Weekly Market Review April 23, 2015

Market Alert

Asparagus Bananas Cauliflower Garlic-Peeled Fennel Grapes (Red) Green Leaf Limes Pineapple Red Fresno chili peppers

Overview Green and Red leaf supplies are light. Green leaf is in an extreme market. Romaine is below average while Romaine hearts are average. Extreme market conditions continue for limes: poor weather and growing conditions will continue to negatively impact supply and price in the coming days and weeks. The asparagus market has tightened up because Peru is running low in supply, and Mexico is done. The Roma tomato market is normal, and prices have lowered. Most all herbs remain steady and in fairly good supply and quality. The Berry market remains strong. Good weather in Mexico has increased production on Blackberries. Quality and supplies are very good. The Cauliflower market remains extremely tight with poor quality and an escalation in price. The fennel market is tight and we are seeing high prices. The carrot market is tight as well. We are hoping to see an improvement next week.

Transportation Trucks continue to be in good supply in the West.

Weather Drizzle and average to below average temperatures are expected for the balance of the week in Salinas. Highs will be in the low 60s with warming on Saturday afternoon into the high 60s. Temperatures have cooled in Baja California and Northern Mexico, with highs mostly in the 80’s, under clear skies. A warming trend will resume early next week.

Fruits and Vegetables

Avocados Due to lower demand and greater volume coming from Mexico, we are seeing a downward trend in pricing. Smaller sizes (60 and smaller) continue to be the best buy. Quality is excellent with great flavor and oil content.

Bananas We are still experiencing a strong market on bananas. In Central America, last December brought cooler than normal weather patterns, rain and less solar radiation negatively impacting the growing conditions and yield of bananas in Costa Rica. In addition, in the month of January, the Atlantic region suffered extreme high winds in the growing region. Our growers lost thousands of banana plants. Guatemala suffered two extreme cold fronts, causing a significant loss in product. Problems are also being experienced with the government of Ecuador. They are enforcing a policy where growers cannot sell more than a certain percentage of their bananas on the open market, which is an “auction market” for the industry. This, combined with the strong demand from Russian companies, has led to extremely high prices for spot market bananas. This is estimated to continue through

April. Please be aware of a shortage in the banana market and an increase in price. We will keep you updated as we do expect to see some relief in the next month.

Berries Blueberries: We are seeing the potential in most varieties to have a more concentrated harvest than what we have seen in previous years. S. Florida production is past the peak but still quite a bit of fruit to harvest. Majority of fruit is coming from Emerald, Jewel and Farthing. N. Florida growers remain in peak production window. All mid-season varieties being harvested. Labor and rains have complicated the picking schedule. Georgia harvest started last week. Production will ramp up this week. A quick increase to peak volumes is expected in southern areas. N. Carolina, all Southern Highbush and Rabbiteye varieties are in bloom or petal fall. Growers are anticipating harvest around May 16th. Things are looking better in N. Jersey with the movement of Duke. Michigan, very slow advancement in crop development due to rains. Blackberries: Both CA and Manfredi look to have decent supplies on 6 oz. blackberries this week, with the majority of this volume in Manfredi. Mexico is still going strong and California is still slow to get started. Raspberries: Mexico continues to perform with decent volumes on both coasts (Manfredi/Oxnard/Watsonville). Most of the volume is in Manfredi. California fruit continues to come on slowly, and will start increasing little by little each week. Strawberries: California strawberries will remain tight over the next few weeks, as Mother’s Day demand is very strong. The most current weather update also shows California remaining cool with a couple chances of rain over the next few weeks. Santa Maria is still in the game, but will remain tight as well. Once we make it through the pull, we will begin to feel things loosen up a bit.

California-Arizona Citrus Grapefruit: California Star Ruby is available; the Rio Star harvest in Texas is almost finished. The fancy market is extremely tight, and prices are rising. Lemons: With a gradual switch to southern California for supplies, smaller sizes are becoming more available while larger sizes are becoming scarcer with higher prices. Limes (Persian): It appears that we will have three weeks of short supplies. Prices have moderated but are still high. We hope to see this drop each week, Cinco de Mayo may throw off the decline. Navel Oranges: The quality of remaining regular navels is not so good. Late navels are of good quality but very large in sizing, mostly 72s and larger. Valencia Oranges: There is more availability this week with a greater proportion of smaller sizes. Texas/Florida Citrus: Rain continues in Texas/Mexico on remaining last supplies of Vals/Grapefruit. Pineapple: Inbound vessels from Costa Rica have made late arrivals due to adverse weather conditions along the East Coast.

Specialty Citrus Items: Cara’s, Murrcotts, Minnies, Sweeties and Gold Nuggets and Pixies are all in good supply. Pummelos are in final supply.

California Lettuce Green and Red Leaf: Supplies will be short supplied this week and quality is fair. Heavy insect pressure in all leaf items. Green and Red Leaf are 24-25 lbs. Green leaf is in escalation and an extreme market. Iceberg Lettuce: Light supplies of lettuce are available in Salinas. The lack of labor is still limiting production. Quality is good, weights are in the low to mid- forties. There are less than average amount of thirties. Salinas is now the predominant district as other areas are ending or have finished. Prices should be steady to higher.Romaine: Below average supplies this week and next. Demand is steady. Quality is good but there is some light mildew on the outer leaves. There are 1 -2 leaves with blister on occasional heads. The carton is 36-37 lbs. this week. Romaine Hearts: Supplies for the week will be about average. Demand is good. With the nice weather during the days, and cool nights, the product is growing at a steady rate. We are still about 10-14 days ahead of schedule; therefore, we expect to see lighter supplies at some point in the future. Overall quality is good. Light mildew and heavy insect pressure in the fields.

Eastern and Western Vegetables Green and Red Bell Peppers: A wide range in quality exists on red bell peppers in Nogales, depending on variety and growing area in Mexico. The harvest on green bell peppers is in full swing in Coachella; prices have eased in all districts (Florida, Nogales, and Coachella). A wide range in quality also characterizes the Florida green bell crop that has seen a range of extreme weather conditions. Red Fresno chili peppers: Supplies are extremely tight, and prices are very extreme. Cucumbers: Ongoing depressed market conditions have resulted in various growers in the Culiacan district of Mexico winding down their season, causing a slight rebound in prices in the West with the bulk of production coming from Baja California and Northern Mexico. Availability is steady from Florida growers. English Cucumber: Hothouse production from growers in British Columbia and Ontario are now primary sources. Green Beans: Good supplies of new crop round beans in Florida-numerous districts at favorable prices. Steady availability in California (Coachella Valley), while a few Mexican growers have resumed harvesting with a wide range in quality. Zucchini & Yellow Squash: Continued plentiful supplies in Florida and Nogales for both zucchini and yellow squash, although prices have firmed slightly from bottom levels. Acorn, Butternut, Spaghetti: New crop spring production in Northern Mexico is now underway, with plentiful availability on acorn, followed by increasing production volume on spaghetti and then butternut. Acorn and butternut are also available in Florida.

Grapes New crop on green grapes has begun, and quality is good. Red grapes are experiencing quality and size issues. They are still coming from Chile Mexico/Coachella which starts the first week of May. Flames start May 10th and Perlette’s start May 2.

Herbs The Herb market is stable. All other herbs are steady. Chervil has been hit or miss of late, as this week we have had high temps followed by cooler temps, with higher temps forecasted for next week. We will be keeping an eye on this as well. We are anticipating heavy demand for fresh mint next week due to next week’s sporting events. With Cinco de Mayo a major Holiday, the mojito will continue this demand on mint as well. All herbs will be in heavy demand as we get into Mother’s Day the weekend of the 10th.

HERB SUPPLIES QUALIT Y COUNTRY OF

ORIGIN

Arugula Steady Good USA

Basil Limited Fair MEXICO Opal Basil Steady Good MEXICO

Thai Basil Limited Fair USA

Bay Leaves Steady Good COLUMBIA

Chervil Limited Good USA

Chives Steady Good USA/MEXICO Cilantro Steady Good USA

Dill Steady Good USA

Epazote Steady Good MEXICO

Lemongrass Steady Good USA

Marjoram Steady Good USA

Mint Limited Good USA

Oregano Steady Good USA

Italian Parsley Steady Good USA

Rosemary Steady Good USA/MEXICO

Sage Steady Good USA/MEXICO

Savory Steady Good USA

Sorrel Steady Good USA

Tarragon Steady Good MEXICO Thyme Steady Good USA

Lemon Thyme Steady Good USA

Lavender Steady Good USA

Lime Leaves Steady Good USA

Hojasanta Steady Good USA

Melons The market on cantaloupes remains active, larger sized fruit is in light supply. Honeydew supplies remain light. We expect to see improvement over the next few weeks.

Watermelons Florida watermelons have arrived, and the crop is excellent. The market opened strong but has settled. The market will remain steady as chains start to promote domestic fruit. Weather across the country is not exactly ideal for the consumer to be too excited, but we expect this to change, and demand will meet supply nicely. As we head into May with two promotable holidays, and supplies continuing to come along, the only thing that could potentially hurt supplies would be weather-specifically heavy rain. We will keep you updated as we watch Mother Nature.

Mixed Vegetables Artichokes: Lighter supplies are forecasted this week and the coming weeks. The chokes are frost free with excellent quality. Sizing is estimated to be 24's and smaller. Prices should be steady to higher this week. Volume is estimated to increase in May. Arugula: Supplies of both baby and wild arugula are good and readily available. Quality is good. Asparagus: We are not receiving anymore MEX asp. We are strictly Peru at the moment. Volume is still not enough to meet demand, and we are experiencing shortages; also still experiencing a shortage in the JMB size. Quality and sizing are excellent. Prices are also rising very quickly. Bok Choy: Tight supplies, high prices. Broccoli: Broccoli continues to very limited in supply. Cool weather and changes in varieties have resulted in short supplies. This trend should continue through at least the end of the month. We should see strong markets through the Mother's Day pull as a result. Quality and demand have remained strong as weather has been ideal for quality broccoli. Carrots: Availability has tightened for jumbo carrots in California. Quality is good. Cauliflower: Supplies this week are expected to be below average. With the cooler mornings and nights, product has started to slow down causing a slight decrease in our numbers this week. Overall quality remains good with a majority of 12ct and 16ct packed each day; we are expected to have limited 9ct this week as growth has slowed on cauliflower. Celery: Celery supplies are very light; cold mornings and nights have slowed growth. Quality is good with dark green color. Very small seeder is showing up in some heads along with light insect damage.

Fennel/Anise: We have a gap in production this week on Fennel. As a result of us being so far ahead of schedule and the cooler days and extremely cold nights (40-45 degrees), this causes the product to essentially stop growing, thus causing a gap in production. We are currently projected to have a 1.5 week long gap, no production the week 4/20-4/25 and potentially could be back in the middle of the week 4/27-5/2. Expect the market to remain extremely active the next 2-3 weeks, as it appears that all grower shippers are in the same supply situation on many items, whether it be Oxnard, Santa Maria or Salinas. Garlic: Poor domestic growing conditions and decreased Chinese product availability are 

negatively impacting supply and price again.  Though we have seen some slight relief over the past month, Chinese ports will once again be closed until further notice.  Ongoing drought and  limited acreage  in Southern California will also reduce availability and  increase cost for domestic supply.  We will provide notification as soon as relief is to be expected.               Ginger: The ginger market has improved, prices are moderate and will continue to be moderate. Green Cabbage: Production is very strong this week from the central California coast. We are getting expected volume and yields with head and weights medium to large. Occasional sun scald on the outer leaves is being removed to give us some very nice product for either naked or cello cabbage. Green Onions: Market remains active due to lighter supplies crossing the border last week. We do not see any increase in volume crossing this week, consequently market will remain snug with steady pricing. Kale (Green): Supplies remain on the lighter side this week. With cooler temperatures in the forecast, the situation is expected to improve. Overall quality and appearance continue to be good. Bunches are averaging 10-12” in length with dark green color. Mache: Adequate availability. Napa: Improved supplies. Market has stabilized. Parsley (Curly, Italian): Numbers are up from last week on curly parsley. Numbers are light on Italian parsley this week; industry wide. Overall quality and appearance continues to be very nice. Bunches are averaging 8-11 inches in length with dark green color. Market is trending upward. Red Cabbage: Red cabbage supplies are still limited this week, however expected to be very close to expected volumes for this time of year. The recent cooler weather has slowed growth so head size and weights are medium, but color is great. Snow and Sugar Snap Peas: Snow peas and sugar snaps are still in a strong market. (Peru, Mexico, and California). Prices remain in the highs for both. Quality is good. Spinach (baby): There are good supplies of baby spinach and clipped spinach. Quality is fair with minor yellowing, oversizing and half leaves. Spinach (bunched): Cold mornings and nights have slowed down growth. Demand is strong and the market is getting stronger. All reports show that New Jersey spinach is about to start, bringing on one more growing region. Market range is lower in Santa Maria area but some off quality with heavy wind burn. Overall quality is excellent, large full bunches, 11-12 inches in length and 20-22 lbs. Spring Mix: Spring mix supplies are very good. Product is showing slight quality issues of yellowing and some oversizing.

Onions Storage crop supplies are about finished. Few sheds will have supplies into next week. New crop from Texas is a disaster due to weather. Quality and availability will be uncertain for shipments next week. California has started in a small way this week with yellow and white shipments. More product is expected for shipments next week. All three colors will be available out of Imperial Valley of California first week on May. Bakersfield area expected to have availability mid-May.

Potatoes (Idaho) Large size cartons are still tight, but we are seeing some better availability this week with excellent availability on 80ct, 90ct and 100ct. The size profile is still heavier to small size potatoes. Demand exceeds supply on larger size cartons, and about meets supply on 80ct and smaller. We expect this trend to continue for the tail-end of the shipping season. Quality is good and most packers expect to have supplies deep into the summer.

Tomatoes Round, Roma, Plum, and Grape: Rounds, romas, cherry and grape tomatoes have good quality and volume. Romas are getting better weekly.

Tree Fruit Chilean Stone Fruit is now available, please call for details! There are good supplies on persimmons, pomegranates and Asian pears. Granny Smith apples are starting to clean up on small sizes and bags. Kiwi: Chile is the main supply area. California is starting. Italian is available off the East Coast and will be available on the West Coast in a week.

Washington Apples and Pears Great promotional opportunities continue on 88s and larger of red delicious, 72s and larger of fujis, goldens, cameos, pink ladys and braeburn. Demand is steady, schools are back in session. Small red delicious are a little easier to obtain, but shortages continue on other varieties. Quality remains exceptional. Pears (especially 110x and smaller) continue to exceed supply. Supplies are tight, mostly on fancy grade, and crop is running heavy to U.S. #1, peaking 90s and larger.

COMMODITY

PRICE EXPECTED PRICE TREND

QUALITY

Avocados Avocados-California Moderate Down Good

Avocados-Mexican Moderate Down Good

Berries

Blackberries Moderate Steady Good

Blueberries Moderate Steady Good

Raspberries Moderate Steady Good

Strawberries Low Steady Good

California-Arizona Citrus

Grapefruit Moderate Steady Good

Lemons Moderate Up Good

Limes High Up Excellent

Oranges-Navels Moderate Steady Poor

Pineapple Moderate Steady Good

California Lettuce

Green and Red Leaf Moderate Steady Good

Iceberg Moderate Up Fair

Romaine Moderate Steady Good

Romaine Hearts Moderate to High Up Excellent

Eastern & Western

Vegetables

Cucumbers Low Steady Good

Green Beans Moderate to High Steady Good

Green Bell Peppers Moderate Down Good

Red Bell Peppers Moderate Steady Good

Yellow Squash Low Steady Good

Zucchini Low Steady Good

Grape & Tree Fruit Gapes-Green Seedless High Steady Good

Grapes-Red Seedless High Steady Good

Plums Moderate Steady Good

Melons

Cantaloupes High Steady Good

Honeydew Moderate Steady Good

Mixed Vegetables

Artichokes Moderate to High Steady Excellent

Arugula Moderate Steady Good

Asparagus Moderate Down Good

Bok Choy High Steady Good

Broccoli Moderate to High Steady Good

Carrots Moderate Up Good

Cauliflower High Steady Good

Celery Moderate Steady Good

Frisee Moderate Steady Good

Fennel/Anise Moderate Steady Good

Garlic, Peeled Extreme Steady Good

Green Cabbage Moderate Steady Excellent

Green Onions Moderate Steady Excellent

Kale (Green) Moderate Up Good

Mache Moderate Steady Good

Napa High Steady Good

Parsley (Curly, Italian) Moderate to High Up Excellent

Red Cabbage High Steady Excellent

Snow and Sugar Snap Peas High to Extreme Steady Poor to Fair

Spinach (baby) Moderate Up Good

Spinach (bunched) Moderate Up Excellent

Spring Mix High Steady Good

Onions

Red Moderate Steady Good

White Moderate Steady Good

Yellow Moderate Steady Good

Potatoes (Idaho) Idaho Russets Moderate Steady Good

Tomatoes

Round, Grape, Plum Moderate Steady Good

Romas Moderate Steady Poor

Washington Apples & Pears

Red and Golden Delicious Moderate Steady Good

Granny Smiths, Galas Moderate Steady Good

Fuji Moderate Steady Good

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