The supply of pineapple has been tight out of Costa Rica, a key pineapple producing country. "Pineapples take a whole year to grow, so we think they got hit with some bad weather last year, and it's showing up now," says Jesse Garcia of LA Produce Fresh.
With lower supply out of Costa Rica, Mexico has been stepping in to send product. "We have had pretty good volume out of Mexico on pineapples," he says.
Meanwhile, demand has been good for pineapple, and it's expected to stay steady, especially through Easter, which tends to see higher consumption of many commodities, including pineapple.
© LA Produce Fresh
Pricing could pick up
As for the market, it's been in the double digits for some time now. "It went up as high as $20, but then it came down a bit a few weeks ago, and it's now sitting around $16-$17," says Garcia. "I think it's going to get a bit stronger now, especially with the holiday coming. It'll pick up by a couple bucks, but it's been pretty steady for a couple of weeks now."
Of course, what could also impact pricing on product from Mexico are the potential 25 percent tariffs on product coming into the U.S. from its southern neighbour, which are on pause until April 2. "If the tariffs hit, it's going to bump up the FOB. Right now, prices out of Mexico are approximately $12-$13, and with tariffs, that will add a couple of bucks a box. The problem is that Costa Rica doesn't have enough to satisfy the need right now, so we have to bring in product from Mexico," says Garcia.
For more information:
Jesse Garcia
LA Produce Fresh
jesse@laproducefresh.com