8/15/11

Here we are in the middle of August, plenty of good quality product and quiet demand.  Prices are very low on most items to compete with East coast product.  Truck rates remain higher than average for a number of reasons. High fuel costs and lack of westbound freight are major factors in truck availability.  Package that up with new emissions laws and costly upgrades and fines, and we have a heavy freight bill.

Weather on the east coast continues to be hot, and product is coming steadily.  Salinas weather remains cool and mild producing nice quality product. Deals are here and product is looking nice so come and get it!

LETTUCE — Quality remains generally nice.  We have had very few hot days and the plants are less stressed, increasing their ability to fend off diseases and pests.  Some mildew has been spotted in select corners because of some misty mornings, but overall product looks good.  Shippers are doing all they can to get Fobs’ up into the double digits but have been unsuccessful up to this point.

BROCCOLI — Lots of local and eastern broccoli, but, quality out west is very nice, bunches are tight and good color.  Supply will continue to be good into next week.  Good item to promote, shippers are looking for creative ways to move product in slow times like these.  3 dollar spread in price among shippers

CAULIFLOWER — Plenty of product this week.  Condition is excellent, many of the pest problems from 3 weeks ago have been taken care of and we are left with nice durable product.  Also a good item to promote.

LEAF ITEMS — Once again, nice quality product, dirt cheap prices industry wide.  Shippers are looking to move.  Some fringe burn associated with the wind, but nothing major to report.   East coast product has been plentiful, taking the steam out west coast production. Even with low fob’s, high freight costs push up delivered prices, and retail.

CELERY — Freight has kept this item from making any sort of move.  $10-11.00/box cost to haul to the east coast is a touch pill to swallow.  Consumers will tend to substitute fruit items for celery, which is another costly blow to this item. Dole still KING, commanding $2-3.00/box MORE than the general market.

STRAWBERRIES–There is a 3 – 5 dollar spread between Driscoll and ‘other’ berry shippers.   There are a few reasons for this; one being the obvious is the Driscoll name. Another is the fact that Driscoll is one of the only strawberry shippers that are willing to go all the way east with their product.  Other shippers would rather take the safe route and keep deliveries west of the Mississippi or go to the freezer or processing.  Because of this, Driscoll is pro rating orders this week due to high east coast demand.  There have been some quality issues, but current varieties have held up nicely even though we had some misty mornings last week.

Ed Brem

Produce West