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, YELLOW) SQUASH (ZUCCHINI, YELLOW) STRAWBERRIES TOMATOES (ALL) TRANSPORTATION WEEKLY MARKET REVIEW November 13, 2014 Overview Quality and availability issues continue for leafy greens and many mixed vegetable items as Salinas comes to a close and Yuma begins. Demand has increased with the approach of the Thanksgiving holiday. Avocado supplies are good on 60s and 70s, and there are deals on #2 s as well. Overall berry production will improve significantly into January and through March. Strawberries market is limited and decreasing in supply weekly. Transportation Trucks continue to be in tight supply in all Western districts, and freight rates have advanced (Washington, Idaho, Oregon, California, and Arizona). Fewer drivers are available during the holidays for various reasons, including ethnic drivers returning to visit their home country. In the Northwest, the annual Christmas tree hauling season is getting underway, creating additional competition for apple, pear and onion shipments. Weather Salinas, CA There is a 50% chance of rain for Salinas today. Through the weekend, near average highs will continue along the coast, while inland highs remain several degrees above average. Morning lows will be in the mid-40s to low 50s. 51/70 48/70 48/70 48/70 1
Yuma, AZ Temperatures have cooled from low to mid-80s early this week. Wind gusts as high as 25-30 mph are possible tomorrow across southeastern California and southwestern Arizona, bringing down maximum temperatures closer to averages of 77-83. Highs will drop below average through the weekend. 59/81 59/82 56/80 56/79 Avocados Supplies are improving since last week s rain that delayed arrivals earlier in the week. Size structure is also is improving on 48 s and larger, deals on smaller fruit are drying up. Pricing and volume should remain stable this week. Maturity is improving every week, but fruit will have a tendency to remain green when ripe, and have a thicker skin making it difficult to detect ripeness. Lenticel damage is evident (normal for this time of year). California is complete on their season. Early season fruit may arrive in late December. Chile has a lower volume crop and they are finding better markets domestically and in Europe. Berries Limited availability overall. Conventional and Organic production DECREASING each week. Prices are very HIGH. Product is very tight on strawberries. 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, 2015. 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: Conventional volume is still low. 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: Limited availability overall. Conventional and Organic production DECREASING each week. Prices are very HIGH. 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 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. 2
Lemons: Approximately 40% has been picked for the season from D-3 in Yuma. Fruit is nice and strong; typical for Yuma (excellent quality). Peaking 140/115/165. Plenty of larger fruit available. 165 and smaller sizes are tight. Lemons are packing and shipping from Santa Paula and Yuma (Limoneira Marlin Division). D-2 Ventura County is finished. Light picks have started in D-1 Central Valley. Quality is looking good. Chile has finished shipping. There is Chilean product available in Santa Paula. Good quality and size is large. 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. Market is getting stronger. Seeing prices jump across the board. Navel Oranges: The water shortage in the West will cause fruit sizes to yield plentiful small sizes (88s, 113s and 138s) through the 2014-2015 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. 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 Scarlett grapefruit 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. Clementine oranges 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 moving higher in response to the shortage on iceberg and romaine. Supplies are very light on all mix leaf. Quality has improved and both red and green leaf will be 22-23 lbs. per case with 9-11 heads. Iceberg Lettuce: While the ongoing drought in California is a major long-term concern, it is the short-term weather that has caused immediate concern. Iceberg lettuce is in short supply and prices have been much higher than normal for the past few weeks. Increased nighttime temperatures have caused lettuce plants to grow at a much faster rate than expected, creating both quality and quantity problems. Tight availability and high prices will continue through the month of November. Romaine: Supplies will be close to normal this week. Quality is expected to be much stronger than last week in Yuma. Weights will be 37-39lbs per case with 11-12" per head. Issues such as seeder and fringe burn are not present at this time. Romaine Hearts: Steady to below normal supplies this week with some weather related quality issues of seeders and occasional twisted heads. Eastern and Western Vegetables Green and Red Bell Peppers: The market is moderately active. In the West, Coachella is finishing on green bell peppers, while new shippers are gradually entering the market in Nogales, with Mexico in full production by late November. Florida is now the primary district in the East. Red bells will be in extremely tight supply through early January. Oxnard is winding down, and in addition to fewer planted acres, Coachella is behind harvest schedules. Prices will continue to advance. Cucumbers: A wide range in quality and price exists in Nogales, with rain damaged cucumbers selling at a discount to premium quality product. Florida has good supplies with good quality. English Cucumber: Supplies are gradually improving as product becomes available out of Mexico. Expect to see improvement as the weeks continue. Green Beans: Production is limited in all growing areas, East and West. Florida will have light supplies through November; Coachella is winding down with fair quality, while supplies are light in Nogales with the Mexican harvest just getting underway. Squash: 3
Zucchini & Yellow: Production in Florida is limited due to previous adverse weather conditions causing bloom drop. Production is below normal in Nogales, and the increased demand from Easter buyers is pushing prices higher for both zucchini and yellow squash. Acorn, Butternut, Spaghetti: Supplies are adequate for all varieties in Florida and Nogales. 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 there will be plenty of grapes through December. Currently, there is quite a bit 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 had been uprooted. The fresh herb crop had been destroyed in Southern Baja and the crops will 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. Melons 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 due to more melons crossing through Nogales. The honeydew market is very similar to cantaloupe, whereas large sizes are plentiful and smaller sizes (6 s & smaller) are still very tight. Quality on honeydews is mixed. Watermelons Mexican supplies are in good volume and quality this week. The growing regions have been hit with rain once again. It is not yet determined how this might affect supplies. The market can tip either way this week, but it seems to be leaning toward an adjustment down. Moving into the second half of November, Mini Seedless will be winding down with several shippers. Mixed Vegetables Artichokes: Lighter availability as temperatures are much cooler now in Salinas. Quality is excellent, prices are steady. The best availability is on 30's, and 36's. Supplies of 12's and 18's are very light. Supplies of large loose and small loose to continue to be very limited. Prices are higher on 12's, 18's, and 24's. Steady prices on 30's and 36's. 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: Supplies this week on broccoli will be very light and should remain lighter for the coming weeks as transition takes place to the Yuma/Brawley growing regions. The quality over the last few weeks continues to improve allowing for more harvest on a daily basis. Quality is good with the exception of some with larger stalk size and a slightly knuckled appearance depending on the location. Expect the market to continue to be active over the next few weeks as Thanksgiving demand picks up with local broccoli being done for the season. 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 4
ft.) in the Cuyama Valley of Southern California. Prices will trend higher until the harvest returns to the Southern San Joaquin Valley (Bakersfield). Cauliflower: Supplies are expected to be well below average this week and next as the season in Salinas finishes. Quality continues to remain strong overall with a majority of 9s and 12s. Demand is strong due to the approach of Thanksgiving. Quality is very good with white curds, uniform size and good green jacket leaves. Celery: Steady supplies with strong demand due to the Thanksgiving holiday push. Salinas is finishing with very little large celery (24s), mostly 30s and 36s are expected. Weights are between 58-60 lbs. with dark green color and meaty shanks. 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: Salinas s production is finishing up with great condition and weight. Yuma is ready to harvest by the end of the week. Green Onions: Green onions are in plentiful supply for the Thanksgiving holiday. Quality is best out of Mexico. Markets range low for pencils, moderate for both medium and extra-large sizes. Kale (Green): Plentiful supplies continue. Overall quality and appearance continues to be very nice. Bunches are averaging 9-11 in length and showing good green color. Mache: Adequate availability. Napa: Limited supplies, high prices. Parsley (Curly): Supplies continue to decline. Prices continue to increase. Parsley (Italian): Currently, supplies are steady and expected to remain so for the next several weeks. Quality and appearance continues to be very good with 9-11 inches in average length. Red Cabbage: Salinas red cabbage is finishing and starting in Yuma the first of December. Current condition is very large and heavy. Prices remain high though movement has slowed somewhat. 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 remains fair and market steady. Overall quality is excellent with 21-23 lbs., full bunches and lengths of 10-11. Salinas s production is finishing and Yuma is expected to start on Monday with lighter numbers for the first week. Spring Mix: Steady availability. The spring mix market is stabilizing. Expect to notice continued improvements. Onions Demand is good and quality is excellent. There is an oversupply of onions. Fob s are steady, and there are no expectations of any increases in fob pricing. Potatoes (Idaho) Demand is strong enough to keep supplies moving out, and fob s are firm. Trucks are extremely tight. Tomatoes 5
Round, Roma, Plum, and Grape: The tomato market has eased some on round tomatoes, cherry tomatoes and grape tomatoes. The Roma market has firmed up considerably and could possibly experience GAPS in production due to weather impacts in Central Mexico, Florida and The Baja. Should expect to see a firm Roma market through Christmas. Florida production is below expectations as well due to rain and late harvesting/ ripening schedules. Grape and cherry production will remain light on the East Coast, while production will continue to improve from Baja and Central America. Tree Fruit All sizes are available on red plums and 45VF and larger available on black plums. There are good supplies on persimmons, pomegranates, and Asian pears. Granny Smith apples are starting to clean up on small sizes and bags. 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 lots of premium and WXF. Prices on Red Delicious and Gala apples are very attractive, on 88s and larger. Storages are full. Weather is turning colder and should put an end to remaining harvest. 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 and Christmas trees are starting. Expect trucks to remain tight through the holidays. Commodity Price Expected Trend Quality Avocados-Mexican Low to Moderate Good Avocados-California Moderate End of Season Berries Blackberries Moderate Good Blueberries High Good Raspberries Moderate Good Strawberries High Fair California-Arizona Citrus Grapefruit (Texas) Moderate Good Lemons Moderate - Good Limes Moderate - Excellent Oranges Navels Moderate Good Pineapple Moderate Good California Lettuce Green and Red Leaf Moderate Fair to Good Iceberg High Fair Romaine High - Fair Romaine Hearts High Good Eastern & Western Vegetables Cucumbers Moderate Good Green Beans Moderate to Extreme Fair Green Bell Peppers Moderate to High Good Red Bell Peppers High Good Yellow Squash High Good Zucchini High Good 6
Grapes & Tree Fruit Grapes-Green Seedless Moderate to High - Good Grapes-Red Seedless Moderate - Good Plums Moderate - Good Melons Cantaloupes High 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 to High Excellent Cilantro Moderate Very Good Frisee Moderate - Good Fennel/Anise Moderate - Good Garlic, Peeled Extreme - Good Green Cabbage High Excellent Green Onions Low to Moderate Fair Kale (Green) Moderate Very Good Mache Moderate - Good Napa High - Good Parsley (Curly) 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 Moderate - Good White Moderate - Good Yellow Moderate - Good Potatoes (Idaho) Idaho Russets Moderate - Good Tomatoes Round, Roma, Plum Extreme Unstable Poor Grape Extreme Unstable Poor 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 7