Nothing Artificial Added
Good morning and Happy Wednesday. I hope all the people in my produce universe are doing well. I read this article and thought it was quite interesting.
Digitizing our food supply using technology and artificial intelligence. This made me think of many situations if this worked would answer some of my most perplexing questions in produce, again I reiterate, if it worked. It seems to me that this technology is better suited for crops that can be stored, hence long shelf life or when weather patterns or incidents now predict future supply gaps, which to be honest, I can tell you that right now with my own intelligence with nothing artificial added. The problem as I see it is when you think you can pick retail demand to forecast demand into the future. I would also add the supply side into that mix for the near future but for the long-term future the advances in protected agriculture may make growing produce more like a manufactured product with less of the spikes and gluts of today’s farming.
On the retail as well as the wholesale side you think you have it all figured out with volume, but you never do, it’s too fluid. This week’s winner can be next month’s loser.
If you read my profile you will see I have done it all in the produce business. For many years I walked the Hunts Point market in the Bronx and bought for many customers up and down the East coast. During those times are also speculated much on many items. I also traded with the Boston and Philadelphia markets. Stock and commodity traders would call this arbitrage. I looked for the differences in the markets and capitalized on them for myself and my customers. During those times it amazed me how an item was so stuck that no one wanted them, and this was prevalent in all 3 markets. One year I could remember you couldn’t give cucumbers away. All 3 markets were from $3 to $5 and no takers and it went on for 2 weeks. One night in New York the market flipped and immediately went $10/$12. I immediately called Philadelphia and Boston and guess what? Yes, their markets were also much higher. This has happened time and time again. I always wondered, what happened in one instant to change the demand across all of these markets? If AI can predict that demand I am in, but it seems to me the artificial Intelligence would have to be in the consumers head, to flip that switch.
RED PEPPERS – This market look like it was headed for more volume and lower prices, then 115 degree plus temperature for a few days put an end to that quickly. Demand is good market is firm and if we don’t cool off, we can see prices go higher. This market will be short for the next couple of days at least.
YELLOW PEPPERS. Same scenario here.
GREEN PEPPERS – Coachella will be winding down, Bakersfield ramping up. This market will remain strong.
CUCUMBERS – Decline in volume will keep this market strong
WATERMWLONS – Better weather means better demand; better demand means higher prices. Melons are cheap in Arizona to compensate for the freight to the East. Georgia fruit is beautiful.
ROMA TOMATOES – This market is steady. You know what is great without the suspension agreement? You can sell you XXL/XL classy tomatoes for a premium. You can sell color and smaller sizes for a lesser price, and everything moves along at their own pace. This my friends is sustainable for the growers. Now we just need the government to get out of it with the tariffs and all will be perfect.
HAVE A GREAT DAY!!