Veggie Markets on the Rise

Ask receivers across the country how business is for vegetables at the store level, and “brisk” is NOT a work they use. In fact, overall sales are, and have been, generally slow. Still, shippers in Salinas and Santa Maria areas couldn’t care less. They see lighter supplies of lettuce, romaine, broccoli, cauliflower, and other items, and are raising their prices. Add to the fact the truck rates are steadily climbing, and delivered prices are anything but reasonably priced. With the way the economy is, you would think that most consumers are looking for the best deals they can find from furniture, to clothing, to food. When retails are adjusted to reflect the higher delivered costs on vegetable items across the board, demand will have to fall.
Long range weather in Salinas/Watsonville areas show below normal temperatures for the next few days, then climbing to more normal for this time of year. The San Joaquin Valley, where the tree fruit, grapes, and melons are coming from has been below normal for a while now, and certainly effecting supplies of just about all items over there. They ARE supposed to get warmer later this week, which will help.
Trucks are tighter, fuel costs are going up, and overall truck rates are climbing ever so steadily. We could easily see $7000 to the East coast by this weekend, as the 4th of July business starts in.

LETTUCE–shippers are all saying they are experiencing lighter supplies due to lighter weights eating into their supplies and yields. Also, mildew has been showing up, and that too cuts into their yields. Warmer weather later this week should help, but we expect a firm, high market most of this week, with delivered prices to the East coast upwards of $20.00.

BROCCOLI–lighter supplies are allowing shippers to push the market of bunch 14s, 18s, and crowns, something they haven’t been able to do for several weeks. We aren’t sure how long they can sustain this, but for now, prices are up $2-4.00/box over where they have been.

CAULIFLOWER–we thought when the shippers pushed this market up last week that demand would fall and prices come down. We were wrong. Cooler weather in Salinas has kept supplies on the light side, and kept the market firm. In fact, prices are actually even higher than they were last week. Again, with the higher retails out there, and warmer weather forecasted for later this week, we should see prices start to slip.

LEAF ITEMS–romaine supplies are very light due to lighter weights and mildew, so this market is very active. Red and green leaf aren’t doing much, but with iceberg and romaine so much stronger, this demand could spill over into the other leaf items and pick up demand there, as well.

CELERY–supplies aren’t overly heavy with California celery, so you would think the shippers would look to raise their prices. But, with the climbing freight rates, and celery being the most effected of just about all the major vegetable items, you wouldn’t think the shippers would dare raise their prices. They haven’t so far, but you never know. Personally , we don’t see prices going up for a few weeks.

STRAWBERRIES– just so-so demand, and prices are about steady. The cooler weather has slowed growth and color, so supplies are down. But, demand is only fair for berries, what with all the attention on tree fruit, melons, and grapes. Warmer weather later this week should help bring on more strawberries. Raspberries, blackberries, and blueberries are all available.

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