Over the last several years, production of peaches in California has gone down in response to declining demand. That lagging demand has also made for low prices this season.“It's an interesting year in that volume for stonefruit is down,” said Ray England of DJ Forry Company. “But markets have been, overall, very soft.” While England notes that it's difficult to explain why there are both low prices and low volumes, competition from other commodities, a water shortage and a lack of aggressive marketing early in the season could be factors.
“It's very confounding because supplies are low and demand isn't there,” said England. “One would think that with volume reduced there would be better prices, but I think that when prices at the start of the season were at the level of those from last year, which were high, retailers might not have been aggressive with their programs. So demand was slow.” On July 2, prices for a carton of yellow peaches sizes 40 to 42 were between $18.95 and $22.95. For white flesh peaches, prices for a carton of the same-sized fruit were between $19.95 and $22.95. But England believes the market could firm up in the coming months.
“There's an opportunity to get aggressive at the retail level when prices slump,” said England. “That will create more demand and prices could increase, so I think the market will pick up past July and into August.”
For more information:
Ray England
DJ Forry Company
+1 559 638 0124