California table grape growers are ready to jump into new proprietary varieties of red and green seedless grapes this time during the season. With table grape movement having been fairly flat, pricing will be based on moving volume. In addition to competitive pricing, strong promotions set for the balance of the month should help keep inventories under control. "The hot weather caused the dog days to settle in a bit early," says Ira Greenstein with Direct Source Marketing. Extreme heat hit the Central San Joaquin Valley in July and for a total of 18 days, the temperature exceeded 107°F. In fact, many of these days, the temperature hit highs of 115°F. The key will be freshness and quick turns as the hot weather has impacted fruit quality of an early California crop that doesn't have the legs to sit in cold storage too long. "Retailers are eagerly seeking better quality fruit and growers are very hopeful quality will improve, and retailers will continue to stay engaged."
Red seedless pricing to stay firm
The quality of Flame seedless grapes is starting to show signs of decline due to ongoing heat stress. Fresh varieties such as Scarlet, Magenta, and Timco are expected to offer some respite, but their availability will still be limited this week. Pricing for red seedless grapes remains firm, with the market ranging from $22.95 to $26.95 FOB and mostly settling at $24.95. "I expect this firm pricing to continue for the next two weeks, until we get into the peak of Scarlet Royal grapes," Greenstein said. With heavy cleaning still needed in the fields, growers will keep packing less fruit than projected.
Wide range in pricing of green seedless expected
"The quality and condition of Sugraone and Ivory have been variable, but most lots are meeting retail specifications," commented Greenstein. However, growers are looking forward to transitioning to better varieties including Princess, Timpson, and Great Green. "These should give the industry a boost at store level." Despite decent inventories of Ivory, the slower pace of newer varieties becoming available is keeping pricing stable. A wide range in pricing is expected as some growers look to make deals on older lots while marketers hold out for higher prices for fresh fruit. Currently, FOBs range from $18.95 to $24.95 with the market mostly settling at $20.95. There will be plenty of opportunity for retailers to promote green seedless grapes through the entire month of August and then roll right into September.
For more information:
Ira Greenstein
Direct Source Marketing
Tel: +1 (914) 241-4434
[email protected]
www.directsourcemktg.com