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Commodities see instability in pricing and availability

Much like the weather has seen some unusual patterns across North America–from severe fog in California to historic snowfalls in Ontario to freezes in Florida–fluctuations are being reflected in the availability of produce as well.

© Freestone ProduceSoufan is frustrated with the volatility in pricing and produce availability.

"We're seeing such an up and down situation," says Mike Soufan of Freestone Produce Inc., a retailer and wholesaler based in Calgary, Alberta. "For the past few months, we've been facing inconsistent supply, inconsistent prices and inconsistent availability. It's crazy. Every week, some item is available and then it disappears the following week, or it goes from $10/case one week to $40/case the next week. I've been in business for 16 years and I've never seen it like this."

As he notes, explanations as to why price and availability on produce items fluctuate so greatly are few and far between, with most blaming it on factors such as the weather.

Travel time and price increases
Freestone Produce imports product from regions such as Nogales, Arizona and parts of California and Soufan also says that the pricing swings are happening in the travel time it takes to get product from those regions to Calgary. "I order something at $20/case for example and in those three to four days to get here, it's gone down to $10/case. The price and supply situation may get better for a week and then it jumps again," Soufan says, adding that recently, he was offered a truckload of product on Friday for $9.50/case and by Monday, that price had jumped to $16/case.

© Freestone ProduceFreestone Produce will move into this new 60,000 square foot space in May.

Soufan hopes the supply and pricing situation will even itself out sooner than later and is looking for much-needed stability as the company works towards a significant change. Last August, it purchased the now defunct Toys "R" Us building nearby in Calgary and following renovations, it will move into that facility come May. The new space will double its footprint, taking it from approximately 30,000 square feet to 60,000 square feet.

For more information:
Mike Soufan
Freestone Produce Inc.
Tel: +1 403-248-4466
[email protected]
www.freestoneproduce.com/

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