Tuesday, March 27, 2012
Another dull day
Most markets continue in the doldrums as the California and Mexican winter deals wind down. The trifecta of high transportation cost, overplanting and good growing weather has been economic poison to growers across the country. Most produce brokers have been 20-40% below their year ago volumes. Definitely the winter of everyone's discontent. One of the national produce press outlets interviewed vendors at the New England Produce Center in Boston, and they were already looking to the local deal as economic salvatiion this summer. Citing high fuel prices and truck shortages, they hope to source as much local produce as possible. Perhaps they have already forgotten about the havoc hurricane Irene visited on the Northeast last summer. Of course, not being growers, they don't realize the damage the local fruit crops will probably suffer from late frosts, now that buds are ready to open 3-4 weeks earlier than normal. If weather anomalies of this magnitude continue into the summer, veg crops will be affected also with predictable results. The markets in the East were once exclusively local outlets for tens of thousands of growers, my grandfather and uncle included. When California began shipping lettuce from Salinas in the 40s, it ushered in the era of western produce and the decline of the local deal. Many would like to think produce growers will magically appear to satisfy the demand for locally grown. I think there will be many small boutique operations that will take advantage of their location, but I doubt they will drive the western deal out. More likely it will be a long slow decline and with better shipping technology cheaper offshore deals and Canadian production will replace the California deal on a year round basis. It will be ironic, but not unforseen.
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