Supplies of papayas from Mexico are tight right now. “This is an easy growing period for them so there are usually a lot more right now because it’s hotter,” says Lance Peterson of Super Starr International.
However, the tightness is a little unexpected…but not surprising. “I think producers have had a hard time lately and have cut back on plantings and that kind of thing. It’s the economics of it,” says Peterson. “All the growing costs--fertilizer, labor, etc.--have gone up and while prices have gone up only a little bit. I don’t think everyone realized how much inflation was hurting on the bottom end so growers began adjusting.”
The U.S. dollar
Peterson says supplies began tightening up just over a month ago. Though, he also points to another factor impacting supplies. “The other thing that’s hurting things right now is the weak dollar. The dollar compared to the peso has gone down more or less 15 percent,” says Peterson.
That said, demand is normal for this time of year and is slower right now. However given the tight supplies, that lower demand isn’t being felt as acutely as it normally would. “I think demand will stay this way probably getting into September. Usually, school starting helps people get onto routines, etc. and the demand starts to creep up a little,” says Peterson.
As for pricing, it’s slightly above last year’s pricing on papayas.
For more information:
Lance Peterson
Super Starr International
Tel: +1 (956) 510-8126
lance.peterson@superstarrinternational.com
www.superstarrinternational.com