Cool Weather

Now that spring is in full bloom we have been waiting for the warmer weather that is normal this time of year, however, it still feels like winter for most of the west coast.  National news claims this has been the warmest year on record, but so far we are below average in the Salinas and San Joaquin valleys.  Salinas has been hit very hard with rain and overall quality has suffered.  With more rain and cold weather forecasted this week, we expect more of the same issues we faced last week.

Truck rates are through the roof, averaging in the mid to upper 6 thousands.   Diesel fuel prices have been well into the mid 3 dollar range, giving truckers more ammunition to spike up rates.  Truck emission regulations that went into effect a few months ago are still weighing heavy on truckers, new engine parts can be faulty, resulting in more breakdowns than we are used to.  Our hope is that the bugs will eventually be worked out and things will be back to normal.

 

LETTUCE — cooler weather has hit the Salinas lettuce crop pretty hard.  Supplies are down and shippers don’t have ample supply just yet.  Russet spotting has been a prevalent issue, but crews are catching the problems in the field before they lead to bigger problems.  We are still seeing some damage from the heavy rains we received a few weeks ago, but issues are becoming fewer and quality is improving.  As the weather warms in the coming weeks, supply will improve.

 

BROCCOLI — We have been seeing this item tighten up over the past week and a half.  Usually broccoli is the one of the first plants to be affected by the cooler temperatures, resulting in slower growth and purpling. Although numbers are down, quality is good, and we have seen very few quality problems these past few weeks.  We have plenty of product broccoli in the field, but little to none in the coolers and we are still a week or two behind normal development stages for this time of year. Get your broccoli orders in early if possible.

 

CAULIFLOWER — same situation here as with broccoli, cooler weather has slowed growth, resulting in fewer numbers industry wide.  Quality was been good, no sun damage for obvious reasons.  We are in the middle of a planting gap for both broccoli and cauliflower and it will continue into next week.  After next week we will see and improvement in supply.

 

LEAF ITEMS — Plenty of red leaf and romaine, green leaf is a little tighter.  Most quality problems that had derived from the heavy rains have been cleaned up and we are back to normal product.

 

CELERY — The good news is there is little or no seeder problems to speak of.  The bad news is product is getting much tighter.  It will be evident later this week and we could see the market jump by a few dollars. Sizes are more balanced than they had been in the past few weeks but supply is drying up due to the planting gaps caused by the heavy rains a few weeks ago.

 

STRAWBERRIES — Still very tight, and shorter supply is expected towards the end of this week.  With rain in the forecast early this week, we could see a significant impact on the berry crop.  Currently there are few quality issues and the berries are on the larger size, but if we get rain this week, the game could change completely. Get your orders in asap.

 

ASPARAGUS — Product is tight because of the cooler weather.  Quality has been ok, very few issues.  They are leaning more towards the smaller sizes than before.  It will be a while before we can dig our way out of the current planting gaps, and if weather doesn’t improve, we could see the market shoot up the the high dollar range.

 

Ed Brem

Produce West Inc.

www.producewest.com

ed@producewest.com

Stronger Markets

Unusually cool weather in California has really slowed growth and harvesting of several items that are trying to come on. Head lettuce, green leaf, cauliflower, celery, strawberries, and various other items are just not coming, and the stronger markets are reflecting that.

Long range weather in Central California show continued cool weather, with a chance of rain today, but clear after that. Our rain should be just about totally done now until fall. That is under normal weather patterns. However, this year has been ANYTHING but normal.

Trucks have been a bit scarce these past 2 weeks, going in to Mother’s Day. With Memorial Day business scheduled to start pulling at the end of next week, expect things to get tighter and more expensive.

 

LETTUCE–even though May is the biggest volume month for lettuce of the year, supplies have been affected by the off and on rains and cool temperatures. Due to this, right now we are in a bit of a gap, and the market is VERY active, with prices getting near $18-20 fob. There are quite a few ads out there, so demand is solid.

 

BROCCOLI–good supplies and market for bunch 14s and 18s. Crowns, while still available and currently priced right, look to lighten up in supplies by the end of this week, with a bit of a gap going into next week. Prices should strengthen.

 

CAULIFLOWER–cooler temperatures continue to keep supplies light, and market very strong. We NEED warmer days to bring on supplies. The flower is out there, it just needs a PUSH

 

LEAF ITEMS–still plenty of romaine and red leaf, but green leaf still short, and nearly double the price of red leaf. Romaine is a good one to advertise.

 

CELERY–still a huge price gap between Dole, T&A, and the rest of the shippers, with as much as a $5-6.00/box spread in price. These 2 shippers need a reality check, but as long as their customers don’t mind paying their prices, they will continue to walk the walk. With freight rates continuing to go up, we are seeing a box of celery costing as much as $10.00/box for just freight to the East coast. It WILL get worse as the summer gets closer.

 

STRAWBERRIES–shippers keep talking about supplies picking up, but every week it remains short and orders get pro rated. This is all weather related. Scattered rain, and continued cool temperatures keep hurting supplies. Next week there appears to be a light at the end of the tunnel, with supplies expected to improve considerably.

 

Ed Brem

ed@producewest.com

Spring Finally Comes to California

After near-record rains in California for April, we are FINALLY getting our wonderful spring weather! Rain and cold temperatures have affected nearly all vegetable items coming out of Northern and Central California–strawberries, lettuce, leaf items, cauliflower, and celery. Even though we aren’t out of the woods yet, clear, mild weather is forecasted for the next 10 days, which will help bring on supplies and help improve overall quality. It may take a while, but, by this time next week, we should have better news to report.

Trucks are available, and rates are continuing their slow climb upwards, although with Mother’s Day business done, we won’t see much more of a bump in rates until Memorial Day period, which will be in about 3 weeks.

 

LETTUCE–a wide range in price and quality. We have moved just about 100% of supplies to the Salinas and Santa Maria areas, and will be here until November.  We have been fighting quality for the past few weeks, what with the rain and cold we’ve had. Expect quality to improve, now that our weather has.

 

BROCCOLI–good supplies of bunch 14s and 18s, as well as crowns. However, there are signs that crowns could tighten up starting next week. Some shippers report a gap in crown material starting as early as this weekend. We’ll see.

 

CAULIFLOWER–still tight supplies and crazy market. Shippers all quoting in the low to mid $20s for 12s and 9s. But, be aware. Now that retail prices are adjusting, and our weather starting to improve, we should see supplies pick up and prices drop. You DON’T want to get stuck with high priced cauliflower heading your way.

 

LEAF ITEMS–there seems to be plenty of romaine, but light supplies of red, green, and boston lettuces. Prices of the latter 3 items are $14-16.00 FOB and should hold there this week. We should see improved supplies and weaker markets by this time next week.

 

CELERY–very FIRM market on ALL sizes, especially on the 30s and 36s. With higher freight rates, celery is the main item that suffers. We are now seeing a box of celery costing $8.00-10.00/box JUST for freight to the far East coast. That puts delivered prices of celery in the range of $24-28.00. Hearts are also available, and are expensive, as well.

 

STRAWBERRIES–still a shortage out west for berries. Orders today showing HEAVY pro rates, especially from shippers like Driscoll. Today and tomorrow are the last days for any Mother’s Day business, and with our weather improving, we should see things ease up by the end of this week. There looks to be A LOT of berries coming on by next week.

 

Ed Brem

ed@producewest.

Mother’s Day Business

It’s hard to imagine that we are already looking to the first week in May, and Mother’s Day business! This is a big week for several items, but mainly STRAWBERRIES. And, unfortunately, more rain is forecasted this week, which will keep things messed up this week, to be sure.

Long range weather shows rain showers forecasted for tomorrow and Wednesday, followed by cooler temperatures for the end of the week. California can’t seem to get into a spring pattern.

Trucks continue to be tight for most areas of the country, and rates are going up to levels that we normally see for the Summer. NOT a good sign.

 

LETTUCE–plenty of product around, and prices are fairly wide ranged, with as much as a $4-5.00/box SPREAD on wrap 24s. Supplies are all but finished in Huron, so now we are concentrating on Salinas and Santa Maria. We will be here until October.

 

BROCCOLI–good supplies and attractive prices for bunch 14s and 18s, while crowns are a bit more scarce, and priced $2-3.00/box higher than bunch. Supplies mostly coming out of Salinas and Santa Maria areas, with a few shippers going in Oxnard.

 

CAULIFLOWER–supplies still VERY tight this week, and prices are easily in the low to mid $20’s FOB. With rain and cooler temperatures forecasted for this week, supplies will remain light, and prices strong.

 

LEAF ITEMS–not much change in prices on red, green, boston, and romaine. There are deals out there, depending upon the area and shipper, so shop around. Stay away from Huron. Anything coming out of there has bug issues. Salinas and Santa Maria are the areas to be.

 

CELERY–continued wide range in prices on all sizes, depending upon the shipper, with Dole leading the way. They are basically priced $2-4.00/box MORE than the mostly market.

 

STRAWBERRIES–Mother’s Day business is getting going, and supplies are TIGHT, with pro rates the norm, especially from Driscoll. With rain coming in, it will get WORSE. Hopefully, we will only get a few sprinkles, as these later storms usually don’t have the punch of the winter storms. Still, we will experience cooler temperatures that will keep supplies VERY tight ALL week.

 

Ed Brem

ed@producewest.com

More Rain Forecasted for California

We can’t seem to get into our Spring weather here in “sunny” California. Normally after the first of April, we basically shut off the faucet and won’t get any more measurable rain until October or November. This year has been goofy. We are forecasted for more rain Tuesday and Wednesday of this week, with with a possibility of more for  next week. This continues to mess up the the strawberries, most of all.
Long range weather shows rain scheduled in the Salinas and Oxnard areas for tomorrow and Wednesday, then clearing for the weekend. This also means cooler temperatures.
Trucks are more abundant early this week, after nearly impossible last weekend. Still, rates are continuing their slow climb upward as we get into later Spring.

LETTUCE–Huron is rapidly winding down, and Salinas is starting to pick up some numbers. There is also lettuce available in Santa Maria, and even the desert. With this kind of spread in regions, the market is also wide spread. In fact, there is as much as a $5.00/box SPREAD in the market on wrap 24s. The best lettuce is probably coming out of Salinas.

BROCCOLI–steady prices on bunch and crowns. The overall market is pretty good for the shippers, and they would be happy to keep prices where they are.

CAULIFLOWER–still VERY light supplies on all sizes, and  fob prices are still in the low $20’s. This is mainly due to the cooler temperatures and persistent threats of rain. Retails are now being adjusted at the receiving end, so we should see demand start to drop off towards the end of this week.

LEAF ITEMS–fairly wide range in  prices for red, green, and romaine. Supplies are coming out of the desert, Oxnard, Santa Maria, Huron, and Oxnard. It’s tough to find the best deals, but if you look hard enough, they are there.

CELERY–continued fair demand and steady prices. There are deals out there on the “non preferred” labels, so look around.

STRAWBERRIES–last weekend was a REAL mess. No supplies to speak of, and just about everyone was pro rating orders. ESPECIALLY Driscoll, with pro rates exceeding 75%. This early week isn’t much better, especially with rain coming in tomorrow and the next day. Most receivers are trying to front load product today.

Ed Brem
ed@producewest.com

Spring Has Sprung

After record breaking rainfall totals for March throughout the East, we now see record setting HIGHS. A real swing as April enters its first week. This should help sales at the store level with such items as strawberries, lettuce,  and other Springtime items.
Long range weather in the East shows little or no rain, which is certainly welcome for those areas ravaged by the relentless rain. Long range in the growing areas out West show some rain today, but the rest of the week looks good, with highs getting into the mid 70s, which should help bring on more product.
Trucks are tighter, as more strawberries are being shipped from California. This increase puts more pressure on available rigs, and are allowing truckers to demand for more money. For instance, we are paying around $500/load MORE than we were the past 2-3 weeks.

LETTUCE–rain is falling in Huron, where most of the lettuce is coming from, and is slowing down harvesting. But, no rain is forecasted for the rest of the week, so things should settle back to normal fairly quickly. There ARE a few shippers still going in Yuma, but that deal should be totally finished by next week. The overall market is fairly wide ranged, with as much as a $5.00/box spread, depending upon the shipper, area, and quality.

BROCCOLI–supplies are coming from Salinas to Yuma, and all points in between. With that kind of geographic spread, we are seeing an equal spread in the market. Also, we are seeing more crowns, which is now priced more normal to the bunch/crown ratio.

CAULIFLOWER–still good supplies and low market for both 9s and 12s. Check around for deals in Salinas, Santa Maria, and the desert.

LEAF ITEMS–supplies still coming out of the desert, as well as Huron, Oxnard, and Santa Maria. Like other items listed above, there are deals, depending upon the area and shipper.

CELERY–rain has been falling in Oxnard today, but will clear out later tonight. Still, harvesting has been slowed today, and you should expect to see mud and wet product, especially in the sleeve. The overall market is hanging in pretty firm, with Dole and T&A demanding as much as $5.00/box between them and the mostly market.

STRAWBERRIES–rain has fallen today in Oxnard and Santa Maria, which actually is welcome. There is just TOO much product out here. Oxnard only as another 2-3 weeks for the most part, then we will switch to Santa Maria and Salinas/Watsonville. Marketwise, there continues to be deals out there.

ASPARAGUS–as we enter the first week in April, the desert usually shuts down. But, the weather hasn’t been too warm yet, so they continue to produce. That is fine, since the Stoction/Lodi has had unseasonably cold, wet weather, which has slowed that deal. Since Easter is behind us, there are some deals out there, especially in the desert.

Ed Brem
ed@producewest.com

Transition Time

This is the final week for the majority of product loading in the desert areas. While some shippers will continue to go on various items there for a few more weeks, the major items, such as lettuce, broccoli, cauliflower, leaf, and celery, will move northward. But, with this transitional time comes its share of issues. We will now have lettuce in the Huron, Salinas, Santa Maria, and what is left in the desert. The same goes for broccoli and cauliflower. Trucks, which are already starting to tighten up, will be looking for more money because of the extra miles coming to these new areas. With good action and movement last week on items such as strawberries, asparagus, broccoli crowns, and assorted other items, things have really slowed down, so its time to get to work and PROMOTE!!
Long range weather forecast show a few changes. We are forecasted for some rain this week in Salinas and the rest of central California. It looks like we get some precipitation in the berry country of Oxnard and Santa Maria. We haven’t had any rain for almost a month, so it may cause some problems, depending upon how much we get.
Trucks, as mentioned above, are looking for more money as we get into April. Also, now that we are moving out of the desert and going north,  truckers will be looking for more money there, as well. Also, keep in mind that as we move to Salinas, that adds an additional 7-8 hours to the hauling time.

LETTUCE–we are starting to see a wider range in price as we see more areas kick in. Overall,  the market is a bit stronger early week, and shippers could look for more. But, demand is only fair, so they may hit some resistance. Quality is another factor. As the desert finishes, that lettuce is looking tired. The new areas on Huron and Salinas are starting out with small to medium head size, hard, and some internal problems. VERY typical for transition time.

BROCCOLI–definitely more crowns showing up now. If you recall, the past 3 weeks there has been  a REAL challenge for crowns, with as much as a $5-7.00/box SPREAD. There continues to be an abnormal spread, but not nearly as bad, with only $2-4.00/box range between bunch and crowns. This will narrow even more as crown supplies continue to improve.

CAULIFLOWER–still some good deals on 12s. We anticipate that as our weather turns cooler this week, supplies will lighten, and the market will certainly go up. NOW is the time to jump on the deals.

LEAF ITEMS–supplies coming from around 6 different areas. Yuma, Coachella, Oxnard, Santa Maria, Salinas, and Huron. This is creating a wide range in price for red, green, boston, and romaine, with ALL trending lower.

CELERY–as the desert finishes, the shift for supplies goes almost exclusively to Oxnard. With that,  the overall market is stronger, especially with the “preferred” labels such as Dole, T&A, and Duda. Rain is forecasted in Oxnard later this week, which won’t help harvesting.

STRAWBERRIES–berries out west are still going for SONG. The “perfect storm” has happened, with Florida pumping out volume and California no where to go with their product. However, we are forecasted for rain in Oxnard later this week, which could cut supplies. Shipper will actually WELCOME that.

ASPARAGUS–we got through Easter demand without a scratch. Lots of ads, and supplies were there. Few, if any, pro rates. Nice to see that for a change. Currently, the market is strong, with West coast business still going out today and tomorrow.

Ed Brem
ed@producewest.com

Easter

Besides being a very special time of year for people of Christian faith, this time of year also brings to mind several things. Spring, Easter egg hunts, family picnics and barbecues, longer days in the sun, and BASEBALL. In produce, several things immediately pop up. Asparagus, strawberries, and transitional moves from the desert to Salinas. All in all, and GREAT time of year.
Long range weather in the desert shows highs creeping up to the 90s,  Oxnard shows continued nice Spring weather, with days in the 60s and no rain. Salinas also shows nice days in the 60s, with a chance of rain this time next week.
Trucks are a bit tight this week for Easter pulls, and rates are continuing to slowly climb. Higher diesel prices are also contributing to the higher rates.

LETTUCE–the market is fairly flat, as the desert starts to wind down. Usually when we finish one deal and start another, quality starts to suffer. We are starting to experience some “tired” lettuce in the desert, while the new area of Huron is starting out small and light weight.

BROCCOLI–still a shortage of crown material and prices are high. The desert only has another week or two, and Salinas and Santa Maria are looking to increase supplies. Still, we are looking at light supplies of crowns all of this week, and into next.

CAULIFLOWER–good supplies currently. High retails have been set, and demand has really dropped off. This means prices are falling and there are good deals around. But, you need to take advantage of those deals NOW, because by this time next week, the market will probably be stronger. Supplies are coming out of the desert and Salinas/Santa Maria areas.

LEAF ITEMS–markets for red, green, and romaine are on the floor, and should stay that way for another week, at least. The desert should go through the middle of April, and then we move to Huron, Salinas, and Santa Maria.

CELERY–weaker trend here. Easter is usually a higher demand time for celery, and, while there are a LOT of ads out there, the market is not doing anything special. In fact, other than Dole, prices are lower.

STRAWBERRIES–quality-wise, this is the BEST time of year for California berries. With Easter coming fairly early, there are good supplies coming out of Florida AND California. Unfortunately, Florida is so cheap for Easter, California has no chance of competing. Another 2-3 weeks and Florida will be basically done, and California will be the only game in town. Upcoming supplies look good.

ASPARAGUS–it doesn’t appear there will be any shortage of supplies for Easter. Its a combination of things. First, Easter is early this year, and the desert is in full swing. Secondly, with our economy the way it is, folks aren’t really banging the doors down for “nonessential” items, such as asparagus.

Ed Brem
ed@producewest.com

Easter Around the Corner

2010 is already going by too fast. This past weekend started daylight savings time, Spring starts this weekend, and Easter business kicks in as early as this weekend, too. Like Ferris Bueller said “life moves pretty fast. If you don’t stop to look around, you might miss it'”.
The desert is still the main area for the majority of vegetable supplies, but we are now seeing more broccoli and cauliflower show up in Salinas and Santa Maria. Still, expect to load this week and next for your mixers.
Long range weather in the desert shows highs in the mid to high 80s, lows in the 50s. Oxnard shows high 60s to low 70s, while Salinas is going to be in the 60s, but nights close to freezing. NO RAIN forecasted.
Trucks are available, but they are starting to push for higher rates.

LETTUCE–we are starting to see a real range in price now for wrap and palletized. In fact, there is a much as a $5.00/box spread in price. This usually means the overall market is starting to come down, so we are going to anticipate that. Huron, if you can believe it, is actually going to start later this week. But, overall, we expect to load in the desert this week and next.

BROCCOLI–still a real shortage of crowns. The desert, for instance is quoting $5-6.00/box MORE for crowns than bunch 14s. Even with higher retails set, we don’t see much relief until next week, which will be in time for Easter business, so that will keep demand strong and the market firm, as well.

CAULIFLOWER–light supplies here, too. Salinas has started, but only in a light way, and quality is very erratic, so we are watching that. Prices are upwards of $20 fob, so that is close to $25.00 in the Eastern markets. High retails are set, so that should cool off demand and possibly ease the market.

LEAF ITEMS–slightly weaker undertone here. Easter is no big deal for romaine, red, and green, so we don’t anticipate a run on those items. Supplies will continue to come out of the desert for the next 3-4 weeks, then start moving north to Salinas and Santa Maria areas.

CELERY–continued STRONG demand for all sizes of celery. The desert is winding down, Easter is around the corner, and Oxnard will be the main player. Prices, which are already closing in on $20 fob, should remain strong, and could go higher.

ASPARAGUS–prices are already at Easter ad levels, so the deal is set for the next few weeks. We will continue to load the majority of supplies out of the desert, although the Stockton/Lodi deal is starting, and even Salinas is starting to come in with some numbers.

STRAWBERRIES–with no rain forecasted in Oxnard, and Florida pumping out volume, this will hopefully be a pressure free Easter. HUH? Whoever heard of a “pressure free” Easter? You have to figure something will come up. Rain or heat in Florida, heat in the desert, rain and cold in Oxnard. Something.

Ed Brem
ed@producewest.com

Plenty of Product

As we move through the month of February, there is PLENTY of product available. Lettuce, broccoli, cauliflower, romaine, leaf, and even celery are promotable for the next few weeks, at least. We are trying to push ads on any and all items mentioned, so GET SELLING!

Long range weather forecast in the desert growing regions show a chance of rain on Wednesday, but aside from that, things look good, with highs in the 70s, and lows in the mid to high 40s. We appear to be over any threat of freeze, which is GREAT news. As we have mentioned, this is the first year in the past 5 that we haven’t had to deal with the affects and after affects of freeze problems. It’s nice to have that break.

Trucks are readily available, and rates are steady.

LETTUCE–plenty of lettuce available, and prices are low. Quality, weights, and condition are all good, so this is certainly a good item to advertise.

BROCCOLI–just too much broccoli around. Along with supplies coming out of the desert and Santa Maria areas, now the San Joaquin Valley as started. This certainly helps with arranging trucks. Quality is good in all areas.

CAULIFLOWER–still a few deals left this early week, then the market should start to go up by the end of this week.

LEAF ITEMS–no change. Plenty of red, green, boston, and romaine, and prices are VERY flexible.

CELERY–good supplies on all sizes of celery, especially the larger size 18s and 24s. Celery is FINALLY promotable.

ASPARAGUS–good supplies now, and we are getting ads going, so don’t miss out on this “seasonal” item.

STRAWBERRIES–problems ALL OVER THE PLACE. Florida had rain and cold, Oxnard had upwards of 3 inches of rain over the weekend, and central Mexico received more than 15 inches of rain this past week! As a result, there are VERY few berries around. For instance, orders that had 20 pallets to a load, are getting 1-2 pallets. Not good.