Monday, February 27, 2012

Back into the trenches

Another weekend in the books, but the market for fresh veg seems to be starting the week just as it ended.  This downer market is dragging on in a seemingly endless fashion, much like the European debt crisis.  Like the Germans, who refuse to allow inflation to raise the price of their exports, which would make the Greeks and other economies more competitive, retailers in the US refuse to cut the markups they are making on vegtables to move the surplus for the growers.  It is like trying to pour 5 gallons of water into a 1 gallon bottle.  I bought a small head of cauliflower at my local supermarket last week for $2.99.  That is still too high, but at least I bought.  Yesterday, the store raised the price to $3.49!  The FOB was a dollar higher, or about $.05/head for 16s.  I'm sure the price will back off this week if that was a general reaction by the chains.  The "partnership" between growers and sellers of merchandise that trade groups in our industry love to rhapsodize about is a crock.  The bean counters won the struggle for supremacy in the 90s and the result will be an increasingly volatile market.  It will shoot for the stars when there is the hint of a shortage and crash and burn the minute there is an extra load of product available.  Welcome to the world of contracts and weather events. 

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