As it has been for many commodities in the first quarter of 2025, demand for bell peppers has been softer. "In the last several months, we've been holding back product because of demand in general. It's almost like things just aren't back to the pre-pandemic buying habits," says Tony Incaviglia of GR Fresh. "Most growers are feeling the same thing. Consumers are buying what they need and not necessarily what they want and have cut back. You're not seeing the demand you would have seen historically four to five years ago."
With a fairly consistent bell pepper supply, the company has been covering its contract commitments. However, the softer demand has even impacted those commitments with some clients not participating at 100 percent. "Their numbers are off as well–foodservice has especially been off," he says.
That said, while the market has been fairly consistent in terms of pricing for bell peppers, it has strengthened slightly in the last four to five days. "The markets are jumping up and that usually starts to happen once you start to get into the later parts of the winter growing season," says Incaviglia, adding that pricing for extra large and jumbo-sized bell peppers is in the $20 range.
Lighter plantings this season
In terms of supply, plantings for bell peppers were a little lighter for GR Fresh. "We had no idea what the water situation was going to be like in Culiacan, Mexico so I think that's causing a bit of it," says Incaviglia.
Meanwhile, production in the Southeast seems a bit lighter on supply than normal. Anytime one growing region hits a light patch it has a strong effect on the markets, he adds.
On top of softer demand, there is also uncertainty in the marketplace at the moment as growers and shippers wait to hear about whether tariffs will be implemented on product from Mexico and Canada. (They are currently on pause until April 2.)
Looking ahead, as supply will tighten, there are hopes demand will pick up for bell peppers. "We're almost into April and May is usually when we start thinking about transitioning into the summer growing regions which happens in June," says Incaviglia. "We look forward to our summer program every year because that's a very strong time of the year for us. Some of our best production, especially green bells, come out of Coahuila, Mexico which is just six hours south of us."
For more information:
Tony Incaviglia
GR Fresh
Tel: +1 (956) 631-8135 Ext. 3
tony@grfresh.us
www.grfresh.us