Market Update – Product Shortages – August 16

Product shortages continue; plan your menus accordingly.

As we get deeper into the summer potato supplies are fading. The big harvest begins in August and runs through the fall.  Yukon Harvests are starting but there isn’t any significant volume and what is coming to market is very small (A sized).  Larger “chef sized” Yukon potatoes are in short supply. Red Potatoes are also in short supply.  The southeast regional crops had a poor output and are now done for the season. Texas is done to and while we wait for the Midwest and Canadian crops to start, we are getting high-quality product from CA. The downside, however, they are commanding a premium price given the low supplies and high demand on the market. We will have product but prices will be very high for the next few weeks. View the Market Alert on Sweet Potatoes on our website.

Over the next few weeks, the industry will see a significant decline in production/arrivals on California and Peruvian fruit. With these key regions tapering off for the season, Mexico will have little to no competition in the market place.   Prices are increasing almost daily. This will be the trend as we anticipate a volatile market for the remainder of the month and into September.  There are concerns as to how Mexico will react being the main source for fruit.   Current Mexican crop “Flora Loca” will run through September. Come October we will be fully into new crop “Aventajada” fruit. We can expect to see a good amount of Lenticel spotting on the surface of the skin. Lenticel spots are less apparent as the fruit ripens. This is caused by rain but does not affect the internal quality.  The growing region of Michoacan, Mexico is seeing a significant amount of rain week in and week out.   Chilean arrivals are expected to hit the US mid to late September.  Until Chile can provide some relief and get fruit in the pipeline, Mexico will continue to dominate the market.

We are heading into extreme market conditions on asparagus. Markets have continued to spike since early last week and is expected to continue.   Mexican production is dropping off and is pushing the west coast to rely on Peruvian production leading to higher prices and less overall volume, basically, demand is exceeding supply.  Large, XL and Jumbo will remain very tight.  We expect this trend to continue over the next several weeks until new fields open up in Peru.

Supplies are forecasted to be tight through mid-September. This is typical for this time of year due to a condition called  Naturally Differentiated Flowering (NDF). NDF occurs when weather patterns of low light or cool temperatures trigger ethylene product of the pineapple plant which leads to a disrupted supply of fruit resulting in lower yields per acre. Typically the summer demand during July –   September tends to be soft and the entire industry is forecasted to experience similar supply issues until they improve.

Pricing has started to increase and will probably continue to do so for the rest of the year. Production has gone down due to heat, and it’s also time of year where farmers are starting to swap out old chickens to new in order to ramp up for the holidays, a combination of lower production and higher demand of school season has driven prices higher
Please reach out to your sales rep if you have any questions. Thank you.