A supply deficit has taken hold of the California organic carrot market, report growers in the region. “I’ve been buying and selling carrots for 20 years,” says Robert Lichtenberg, an industry veteran, “and this is the worst shortage of organic carrots that the market has seen [in that time].” Lichtenberg, Director of Purchasing with Earl’s Organic Produce, says that California organics in general have been facing supply shortages this year, but adds that the organic carrot situation is particularly acute. “I’d say right now I’m getting 15% of what I need, and I think that’s true of any organic carrot buyer in the country.”
Lichtenberg says that the shortage began in December, and has continued through January. “It’s been that way for a month.” As a result, prices are up 20% to 25%. According to Lichtenberg, FOB prices are the highest his company has on record since switching to computerized records in 1998.
Holiday demand & weather possibly to blame
Lichtenberg, whose San Francisco-based company is currently sourcing carrots from the Coachella valley and Madrera, is unable to pinpoint the reason – or reasons – for the shortage. He speculates, however, that holiday demand and weather have contributed to the problem.
“I’m assuming there were some really heavy pulls for Christmas, some really heavy pulls for Thanksgiving,” says Lichtenberg. “And then there was some cold weather that hit.” He adds that early signs of a shortage might have made problems worse, as growers may have started pulling crops ahead of schedule to keep up with demand. Lichtenberg also notes that the organic juicing industry has seen major growth in the past few years, which has heavily increased demand on organic carrots, putting pressure on the market.
Despite the shortage, which has impacted bagged carrots worst of all, Lichtenberg says that a few categories of organic carrots have somehow remained fairly stable. “You know, bunch carrots, even though the market has been tight, that’s the carrot that seems to be in plentiful supply – though sizing is small,” Lichtenberg says. He adds that organic baby carrot supplies have also remained steady.
For more information:
Robert Lichtenberg
Earl’s Organic Produce
Tel: +1 (415) 824-7419