Freight costs are placing downward pressure on broccoli prices as growers and shippers continue to be at the mercy of trucking companies. A shortage of available trucks has meant that incredibly high rates are being quoted to move produce around the country. Broccoli suppliers say that this is causing the market to be below what it should be.
"The broccoli market should be higher than it is at the moment," said Bob Cordova, of Western Pacific Produce in California. "Freight rates are almost double of what the industry typically sees due to the shortage of trucks. The issue started worsening a week before Christmas, stemming mainly from the E-Log requirements. As a result, the market has softened accordingly. Prices have been around $12, when they should really be sitting at $15 or $16, based on current demand. However, with the current freight rates factored in, that price would be too high to ensure good movement."
More broccoli from California expected in coming weeks
Suppliers have noted that supply has been alternating in different regions due to variable weather conditions. After seeing cold weather, California has experienced warmer conditions in recent days, which is conducive to broccoli growth. Conversely, Mexico has had cooler conditions in their broccoli growing regions recently, leading to a moderate slowdown in production there.
"There are several broccoli growing regions in production at the moment," Cordova said. "In the US, these include California, Arizona, as well as the southeast of the country. The Mexico regions of Puebla and Guanajuato are also in production now. However, they have seen cooler evenings in the past few weeks which has slowed supplies down. The California and Arizona crop has enjoyed warmer weather in the past week which has been more friendly for growing broccoli. We therefore expect to see more volume coming through from those areas shortly."
The quality of the broccoli coming through is favorable, with this time of year seeing its peak of broccoli production in Mexico. "November to April is the peak season for the Mexico growing regions and that is where we typically see the most volume and highest quality," Cordova continued. "We continue to see very green, very good quality coming through in our Broccoli King label."
For more information:
Bob Cordova
Western Pacific Produce
Tel: +1 (805) 568-1550