Thursday, October 4, 2012

Fresh From The Farm Produce Market Update


October 3rd, 2012
We are expecting freight rates to increase upwards of 20 percent in the next 30 to 45 days as the holiday season approaches!

POTATOES
 Burbank potato production has begun in Idaho.  Expect supplies to be sporadic as some Idaho packers will bounce back and forth between Burbank’s and Norkotah’s for the next couple of months. Be aware you will now see a split market between the two varieties, however the difference may not be as pronounced as it normally would be due to excessive supplies of both varieties. Overall Russet potato pricing is holding steady at a very low level, while demand remains on the slow side.  Quality has been good on both varieties.

Red and yellow potatoes out of Idaho are now available, heavy to the larger sizes with good color. Yellow
potato supplies will be very limited over the next two weeks as production is just beginning. Western
Idaho transportation remains difficult with higher freight being reflective of the truck shortage.

With red potatoes North Dakota growers have plenty on hand, but demand is light.  Wisconsin growers have average demand, and report that supplies will continue to be tight through the end of October.  Idaho operations began packing last week.  Washington growers report that they are having average demand and good quality red potatoes.  Colorado growers are currently shipping off the field; however, harvest has been hampered by rain.  Additionally, Colorado growers appear to have reduced the amount red and yellow potatoes produced versus a year ago.
LETTUCE
Supply and quality are in good shape on pretty much everything out of the Salinas Valley currently.  Markets are have come down from last week.  We have had very warm temps over the last four days, 90-95 in Salinas which is about 15 degrees above normal.  It is cooling off today and will continue to cool off into next week.  Our field inspectors are not seeing any quality issues at this time. We are expecting iceberg to be in good supplies for the next couple of weeks. Harvesting in Huron will began in the next 2 weeks. Romaine is very similar to iceberg, with good supplies for the next few weeks. We are seeing demand on Romaine increase as local product is finishing and that demand is being shifted to the west. With the higher temperature please be aware that there might be some tip burn on the product. Green and red leaf lettuces are both in good supplies and product is weighing in around 24 pounds, which is normal. Butter leaf is a little light in supplies this week and the product is also light in weight.
ONIONS
The yellow onion market is stable on all varieties and sizes and their quality is excellent. Overall, harvest in the Northwest is wrapping up, and most onions being harvested are going directly into storage. There is speculation that after harvest wraps up, there will be less pressure to move onions, leading to price increases. The red onion market is currently steady, but will see price drop in the next few weeks as more supplies enter the market out of Washington. Quality on all three colors has been excellent, and should only get better in the coming weeks.
TOMATOES
The tomato market continues to be weak as a result of slack demand.  Several Eastern growing regions are cleaning up as harvesting winds down, with quality issues being reported.  We expect Quincy, FL to begin harvesting next week. That growing area has experienced a lot of rain over the past 1 ½ months so quality might be an issue.

California continues to be the market maker for round tomatoes and will continue to be until the central and southern Florida crops begin to be harvested which will be around the 1st of November. Grape tomatoes continue to be plentiful this week as they are being harvested in the East, West and Mexico.  The roma supply continues to be practically non-existent in the East with most volume coming from Mexico.

Vegetables
CUCUMBERS
Western Markets:  This market is flat.  A few growers out of Mexico have started in with fruit crossing into Nogales. 
Eastern Markets:  Georgia product is flooding the market; prices are about as low as they can go.   Michigan is slowing down with cooler weather, but it is not enough to impact the market.  Quality is good in all areas.

EGGPLANT
Western Markets:  The Market is steady.  The Central Valley is lighter in supplies but Baja is picking up the slack.
Eastern Markets:  New crop out of Georgia continues to have excellent quality; demand is steady which is keeping the markets flat.

BELL PEPPERS
Western Markets:  Green bell pepper supplies from California continue to be light at this time.  The quality is good to excellent.   Some growers are starting to wind down for the season.
Eastern Markets:  This market continues to be flat.  Michigan is still going and now Georgia has entered the market.
SQUASH
Western Markets:   Santa Maria will continue with supplies for about another.  Fresno will increase in about 7-10 days, and Nogales has started in a light way.
Eastern Markets:   The squash market is stable. Eastern squash production is now focused around Georgia, but Michigan continues to have product available.  No quality issues to report.

BROCCOLI / CAULIFLOWER
The market for both broccoli and cauliflower is relatively strong and steady.  This is similar to what we saw last week, supplies are on the light side and quality, especially on Cauliflower, is fair at best.

 CARROTS
Carrot’s availability and quality is good.  With warmer weather, sizing is good as well.

CELERY
Salinas and Santa Maria are the primary shipping locations.  The supply is steady out of both areas.  The quality is good.  Prices and demand are anticipated to decrease as the week progresses.   Michigan is winding down and any cold weather could hasten the end of their season.

GREEN ONIONS
This market has settled.  Demand continues to be steady.  Pencil onions are available and jumbo product has loosened up a bit.  Look for this to continue as new growing regions come on throughout October.

ASPARAGUS
This market is firm and Jumbo product continues to be tight. Overall quality is good. California is expecting to wrap up over the next 3-4 weeks.

Fruit
STRAWBERRIES
We are dealing with an industry wide problem with supplies and quality of strawberries out of California. record temperatures started hitting the strawberry growing areas on Sunday and continued thru today (90 to 100 + degrees) Forecast is calling for a cooling trend going into the weekend. This heat has hurt the quality of the strawberries being harvested this week. Issues to be aware of will be sunburn (bronzing), over ripe fruit, bruising and decay. Arrivals with 15 to 20% defects would be considered a good arrival. Sizing will also be affected and will downsize quickly as the fruit ripens quicker. Stems strawberries will be and are very limited and will be for the next few weeks. Strawberry crews were pulled out of the fields by 11am the last three days due to the high heat in the growing areas. This has put us into a demand exceeds supply situation. We will do our best to get your orders covered in full but expect loading delays and last minute loading location changes. All shippers are in a heavy fill rate situation we do not anticipate these arrival conditions to change in the near future. Shippers are being very selective as to where and to whom their fruit is being shipped to because most packs, if not all, will have issue upon arrival. It will take couple weeks to get thru the quality issues in the fields from this heat. Market is firm.

RASPBERRIES
These record temperatures in the Raspberry fields have put these plants to sleep. Most of the fruit that was ready to be harvested was burned up and will be thrown away. Supplies are very limited with moderate demand. Quality is fair at best. Market is firm.

BLACKBERRIES
High temperatures will shut down the plants from producing, so look for supplies to get very limited as this week moves on. The quality of the fruit will also be hurt due to these warm temperatures. We are in demand exceed supply situation. Look for this market to stay tight for the next month. Santa Maria and Mexico has started packing some light numbers of blackberries.

BLUEBERRIES
Good demand with lighter supplies is firming this market. Quality is fair on the NW fruit. The main pack size is switching to 4.4oz with a few 6oz still being packed. The first blueberries out of Argentina have arrived in Miami. Expect good quality but light volume out of Argentina and high prices.

GRAPES
Market is very strong as we are all fighting color due to our warmer than normal temperatures which do not help bring on the color. The fruit is very high in sugar, but hopefully when things cool off we will get some better color. There is a chance that the fruit may not color up due to its high sugar content, and there might come a time that we will have to start packing lighter colored fruit. We will keep you posted as far as that is concerned. Expect the market to stay strong through November unless the color comes then we should stay fairly steady.
STONE FRUIT
Shippers are finishing up early this season on all fruit. Peaches and Nectarines are for the most part done for the season other than some large Peaches still available. Plums look to remain available for the next week or so in a light way. California pomegranates have started with good supplies. Persimmons have started early in a light way.
 APPLES / PEARS
Apples & Pears - nothing significant - few things more pronounced for us this week. Small everything (Anjou & Bartlett as well as all apples) continues to be in high demand (125ct and smaller). Demand is across all sectors (export, domestic retail, and domestic foodservice). Availability of the mid sizes so far is adequate to meet demand and then a few extra. Growers have started harvesting Braeburn crop a week ago. We haven't started harvesting any new varieties this week. Next in line is Cameo in 7-10 days then Pink Lady at end of month.

AVOCADOS
Mexico’s Flora Loca crop is begging to wind down. Their new main crop will be ready to come to market as soon as the Flora Loca is done. California volume looks good, but will begin its down turn further into October as we start to see the end of California’s season.

ORANGES
Market steady and not much change from last week, the overall quality is fair as we are on our way to the finish line with Valencia’s and will hopefully start navels by the end of this month. We are still tight on 113’s and 138’s with good supplies of 72’s and larger the fruit does still have excellent sugar and juice content. The new navel crop looks to be very good as far as quality and with our warmer than usual weather the sugar should be better than in previous years when we start.

GRAPEFRUIT
Florida and Texas is shipping grapefruit.

LEMONS
Market all over the board due to fruit coming from Chile, Mexico, D-2 and D-3, we expect to see the Chilean finish by this next week and hopefully the D-2 will finish in the next couple of weeks as well, which should help stabilize things. The best quality would be out of D-3 as the fruit is very strong and firm, with less gas hours than usual. We are peaking on 140’s and 165;’s on our D-3 fruit and will go very strong for the next 3 months out of the desert.
LIMES
Supplies are good on all sizes. Past rains in the growing area is and causing some quality issues.

CANTALOUPES
Market is steady as we are starting to get better volume than what we have had over the past few weeks. We will have fruit for the next 2 weeks out of the Westside and then transition to the desert for the fall melon deal. The overall quality is very good and interior color and condition

HONEYDEWS
Market extremely tight as we are getting less volume than expected and starting to finish on the Westside, but going with light supplies out of the northern Ca. area expect the market to stay steady until we start out of the desert in a couple weeks. The overall quality is very good with high sugar and excellent interior condition.

WATERMELON
Market is steady. Continued demand exceeds on s/less watermelon. Most availability will be in bins on s/less. Availability on seeded watermelon is sporadic. W/melon will start crossing in small volume through Nogales by the weekend. Additional growers will come online by mid October

BANANAS
Supplies are steady and demand continues to remain strong, this market is unchanged.

PINEAPPLES
Production is good. Markets will start to tighten around December.

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