Pricing on cabbage looks to be higher than normal--even the new normal, which is stronger pricing that takes into account higher production costs. “As a grower, I hope that floor continues to stay up. It would be difficult to continue if prices go back to those floor levels from, say, five to 10 years ago,” says Eric Hansen of Hansen Farms LLC. “I don’t see pricing going down though in the near future.”
Indeed, supplies of fresh cabbage right now are volatile and have been for at least the past month following the fall hurricanes in Florida, cold temperatures and more. “It’s really hurt the fresh supply out of the Southern U.S. Yields will get there but until that happens, I don’t see pricing coming off,” says Hansen.
Storage vs. fresh supplies
Hansen Farms grows storage cabbage out of New York and has seen increased demand for storage cabbage. Especially during such volatile times. “When weather, etc. happens, storage cabbage programs do make that much more sense--once I put the crop away, it’s a pretty sure thing,” says Hansen, adding that customers are increasingly committing to a year-round storage cabbage deal.
At the same time, he’s also seeing increasing general demand for cabbage, especially given it’s an economical alternative to lettuce, a commodity that has been spiking in price over the past few months. “It’s a good substitute and we’re also seeing it used more and more in foodservice and restaurants in Asian, Mexican and other dishes. It seems to be a trendy item,” he says.
That said, for the upcoming 2023 crop, Hansen Farms’ acreage will likely continue to stay as is. “The main concern as a grower is the pricing. It has to keep up inflation, particularly labor,” says Hansen. “It’s been okay but we need to see those numbers creep up more. I’m also not going to gamble on a bunch of extra cabbage until we can get those commitments on higher pricing levels.”
For more information:
Eric Hansen
Hansen Farms
Tel: +1 585-526-5260
[email protected]
http://hansenfarms.com