US: Low fresh vegetable prices expected to rise
According to a recently released report by the USDA Economic Research Service, prices for fresh vegetables are expected to rise over the next decade. This is on the heels of a year in which prices for fresh vegetables have been lower than in previous years.
The USDA report projects 1.6% average annual growth for the farm value of vegetables and melons over the next decade. This is driven mostly by fresh vegetables which make up about 65% of the value of all vegetables.
The report also credits slowly-improving consumer demand as a reason for the rising value of fresh vegetables over the next ten years.
Prices for fresh vegetables this year have been generally lower than previous years. Prices were high in the first part of the year, but came down starting in July. Part of the reason for lower prices has been improved supplies of vegetables leading up to winter. Assuming no freeze this year, the report anticipates prices much lower than those of previous freeze-affected years.
Publication date: 12/19/2011
Author: Carlos Nunez / Sander Bruins Slot
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