Strong asparagus market expected to prevail
Strong asparagus market expected to prevail
Supplies of asparagus from Mexico have been lighter than usual this winter, causing a strong market that will likely remain well into March.
Cory Stahl, sales manager of Progressive Produce Corp. in Los Angeles, told The Produce News on Tuesday, Feb. 17, that Mexico typically hits a supply peak in asparagus in the mid-February to mid-March period. “Basically this year, there’s not going to be a peak,” he said. “It just hasn’t happened.”
Weather and other factors have decreased production, and, according to the federal Market News Service, supplies have been “fairly light” with moderate demand. Stahl said that has pushed the market to an f.o.b. of $46-$48 for a standard 28-pound carton. “I’d say, generally speaking, that’s about $10 more than normal and about $16 to $18 higher than we were a year ago.”
While the California production should begin in early March, Stahl is not optimistic that it will result in a significant price drop. “California is going to gear up over the next several weeks just as Mexico is decreasing,” he said. “I don’t see much change in the market.”
In addition, the Progressive Produce asparagus sales veteran said the early Easter date this year (April 5) will put additional demand stress on the market as asparagus is a popular Easter meal item. Stahl did say, however, that Progressive Produce will have a significant increase in its California supplies this year and should be in very good shape in filling its order in the March time period. “We will get started in the next 10-14 days and we expect to have a very good California crop.”
He added that there should be enough asparagus for promoting once California gets in full swing. On the heels of the California crop will come Washington in the mid- to late April period. While some asparagus is imported from Peru on a year-round basis, this is Peru’s summer months when production is at its lowest point.
While asparagus has a strong market, many other vegetables from the California, Arizona and Mexico production areas are in supply-exceeds-demand situations. The rain and snow that have gripped much of the rest of the country has made transportation difficult and greatly decreased demand. At the same time warm weather hit the West and produced very good growing conditions. As Bostonians were digging out from piles of snow, San Franciscans were sunning on the beach. Currently many of the vegetable items are selling at below cost prices. On Feb. 17, the Market News Service reported mostly single-digit pricing on broccoli, cauliflower, celery, peppers, squashes and iceberg lettuce.
