Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, January 17, 2007

Rubber band demand

Just how determined are consumers to buy oranges? One quoted in this story says she won't be deterred, even if retails climb to $3.99 per pound.
From the story:

"Wow. Four dollars a pound," Vicari said. "Well, I would still buy them for her. I'm just not going to cut back on fresh fruits and vegetables."


I was visiting with Don Harris of Wild Oats today and he was saying that previous freezes may be instructive, but no two are exactly the same. Retail and consumer behavior may swing from panic buying to looking at other options.

But if I were a California orange grower, I would love the fact that my consumer wants to keep my product on the shopping list at $3.99 per pound.


The USDA reported a $32 per carton f.o.b. on first grade 72s today, the same as yesterday but up from $11-14 per carton on Jan. 12. Prices at the same time a year ago -- $9-12 per carton.

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Strawberry Fields and a pause in the market

The U.S. Department of Agriculture ERS just released a report on strawberries Here is a chart I put together based on monthly shipment figures from the report.

If New York City wholesale prices are any indication, buyers appear to be taking a break from bidding up citrus in post-freeze trading. Shippers first grade navels, size 72s, were quoted at $28-30 per carton this morning, just slightly off from the market of $28-32 yesterday.


Argentina's fresh citrus can't come to the U.S. now because of citrus canker, but one APHIS spokesman said that the agency will be working on a protocol for Argentina after it gets all of its ducks in a row on domestic quarantine issues related to Florida citrus.

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UglyRipe exemption

The USDA issued a final rule today the provides a marketing order exemption for UglyRipe tomatoes. The exemption states that UglyRipe tomatoes don't have to meet size requirements of Florida's marketing order as long as the fruit meets requirements of the USDA's Identity Preservation Program. The specific language:

For UglyRipeTM tomatoes. UglyRipeTM tomatoes must meet all the requirements of this section: Provided, That UglyRipeTM tomatoes shall be graded and at least meet the requirements specified for U.S. No. 2 under the U.S. Standards for Grades of Fresh Tomatoes, except they are exempt from the requirements that they be reasonably well formed and not more than slightly rough, and Provided, Further that the UglyRipeTM tomatoes meet the requirements of the Identity Preservation program, Fresh Products Branch, Fruit and Vegetable Programs, AMS, USDA.


The long and contentious battle over the UglyRipe - ongoing since at least 2000 - is apparently over. The USDA's action seems to strike a reasonable compromise between marketing order integrity and opportunity for innovation. Look for more coverage and reaction in The Packer.


Also in the FR today, a change in Florida tomato marketing order assessments and a USDA denial of trade adjustment assistance to Florida avocado growers.

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