DEMAND STARTING TO IMPROVE

While not all of the major vegetable items are showing better demand, there are a few that are. Asparagus, broccoli, cauliflower, and strawberries are all starting to pick up, market-wise, out here. This is certainly a good sign overall for the markets, as things have been depressed for over a month in the desert growing regions. Shippers are looking at their bottom lines for the winter season, and they are NOT good. ANY market increase will be welcome, and they won’t hesitate to push prices up as quickly as they can.

Trucks continue to be readily available, and rates are inching up, due to increasing fuel costs. To give you an idea, if it is 3000 miles from west coast to east coast, and it takes about 600 gallons of fuel to make the trip, and the price goes up 50 cents/gallon, that would about $250 over and above normal costs.

Long range weather shows little or no rain in the desert growing regions, with highs getting into the low 80s, and lows in the 50s. The strawberry growing regions of Santa Maria and Oxnard show cool days only in the mid 60s, and lows in the upper 40s. By the way, we can OFFICIALLY say the threat of any freeze in the desert is OVER!

 

LETTUCE–it may be a while for this market to get off the floor. There is just TOO much lettuce in the desert. Instead of getting together and skipping some fields to shrink supply and raise the market, the shippers just keep pumping out volume and keep the market depressed. It’s a REAL head scratcher.

 

BROCCOLI–this market is starting to pick up a bit. Volume is dropping in the desert, and shippers are trying to raise their prices. But, with plenty of product in Virginia and Georgia, we don’t see that lasting very long. The quality continues to be very nice in the desert, as well as Santa Maria, Phoenix, and Texas.

 

CAULIFLOWER–we are in a bit of a supply gap, and the shippers are pushing their prices up daily. As we mentioned, they have lost so much money in the desert, that they are trying to get as much, and as fast as they can. But, what usually happens here is they push prices up too high, too fast, and then they kill it. We could see that happening by this time next week.

 

LEAF ITEMS–slightly stronger on all leaf items, red, green, and romaine. No big deal, because even a dollar up doesn’t make too much difference in delivered costs, on an already low price. There is still plenty of product in the desert, and they should go another 3 weeks, or so.

 

CELERY–no change. Large size 18s and 24s are still flat in price, while the smaller size 36s and 48s are commanding $2-3.00/box more. Supplies still plentiful out of the desert, Oxnard, and Santa Maria. Heart 12s and 18s are available.

 

ASPARAGUS–things are finally starting to pick up for the shippers. We have seen some of the lowest prices we have seen in over 10 years. Supplies are still going be available in the desert for another 3 weeks, then fall off rapidly. If you notice, they will fall off just in time for Easter pull. Things could get interesting, as the Stockton/Lodi deal will be going, but may not have the volume to pick up the slack for the Easter demand.

 

STRAWBERRIES–increasing demand for California berries, and the market is VERY firm. We have had a few warm days, which helped to bring on some fruit, but the forecast is for colder temperatures the rest of this week. All we really need is some extended days of warm weather, and the berries will come on. The fruit is OUT THERE.

 

Ed Brem

ed@producewest.com

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