Following weather events in both Mexico and Florida–the latter which saw a series of freezes earlier this year–the supply of chile peppers is very challenged right now. "We are in the worst supply crisis with chile peppers that I have seen in my 30 years of experience," says Randy Bailey, owner and president of Bailey Farms. "The winter crops in Florida and Mexico were decimated."
This is unlike the supply situation at this time last year, a time when accessing supply was easy. "We are getting supply now mostly from Mexico but they are in few hands and the prices are at record levels. We are all waiting for new spring crops to start in May," he says.
© Bailey FarmsSinaloa disease damage affecting the crop.
Waiting for spring crops
It's expected that these supply challenges will remain until those spring Florida crops come on.
While the demand for chile peppers is still good, aside from accessing supply, another significant challenge right now is emerging at retail. "There is a disturbing trend of retailers creating systems to deduct abusive fines for numerous things such as bad pallets, damaged cases, late appointments and many others," says Bailey, noting that for example, there are some retailers fining $500 for a broken pallet or $450 for a crushed case. "These defy common sense and are obviously created as new income streams. From the supplier side it all seems like a betrayal of goodwill in doing business."
For more information:
Randy Bailey
Bailey Farms
[email protected]
https://baileyfarmsinc.com/
