Field Report

5 March 2010

Apples/ Pears: Washington continues packing storage apples. Shippers are struggling to meet demand on smaller sizes. As we get further and further into the storage season, supplies of Red and Gold Delicious and Granny Smith will keep dwindling. Expect prices to march higher until new crops are harvested at the end of the summer. Mid to larger sizes are more ample in most varieties. This shortage is attributed to frosts that occurred both early and late in the growing season. The quality and pricing on Anjou Pears are good and holding steady.

Avocado: The final shipments from Chile will arrive this week. California production is picking up, but the harvest is slow, allowing fruit to gain size and to keep supply in balance with demand. This year’s crop looks to be abundant. Mexico is now the primary growing region. Growers are harvesting conservatively so they don’t flood the market.

Bell Peppers: Supplies continue to be very tight. Florida was decimated by a freeze in January and is still experiencing cool wet weather. Mexico is also suffering from poor growing conditions resulting in light supplies and small sizes. Demand is strong, driven by the East Coast. California’s spring pepper season will start in April. Until then expect higher prices.

Berries: Strawberries- Demand for California strawberries has increased, pushing prices higher. Quality has suffered recently from wet weather. Florida is also experiencing limited supplies and quality issues because poor growing conditions. Within a month, Oxnard will be the predominant strawberry region. Crossings from Mexico are steady, but quality is only fair. Raspberries- This market is steady. Supplies and demand are light, but balanced. Quality is good. Blackberries- Blackberry supplies are still scarce and quality is only fair. Mexico is the primary producer and rain has been falling in the growing regions. Prices are high. Blueberries- Blueberry production was significantly impacted by the earthquake in Chile. Major roads are damaged, but open. Growers and shippers are struggling to get fruit to ports and airfields which are working at half speed. The USDA is restricting imports for the next couple weeks. Shortages will not be felt for at least 10 days.

Broccoli and cauliflower: Ideal growing conditions in the Central Valley and Yuma region resulted in a glut of these items through mid February. We are now in the midst of the inevitable gap that follows any over supply. Supplies are lower and the market is higher. Expect supplies to be inconsistent throughout the season.

Citrus: Oranges: Supplies are peaking on 72s, 88s, and 56s. 113s and 138s are less plentiful and will be increasingly scarce heading into the spring. Quality is excellent and flavor is improving weekly. Lemons: Demand is brisk and supplies are tight for smaller sizes. The desert lemon crop is of exceptional quality, but only two thirds the size of last year.

Grapes: The grape market was already facing short supplies of both red and green seedless grapes before the earthquake devastated Chile. Infrastructure and distribution issues are preventing Chilean grapes from getting to market. The picture is still incomplete on the impact of the earthquake, but already supplies of grapes are scarce and prices have skyrocketed.

Lettuce: The desert lettuce season is maturing and moving closure to its conclusion in late March. Supplies have peaked and will become smaller and the season moves forward. The industry will face some challenges over the next few weeks. Due to ideal growing conditions, growth was accelerated and product was plentiful. Some fields were bypassed due to a lack of demand. Now production levels are more than ten percent below normal. In addition, processors are buying up acreage. Many indications are that this market could spike higher.

Onions: Onion prices are moving even higher. This year’s Pacific Northwest harvest was of inferior quality to historic averages and well below last year. Shippers discarded upwards of 40 percent of the crop due to defects. Demand is high, but has leveled off. Supplies keep shrinking. Many shippers are managing inventories to cover contracts and meet orders from existing customers. Mexico is no help as most of its crop is being consumed before it can be exported. Conditions will not improve until April when Texas and New Mexico come on line. These regions are behind schedule due to poor growing conditions. The impending gap will see even higher pricing.

Tomatoes: This market is in turmoil. We keep receiving communication from our suppliers that this market is heading higher. Demand significantly outpaces supply for all tomatoes. Florida is still off-line for production, and the recovery of the industry is stalled by cold wet weather there. The supply chain has moved to Mexico and Southern California. Those regions are experiencing inconsistent quality attributed to wet and cool weather. Prices keep climbing rapidly and will stay high throughout most of the month at the least.