Growers and shippers are getting ready to transition growing regions for lettuce supply. For Fresh Avenue, it will transition the weekend of April 12th.
"The plantings in Salinas, California went in on time. Some years, there's rain or things like that that interrupt the planting cycle, but that hasn't happened this year," says Mark Vaughan of Fresh Avenue. "Everything got in the ground in good shape, and the weather, while we've had some cold spells, is looking good. I think it's going to be a smooth transition."
That means no gap is expected as the desert region finishes its lettuce growing and the start of the Salinas growing region. "There's been some warm weather in the desert, which is beginning to impact quality–but not to a huge degree," says Vaughan. Meanwhile, Salinas is starting its production on time.
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Uneasiness about economy
However, as for demand for lettuce, it is still low. "Everyone I talk to says the markets are fairly depressed across most commodities. It seems like demand is still below expectation across most commodities," he says, adding that the industry is moving into the peak season for both retail and foodservice consumption, which stretches between April-June. "However, demand seems to be muted. I think it's an uneasiness about the economy and inflation, which is still pretty high in the U.S., and people are not spending as much as they have in years past."
This means pricing is lower at the shipping point than typically is seen at this time of year. "Demand is under expectation, supply is pretty good so we're in fairly depressed markets on commodity pricing," says Vaughan. "This isn't an overplanting situation. As demand rises, the markets will rise."
He also adds that on the cusp of the new season, growers are still planting relatively conservatively, as has been seen in the last few planting cycles. "There's not been much speculation in planting. They planted to expectation or a bit below so if there is a tightening, the markets could go high quickly because there's not that much product," he says.
For more information:
Mark Vaughan
Fresh Avenue
Tel: + 1-888-FRESH40
mark.vaughan@freshavenue.com
www.freshavenue.com