WEEKLY MARKET REVIEW. November 6, 2014

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Market Alert AVOCADOS (HASS, LARGE SIZES) BEANS (GREEN, WEST) BLACKBERRIES BROCCOLI RABE (RAPINI) CANTALOUPES, HONEYDEWS (SMALLER) CARROTS (JUMBO SIZE) ENGLISH CUCUMBERS GARLIC-PEELED GINGER HERBS

1 Market Alert AVOCADOS (HASS, LARGE SIZES) BEANS (GREEN, WEST) BLACKBERRIES BROCCOLI RABE (RAPINI) CANTALOUPES, HONEYDEWS (SMALLER) CARROTS (JUMBO SIZE) ENGLISH CUCUMBERS GARLIC-PEELED GINGER HERBS LETTUCE (ICEBERG, ROMAINE) PEAS (SNOW, SUGAR SNAP) POTATOES (IDAHO) STRAWBERRIES TOMATOES (ALL) WEEKLY MARKET REVIEW November 6, 2014 Overview Quality and availability issues for leafy greens are expected to continue for the duration of the Salinas growing season (through mid-november, at which point the growing region transitions to Yuma). Unseasonably warm temperatures have caused crops to grow approximately 7-12 days ahead of schedule, and due to water shortages, very little lettuce was planted in Huron, California this year. Growers are now confirming a supply gap, though many are attempting to purchase additional acreage in the hope of compensating for drastic shortages. Look for red leaf, green leaf, broccoli, and cauliflower to follow suit. With these extreme market conditions in mind, we will be seeing industry wide price increases for leafy greens. Transportation Trucks are in tight supply in all Western districts and freight rates have advanced (Washington, Idaho, Oregon, California, and Arizona). Weather Salinas, CA A record setting one day total of rainfall was recorded last Friday evening (Oct. 31 st ) through Saturday in Salinas. Highs reached degrees above historical averages this week but are expected to cool today and tomorrow. Warm weather is expected to return over the weekend with highs in the upper 80s to mid-90s. 52/78 50/76 52/76 52/77 Yuma, AZ High temperatures for Yuma range from degrees this week followed by a cooling on Sunday and Monday. 1

2 62/88 63/87 65/88 65/88 Avocados Small-sized (70s and 84s) Hass avocados from Mexico are in significant oversupply with tight availability on large sizes (48s and larger); demand for 60s is in balance with supply. Volume price discounts are available on the small sizes. The current market is heavy to small sizes due to growers in Mexico being forced to continue harvesting groves in the lower elevations that are past peak production. Trees at higher elevations are currently producing fruit with insufficient oil content. The good news is that the fruit maturity in the higher-elevation groves is gradually improving with a normal size profile expected by mid-november. Berries Northern California berry harvests have ended with mid-fall colder weather. Warmer Southern California will continue to produce strawberries and raspberries through November and into the start of December. November and December are the toughest months of the year for berry production due to changing, colder weather and transitions to harvests from Mexico, Florida and South America (blueberries). Harvest production emphasis has begun to shift to Central Mexico harvests for late November and will continue through April, Central Mexico produces strong volume of strawberries, blackberries and raspberries and now a developing crop of Driscoll variety blueberries. Distribution through the winter will be through McAllen, Texas and Yuma, Arizona. Production in Mexico peaks in January with strongest fruit at that time. In December, Dover Florida starts local strawberry production and will also carry mixed berry patch transfers from Mexico. Blueberries into Florida will come from Argentina, then From Chile. Overall, berry production improves significantly into January and through March. In March and April the transition back to domestic harvests will occur with movement back to California. Blackberries: High elevation districts in Central Mexico have become the primary source; quality and availability have improved significantly. Blueberries: Three global growing regions are now in the production mix; Mexico and Argentina, with Chile coming online. Quality has improved overall. Raspberries: Great availability overall with good quality. Rain should not have an affect; fruit is grown under the protection of hoops. Oxnard, Santa Maria and Mexico round out the growing areas. Strawberries: With recent rain over the weekend, strawberries are expected to show signs of rain damage. Quality prior to the rain was fair to good, but expect quality to be closer to fair as we progress through November. Anticipate the market to stay on the higher end into the high teens until after Thanksgiving. Florida has planted less acreage this year but volume and quality should increase as production increase in early December. California-Arizona Citrus Grapefruit: California growers curtailed harvesting on new crop grapefruit, as the size profile was heavy to extremely small sizes (56s and 64s). This is the result of slow growth caused by the drought. Growers will resume production when fields begin to yield normal sizes. Lemons: There is good availability on all sizes and grades. Prices have stabilized at lower levels. Limes (Persian): There are values on 110s/150s. Steady volume on 175s and an increase on 200s and smaller. Navel Oranges: The water shortage in the West will cause fruit sizes to yield plentiful small sizes (88s, 113s and 138s) through the season and limited availability for larger sizes. Gas times are decreasing; currently in the 48 hour range. Cooler temperatures will help with color and sugar content. Sizes structure remains mostly 88s and smaller. Valencia Oranges: The season is winding down quickly; only larger shippers remain with supplies. 2

3 Texas/Florida Oranges: Texas oranges are showing some scarring, but the flavor is sweet. Look for quality to continually improve over the next few weeks. Texas/Florida Grapefruit: Texas/Florida grapefruit has started. Texas had a slow start but getting stronger. Quality is good. Sweet Scarletts will launch November 10 th. Pineapple: Rainfall in Central America continues to cause issues with quality and availability. Tight supplies are now anticipated through Thanksgiving. Specialty Citrus Items: Satsuma oranges and pomelos have started. Clementines have been delayed and are expected to start on November 10th. Fairchild and Mandarin oranges are expected to start on November 20 th. California Lettuce Green and Red Leaf: Prices are expected to begin moving higher as we near the end of the season in Salinas and also in response to the shortage on iceberg and romaine. Iceberg Lettuce: A substantial shortfall in supply has developed for late-season production in Central California districts (Salinas, Huron and Santa Maria). Limited harvesting began this week in Western Arizona (Yuma) with yields well below average. There is a significant percentage of small head size (30 heads per carton vs. the normal 24 heads). Tight availability and high prices will continue through the month of November. Romaine: Prices have advanced sharply with the harvest transition southward. The late-season harvest in the Salinas Valley is characterized by various quality issues caused by previous warm weather, including fringe burn, wind burn, irregular head size and seeder. New crop romaine in Western Arizona will show smaller head size and light carton weights (32-34 lbs.) Romaine Hearts: Below normal supplies this week with weather related quality issues; tight supplies will continue through mid-november. Eastern and Western Vegetables Green and Red Bell Peppers: Good availability for choice green bell peppers in California (Coachella), however the #1 sizes (large, extra-large, jumbo) are in tight supply as the season is winding down. Light production volume for new crop green bells in Nogales with full production not expected until post-thanksgiving. Harvest yield and quality for growers in Baja California have been affected, the result of damage caused by an ongoing storm season. Prices are moving higher for most sizes in the East and West. Red bells are in tight supply with the season in Oxnard winding down and new crop harvest in Coachella behind schedule. Cucumbers: Generally good supply in Florida and Nogales; market is stable, and quality is improving. English Cucumber: Supplies are gradually improving as product becomes available out of Mexico. Expect to see improvement as the week continues. Green Beans: Prices continue to slowly ease from recent highs in the West (Coachella). Plentiful supplies in Florida and Georgia. Mexican beans will become available in Nogales next week. Squash: Zucchini & Yellow: Prices have advanced in Nogales, with a sharp increase in demand for zucchini and yellow squash. Rain in Mexico has slowed production. Good availability in Florida. Acorn, Butternut, Spaghetti (loading in Los Angeles): Adequate supplies for all varieties. Also good availability for butternut and acorn in South Carolina and Florida. Grapes Grapes are moving very well, and most of the harvest will be finished within the next two weeks. With the current movement it appears that grapes will be plentiful through December. Currently, there is a significant amount of pressure on red globes, green seedless, and black seedless. Quality and condition are excellent at this time. Herbs The hurricane caused major damage to the city of Cabo San Lucas and La Paz, and businesses have been uprooted. The fresh herb crop has been destroyed in Southern Baja and the crops will 3

4 need to be replanted. Expect price increases, quality issues, and a shortage of product in late November and early December. The following herbs continue to be tight: Tarragon: Tarragon will be tight until the end of the year since replanting in Mexico. This will take some time to grow. Basil: Basil supplies are picking up, but price is still firm. Yields are down somewhat since only quality basil is being shipped. Chervil: This delicate fresh herb is expected to be hit and miss as the weather continues to fluctuate (warm to cold and back to warm). Mint and rosemary: Great supplies. Melon The cantaloupe market is steady, sizes are peaking large. 12ct and smaller are still tight as 75% of all pack out are 9 s and larger. Quality is better since more melons are crossing through Nogales. The honeydew market is very similar to cantaloupes; large sizes are plentiful and smaller sizes (6 s and smaller) are still very tight. Quality on honeydews is mixed. Watermelons Seedless watermelon supplies from Mexico are finally gaining enough volume to cover contract business for several suppliers. Others are anticipating arrivals in the second half of this week to push them into open market sales. Quality has been suspect overall, but new crossings seem to improve almost daily. There are no seeded available at this point. Mini seedless are also seeing better numbers, and there are a few shippers that will come on line this week. Expect to see markets soften over this week. Mixed Vegetables Artichokes: Available supplies are fair this week. Quality is excellent, and prices are steady. Supplies of large loose and small loose continue to be very limited. Small sizes are unavailable. Availability is best on 12s and 18s. Arugula: Steady availability. Asparagus: New crop asparagus from Mexico is now available. Availability has improved, with plentiful supplies anticipated by next week. Bok Choy: Tight supplies, high prices. Broccoli: The tone of the broccoli market is beginning to show signs of strength for the lateseason harvest in Salinas and Santa Maria. Local regional growing areas are winding down while the new crop harvest in the desert regions of Southern California and Western Arizona will not begin until late November. Currently, broccoli crowns command a price premium compared to bunched broccoli. Hollow core is present in various crown lots despite the weather and days in the ground. Carrots: Availability has tightened for jumbo carrots in California as size and yield have declined, the result of a slower growth cycle during the late season fall harvest at higher elevation (2,150 ft.) in the Cuyama Valley of Southern California. Prices will trend higher until the harvest returns to the Southern San Joaquin Valley (Bakersfield). Cauliflower: Cauliflower availability is tight prior to the transition to desert districts in late November. Quality remains very good with white curds, good trim and pack. Cauliflower production will remain in Salinas until early December. Celery: Steady supplies. Demand has increased with the approach of Thanksgiving. Warm weather conditions have caused pith to develop in some lots along with moderate brown discoloration in the shank. 4

Cilantro: Plentiful supplies available from California and Mexico. Quality is very nice with bunches averaging 9-11 in length with good green color.

5 Cilantro: Plentiful supplies available from California and Mexico. Quality is very nice with bunches averaging 9-11 in length with good green color. Fennel/Anise: Steady availability for most sizes with reasonable prices. Garlic: Not much has changed. Volume from China is down substantially due to tariff increases for the majority of importers. This has resulted in a large increase in demand for California and Mexican growers. Although a few containers from China have arrived on the West coast recently, demand exceeds supply. A limited supply of Chinese garlic is currently available; however volume is much less than normal. A judicial ruling is expected next week regarding the release into the market of Chinese garlic that is being held in port. The current shortage will not be relieved until more Chinese garlic becomes available. Ginger: There is a supply and demand situation that happens from time to time with ginger. The crop in storage remains tight, and the new crop will be in the U.S. around mid-january. This is causing a lack of supply and very high prices. Green Cabbage: Good supplies with various regions in production, including Colorado, Michigan, North Carolina and California. Cabbage is clean with a very nice color and dense appearance. Green Onions: Growers in Mexico are in the recovery phase following the hurricanes of September and early October; production volume is on the increase, and prices are trending lower. Green onions are expected to be in good supply for Thanksgiving. Kale (Green): Plentiful supplies continue this week. Overall quality and appearance continues to be very nice. Bunches are averaging in length and showing good texture and color. Mache: Adequate availability. Napa: Limited supplies, high prices. Parsley (Curly): Supplies are on the decline. Prices are moving higher. Parsley (Italian): Italian parsley is in great supply. Availability is generally stable. Prices are firming with the approach of the Thanksgiving holiday. Red Cabbage: The market remains strong with light supplies and very good demand. Quality is excellent with great color and medium head size. Prices remain high. Snow and Sugar Snap Peas: Snow peas and sugar snaps are in tight supply (Peru, Mexico, and California). Prices remain at the highs for both. Quality is poor, and limited availability will continue through next week. Spinach (baby): Adequate supplies. Spinach (bunched): Demand is fair, and supplies are below average as growers are ahead of production schedule. Overall quality is good with large, full bunches and weights of lbs. Spring Mix: Steady availability. The spring mix market is stabilizing. Expect to notice continued improvements. Onions Plentiful availability for yellow, red and white onions in Washington, Idaho and Eastern Oregon. Potatoes (Idaho) Continued tight availability on carton-packed Idaho Russets (large sizes 40s thru 70s). Cool, wet growing conditions that occurred during August have caused a reduction in yield for the large sizes 5

6 during the early harvest. Growers are hoping for increasing size from later fields. Other growing regions offer better alternatives for large sizes, including Washington, Oregon, Nebraska and Wisconsin. Distributors, please place your orders as early as possible in order to consider alternate shipping areas, or consolidation of large-sized potatoes from Washington to complete your shipments from Idaho. Tomatoes Round, Roma, Plum, and Grape: The tomato market continues to remain strong on round tomatoes, cherry tomatoes and grape tomatoes. The Roma market has eased up some although some rain in the growing area has slowed production slightly. Round tomato production continues to decline and is expected to finish early next week. Florida production is slow to start due to rain causing delays in harvesting and ripening. Round production has been effected and will be delayed due to late season rain. Grape and cherry production will remain light on the East Coast, while production will begin to improve from Baja and central Mexico. Tree Fruit Peaches and Nectarines are finished. There are very few plums left. Mostly 35VF & larger left on red plums and 45VF and larger left on black plums. There are good supplies of pomegranates, persimmons, kiwi, pears (Oregon Bartlett s). Fair supplies on Fuji and Pink Lady apples. Good supplies on Granny Smith apples and Asian pears. Kiwi: New crop California kiwi is now available. The crop size is expected to be somewhat normal this year; however ongoing drought conditions will continue to play a role in the size profile, yield and overall production. Washington Apples and Pears Demand and movement are very strong. Supplies are tight on all grades of small fruit, and prices are firming. Fruit is running heavy to the larger sizes. Quality is extremely good and producing mostly premium grade. Prices on Red Delicious and Gala apples are very attractive, especially on 88s and larger. Storages are filling up fast. Pear demand is very good, especially for 110s and smaller. Supplies are tight on these sizes. Crop is running heavy to U.S. #1, peaking 90s and larger. Trucking is still difficult; rates are high. Expect this trend to continue through the holidays. Commodity Price Expected Trend Quality Avocados-Mexican Low to Moderate Good Avocados-California Moderate End of Season Berries Blackberries High Good Blueberries High Good Raspberries Moderate Good Strawberries Moderate Good California-Arizona Citrus Grapefruit (Texas) Moderate Good Lemons Moderate - Good Limes Moderate - Excellent Oranges Navels High Good Pineapple Moderate Good California Lettuce Green and Red Leaf Moderate Fair Iceberg High Fair Romaine High Fair 6

7 Romaine Hearts High Fair Eastern & Western Vegetables Cucumbers Moderate - Good Green Beans Moderate to Extreme - Good Green Bell Peppers Moderate - Good Red Bell Peppers Moderate - Good Yellow Squash Moderate Good Zucchini Moderate Good Grapes & Tree Fruit Grapes-Green Seedless Moderate to High - Good Grapes-Red Seedless Moderate - Good Peaches, Plums Moderate - Good Melons Cantaloupes High/Extreme Poor Honeydews Moderate Fair Mixed Vegetables Artichokes Moderate to High Excellent Arugula Moderate - Good Asparagus High Good Bok Choy High - Good Broccoli Moderate Good Carrots Moderate Good Cauliflower Moderate Good Celery Moderate Good Cilantro Moderate Very Good Frisee Moderate - Good Fennel/Anise Moderate - Good Garlic, Peeled Extreme - Good Green Cabbage Moderate Excellent Green Onions Low to Moderate Excellent Kale (Green) Moderate Very Good Mache Moderate - Good Napa High - Good Parsley (Curly) Moderate to High Very Good Parsley (Italian) Moderate to High Very Good Radicchio - Good Red Cabbage High Excellent Snow and Sugar Snap Peas High to Extreme - Poor to Fair Spinach (baby) Moderate - Good Spinach (bunched) Moderate - Excellent Spring Mix Moderate - Good Onions Red Low - Good White Moderate - Good Yellow Low - Good Potatoes (Idaho) Idaho Russets Moderate - Good Tomatoes Round, Roma, Plum Extreme Unstable Poor Grape Extreme Unstable Poor 7

8 Washington Apples & Pears Red and Golden Delicious Moderate Good Granny Smiths, Galas Moderate Good Fujis High Good Braeburns, Cameos High Good Bartletts Moderate Good D Anjou High Fair Red Anjou Moderate Good 8

WEEKLY MARKET REVIEW. November 13, 2014

WEEKLY MARKET REVIEW. November 13, 2014 Market Alert BEANS (GREEN) CANTALOUPES, HONEYDEWS (SMALLER) CAULIFLOWER CARROTS (JUMBO SIZE) ENGLISH CUCUMBERS GARLIC-PEELED GINGER HERBS LETTUCE (ICEBERG, ROMAINE) PEAS (SNOW, SUGAR SNAP) PEPPERS (RED,