Freshspective
Tuesday, July 16, 2024 | Issue 149
Keep up with the most recent market trends in our Freshspective updates. Discover what's influencing conventional produce, organic options, temperature controlled capacity, and floral so you can plan ahead and avoid disruption.
Conventional Vegetables
The market is adjusting. The West Coast has some availability with product from Baja, California, from Consititucion, south of the Peninsula. Due to weather issues, quality is not great so prices are low so inventory can rotate faster. Peruvian grass is adjusting a little too in price but there is a difference between both markets. We have good and steady supply available on both coasts, Peruvian supply is steady, so this is the time to reach customers and get ahead of the holidays to set programs.
Bell Peppers
[email protected]Pepper is short, and we are still 2-3 weeks out from any improvement in supplies. New Jersey is barely getting started, and Eastern North Carolina is done. We do expect New Jersey to get into better volume , but it will all depend on the extreme heat and how it impacts the plants. Western North Carolina is seeing some pallet volume, and the outlook looks promising. Michigan will harvest their first fields this weekend, so the goal is to get better volume in the upcoming weeks.
Broccoli
[email protected]Broccoli is in very limited supplies all over. Mexico is having some quality issues and the West Coast has had quite a bit of heat which is impacting production. Maine should be starting with product in the next week.
Cabbage
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Supply on cabbage is stable with good quality. There is plenty of availability in multiple growing areas: Michigan, Wisconsin, Ohio.
Celery supplies are plentiful this week, available out of Salinas and Oxnard. Overall quality is good with no major issues reported. The weather forecast calls for milder temperatures this week. Please reach out to your Robinson Fresh representative for more detail.
Cucumbers
[email protected]From the looks of it, local is starting to set across the landscape. Cukes are available from the Midwest to the Northeast. We do hear Canada is producing lower yields as their season is just getting started.
Greens
[email protected]Supply on greens is stable with good quality. There is plenty of availability in multiple growing areas: Michigan, Wisconsin, Ohio, and Tennessee.
Leaf Lettuce
[email protected]Iceberg and leaf lettuce supplies are in better shape this week with promotable volume available. Overall quality is good with some reports of heat damage in the warmer growing regions. The primary shipping points are Santa Maria and Salinas. The weather forecast calls for cooler temperatures this week.
Potatoes
[email protected]We are at the tail end of Idaho russet potatoes. While there are plenty of potatoes left to get us through to the harvest in August, we are seeing quality start to decline, especially on larger sizes. The larger sizes were already limited as the Burbank variety tends to run small, and the quality issues are adding increased pressure on the market. Reds and yellows continue with decent supplies and good quality on the Eastern Seaboard.
Squash
[email protected]The extreme heat is starting to show its presence as plants have shut down and yields are down in the Northeast. Michigan continues to produce steady volume, but the rains are becoming a common trend. Weather is prevalent across the nation so we need to proceed with caution.
Sweet Corn
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Conventional Fruits
Apples
We continue to have good supplies of apples for this time of year out of Washington and on imports from Chile as well. Most varieties and packs have good availability, and quality is holding up very nicely this season. Supplies out of storage in Washington are still above average for this time of year on many varieties. Imports from Chile and Argentina are still in full swing and adding some supply to this market which should continue for the next month. There are a few varieties and packs that have tightened a little and are resulting in some higher pricing. The Gala tray apples size 88 count and larger are the tightest sizes to purchase as there are very few large Galas available in the marketplace. Also, the Honeycrisp are starting to show some tightening on some sizes and grades. Overall, we still have good supplies of apples to sell and expect attractive pricing on most varieties through the summer months. Apples will remain a good category to promote for the next month with a predictable supply of high-quality fruit.
Avocados
Grower origins with fruit in the U.S. market this week into next week: Mexico, California, Peru, Colombia, and Dominican Republic.
Total pounds imported last week: 60,008,683.
• Old Crop will continue to dominate inbounds out of Mexico and New Crop will begin to make its appearance in the U.S. at month end.
• More than enough volume available for all retail and food service needs.
• Percentage of #2 fruit will be the lowest of the entire season and slowly disappear over the course of the next 10 days (low single-digit percentage of total crop) out of Mexico.
• California and Peru begin to wrap up their 2024 season through the end of the month and into August.
Bush Berries
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Blueberries - PNW & Canada are starting to produce more. Michigan is rebounding from poor weather. Demand on blueberries continues to be in high demand. The heat Out East has finished the New Jersey crop and most farms are combing through for frozen and process production. The Pacific Northwest and Canada saw the heat push the volume on a bit early, covering the Northeast shorts, but will end their season earlier than anticipated. Oregon’s peak on Duke’s pick is over, and the Draper pick is going to start end of this week/early next week. Michigan continues to pick but has had disruptions early on. Canada is picking in full production, but isn’t peaking yet, which is keeping the market stable. Peru continues to push back estimates, flattening the production curve and pushing back any peaks. We will know by next week if there is going to be a September gap and how Michigan fruit will hold up in California storage.
Blackberries - Short due to weather. We are in a gap on blackberries. We are seeing heat damage Out West in California and Oregon, preventing the fruit from traveling Back East. Quality has taken a downturn in North Carolina, and we are leaning heavy on New Jersey to cover East Coast business. We expect to be short for roughly another two weeks of shipping as we start opening Southern California and Central Mexico. Organics have become nonexistent as the weather has just ruined up to 70% of this year’s East Coast crop. Last year, organics ran a similar course, not coming back into play until week 42.
Raspberries - More Supply out of CA weekly as MX decreases. Raspberry volumes has been tight with the California heat wave disrupting picks and damaging product. Mexico continues to cut acreage to prune and get ready for the fall crop. California quality and fill rates will continue to struggle for the next two weeks.
Cantaloupe
Good cantaloupe supplies this week with the sizing trending towards 9 counts, followed by jumbo 9 counts and 12 counts. High brix and good flavor are being seen out of the fields. Acreage is up year over year so expect continued good supplies for the coming weeks out of the Central Valley, California.
Citrus
Oranges:
Valencia market has jumped due to limited availability with a reduction in crop size. Excessive heat in California has limited harvesting windows. Subsequently, there is a surcharge on labor wages. Markets are very active with elevated pricing. Crops were originally projected to have larger yields this season; but, be careful, as supply is going to get tighter as we move through August.
Import navels are available on the East Coast from South Africa and Chile. Cara Caras are now also available with limited volume. Overall sizing profile on navels and Caras are heavier on small and mid-sized fruit, with 56 count and larger being very limited. Minneolas are on the water, so we can expect arrivals to the East Coast in the next coming weeks.
Lemons in California are tight and heavier to choice; however, seeing some relief on pricing due to more availability on imports. Argentina lemons have been coming into the East Coast with better quality but there are reports of some decay. Argentina has been heavy to 115/140 counts and larger. Chilean fruit is also available with a similar sizing profile.
Grapefruit:
California is producing the Star Ruby variety with sizes peaking on larger fruit 32/36/27 counts. Quality is showing nice blush with a nice internal color and flavor.
South African imports have started in a small way with excellent quality and eating characteristics. More volume is anticipated to arrive in the next couple weeks.
Mandarins:
Imports are consistent out of South Africa, Chile, Peru, and Uruguay. Larger sizing is still snug and will continue that way through July. Overall, this import season is projected to be short compared to years past due to weather in the growing regions. No major spike of volume is expected, which should keep markets elevated.
Grapes
The market will hold its price most of this week due to the continued heatwave in the Central Valley. With temps still over 100 degrees this week, all picking will be required to stop at noon. With inventory tight and most of the industry now switched to California, we will see a pause in the market.
Honeydew
Adequate honeydew supplies with best availability on jumbo 5 count and 5 count sizing followed by 6 count in both the Central Valley, California, and greater Phoenix, Arizona, regions. Good quality and flavor with expected strong supplies in the coming weeks.
Limes
Region:
Veracruz, Mexico
Crop Update:
Currently, the crop is peaking on 200/175/230/250s. The weather forecast is showing rain likely for several days, with a high percentage of humidity and temperatures ranging from a minimum of 68 degrees to a maximum of up to 92 degrees.
Market Intel:
The demand for limes has been steady.
According to the USDA, the crossings through Texas from last week were at 710.
Sizing Profile:
Peak sizes are 200/230/250s.
Size distribution: 110-2%, 150-9%, 175-26%, 200-33%, 230-15%, and 250-15%.
Quality:
Quality issues being reported include oil spots, blanching, scarring, and skin breakdown.
Looking Ahead:
Downward volume as we end July and the beginning of August. Consistent quality but little availability of fruit which will put pressure on a high market through August.
Mangos
As we enter week 29. we continue to see quality decrease from Nayarit and Southern Sinaloa. Los Mochis fruit will not be ready for another 10-12 more days. We will see more Kents from Nayarit until Los Mochis fruit is ready for harvest. Honey mangos are available from Los Mochis, and we should see these for another week or two before this crop is finished for the season. Peak sizing on Honeys remains on 22s, followed by 20s and 8/9s, followed by 7s on red mangos. There is a lot of rain in the forecast this week in Nayarit which could slow harvesting.
Papaya
SUPPLY IS MEETING DEMAND FOR PAPAYA IN THE U.S. MARKET!
Supply conditions remain good with surplus product mostly on large count available. Prices are stable in the U.S. market with crop yields improving with better availability from multiple shippers. Weather condition in Mexico is now reported as stable, helping fruit gain size. Inventories are showing some availability to offer. Growers continue to secure good quality product to keep up with U.S. demand. Pricing is stable with supply meeting demand for the U.S. market.
Majority of sizes are between 6-9s with good surplus on LARGE calibers.
Quality is reported as good with fruit showing clean skin and little scarring; a bit more speckling seen on latest arrivals.
Color 25%- 50%/12-14 brix at point of shipping. The ideal temperature for shipping Imperial papaya is 48 degrees to avoid quality issues upon receiving.
Crop outlook is for good supply for the next two weeks.
Market intel says there is enough supply to service demand.
Pears
We are currently shipping both green and red Anjou pears out of the Northwest this week. The market on Anjou pears has tightened significantly over the last month and prices have jumped up as a result. The movement on Anjous has been exceptionally strong this year and we will see higher prices until we finish in a couple of weeks. All sizes and grades of Anjou are hard to procure at this point as we near the end. The Bosc pear crop is now finished out of Washington, but there are a few imports arriving from Chile and Argentina available on the East Coast. The next new crop on pears will be the Bartletts out of California. This crop is projected to be better than average in volume and quality and projected to start shipping this year around July 18th. Overall, the pear category is projected to be on the shorter side for the upcoming season as this will be a down year on all varieties of pears.
Pineapple
• Growing region: MEXICO - Volume remains extremely limited with most farms in their summer gap. Weather conditions at the pineapple fields are not ideal with most fruit not gaining size or meeting export conditions. Most of Mexico’s pine production will be sold internally as they have a good market and more tolerance on quality. Transportation out of Mexico is stable with good availability of trucks to service pineapple shippers. Costa Rica is seeing similar conditions as last week with some improvement in volume, but mostly on small calibers not exported to the U.S. There’s still a shortage of fruit on large counts at all growing regions in Costa Rica. Growers continue to prorate their production among their weekly commitments. Market is expected to stay high at least until the end of July.
• Mexican fruit quality is marginal with some fruit meeting U.S. specifications. Prices are high on all counts out of Mexico and Costa Rica. COSTA RICA - Volume remains low AT PACKING with the expectation to improve in the next few weeks. NO surplus fruit available to pack at this time. The U.S. market remains high on all counts with supply NOT meeting demand. Costa Rica is under mixed sunny to rainy conditions with some fair weather expected this week.
• Movement: The USDA is showing a slightly higher number of loads crossing with 960 containers crossing FROM Costa Rica for the entire continental USA. It continues to be a low number for this time in the year, well below last year’s crossings at this same time.
• Forecast: Little to NO surplus fruit available at shipping points being offered by large grower/shippers at this time. The market is high with good demand this week.
Strawberries
California strawberries are past their peak production and harvest volumes will continue to decrease weekly until the fall crop in Santa Maria is in production. California fruit is fair quality with occasional bruising, full color, and overripe. Sizing is medium to small. Santa Maria, California, for the week of 7/15, is forecast to be mostly sunny, with highs in the 70s and lows in the 50s. The week of 7/22, Santa Maria is forecast to be mostly sunny with highs in the 70s, increasing to the 80s on Saturday, and back down to the 70s on Sunday, and lows in the 50s. Salinas/Watsonville, for the week of 7/15, is forecast for low clouds, then sun, then partly sunny for the weekend. Highs are expected in the 70s, decreasing to the 60s for the weekend, and lows in the 50s. The week of 7/22 is forecast to be mostly sunny, with highs in the 60s, increasing to the low 70s for the weekend, and lows in the 50s.
Watermelon
Supplies are very good on watermelons. East is going with good supplies in North Carolina, Florida, Georgia, Delaware, Indiana, Missouri, and Texas. Size is mainly 36-count seedless and 45-count seedless. Out West, California and Arizona are going with good supplies. Oregon and Washington should get started in a week. It is a great time to keep running advertisements in July and August.
Organic Fruits & Vegetables
Organic Apples
[email protected]We had a large crop of organic apples this year for most varieties. There are decent supplies in storage of organic Gala, organic Granny, organic Fuji, and organic Pinks, as well as other less-popular varieties. We are now seeing some of the smaller organic growers finish for the season. This is resulting in an uptick in prices in the last couple of weeks on some of the varieties. Overall, we have good supplies and great quality on organics this year, which gives us a great opportunity to grow this category this season.
Organic Dry Vegetables
[email protected]We have seen the supply of dry vegetables dry up out of Nogales. We are starting to see some supply available out of San Diego, but not a lot of varieties available yet. There is some availability out of Texas, but very limited. We should start to see more availability out of California soon.
Organic Melons
[email protected]Organic mins are going out of Patterson, California, and supplies are good. We will have supplies into October.
Organic Onions
[email protected]Organic onions continue to be very active, and the markets remain strong. Our red onions coming out of Hollister, California, are looking very nice; we have jumbos, mediums, and 16/3-pound bags. We will start to see some yellow onions become available the first week of August in a light way; then, we will see better volume by the end of August.
Organic Pears
[email protected]We still have very limited supplies of organic Anjou out of the Northwest this week and the quality is still good. Organic Bartletts are finished out of Washington, but we are now seeing limited supplies of imported organic Bartletts arriving from Argentina. The quality is reported to be good this season on imports.
Organic Potatoes
[email protected]Organic potatoes continue to very tight in supply and finding a high quality potato right now is difficult. The hot weather in the Central Valley has created issues with the California crop. The Colorado storage crop is still going but, again, quality is the bigger issue. We should start to see new crop potatoes coming out of Washington by the first week of August and this should be the start to better quality. New crop Colorado will not be available until September.
Organic Squash
[email protected]We continue to see the hard squash that is available come out of Mexico. We won’t start to see hard squash come out of California until mid- to late-August. Our program out of Hollister will start off with a few Kabocha and Delicata the first week of August. The butternut and spaghetti will not start until the end of August.
Organic Sweet Potatoes
[email protected]California sweet potatoes are still going strong, though the market has continued to firm up as supply tightens some. We are starting to see certain sizes, i.e., mediums/jumbos, needing a few days to cover orders as they are not readily available day to day.
Transportation
Produce season continues as growing season is in full swing. While non-produce impacted origins remain soft, California and the Southeast have seen the largest tightening in capacity. We have likely seen the peak of this season at the Mexico-U.S. border. To ensure coverage and the best rates and service, work with your account team to provide visibility to supply chain needs so they can build the proper lead time and flexibility into the loads. For more details on geographies and locations, please reference the map within our last month’s report.
East Coast – The Northeast continues to remain soft, even with shorter-than-average lead time. Southeast produce season continues to creep north. Southern and Central Florida are largely past peak season, but outbound Northern Florida and through Georgia will continue to see constraints.
Central U.S. – Capacity markets through the Mid-North should remain soft into mid-July. Short lead time and same-day coverage may provide some difficulties within the central states where there is a lot of protein production, as peak grilling season is upon us.
West Coast – Pacific Northwest cherry season has begun, but that has been mostly manageable given the softness leading up to it. Berries and various vegetables are now shipping heavily out of Central and Northern California. Southern California and Arizona are still experiencing high volumes that will likely taper down in July.
Work with your C.H. Robinson team to stay informed on regionalized opportunities and how to best schedule freight to capitalize on the best price and service.
GLOBAL UPDATES
PANAMA CANAL - The Panama Canal is facing challenges due to both delays and drought, impacting operations. The drought has caused water levels in the canal to drop, making it difficult for vessels to pass through efficiently. Recently, shippers have noticed a reduction in disruptions caused by low water levels along the Panama Canal. Carriers are resuming transits through the waterway for certain east-west services, and they are also exploring alternative options to transport cargo.
PORT OF SAVANNAH - In October, the Port of Savannah experienced robust activity, handling 449,000 TEUs, marking its fourth busiest month on record and registering a notable 5% increase compared to the same month in 2019, which was unaffected by the Pandemic. This growth suggests that the Port of Savannah is not only handling increased overall cargo but is also strategically investing in infrastructure to accommodate the specific needs of the fresh produce sector. With a focus on facilitating trade and improving efficiency, the Port of Savannah aims to provide a more conducive environment for handling perishable goods. The expansion aligns with broader efforts to meet growing demands and underscores the port’s commitment to maintaining its status as a key gateway for imports, offering world-class services to its customers. This development is likely to have positive implications for the agricultural and perishable goods industries, fostering smoother and more reliable transportation of produce through the port. As the Port of Savannah continues to invest in its infrastructure and capacity, stakeholders in the produce import sector can anticipate improved handling processes, reduced bottlenecks, and an overall more streamlined experience. The expansion not only reflects the port’s adaptability to growing trade volumes, but also signals a commitment to meeting the specialized needs of industries such as fresh produce, contributing to the port’s significance as a vital trade hub in the region.
OCEAN CARRIER CONSOLIDATION - Fresh produce growers and shippers attempting to move cargo globally via ocean vessels are dealing with scenarios where ocean carriers genuinely dictate some markets. They dictate and determine the marketability and viability of export markets for many fresh produce exporters. Shippers are being forced to commit earlier to ocean lines to reserve space for upcoming seasons, and spot market space on vessels is nearly impossible to secure.
RED SEA SHIPPING CRISIS – Hundreds of ships are currently diverting around Africa to avoid attacks in the Red Sea, causing delays to global trade and inflicting months of disruption and imminent price rises on supplies. The crisis has led to doubling insurance costs and soaring demands for security services, which has raised prices and affected availability of fresh produce from Africa and Australia.
DEMURRAGE/DETENTION CHARGES - Shippers negotiating with ocean carriers or freight forwarders on perishable cargo contracts should request as much free time at destination as possible to reduce the risk of detention/demurrage charges when inspections/fumigations or drayage capacity constraints delay cargo delivery at destination. Unavoidable and unprecedented demurrage and detention charges due to delays in turning cargo at destination continue in 2024.
PORT CONGESTION - Congestion is causing equipment shortages at major ports, particularly affecting reefer containers. Cold chain shippers now need to book further in advance to ensure cargo space. While reefer cargo and perishable goods are more sensitive to schedule delays, the impact has been limited so far. However, there is a risk that the situation may worsen as demand continues to grow. Tight capacity leaves little room for future disruptions, so volatility should be anticipated.
For more global freight insights please visit Global Freight Markets Insights | C.H. Robinson (https://www.chrobinson.com/en-us/resources/insights-and-advisories/global-forwarding-insights/)
Floral
No changes. Supply adequate. Slowest months of the year.