Challenging season has Nogales marketers looking forward to spring
Challenging season has Nogales marketers looking forward to spring
?The season to date has been absolutely terrible," said Joe Bernardi of Bernardi & Associates Inc. in Nogales, AZ, who echoed the sentiments of most of the other Nogales brokers and distributors who were interviewed by The Produce News during the latter half of February.
Unusually heavy rain in many growing areas in Mexico has created supply and quality challenges in tomatoes and most other commodities. Market prices for many items have been dragging bottom for much of the season, even when supplies were shorter than normal.
But with the passing of winter and the approach of spring, marketers express hope that March, April and May will prove better than December, January and February, bringing more normal production and improved quality and prices that will help make up for the winter?s losses. Some are cautiously optimistic; others are confident.
Some distributors think that the spring tomato and vegetable deal in Nogales may finish a little earlier than normal. Others, however, said that their growers have increased plantings this year for the late season and should have a strong finish.
March is typically a strong month for tomatoes and vegetables, with volume tapering off in April and May. Some other commodities, such as melons, mangos and grapes, come into season in the spring.
?For the next few weeks, from now through mid-March, there will still be pretty decent supplies? of tomatoes and vegetables in Nogales, Lee Frankel, president of the Nogales-based Fresh Produce Association of the Americas, said in mid-February. "Hopefully they will be closer to equilibrium levels, so we are not overproducing, no matter what the retail price would be."
He also expressed hope that pricing would be at levels that would enable retailers and growers both to make money.
?The season started out really sloppy," said Brooks Lisenbey of Arkansas Tomato Shippers LLC in Nogales. "The market stayed depressed it seems like forever. Then it just started picking up [about the middle of February]. It has been a terrible season for us so far. We just now got a little bit of action."
The Nogales season started with $40 tomato markets, following Florida hurricanes and California rains, but prices dropped quickly and have remained "at the minimum? until just recently, he said.
?It is a tough year to report," said Harry Sbragia of JMB distributing Inc. "If somebody tells you the truth, they are going to tell you it is kind of a rough season overall," primarily due to weather problems. "It has been a tough year because we have had an inordinate amount of rain down there? in the growing areas in Mexico, "and there is certain amount of crop damage." That has reduced volume and limited crossings, he said.
?The season has been a roller coaster, like last year, because of the weather," said Marc Greenberg of Tricar Sales Inc.
For cucumbers, markets were bad in November, fair in December, bad in January and a little better in February, he said.
?But, in general, it has been below expectations, except on the greenhouse items? which had protection from the rain.
Going forward, Mr. Greenberg expected cucumber markets, green pepper markets and vine-ripe tomato markets to be stronger.
Even greenhouses have been affected by the weather to a degree. There have been so many cold, cloudy days that production declined because the fruit was not ripening, said Martin Ley of Del Campo Supreme Inc. Still, the company has been able to maintain fairly consistent volumes and consistent quality in its greenhouse programs, while open-field crops were affected by the weather "in terms of consistency, quality and availability," he said.
FPAA?s Mr. Frankel noted that greenhouse production in Mexico has been increasing and now accounts for an estimated one-third of all round tomatoes coming into Nogales from Mexico.
?With as much rain as we have had, quality has been an issue? with vegetables out of Mexico, said Chris Ciruli of Ciruli Bros. "Certainly there has been quite a bit of disease that has affected these fields. We just have to see how we can control that going into March."
Some shippers "are doing a very good job? of grading and packing the product, Mr. Ciruli said. "Other guys are having some trouble after this much weather."
Tom Gilardi of Kaliroy Pacific said that some of the company?s tomato fields had been lost by rain, but after a week or so of clear weather, the fields were drying out and "the tomatoes are beautiful again."
He noted that Florida was "in our face? at the beginning of the Nogales deal this year. "They had plenty of tomatoes, and they had good growing weather." What happened, he said, was that following the hurricanes, the Florida growers all replanted at the same time, and the fields all came on at the same time, causing a glut in the market just as the tomato season in Culiacan, Mexico, got under way. Before Florida started, "the market out here was great." But the sudden increase in volume caused market prices to become "real depressed," he said.
As of mid-February, Florida was lighter in volume as it usually is in February. "We?ve got a window here of about three or four weeks? before Florida starts its spring tomato crop, Mr. Gilardi said.
John Tuccini of Carlsbad Produce Inc. said, "We have had heavy rain this year, and there has been some damage down south. We?ll see how it turns out, but at this point it looks like there won?t be an overabundance of spring supply," particularly on Romas and cucumbers. It may be "pretty short here for the finish of the season," he said.
The season had "a rough start," said John King of Andrew & Williamson Fresh Produce. "The early volume on tomatoes was quite heavy. There were unseasonably low prices early. Then the rain came in and changed the whole playing field for quality and markets. Now everybody is re-evaluating their current plantings to see what the production looks like for the remainder of the season."
?If we have any more rain, I think things will return close to normal? for the remainder of the season, said Ana Astrid Celaya of Malena Produce Inc. In December, "there was a lot of merchandise. We got more than we expected," she said. Then January came "and we had problems with the rain. Now, we are trying to get everything dry and see if we can accomplish something? during the final weeks of the season.
Kiki Arana of Wilson-Batiz LLC said that he expects "some reduction in overall supplies but very good quality? for the balance of the season.
During most of December, January and February, prices "have been pretty poor," said Jerry Wagner of Farmer?s Best International LLC. "Right now, we are seeing some better numbers. We?re looking forward to a very good spring."
Farmer?s Best has most of its production out of the La Cruz area south of Culiacan, and as of mid-February, the company had more of its production "ahead of us than behind us." He expected "a big spring crop."
?The season started off with a lot of anticipation and hope, but it faded quickly due to a lot of weather issues in Mexico and very low pricing out of Florida," said Jim Cathey of Del Campo Supreme Inc. "We have really had a tough marketing situation to deal with since early January."
As of the latter part of February, the market seemed to be "perking up," Mr. Cathey said.
So far, the season has been one of the "bigger horror stories that we?ve had here in the last 15 or 20 years, he said. "We?ve got about two months to try to make up for the last 90 days."
It has been "probably one of the worst Nogales deals we?ve seen here in 10 or 11 years, as far as the volume being moved," said Mr. Bernardi of Bernardi & Associates. "It seems like every time we started to clean up? following a rain storm "we?d get another rain storm."
But after mid-February, the rains seem to have cleared. "There are perfect growing conditions right now," Mr. Bernardi said. Still, "the information that I am getting from down south isn?t very promising? as there are some disease problems showing up due to the rain. Some of those, such as blight, "really start to run rampant through the fields? as the temperatures warm up into the 90s. Because of that, "we could see a very early end to this season," he said.
Tomato volume could fall of "drastically? after the end of March, "a full month earlier than normal," he said.
(For a full report on the Nogales deal, see the March 7 issue of The Produce News.)
Unusually heavy rain in many growing areas in Mexico has created supply and quality challenges in tomatoes and most other commodities. Market prices for many items have been dragging bottom for much of the season, even when supplies were shorter than normal.
But with the passing of winter and the approach of spring, marketers express hope that March, April and May will prove better than December, January and February, bringing more normal production and improved quality and prices that will help make up for the winter?s losses. Some are cautiously optimistic; others are confident.
Some distributors think that the spring tomato and vegetable deal in Nogales may finish a little earlier than normal. Others, however, said that their growers have increased plantings this year for the late season and should have a strong finish.
March is typically a strong month for tomatoes and vegetables, with volume tapering off in April and May. Some other commodities, such as melons, mangos and grapes, come into season in the spring.
?For the next few weeks, from now through mid-March, there will still be pretty decent supplies? of tomatoes and vegetables in Nogales, Lee Frankel, president of the Nogales-based Fresh Produce Association of the Americas, said in mid-February. "Hopefully they will be closer to equilibrium levels, so we are not overproducing, no matter what the retail price would be."
He also expressed hope that pricing would be at levels that would enable retailers and growers both to make money.
?The season started out really sloppy," said Brooks Lisenbey of Arkansas Tomato Shippers LLC in Nogales. "The market stayed depressed it seems like forever. Then it just started picking up [about the middle of February]. It has been a terrible season for us so far. We just now got a little bit of action."
The Nogales season started with $40 tomato markets, following Florida hurricanes and California rains, but prices dropped quickly and have remained "at the minimum? until just recently, he said.
?It is a tough year to report," said Harry Sbragia of JMB distributing Inc. "If somebody tells you the truth, they are going to tell you it is kind of a rough season overall," primarily due to weather problems. "It has been a tough year because we have had an inordinate amount of rain down there? in the growing areas in Mexico, "and there is certain amount of crop damage." That has reduced volume and limited crossings, he said.
?The season has been a roller coaster, like last year, because of the weather," said Marc Greenberg of Tricar Sales Inc.
For cucumbers, markets were bad in November, fair in December, bad in January and a little better in February, he said.
?But, in general, it has been below expectations, except on the greenhouse items? which had protection from the rain.
Going forward, Mr. Greenberg expected cucumber markets, green pepper markets and vine-ripe tomato markets to be stronger.
Even greenhouses have been affected by the weather to a degree. There have been so many cold, cloudy days that production declined because the fruit was not ripening, said Martin Ley of Del Campo Supreme Inc. Still, the company has been able to maintain fairly consistent volumes and consistent quality in its greenhouse programs, while open-field crops were affected by the weather "in terms of consistency, quality and availability," he said.
FPAA?s Mr. Frankel noted that greenhouse production in Mexico has been increasing and now accounts for an estimated one-third of all round tomatoes coming into Nogales from Mexico.
?With as much rain as we have had, quality has been an issue? with vegetables out of Mexico, said Chris Ciruli of Ciruli Bros. "Certainly there has been quite a bit of disease that has affected these fields. We just have to see how we can control that going into March."
Some shippers "are doing a very good job? of grading and packing the product, Mr. Ciruli said. "Other guys are having some trouble after this much weather."
Tom Gilardi of Kaliroy Pacific said that some of the company?s tomato fields had been lost by rain, but after a week or so of clear weather, the fields were drying out and "the tomatoes are beautiful again."
He noted that Florida was "in our face? at the beginning of the Nogales deal this year. "They had plenty of tomatoes, and they had good growing weather." What happened, he said, was that following the hurricanes, the Florida growers all replanted at the same time, and the fields all came on at the same time, causing a glut in the market just as the tomato season in Culiacan, Mexico, got under way. Before Florida started, "the market out here was great." But the sudden increase in volume caused market prices to become "real depressed," he said.
As of mid-February, Florida was lighter in volume as it usually is in February. "We?ve got a window here of about three or four weeks? before Florida starts its spring tomato crop, Mr. Gilardi said.
John Tuccini of Carlsbad Produce Inc. said, "We have had heavy rain this year, and there has been some damage down south. We?ll see how it turns out, but at this point it looks like there won?t be an overabundance of spring supply," particularly on Romas and cucumbers. It may be "pretty short here for the finish of the season," he said.
The season had "a rough start," said John King of Andrew & Williamson Fresh Produce. "The early volume on tomatoes was quite heavy. There were unseasonably low prices early. Then the rain came in and changed the whole playing field for quality and markets. Now everybody is re-evaluating their current plantings to see what the production looks like for the remainder of the season."
?If we have any more rain, I think things will return close to normal? for the remainder of the season, said Ana Astrid Celaya of Malena Produce Inc. In December, "there was a lot of merchandise. We got more than we expected," she said. Then January came "and we had problems with the rain. Now, we are trying to get everything dry and see if we can accomplish something? during the final weeks of the season.
Kiki Arana of Wilson-Batiz LLC said that he expects "some reduction in overall supplies but very good quality? for the balance of the season.
During most of December, January and February, prices "have been pretty poor," said Jerry Wagner of Farmer?s Best International LLC. "Right now, we are seeing some better numbers. We?re looking forward to a very good spring."
Farmer?s Best has most of its production out of the La Cruz area south of Culiacan, and as of mid-February, the company had more of its production "ahead of us than behind us." He expected "a big spring crop."
?The season started off with a lot of anticipation and hope, but it faded quickly due to a lot of weather issues in Mexico and very low pricing out of Florida," said Jim Cathey of Del Campo Supreme Inc. "We have really had a tough marketing situation to deal with since early January."
As of the latter part of February, the market seemed to be "perking up," Mr. Cathey said.
So far, the season has been one of the "bigger horror stories that we?ve had here in the last 15 or 20 years, he said. "We?ve got about two months to try to make up for the last 90 days."
It has been "probably one of the worst Nogales deals we?ve seen here in 10 or 11 years, as far as the volume being moved," said Mr. Bernardi of Bernardi & Associates. "It seems like every time we started to clean up? following a rain storm "we?d get another rain storm."
But after mid-February, the rains seem to have cleared. "There are perfect growing conditions right now," Mr. Bernardi said. Still, "the information that I am getting from down south isn?t very promising? as there are some disease problems showing up due to the rain. Some of those, such as blight, "really start to run rampant through the fields? as the temperatures warm up into the 90s. Because of that, "we could see a very early end to this season," he said.
Tomato volume could fall of "drastically? after the end of March, "a full month earlier than normal," he said.
(For a full report on the Nogales deal, see the March 7 issue of The Produce News.)
