MEMORIAL DAY BUSINESS

 

This past week, and shipping early this week, is showing BIG BUSINESS for produce. This holiday is the first of the summer ads that stores have come to depend upon for pumping up their sales and making the cash registers ring. Even with light supplies of tree fruit, grapes, cherries, and other summer items, business has been brisk. After Wednesday, however, business will slow to a crawl for many items. So, like any business, you’ve got to make it while you can!

Long range weather shows continued mild along the California coast for veg and berries, while the inland areas around Fresno continue to warm up, closing in on 100 degrees, which will certainly help bring on the fruit. No rain, which is nice.

Trucks have been pushing for higher rates, and we are hearing $8000+ for east coast freight, which we called for last week. They have been able to get those top dollars because of Memorial Day business. But, with that business all but finished, things should start to level out and rates even go down this weekend, as business slows.

 

LETTUCE–continued good demand and strong prices this week. However, as consumers start thinking about “fruit” salads, instead of “lettuce” salads, we see demand slowing down, and prices dropping. The shippers will certainly be looking for business this weekend, and there should be deals out there. Quality is very nice, with some of the best we have seen all year, so keep looking to advertise.

 

BROCCOLI–continued wide range in price, especially on crowns, with as much as $2-3.00/box spread, depending upon the area and shipper. Competition from eastern seaboard shippers are keeping the overall market down for crowns. Look to California broccoli for your broccoli needs, as the quality is second to none.

 

CAULIFLOWER–also a wide range in price, depending upon the area and label. This is one that we could see some real deals by the end of this week, so look to shop around. Quality is nice here, as well.

 

LEAF ITEMS–with local gardens coming on throughout the east coast, business is really backing off for west coast romaine, red, and green leaf. The markets are starting to show it, too, with red and green prices almost 1/2 of what they were 2 weeks ago. Still, with the higher freight rates, delivered prices still look high.

 

CELERY–shippers have been pushing the celery market up the past few weeks, not even concerned about climbing freight rates. We have stated in various bulletins that celery really is impacted by freight. Because you only get about 700 boxes of celery on a truck, as opposed to, say, strawberries, where you can get 2800 boxes, you can see what freight means. Currently, a box of celery is over $10 for freight, ALONE. This will continue to climb the next 2 months, too. So, if you push the fob price too high, delivered prices can easily get to $25-30.00 in the east.

 

STRAWBERRIES–the bloom is off the rose. Now that Memorial Day business is done, it’s like switching off the lights. All of a sudden, shippers, who prior to this time, wouldn’t even return a phone call because of the strong demand, are now our BEST friends! Even with the summer fruits kicking into high gear, continue to advertise berries, as we are seeing good prices and very nice quality, overall.

 

Ed Brem

ed@producewest.com

Leave a Reply