Trendspotting: Summer brings record-high produce prices
Trendspotting: Summer brings record-high produce prices
Nothing says summer quite like cherries, and with cherries leading the way, the summer’s overall produce markets continue to explode with record-high prices, according to ProduceIQ.
“Most prices rose during the July 4th pull,” said Mark Campbell, founder and CEO of ProduceIQ. “Only a few commodity prices, such as tomatoes and avocados, declined.”
Also in short supply, broccoli prices are up 19 percent over the previous week. “Late June’s heat wave in California is lessening available yields and forcing prices to surge higher,” said Campbell. “Reported volume out of Salinas, CA, is significantly down over previous years. Temperatures are forecasted to improve over the coming weeks, though supply and market prices may take more time to stabilize.”
Broccoli markets aren’t the only produce commodity unsettled by the recent heat wave. Iceberg and Romaine markets are predictably unsettled; however, prices are seeing comparatively modest increases due to softer demand.
“Most Californian lettuce and leaf growers are reporting quality issues like tip burn and discoloration,” said Campbell. “Prices are on the higher end of the historical price spectrum but are nowhere near the record-breaking territory. As supply recovers, markets are forecasted to remain active for the next two weeks.”
Nearing $17, cucumber prices are close to 2014’s 10-year record. Western and Eastern cucumber growing regions are in transition. On the East Coast, buyers are waiting for more northern growers to come online. Georgia has finished production, and North Carolina is the primary eastern harvesting region for the moment. Mexico has limited volume to help cover the gap. Expect markets to remain unsettled until domestic production spreads to more northern states.
Campbell said blueberries are in a demand-exceeds-supply situation. “The Pacific Northwest and Michigan seasons are still delayed, and Southeastern growers are finished early due to spring freeze damage,” he said. “As a result, supply will stay lean until the Pacific Northwest picks up production in two weeks.”
