The ProduceIQ Index continues its upward climb to a record $1.35/lb for week #37. This price is 11 percent higher than at any previous year for this week. Mangos, limes, tomatoes, and dry veg items push prices higher.
Despite inflation slowing in the broader economy, fresh produce inflation persists. The fresh produce industry faces many high-cost challenges, such as food safety, labor, and reduced farmland. Farmers continue to seek ways to mitigate market risk by contracting crops, though the price on contracts has yet to be able to keep up with the cost of production. At ProduceIQ, we continue to promote smarter contracts that consider the high variability of both the market and production costs.
Produce markets are anticipating the move south, returning to Georgia. Production continues in Canada and New York but is winding down. Suppliers are waiting for the cold snap that ends the music. Weather has been unusually warm, and continued picking can continue into late October if Mother Nature cooperates.
Blue Book has teamed with ProduceIQ BB #:368175 to bring the ProduceIQ Index to its readers. The index provides a produce industry price benchmark using 40 top commodities to provide data for decision making.
ProduceIQ Index: $1.35/pound, up +3.0 percent over prior week
Week #37, ending September 13th
Cabbage continues to be in short supply. Early rains in Quebec caused picking to go late, and the Ontario area doesn’t have enough to cover the shortfall. Prices on Red have fallen from $34 to $24 over seven weeks, yet prices remain in record territory. Green has held firm from $16-18 for two months.
Green Pepper is $14-16, with some higher out west. Though elevated from historical norms, growers cannot generate profits at these levels. Red Pepper continues to be elevated. Some deals have been found with an early flush from Mexico greenhouses; however, production is generally behind, and prices reflect the lack of supply.
Cucumbers, squash, and eggplant all share a similar story. Production is scattered up North, making the logistics of mixer loads difficult. Georgia is slow to come on board due to generally overcast clouds with some rain. If the sun breaks through, Georgia should flush their fall crops soon. It’ll probably be the end of next week before Georgia has volume.
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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.
