Organic veg market is ‘reinvigorated,’ according to Wholesum Family Farms
Organic veg market is ‘reinvigorated,’ according to Wholesum Family Farms
NOGALES, AZ — Organic Mexican vegetable supplies are down in January and demand is pushing prices to high levels, according to Steve LeFevre, sales manager for Wholesum Family Farms, based here. LeFevre added that red Bell peppers are the exception to this rule.
“The cucumber market is extremely tight,” LeFevre said. “Wholesum’s organic cucumber volume was down this year anyway. We don’t have the (cucumber) numbers we had in the past. But organic cucumbers from Mexico are down in general. It’s extremely tight.”
On Jan. 13, prices had risen to $40 per 25-pound cucumber package. It had been in the $36-40 range since late December.
Slightly a year after opening this 13-acre organic tomato greenhouse in Amado, AZ, Wholesum Family Farms is preparing to expand the facility by an additional six acres. That new production will come online by October or November.“Now eggplant seems pretty tight and zucchini and yellow squash are pretty tight,” he went on to say. “All organic Mexican veg is tight, except for red bells. Everyone has a lot of red Bell peppers.”
On Jan. 13, conventional red Bell prices were $16 and organics were $12.
LeFevre indicated that there are conflicting reports but some indicate that growers in Guaymas and Hermosillo (in Sonora, Mexico) suffered frost damage with post-Christmas cold.
“Culiacan has had no hard freezes,” he added.
A critical factor in the high prices is strong demand, LeFevre said.
“There is a lot of demand from different places, with retailers across the country.” Key categories “at the top of their interest are organics and ‘local.’”
Organic produce demand seemed to have leveled off for two years but is “now at the forefront as retailers plan this year. After the last two years, there is more interest. The organic market seems to be reinvigorated.”
LeFevre cited four chain store customers of his that are now buying significantly more organic vegetables than in the past.
In addition to its protected vegetable production in Mexico, Wholesum in late 2013 built an ultra-modern 13-acre organic tomato greenhouse in Amado, AZ.
Ground to add an additional six acres of production will be broken this January. The new production will come in this October or November.
The rising demand line will easily absorb that increased demand, he said. Amado is about 20 miles north of Nogales.
“It’s great. Our packages are down and dollars are up,” LeFevre said.
“In the last few years it took longer [in the calendar year] to meet our budget levels,” he continued. “Now we’re two months ahead. Normally it’s March before we meet our equilibrium. Markets are very strong.”
