Holiday pull could be light, but shippers are ready
Holiday pull could be light, but shippers are ready
SALINAS, CA -- The produce industry hopes the seven- to 10- day lull following Thanksgiving is the calm before the storm. Whether that storm brings a hail of business or erodes profits remains to be seen.
"We've had a big week," Joe Feldman, vice president of sales and marketing for Castroville, CA-based Ocean Mist Farms, told The Produce News Nov. 30. "The [post- Thanksgiving] lull is over."
Mr. Feldman said that the company has good volume in its pull for the holiday season for most commodities. Seasonal items on which the company concentrates include fennel, brussels sprouts and cardone.
"We ramp up production on artichokes," Mr. Feldman said. "There's good volume. The weather has been very cooperative. Ocean Mist's volume is good on broccoli, celery, green onions and Iceberg lettuce, among other items, and is steady on cauliflower."
Ocean Mist is buffered a bit from the lingering problem of labor shortages in Yuma, AZ, because it harvests year round in California's Coachella Valley. But Mr. Feldman conceded that labor issues in Yuma could pose some problems despite the company having its own work crews.
Transportation issues continue to threaten the market and affect the high-demand holiday seasons. Higher costs can lead to higher retail prices that can translate to lower consumer demand. It will take a few years for the market to correct, he said.
"Freight rates were high and trucks were lean [for Thanksgiving]," Mr. Feldman said. For the Christmas season, "yields look good and quality should be very, very good." Dave Mills, a senior vice president with Mills Family Farms in Salinas, CA, said that availability of labor and the effects of the hurricane season on crops out of Florida are two areas to watch.
While the transition from Salinas to the desert went pretty smoothly, companies will have light volumes at the front end of the lettuce deal, Mr. Mills said.
"By mid-week [of the Dec. 5 week], there'll be an increase in demand," Mr. Mills said. Though weather has largely been cooperative, a hailstorm did affect growers to varying degrees in the desert areas, Mr. Mills said, adding that Iceberg and leaf lettuce volumes could be affected toward the end of December.
Mr. Mills said that his company has plenty of labor for its "Wholeaves" facility in Brawley, CA, but the company experienced some effects so far in Yuma and the Imperial Valley from shortages of field laborers and truck drivers. Self-employed produce broker Bill Armstrong of Salinas- based Armstrong Marketing said that he expects a glut of product on hand from the winter desert vegetable deal, noting that there has been "no bad weather."
Mr. Armstrong said that foodservice was looking slow and that the wild card is the labor shortage in the desert areas.
Dennis Peterson, a salesman for Carcione and Quebec Distributing LLC in South San Francisco, said that demand for beans and tomatoes has ratcheted up for the holiday season. He attributed the demand for tomatoes to hurricanes in Florida. Carcione and Quebec Distributing do a good bit of business in the San Francisco Bay area, but Mr. Peterson also sells nationally.
"The guy in Nebraska turns to Nogales or Florida," Mr. Peterson said. Quebec Distributing LLC sells broccoli out of Salinas, which for Mr. Peterson will wrap up in another week or so.
"Tomatoes will be snug for the winter," Mr. Peterson said. "Quality is good on hard squash, zucchinis and cucumbers." Demand prior to Thanksgiving was weak, Mr. Peterson said. "I think the economy may be worse than people think." He pointed to lettuce from Salinas as an example of commodities affected by higher costs to provide fresh produce. Whereas Salinas held a dominant position in lettuce for spring, summer and fall, big retailers are more willing than in the past to turn elsewhere for lettuce if they can realize a dramatic saving in transportation costs, he said.
The transition from Salinas to the desert went smoothly from a buying standpoint, Mr. Peterson said.
Maria Arroyo, assistant produce manager for Star Market in Salinas, said that her store is having trouble procuring some items, and that quality has been a problem in some instances, as well.
She said that her store is having difficulty getting good green beans from Mexico, adding that the quality has not been as good as hoped and likely accounts for the limited supplies. The transition from the Coachella Valley to Mexico for bell peppers has left some gaps in availability of supplies, she said, and blueberries and raspberries have been hard to get.
Also, the California crop on citrus "isn't great," Ms. Arroyo said.
"We've had a big week," Joe Feldman, vice president of sales and marketing for Castroville, CA-based Ocean Mist Farms, told The Produce News Nov. 30. "The [post- Thanksgiving] lull is over."
Mr. Feldman said that the company has good volume in its pull for the holiday season for most commodities. Seasonal items on which the company concentrates include fennel, brussels sprouts and cardone.
"We ramp up production on artichokes," Mr. Feldman said. "There's good volume. The weather has been very cooperative. Ocean Mist's volume is good on broccoli, celery, green onions and Iceberg lettuce, among other items, and is steady on cauliflower."
Ocean Mist is buffered a bit from the lingering problem of labor shortages in Yuma, AZ, because it harvests year round in California's Coachella Valley. But Mr. Feldman conceded that labor issues in Yuma could pose some problems despite the company having its own work crews.
Transportation issues continue to threaten the market and affect the high-demand holiday seasons. Higher costs can lead to higher retail prices that can translate to lower consumer demand. It will take a few years for the market to correct, he said.
"Freight rates were high and trucks were lean [for Thanksgiving]," Mr. Feldman said. For the Christmas season, "yields look good and quality should be very, very good." Dave Mills, a senior vice president with Mills Family Farms in Salinas, CA, said that availability of labor and the effects of the hurricane season on crops out of Florida are two areas to watch.
While the transition from Salinas to the desert went pretty smoothly, companies will have light volumes at the front end of the lettuce deal, Mr. Mills said.
"By mid-week [of the Dec. 5 week], there'll be an increase in demand," Mr. Mills said. Though weather has largely been cooperative, a hailstorm did affect growers to varying degrees in the desert areas, Mr. Mills said, adding that Iceberg and leaf lettuce volumes could be affected toward the end of December.
Mr. Mills said that his company has plenty of labor for its "Wholeaves" facility in Brawley, CA, but the company experienced some effects so far in Yuma and the Imperial Valley from shortages of field laborers and truck drivers. Self-employed produce broker Bill Armstrong of Salinas- based Armstrong Marketing said that he expects a glut of product on hand from the winter desert vegetable deal, noting that there has been "no bad weather."
Mr. Armstrong said that foodservice was looking slow and that the wild card is the labor shortage in the desert areas.
Dennis Peterson, a salesman for Carcione and Quebec Distributing LLC in South San Francisco, said that demand for beans and tomatoes has ratcheted up for the holiday season. He attributed the demand for tomatoes to hurricanes in Florida. Carcione and Quebec Distributing do a good bit of business in the San Francisco Bay area, but Mr. Peterson also sells nationally.
"The guy in Nebraska turns to Nogales or Florida," Mr. Peterson said. Quebec Distributing LLC sells broccoli out of Salinas, which for Mr. Peterson will wrap up in another week or so.
"Tomatoes will be snug for the winter," Mr. Peterson said. "Quality is good on hard squash, zucchinis and cucumbers." Demand prior to Thanksgiving was weak, Mr. Peterson said. "I think the economy may be worse than people think." He pointed to lettuce from Salinas as an example of commodities affected by higher costs to provide fresh produce. Whereas Salinas held a dominant position in lettuce for spring, summer and fall, big retailers are more willing than in the past to turn elsewhere for lettuce if they can realize a dramatic saving in transportation costs, he said.
The transition from Salinas to the desert went smoothly from a buying standpoint, Mr. Peterson said.
Maria Arroyo, assistant produce manager for Star Market in Salinas, said that her store is having trouble procuring some items, and that quality has been a problem in some instances, as well.
She said that her store is having difficulty getting good green beans from Mexico, adding that the quality has not been as good as hoped and likely accounts for the limited supplies. The transition from the Coachella Valley to Mexico for bell peppers has left some gaps in availability of supplies, she said, and blueberries and raspberries have been hard to get.
Also, the California crop on citrus "isn't great," Ms. Arroyo said.
