This week is starting out much different from last week.  Weather has improved tremendously over the past week and a half, with days in the upper 70s expected all week in the desert.  Product is still trying to recover from the damage done in early January, but supply has improved on many of the items.  East coast is still getting buried in winter storms, keeping demand lower than normal and contributing to the flat overall market.  Valentines Day is approaching and it is time to start thinking about berries.  We are keeping our fingers crossed that the weather stays warm with little or no rain.

Long range weather shows continually warm temperatures in the desert and very little freeze.  Oxnard temperatures will be cool to mild and no rain is in the forecast for the next 10 days.

Trucks are plentiful and rates are sliding down to the upper 4000 range to the east coast.  Fuel prices are still high but truck demand is down.

LETTUCE — Market prices are nearly half of what they were at the start of last week.  At the harvest level we are seeing lessened degrees of blister peel and quality seems to be getting back to normal for late January and early February.  The air borne version of scholerotinia continues to affect lettuce fields keeping yields lower than normal.  On a positive note, the warmer weather is lessening the disease and head weights are improving as well.

BROCCOLI — Night and day difference this week compared to last week.   Just as we stated in last weeks newsletter, Florida product put pressure on west coast to lower prices, and our warmer weather improved yields.  Good supply and quality now available and shippers are looking to move product.  There should be plenty of supply into the next few weeks.

CAULIFLOWER– Much like broccoli, cauliflower dropped in price as volume increased last week.  Product is very nice and was much less affected by the extreme cold conditions last month.  Demand is just not there and we don’t expect prices to substantially rise any time soon.

LEAF ITEMS — Romaine is one of the few items that had been hit exceptionally hard by desert cold and disease.  Harvesters are still leaving 20 – 30% of product in the field due to cosmetic defects.  Product that is being shipped has some problems, however these problem are industry wide and everyone is in the same boat.  Retails remain high this week as volume slowly recovers.  We may see improvements in supply toward the end of this week.

CELERY — still a very active market.  Larger sized celery is harder to come by.  Most of this has been brought about by colder weather in the Oxnard areas.  High amounts of rain over the past few weeks have caused the celery to crack due to the plants taking in too much water and swelling.  The cool weather is keeping product from sizing up, although conditions are improving daily.

STRAWBERRIES — even though we had rain in Oxnard over the weekend, there is so much cheap product coming out of Florida that the market has been virtually unaffected by west coast rain.  Prices coming out of Florida are half of what we are seeing out west which has taken a bite out of west coast demand.  As we near Valentines Day we are hoping that the weather remains desirable.

Ed Brem

www.producewest.com

Like the total opposite of two weeks ago, warmer weather in the desert growing regions is now going to bring on more product, and markets will start to come down. Two weeks ago, there was a freeze in the desert, product stopped growing, and the markets skyrocketed. Now, we have had several nice days, with more coming, and product is coming on. The markets on several major items, such as broccoli, head lettuce, and cauliflower have already peaked out, and are headed for a fall. It’s important that you watch the market, don’t buy too heavily, and buy with market protection.

Long range weather in the desert shows mid to high 70s in the day, above freezing at night. No rain. That is all GOOD news.

Trucks are plentiful, and rates are about on the floor. Truckers are balking at going too low due to high diesel costs across the country.

LETTUCE–after peaking out in the mid $20s fob last week, shippers are desperately trying to hold on to their market today. We don’t see them able to do that. Already, there is a wide price range out there, and we expect a steady price slide downward all week. Quality is improving, as shippers are trimming off the freeze-affected product. There is also an “air borne” disease that is sweeping the desert growing regions that could have “potentially” devastating effects on supplies for the next several weeks. We’ll see what happens with that. Usually, these things are more bark than bite.

BROCCOLI–this market also peaked out last week, with crowns pushing mid-$20s. Now, with Florida and Texas picking up volume, demand has slowed in California and Arizona, and we are expecting the market to crash. We will be buying cautiously.

CAULIFLOWER–here is another item that spiked last week, and now headed for a fall. Currently, there are deals out there that are nearly HALF of what was quoted last week. However, this market could/should bottom out by mid week, and then possibly bounce back by this time next week.

LEAF ITEMS–still problems with romaine, and freeze effected product. It is a tedious process for the workers to trim off the bad leaves, and it takes time. This means less product harvested and lower yields in the field. That is keeping the market strong, and should be wide ranged in price all week. Red is still scarce and high priced, while green is quite a bit lower.

CELERY–steady market. Prices are still fairly strong, especially with shippers like Dole and T&A. They are quoting as much as $5.00/box more than the general market. Volume continues to come mainly out of Oxnard, however, Yuma is picking up more and more volume every day.

ASPARAGUS–this item is TOTALLY controlled by weather. When it is cold, it comes to a complete standstill. When it warms up, you can almost stand out in the fields and actually watch the grass grow! Most shippers are now packing 28/1# cartons. There should be some deals out there later this week.

STRAWBERRIES–with no rain in sight for the next 10 days, we should see more volume come out of Oxnard and prices should start coming down. Florida, however, dictates demand and business, especially for East coast receiving. Still, most everyone would rather have California fruit this time of year, if there is a choice. Berry size is usually HUGE, sugar is SWEET as candy, and berries are hard as bullets.

Ed Brem

ed@producewest.com

Record freeze in the desert has caused an explosion in market prices.  Since last week prices on certain items have doubled, which will soon send shockwaves to retail prices.  The cold weather has been the main factor, resulting in weak, diseased product that due to its poor condition can’t even make it out of the field.  Smaller factors such as high fuel prices and labor costs are also contributing to the high prices.  Shippers are only covering contracts on certain items and pro rating the remaining orders, it is real ugly out here.

There is good news however; long range weather shows a warming trend in the desert that began this past weekend and is expected continue into next week, with temperatures in the low 70s and even creeping up into the 80s.

Truck rates that came off over the past few weeks are holding steady this week while they wait for business that may never come.  As we stated before, fuel prices are high for this time of year and truckers are crying the blues.

LETTUCE — Quality is terrible, and availability is spotty.  Shippers are all telling us that the quality is just not there, and the product has not recovered from the freeze damage.  The main problem is a disease called sclerotinia, which thrives in cold weather and wet soils.  It chokes the plant at the root and prevents normal growth. Some shippers are quoting acceptance final, which tells us this surely is an industry wide issue.  Weather is warming but the damage is done, and although harvest crews are doing their best to shed leaves of affected heads, much of the product is diseased and must be plowed under.  The weather has improved since last week, but we do not expect quality and availability to significantly improve until next week at the earliest.  Shippers do not want to hear about problems because there is nothing else out there to sell.

BROCCOLI — Cold and wet weather does not affect broccoli as extensively as leaf items, but it still has trouble developing in the colder weather.  The result has been a decrease in volume over the past week.  Some shippers have bunch broccoli but no crowns, some have no broccoli material at all. Quality is ok with no major problems to speak of, but getting product is the major concern.  Warmer weather forecasted will bring on more product by the end of this week.

CAULIFLOWER — Very similar conditions to broccoli.  Product did not develop in the cold weather and is now trying to catch up.  Cauliflower will be the first of these items to show volume improvements and we should see better numbers by the end of this week.

LEAF ITEMS — Many of the same growth issues as lettuce, however, leaf was not a victim of disease.  The cold weather simply stunted normal growth patterns.  Romaine has been the most affected by the cold and current market prices reflect this.  There has been some normal desert blister and peel on all the leaf items which has not helped matters, but like broccoli, leaf supplies will hopefully recover by the end of this week.

CELERY — Lighter numbers than normal, the result of the heavy Oxnard rains a few weeks ago.  There is smaller sized celery currently available, but we are hoping that product begins to size up by later next week.  Knuckle cracking has been an issue, which is exceptionally challenging because it cannot be detected until product in the box and/or in transit.  Although we are seemingly out of the water, expect retails to remain high for the time being.

STRAWBERRIES — supplies are still picking up in the desert, and prices are slowly coming down. Florida is getting some nice weather and seems to be keeping up with demand for the time being. Western berries will need to drop their prices substantially to compete with Florida, so we will keep an eye on it.

Ed Brem

www.producewest.com

Even though the weather in the desert is starting to warm up, the past week to ten days has been cold in the desert growing regions, and has now started to create gaps in production on just about all commodities, such as lettuce, broccoli, cauliflower, romaine, and various other mix items. Not just a gap in supplies, but quality issues. The freeze is showing up in epidermal blister and peel on lettuce, leaf, and romaine, and discoloration on broccoli, cauliflower, and other items. These issues will continue to show up for weeks to come.

Long range weather shows no rain in the desert growing areas for the next 10 days, and temperatures in the high 60s to mid 70s. Nights are getting in the low 40s now, instead of the low 30s. That will help.

Trucks are still a bit tight, as they are still trying to get back on track from the holidays. Rates are expected to drift downward during the next few weeks.

LETTUCE–supplies had been 1-2 weeks AHEAD of schedule, but with the cold weather hitting, we are now showing a GAP, and shippers are pushing prices upward as quickly as they can. It is difficult to say where the markets will go this week, but suffice it to say, the shippers WON’T be bashful about raising their prices DAILY. And, not just 50 cents here, or a dollar there. We could see the market up $5-6.00 later this week, over current quotes today, which are pushing $20 delivered to the East coast. Quality is another issue. Expect to see epidermal blister and peel on outside wrapper leaves. Shippers are quoting WITH DEFECTS, so it is not scored with inspections.

BROCCOLI–very few crowns around. The cold weather has really slowed growth of crowns, as well as bunch. Prices going up daily, and could hit $22-25.00 FOB this week. Quality-wise, expect purpling on the beads.

CAULIFLOWER–cold weather, as we have mentioned, REALLY effect cauliflower. Quality and supplies. We should easily see $20 FOB this week, and possibly higher. Again, quality is affected, as well, with discoloration.

LEAF ITEMS–romaine, in particular, is being hit by the cold. Blister and peel on the outer leaves are EVERYWHERE. Most shippers are trimming off as much as they can, but it IS there. Again, it is NOT scoreable with Federal inspections. Not just peel, but fringe burn on the tops of the leaves are evident.

CELERY–strong demand and high prices the large size 18s, 24s, and now 30s. Prices are up, and with the high freight rates, we are seeing $25.00 easily for delivered prices on the East coast. Quality is mostly okay, although still mud and dirt in the box and sleeves, due to the past rains.

STRAWBERRIES–supplies picking up a bit in the desert, and prices are drifting down. Florida is experiencing some nice weather, although they are forecasted for some colder weather later this week. That will slow down supplies, firm prices, and put more pressure on western berries.

Ed Brem

ed@producewest.com

This is the time of year we begin to see freeze in the desert.  While Yuma valley areas don’t necessarily see freezing temps, areas such as Coachella and Dome Valley are seeing frost damage as temperatures go below freezing for multiple hours a night.  Nothing good comes out of these desert freezes.  Damage is seen first in items such as iceberg and leaf lettuce, causing blister, peel, discoloration, etc. Broccoli and cauliflower, although more hearty begin to show discoloration as well.  Growth comes to a standstill, adding to the problems.  All of these factors put together result in a spike in market prices as growth and harvest come to  standstill. Shippers wait for opportunities like this to push their prices upward.  As you can see, nothing good comes from freezing temperatures. Trucks are still a little disorganized from the holidays and were scarce early this week, but things should be getting back to normal by later this week with rates settling back down.  Long range weather shows steady cold temperatures for the next 10 days in designated areas.

LETTUCE — the freeze in the desert this past week is definitely effecting quality of head lettuce. While most shippers are doing a pretty good job of trimming of the effected leaves, which are mostly the outer leaves, it is important to know that there ARE some problems, and that EVERYONE has them, so you need to let your customers know that. The market, which has been on the floor the past few weeks, is poised to go up.

BROCCOLI–we are expecting this market to go up,  especially on crowns. Right now, there is about a $2-3.00/box spread. We anticipate the overall market to go up, starting this weekend. Quality seems to be holding up, even with the freeze.

CAULIFLOWER–this is another market in the verge of going up. It doesn’t take much for the cauliflower market to go up, a change in temperatures either way is usually enough to do it. The cold snap in the desert will do it this time.

LEAF ITEMS–currently, markets holding steady, but prices look to get stronger. We expect some product to be lost with the freeze, especially romaine, which is more susceptible to cold. Blister on the back of the outer leaves, and some fringe burn on the top are the signs of damage. Romaine hearts are not as bad, as the workers trim several leaves off. Side note, escarole is nearly IMPOSSIBLE to find this week.

CELERY–no change in the market. Oxnard still dealing with wet, muddy product in fields, and some slow harvesting issues because of that. The desert has now started in a light way, and will gradually pick volume in the coming weeks.

STRAWBERRIES–light supplies and high prices on west coast fruit. With no rain expected in Oxnard for the next 10 days, there should be supplies available by the end of this week, or first of next week. Right now, there are light supplies available out of Yuma, which are Mexican fruit. Driscoll continues to pro rate 75%, and higher.

Ed Brem

Ready or not, 2010 ends, and 2011 starts this weekend! 2010 certainly brought its share of challenges, most of which were not good. Home foreclosures, construction down, companies going bankrupt, world problems.  Here’s to a BETTER year! On the other hand, if we think of the GOOD things in our lives, most of us are VERY fortunate and blessed.
Weather forecast for the next 10 days in the desert vegetable growing regions, show colder temperatures and an increased chance of freezing. We’ll keep a close eye on this, as this only spells out BAD. Freezing temperatures slows down growth, causes harvest delays, and, more than anything, quality issues. Again, we will keep you posted.
Trucks, while a bit scarce due to the Christmas and New Year holidays, are not causing too much trouble because business is slow.

LETTUCE–little demand and market on the floor. This could all turn around starting this weekend, as freezing temperatures are forecasted for the desert growing regions.

BROCCOLI–good supplies of bunch 14s, 18s, and crowns. Supplies are coming out of 5 different areas, ranging from Salinas to Phoenix. With that, the market is fairly wide ranged, too. For instance, there is as much as a $5.00/box SPREAD on broccoli crowns, depending upon the area and label.

CAULIFLOWER–if you need cauliflower, buy NOW. The market is at the bottom, and with cold temperatures coming in , it can only do ONE thing, and that is GO UP. We could see the market turn as early as this weekend.

LEAF ITEMS–good supplies of red, green, and romaine, and prices are reasonable. These are other items that will go up in price, depending upon how cold it gets. The reaction time may take a bit longer, with prices not reacting until next week at this time.

CELERY–the Oxnard growing regions really got blasted with rain this past week, with as much as 10-12 INCHES. Harvest trucks are having a real battle getting in and out of the fields, and there is a LOT of mud, especially with sleeve celery. There is just NO WAY to keep that out  of the bag, so you need to expect that. The market is fairly strong as a result of the slow go in the fields. More rain is expected off and on all week in the growing areas of Oxnard and Santa Maria.

STRAWBERRIES–Florida looks like they are about ready to get back to normal, weather-wise, although they are expecting another freeze tonight. After that, things look good. There is still fruit coming out of the West, although the fruit is actually Mexican, and loads in Yuma, Ariz. Quality is fairly good, but with the market around $25 FOB, growers are less discreet when it comes to putting quality fruit in the box.

Ed Brem
ed@producewest.com

As each of us gets caught up in the holiday rat race of running around for last minute gifts and needs this time of year, we need to step back and think of the REASON for the season. The birth of Jesus. The BEST time of the year! We at Produce West hope you ALL have a merry Christmas and a wonderful, SAFE new year!

A BIG story out west in California, is the weather. Mother Nature attacked with a VENGEANCE this weekend. 5-10 inches of rain fell in many areas of California over the weekend, while there are reports of 6-10 FEET of snow in the Sierras. Good for the snow pack, but there is flooding and mud slides reported throughout the state. And MORE to come, as we are forecasted for rain ALL week. The GOOD news is that there is very little rain in the desert growing regions of Imperial Valley, Coachella Valley, California, and Yuma, Arizona.

Trucks are abundant and rates flexible. With Christmas and New Year’s falling on the weekend this year, we shouldn’t have too much of the problems with trucks as when Christmas and New Years falls in the middle of the week. Drivers will want to get home, to be sure, but we may avoid the shortages that come during this time of year.

Long range weather in the desert growing regions show rain showers for tomorrow and Wednesday, then clear after that. No freeze.

LETTUCE–there is just TOO much lettuce out there. The market has basically hit rock bottom, and some shippers are sending to terminal markets, if they can’t sell it fob. There are quite a few ads being set up for the next 2 weeks, with hopes of increasing the movement. We don’t see the market going up this week, at least.

BROCCOLI–after the shippers ran this market upwards of $30 FOB the past 2 weeks, ads are over, and the market is coming back to reality. Still, prices are high, but down considerably from that $30 tag. We should see this market continue to drift down, bottoming out by this weekend, then a chance of it going back up next week.

CAULIFLOWER –like broccoli, prices were pushed to high, now the shippers have to drop their prices fast. When you get prices up to those levels, and it starts coming down, it isn’t like it drops a dollar at a time. It’s more like $5-10.00 at a crack. Again, we we see this market bottoming out by this weekend, then likely firming back up next week.

LEAF ITEMS–romaine is coming down, while red and green leaf are steady. We don’t see these markets changing too much this week, and even into next.

CELERY–wet fields in Oxnard (5-6 inches over the weekend) have really slowed down growth and harvesting. Fortunately, the Christmas business is done, and there is little demand. Unfortunately, we had expected the celery market to drop after the Christmas push, but now prices are staying firm, with the lack of supplies.

STRAWBERRIES–with all of the rain we got in the berry country over the weekend (Oxnard, too), and more to come ALL week, the only place you can get western berries is out of Yuma, and those are Mexican berries. Fortunately, Florida is getting back to normal, after the cold weather they got, so that should take pressure off demand for western fruit.

Ed Brem

ed@producewest.com

Still difficult to believe, but 2010 is nearly done. It seems like summer just finished, let alone, Fall, and Winter is right around the corner. The first Christmas business will be going out as early as this weekend to East coast points, and then hitting it hard next week.

Long range weather actually shows warmer weather in the desert growing regions, and little or no freezing. We need to keep that going. Last week’s freeze was minor, but there was some damage done, in the form of blister, peel, and discoloration on various items, and a drop in yields.

Trucks are abundant this week, and rates are dropping. They should continue to come down, this week, and then should firm for next week’s Christmas demand.

LETTUCE–the freeze last week hurt some supplies, as well as created some minor problems with quality. Most of the shippers are doing a good job trimming out the frost damage, but there IS some, although very minor. The market has firmed up a bit since last week’s fall, now that retails are changed. We see a steady situation all week.

BROCCOLI–there is just NO broccoli around, bunch OR crowns. People are scrambling to get orders covered out of California, Arizona, Mexico, Virginia, Georgia. Wherever. The market is crazy, with bunch close to $20 fob, and crowns $22-25 fob. There are some ads out there for Christmas, but supplies will be limited.

CAULIFLOWER–name your price and you can get it. We have heard prices of $30-35.00 fob, and buyers not batting an eye. The processors NEED cauliflower, and any product put in cartons is being sold at ANY price. This has GOT to come to an end, but don’t expect it this week, even with higher retails.

LEAF ITEMS–quite a wide range in price on red, green, and romaine, with as much as a $5-6.00/box SPREAD, depending upon the area and shipper. These are items you need to shop around a bit, as it will be worth it.

CELERY–stronger market on the larger size 18s and 24s, while 30s and 36s continue to stay flat. But, this coming weekend and into next week is the 2nd biggest put for celery, behind Thanksgiving. so we should see the market pick up in price. We don’t see anything crazy, though.

STRAWBERRIES–Driscoll has pushed their fob price to $30.00. You would think that would kill demand Orders keep coming in, even if they are light. We thought business would die at $20-22.00, but hasn’t. Once Florida gets going in the next 2 weeks, it will definitely have an effect on California’s business. For now, California is the only game in town, and the shippers know it.

Ed Brem

ed@producewest.com

Hopefully this isn’t a prelude to December’s weather outlook, but the next few days is supposed to be below normal temperatures, with a touch of freeze in the desert growing areas. As we all know, December weather can create a real disaster with regards to quality and supplies of various veg items, not the least of which are lettuce, romaine, leaf, cauliflower, broccoli, green onions, and other assorted items that are susceptible to freeze damage. Not only quality, but markets can really take spikes upward, depending upon the damage and delay in growth and harvesting that happens.
Trucks are getting back to normal after the Thanksgiving holiday weekend, and rates should start to settle back down.
Long range weather in the desert growing regions show below freezing at nights for the next 2 days, then warming to above freezing. Daytime highs should be in the low 70s.

LETTUCE–market coming off after the shippers ran prices up the past 2 weeks. Supplies aren’t  overly heavy, so its more a factor that retails are pushed up, and that has slowed the demand. Cold weather may slow production this week, and firm up the market.

BROCCOLI–cold temps in Salinas and Santa Maria have slowed down growth and production of bunch and crowns. The desert isn’t getting going as fast as we had hoped for, either. This is keeping prices strong, and we see it that way this entire week.

CAULIFLOWER–in a word, THERE IS NO CAULIFLOWER!  Again, the past few weeks of cold has slowed growth and harvesting to a standstill. You order 4 pallets of cauliflower, and you get one. You order 6 pallets, and you get one. You order 10, and you get one. Notice the pattern? The market is closing in on $30.00 fob, and will keep climbing, until folks stop buying . Basically, the shippers can ask for any price they want, and it doesn’t look to get better anytime soon. We need warmer temperatures.

LEAF ITEMS–strong market on red leaf, boston, and green leaf. Romaine is firm with most shippers, but there are some deals out there. With the cold weather coming in, we will see some damage done, with romaine, in particular. Just how much damage remains to be seen. Expect the markets to remain active on all leaf items if that happens.

CELERY–after Thanksgiving, there is NO business. Even the “preferred” labels are showing sluggish sales and lowering to rock bottom prices. The freight cost is about the only thing keeping the delivered prices up. Hearts, however, are still holding firm.

STRAWBERRIES–With the cold weather, prices look to go up AGAIN. Driscoll is threatening to go up even higher than where they are now. We could see $30 delivered for a box of strawberries on the East coast. The shippers will just keep pushing up prices until people scream “UNCLE”.

Ed Brem
ed@producewest.com

First of all, we at Produce West, would like to wish you all a WONDERFUL THANKSGIVING! Time to think about what we DO have, instead of what we DON’T have. And give thanks.

As usual, its like shutting off a faucet. The past 2 weeks were at a torrid pace. Today, either customers have TOO much product, or not enough. Too much, in most cases. Markets that had been pushed to the ceiling, are starting to back off, except items such as cauliflower and broccoli. Cool, wet weather is certainly slowing down growth and production on those items.
Long range weather in Salinas shows rain for a few days, then dry, but, below normal temperatures. The desert shows seasonal cool nights, and days in the high 60s to low 70s.
Trucks are available today and tomorrow, with most truckers trying to get back for Thanksgiving. There probably won’t be many around this weekend.

LETTUCE–this market could be on the verge of falling hard. After a big run up the past 2 weeks, with prices hitting $24 FOB, things are backing off. Retails are raised to offset the price hikes, and now business is backing off. Shippers don’t like to drop their prices on a Monday, because they will have to drop their prices from the weekend. Tomorrow, we see prices dropping. We are loading just about all of our lettuce needs in the desert.

BROCCOLI–even though demand has fallen, as Thanksgiving needs are covered, supplies are still light, especially for crowns. This market should start to come off, just not very rapidly. Cool, wet weather is keeping supplies light.

CAULIFLOWER–a REAL shortage here, and we don’t seek much improvement for another week to 10 days, AT LEAST. There is just NO flower around, and even if you do get any, its a pallet here and a pallet there. Prices are basically what the shippers can ask. We have heard $25 fob, and that could be a bargain.

LEAF ITEMS–we believe red, green, and romaine, will  ALL start to drift downward in price, even if the shippers don’t think so, so don’t order to heavily. Again, demand isn’t there, due to high retail prices. There is is some product available in Salinas, but we feel the best quality is in the desert now.

CELERY–the faucet has been turned off. The market never got going, except for preferred labels, such as Dole and T&A. But, even those shippers are looking for business today. We don’t see any hope for celery for quite a while. Christmas business may come and go without  a hiccup.

STRAWBERRIES–cool, wet weather in Salinas/Watsonville has finished off the season. Oxnard is going, but in a light way. Driscoll is continuing to pro rate their orders and holding firm their prices. Quality is a hit a miss project. Some arrive in beautiful condition, while others show 30% defects. Either way, don’t expect much in the way of quality, but DO expect to pay big money.

Ed Brem
ed@producewest.com