3 win, 300,000,000 lose and more news around the industry and the Terminal Market report
Updated: Jan 12, 2020
Good morning and Happy Sunday. Here are a few tidbits I came arcos this week Nearly 73 percent of shoppers will choose a grocery store because it has more variety in its fresh produce offerings than other retailers, according to C+R Research. No kidding, like you really need research to figure this out. Who said: “The supermarket battles will be fought in grocery, but the war will be won in fresh”? Look at the first picture for a better way. Quit Relying on Spreadsheets, Quit Living off Data. Manage by Walking Around. Talk to People with your Voice. Not a Keyboard. Wiseman once Said: If you want to Know if it’s Raining, Walk outside. This is great advice for people whom want to buy and sell produce as well.
In what is truly privilege against the masses it’s time for Senators and Congressman of 49 states to stand up against one state. It has to be quite evident by now that consumers need Mexico to supply us with tomatoes because Florida is not able to grow for the USA demand. At a time when historically tomatoes would be around $12, they are now $30 to $40 a box and much more demand than supplies. It basically comes down to this, our Florida politicians put 3 family’s greed above 300,000,000 USA residents, whom now have a harder time feeding their families. I am asking for all of you to write your congressman and Senators to repeal the tomato suspension agreement and to stop any further action for the US government to get involved in what was a perfect system of supply and demand of fresh produce, government controls do not work, never did and never will. Furthermore, all of the largest retail supermarkets have skin in this game so I urge you to use your clout to benefit the consumers and yourselves, I am sure you are not happy with this situation as well as the consumers? Mark my words, if you don’t stop this now, they will destroy more items in the future.
TERMINAL MARKET REPORT
Did you watch my video last week? If you did you were aware everything was about to take off. Well I have some bad news; this week will be worse. I do expect more demand and less supplies this coming week.
RED PEPPERS – Ok I said that the middle of the month would be the start of the larger than expected production in red peppers but I forgot to inform mother nature of my prediction. I believe the whole deal on reds hinges on the hot house production, which I thought would be in full swing this week and it’s not. Reds looked like they were coming off but by the end of the week they cleaned up very well and were headed higher. Furthermore, Canadian shippers became buyers of reds instead of sellers and that help propel the 11# market. I think the Terminals will be a low of $16 on 15# and $20 to $22 on choice but some $18 possible because there were elongated as well as blocky choice reds available, more than #1 grades. Watch for this market to gap in 3 to 4 weeks because of the HOT green pepper market. Growers will pick red and yellow peppers green to capture a high market but that means they won’t be there to pick in the future.
GREEN PEPPERS – Demand exceeds supplies. Hopefully the warmer weather returning to the South will help supplies a little but that’s all we will get, a little help. This market will remain strong.
YELLOW PEPPERS – A different color but the same story.
CUCCMBERS – If you thought last week was high wait until this week. SS can easily bring $40 plus at the terminals. SS cukes ended the week as high as $30 fob and high freight exacerbated the situation. Cucumbers are demand exceeds supplies and there is absolutely no relief in sight. I would not be surprised if we see a $50 market sooner rather than later.
GREEN YELLOW AND GREY SQUASH – Why did I group all of these together? Because they will all be demand exceeds supplies for the foreseeable future.
EGGPLANTS – This market should also trend higher. What is keeping a cap on it is there are an abundance of choice eggplants from Florida. Number 1’s from Florida and Mexico should start to firm. I believe the shipping point markets will be higher before the terminals.
BROCCOLI RABE – Our first load is on its way to Canada. It seems they know what beautiful rapini looks like and less concerned with the name on the box because they are selling what is in the box. Look at those pictures, that rabe belongs in your store and I will be very aggressive pricing it to make sure all of your customers try it. Call me, I have more volume coming. All of you that only can sell ONE brand, I bet you if I were running your store I could sell anything I wanted to sell and keep them coming for more. GET OUT OF YOUR BOX!
ROMA TOMATOES – Well it seems like my first thought was right that romas would come off. I have to tell you a story. I think it was 1988 and we had a freeze in Florida, there were no round tomatoes. I was selling beefstakes and Roma tomatoes by the load for $50 a box. I had customers in Boston that said they never sold Roma tomatoes, guess what? They sold them then and continue to sell them now. Moral of the story? Until rounds are available and at lower prices, there will be demand for Roma tomatoes so they will not fall too much until supplies exceed demand. Or until those retail giants use their leverage and get us out of this tomato suspension agreement.
AVOCADOS – Demand is picking up and prices may follow leading up to the Superbowl. I have some good news; I may have some more avocado contracts available in the near future. If you missed the first round don’t miss the next round.
HARD SQUASH – Big kabocha is very tight, mostly 12 size available. All other hard squashes are stable.
Have a great week. I’ll be in NYC Feb 4-7 so if you need me call me to set up a meeting