Fall produce markets in the United States require more than courage

Published 2021년 10월 4일

Tridge summary

The article discusses the impact of weather conditions and supply issues on the agricultural market, with a focus on tomatoes, broccoli, cauliflower, and oranges. It notes that a strong supply at the beginning of the year led to low market prices, but severe drought in the West and rainy summer in the East have led to elevated prices and a supply deficit, particularly for lower-value processor tomatoes. California, the second-largest supplier of tomatoes, is facing tough water conditions, leading some growers to reduce tomato acreage. Meanwhile, broccoli and cauliflower prices are on a five-week upward trend due to production challenges in California and reduced Mexican supply. Orange prices are also increasing due to supply issues with mandarins and Valencia supply in California. The article also mentions high blueberry prices due to labor shortages at ports of entry and uses the ProduceIQ Index as a benchmark for industry price performance.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Between severe drought in the West and a rainy summer in the East, tomato supply can’t catch a break.Across varietals, prices remain elevated with little hope for relief. Onlookers wonder, is it an abnormal year or a new reality for tomato markets?It hasn’t always been this way. Supply began the year strong, causing true market prices to remain below the minimum prices of the suspension agreement from February through April.One new grower recently reported the pain felt from these early markets. According to their quarterly report for 2nd quarter ending June 30, AppHarvest lost an incredible $32 million.However, most expenditures were indirect sales, general and administrative expenses rather than direct costs of growing tomatoes.Like the scarecrow from the Land of Oz, with plenty of courage (and cash-on-hand), they’re pressing onward to see the wizard. Management’s parallel quest for “bran-new brains” is in the form of additional facilities, increased marketing, and product ...

Source: Producebluebook