The Source - April 3, 2019

Washington:
In some areas, students are returning from spring break and production, in the east, continues to slow. Couple this with retail pressure shifting to the west (bags) and remaining inventory (shippers) leaning toward bigger sizes, prices continue to firm up on certain varieties and foodservice sizes. Know that some size substitutions may be necessary going forward and for the remainder of the season.

Eastern Region:
Demand continues to head west as Midwestern/eastern regions slow down production.

Supply out of Caborca this week remains in good supply with great quality as well. Most growers out of Caborca are expected to start closing fields in the next 7-10 days due to seasonality. Obregon has been producing a decent amount of volume and will continue to do so thru May. Markets continue to be sluggish to start the week but we should see an increase in demand towards the end of the week as Easter pulls startup.

California started the season with a delayed and light harvest. Growers are expected to ramp up the harvest this week, mostly 48s and larger. Keep in mind, California is expecting less than 50% production from last year. It will be a short season for California and Peruvian crops this year. Peru will start up in May.

The next 2 weeks are crucial shipping weeks for the industry to harvest and attempt to maintain a healthy supply. Suppliers are scrambling to get fruit to cover Holy Week (Week16 No Harvest) and ramp up the volume thereafter for Cinco. The industry started week 12 with less inventory available at the border (compared to weeks prior) and leaner inventories. We are in a demand exceeds supply situation. Field pricing in Mexico has increased substantially, the field costs started to increase last week and continue to climb today. Last week the industry received roughly 20% less fruit than the week prior. Ripe and preconditioned fruit will be limited.

Alerts:
The industry started week 12 with less inventory at the border and leaner inventories. Prices have increased about $30 in just a 10 day period and still increasing daily.

Green Bell pepper is in very short supply and will remain in short supply for a few weeks. Supplies have been tight for a month but demand has been so low the market did not respond. Now supplies have gotten tighter and demand is stronger as the country starts to warm up for spring. Florida is in between their winter season and the spring crop which will start in later April, Mexico is winding down for the season about a month early putting more pressure on Florida shippers to fill orders.

Alerts:
Pepper is in very short supply and will remain escalated for a few weeks.

Green Bell Pepper- Light volume of green bell pepper arriving in Nogales this week. Mostly small and medium size being harvested from both Mexican growing districts. The quality on the green bells from the Sinaloa district is fair. The quality from the Sonora district is fair to good. Green bell pepper demand currently exceed supplies. Green bell pepper supplies are expected to start decreasing from the Sinaloa growing region and give one last strong push from the Sonora growing area in the month of April. Market on green bells have started to increase again, mostly on medium size and Larger. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Pepper- Steady supplies of Red bell pepper arriving in Nogales, AZ from Mexico this week. The market/price on red bell pepper has slightly increased after better demand being shown. Better volume on Hot House variety and in all hot house pack styles. Light volume on elongated variety. Steady volume on Hot House variety expected through the week. Quality of red bell on both varieties is good. Red bell supplies from Mexico currently crossing through both Nogales, AZ and McAllen, TX.

Yellow Bell Pepper- Moderate volume of Yellow Bell pepper continues to arrive in Nogales. Both elongated and Hot House varieties being pack in 11lb/15lb and 1 1/9 bushel carton. Quality on both varieties is good. Currently, demand still exceeds supply. Market on yellow bell is still strong. Yellow Hot House bells are also available to load in McAllen, TX.

Blackberries are crossing into the U.S. in a light way from Mexico. As is the situation with the raspberries the blackberries are in a planting gap. Shippers are holding customers to previous usage numbers and limiting open market sales. The market is up and will remain this way until the domestic product begins to show us some numbers in early May, weather permitting.

Alerts:
Should the border closure in Mexico become a reality we will see severe shortages on all mixed berries.

Blueberries are in moderate supplies with some temporary shortages coming from transfer truck issues as in weeks past. There is Florida local crop available as well as some small numbers of Peruvian imports out there. Mexico is still producing declining numbers and the market remains firm with higher undertones. Look for this trend to exist
until local product of USA starts to arrive on the market in May.

Raspberries continue to be in short supply coming out of Mexico. The market remains firm and will continue to be that way until we start seeing domestic production begin in California in mid-May. Quality is fair to good .

Alerts:
Proposed pending border closures would effectively take away 100% of the current supplies being sold in the U.S. Mexico is the only source at this point

Strawberries are vastly improving in availability in California. The quality is good with firm fruit and excellent color. Berry counts are averaging 18to 20 pieces per clamshell container. Fruit moving forward will be highly promotable heading into the Easter seasonal pull. Oxnard and Santa Maria are the main players right now with Salinas and Watsonville coming online within a few weeks. When all three districts are up and running in earnest there will be an abundance of strawberries. Look for the market to ease off substantially by the end of the week.

Peak Seasons:
Santa Maria and Oxnard are on the front end of their volume increases .

The broccoli bunch market continues to stay steady with the nice weather in Yuma and Mexico while the crown market has picked up. This warmer weather the next several days in Yuma and Mexico is helping to spur growth. Look for supplies to stay steady with the improved weather. Quality is good with slight purpling, some mechanical damage, and occasional yellow cast.

The Brussels Sprout market continues to remain snug with supply being affected by the recent and current rains in Salinas and Oxnard. The quality has been affected by the rain and cold weather and sizing tend to run smaller due to this recent colder weather. Look for the Brussels Sprout market to remain tight going into next week.

The carrot market continues to remain steady. The quality is good, and supplies are adequate to meet current demand. We see no change in the carrot market going into next week.

Cauliflower continues to come off this week with more supplies in all areas. The Yuma weather continues to spur the growth process which has brought the fields ahead of schedule. The fields next week are looking to gap with supplies becoming much tighter. Overall, the quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to get tighter going into next week.

Overall, this market has remained steady, with pricing continuing to be at record numbers. Suppliers continue to struggle to cover orders, especially on the value-added side. Escalated pricing continues to be in effect. Carton business has been more readily available compared to past weeks. Light supplies are expected thru the month of April. Production out of Mexico has helped to ease the strain of low production in Oxnard and Santa Maria. The overall quality is fair, with pith, insect damage and leafy tops being reported upon arrival.

Jalapenos- Good supply of Jalapeno continues to be available to load in Nogales, AZ from Mexico. Growers continue to harvest jalapeno out of the Sonora and in Northern/Southern Sinaloa. Quality is good out of both growing districts. Mostly medium to large size continue to be available from both growing regions. Market on jalapeno continues to be in the mid-teens. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supply of Pasilla peppers continue to be available in Nogales, AZ from Mexico. Good volume is expected to continue through the week. Quality on Pasilla is good. Size on the pepper currently ranges from Medium to Extra Large. Market on Pasilla is currently steady. Pasilla crossing through Nogales is being harvested in Sinaloa. Quality from Sinaloa is good. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Good supply of Anaheim available to load in Nogales, AZ from Mexico. Steady Anaheim production expected to continue. Anaheim crossing through Nogales continues to be harvested in the Mexican states of Sinaloa. Quality of peppers from Sinaloa is good with mostly large size being packed. Market on Anaheim is steady/lower. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Nogales, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Price on Serrano pepper is currently in the teens and should remain the same through the week. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Husk and Peeled tomatillos are available to load in Nogales, from Mexico. Quality on both varieties continues to be good. Good supplies on both husk and peeled tomatillos are expected to continue through the week. The tomatillo market is expected to remain steady. Both Husked and Peeled tomatillos are in the low teens. Both varieties of tomatillos also available to load in McAllen, TX

The Cilantro market has come off a bit in Yuma and Mexico with the recent warm weather in Yuma and Mexico. The cilantro quality is good and has been affected a bit by the colder weather at the beginning of January. Look for the cilantro market to continue to stay steady going into next week.

District 1&2 (Central Valley & Southern California Coastal Region) continues to peaking on 75ct/95ct/115ct. The foodservice sizes 165’s and smaller are tight, expect limited availability moving forward. Prices are firming up and looking to remain steady in the high $20’s low $30’s on choice and fancy fruit. The rain and cold weather brought on the larger fruit and smaller fruit is staying limited on sizing and green on the trees.

As we approach April the market looked promising to come off but this is expected to change again this week due to the unpredictable border shut down. Suppliers are thinking prices will go back up by the end of this week, but realistically it’ll be a day to day deal if that happens. Suppliers will be doing their best to load up their coolers to have product available. We are advising customers to avoid running lime ads for April due to unpredictable quantity and lack of commitments from the growers.

Good supplies to start the month of April on navels, with plenty of volume to promote on most sizes. Quality is looking great and markets are looking steady with plenty of deals to be made to help move fruit. On Specialty Citrus we still have plenty of Delite Mandarins that are peaking on 15’s & 40’s. Pummelos Sunkist grade is peaking on 12/14/18/23 size, quality looks great. Cara Caras & Blood are moving along, steady supplies are available. Golden Nugget Mandarins Ojai Pixie Tangerines are coming along nicely, quality is looking a lot better and the taste is excellent. Please reach out for pricing.

The last shipment of Honduran cucumber landed in South Florida this weekend, the quality is still good. Florida cucumbers are in steady volume, cool weather early this week has slowed production slightly. Demand has gotten much stronger and super selects are very tight, selects are selling much better and the market is higher. With the import cucumber out of the way expect the market to continue to rise through the week. Quality has been very good on Florida product, the wind has caused some slight scarring but a cool growing season has produced very good color.

Alerts:
the last Honduran cucumbers landed this weekend.

Transitions:
Cucumbers are Transitioning From Honduras to Florida.

Good supplies of cucumbers continue to cross through Nogales, AZ this week from Sinaloa, MX, and Sonora, MX. Quality out of both growing district continues to be good. Good growing temperatures are expected to continue in both of the growing regions through the week. Currently, all sizes being packed in 1 1/9 bushel pack and carton cucumber from both districts. The cucumber market is currently steady but could increase due to better demand. The quality of both growing regions is good. Mexican cucumbers are also available in San Diego from the Baja growing district.

Supply of eggplant is light and demand is very light. Quality of eggplant in south Florida has been fair at best. Wind has created a lot of scaring and discoloration, most fields have been picked numerous times and fruit is starting to look tired. There are some new fields starting but production on those fields is very light, more volume will start the third week of April in the central part of the state. Expect the market to continue the same levels throughout the week.

Eggplant continues to be harvested in the Mexican State of Sinaloa. There are good supplies of eggplant currently being harvested from this growing district. Both fancy and choice grade continue to be packed. The market on eggplant is expected to remain steady through the week. Quality from Sinaloa on fancy and choice pack continues to be mostly fair to good.

Import green grape supplies are becoming increasingly limited. No new arrivals of fruit are expected for the remainder of the season. All shippers are utilizing storage crop to fill demand. As volumes are low and being controlled closely, market prices continue to increase weekly. We saw another jump in price this week and expect it to climb moving forward. As we continue to move through the storage crop and look toward transition, we can expect quality to become a challenge. Currently, reports are good. However, with age, comes issues. We can expect fair quality, limited supplies and higher prices for the remainder of April. New harvest is expected to start in Coachella and Mexico by mid-May.

Alerts:
Supplies are limited and prices are higher. Quality will be a challenge moving forward.

Transitions:
New harvest is expected to start in Coachella and Mexico by mid May.

Import red grape supplies are fairly steady. Although we expect to see consistent arrivals of fruit throughout the month, we may see smaller sizes become more limited. Demand has been strong and quality has been good with occasional soft berries being reported. Market prices have remained level for the last couple weeks and we do not expect to see any major shifts soon. The biggest impact on price will be the limited volumes of smaller size fruit; forcing to size up and paying a higher price. We will transition into new Mexican and Domestic harvest mid-May.

Transitions:
Mexican and domestic harvest is expected to start mid May.

Green Onions supply continues to be plentiful with the recent nice weather in Mexico. The cooler weather in February is causing occasional leaf minor and mechanical damage. The green onion market will continue to stay steady going into next week.

The kale market continues to stay steady this week as more supplies have come on with the recent nice weather in Yuma. Quality is good with full bunches, and only an occasional yellow leaf being reported.

Yuma will continue to have production for a week or two longer. Huron will continue to harvest for 2-3 more weeks. Salinas will begin by the end of this week in light supplies. Better availability will follow in the following two-three weeks. There is a gap in pricing in the marketplace. New crop which is in Huron has weights at 39-43 pounds on liner lettuce. The quality continues to be hit and miss in Yuma. Defects being reported to include ribbing, mechanical, mildew, and puffiness. The quality in Huron has been reported as cleaner. Overall this market is stronger. Warm temperatures in the growing regions have caused insects to be more readily in arrivals.

Transitions:
Salinas will have light production by the end of this week, but volumes will increase in the following weeks to come.

As the Yuma season begins to wind down, the market has picked up on romaine as well as all leaf items. Production is occurring in Yuma, Huron, Santa Maria and Salinas. The quality of romaine has been fair, with discoloration, blister, pinking, and insects being reported upon arrivals. The quality overall is better in Huron and Salinas, but production is limited. Insects have been seen most from product in Huron and Yuma. Yuma will continue to have production for approximately one-two weeks more, at most. These plants are tired. Green and red leaf, as well as butter, has a quality that is also fair at best, much like romaine. Demand overall is fair.

Transitions:
Salinas has begun production on all leaf items, included with three other regions.

The Tender Leaf market has come off a bit on spring mix, arugula, baby spinach, and cello spinach. Quality is good with minimal yellowing and bruising of the tender leaves. Look for these items to be steady going into next week.

Cantaloupe market has gotten stronger with retailers running strong promotions. Light offerings on smaller fruit this week (12/15/18s). Plenty of large fruit on the market (6/9/J9s). Overall quality has been very good as we are getting into late season fruit. As of last week, shipments are down 27%. Brix levels are holing in the range of 12-14%. Guatemala and Costa Rica are expecting rain this weekend and that could delay the harvest in those growing regions.

Overall shipments are down 22% as of last week. Steady supply for the next few weeks. Peaking on larger sized fruit (4/5/6) on both east and west. Internal and external quality had improved. Brix/sugar levels are ranging from 10-12%. Guatemala and Costa Rica are expecting some rain this weekend and could affect the harvest.

Light supplies of watermelon continue to be available to load in Nogales, AZ this week. The Watermelon from Colima crop has finished. Watermelon crop from Sonora, MX has started in a very light way. Better supplies of seedless watermelon are expected to arrive in Nogales, AZ next week. The market on seedless watermelon is currently steady/high and is expected to remain steady/high until better supplies from Sonora, MX start to arrive.

Yellow onion markets in the Northwest are lower with good supplies and shippers looking to move out storage as Texas new crop will hit markets soon and California desert is a couple of weeks away. Red onion supplies are lighter with steady to higher markets and heavy demand. White onions are in few hands with high prices. Mexican onions are crossing this week with Texas domestic struggling to get started due to rain in the growing regions. Forecasts call for more rain mid-week and this coming weekend which will slow production. California desert is expected to start the week of April 22nd. Markets will be volatile over the next 2-3 weeks. Translucency will continue to be an issue with Northwest storage crop while the new crop coming in from Texas and soon to be California will exhibit thin, flaky skins.

Alerts:
Quality from Northwest will show translucency towards end of storage crop.

Washington:
D’Anjou, Red D’Anjou, and Bosc are available, but we may experience fluctuations in availability on foodservice sizes. The overall market is steady with ‘spot buy’ opportunities on certain sizes/grades.

As we head into April historically pineapples aren’t much of an issue on the supply side. But this April will be a different scenario compared to previous years. Easter this year fall on April 21st, usually, Easter at the end of April always seems to drum higher demand than when Easter falls earlier. With that being said the overall pineapple industry seems to be slightly tighter than estimated a month ago. Pineapples from all sources have not matured at their typical pace due to weather-related issues. Our suppliers will be doing their best to help fulfill normal business orders. We do anticipate higher demand for Easter pull but will make sure to communicate any shortages or subs.

Russet potato markets are holding steady with some slightly lower pricing on small size Burbanks. Consumer demand remains sluggish but expected to pick up for Easter. Larger size Norkotahs are available with sporadic supply. Washington, Colorado, and Wisconsin continue production with limited availability on larger sizes. Internal/external bruising, light hollow heart, external cuts, light peepers, and occasional soft rot can be seen in some lots. Advanced orders are recommended to ensure coverage of large size potatoes. Smaller sizes remain in abundance.

Alerts:
Russet 70 count and larger limited out of Idaho

Red potato markets are holding steady with yellow and white potatoes slightly higher due to lighter supplies. All three colors are available in California and Florida with limited supplies of white and yellow potatoes showing some increased markets on the East Coast and heavy to larger sizes. Washington, Idaho, and North Dakota have red and yellow available. Mt Vernon, WA has a few supplies left and look to finish for the season this week. New crop will begin late August. The best quality remains out of Florida with a fresh run colored potatoes.

Squash supplies are very good with supplies coming from Homestead, Immokalee and new production in Plant City. Quality is good in all growing regions, some scarring is showing up in yellow squash with all the wind that Florida gets this time of year. Expect supplies to be very good through the week, shippers are struggling to keep up with the supply coming in.

Transitions:
Squash is in transition from south Florida to the central part of the state.

Peak Seasons:
Squash is in peak season.

Good supplies on both Italian and Yellow S/N squash crossing through Nogales, AZ. Volume is decreasing from the Sinaloa growing region on both varieties as we enter the month of April. Harvesting on both Italian and Yellow S/N has started in the Mexican state of Sonora. New field’s in Sonora are currently producing a smaller crop. Market on soft squash has stabilized and is expected to remain steady through the week. Quality on both Italian and Yellow S/N squash from Sinaloa remain fair to good. Quality on squash being harvested In Sonora is mostly good. Mostly X-Fancy and Fancy sizes being harvested in Sonora on both varieties. Larger size squash on both varieties expected to arrive from the Sonoran crop next week with great growing temperature expected.

Import stone fruit season is quickly wrapping up. Chilean shippers have started to pull back on the volume being sent to the U.S. and are primarily focusing on only larger size tray pack fruit. Nectarines are expected to finish first, followed by peaches then red and black plums. Plums are expected to last through the end of the month. Market prices have been level and quality is still strong. Domestic production is expected to start later this month. Early harvest will start with nectarines and peaches and it will most likely be utility grade fruit. Harvest will increase as we move into May.

Alerts:
Supplies are becoming limited as we finish the import season.

Transitions:
Domestic harvest is expected to start late April.

Florida tomato growers have made it through seasonal transition helping markets return to normalcy as we enter the first week of April. Warm weather and high humidity have caused a small uptick in price for XL size rounds selling at a premium this week. Roma tomatoes are steady with little to no change in price from last week. With the warm weather trend in Florida, grape and cherry tomato fobs have continued to slide a few dollars as harvests increase. Tomatoes are widely available, quality has been reported as excellent, and markets are forecasted as steady, however as Mexico faces the threat of border closures, prices in the east have the potential to change quickly.

Alerts:
The United States Government has threatened a U.S. Southern border closure and has already begun redirecting US Customs agents to aid the reported humanitarian crisis occurring at the border. As a result, a reduction in processing lanes at U.S. Customs checkpoints in Nogales, Tucson, San Diego, El Paso, and Laredo have the potential to affect supply and markets may become volatile quickly.

Similar to the East, a warm weather trend has helped boost production in new crops harvesting in Sinaloa to start the Spring season. In turn, fruit is picked as the tomatoes begin to ripen on the vine before they can grow to XL and Jumbo sizes, resulting in XL Vine Ripe FOBs increasing slightly this week. Overall, the market is steady with little to no change to FOBs spanning roma, grape, and cherry tomatoes so far. Just a week after western markets returned to minimums, the threat of a U.S. border closure continues to materialize with rumors of extreme shortages occurring overnight. As customs agents are redirected to aid the humanitarian crisis reported at the border, crossings may slow or worse halt, but as long as inspection points remain open, tomatoes have been crossing in good supply.

Alerts:
The United States Government has threatened a U.S. Southern border closure and has already begun redirecting US Customs agents to aid the reported humanitarian crisis occurring at the border. As a result, a reduction in processing lanes at U.S. Customs checkpoints in Nogales, Tucson, San Diego, El Paso, and Laredo have the potential to affect supply and markets may become volatile quickly.