SIMPLICITY IS GENIUS
SIMPLICITY IS GENIUS
Good morning and happy Wednesday. I would like to take you back to last year’s markets on 2 specific markets that are not related but have much in common. They are the truck and the avocado markets. Last year both saw stratospheric rises in prices, Avocados hit $80 to $100 per box and trucks from the west to the Northeast sustained $8000 to $10,000 for much of the season. These 2 very different commodities share one very important thing in common, SUPPLY AND DEMAND.
Supply and demand is as old as civilization itself. Many have tried to influence it by trying to fix prices, contract pricing, work stoppages, embargos, etc but they have failed every time from the unstoppable forces of supply and demand. They may be able to hold prices for a day or a week, but the markets always seek their correct levels and usually after a manipulation to keep prices high the fall becomes more violent than if they would have not manipulated at all.
The last few years we saw unprecedented growth in demand for avocados which lead to their price rise, helped a little by for lack of a better word extortion by some unsavory Mexican participants. The industry has responded by looking to other areas as well as other countries to feed this insatiable demand. They have succeeded! There now seems to be enough steady supply to feed the fire and keep prices at the lower end of last years price spectrum. Many countries are adding more and more acreage and many more countries are getting into production. I guess the gamble now is the 1% of Chinese that eat avocados grows to 10% which will help the demand side greatly but until then and barring anymore instances of mane made price fixing it looks like steady pricing for the avocado market because Supply and demand always dictate the markets.
TRUCKS Last year was a crazy year for trucks. New rules, much confusion and a few previous years of low pricing which drove many independents out of business caused low supplies and greater demand for the trucks that were available. That old Supply and Demand scenario again. The trucking industry responded by hiring more drivers. Drivers became a commodity and pay and benefits rose in order to lure them to fill the shortages across many industries. It seem for the time being the trucking industry has come in equilibrium with demand as prices have dropped significantly and trucks are consistently available. Hopefully we all learned a lesson on how important these drivers are to our industry and deserve much respect for what they do. Make sure you hug your trucker today.
RED PEPPERS- Cheap for another 2 or more weeks. If you need an add I am your guy.Prices will be down and dirty.
YELLOW PEPPERS – The party is over on Yellow peppers too. Prices will be lower
GREEN PEPPERS The only color showing life. Low volume in Florida is making everyone look to the west. My hope here is that some growers pick their colored bells green to capture this market which will help the colored bell peppers out of the dumps in 2 or 3 weeks.
SUMMER SQUASH. – New crop coming and prices will fall on all squash. Green, Yellow and Grey.
CUCUMBERS – Volume has returned prices are already off a few dollars from last week and I think we have a few more to go.
EGGPLANTS. They are not crashing but they will be off their lofty perch.
ROMA TOMATOES. MINIMUM
AVOCADOS The Super bowl pull did not significantly raise this market and prices will start to fall.
LIMES We have a little flush right now, but they should tighten up again in February.
HARD SQUASH Prices should start to rise slightly.
I am looking for a job because I don’t have a hobby, Produce is my life. So if you want it bought, sold, grown wholesale, retail food service I want to work for you and with you. Together we will make us better!
Thank you see you next week.