Hunts point market video tour
Updated: Feb 14, 2019
#wholesale hashtag#vegetables hashtag#foodindustry hashtag#fruit hashtag#retail hashtag#marketing hashtag#foodservice hashtag#terminalmarkets hashtag#wholesaleproduce hashtag#grower hashtag#limes hashtag#peppers hashtag#avocados hashtag#amazon hashtag#wholefoods hashtag#mpga Good morning I am flying home today and I wanted to share a video I made for all of those whom have never been to the Hunts Point Market, our nations largest terminal market. I will add my commentary and market report to this post later today while I am flying or by tomorrow morning. I will discuss the USA exit from the suspension agreement as well as Whole foods raising their prices. Remember when I told you not to worry when Amazon purchased whole foods? I told you Amazon does not know how to sell produce or any other perishable for that matter. The real problem is that we had other retail giants follow their lead and are also heading forty a dead end. More later. Click here to see the video ............
USA EXITS THE SUSPENSION AGREEMENT
Good morning and as promise my commentary and market report a day later and hopefully not a dollar short.
First on the menu is the USA exit from the suspension agreement. Just in case you are new to following me I loathe the suspension agreement and have for the past 20 years or so. The reason being that it tries to control a market that is dictated by supply and demand and that is an impossible feat. If you are not familiar with the suspension agreement, please google it because I will not be restating it here and only will be giving my opinion on the exit of the USA.
Florida growers with the aid of Marco Rubio and the commerce department notified Mexico that they would be exiting the tomato suspension agreement. This process will take 6 months at which time the agreement can be renegotiated or terminated. If terminated then Mexican growers would have to pay duties of 17% up front of a preset weekly price, based on the markets, before they could export tomatoes to the United States. The current $8.30 floor price for a 25-pound box of tomatoes would also be terminated. The Florida tomato growers claimed that Mexico was dumping tomatoes and it was hurting family farms, which in my opinion and backed up by facts both are not true. First the production of Florida tomatoes is basically controlled by 4 families not by small family farms. Ironically these same 4 families also buy and grow tomatoes in Mexico. Here is a fun fact. Do you think those small family farms could afford to pay to lobby Senator Rubio and the commerce department? Hmmmmm?
Argument number 2 is that Mexico is dumping tomatoes, meaning selling less than cost. I have been in the produce business for over 40 years and have done it all from selling produce from a pushcart in NYC to growing strawberries in Costa Rica and Melons in Mexico and there is and was ALWAYS a time that I sold my produce for less than production cost. The reason is simple produce as I stated ad nauseam, produce is a supply and demand business and there is nothing more powerful than supply and demand.
I honestly believe the Florida growers would lose even more market share by exiting this agreement and consumers would benefit. This is contrary to popular opinion but let me state my reasons. First, Mexico quality has surpassed many of the Florida growers produce. They have invested in their fields, packing facilities and technology while Florida growers did not. In turn Mexico has a better product so if you remove the $8.30 floor, they are now able to compete on a fair playing field price wise with all of the tomatoes of the world. In the past USA consumers had to pay retail off the $8.30 floor but Mexican growers in order to move their excess volume sent them to Canada and kept them in Mexico ant the price was literally pennies on the dollar of the USA price. If allowed in the USA these tomatoes could yield a better average price for the Mexican growers even after the duties and a lower price for the USA consumers. I believe the Florida growers are bluffing in order to get the floor price raised, which would be bad for consumers, a very bad decision for Mexican growers and a windfall in profits for those Florida growers who are pushing the commerce department to this end. My dad always said if something does not make sense to you throw money into the picture and it will all make sense. Well it seems the Florida growers threw money into the picture.
Please check this article so you can see my opinions as well as others with a different point of view.
WHOLE FOODS IS RAISING PRICES
Remember when the industry was concerned about Amazon buying Whole Foods and disrupting the retail industry? I said the there is nothing to worry about because Amazon does not know how to sell fresh and especially produce. Well go into Whole foods and you will see I am correct. More importantly EVERY major retailer upped their technology to follow the Amazon lead. I have also said in the past that the key to selling on line is to have beautiful produce displays, fair pricing and outstanding quality in your brick and mortar stores and then the consumer will be comfortable in the transition to online.
Instead they spent obscene amounts of money in stores with no cashiers and other projects, which I believe accounts for about 4% of their store sales. How is that investment working out for you? Did you really think that people will leave one store with quality to shop at your stores with inferior quality because you don’t have cashiers? It amazes me who supposedly very smart people all follow idiots.
Have a great day I think I ticked off enough people for one day.
It seems you like videos I will do more in the future.