ProduceIQ: Prices are ‘stuffed’ on low yields and a powerful Thanksgiving pull

You could have issues to be grateful for this yr, however contemporary produce consumers are struggling to depend their blessings. Limited provide, marginal high quality and excessive costs are plaguing all facets of the contemporary produce {industry}.

Of course, the typical grower wants value will increase to compensate for diminished yields and rising manufacturing prices. Combined with the everyday Thanksgiving vacation pull, the contemporary produce {industry} is seeing file costs throughout staple commodities like potatoes, onions and lettuce.

Consumers are in for a impolite awakening. Labor shortages, poor climate, and spiraling truck prices add gasoline to an inflation hearth already roaring with gusto. As economists debate the nuances of transitory versus persistent inflation, it is best to merely anticipate increased costs.

In response, Walmart, decided to defeat provide chain challenges, and keen to shock a number of unsuspecting Arkansas drivers, is launching extra autonomous vehicles. 

Of the three.5 million truck drivers within the U.S., solely 300,000 to 500,000 are ‘long haul,” which is where the most impactful driver shortage exists. With difficult working conditions, high turnover and an aging workforce (48-year-old average), it’s clever to remain in entrance of this systemic drawback. Truck shortages are anticipated to worsen additional throughout the vacation season.

Blue Book has teamed with ProduceIQ BB #:368175 to carry the ProduceIQ Index to its readers. The index supplies a produce {industry} value benchmark utilizing 40 prime commodities to supply knowledge for resolution making.

ProduceIQ Index: $1.04/pound, -2.8 % over prior week
Week #45, ending November twelfth

Dry onions proceed to soar into unprecedented territory. This yr’s week #45 dry onion costs far surpass any file set within the final ten years.

Reports from the Pacific Northwest’s fall harvest usually calm market nerves by way of the tip of the yr; nonetheless, poor yields and an already depleted provide is sending onion costs into unchartered territory.

Throughout the summer time, dry and sizzling climate set onion fields up for small sizes and a troublesome harvest. Growers battled harsh rising situations, weeds, and labor shortages. This mixture of worst-possible circumstances has resulted in what some growers report as their most difficult harvest in three a long time.

Yellow onions exceed $17, double the norm, on giant sizes. Medium merchandise dimension is reasonably excessive at $10 per 50 lbs.

If you’re an actual Floridian and Thanksgiving Key Lime Pie is tantamount to your love for air-conditioning and flip-flops, we suggest buying your limes ahead of later. The citrus is up +38 % over the earlier week and is anticipated to proceed climbing. Mexican manufacturing of limes is declining however will choose again up in a number of weeks.

Here’s one thing for consumers to be grateful for, tomato markets are lastly stabilizing. Thanks to a rise in manufacturing from Florida and Mexico, general tomato costs are down one other -20 % over the earlier week. Roma provide remains to be lagging a bit behind demand, however grape, cherry and rounds are seeing important enhancements.

Eastern spherical mature-green tomatoes dive as Florida quantity begins.

Nogales crossings for peppers and different chilis are anticipated to extend within the subsequent 7-10 days; look ahead to falling costs as elevated provide coincides with the lull in demand close to Thanksgiving Day.

Lettuce harvest shortages proceed to create lively markets. Even after iceberg costs peaked spectacularly two weeks in the past and have now settled, lettuce costs stay at a ten-year excessive.

Romaine lettuce could also be barely much less expensive than its ‘cool friend,’ however don’t suppose it’s something near an affordable date. Prices are up +7 % over the earlier week and are anticipated to remain elevated all through November. Poor high quality popping out of Salinas and Arizona’s delayed manufacturing are contributing to produce issues plaguing the {industry}.

Romaine lettuce costs plateau earlier than inevitable fall when Yuma commences.

This week’s not-so-subtle message, watch your pockets this vacation season.

Please go to our on-line market right here and revel in free entry to our market instruments which created the graphs above.

ProduceIQ Index

The ProduceIQ Index is the contemporary produce {industry}’s solely transport level value index. It represents the industry-wide value per pound on the location of packing for home produce, and on the port of U.S. entry for imported produce.

ProduceIQ makes use of 40 prime commodities to characterize the {industry}. The Index weights every commodity dynamically, by season, as a operate of the weekly 5-year rolling common Sales. Sales are calculated utilizing the USDA’s Agricultural Marketing Service for motion and value knowledge. The Index serves as a good benchmark for {industry} value efficiency.

from https://vegetablesnow.com/produceiq-prices-are-stuffed-on-low-yields-and-a-powerful-thanksgiving-pull/

from
https://almondetudier.tumblr.com/post/667997810465079296

from https://reginabailey.blogspot.com/2021/11/produceiq-prices-are-stuffed-on-low.html

from
https://almost-like-a-sunflower.tumblr.com/post/668002974850809856