Coldest May Since 1880

The National Weather Service reports that northern California is experiencing the coldest average temperatures in May since 1880. While the growing areas for fruits and vegetables are more considered “central” California, we have had much the same. In fact, the whole state has had one of the coldest Mays on record. It has slowed the growth and production of just about all items, including strawberries, cherries, tree fruit, melons, and most of the vegetable items. While some items are waiting for the warmer temperatures to bring on product, other items will never get back what has been lost.

Trucks are extremely tight this week, as Memorial Day weekend approaches, and rates are easily into the $7000’s to the East coast. Not just because of the lack of trucks, but the lack of West bound freight is hurting the availability of rigs. Expect rates to continue their climb upward.

Long range weather continues this week with below normal temperatures and even threats of rain ALL this week. Not good.

 

LETTUCE–market starting to come down, as more stores are looking to push “fruit” salads, instead of “lettuce” salads. The cold temperatures have slowed growth and production, but demand has also slowed due to the aforementioned reason. But, due to the high freight costs, delivered prices of wrap 24s are easily over $20.00 on East coast markets.

 

BROCCOLI–still tight supplies of crowns and that market remains strong. We are looking at fob prices of $15-18.00, which puts delivered prices well over $20.00. Bunch 14s and 18s are more available and priced $2-3.00/box cheaper.

 

CAULIFLOWER–this is a true reflection of how the cold temperatures are affecting an item. The cauliflower market has been over $20 fob for the past 4 weeks, and looking to make it 5 weeks. As long as the temperatures stay in the 50’s and low 60’s, as it’s been, supplies just won’t come on. Expect this market to remain active all week, and priced high, although we could start to see a range in price as this week progresses.

 

LEAF ITEMS–again, the cold weather is holding back supplies, keeping the fob markets for romaine, boston, red, and green leaf in the $12-15.00 range, which means delivered prices on the high priced trucks $20 and higher on all leaf items.

 

CELERY–strong, active market on ALL sizes. With the high freight rates pushing the cost of a box of celery to $10.00/box to the East, it’s not hard to imagine the price of celery upwards of $25-30.00/box. We don’t see this market coming down any time soon.

 

STRAWBERRIES–now that Memorial Day business is basically done, except for West coast business, you’d think we’d see the market start to come down. In fact, it was over a month ago that shippers were talking about a FLOOD of supplies by mid-May. But, with the cold, sometimes wet weather, supplies are still way down. In fact, Driscoll is prorating 30-50%. One grower was telling me that their volume on Salinas/Watsonville fields will be down 1000 cartons per acre this spring because of the record breaking temperatures.

 

Ed Brem

ed@producewest.com

www.producewest.com

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