The Market Report - By Ken Klein
2/7/09
Greetings Food Lovers!
In the thirty years of operating Kleins Supermarket, I have
never witnessed such a multifaceted approach of damaging weather conditions
such as we are presented with now.
Last week, I received a flood of emails alerting the industry
of intense storms approaching the California coast from the deep Pacific
Ocean region. This time of year, the central growing regions of California
receive about a half inch of rain. The first storm’s wallop was promising
5 to 6 inches in a 2 day period, with mountain snows promising 3 to 10 feet
of powder. This, plus the second storm, will stop workers from getting to
the fields, hamper transportation to the east and will curtail distance
shipping due to some of the harvest will just not have enough life to remain
stable.
Many Florida vegetable packinghouses remained at a standstill
Jan. 21 as Florida grower-shippers recover from nearly two weeks of freezing
temperatures that devastated their crops. State agricultural officials say
produce shipments have declined significantly and Florida ’s growers will
likely sustain hundreds of millions of dollars in losses. Packings have
ground to a halt in Immokalee — the principal winter tomato and bell pepper
growing region — and in Homestead and Belle Glade where growers grow and
pack other vegetables such as green beans, sweet corn and squash.
Fred Moore, a salesman for Five Bros. Produce Inc., Homestead
, said no one has been running green beans, which suffered up to 95% damage.
He said the Miami-Dade County production region also suffered up to 70%
losses on yellow and zucchini squash. Five Bros. tried to run a crop of
beans on Jan. 20 but because of the load having too much frozen and dehydrated
damage, the packer after an hour had to stop and dump all the beans into
the cull shoot, he said. “It is absolutely devastating what we have suffered
here,” Moore said Jan. 21.
Growers in Homestead, along with Belle Glade and Immokalee,
which also sustained heavy freeze damage, grows beans through late April
and early May. Spring bean plantings, however, remain unscathed and should
start on-time as normal in early March, Moore said. On Jan. 21, the U.S.
Department of Agriculture reported light supplies of green beans, with bushel
cartons at $45, compared to the market high of $11 at the same time last
year. The freeze is affecting markets of Mexican green beans, with 30-pound
cartons up to $32.95, more than twice the f.o.b. at the same time last year.
Buyers of Florida winter vegetables and tomatoes should expect
smaller volumes and higher than normal prices until the new spring plantings
mature.
Many of south Florida ’s packinghouses that would normally
be busy with green beans, sweet corn, bell peppers, squash and tomatoes
remain at a standstill, causing some prices to shoot to very high levels.
On Jan. 26, the U.S. Department of Agriculture said it expected Florida
beans, peppers and tomatoes of all types to decline in movement during the
next two weeks. We should see supplies down up to 75%.There will be a roller
coaster ride of supply and quality issues for the next two months.
Winter is prime time for lettuce in Yuma , Arizona with nearly
all of California ’s major lettuce grower-shippers relocating there to keep
leafy green supplies consistent. Growers continued to face muddy conditions
in Yuma , Ariz. , the week of Jan. 25 as a powerful storm dropped record
rainfall days before in desert growing region. Crews have been struggling
to get harvesting equipment into the fields, sometimes towing equipment
with trucks, and were forced to stop work during heavy rains.
Produce Talk
California Citrus
Growers were able to get into the fields and pick navel oranges;
however, more rain is expected. There is good availability on choice and
fancy fruit for the week and prices are holding steady. The lemon market
is steady on larger sizes, but smaller sizes are becoming tight and prices
are increasing. Ample supplies of Minneola tangelos, Pummelos, Blood oranges,
Cara Caras’ and
Clementines are available.
Florida Citrus
Grapefruit is peaking on the smaller sizes with limited amounts
of those real big ones we love to eat.
Growers are packing juice oranges, which are running on the
bigger sizes. Honey tangerines have good supplies on all sizes and we should
see great quality lasting into March. Temples and Orlando tangelos are in
great shape even with all the talk of gloom and doom from the Florida freeze.
Honeybell tangelos are finished for the season.
Grapes
The grape market is sloppy on both red and white seedless
varieties. Prices are everywhere with a variance of up to $10 a box depending
on size and color. There are great deals out there but the higher prices
are going for those extra large gems.
Strawberries
It has been over a month since I last saw some nice strawberries
and this situation will remain for some time. Southern California suffered
heavy rains last week. If the rains continue to taper off there should be
some availability early this week. Any strawberries shipped will show rain
damage and have a lighter color. Shipping farther than the Midwest was not
recommended; however, orders were still taken.
Central Mexico still has good supplies and Florida ’s supplies
are increasing, but expect the market to tighten towards the end of the
week. Expect most of the berries to be arriving from Mexico during the next
few weeks.
Cucumbers
The demand for cucumbers from Mexico should increase dramatically
by the middle of the week due to the shortage in Florida product. There
will be substantial market increases in Nogales on Mexican product as demand
grows and production is limited. The growing regions of Mexico received
rain last week, which halted some of the harvest. Supplies were light, but
should improve this week.
Asparagus
Asparagus remains high due to most shippers beginning to transition
from 11 lb. to 28 lb. packs. Mexican grown asparagus will be the majority
of the volume, although some Peruvian imports will continue to arrive in
Miami . The market could have a slight increase in demand this week, but
no price changes are expected.
Green Beans
The prices are going up and will remain higher as all product
is being sourced from Nogales in Mexico due to the freeze earlier this month
in Florida . Expect prices to remain high until late February when product
becomes available again from the East Coast.
Broccoli
Demand is down and good supplies of broccoli are available
from multiple growing regions. Shippers are making deals daily to try to
spark movement.
Green Bell Peppers
We will begin to feel the affects of the Florida freeze this
week. Normal volume is expected from Mexico , but high demand for product
will come from buyers that normally purchase from Florida . The high demand
for product from the East Coast will cause a dramatic upward trend in pricing
until Florida ’s spring crop begins. Also, Mexico had rain last week, which
prevented some shippers from harvesting. Due to this gap in harvest, supplies
were light, but are expected to improve as February begins.
Tomatoes
Supplies of round tomatoes continue to be steady. Florida
has cleaned up most of its supplies that were harvested prior to the freeze.
Expect to see prices climb within a few weeks. Most of the volume will be
from Homestead , Florida as growers were not as adversely affected by the
cold weather.
Plum tomatoes also remain in good supply. We should continue
at these low prices for another week until supplies become more limited.
Quality has been exceptional on all Roma tomatoes. There are ample supplies
of grape tomatoes for the next few weeks. Cherry tomatoes are very limited
at this time and are arriving from Mexico .
Zucchini
Prices remain reasonable on zucchini considering the damage
done in Florida , but yellow zucchini is extremely high. The rains in Mexico
are the reason behind these high prices since yellow is more delicate than
green and shows the sign of rainy weather.
Celery
Demand currently exceeds supply. Rain and cooler weather in
California has created shortages. Prices are up about 50 cents a bunch.
Have a fruitful week!
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