With the start of a new month and a major produce holiday approaching most shippers are positioning their marketing strategies to take advantage of the increased demand. Shippers on most veg items are artificially inflating prices in an effort to reach their lid pricing for the Thanksgiving Holiday pull, set to begin this week. To meet the surge in demand, shippers must inventory most core commodities. The balancing act between selling out daily and holding product for “future” prebooked orders is tricky. Warm weather over the weekend will continue to push crops ahead of schedule and if bulk shipments don’t start soon warehouse space becomes a potential issue along with quality. This all leads to price instability especially when demand from the East Coast, New York / New Jersey area, has been unstable due to the aftermath of Superstorm Sandy.
Weather in California/Arizona growing districts will be 10-15 degrees above normal ( 68/44 Coast , 80/55 Inland desert) through midweek but looks to return to normal for the foreseeable future with the only precipitation predicted for November arriving early the week of Thanksgiving.
Truck availability remains good with rates continuing to edge down slightly although increased demand for the Thanksgiving Holiday pull will begin as early as this week putting pressure for rates to hold. As always advance notice will give you the advantage of best rates and service.
LETTUCE- Part II of the transition is underway. Those shippers who chose not to participate in the Central Valley will start their Winter program a week earlier than budgeted in the Yuma Valley this week. With ALL three districts going there is abundant supplies available. Although quality is another story. Shelf life of Salinas lettuce is substantially reduced especially after this weekends warm weather. Quality in the Central Valley (Huron) has improved slightly but is still just fair and Yuma is reporting the usual initial defects from Seeder to tip burn . Quality from Salinas and Huron will continue to decline but Yuma will improve once harvest gets past the first few initial fields. With a wide range in quality from ALL districts loading fresh lettuce is top priority.
BROCCOLI- Supplies of broccoli continue to be steady with crowns slightly tighter than bunch. Production continues to be slightly ahead of budget adding to the current supply. Broccoli is grown in multiple districts (Salinas, Santa Maria, Central Valley , Yuma and Mexico) during this transitional period which should lead to ample supplies for the Thanksgiving pull. This past weekends warm weather will continue to keep supplies ahead of budget. Volume deals are available but with much of the crop heavily committed for the Holiday they are very sporadic. Quality is mostly good from all districts.
CAULIFLOWER- Unlike broccoli, production of Cauliflower is more concentrated during the month of November. Salinas and Santa Maria are the primary growing regions and with production ahead of budget there is currently good supplies BUT will likely run short during the Holiday pull as there are no new districts to support demand until the desert ,which isn’t scheduled to start until the week of November 19th. Quality remains good.
LEAF ITEMS- Romaine quality continues to be the driving force behind the improved market. Much of the current crop continues to suffer from defects from seeder, tipburn, twist , mildew and rib discoloration. Most shippers are “trimming down” defects and converting to hearts. This has lead to carton Romaine market improving but the heart market has been over-saturated. Demand should improve but quality will continue to be an issue even with Yuma scheduled to start later this week. Demand on green and redleaf will follow closely behind. Quality will continue to be an issue in ALL loading locations.
CELERY- Market has strengthened slightly with early Holiday promotions starting this week. But as stated in the intro most shippers don’t have the labor capacity to handle the volume of orders needed on a day to day basis without inventorying heavy volume in preparation of Holiday demand. A few shippers will continue to offer out volume deals to maintain rotation as their holiday demand comes into focus.
ASPARAGUS– Production from Mexico continues to be steady and demand has stayed strong. Quality continues to improve weekly. Supplies look to be on track for Holiday promotions but the market will likely start to get stronger as the early holiday promotions kickoff .
GREEN ONION- Production has leveled off but demand continues to be weak especially on small size Green Onions. Pricing on medium and large sizes are slightly higher. The market will likely strengthen as the week progresses.
BRUSSELS SPROUTS- Increased supplies and lighter demand had prices continuing to head lower last week but increased demand for Holiday promotions will likely jump sharply this week and prop the market back up. Take advantage of good values while supplies last. Most shippers are offering multiple packs including clamshells, 1 amp; 2 lb microwaveable packages , and Stalks which is a Great intro display item.
STRAWBERRIES- Oxnard will be the primary shipping region for eastern quality fruit although warm temperatures have softened even their new Fall crop. Availability for shipping east continues to be VERY limited. Continue to expect bruising issues on arrival. Mexico availability will start to increase quality offerings but expect the market for top end quality to be strong through the Holiday’s. Supplies of Raspberries is better with improving quality. Blackberries primarily from Mexico have increased and continue offer a good value. Production from Florida is still a month away.
CITRUS- California Navel shipments have begun . Quality is excellent with high flavor profile while color is only slightly off. Both will continue to improve throughout the season. The crop is projected to be extensive and promotional supplies available.
Don’t forget to get do your civic duty and like they say , “Vote Early and Vote Often“