8/15/11

Here we are in the middle of August, plenty of good quality product and quiet demand.  Prices are very low on most items to compete with East coast product.  Truck rates remain higher than average for a number of reasons. High fuel costs and lack of westbound freight are major factors in truck availability.  Package that up with new emissions laws and costly upgrades and fines, and we have a heavy freight bill.

Weather on the east coast continues to be hot, and product is coming steadily.  Salinas weather remains cool and mild producing nice quality product. Deals are here and product is looking nice so come and get it!

LETTUCE — Quality remains generally nice.  We have had very few hot days and the plants are less stressed, increasing their ability to fend off diseases and pests.  Some mildew has been spotted in select corners because of some misty mornings, but overall product looks good.  Shippers are doing all they can to get Fobs’ up into the double digits but have been unsuccessful up to this point.

BROCCOLI — Lots of local and eastern broccoli, but, quality out west is very nice, bunches are tight and good color.  Supply will continue to be good into next week.  Good item to promote, shippers are looking for creative ways to move product in slow times like these.  3 dollar spread in price among shippers

CAULIFLOWER — Plenty of product this week.  Condition is excellent, many of the pest problems from 3 weeks ago have been taken care of and we are left with nice durable product.  Also a good item to promote.

LEAF ITEMS — Once again, nice quality product, dirt cheap prices industry wide.  Shippers are looking to move.  Some fringe burn associated with the wind, but nothing major to report.   East coast product has been plentiful, taking the steam out west coast production. Even with low fob’s, high freight costs push up delivered prices, and retail.

CELERY — Freight has kept this item from making any sort of move.  $10-11.00/box cost to haul to the east coast is a touch pill to swallow.  Consumers will tend to substitute fruit items for celery, which is another costly blow to this item. Dole still KING, commanding $2-3.00/box MORE than the general market.

STRAWBERRIES–There is a 3 – 5 dollar spread between Driscoll and ‘other’ berry shippers.   There are a few reasons for this; one being the obvious is the Driscoll name. Another is the fact that Driscoll is one of the only strawberry shippers that are willing to go all the way east with their product.  Other shippers would rather take the safe route and keep deliveries west of the Mississippi or go to the freezer or processing.  Because of this, Driscoll is pro rating orders this week due to high east coast demand.  There have been some quality issues, but current varieties have held up nicely even though we had some misty mornings last week.

Ed Brem

Produce West

Back to school time means several things to the produce injury. 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.
Trucks still a bit snug this week, which is reflective of the overall economy, with slow westbound freight to get the trucks to California to load produce. Rates are unusually high for this time of year, as a result.
Long range weather show typical for Salinas, with early morning and night overcast, burning off by midday, and clear, cool days. Cooler than normal, this has been the trend ALL summer, so far. Fresno is HOT, typical for these summer months.

LETTUCE–shippers trying to get this market off the floor. The market has been fairly stagnant for the past several weeks, and it is only a matter of time before it starts to get stronger. Our cooler than normal temperatures for this time of year is slowing growth. We are also seeing smaller size, and firmer heads.

BROCCOLI–another item that shippers are trying to push up in price, but with so much product coming on in Maine, and other areas, prices continue to flounder out west. Quality is VERY nice in Salinas, so it could be worth the extra money.

CAULIFLOWER — a wide range in price, depending upon the shipper and label. There is good quality with even the most obscure labels, so its worth the shopping around, if you aren’t “label conscious”.

LEAF ITEMS–not much change on red, green, or romaine. There is not a lot of interest this time of year for leaf items, which is typical for summer. On the other hand, there are quality issues with romaine, in particular, so the market could get stronger. The cooler, damp nights and mornings are lending itself to more mildew showing up, so it is important to get the best quality out there.

CELERY– no change. There is a continued price spread between the “mostly” market and preferred labels such as Dole an T&A, with as much as a $3-4.00/box SPREAD. Freight continues to be the biggest stumbling block, with a $10-11.00/box cost to haul to the east coast. That still puts a delivered cost for a box of celery at $22-26.00. Tough to put out a decent retail.

STRAWBERRIES–the cool, damp weather is starting to take its toll on quality. The main result of these conditions is BRUISING, which is caused by picking a “wet” strawberry. Put that wet berry in a box, and it pushes up against the container and other fruit, travels on a truck for 5-6 days, and the result is bruising. We are now suggesting that you order for a “fast turnover”, and order just what you need.

Ed Brem
ed@producewest.com

Record breaking heat continues to hammer the entire East coast, with days in the 90s, and stifling humidity. This week looks to be hot and muggy, with some forecasted relief by the middle of next week. Still, these conditions are really hurting business, as people just don’t want to go outside. Also, local items, such as broccoli, cauliflower, leaf, berries,  and other items are coming on quickly, but there will probably be some problems down the road.
Trucks, for some reason, are VERY tight today. Not sure why, although part of the reason is that westbound freight, east coast items delivering to California, is extremely slow, and truckers say they have rigs stuck in the east. Regardless, rates are up $300-400 over last week.
Long range weather in the growing areas of Salinas/Watsonville show cooler days by 5-7 degrees, while the Fresno area is forecasted for the mid to high 90s, which is a bit below normal for this time of year. We already know what is going on on the east coast.

LETTUCE–slow demand, low market, as shippers are ALL looking for business. Quality for product in Salinas has improved a bit, with better size and weights. The cooler weather this week may slow down growth and production, and we could see the market perk up by this weekend.

BROCCOLI–with all the available product on the east coast, demand for broccoli in California is very slow. Still, there is a shortage of crowns out west, and shippers are looking to raise their prices by $1-2.00 over last week. It may be short lived, as no one really cares, and will buy their product in the east.

CAULIFLOWER–a very wide range in price on 12s and 9s, with as much as a $5.00/box spread, depending upon the shipper and area. Overall quality is very good to excellent, so it is worth shopping around for the best deal.

LEAF ITEMS–no change. Market at, or near the bottom on red, green, and romaine. What is keeping it there is, not just local product, but freight. Currently, the freight for a box of these items is costing more than the FOB! As a result, delivered prices are not too attractive, and retails aren’t priced to move.

CELERY–market fairly weak on the large size 18s, 24s, and 30s, while the smaller size 36s and 48s are tight, and priced $3-5.00/box more than the larger sizes. The main reason is that demand for hearts is VERY strong, so shippers, lacking in heart material, are moving to 48s and even 36 size for the their heart material.

STRAWBERRIES–good demand and strong prices. August and September are usually Driscoll months. Quality usually starts to fall off during this time, and buyers want Driscoll, due to their overall consistent quality. But,  as Driscoll’s demand goes up, so does their pricing, as well as pro rates. If you’re “in” with Driscoll, that’s good. If not, you are on the outside LOOKING in.

Ed Brem
ed@producewest.com

Not that we had to remind anyone, but, we are entering the Dog Days of August. As if record heat throughout the midwest and east coast isn’t enough of a sign. Normally, local deals kick in throughout the areas with lettuce, celery, fruits, broccoli, cauliflower, and other items appearing in local fruit stands and stores. While there should be plenty of product to go around, the record heat waves could effect certain items and put pressure on the west coast. At least, that is what the shippers out west are HOPING for.

Long range weather in the growing areas of Salinas and Santa Maria show continued mild days and nights, with highs in the 70s, and overcast(fog) in the night and early morning. Fresno area show continued hot, with highs in the high 90s and low 100s. Both areas are normal for this time of year.

Trucks are available for all areas of the country, with steady rates for this time of year.

LETTUCE–after a run up last week, demand has fallen off, and prices more “flexible”. Even with volume and yields down, and shippers thinking they can raise prices, “fruit” salads are replacing “lettuce” salads for lunch and dinner this time of year. Lettuce quality is mostly good, but we would like to see a bit more size and weight.

BROCCOLI–volume down, but the shippers can’t push their markets up  too much, with supplies out of Michigan, Canada, and Maine areas producing good numbers. We don’t see demand for broccoli improving out west for another month, or so.

CAULIFLOWER–this market is also going south, after higher markets last week raised retail prices. There is quite a spread right now, with as much as a $5.00/box difference on 12s, depending upon the shipper and area. Good item to shop around for.

LEAF ITEMS–no change. Romaine, which had gotten stronger last week, has come down. Red and green leaf can’t establish any momentum at all, and are at, or near, the bottom.

CELERY–there is a real price spread between Dole and the rest of the pack. For instance, on 36 size, there is as much as a $6.00/box SPREAD between Dole and the “mostly” market. Do they warrant this kind of difference? Some people think so. Still, if you don’t have to have Dole, there are plenty of deals out there. Michigan is getting hammered with record heat, so we could see the California demand and market go up next week.

STRAWBERRIES–most shippers have PEAKED, and are starting to drop off in supplies. There will still be plenty of fruit around, especially with local markets in the east, so not to worry. Still, Driscoll says they are going to raise their prices by $2.00/box next week! We’ll see.

Ed Brem

ed@producewest.com

With the holiday over, we are now heading towards typical summer action.  Markets are slowly warming up after hitting the bottom last week.  Supplies are cleaning up on a number of items and movement is getting better.  Quality has been satisfactory despite the rain a week and a half ago.

Trucks are tighter this week, fuel prices remain high and truckers are calling the shots as to where and what they want to pick up.   Rates are still in the high 7000 range for mixers to the east coast, slightly higher than they were last week, but they should be easing up as fuel prices drop and more trucks come into the mix.

Weather is going to be cool for the rest of the week with temperatures staying below the mid 60s.  There may be a warming trend starting later next week.

LETTUCE — Better demand these past few days and shippers are cleaning up supply.  Quality is better as movement improves, fresher product and cooler weather makes for stronger structure and it should ride better than previous weeks.  Buy heavy early this week, as we expect this market to get a bit stronger towards the weekend.

BROCCOLI — heavy supplies as we come into the week.  Much of the action anticipated later last week never happened and now we will be seeing deals industry wide throughout this week.  Some quality issues came about from last weeks heat but low markets will keep most of the problems in the field and out of the box.   Plenty of deals although we have seen some 3 dollar spreads between some shippers.

CAULIFLOWER — Market has perked up a bit over the past few days.  There is a wide range of prices but overall we will see the action pick up towards the middle of this week.  There have been some quality issues mostly due to extreme temperature fluctuations, some browning and sunken areas, but nothing substantial, just be aware.

LEAF ITEMS — Nice quality industry wide.  Green leaf and red leaf are still cheap and more product on the way.  Romaine has been about 3 – 4 dollars stronger than green and red and should continue through the end of the week.

CELERY — market has been getting stronger as supplies clean up in Salinas.  A few factors will keep this market from getting out of hand.  First and foremost are the high freight rates.  With other summer items in the spotlight, high retail prices on celery will turn attention away from celery and more toward melons and berries for fruit salads.  Another factor that should keep prices at bay is the Michigan crop starting up. Once they start up there will be less demand for California celery.

STRAWBERRIES — Lighter supplies this week. Some quality issue and most shippers are leaving a berries in the furrows trying to mitigate what issues are out there in the field.  Cold weather has slowed production in most areas and we will see demand increase this week.  Off label fruit is now being priced similar to Driscoll so we may see them raise their prices over the next week or two if conditions do not change.

Ed Brem

ed@producewest.com

This week is starting out on a quiet note, even with 4th of July approaching.  The last of the holiday product is being loaded and things are looking quiet as we progress into the middle of this week.  Summer items like berries, melons and tree fruit are in the spotlight.

Truck rates hit their peak 2 weeks ago and now are settling down after the holiday, although rates will continue be abnormally high.  High freight rates have kept the general market from making any significant move, high retail prices have kept a lot of the product on the shelf, resulting in people buying only what they need.  There has been news of fuel prices easing, which will help bring rates down.

Some rain in the forecast for this week on the central coast, but is only expected to linger in the northern areas like San Francisco and Sacramento.  Temperatures are normal for this time of year, between the high 60s and low 70s.

LETTUCE — Plenty of product available and shippers are looking to move. Shippers are not happy with the current movement so we could see prices drop a dollar or two towards the end of the week.  Quality is nice, cool temperate June weather has produced some nice heavy heads with legs to go pretty much anywhere.

BROCCOLI  — market has fallen off from what it was a week and a half ago.  Plenty of product available, and even more in the fields will most likely keep broccoli down into the single digits for the time being.  High freight rates have certainly kept this item from making any sort of move.  Quality is nice, some branchy but overall tight presentation.

CAULIFLOWER — Prices have certainly fallen off from last week.  Demand just wasn’t there and freight was expensive.  Quality is fine, shippers are looking to move and deals are everywhere.  Possibly lighter supply next week and we may see a slight market increase.

LEAF ITEMS — Romaine has made a slight increase in price, most likely due to a small supply gap, but nothing major. prices are still cheap and good quality.

CELERY — plenty of product around.   Oxnard is trying to clean up the last of their product so they are making dirt cheap deals on larger sizes.  High freight rates have kept FOB prices low and demand has decreased due to increased focus on summer berries and melons.

STRAWBERRIES — tighter supply this week, Driscoll is once again in to pro rate mode and there is lighter supply industry wide.   Weather has been mild and berries are strong and making arrival with little or no problems.

Ed Brem

ed@producewest.com

Summer officially begins June 22, and we are certainly glad to see it come, after the cold, rainy weather we have had out West in California. Below normal temperatures, above normal rainfall had slowed down growth and production on tree fruit, berries, grapes, and just about wiped out the Bing cherry crop. So, we are happy that things are starting to get back to normal!

Long range weather shows that we are in a mini heat spell, with temperatures on in the Salinas area hitting a whopping 80-85 degrees, but the San Joaquin Valley peaking out at 103. These temperatures, after the record-setting cold spells we have had, are like a slap in face. But, this will only last a few days, then back to normal.

Trucks are a bit more abundant this week, but rates still in the $9K range to the east coast.

LETTUCE–quality definitely improving every day, with better size, weights, and condition. The market is floundering around, with the high freight rates keeping shippers from even attempting to raise their prices. For instance, freight for a box of lettuce to, say, New York is pushing $9.50-10/box, which is what the FOB market currently is.

BROCCOLI–quite a range in price here, especially on crowns, where there is a $3-4.00/box spread between areas and labels. Overall, the market is slipping a bit from where it was last week. Quality is VERY nice.

CAULIFLOWER–a good spread here, too. 12s ranging from $10.00 to as high as $16.00!! This is certainly an item to shop around for. Supplies coming out of either Salinas/Watsonville or Santa Maria.

LEAF ITEMS–red, green, romaine are all still on the floor, price wise. As mentioned, freight is what is keeping these markets from doing anything, with freight for a box of romaine nearly DOUBLE what the FOB is!  Quality very nice for ALL leaf items out of the Salinas area.

CELERY–wide range in price here, too. Dole, for instance, is $5-6.00/box HIGHER than the general market for the smaller size 36s and 48s. Oxnard has to be totally done by the end of this month, so there are deals out there.

STRAWBERRIES–looks like the warm weather we are into will finally bring some fruit on. And believe us when we tell you. The fruit is OUT THERE! Driscoll still slightly pro rating, but even THEY will be looking to push.

Ed Brem

ed@producewest.com

$15.00/box seems like a decent price for a box celery. But, that’s not the fob, that’s the FREIGHT to the East coast! Rates of $9000 and UP are what truck rates are going for to the Pennsylvania, New York, Massachusetts areas. Beside celery, other examples of what freight would be are, $9.50 for wrap lettuce, $8.00 for broccoli, $10.00 for romaine, even strawberries are upwards of $3.50/box. These rates, alone, will keep the fob markets from going too high for very long.

Long range weather in the Salinas growing areas show a gradual warming trend to more normal temperatures. The San Joaquin Valley, where the tree fruits are coming from is also warming into the 90s, which is more normal for this time of year. So, we are finally starting to see temperatures climb up to where we SHOULD be.

As mentioned, truck rates are pushing $9000 to the East coast, and we have even head close to, dare we say, $10,000 for milk run mixers! That is CRAZY. But, at the same time, it’s hard to imagine rates going higher. We’ll see.

LETTUCE–a bit of a range in price, depending upon the area and label. Some shippers think prices may go up, but, again, the high freight rates increasing retail prices will have something to say about that.  Even if prices do go up, it won’t be much. Maybe a dollar, or so. Quality is improving daily, as we start to warm up.

BROCCOLI–still a shortage here, especially on crown material.  However, we see this market starting to come down, as supplies are expected to increase later this week. We are loading broccoli out of Salinas and Santa Maria areas.

CAULIFLOWER–like broccoli, still a bit short in supplies, but should pick up as the week goes. With fob prices upwards of $18-20.00, it is important to buy with protection, as the market won’t come down just a dollar at a time.

LEAF ITEMS–just too much product around. Romaine, green, red, and boston are all dirt cheap. The only thing keeping retails up are the freight rates. As mentioned above, a box of romaine is upwards of $10.00, just to haul it to the East coast!

CELERY–$15.00/box freight? Say no more. That alone keeps shippers from pushing their fob prices up. Also, Salinas is just starting their Summer deal, and Oxnard will wind down in the next 2 weeks, so we don’t see this market doing much, although there could be some deals out there if you shop around.

STRAWBERRIES–everyone expects demand and prices to hit a wall. And, while we DO expect supplies to pick up, it probably won’t be until the end of this week. For now, most shippers are sold out today and tomorrow. Driscoll, in particular, says they are basically sold out through midweek, and indicate they have strong bookings for the entire week. Good news, is, quality is improving overall, as we aren’t seeing the white shoulders that we have seen the past few weeks, which were rain-effected fruit.

Ed Brem

ed@producewest.com

Even though Summer doesn’t officially begin until June 21st, out here in California we should at least be enjoying late Spring-like weather. May was 5-6 degrees below normal, with record breaking rainfall amounts. June has started out like May, 5-6 degrees below normal temperatures, rain 2-3 days out of the first 7. Keep in mind that we usually don’t get ANY rain in California from about early May until November! Needless to say, things are a MESS.
Long range weather shows we are FINALLY drying out, but temperatures look to remain cool and below normal for the next 10 days. At least no rain!
Trucks, or LACK of trucks are making new headlines. Rates $8000-9000 to the East coast for mixer loads, and the fruit deal has BARELY started. There is talk that rates could hit $10,000 at peak this Summer. We’ll see. Experience shows that if there in MONEY to be made, more people get in it.

LETTUCE–Salinas Valley got some rain over the weekend, and with cool temperatures, we see this market picking up by the end of this week. Quality is scattered due to the weather issues, so we are making sure we are buying the freshest product we can find.

BROCCOLI–a real shortage here, especially on crowns. The current market is around $20 fob for crowns, due to lack of crown material. We see this market starting to ease off, possibly by the end of this week, or certainly next week.

CAULIFLOWER–wide range in price at high levels. What this means is that there is a range of $18-22.00 fob for 12s. But, we see this market slipping by the end of this week, possibly as much as $5-6.00/box, so we are buying “strategically”.

LEAF ITEMS–no change. Red, green, and romaine all low in price. Supplies mostly coming out of Salinas, with amounts available in Oxnard and Santa Maria, as well. We could possibly see the romaine market pick up by this time next week.

CELERY–good deals on all size celery from the “mostly market” shippers. Dole and T&A are trying to hold $2-4.00/box higher than the general market. We don’t see this market going up too  much, especially with freight rates high and going higher. Right now, freight for a box of celery is higher than the fob price to the East coast!

STRAWBERRIES–the rain over the weekend put many shippers into a “stripping’ mode, getting rid of rain effected fruit. It’s just as well, as we see A LOT of fruit coming on by this weekend, or early next week. Shippers won’t be able to get out of their way with what is around the corner. Quality is pretty good, with big fruit, hard, and sweet. Because of last weekend’s rain, there was quite a bit of fruit harvested that didn’t have good color, with white shoulders and green tips.

Ed Brem
ed@producewest.com

The calendar says we are in spring out West, but you’d never know it. Continued below normal temperatures, and continued rain (albeit light) and threats of rain. This is keeping the summer fruit crops at bay, as well as strawberries, raspberries, and blackberries. It also slows down growth and production of vegetables in the Salinas/Santa Maria areas, allowing shippers to push for higher prices.

All we need is a few warm days to kick start product, but the next 10 days show cool temperatures, and light rain for the next 48 hours.

Trucks are trying for more money, figuring the summer fruit deal is here. But, it isn’t, so rates are steady. However, by the end of this month, we will see rates to the East coast around $500 more than we are paying now.

LETTUCE–a REAL shortage. This is all related to the planting gaps we had with heavy rains in February and March. We seem to forget that when it rains, growers just can’t go out and plant, hence the gaps. Supplies look tight all this week, and fob price are already near $20, and will probably go up from there as this week progresses.

BROCCOLI–tight supplies and strong market here, too. Again, the planting gap has resulted in light supplies, and shippers are pushing bunch and crown prices daily. However, we see the market stalling out by mid week. Prices will probably stay firm, we just don’t see it going up.

CAULIFLOWER–as predicted, shippers pushed their prices up and up, and killed the market, when retail prices went up. Even though our cool weather isn’t brining on supplies, demand has fallen off, and there are deals around. We see prices falling this week, so don’t get caught with high priced product.

LEAF ITEMS–steady on red, green, and romaine. Even though supplies are light, there just isn’t a lot of interest for leaf right now. But, with iceberg so tight, we could see some receivers switching over to leaf for the “lettuce” needs. And that could create some markets with those items, especially romaine.

CELERY–still tight supplies and strong market. Couple the fob prices with freight that is near $10/box, and delivered prices for just about all size celery on the East coast is close to $35.00. We are scratching our heads to figure out why the fob prices are remaining where they are. Oxnard and Santa Maria are the two areas going, so Salinas is still 4 weeks away.

STRAWBERRIES–cool, wet weather is keeping supplies of ALL berries(straws, raz, and blacks) down, and the market firm. Driscoll continues to pro rate 50-75% on your orders, and with some rain coming in tonight and into tomorrow, we see the berry deal strong ALL week. Quality

Ed Brem

Produce West Inc.

ed@producewest.com