Western vegetable producers couldn’t have the end of the summer deal come soon enough. For the most part, markets were in the ashcan and red ink was flowing all summer.
There has been great anticipation that the winter markets would be better, largely because of the rumored decrease in acreage in the desert districts of California and Arizona. In late October, the industry got a jump on high prices as supplies from Salinas began to dwindle before desert production took off. The decrease in supplies led to a much stronger market for many different crops.
“Often we have an overlap among Salinas, Huron and the desert,” said Mark McBride, the longtime salesman for Coastal Family Farms, based in Salinas, CA. “That isn’t the case this year. There is no overlap and acreage is down in the desert — which stands to reason because of the poor markets the last couple of years.”
So as the winter deals kick off, grower-shippers are looking at very strong markets. Coastal Family Farms is expected to end its iceberg lettuce deal in Salinas during the week of Nov. 5 with dwindling supplies, and start in Yuma, AZ, that same week with relatively light supplies. “We have already seen a jump in the market,” McBride said on Oct. 30, adding that the lettuce market was in the low $20s.
He said romaine was even higher and green onions prices were through the roof. In addition, there were strong markets for celery and the leaf items and solid f.o.b. prices for broccoli and cauliflower.
The Market Update that The Nunes Co. produces each week told a similar story. For the most part it revealed decreasing supplies and stronger markets. For example, its final iceberg lettuce report for October stated: “Salinas is done for the season. Shipping from Huron with superior quality over what’s left in Salinas. Close to sold out for the week. Moderate supplies over the next few weeks. A firm and stronger market is expected into next week.”
The romaine report also noted an “improved, stronger and firm market,” which was similar to the report for cauliflower and celery.
Russel Widerburg of Boskovich Farms, based in Oxnard, CA, reported that green onions, which is his firm’s top crop, is in a demand exceeds supply situation, with the f.o.b. market at the stratospheric price of $30. Boskovich was about to begin shipping both iceberg lettuce and celery from Oxnard with strong markets expected.
McBride said the Thanksgiving pull would begin late during the week of Nov. 5 on the hardier item and continue the following week for most other vegetables. Thanksgiving is as early as it can be this year with the fourth Thursday of the month falling on Nov. 22. That should create even stronger demand for vegetables as the supply ramps up in the new production area.
