Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Tuesday, January 16, 2007

Six of one

This cold snap grabbing headlines in California is also turbocharging prices for a variety of fresh produce items from Mexico. Cucumbers, squash and tomatoes were higher today. One watermelon shipper in Nogales told me today the seedless market was very secure at elevated price levels, and cool weather in Mexico (note the Sinaloa weather link on the right) would slow harvest over the next few days.

However, he brought up a counterpoint to the cold snap equals higher prices logic. The same cold weather that can constrict supply can also put its foot on the throat of demand. When consumers - particularly in the Northeast - stay home and out of the winter cold, they are also not buying produce.

Just as buyers watch the temps and radar for the growing fields, marketers scope out the next blast of winter barreling down on New York and Philly.

Six of one and half dozen of the other.

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