If your office email threads were anything like ours last week, following President Trump’s tariff decisions felt like a chaotic game of telephone. For those at SEPC’s Southern Exposure, the updates spread in real-time, passed from buyers to suppliers across crowded, lei-laden trade show floors.
After weeks of fluctuating tariff threats on Canadian and Mexican exports, the president announced a delay until April 2nd.
While this provides temporary relief, the uncertainty remains. Hopefully, a long-term agreement will emerge before the industry experiences another cortisol surge.
This week, the ProduceIQ Index continues its downward trend, falling -2.7 percent from the previous week. This decline persists despite mounting pest pressure in Western growing regions, unpredictable tariff policies, and persistently high Hass avocado prices.
ProduceIQ Index: $1.09/pound, – down 2.7 percent over prior week
Week #10, ending March 7th
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.
Peppers: Shortages Drive Prices Up
Red Pepper, 11-lb., prices increased $3 from Monday to Friday, bouncing from $7 to $10 due to supply concerns. Pepper prices remain affordable, though expect supply challenges as Florida growers transition to a new crop and California and Georgia ramp up production. Despite this, a strong supply from Mexico could temper price increases as domestic production expands.
Squash: The Biggest Mover of the Week
Squash saw the most significant price shift, rising +39 percent due to tightening yellow squash supplies. However, last week’s prices hit a ten-year low, making the increase less impactful for buyers. In the coming weeks, Mexico’s squash production will transition to Sonora before tapering off, while U.S. domestic production ramps up.
Avocados: Lent Fuels Record-High Prices
With Lent in full swing, demand for avocados from Mexico is soaring, pushing prices to record highs. While California’s harvest is slowly increasing, only a boost in Mexican supply or a demand reduction will stabilize prices.
Melons: A Sweet Comeback
After weeks of limited honeydew and cantaloupe availability, supply is finally improving. Prices remain slightly elevated, but buyers can expect a continued decline in the coming weeks as quality remains strong.
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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.
