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5/6/08

RETAILS GOING UP AND UP

As truck rates continue to go up, it is no wonder that delivered prices keep going up. That means retail prices will continue to rise. This is NOT just for produce, but for everything from razor blades to bird seed. From charcoal briquets to underwear. You can't open a newspaper or watch the news without seeing how our WHOLE country is in dire straights because of this growing problem.
Continued unseasonably cool weather in California is slowing down growth and production for most vegetable and fruit items. Strawberries and asparagus continue to be the 2 items that are mostly effected by this situation.
There are still plenty of trucks available, but more and more we are hearing $7000 for mixer loads to the East coast. This is about $2000 MORE than last year at this time. It is very scary thinking what will happen to rates this Summer.

LETTUCE--even with the cool weather, there is plenty of lettuce available in Salinas and Santa Maria areas, and prices are down. Still, with the high freight rates mentioned, delivered prices are still going to be expensive. Quality is mostly good, although there are occasional problems on arrival with various defects Most shippers are doing a good job sorting out their weaker fields and only cutting the better lettuce, but, some slip through the cracks.

BROCCOLI--plenty of broccoli, both bunch and crowns and prices continue to be soft. The past month when the market was high, it was due to planting gaps from our rains in January and February. We are basically over those gaps now, so there should be plenty of product for the next several weeks.

CAULIFLOWER--continued wide range in price here. We are seeing as much as a $3-4.00/box spread depending upon the label. Cool weather is keeping supplies light, but demand is only fair.

LEAF ITEMS--good, steady supplies of red, green, and romaine. Boston lettuce is a bit stronger in price, as supplies are fairly light due to our cool weather. Prices are steady on all leaf items.

CELERY--Oxnard showing HEAVY seed stem, which is cutting field supplies down 25-50% on all sizes of celery. And its not getting any better. FOB prices are going to be over $20/box, add freight of $9-10/box and that adds up to $30/box delivered to the East coast! What kind of retail does that add up to?

STRAWBERRIES--this is the first week in May, and we should be SWIMMING in berries. But, our continued below normal temperatures are keeping the berries from coloring up, so they just SIT there. The 10 day forecast in strawberry country shows "slight" warming, but still below normal. While it will keep the berries firm, supplies will still be light, with most fruit light in color, some white shoulders, and green tips.

ASPARAGUS--this asparagus season should be basically over. But, the cool weather is keeping the deal going. The good news is that it the cool weather keeps the root system strong, so supplies will last longer. The bad news is that supplies continue to be light and the market strong. This time of year asparagus is basically an afterthought with consumers, and not a lot of space is needed for displays at the store level. With the lighter demand, prices are starting to come off.

Ed Brem
ed@producewest.com