Cauliflower markets begin steep hike

ProduceIQ Index:?$1.08/pound, down -13.0 percent over prior week

(Week #41, ending October 13th)

BY Mark Campbell, CFA

Active tropics are still plaguing fresh produce supply chains. Hurricane Lidia made landfall as a powerful Category 4 Hurricane off the Southwestern Coast of Mexico last week and was closely followed by Tropical Storm Max. Lidia hit landfall in Jalisco and Max further south, both to the West of the avocado region of Michoacan. Although the storms avoided directly impacting active growing/harvesting regions, rain, and wind battered growing regions in Central Mexico. Approximately 4-8 inches of rain fell in Southern portions of Sinaloa.

There is another area of interest in the Atlantic Ocean. The tropical disturbance is forecasted to develop into a named storm this week. However, forecasters predict a cold front will keep the storm off the mainland.

Significant decreases in the mixed berries category are finally leveling out index prices. Raspberries, blueberries, and strawberries are down notably in price over the previous week. However, blackberries remain high. The supply of strawberries and raspberries is slowly increasing from Mexico and will steadily bring down prices over the next few weeks.

Inclement weather in California is negatively impacting cauliflower supply. Prices doubled to $34, a ten-year high. Unseasonably warm temperatures are causing quality issues and decreasing yields, and the reported volume from the Salinas/Watsonville area is around 50 percent of the norm for week #41.

The extreme overnight heat will likely impact the yields of other heat-sensitive commodities such as broccoli, cabbage, and brussels sprouts grown in the region. Fortunately for buyers, cooler temperatures aren’t too far off and should bring some reprieve to a waning supply.

Seemingly overnight, green bean prices doubled in response to an unexpected gap in supply. Growers in the Eastern/Midwestern U.S. are finished, and Florida and Georgia have yet to pick up production. Georgia usually takes on the production mantle around week #40; however, the grower's efforts have been hampered by hurricane Idalia's damage to green bean fields.

With no relief anticipated until November, prices will likely explode over the next few weeks. In the meantime, look to suppliers in Central America and Florida to fill in the gaps in supply.

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Mark Campbell, CFA , Founder/CEO of ProduceIQ

Mark Campbell was introduced to the fresh produce industry as a lender for Farm Credit. After earning his MBA from Columbia Business School, he spent seven years as CFO for J&J Family of Farms and later served as CFO advisor to several produce growers, shippers and distributors. In this role, Mark saw the impediments that prevent produce growers and buyers to trade with greater access and efficiency. This led him to cofound ProduceIQ.