PROBLEMS CONTINUE IN THE DESERT


Even though the freeze ht the desert growing regions 2 weeks ago, the problems continue, and WILL continue for several more weeks. For instance, to give you an idea how much the iceberg lettuce crop was hurt, there was more BROCCOLI harvested last week than iceberg lettuce! And it’s not just lettuce. Romaine, green leaf, red leaf, green onions, endive, and escarole are still going through shortages and quality problems, and that is leading to 30-40% crop loss EVERY day, as product is harvested. We could see problems for the entire desert deal, which runs through the month of March.

Long range weather in the desert growing areas show temperatures in the mid to upper 60s  for highs, and lows in the upper 40s, both BELOW normal for this time of year. Oxnard, where the celery and strawberries are coming from, are cool, as well, with some rain forecasted for the end of this week. This will slow down growth and production.

Trucks are available, and rates seem to have bottomed out, due to high fuel costs.

LETTUCE–We would have to go back to the 1950’s to find the low volume of lettuce we are seeing. We can’t say enough how much damage was done from the freeze. Shippers continue to pack 30s and “standard” 24s, as they have to trim off 5-7 leaves deep to get past the problems. Keep in mind that since the shippers are packing 30s, they have to go through more lettuce and get farther and farther ahead of schedule, which means gaps. That is why we fear the market will remain this active for another month. FOB prices are low to mid $30.00 range. Oh, and they don’t want to hear about any quality issues!

BROCCOLI–good supplies of bunch and crowns due to the fact that there are areas from Salinas to Texas that have broccoli.  This is one of the only ad items that we suggest. Prices are fairly low, and there are some deals out there.

CAULIFLOWER–like broccoli, these two items had been the least effected by the freeze, since there are supplies coming out of multiple areas of the country. Still, with below normal temperatures forecasted for this week, we could see a supply shortage and stronger market by this weekend.

LEAF ITEMS–romaine, in particular, continue to have problems. Shippers continue to sell “with problems” and don’t want to hear about it on the receiving end, even while having NO problem asking $35-38.00 FOB for it. Romaine hearts, while also extremely high priced, have the luxury of getting most of the problems trimmed off, and you end up with a fairly decent product. Green and red leaf are still very short in supply, and the markets are in the mid-$20.00’s, looking to stay there.

CELERY–this market is finally coming off its highs of $35-40.00 fob. Prices are down $10.00/box, or so, and may settle there. Rain is forecasted in Oxnard later this week, which will slow down growth and production.

ASPARAGUS–this is ALMOST back to normal. Shippers had to go in and basically strip ALL product and start over. But, with cooler weather predicted this week, supplies will slow down, and keep the market strong. Easter is at the end of April this year, so the desert won’t be a factor. Supplies will have to come out of Salinas and the Stockton/Lodi areas.

Ed Brem

ed@producewest.com

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