There is currently an oversupply of celery in the United States which is causing the market to be very low. Warmer temperatures and otherwise ideal growing conditions has meant that production is up. This is combined with an increase in overall celery acreage from growers trying to capitalize on what has been a good market in recent years.
"Celery is at a low ebb right now and we are definitely seeing an oversupply for the demand," said Doug Lowthorp of Deardorff Family Farms in California. "Above average temperatures has meant no planting gaps and high production. The warm conditions have pushed everything up by about two weeks. The leaf market was able to recover because gaps arose during transitions. However, with celery, there wasn't a gap when it transitioned from the desert to Oxnard."
"This is in combination with the extra acreage that has been added," he continued. "The last two years have seen a very good celery market. Last year, rain caused gaps in planting, but this has not occurred this year."
Market set to remain low
While the market is low now, there doesn't appear to be any hope for growers that the situation will turn around soon. Excellent growing conditions continue in each of the regions, and subsequent regions are not presenting any issues.
"Currently the market is close to $8.00 on the West Coast, which is not enough to cover costs," Lowthorp noted. "Therefore, many growers are losing money and product is being left out in the fields. Although Florida is done now, we don't predict any true gaps to appear in the near future. Santa Maria has now started, and there is no reason why Salinas will be late, as they have not experienced any problems in the lead up. We still have a month and a half to go in Oxnard and we are just waiting for this deal to be finished now without expectation of any improvements in the market."
Organic celery doing well
Unlike its conventional counterpart, the organic celery market is in much better shape. There is more demand which is keeping product moving. As a result, organic growers are enjoying comparatively better prices than the conventional side.
"The tempo is a little bit stronger in the organic market," Lowthorp observed. "Some of the organic markets have increased in the last two weeks. We should see that continue until at least the end of May. After that, organic will be transitioning to Santa Maria."
For more information:
Doug Lowthorp
Deardorff Family Farms
Tel: +1 (805) 487-7801