2/28/11

The desert growing regions are FINALLY getting into a more normal weather patterns with days reaching the high 70s to low 80s, nights in the low 50s,  but we are FAR from getting over the problems created by the freeze in early February. Shippers continue to trim off freeze-affected product on head lettuce, romaine, leaf, anise, endive, escarole, and various other items. We have mentioned that when the freeze hit several weeks ago that we would be dealing with these problems well in to March, and we still see that. Simply put, expect “high prices and poor quality”.

Long range weather for the next 10 days show the desert in the upper 70s to low 80s for highs and lows in the low 50s, both normal for this time of year. The Oxnard area, where most of the celery and West coast strawberries are coming from, also show more seasonable temperatures, however there is a chance of rain there later this week.

Trucks remain plentiful, with rates holding steady due to higher diesel costs.

LETTUCE–you’d think the shippers would be making a boat load of money with fob prices in the mid $30’s for wrap lettuce. They are and they aren’t. While prices are high, yields are WAY down. A normal field of head lettuce, for instance, is around 1000 cartons per acre. Due to the freeze issues, the average right now is 300-400 cartons per acre. We forecasted the desert lettuce deal to be strong for the rest of the season, and we continue to feel that way. In fact, the shortage and high markets could conceivably carry over into the Huron/Bakersfield deal in April.

BROCCOLI–stonger market on bunch 14s, 18s, and crowns. The cold temperatures really has slowed down growth and production, and the shippers are taking advantage of that and pushing their prices upward, in spite of supplies in Texas, Florida, and other areas of the country. But, as the desert warms, we should see the market drift downward, possibly as early as next week.

CAULIFLOWER–again, the cold temperatures have slowed down supplies, and prices are on the rise. We may see the shippers push fob $25.00, and higher, this week, but that will probably kill business and the market. Like broccoli, we could see the flower market start to come down by this time next week. We don’t recommend buying too heavily this week.

LEAF ITEMS–romaine continues to be OFF THE CHARTS, with fob prices in the $45.00 range. Hearts, too, are selling for $40.00+.  Yields continue to be WAY down, due to the freeze problems, and we aren’t sure when things will correct themselves. You need to understand that the “young’ leaf plants, which are highly vulnerable to weather, because of their lack of protection, got hit the hardest. A LOT of product was lost, and will continue for another month. Not just romaine, but green, red, and boston are ALL high in price, although not as much as romaine.

CELERY–after prices falling nearly in half of where they were, things have settled down. Settled down is a relative term, because fob prices currently are still in the low $20.00’s for all sizes. So after you add sleeving and freight to the East coast, prices are still $30.00 and higher delivered for all sizes. We see the market steady all week.

STRAWBERRIES–Oxnard is starting to pick up more volume, as we head into March, but prices certainly can’t compete with the cheap markets in Florida. If you buy out of California, you can expect excellent quality, with big, hard, high-sugar fruit. Driscoll is $2-4.00/box higher than the general market, and they are actually pro rating slightly.

ASPARAGUS–even though the weather is warming up in the desert, the past week or so has been cold, and supplies haven’t been coming on, and prices are climbing. We see things improving by the end of this week and into next, with prices starting to slip by this time next week.

Ed Brem

ed@producewest.com