There are concerns that this week's polar vortex blanketing parts of the country will keep demand for produce low. This follows a January in which many growers and shippers reported softer demand on produce items thanks to colder temperatures keeping shoppers indoors. "With this weather, people are not getting out and about shopping or going to restaurants to eat," says Neil Mazal of East Coast Farms & Vegetables.
A lack of demand leads to concerns over supply backing up at shipping points and driving certain markets lower. "Yellow squash and zucchini have been trading FOB at $4.00 which is not even pick and pack cost. That's because there's no demand because consumers are not getting out of the house," says Mazal. Ditto green pepper markets which are in the $8-$10 FOB range. That's below the cost of production given picking and packing a box of green peppers today ranges between $10-$14.
Summer items affected
That lack of demand might be acutely felt on summer-type produce items such as watermelon or lettuce. "If it's -10°F, you might not buy a watermelon at the store to put in the fridge at home. Or if you go out to a restaurant, you may not order a salad and instead order soup because it's -10°F out," says Mazal. "Consumers are looking for hot meal type items."
That is if the cold temperatures haven't created a short-term supply issue. "In this weather, some trucks may not be able to get through in a timely manner to delivery points," says Mazal. "There will be delays in transit from the cold and that in turn will impact the shelf life of a product."
"Yellow squash and zucchini have been trading FOB at $4.00 which is not even pick and pack cost. That's because there's no demand because consumers are not getting out of the house," says Mazal.
Higher freight rates are always on watch as well for shippers and if equipment remains idle due to weather, there's a concern that trucks that can travel will demand more money for transportation.
Growing on watch
Another concern thanks to the weather is the upcoming growing regions. "Georgia is expecting a hard freeze tonight. There are some crops in the ground such as cabbage or kale and collards that are hardy for winter weather. However this means they may not pick it or can't get in or they get to the point where the cabbage is damaged or the heads become too big and too dense," says Mazal.
Spring planting is also just weeks away–as early as mid-March–and some growers and shippers worry about prolonged cold weather affecting plantings. "Growers are watching for freezing or flooding from heavy rains which means you have to wait until the ground is dry before getting in and cleaning it up to plant," says Mazal. Flooded fields are also sometimes susceptible to bacterial contamination, as was a concern with the most recent hurricane, Milton, to pass through Florida. The early harvest drove the market to a record high and then collapsed when recovered fields harvested too much. (The Mexican harvest was also abundant causing Mexican price levels to go to the minimum allowed by the import agreement said Mazal.)
"This could also mean now that there are times where there are gaps in supply, then oversupply and product that's overmatured in the field and no longer sellable for retail. In all, this weather really creates a domino effect," says Mazal.
For more information:
Neil Mazal
East Coast Farms & Vegetables
Tel.: +1 (561) 561 286.0286
neil@eastcoastfarms.us
https://www.eastcoastfarms.us/