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Oversupply in US market
Strong sugar snap supply keeps market down
Guatemala is seeing high production of sugar snap peas. The sugar snaps, both in Guatemala and Mexico, are enjoying favorable growing conditions. This has created an oversupply situation in the US market, causing sustained lower prices.
"Sugar snap volume is currently very high, stemming from high production," said Dan Wahl, of Growers Are Us based in Florida. "As a result, the market has been pretty low lately. In fact, it has never really taken off and we continue to see low prices of $8.00 - $9.00. There is a lot of volume coming out of Guatemala, as well as Mexico, and between these two, it has caused the low market."
Wahl noted that prices were higher last year. "Compared with last year, the market is much lower," he said. "The low prices have persisted for several weeks now and the demand has not really been there lately."
No hint of reduced production
While there were reports that sugar snap growers in Guatemala had all but given up on sending their produce to the market because they were making a loss, suppliers have not seen any results of this coming through. Instead, supply remains abundant and is not expected to reduce until the rainy season.
"We source sugar snaps from Guatemala in quite a few different regions in the country," Wahl said. "They keep saying they are going to slow production, but there is still a lot of volume coming through. Even in Europe, there seems to be a lot of volume on the market there. There are many smaller growers in the country, who typically sell their produce to coops, who in turn, sell it on to exporters. There appears to be very little in the way of controlling supply, despite the obvious excess supply of sugar snaps."
"Guatemala will continue to be the major supplier of sugar snaps to the US market until at least June," Wahl continued. "At that time, the rainy season will kick in and volume will drop right down. After that, Peru will take over."
For more information:
Growers Are Us
Tel: +1 (305) 606-2675
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