The North American winter season has been relatively mild thus far. That was until mother nature decided to remind us all who’s in charge by freezing the sunshine state and hurling a bomb cyclone up the East Coast. New York City received more than 10 inches of snow, and areas of Massachusetts reported 30 inches.
A week ago, the Midwest shivered in a bout of arctic air. Now, that air mass is pushing East and South. Especially cold, snowy, and windy weather continues in the forecast for much of the continental U.S. At least we’re all in this together.
Northeast retail capacity is stretched thin. A winter storm with the size and strength of ‘Kenan’ typically prompts mild panic buying from consumers. Trucks, which have safer alternative lanes, are hesitant to fight the snow and ice. In addition, some distribution centers are limiting hours due to covid-related absenteeism. Needless to say, supply chains are going to be a bit backed up in the Northeast.
While demand is slowing in the Northeast, Florida’s supply is also waning. On early Sunday morning, Florida’s temperatures reached the freezing point as far south as Immokalee, and similarly cold temps are expected for early Monday morning.
Some Florida crops are better prepared than others for the cold. Cucurbits, such as cucumbers and squash, are susceptible to cold and don’t need freezing temps to have reductions in yield. Likewise, green beans prefer the warmth. Beans have doubled in price in the past two weeks, from $12 to $24, and are poised to go higher.
Cold temperatures will, at a minimum, slow plant growth, reducing the level of harvesting to occur this week. If a field does endure damage-causing temperatures, it often takes 3-5 days to assess the full impact.
Strawberry growers are concerned and prepared for freezing temperatures, given their significant investment is at risk. Overhead irrigation provides the ability to keep the plant at 32 degrees, preventing major damage by creating a protective layer of ice. This weekend, growers in Plant City worked through the night to ensure that irrigation systems were effective during the coldest hours. Anticipate reductions in harvesting this week as ripening is delayed and some yield reduction from damaged blossoms.
Leading up to Valentine’s Day and until the end of February, Mexico ships the highest volume of strawberries. Given the higher freight costs to reach the Eastern U.S., FOB prices for Texas crossings approximate a $3 discount to Florida FOB prices. If Florida’s supply is lessened and demand remains strong, prices may rise, avoiding their typical descent through February.
Strawberry prices to remain active.
ProduceIQ Index: $1.12/pound, +0.9 percent over prior week
Week #4, ending January 31st
Blue Book has teamed with ProduceIQ BB #:368175 to bring the ProduceIQ Index to its readers. The index provides a produce industry price benchmark using 40 top commodities to provide data for decision making.
Florida tomato and bell pepper crops are more vulnerable to cold-related damage, partly because the protection tools are limited. Growers don’t have overhead irrigation as an option for these types of fruit, though growers will raise and saturate groundwater for some benefit. In some instances, growers will incur the substantial cost of covering a crop with cloth. In some regions, growers may even fly helicopters to push warm air down to the plants.
On the opposite coast, cauliflower and broccoli markets are in recovery. Increasing supply out of Arizona and California is bringing relief to elevated prices. Cauliflower prices are down -43 percent over the previous week, and broccoli markets are down -20 percent. Cold and wet weather isn’t out of the forecast yet and so their fate isn’t set.
Cauliflower is no stranger to volatile prices, and this year doesn’t disappoint.
Bringing a sliver of hope to buyers, lime prices are down -5 percent over the previous week. However, prices are still at record highs, near $50 per case, at least twice the ‘normal’ price. Colombian limes have found their way into Eastern markets and are bringing relief to exacerbated markets. Rain in Mexico’s growing regions is delaying harvest and limiting supply. Expect Mexican supply to remain in flux for the foreseeable future.
Lime prices have buyers pondering how well do lemons go with Corona.
The ProduceIQ Index is the fresh produce industry’s only shipping point price index. It represents the industry-wide price per pound at the location of packing for domestic produce, and at the port of U.S. entry for imported produce.
ProduceIQ uses 40 top commodities to represent the industry. The Index weights each commodity dynamically, by season, as a function of the weekly 5-year rolling average Sales. Sales are calculated using the USDA’s Agricultural Marketing Service for movement and price data. The Index serves as a fair benchmark for industry price performance.
And winter came…
The North American winter season has been relatively mild thus far. That was until mother nature decided to remind us all who’s in charge by freezing the sunshine state and hurling a bomb cyclone up the East Coast. New York City received more than 10 inches of snow, and areas of Massachusetts reported 30 inches.
A week ago, the Midwest shivered in a bout of arctic air. Now, that air mass is pushing East and South. Especially cold, snowy, and windy weather continues in the forecast for much of the continental U.S. At least we’re all in this together.
Northeast retail capacity is stretched thin. A winter storm with the size and strength of ‘Kenan’ typically prompts mild panic buying from consumers. Trucks, which have safer alternative lanes, are hesitant to fight the snow and ice. In addition, some distribution centers are limiting hours due to covid-related absenteeism. Needless to say, supply chains are going to be a bit backed up in the Northeast.
While demand is slowing in the Northeast, Florida’s supply is also waning. On early Sunday morning, Florida’s temperatures reached the freezing point as far south as Immokalee, and similarly cold temps are expected for early Monday morning.
Some Florida crops are better prepared than others for the cold. Cucurbits, such as cucumbers and squash, are susceptible to cold and don’t need freezing temps to have reductions in yield. Likewise, green beans prefer the warmth. Beans have doubled in price in the past two weeks, from $12 to $24, and are poised to go higher.
Cold temperatures will, at a minimum, slow plant growth, reducing the level of harvesting to occur this week. If a field does endure damage-causing temperatures, it often takes 3-5 days to assess the full impact.
Strawberry growers are concerned and prepared for freezing temperatures, given their significant investment is at risk. Overhead irrigation provides the ability to keep the plant at 32 degrees, preventing major damage by creating a protective layer of ice. This weekend, growers in Plant City worked through the night to ensure that irrigation systems were effective during the coldest hours. Anticipate reductions in harvesting this week as ripening is delayed and some yield reduction from damaged blossoms.
Leading up to Valentine’s Day and until the end of February, Mexico ships the highest volume of strawberries. Given the higher freight costs to reach the Eastern U.S., FOB prices for Texas crossings approximate a $3 discount to Florida FOB prices. If Florida’s supply is lessened and demand remains strong, prices may rise, avoiding their typical descent through February.
Strawberry prices to remain active.
ProduceIQ Index: $1.12/pound, +0.9 percent over prior week
Week #4, ending January 31st
Blue Book has teamed with ProduceIQ BB #:368175 to bring the ProduceIQ Index to its readers. The index provides a produce industry price benchmark using 40 top commodities to provide data for decision making.
Florida tomato and bell pepper crops are more vulnerable to cold-related damage, partly because the protection tools are limited. Growers don’t have overhead irrigation as an option for these types of fruit, though growers will raise and saturate groundwater for some benefit. In some instances, growers will incur the substantial cost of covering a crop with cloth. In some regions, growers may even fly helicopters to push warm air down to the plants.
On the opposite coast, cauliflower and broccoli markets are in recovery. Increasing supply out of Arizona and California is bringing relief to elevated prices. Cauliflower prices are down -43 percent over the previous week, and broccoli markets are down -20 percent. Cold and wet weather isn’t out of the forecast yet and so their fate isn’t set.
Cauliflower is no stranger to volatile prices, and this year doesn’t disappoint.
Bringing a sliver of hope to buyers, lime prices are down -5 percent over the previous week. However, prices are still at record highs, near $50 per case, at least twice the ‘normal’ price. Colombian limes have found their way into Eastern markets and are bringing relief to exacerbated markets. Rain in Mexico’s growing regions is delaying harvest and limiting supply. Expect Mexican supply to remain in flux for the foreseeable future.
Lime prices have buyers pondering how well do lemons go with Corona.
The ProduceIQ Index is the fresh produce industry’s only shipping point price index. It represents the industry-wide price per pound at the location of packing for domestic produce, and at the port of U.S. entry for imported produce.
ProduceIQ uses 40 top commodities to represent the industry. The Index weights each commodity dynamically, by season, as a function of the weekly 5-year rolling average Sales. Sales are calculated using the USDA’s Agricultural Marketing Service for movement and price data. The Index serves as a fair benchmark for industry price performance.
Mark Campbell was introduced to the fresh produce industry as a lender for Farm Credit. After earning his MBA from Columbia Business School, he spent seven years as CFO for J&J Family of Farms and later served as CFO advisor to several produce growers, shippers and distributors. In this role, Mark saw the impediments that prevent produce growers and buyers to trade with greater access and efficiency. This led him to cofound ProduceIQ.
