Fresh-market vegetable crops in California, Florida, and Mexico were hit with a variety of inclement weather this summer and fall which reduced supplies and contributed to higher shipping-point prices. Shipping-point prices for fresh vegetables are expected to remain above seasonal norms until new or replanted fields are harvested in late December or early January.
Vegetable and pulse impacts—weather woes in 2022
In Florida, growers of key winter vegetables such as tomatoes, bell peppers and squash were forced to replant fields following Hurricanes Ian and Nicole. In California, impacts from the long-term drought, above normal temperatures, an unusual late summer rainstorm, and heavy pest pressure sliced into marketable fall-season supplies of leafy and cruciferous vegetables. In Mexico (a key source for winter fresh vegetables including tomatoes, peppers, squash, and green beans), hurricanes impacted growers in Western and North Central production regions.
The 2022 crop marks the first-time annual potato production declined 5 consecutive years in a row. The gradual decline in production over the last few growing seasons occurred despite increased planted acres in 2019 and 2021. According to USDA’s November Crop Production report, 2022 U.S. potato production is down 3 percent from last year due in part to decreased planted acres (down 2 percent) and adverse growing conditions. During the September 2021–August 2022 marketing year, the season-average price (includes fresh and processing potatoes) reached a nominal record high of $10.20 per hundredweight, marking the first time the season price exceeded $10 per hundredweight.
Contract production of California processing tomatoes declined 2 percent to 10.5 million short tons in 2022. With tomato paste inventories very low and tomato product prices high, processors will be looking for a larger crop in 2023. However, the long-term drought, high input prices, and favorable prices for alternative crops stand in the way of achieving larger output.
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Source: ers.usda.gov