 

May is always an exciting month for produce. Not only does Salinas start getting into full production with lettuce, broccoli, cauliflower, leaf, strawberries, and countless other  items, but it signals the beginning to the Summer tree fruit, melons, and grapes season, not to mention peppers, corn, squashes, cucumbers and other items that have been in Florida, Nogales, and other areas of the country. California is truly a “produce paradise”!

Long range weather in central coast California shows no rain, but slightly cooler temperatures for this time of year. The central  valley, where the tree fruit deals are getting started, also show no rain for the next 10 days, with high creeping into the mid 80s, which is typical for this period.

Trucks are chomping at the bit for the fruit deal to get going, so they can start cranking up their rates. By the end of this month, for example, we should easily see rates up $1000 over what we are currently paying to the east coast.

 

LETTUCE–we’re still waiting for quality to improve, after the rains that hit the past few weeks, causing decay, red ribs, and other quality issues. Things WILL improve now, daily. May is historically the largest volume month of the year for lettuce, and usually some of the best quality. The market, strong last week, is starting to drift downward, and should be down $2-4.00/box by the end of the week, from current levels.

 

BROCCOLI–still plenty of supplies in Salinas, Santa Maria, and San Joaquin Valley, and the market is fairly wide spread, but towards the lower end. Good item to advertise and shop around for.

 

CAULIFLOWER–we see this market starting to make a move upward this week. Cauliflower is an item of highs and lows, based on production. There was a lot of product last week, and the market reflected it. Now, supplies are lightening up, and prices rising. Good item to load heavy early this week.

 

LEAF ITEMS–strong price runs on red and green the past few weeks, and the trend continues this week, although we do see an overall weakening by this weekend. Romaine supplies and market has remained steady. We are now starting to see better production and quality on all these leaf items, and should see the markets coming down. Romaine heart 12/3 are readily available, too.

 

CELERY–no change. Market flat on large size 18s, 24s, and 30s, slightly higher for 36s and 48s, but with high freight rates to the east coast, delivered prices are still up there. As mentioned, freight rates will continue to climb, making delivered prices for celery high and going higher. That won’t help the fob markets from getting off the floor. Also, Michigan isn’t that far away.

 

STRAWBERRIES–this week’s Mother’s Day pull is the second busiest week for berries, next to Easter. Orders are placed, and the market is solid this week, but with cooler temperatures the next few days, we could see a slight shortage. We don’t see the pro rates that we saw at Easter, but certainly tightening things up. Quality is mostly okay. Still some bruising and light colored fruit out there, but overall the fruit is mostly solid and eats well.

 

Ed Brem

ed@producewest.com

 

Believe it or not, we are only about 10 days away from  the first Mexican grapes that will kick off the 2012 Summer fruit season.  Seems like we just celebrated New Years! This is an exciting time of year as we get to start dealing with items such as peaches, plums, nectarines, grapes, melons, and other seasonal fruits, instead the the usual vegetables and berries.

Long range weather shows rain forecasted for tomorrow, but then clearing for the next 10 days. It may be just enough rain to mess things up for a while.

Trucks available and truckers continuing to push for higher rates. When the summer fruit deals in the next few weeks, watch out. Truckers are REALLY touting the potential for record-high rates this year, due to truckers forced out of business due to high fuel, insurance, repair, and other costs and government restrictions that are strangling them.

 

LETTUCE–stronger market this week, as Huron winds down, and Salinas is taking it’s time picking up the slack. Still, there is plenty of lettuce in Salinas around the corner, so we should see the market drift downward, starting as early as this weekend. Quality is improving daily, ever so SLOWLY. We’ll see what happens with the rain that is coming in tomorrow.

 

BROCCOLI–good supplies, quality, and good prices. Nice item to advertise. Some shippers are trying to hold on to higher prices for crowns, but there are deals around, so it worth shopping.

 

CAULIFLOWER–good deals here, too, on either 12s or 9s. Nice quality in either Salinas or Santa Maria areas.

 

LEAF ITEMS–markets have been active on red, green, and romaine, but have now appeared to have peaked out. Huron is all but finished, so supplies concentrated now in Salinas and/or Santa Maria areas. Quality, like head lettuce, is slowly improving.

 

CELERY–not much change. Good deals on the large size 18s and 24s, while the smaller size 36s and 48s are commanding $1-3.00/box more. The reason is that the smaller size usually go into heart production.

 

STRAWBERRIES–supplies FINALLY coming on, quality improving, and market dropping, just in time for RAIN tomorrow to mess things up again! We are supposed to get upwards of 1/2 inch, so that will set us back again. The good news is after tomorrow, we don’t see any more rain for 10 days.

 

After getting pounded with rain for the past 4 weeks, we are finally looking to dry out. This, again, is after an historic drought period in which we got basically NO rain in December, January, and February, our normal rainiest time of the year. Long range weather shows dry, mild conditions for the next 7 days, but a chance of rain by late next week. Normally, storms get less potent as we get further into April and May, but, then again, this has NOT been a “normal” year.

We are moving pickup location from the desert to Salinas for the spring, summer, and fall months. Nice to be more consolidated for pickup purposes.  Trucks are readily available, but truckers keep pushing for higher rates, using the higher fuel costs as the reason. Funny, fuel costs have leveled out, but the truckers keep pushing for more.

 

LETTUCE–with the desert finished, supplies are mainly coming out of Huron, Santa Maria, and now Salinas Valley areas. Huron should be finished in another 10 days, at which time we will be moving almost exclusively to Salinas and Santa Maria. The market, after a run up from last week’s rain, has started to back off, and should drift downward as the week progresses. Quality is still fair, at best, overall. The rain last week (with some hail damage) caused some problems, and shippers are dealing with that. Overall, weights are light, lettuce puffy and misshaped, but green and mostly fresh.

 

BROCCOLI–market back down to pre-rain market, although some shippers are trying to hold firm, which is why there is a $3-4.00/box spread in price on crowns. Supplies are available in Salinas, Santa Maria, San Joaquin Valley, and all the way into Arizona and Texas.

 

CAULIFLOWER–also a wide spread in price, with as much as a $3-4.00/box range. This is also one to shop around for deals. There are a few more 9 size showing up, compared to the past few weeks.

 

LEAF ITEMS–another wide range on red, green, boston, and romaine. Supplies are coming out of Huron, Santa Maria, and Salinas, and shippers are competing for business, so we are shopping these items, as well.

 

CELERY–no change. Good supplies and deals on the larger size 18s and 24s, while prices are $1-2.00/higher for the smaller size 30s and 36s. Oxnard and Santa Maria are the areas going, and some shippers are transferring to Salinas for consolidation, charging $1-1.50/box for the effort.

 

STRAWBERRIES–we are finally starting to see the light at the end of tunnel. After the rain that hit, it seems like every week for the past month, things appear to be drying out, and that means supplies will start to pop. If we don’t get any rain (and we aren’t supposed to for the next 7 days), we could see a LOT of fruit come on. Driscoll, will lead the way, and price $2-4.00/box higher than the general market. Quality is still an issue, due to the rain last week. Workers are doing their best to avoid packing the rain-effected fruit, but it can’t be helped. There WILL be problems showing up, with bruising, leather spots, dirty fruit, and occasional decay. Quality should improve daily, however.

 

Ed Brem

ed@producewest.com

After experiencing the driest, mildest December, January, and February on record in northern and central California, we continue to get storm after storm in March and now April. This keeps temperatures cool and slows growth of upcoming tree fruit, grapes, strawberries, and various other items. To give an idea, cherries are going to be 2-3 weeks BEHIND normal schedule.

Long range weather in southern and central California show scattered rain forecasted for tomorrow, Thursday, and Friday, followed by a break over the weekend, and another chance of rain this time next week.

Trucks are a bit tight this week, with rates stronger. This is probably due to trucks coming back out west from Easter. Also, due to the economy, business is slow for products such as furniture, machine parts, dairy products, and other items that would come west.

 

LETTUCE–still not much change in the market, with demand slow and prices flat. Supplies mostly coming out of the Huron area, as well as Santa Maria. Still a few shippers left in the desert areas. Quality is still not real sharp. Since demand is slow, some lettuce remains in the field too long and gets tired. Instead of moving on to fresher fields, some shippers pack the old lettuce, and it shows up OLD. We’re trying to go with shippers that are staying on top of their fields.

 

BROCCOLI–a bit wider range in price. Some shippers are desperately trying to get the market off the floor, while others are just trying to move product. We are seeing a $2-3.00/box spread in price, depending upon the area and shipper. Overall, though, prices remain fairly low.

 

CAULIFLOWER–like broccoli, there is a bit of a price range, with a $2-3.00/box spread on 12s, between labels and areas. Overall, the market is fairly flat. There are also 9s available, although with the cool weather, there are fewer around.

 

LEAF ITEMS–no change. Plenty of red, green, and romaine, and prices remain at, or near, the bottom. Supplies coming out of Huron, Santa Maria, Oxnard, and a few shippers still going in the desert areas.

 

CELERY–no change here, either. There continues to be a wide spread in price, particularly on the smaller sizes. Dole and T&A continue to price out $3-4.00/box more than the general market. Supplies generally in Oxnard and Santa Maria, with some shippers consolidating in Salinas for an up charge.

 

STRAWBERRIES–supplies remain VERY tight due to cool, wet conditions. Scattered rain is forecasted in berry country for tonight, tomorrow, Thursday, and Friday. This will keep things messed up ALL WEEK. Quality, while improved, will go back to showing problems, depending upon how much rain we get the next few days. Still, expect some leather spotting, dirty, light colored fruit for the next week to 10 days, depending. That is ALL there is.

 

Ed Brem

ed@producewest.com