A transition in California seasons has resulted in lighter strawberry supplies this week. The summer crop is finishing up and growers are busy planting their spring crop in readiness for the next rotation.
"The summer strawberry season across California is winding down as well as starting up right now in other regions," said Steve Johnston, of GW Palmer. "We're seeing the end of the summer planted crop in Santa Maria as well as Oxnard and getting ready for the spring crop to begin in places such as Oxnard, McAllen and Mexico as well as in Florida. Therefore California supply is expected to be light on for 6-7 weeks and will likely stay that way. Currently, there are only about 450,000 picked per day as the majority of growers are concentrating on planting for March, as opposed to harvesting."
Moderate demand will likely pick up
Demand for strawberries has also been soft this week. Expectations are for that to change as the new season strawberries come into the market and the Holiday season boosts retail sales.
"As supplies have been light, so too demand has been fair this week," continued Johnston. "Currently the market is sitting between $14 and $16 in California, which is fairly normal for this time of year. We will continue to see softer demand until the start of the McAllen season and maybe into next week when the Thanksgiving Holiday drives stronger demand."
Johnston also noted that future supply will be a focus of attention as high labor costs put pressure on growers. Observations are that a number of farmers are turning to other crops that are seen as more cost-effective. "The Salinas-Watsonville deal is looking interesting. Some people are saying that some landowners have started to dedicate more of their land to vegetables and away from strawberries due to the high costs of labor," he said. "This would result in less acreage available for strawberry production compared to now. Although we won't know for sure, if such a scenario played out, it might have a positive effect on markets in the future."
For more information:
Steve Johnston
GW Palmer
Tel: 831-753-6578