While drought conditions in California are bad for the entire state, especially the fresh produce industry, some of the state's growers will likely feel the effects of a water shortage more acutely than others. Depending on growing location and the source of their water, some California growers will have to pay more for the water they need to grow their crops.
“Growers are running into cash flow issues,” said Ken Melban, director of issues management for the California Avocado Commission. “They have to purchase water to irrigate, but there's not any natural water coming.” A good portion of the industry's growers from Ventura to San Diego have to buy water to supplement rainfall, and that's become costly. Higher costs could lead to less production, and that could mean higher prices for the produce that is grown.
“Input costs for growers are escalating right now due to the water situation, but they are price-takers, in that the market determines prices, so they can't turn around and charge more for their produce,” explained Melban. “But we will see situations where, because of supply and demand, a reduction in supply will lead to higher prices.” Which growers will suffer reductions could, in turn, depend on where they're located.
“For the most part, well water is the main source of water for strawberry growers in the Wattsonville and Santa Maria areas,” said Carolyn O'Donnell, communications director for the California Strawberry Commission. “Those growers that are on wells seem to be doing okay right now, but it will be a concern if dry weather continues for another year.” But growers in Ventura County, who are more dependent on pipe water, will have to adjust their growing based on what the entities who manage that water supply do. While water management is not a new issue, and while the state's growers have been planning for dry conditions for several years now, some of the state's growers will definitely feel the lack of water.
“We just have to wait and see what happens,” said O'Donnell. “Especially for those on pipe water.”