As football fans cheered for their favorite college and NFL teams over the weekend, produce growers across the Southeast faced a different kind of blitz: back-to-back hits from Hurricanes Helene and Milton.
While Milton caused havoc in Florida, delaying plantings and devastating citrus and tomato crops, Helene’s earlier rampage through Florida, Georgia, the Carolinas, Virginia, and Tennessee hurt the fall production of more than a few commodities. Growers in the storms’ paths now face a long recovery before returning to full production.
Meanwhile, a heatwave plaguing California is finally subsiding, but lettuce and leafy greens are expected to experience quality issues for several more weeks as they recover from heat-related stress. These combined events create uncertainty and price volatility in the market, with supply shortages expected to drive prices higher in the short term.
ProduceIQ Index: $1.21/pound, down -3.2 percentover prior week
Week #41, ending October 11th
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.
Milton endangers the fragile orange supply. Like when Hurricane Ian struck the Southwest portion of the state in 2022, Florida citrus yields are expected to fall, and prices rise due to Hurricane Milton’s damage. The Category 3 storm ravaged key orange-producing counties such as Polk, Desoto, and St. Lucie.
Orange prices are down -2 percent over the previous week. However, this news provides little hope for suppliers as average prices are at a ten-year high and expected to remain tight. In addition to the East Coast’s production woes, buyers on the West Coast are wrestling with a sizeable gap in production. California Valencia’s yields are declining due to heat-related challenges, and Navels won’t be able to pick up production for at least two more weeks. Expect tight supply and elevated prices through October.
Orange prices, 56ct from the East Coast, are $33 and remain active
Hurricane Helene and Hurricane Milton are the one-two punch tomato markets didn’t need. Round-type prices are up +23 percent, and plum-type markets are up +33 percent over the previous week.
Helene devastated tomato crops grown in North Carolina and Tennessee. According to early reports from growers, Hurricane Milton may have had similar effects on tomato production in the Southwest and Central parts of the state. Milton hit the Ruskin, FL tomato-growing region hard, and some yield loss and quality issues (e.g., rain check, scarring) are expected. Further, production in Quincy, FL, is two weeks behind schedule due to earlier storm-related delays in planting.
Growers in California, Mexico, Alabama, and Virginia are working to fill the gap in production. Prices will likely increase considerably over the next three to four weeks.
Tomato prices, 5×6 in the East, are at $20 and are expected to rise
Averaging $53, blueberry prices are making buyers do a double take. Crossings from Central Mexico are light, and imports from Peru aren’t enough for current demand. As a result, prices are at a ten-year high by a significant margin. Peruvian production and production in Central Mexico will increase considerably over the next three weeks.
Blueberry prices are at record highs… again
Please visit our website to discover how our online tools can save time and expand your reach.
ProduceIQ is an online toolset designed to improve the produce trading process for buyers and suppliers. We save you time, expand your opportunities, and provide valuable information to increase your profits.
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.
