HEB, TRUCKS AND PRODUCE CONSUMPTION
Updated: Jul 29, 2019
Good morning and happy Sunday. I will probably will not write a market report on Wednesday. We will be in the Woods trying to recharge, so today we will do a little East Coast Markets and some opinions. First, I wrote about the produce department at HEB about a year ago, here is what I think today.
I have to say a year ago I went to an HEB in Mission and I was disappointed in their produce department and I wrote about it in my blog, quality, displays and some pricing were terrible. Of course, I received a little hate mail from some HEB associates but I stood by my assessment. Well one year later, yesterday to be exact, I walked into the same HEB and the produce looked great. I am still not a fan of the RPC displays; in fact, I despise them, when it comes to merchandizing fresh produce, but the produce people in that department stacked on so they did look better. The quality of the produce was outstanding and believe me I am very critical. Prices were great. Another thing I liked is that the buyers were not locked into sizes like most chains which one want XL this or SS that. The buyer and the store created value by offering Medium Roma tomatoes, different sizes od avocados. and small SS cukes. Hats off now you are MY HEB too great turnaround.
This past week I booked and paid for 3 team trucks with a brokerage company. One of the trucks was not a team and missed his appointment yesterday so I will be looking for a new company to add to my distribution list. I am old school I work 24/7 and I expect you to answer the phone when there is a problem. Anyone can do a job when it goes well, the great ones fix them when they go bad.
I am looking for a good reliable broker that has good trucks, his own,
single and teams to fill in the gaps with my independents. A tragic flaw with my current trucking company has created this opportunity. Great service, on time, fair rates are all I seek. I use broker to make my job easier not harder so if you can fill this gap please respond? Thank you. NO BS artist or sales hype please just good honest service. FYI as you can see with me, you lie, and you die. No need for it. Problems happen we fix them.
Next please read this article on Produce consumption
I have given several opinions on increasing consumption, for one large retailer need to change how they treat their produce departments. Generally, produce makes up for losses elsewhere so they work on 40%-600%. The money they invest in ecommerce is not and will not bring a high ROI if their stores and their produce look sick. So, what would I do if I wanted to increase consumption? Here you go.
Read this for starters
This takes care of most of the retail side, but I believe what we are seriously lacking is someone to tell our terrific story. Why don’t we see ads from the PMA on media touting the health benefits of our wonderful products? Why don’t I see ads on what is fresh and delicious right now? What is new from the farm. Maybe if we sold produce the way it grows with its ebbs and flows; we could market what is reasonably priced. How about an ad with a bag of cheese doodles and an orange, they both cost .79 what do you want to feed your children?
Hey, PMA, how about at all your conventions you have consumer days. Extend the show 1 day and let consumers in for a nominal charge so they can see our industry first hand. Large retailers can also contribute to these ad campaigns because they have the most to gain.
Technology has and will continue to bring us better produce with better yields and we need the consumption end of the equation to fit the supply side. If you have more, you sell for less if you have less you sell for more. This is how you sustain farmers, they need retail most when supplies are high. RETAILERS it’s not the same price all the time. The reason you put items on sale is that lower prices move more volume so why do you believe stagnant fixed prices on the buy and the sell side work? Time to change.
RED PEPPERS - Seems the plants are not cooperating for large supplies but the end of July 2 weeks of the 2's has kept this market in check. Supplies last week were down as I told you they would be. Hopefully new money next week will translate into new business. I think the East Coast terminals will be about $24 on 15# and $25-$30 on Choice on limited volume.
YELLOW PEPPERS- Still very short prices will remain in the 30 plus range
GREEN PEPPERS I missed this last week it looks like it was coming off, bad information from East Coast growers.
CUCUMBERS - Volume is coming from Canada which will put pressure on Western Cukes, this market will be lower.
WATERMELONS - Can you believe this market? Many areas wiped out and hot weather fueling demand. Markets will be in the $240 a bin range at the terminals
ROMA TOMATOES - Volume down, quality is suspect market remains strong $16 to $ at terminals
AVOCADOS - Everyday a new offer and it's always lower. I don't know where the slide stops.