“We are continuing to gain market share in asparagus, and we have also been expanding our product offering from Guatemala, Canada, and domestic growing regions,” he said.
Ryan reported no significant changes with regard to its asparagus offerings from Peru nor any changes in its mix of colors. He also expects a relatively smooth season with regard to logistics but did say SQ1 plans to utilize air shipments for a significant portion of its volume specifically to account for delays in ocean voyages.
Reflecting on the Peruvian deal for this year, the Square 1 executive said there have been several challenging periods thus far. “Overall, Peruvian asparagus production has been in decline for the past several years. Through week 34, we have seen a 16 percent decline compared to 2023, and we saw an almost 20 percent decline in 2023 compared to 2022,” he reported. “Combined, there is over 35 percent less production in the last two years. The ‘spring’ peak season (fall in the U.S.) is expected to start by early October, and this year, we are anticipating a more normal production curve, albeit with less total volume. Since production is falling on average 18 percent per year, we don’t expect an abundance of supply for the North American fall/winter months, like we have seen in previous years.”
However, Ryan said the industry should still have sufficient volume to promote for the traditional Thanksgiving and Christmas holiday seasons.
Climatic conditions are generally taking the heat for yield declines and Ryan echoed those sentiments. “Over the last six to eight weeks, we have seen significant impacts to the yields in Peru due to a much cooler ‘winter’ than normal in July and August. The cooler temperatures are affecting the sizing profile, resulting in a greater percentage of thinner-sized spears, which are not usable for retail. This has impacted grower budgets and continues to impact yields heading into the fall holiday season.”
As a result, Ryan said opportunities where there is abundant supply of asparagus to support retail promotions have been scare in 2024. “That said, we are entering the peak season from Peru and as more regions in Mexico become available, there should be opportunities to promote during October-December,” he concluded.