A polar vortex this week puts much of the U.S. in the walk-in freezer for the tenth time this winter. Hazardous conditions, including ice, extreme cold, snowfall, and intense storms, will complicate logistics for fresh produce suppliers this week.
Despite poor weather in much of the U.S., strong production eases prices for various commodities in the dry and wet veg categories. However, rain and flooding on the West and East Coasts are driving up the prices of high-value commodities such as berries and avocados.
ProduceIQ Index: $1.32/pound, – down 2.2 percent over prior week
Week #7, ending February 14th
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.
Blueberry prices rise +12 percent over the previous week and are near a ten-year high. The end of the Peruvian export season and unusually warm weather for growing regions in Chile are causing average prices to accelerate. Fortunately for buyers, warmer-than-typical temperatures in Mexico for week #7 allow growers to cover the gap in supply. However, heat-related challenges may cause prices to rise earlier than usual, leading to market volatility.
Strawberry prices are down -2 percent over the previous week, a relatively modest drop for a period typically marked by steeper price decreases. Over the weekend, additional rainfall in California doused the hopes of deal-seeking buyers anticipating a flood of post-holiday supply.
Cold and wet weather-related quality issues are expected to persist in the strawberry market for the next few weeks. Nonetheless, suppliers remain optimistic that supply will continue improving, easing quality concerns and creating promotional opportunities in March.
Meanwhile, the staple egg and avocado toast has become a luxury breakfast item. Avocado supplies are tightening, and prices are soaring due to heavy rainfall in California and limited availability from Mexican growers, setting the stage for record-high avocado prices. As if skyrocketing egg prices weren’t enough, consumers now face added strain. However, smaller-sized avocados remain more readily available, offering limited promotional opportunities despite overall pricing struggles.
The herb market continues to face challenges as rain and cold weather in California dampen supplies of key herbs such as cilantro and parsley. Parsley prices remain stuck at $20 for the third consecutive week, while cilantro prices are inching toward a ten-year high. Poor growing conditions have led to shorter shelf life and rain-related quality issues, which are expected to impact herb markets for several more weeks.
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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.
