Broccoli supply is tighter than normal, resulting in a strong market. Salinas, CA is winding down and supplies out of Santa Maria, CA are lighter than usual due to quality issues caused by hot weather and rain. A heat spell about a month ago stressed the plants and had an impact on quality. While the condition of the plants is now improving, most of the harvested volume is eaten up by contracts. "There is not much open volume from California available currently as contract business has priority over the open market," says Vince Rosa with V&H Fresh. Broccoli that hits the market today is priced at $25.
Mexico
Mexico, another significant supplier to the U.S., has been dealing with quality issues as well. While the situation has been improving in the past seven to ten days, retailers are still hesitant to buy broccoli from Mexico as product of inferior quality entered the U.S. in the past six weeks. "The country has a black eye in the industry, and it takes time to recover from a bad reputation," Rosa shares. "However, growers and shippers are working hard to make a comeback."
East Coast
On the bright side, Georgia, Indiana, and Virginia are all going strong with exceptional quality and good volumes. Georgia will continue to harvest broccoli until the beginning of next year while Virginia and Indiana will harvest until the snow hits, which is usually around the first week of December. With $16-$18, pricing out of these markets is more favorable and they have an additional benefit of much lower freight costs. "The $16-$18 market is very positive as everyone wins, from growers to shippers, to consumers."
Transition
California is now starting the transition to the Imperial Valley in the southern part of the state and to Yuma, AZ. "Production in these two regions doesn't really start until the first week of December and the first product won't be usable," comments Rosa. "It will be weak and stressed due to heat these regions are still experiencing. Once the first harvest has been cleaned up, more volume will become available."
Altogether, limited volume can be expected from California and Arizona in the next month. In addition, Indiana and Virginia will freeze out around December 1, so the market will lean heavily on Mexico. "Once buyers regain confidence in Mexico's quality and see the price difference with California, I am confident they will jump back in," comments Rosa. "It is hard to beat $15 broccoli that is of good quality."
For more information:
Vince Rosa
V&H Fresh, LLC
Ph: +1 (918) 957-5053
[email protected]
www.vhfresh.com