The asparagus supply is on the tighter side. "The northern Mexican region of Sonora is winding down. It's still kind of limping along, but it is definitely on the decline," says Patrick Cortes, director of business development for Prime Time International.
Also on imports, Peruvian product is coming by air and by ocean and is destined for the East Coast. "That will help complement the supply that we need for the East Coast," says Cortes. "What will also help is when the Canadian crop comes on. They've had a late start because of weather but they're getting closer and once they're online, that will help stabilize the situation. Demand has exceeded supply for the better part of three weeks, if not longer."
Domestically, there is also Washington state asparagus, though product from that region is considered more of a niche market for the area west of the Rocky Mountains. However some makes its way to the Midwest.
California also has some production though it largely stays within the state.
Asparagus movement steady
How about demand? "Easter was so late compared to a year ago when Easter was substantially earlier," he says. "Easter is the biggest asparagus holiday on the calendar. However, I would say demand remains steady."
Summer demand though can be a bit more of a rollercoaster. "Sometimes there's really good supply and not a lot of demand but there are also instances where it's vice versa and then pricing gets really strong," says Cortes.
Right now, pricing is strong in the mid to high $30s for 11 lbs, with organic asparagus priced approximately 20 percent higher than that. "Pricing has had a '3' in front of it for probably two weeks, maybe even a bit longer," says Cortes.
Now that Easter has come and gone, it's expected that demand for asparagus will slow down with retailers not dedicating as much shelf space to the vegetable given there isn't enough supply. That may soften market conditions a little. Until increased production comes on from Central Mexico–not until the end of May; Baja–also in May; and Peru, the market will be relatively strong.
That said, the potential 10 percent tariff on product from Peru, which is currently on pause, also needs to be factored into the future. "We've dealt with it in our company and have found a way to manage it in terms of cost. So I don't anticipate it being much of an issue," says Cortes.
For more information:
Patrick Cortes
Prime Time International
Tel: +1 (760) 399-4166
[email protected]
https://primetimeproduce.com/