The Source - September 11, 2019

Eastern Region

Warm weather has returned along with isolated showers as harvest continues on Gala, Honeycrisp, Early Macs, Johnathan, Courtlands, a few Golden Supreme and Golden Delicious apples. Red Delicious is expected next week with Empires toward the end of the month. Quality is very good, but some shippers—in certain regions—are dealing with hail damage.

Western Region:

Washington
Gala and Honeycrisp apples are going strong and prices are softening a bit. Galas are peaking on 100ct, 113ct, and then 88ct. Fuji and Golden Delicious continue to severely gap this week, but new crop is expected to be available next week (week of 9/16)—finally. With the cold Spring (late-season snow) experienced in March, coupled with the mild temperature summer days (Highs in the 70’s), many Northwest shippers are battling slow-growing fruit and small sizes. Meaning, the ‘internals’ (starch, brix of the apple) are not reaching desired levels/sizes for harvesting. Many continue to stretch their inventories of stored fruit and are anxiously awaiting the start of new crop - Fuji, Golden Delicious, Red Delicious, Granny Smith, Pink Lady, to name a few.

Until we see more new crop offerings, flexibility on subbing sizes/grades/varieties remains important—especially on smaller, foodservice sizes (113ct, 125ct, and 138ct). Know that some orders may require an extra pickup location due to some shippers not having the full line-up of varieties.

California
Galas are done for the season. Granny Smith apples are now available with Fuji’s expected next week.

Alerts:
Fuji and Golden Delicious continue to gap and are not available this week. Many shippers have confirmed availability for the week of September 16.

The volume from Southern Baja, Mexico continues to increase this week, and this same trend should go through the month of September. Weather in both Peruvian regions (Ica/Trujillo) is warmer this week with spring right around the corner. Production has increased on all sizes., including the larger sizes. Markets on both coasts has come off a little, and we should see another decrease as volume increases from both Mexico, and Peru.

The forecast this week calls for rain in the growing region of Michoacan, Mexico. Inventory levels are solid and there is plenty of large fruit (48's and larger) in the pipeline. That being said, we are seeing field prices trending down. Small fruit (70's and 84's) remain tight due to the heavy rains. With so much rain in the area, it has slowed down the harvest and also sized up the fruit. California is done for the season. There is still a good supply of Peruvian fruit out east but will dry up soon.

Alerts:
Small fruit (70's and 84's) remain tight for the next few weeks.

Green Bell Pepper is in peak supply with various regions in good production. Michigan, Ohio, Pennsylvania and New Jersey are all shipping steady volume of bell peppers. The mountains of North Carolina and Tennessee have light volume this week. South Carolina will start next week and Georgia will follow by the first week in October. Weather has been cool in the mid west and moderate in the east making for good quality product in most cases. Rain showers across the mid-west will slow harvest this week and could have some short term quality issues. Eastern producing areas have had good weather with moderate temperatures and no effect from Hurricane Dorian.

Peak Seasons:
Green Bell pepper is in peak season.

Green Bell Pepper- Currently being Harvested in Hollister and Stockton California. Mostly #1 grade being packed from these districts with few choice. Light supplies of green bell pepper also being harvested in the Fresno growing area. Mostly choice grade being pack in Fresno. Quality on green bell pepper from Hollister and Stockton are good. Choice grade Green bell pepper from Fresno is fair to good. Both Retail/Choice grade green bell pepper supply meets demand. Light supplies of green pepper also being harvested in Baja California.
Red Bell Pepper- Good supplies of red bell pepper being harvested in the Hollister and Oxnard growing district. More retail grade currently being packed. Supplies from Oxnard and Hollister are expected to increase as we move forward in the month of September. Market on red bell pepper is decreasing slightly this week and could continue to decrease with more volume expected. Light supplies of Red bell pepper also available to load in Nogales, AZ and McAllen, TX.
Yellow Bell Pepper- Good supply of yellow bell pepper is being harvested in the California and is expected to continue through the week. Both retail and choice grade bell pepper are being pack. The Market on yellow bell peppers has decreased this week due to better supply. Mexican Yellow Hot house bell pepper are also crossing into San Diego and Nogales, AZ. Quality on hot house yellow bell pepper is good.

Blackberries will be in better supplies this week as production and transfers out of Mexico increase. Quality has been improving with less red cell defects being reported. Look for the market to be slightly lower with shippers looking to keep movement going.

The Pacific Northwest is all but done with only BC Canada still producing any significant numbers. We still have Michigan producing but that season is diminishing and will end within the next 2 weeks. Mexico is just beginning with Imports from Argentina and Peru available both East and West coasts as well. Look for the market to remain steady with higher undertones as we see more of the expensive imports grab a larger share of the market. Quality has been hit or miss on the Canadian product and the imported product is reported as being very nice.

Alerts:
The market expected to increase with the reduction of domestic fruit and the transition to reliance on Imported product

Peak Seasons:
Pacific North West is phasing out and there are only two more weeks of the Michigan season remaining.

Raspberries are in better supplies as we see production and transfer of Mexican fruit beginning to increase. These transfers are bolstering inventories already being produced in Central California. Quality is good overall when proper temperatures are maintained. Look for the market to remain steady with some higher undertones as transfer costs figure into the overall market scenario.

The strawberry market continues to tighten up as we are experiencing rapidly diminishing plant production in the Salinas and Watsonville areas. Lower yields up North are putting pressure on the Santa Maria area to load more berries. Production in Santa Maria is increasing but not enough to counter a market price increase with most shippers.
Quality out of the North is still mediocre with smaller berry sizing as the norm. Santa Maria new crop quality is fair to good with better sizing and generally more vibrant fruit. Look for the market to remain firm over the next week with limited availability on open market product in both areas.

Alerts:
Lower yields are being reported in both in both North and South growing areas due to reduced labor availability.

Peak Seasons:
Santa Maria will be moving into peak interim production over the next several weeks Oxnard production will begin in Mid to late October

Broccoli supplies continue to get tight as we are currently gapping in supplies and lower yields due to the recent heat. Quality is fair with slight purpling, some mechanical damage, hollow core and occasional yellow cast.

Alerts:
The recent heat in the Salinas Valley the last few weeks have damaged the broccoli fields in particular the broccoli florets. Broccoli fields are aggressively exhibiting moderate percentages of brown beads, yellowing, hollow core and pin rot that will drive defect percentages above the norm for the next couple of weeks. These quality issues from the heat have drastically reduced yields with all Salinas Valley Row Crop Suppliers. Some options for broccoli floret recovery are in Santa Maria and with Taylor Farms Mexico.

The brussels sprouts market continues to come off as fields are starting to come forward. There is still slight internal decay, causing lower yields. Look for the Brussels sprouts market to continue to adjust going into next week.

Carrots are steady out of California on cello and baby whole peeled packs. The jumbo market is snug and the market is still active out of California. Mexican jumbos are offering a cheaper product and lower freight alternative for Eastern destinations. This product is loading out of McAllen, Texas. Look for the market to remain firm moving into the weekend. Quality has been good out of both areas.

Alerts:
California jumbos are still in short supply

Cauliflower supplies are tightening a bit as fields continue to gap. The quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

This market remains steady, overall. School demand has been moderate at best. Many shippers have both small and large sizing and some are flexing on volume type orders. Demand looks to be moderate at best for the entire week. Santa Maria and Salinas continues to be the main growing regions for this commodity. The quality continues to be good. Minor defects reported include bowing, mechanical and slight insect damage. These defects are minimal, however. The weights are averaging fifty-one to fifty-five pounds per case.

Jalapenos- Good supplies of Jalapeno available to load in Los Angeles from Mexico and California. Jalapeno are being harvested in Baja California where the quality is good. Domestic jalapeno being harvested in Santa Maria, CA. Mostly medium to large size are available from Santa Maria. Market on jalapeno has maintained in teens for the week. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico. Pasilla is being harvested in Baja California. Quality on Pasilla from this region is mostly good. Size on the pepper is mostly medium to large. Pasilla peppers also being harvested in Santa Maria, California. Market on Pasilla is Lower/steady. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Good supply of Anaheim available to load from Baja California and Santa Maria. Quality from Baja and Santa Maria is mostly good. The anaheim continues to be in the mid-teens and is expected to stay there through the week. Anaheim from Mexico also available to load in McAllen, Texas.

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

Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. Quality of husk variety is good. Good supplies on husk tomatillos are expected to continue through the week. Both Husked and Peeled tomatillos have remained steady in the teens. Both varieties of tomatillos also available to load in McAllen, TX.

The cilantro market continues to slowly come off as fields are starting to come forward. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to continue to adjust going into next week.

Domestic supplies on 140’s and larger continue to be tight. We’ve seen a high demand for domestic supplies, import seems to be winding down. Suppliers are doing their best to cover orders from day to day. Current supplies are being harvested from District 2 (Southern California Region) and are winding down with suppliers maximizing fruit availability and it’s fresh utilization. We should be starting District 3 (California Desert/Arizona Region) by mid-September.

Supplies continue to get tighter each week and markets are rising quickly as well. Due to the drought condition in the growing regions, the industry is getting light packouts and minimal crossings. The outlook moving forward depends on the weather in Mexico, without any rain we won’t see improvement until the next 4-6 weeks. This week supplies expected to come into the U.S. on 230/250 size. Quality has been fair, we are seeing oil spotting and some stylar still. Please know that we are looking to find other options and continue to source limes from other growing regions. Current markets have risen weekly and are expected to move forward until supplies improve.

Demand for small Valencia’s continues to be very strong and the markets are rising weekly. We anticipate supplies to remain limited and we expect demand/supply to be a challenge until we get into California Navels which about 6-7 weeks away. Our suppliers are doing their best to keep up with the high demand but they are taking it day by day on availability on pack-outs from the fields. Flexibility on loading dates and the ability to sub into another size will help all of us fulfill orders during this time period. Please continue to prebook orders in advance to help strategize and prepare in case we run into inventory issues. As a relief option, we do have the choice of loading Import navels to help offset and complete orders in full. We’ve been hearing positive feedback on the quality.

Cucumber supplies are steady in a multitude of growing regions. Demand for supers is good, selects and carton 24's are weak. Buyers have more choices with the mid-west, northeast and now the mid-Atlantic and Southeast are starting light supplies. Michigan, Ohio and New York state are the big players this time of year but Virginia and North Carolina are shipping steady volume. Georgia started light volume this weekend, this is an early start for the Southeast and mid-Atlantic but it gives buyers more options and their volume will increase over the next 2 weeks. Cucumbers in the south are a little light in color but the quality is good, The northeast and Midwest have very good color and quality but cooler temperatures have slowed production.

Transitions:
cucumbers are stating to transition to the southeast.

The market on western cucumber has risen slightly this week. Moderate supplies are crossing into San Diego from Baja California this week. Supplies crossing through Nogales are also moderate. Quality from both districts is good. Cucumber crossing through San Diego is being harvested in Baja California. Cucumber crossing through Nogales is being harvested in Durango, Mexico. All sizes and pack styles are being packed from both districts. Cucumber quality crossing into Arizona and California are good. Light supplies of Mexican cucumbers continue to cross through McAllen.

Eggplant is in peak supply in Michigan, Ohio and New Jersey. North Carolina, South Carolina, and Georgia have all start light volume for the fall seasons. Overall the Southeast has had a dry summer and growers have been able to plant early and harvest is starting earlier than normal. Demand has been weak and more product in the south will not help the situation and most growers are only packing fancy product. Quality has been good in most regions and the northern states should continue harvesting through the month.

Transitions:
Eggplant is starting to transition back to the South.

Peak Seasons:
Eggplant is in peak supply

Moderate supplies of eggplant continue to be available to load in Los Angeles through the week. Eggplant continues to be harvested in Bakersfield and Fresno. New crop eggplant being harvested in Oxnard and Hollister. Good supplies of fancy eggplant being packed from the new crop. Quality on domestic eggplant is currently good on retail grade and good on choice grade. Light supplies of eggplant continue to cross through Nogales where quality is also good.

Green grape supplies remain steady this week. We have seen good volumes of new varieties over the last 2 week. Quality has been fair with occasional reports of light mildew and soft berries. Demand has been lighter and markets have firmed up a bit. As we look toward the future, there is some concern of lighter supplies. This year's weather has been very warm and advancing late-season varieties to come on early. Typically shippers will not consider storing grapes until late October to last through the transition. With the late-season varieties coming on early, we may see a small gap during transition, as storage fruit may be very light. We will monitor green grapes closely moving forward.

Alerts:
Late season varieties are coming on early. Supplies will get limited as we get closer to transition.

Transitions:
Import season is expected to start in November.

Red grape supplies continue to be steady. Good volumes of new variety red grapes are being harvested and quality is being reported as very strong. Sizes are heavier on sizes L-XL. Demand has picked up over the last 2 weeks and shippers are in good positions on inventory. Due to fresh inventories and steady demand, market prices have been steady and growers are not feeling the pressure to drive prices down for movement. However, there are still plenty of promotional opportunities and spot buys that become available. As we look forward, we expect red grapes to remain steady through October with good storage crop capabilities. We expect a smooth transition.

The green onion market has slightly picked up recently. The cooler weather recently is causing occasional leaf minor and is causing a slight gap. The market will continue to adjust going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is fair with full bunches and an occasional yellow leaf being reported due to the recent heatwave.

This market has gained strength with some suppliers while others have remained firm. Greater demand and lighter availability are expected by the end of next week with multiple shippers. For this week, supplies look to be ample to fill all orders. The weather continues to be good in the growing regions both north and south. Santa Maria and Salinas will continue to be the main growing regions for this commodity. Growers continue to report overall good quality. Misshapen heads, insects and mechanical has been reported but only in a light way. Weights are ranging from 40-45 pounds.

Romaine is steady with most shippers. Growers are experiencing good yields due to excellent weather conditions in the growing regions both north and south. The quality continues to be reported above average. Tip burn, mechanical and insect damage is seen upon arrivals, but minimally. Weights are reported between thirty-three to thirty-seven pounds. Romaine hearts are expected to have good availability for the entire week. Red and green leaf as well as butter, are all items expected to have ample supplies for the entire week. The quality overall is good. The weights on green and red leaf range from twenty-two to twenty-four pounds per case.

Tender Leaf supplies continue to be plentiful as the weather in the Salinas Valley continues to spur growth and produce better yields. Curly parsley, spinach, and arugula have reacted to the recent warm weather and supplies look to be in good shape going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

Westside-
Demand has outpaced the harvest and supplies are extremely limited on the cantaloupe front. This will be the trend for the next few weeks due to a strong retail pull last week, followed by cooler temps in the San Joaquin Valley. Current temps are in the 80’s, well below optimal growing temps for melons. These cooler temps slow down production drastically. As suppliers struggle to cover contracted business, have flex and expect sub-options.
Desert-
Melons out of the desert are starting up sooner than anticipated. We are about two weeks out from the first harvest on the desert crop. Maricopa will start on cantaloupes and honeydews will follow. With California production running through October and the desert coming on early, there will be some overlap.

Alerts:
Supplies are extremely limited this week. Demand has outpaced the harvest.

The honeydew market is heavy on larger fruit. We are seeing very light offerings on small fruit (8/9ct). With an active market on cantaloupes, expect the honeydew market to follow. Demand is fairly light this week with a steady market. Quality has been excellent internally and externally with great brix.

Watermelon continues to be harvested in Visalia and Modesto California. The seedless watermelon market remains steady with steady demand. Watermelon quality from both districts in California is good. Cooler weather in the California growing districts is expected through the week.

Harvests continue in the Idaho/Oregon and Washington regions with new crop onions. Yellow, red, and white onions are in full production with excellent quality. Super colossal and colossal yellow onions are limited with all other sizes and colors in abundance. Markets remain low with excellent quality. New Mexico has finished for the season directing all demand up to the Northwest. Barring any unforeseen weather events. We expect to see good supply and quality for weeks to come.

Washington:
Northwest Bartlett and Starkrimson pears are in full swing with limited supplies on new crop Green D’Anjou and Bosc. Special varieties—such as Seckel, Forelle, Comice—are expected over the next two weeks. Quality is excellent.

California:
This CA season on pears is nearing the end with many shippers expected to wrap up harvest late next week. Many shippers have transitioned to late district (‘Mountain Pears’ – Mendocino Lake and El Dorado counties) fruit, with ‘river district’ (old fruit) pears done for the season. With Washington increasing their pear volume, many CA shippers are aggressively pricing down their inventory to clean up. ASIAN PEARS are available; 10ct-24ct (1 and 2-layer) available to load in the San Joaquin Valley. Smaller sizes (66ct-96ct, 3-layer) are sporadic in availability, so please inquire.

Pineapple supplies have improved out of both coasts on all sizes. Markets remain steady and demand continues to remain strong as schools have started back up. Quality has improved and we’re hearing positive feedback.

Idaho potato markets continue to decline on 60 count and smaller. 40 count and 50 count remain limited. #2 grade potatoes are limited as Norkotah new crop will produce an abundance of #1 grade product. Suppliers will be subbing into carton counts for #2's to fulfill orders. Typically a 50 count to 70 count will be used for 10oz #2's and 90 count to 100 count will be used for 6oz #2's. Rain in the potato growing regions over the past couple of days have slowed production but the weather will improve throughout the week and resume harvests. Some minor quality issues in the new crop Norkotahs may be seen in the way of skinning, white mold, wet potatoes (wet boxes), soft potatoes and immaturity (see photo). Washington, Colorado, and Wisconsin continue to produce Norkotahs with limited supplies of larger size potatoes as well.

Alerts:
Idaho markets are declining. Larger size 40 count and 50 count as well as #2 grade remains limited.

Color potato markets continue to decline as supplies improve. Premium and #2 grade potatoes remain limited in most areas. California supplies out of Stockton are winding down and will look to finish for the season by September 20. Mt Vernon, Washington is now running all three colors with excellent quality and color. Idaho is also in full production with reds and yellows along with Wisconsin and Minnesota. North Dakota will look to begin production in the coming weeks adding to the overall supply of color potatoes. Expect markets to continue to decline as we move through the month of September.

Transitions:
Stockton, CA winding down. North Dakota to begin in the coming weeks.

Squash is in good supply in many regions across the east. Michigan, Ohio, Pennsylvania, New Jersey, and New York are all shipping good supplies and with temperatures rising this week for the first time in 2 weeks across the mid-west. The mid-Atlantic and southeast are starting early for their fall deals and supplies are picking up quickly in Virginia, the Carolina's and Georgia. Look for volume to increase as the week goes on with warm weather and no ill effects from Hurricane Dorian. Quality is good for the most part in all regions.

Transitions:
Squash is starting to transition to the south.

Peak Seasons:
Squash is in peak season.

Good supplies of Italian and Yellow S/N squash being are harvested at all three California growing district. Steady volume is expected to continue through the week from all districts. The market on both Italian and yellow squash is steady and is expected to remain steady through the week. Quality from all three California growing districts is good on both varieties. Light supplies of both varieties continue to cross through McAllen, TX this week.

Stone fruit supplies continue to lighten as we get closer to the end of the domestic season. Nectarines are very limited at this point with only larger tray pack sizes available. We expect nectarines to phase out quickly over the next 2 weeks. Peaches have more size ranges available but are starting to wind down. We expect peaches to last through the end of September and sizes will become more restricted as we end the month. Plums are expected to last through October. Both red and black plums have late-season varieties scheduled to harvest in early October. Quality overall is strong and market prices are steady. Smaller sized fruit should be ordered in advance.

Alerts:
Domestic stone fruit supplies are getting lighter as we approach the end of the season. Sizes are limited.

Post Dorian field reports are that tomatoes have been spared for the most part. North Carolina has received the most rain but not received any substantial damage from winds. Tennessee, North Carolina, and Michigan continue with light volume and size are beginning to trend downward. Demand exceeds supply for eastern romas while very light harvests in Tennessee and North Carolina remain second to the volume available coming from Mexico and California. Grape tomatoes are steady while production remains scattered. Bulk Fobs remain near the $30 mark against light supply and high demand. VA is working through rains from Dorian and is forecasted to have more production begin by mid to late September to help supply.

California rounds are steady and have not shown many waivers in the last several weeks. Overall, production is consistent as farms work though lower yields due to excessive temperatures. Similarly, romas are also showing challenges from the heat waves in California at a time when Mexico imports are only moderate. The newly agreed suspension agreement draft has eased concerns of a shortage of tomatoes coming from Mexico helping to steady supply as growers in Mexico continue to work through the transition and recent rains. Grape and cherry tomatoes have improved slightly from the past couple of weeks but are mostly steady now while supply is still limited. It will still be a couple of weeks before harvests are expected to improve, and the hope is for better markets when Mexico begins harvesting in greater volume mid to late September.