Hurricane Helene Wreaks Havoc

BY Mark Campbell, CFA

Week #39, ending September 27th

ProduceIQ Index:? $1.29/pound, down -2.3 percent over prior week

A week of biblical proportions. The death toll from Hurricane Helene continues to climb as growers in North Florida, Georgia, the Carolinas, and Tennessee assess damage from the massive storm. Over ninety people have been reported dead. Rescuers expect that number to climb as they access more isolated affected areas.

The hurricane landed in Florida’s Big Bend as a Category 4 storm on Thursday evening. Over three days, the storm brought fierce wind and rain to areas throughout the Southeast. Some places in Western North Carolina saw more than 20 inches of rain. Millions of people are without power, and significant roadways and bridges in the affected areas are impassable due to damage.

Many commodities were in the line of fire from this storm. The path went directly through Georgia’s growing regions as the fall harvest began. Although many undoubtedly suffered damage, growers are still diagnosing the full extent of injuries to fall crops. Corn, pepper, cucumber, squash, and tomatoes are just a few crops that will be damaged.

On Tuesday, the International Longshoremen's Association will begin a strike at U.S. East Coast and Gulf Coast ports, citing wage disputes and opposition to automation. The strike could disrupt key supply chains. No negotiations are planned, and President Biden has stated he will not intervene.

Corn supply is tight, especially in the East. Damage to fields and wet harvesting conditions in Georgia and the Carolinas will drive up the prices next week.

A notable portion of the bean supply comes from Western North Carolina during the early fall. As a result, we will see prices rise next week as the markets adjust for the damage done by Hurricane Helene. In the West, bean supply is similarly weak due to a gap in production. Currently, bean supply and prices are moderate, so enjoy the opportunity to load up while it lasts.

Average bell pepper prices climb higher, up +5 percent over the previous week. Georgia’s fall harvest was set to begin in about two weeks. But we will likely see some delays and impacts from Helene. Unrelated to the storm, red and yellow bell peppers are particularly short, and relief is not forecast for at least ten days.

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Bio

Mark Campbell is an industry veteran with over 20 years of produce experience. After earning his MBA from Columbia Business School, he spent seven years as CFO for J&J Family of Farms. He 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 from trading with greater access and efficiency. This led him to cofound ProduceIQ.

ProduceIQ Index

The ProduceIQ Index is the fresh produce industry's only shipping point price index. It represents the industry-wide price per pound at the location of packing for domestic produce and at the port of U.S. entry for imported produce.

ProduceIQ uses 40 top commodities to represent the industry. The Index weights each commodity dynamically, by season, as a function of the weekly 5-year rolling average Sales. Sales are calculated using the USDA's Agricultural Marketing Service for movement and price data. The Index serves as a fair benchmark for industry price performance.