We thought we saw the light at the end of the tunnel after our worst winter in 50 years, but it’s not over.  Huron had a positive start 2 weeks ago but was pelted with hail which destroyed much of the leaf supply. Salinas got more rain this past week and near freezing nights which have hurt an already fragile start in production.

Trucks are especially tight this week due to high Easter demand.  Rates are going to at least 1000 dollars more than they were two weeks ago.  High fuel prices are keeping rates up as well, we don’t see any relief in fuel prices as we head into the summer.

Long range weather sees a slight improvement in temperatures in the Salinas Valley; however we are still plagued by some cold nights this week.  The good news is it looks like we will have a much needed warming trend after this week.

LETTUCE — Product is looking ok for now, some outer leaves have been affected by cold weather and have been shed down to the inner leaves, resulting in lighter weights.  The market seems to getting stronger this week, but should level off after the Easter pull.

BROCCOLI– Tighter supplies, some shippers are sold out early this week.  Salinas, Santa Maria, and San Joaquin Valley are picking up supply daily.  Supply is tight but should improve significantly by Friday.  There is plenty of product in the ground nearing maturity.

CAULIFLOWER– Quality is good, similar to broccoli.  The market is still strong for 9s and 12s, but flattening out as more and more shippers begin operating and product sizes up.

LEAF ITEMS– Huron had a good start but problems arose as weather because cold and rainy.  Growers are doing a good job avoiding major problems.  Very few quality problems up to now but expect to see some later this week.  Salinas is slowly starting production but Huron will continue for another 2 weeks.

CELERY– Very good quality reports today. Supplies are increasing. Some product is showing early seeder issues but minimal damage due to the fact that weather has been cool.  Expect the market to remain consistent for the time being and some deals are out there.

ASPARAGUS — Fob prices have SKYROCKETED for Easter business.  The problem: Easter is late this year and volume, which had peaked 2 weeks ago, is diminishing.  The desert is finished and product is now coming out of northern areas like Salinas and Stockton/Lodi, all of which have barely started production.  Quotes are over 60 dollars FOB and going up.  Most Easter ads were pulled and we are lucky to get any product at all.

STRAWBERRIES – This past weekend’s temperatures were RECORD LOWS for Oxnard, dipping into the low 30s. It was a 50 YEAR LOW. While the weather looks nice all week in berry country, shippers are SO backed up, that this Easter pull will be hit HARD with pro rates and cuts. Some shippers are claiming that they were 20 loads SHORT of their orders over this past weekend. Shippers are hundreds of thousands of cartons short of their demand for the next few days.  EXPECT to have your orders cut.

Ed Brem

ed@producewest.com

The desert growing areas are finishing up, and the new areas of Huron and Salinas are now in full production. Product in Huron is looking nice; a welcomed change of pace after a difficult winter. As we begin loading up north, we are already in the midst of existing problems in our industry including high fuel costs, resulting in high food prices across the country.

Even though there are plenty of trucks available for all areas of the U.S., rates are jumping by 4 or 5 hundred dollars this week.  Also, as mentioned, it is important to give your trucks an extra day to load.

Long range weather show a mostly clear week, only light showers towards the end of the week , temperatures are in the mid to upper 60s in Salinas growing areas.  Oxnard is expecting warm days, but rain is forecasted this weekend.

LETTUCE– Huron product is lighter weight, smaller, showing a few internal problems, but good quality overall.  This is looking to be a better year for Huron product than past few years.  The market remains fairly flat as supply picks up and should remain so for the time being.

BROCCOLI– Tight supplies, however market is not moving.  Salinas, Santa Maria, and San Joaquin Valley are picking up supply daily.  The desert is finished for the season, with only bits and pieces remaining.

CAULIFLOWER– Quality is good, similar to broccoli.  Supplies have now moved to the northern districts. The market is strong for 9s and 12s, but flattening out as more and more shippers begin operating.

LEAF ITEMS– Good supply and quality. Good deals in most areas. Product is looking better than weeks past. Huron is now in full production , as is Santa Maria. Salinas is in early stages but should begin normal production later this week.

CELERY– Very good quality reports today. Supplies are increasing. So far problems have been minimal.  The market should remain fairly consistent for the rest of the week with a 1 – 2 dollar spread between shippers.  Product had bounced back from the rain last week and is almost back to normal growing and harvesting schedules.

ASPARAGUS–as the desert continues to warm up, and product has begun to slowly shift up north.  Currently supply is ok and quality is good.  Lodi/Stockton and Salinas areas are starting to. As Easter business picks up, supply could diminish and we are hoping the weather does not wreak havoc on production.

STRAWBERRIES–Supplies are increasing and should be improving throughout the week. Rain is forecasted in Oxnard on Friday which could cause problems in the days ahead.

Ed Brem

ed@producewest.com

Once again, it is “transition” time. The desert areas are finishing up, and the new areas of Huron and Salinas are under way. But, with this move, it brings it’s share of problems. Mixer loads get scattered, and we find ourselves starting trucks in Salinas and eventually finishing out in Yuma, Arizona. LOTS of extra miles are added to loads, and with ever increasing fuel costs, the loading and delivery costs keep going up. Also, it is important to know that you will have to give your truckers an extra day to get the loads picked up to make your delivery schedule. Also, the “new” areas of Salinas and Huron are starting in their typical way, with marginal quality and light weights. The alternative is to load older product in the desert, with less of the holding quality on the shelves.

Even though there are plenty of trucks available for all areas of the U.S.,  as we move  to the northern districts, truckers will be demanding more money for their loads. Also, as mentioned, it is important to give your trucks an extra day to load.

Long range weather show a VERY welcome sight–NO RAIN!! The desert will be warming into the 90s, while Oxnard, Santa Maria, and Salinas hitting the high 60s to high 70s, IDEAL for this time of year.

LETTUCE–the desert has another week to 10 days left, while Huron is starting to amp up. Quality is questionable in both areas, with the desert looking more old and tired, while the new area of Huron is lighter weight, smaller, showing some internal problems, but fresher. Pick your poison. The market is fairly flat in both areas, as demand is just so so.

BROCCOLI–the desert has basically finished, and Salinas, Santa Maria, and San Joaquin Valley are picking up the slack. It is a real challange trying to load trucks with broccoli on it, as you need to start in Salinas and finish in the desert. Shippers aren’t transferring broccoli to the desert. The market is a bit firmer, especially on crowns.

CAULIFLOWER–like broccoli, the desert has bascially finished, as supplies move to the northern districts. The market is strong for 9s and 12s, but as the weather warms up this week, there should be more of a price range.

LEAF ITEMS–good deals on red, green, and romaine in the desert, and that area has another week, or so, left. Huron is going now, as is Santa Maria. Salinas has just barely started to scratch the surface.

CELERY–as Oxnard dries out from the unrelenting rain the past 2 weeks, supplies are slowly starting to increase. There was A LOT of damage done to celery fields, and we will see the effects for weeks to come. As a result, the market on all size celery and hearts is $16-20.00 FOB, which is still $25-28.00 delivered to the East coast, PLUS the extra $1.50/box for sleeving.

ASPARAGUS–as the desert continues to warm up, it is becoming increasingly more obvious that that area will NOT be a supplier for Easter. That leaves it up to the Lodi/Stockton and Salinas areas to be the major area. Still not sure how this will play out for the Easter rush.

STRAWBERRIES–we should FINALLY start to see numbers increase in the berry patches, but not until next week. After that, we should be in good shape for supplies, as long as we don’t get any more rain!! But, again, it won’t be until next week for some volume, as this week will still be a mess, with pro rates, strippings, and quality issues.

Ed Brem

ed@producewest.com

3/14/11

The 2011 desert deal is rapidly coming to a close, and will be totally finished by the end of this month, or first of April. This has truly been one for the record books. We are still dealing with freeze issues that hit the first of February, so we are closing in on 6 weeks, and look to continue to see the effects for the balance on this Winter deal. Most everyone has cooperated during this troubling times, dealing with quality problems, shortages, and high markets, and it all has to do with keeping everyone informed beginning with  the grower and all the way to the store level.
Long range weather in the desert show the highs creeping into the low 90s and nighttime lows in the mid 50s, typical for this time of year. No rain in sight.
Trucks are readily available with rates steady, although with higher fuel costs, truckers are balking at these prices.

LETTUCE–the market is starting to crack, after peaking out the past 2 weeks. Its difficult to predict what will happen to the market in the coming weeks, but it definitely won’t go up. A $30 fob is tough to sustain, although we have seen it stay there for the past 3-4 weeks. We expect the market to drift downward this week, maybe a $10/box drop, then possibly firm back up. Overall quality in the desert is slowly improving, but size and weights are still down. Huron starts next week, and if history holds, the early quality won’t be anything to write home about.

BROCCOLI–plenty of supplies throughout the desert, and now Salinas is getting started, so we should see some deals around for bunch and crowns. Quality, for the most part, is holding up, although there is purple cast out there due to the cold weather these past weeks.

CAULIFLOWER–quite a wide range in price, depending upon the area and label. In fact, there is as much as a $5.00/box SPREAD out there, so it would be wise to shop around. Salinas has also started in a light way.

LEAF ITEMS–green leaf and red leaf are finally coming down to fairly normal prices, while romaine still up there, relatively speaking. The romaine, which had hit upwards of $45.00/box these past weeks is cut in half, but that still makes if over $20.00/box fob. Huron has actually started in a light way, but the desert will continue to be the main source of supplies for another 3 weeks,or so.

CELERY–steady market. The desert is winding down, and cooler weather is forecasted for Oxnard, with a chance of rain later this week. There are plenty of reports of seed stem that will be a factor in April and May, which will probably keep the overall celery market strong, so we don’t anticipate much of a market drop for quite a while.

ASPARAGUS–we are seeing about the lowest prices for asparagus right now, so now is the time to advertise. Good quality, too. Looking ahead, with Easter coming so late this year(April 24th), the desert will be TOTALLY finished, which means supplies will have to come out of Salinas, Lodi, and Stockton areas.

Ed Brem
ed@producewest.com

3/7/11
It’s hard to believe, but the desert only has another 3 weeks, or so to go, and Huron will start in 2 weeks. Salinas is only a month away! In the meantime, we continue to deal with shortage of lettuce, leaf, romaine, broccoli crowns, endive, escarole, and various other items. We have said in previous bulletins that these markets will be strong for the remainder of the desert deal, and we continue to feel that way. In fact, it will probably carry over to Huron with head lettuce, romaine, and leaf.
Long range weather shows the desert climbing into the mid to high 80s during the day, lows in the 50s at night. No rain. All good.
Trucks plentiful, however the truckers are trying to push rates up a bit, due to the increased diesel costs.

LETTUCE–this market has definitely peaked out at $30-35 FOB, and may even drop off a bit this week. Retails are set WAY high, and most of the lettuce is small and light weight, which is pushing consumers to bag salad, or no salad at all. When this market DOES start to come down, it won’t be 50 cents or a dollar at a time. Quality-wise, continue to expect small, light weight product that rattles around in the box, and still some freeze-effected issues.

BROCCOLI–bunch 14s and 18s are available at reasonable pricing, while crowns are still $5-8.00//box MORE than bunch! It shows you that there just isn’t much in the way of crown material, which require a larger head, something we haven’t seen much of due to the cold temperatures the past month.

CAULIFLOWER–better supplies coming on, and we see this market dropping by the end of this week. Still not a lot of 9s out there, but should be more 12s.

LEAF ITEMS–still MAJOR problems with romaine. This market has stayed in the $40-45.00 FOB range for weeks now, and could continue for another 2 weeks. Still some feathering, peel, and blister issues, as workers continue to trim off freeze-effected problems. Green(at $13-16.00 fob) is the LEAST expensive of all the leafy greens. Red and boston are both in the upper $20s fob. Again, expect another 2 weeks of this, and possibly longer.

CELERY–desert starting to wind down in supplies, while Oxnard is actually picking up more volume. Prices rebounded last week, but there are signs of lower pricing this week. A little heads up, but we could see some seeder problems next month, which will keep prices STRONG.

ASPARAGUS–the warm weather in the desert is certainly helping to bring on supplies of 28/1# standard and large grass. There could be some deals coming up during the next 1-2 weeks. Right now, we are looking for ANY ad opportunities!

STRAWBERRIES–supplies picking up in Oxnard, but with Florida still going strong, demand is still light out West. Keep in mind that California berries are big, hard, and HIGH sugar. This is typically some of the BEST fruit of the year in California. On the horizon, Florida only looks to be a factor another 2-3 weeks, which will shift demand for California fruit.

Ed Brem
ed@producewest.com

2/28/11

The desert growing regions are FINALLY getting into a more normal weather patterns with days reaching the high 70s to low 80s, nights in the low 50s,  but we are FAR from getting over the problems created by the freeze in early February. Shippers continue to trim off freeze-affected product on head lettuce, romaine, leaf, anise, endive, escarole, and various other items. We have mentioned that when the freeze hit several weeks ago that we would be dealing with these problems well in to March, and we still see that. Simply put, expect “high prices and poor quality”.

Long range weather for the next 10 days show the desert in the upper 70s to low 80s for highs and lows in the low 50s, both normal for this time of year. The Oxnard area, where most of the celery and West coast strawberries are coming from, also show more seasonable temperatures, however there is a chance of rain there later this week.

Trucks remain plentiful, with rates holding steady due to higher diesel costs.

LETTUCE–you’d think the shippers would be making a boat load of money with fob prices in the mid $30’s for wrap lettuce. They are and they aren’t. While prices are high, yields are WAY down. A normal field of head lettuce, for instance, is around 1000 cartons per acre. Due to the freeze issues, the average right now is 300-400 cartons per acre. We forecasted the desert lettuce deal to be strong for the rest of the season, and we continue to feel that way. In fact, the shortage and high markets could conceivably carry over into the Huron/Bakersfield deal in April.

BROCCOLI–stonger market on bunch 14s, 18s, and crowns. The cold temperatures really has slowed down growth and production, and the shippers are taking advantage of that and pushing their prices upward, in spite of supplies in Texas, Florida, and other areas of the country. But, as the desert warms, we should see the market drift downward, possibly as early as next week.

CAULIFLOWER–again, the cold temperatures have slowed down supplies, and prices are on the rise. We may see the shippers push fob $25.00, and higher, this week, but that will probably kill business and the market. Like broccoli, we could see the flower market start to come down by this time next week. We don’t recommend buying too heavily this week.

LEAF ITEMS–romaine continues to be OFF THE CHARTS, with fob prices in the $45.00 range. Hearts, too, are selling for $40.00+.  Yields continue to be WAY down, due to the freeze problems, and we aren’t sure when things will correct themselves. You need to understand that the “young’ leaf plants, which are highly vulnerable to weather, because of their lack of protection, got hit the hardest. A LOT of product was lost, and will continue for another month. Not just romaine, but green, red, and boston are ALL high in price, although not as much as romaine.

CELERY–after prices falling nearly in half of where they were, things have settled down. Settled down is a relative term, because fob prices currently are still in the low $20.00’s for all sizes. So after you add sleeving and freight to the East coast, prices are still $30.00 and higher delivered for all sizes. We see the market steady all week.

STRAWBERRIES–Oxnard is starting to pick up more volume, as we head into March, but prices certainly can’t compete with the cheap markets in Florida. If you buy out of California, you can expect excellent quality, with big, hard, high-sugar fruit. Driscoll is $2-4.00/box higher than the general market, and they are actually pro rating slightly.

ASPARAGUS–even though the weather is warming up in the desert, the past week or so has been cold, and supplies haven’t been coming on, and prices are climbing. We see things improving by the end of this week and into next, with prices starting to slip by this time next week.

Ed Brem

ed@producewest.com

Even though the freeze ht the desert growing regions 2 weeks ago, the problems continue, and WILL continue for several more weeks. For instance, to give you an idea how much the iceberg lettuce crop was hurt, there was more BROCCOLI harvested last week than iceberg lettuce! And it’s not just lettuce. Romaine, green leaf, red leaf, green onions, endive, and escarole are still going through shortages and quality problems, and that is leading to 30-40% crop loss EVERY day, as product is harvested. We could see problems for the entire desert deal, which runs through the month of March.

Long range weather in the desert growing areas show temperatures in the mid to upper 60s  for highs, and lows in the upper 40s, both BELOW normal for this time of year. Oxnard, where the celery and strawberries are coming from, are cool, as well, with some rain forecasted for the end of this week. This will slow down growth and production.

Trucks are available, and rates seem to have bottomed out, due to high fuel costs.

LETTUCE–We would have to go back to the 1950’s to find the low volume of lettuce we are seeing. We can’t say enough how much damage was done from the freeze. Shippers continue to pack 30s and “standard” 24s, as they have to trim off 5-7 leaves deep to get past the problems. Keep in mind that since the shippers are packing 30s, they have to go through more lettuce and get farther and farther ahead of schedule, which means gaps. That is why we fear the market will remain this active for another month. FOB prices are low to mid $30.00 range. Oh, and they don’t want to hear about any quality issues!

BROCCOLI–good supplies of bunch and crowns due to the fact that there are areas from Salinas to Texas that have broccoli.  This is one of the only ad items that we suggest. Prices are fairly low, and there are some deals out there.

CAULIFLOWER–like broccoli, these two items had been the least effected by the freeze, since there are supplies coming out of multiple areas of the country. Still, with below normal temperatures forecasted for this week, we could see a supply shortage and stronger market by this weekend.

LEAF ITEMS–romaine, in particular, continue to have problems. Shippers continue to sell “with problems” and don’t want to hear about it on the receiving end, even while having NO problem asking $35-38.00 FOB for it. Romaine hearts, while also extremely high priced, have the luxury of getting most of the problems trimmed off, and you end up with a fairly decent product. Green and red leaf are still very short in supply, and the markets are in the mid-$20.00’s, looking to stay there.

CELERY–this market is finally coming off its highs of $35-40.00 fob. Prices are down $10.00/box, or so, and may settle there. Rain is forecasted in Oxnard later this week, which will slow down growth and production.

ASPARAGUS–this is ALMOST back to normal. Shippers had to go in and basically strip ALL product and start over. But, with cooler weather predicted this week, supplies will slow down, and keep the market strong. Easter is at the end of April this year, so the desert won’t be a factor. Supplies will have to come out of Salinas and the Stockton/Lodi areas.

Ed Brem

ed@producewest.com

When a situation happens such as the one we are currently going through, with the freeze this past week, two things usually happen. First, product is lost from damage done by the freeze, so supplies are drastically reduced and quality effected. Secondly, the markets take off. This is exactly what is happening. We don’t even know where to start, except to say that quality of lettuce, romaine, leaf, celery, cauliflower, asparagus, and various other mix items are SO bad that many of the shippers are selling “as is”, and don’t want to hear about any problems at the receiving end. On top of that, they are demanding prices that are off the charts. In other words, we/you are paying top dollar for lousy quality, and the shippers don’t want to hear about any problems! That is why we recommended last week to our customers to pull ALL ads until further notice. Why advertise HIGH PRICED, POOR QUALITY product?

Due to high markets and receivers backing off, trucks are available to all areas of the country, at flexible rates.

Weather looks good in the growing regions of Coachella Valley and Yuma for the next 10 days. Oxnard, where celery and strawberries are coming from, is due for rain starting mid-week and into next week. This WON’T help the already crazy celery market.

LETTUCE–so much product has to be trimmed off of the heads(5-7 leaves!), that there are mostly 30 size heads being packed, or a “standard” 24. Since it is very rare that standards are even packed, so we will describe what they are. They are a “30” size head, packed in a smaller carton, so you get 24 heads in a box. Still, they are a 30 size, so be aware of that. The market on ALL lettuce is upwards of $32-35.00 FOB, which is right at $40.00, or higher, delivered to east coast markets. And, again, the quality is poor and light weight. But, that is ALL there is out there, so expect it.

BROCCOLI–this market is hanging in there because there is broccoli available in Texas, Carolinas, and other areas of the country. The cold weather we experienced has caused some purple cast, and there aren’t many crowns around. There is a $3-5.00/box spread between bunch and crowns, as a result.

CAULIFLOWER–strong market here. Supplies had come to an abrupt halt due to the freeze, but demand is light, so the market, while high enough, isn’t as high compared to many other items out there. We expect this market to remain strong all week.

LEAF ITEMS–CRAZY markets, especially on romaine. There was so much product lost from the freeze, that carton romaine and romaine hearts, for instance, are hovering around $35 fob($40-45.00 in the East). Green, red, and boston are all $30-35.00 in the East. We don’t see the market for any of these items going down for several more weeks. Too much product lost.

CELERY–When will people stop buying celery!?!?! The market for all sizes is around $40.00 FOB, which makes it close to $50.00 delivered in the East!! On top of that, the quality is poor, with burned tops and balled down stalks

ASPARAGUS–the freeze really put the halt to asparagus. SO much product was lost last week, that the shippers basically went out and stripped their fields and are starting all over. Even though the weather is warming up, it takes time to fill the pipe lines. Orders are pro rated, and the market is high.

Ed Brem

ed@producewest.com

In terms such as “catastrophic”, “record breaking”, “unparalleled” , the freeze that hit the desert growing regions of Coachella Valley, Imperial Valley, Yuma, Phoenix, and Nogales, this past week and weekend is having disastrous(we’ll use our OWN adjective here!) consequences.

Temperatures got down to the low 20s for 8-12 hours several nights and this extended freeze time can, and did, wipe out vegetables, fruits, and just about any other plant exposed. Shippers are still assessing the damage, but it is safe to say that these effects will be felt for the next MONTH, at least. We will pass on any, and all information as it becomes available. This freeze is extremely unusual for this time of year. Usually, we don’t even have to worry about freezing when February comes. As far as ads are concerned, shippers are pulling ALL ads, using “act of God” clauses. Ads are the LEAST of our problems. We just want to get our orders covered!

LETTUCE–the freeze hurt the head lettuce so bad, that shippers are trimming down 6-8 leaves just to find something that is useable! T&A, for instance, said that they will be packing 90% 30 size lettuce all this week, just to have something to sell. The market, while not truly established ad this writing will be somewhere in the $25-30.00 fob range this week. And, again, quality will be a big issue. Most shippers are selling “as is”, and will NOT accept any inspections that show freeze damage defects.

BROCCOLI–lots of quality issues. Purple cast, discoloration, cat face. The market isn’t too terrible, but there could be VERY FEW crowns available in the coming weeks.

CAULIFLOWER–lots of damage here, as well. Yellowing discoloration are wide spread, and shippers are throwing away upwards of 50% of what is in the field. This market will continue to climb daily this week.

LEAF ITEMS–ALL leaf items hit hard, especially romaine. The freeze has caused extensive blister and peel, going 5-7 leaves DEEP into the head. Expect red, green, boston, and romaine to go WELL into the $20-25+ range this week, and into next.

CELERY–the desert, which is a major supplier of celery during the Winter months also got hit hard. The market for all size celery is in the range of $35-40 FOB today, and look for the shippers to continue to push their prices until people just stop buying.

ASPARAGUS–probably hit the hardest. If you have ever seen an asparagus field, you see that there is NO protection from the elements. Lettuce, broccoli, cauliflower, can have some protection with leaves, but asparagus has nothing. The crop is basically wiped out for a week, at least. The good news is that warm days bring on asparagus rapidly, but the current damage is done.

STRAWBERRIES–Florida continues to supply the East coast with their needs, and there is little demand for California berries for any destination east of the Mississippi River. If you ARE purchasing Oxnard fruit, the quality is very nice, with big, hard, tasty fruit.

Ed Brem

ed@producewest.com

2/4/11
SPECIAL BULLETIN

As you are probably aware, an arctic cold blast has hit the desert growing regions of Coachella Valley, Imperial Valley, Yuma, and Phoenix areas the past 3 days. Lows have dipped into the low 20s for 6-8 hours each night, and this is having devastating effects on the vegetable crops. We have sent pictures out to illustrate how bad things are. Shippers are trying to harvest what they can, but can only get into the fields until noon, or even later, then have to quit by 4-5 in the afternoon. Product won’t grow, and what is out there is getting seriously damaged. Markets are going crazy, and shippers are canceling ALL ads until further notice. However, the worst part is that the quality is not just a short term situation. Product will be seriously effected for another 3-4 weeks, at least, and shippers are selling product with their “disclaimer”, which states that “freeze damage is not scorable”. So, when a Federal inspection is called for, any defect that is freeze effected, can NOT be scored. In other words, they are selling their product AS IS!
Getting this kind of a freeze is commonplace in December or early January, but  VERY rare for February. Things are supposed to warm up starting this weekend, but the damage is done. The shippers will do their very best to trim off the freeze effected product, but we ask that you be understanding and expect the WORST. We will continue to send pictures and other information as it becomes available so you can keep your customers informed.

Ed Brem
Produce West