Cauliflower leads active vegetable markets
Cauliflower leads active vegetable markets
While much better than normal pricing remains for many vegetable items from the West, only cauliflower seems to be commanding the stratospheric prices of mid-October.
"There just still isn't much flower around," said Mark Sergent, chief executive officer of S&S Marketing & Sales Inc., a buying broker and distributor based in Salinas, CA.
He said the leaf lettuce items came off their $20-plus markets, though most items were still returning better than a $10 bill on Wednesday, Oct. 30.
"Huron has kicked in, so prices have backed off a bit but they are still pretty strong," he said.
However, he added that broccoli, after coming off early in the week, appeared to be tightening up the morning of Oct. 30 and was heading higher.
Sergent said even the upcoming shift to California and Arizona winter desert production should be met with strong markets.
He said the early part of the deal should feature good prices, as much of the early acreage was hit with some rain that likely would affect sizing and thus yields.
Additionally, Sergent said many growers cut back their acreage because of potential labor problems, and current labor issues could affect harvesting.
Because of the federal government shutdown, there is a backlog on the granting of visas, and some temporary foreign workers who traditionally work that deal have yet to be granted entry to the United States.
Surveying the generally strong market conditions, Sergent opined, "This is good for the growers. They work hard and deserve it."
Also enjoying the active sales situation was Denny Donovan, sales manager for Fresh Kist Produce LLC in Santa Maria, CA.
"Prices are great, especially compared to last year," he said. "We are seeing some items come down a bit but [the f.o.b prices] are still very good for this time of the year."
He said cooler weather, which has decreased yields, and less acreage are the top two factors in the strong market. He also concurred that the vegetable deal should remain strong through the holiday season as production shifts south.
"There is more vacant land [in the desert]," he said. "There is not a whole lot of gambling going on any more. Growers are only planting what they can sell on contract. I look at our sales sheets and we are pretty much sold out for the next 60 to 90 days."
Donovan estimated that a review of historical sales during the past two months could very well prove that the western vegetable industry set some pricing records this fall.
"I can't remember a better September-to-October period," he said. "We've had some phenomenal prices over the last 60 days."
Of course, he added that the high prices generally mean low volume.
Cauliflower prices still are topping $30 per carton, but Donovan said that means not too many shippers have a lot of it.