Weaker green onion market could strengthen

10/11/2010 11:19:49 AM
Andy Nelson

Green onion importers reported good quality and said prices, which fell in October, could rise as the holidays near.

Oxnard, Calif.-based Boskovich Farms Inc., expected to wrap up its Ojos Negros, Mexico, green onion shipments in mid-October, said Don Hobson, the company's vice president of sales.

In early October, Boskovich was ramping up production out of San Luis, Sonora,Mexico, Hobson said. Production there should be in full swing by about Oct. 18, he said. The company also will be shipping light volumes from Oxnard this fall.

Moorpark, Calif.-based Muranaka Farm Inc. began seeing greater volumes out of its Mexicali, Mexico, deal in mid-September, said John Killeen, vice president of sales and marketing.

Because of excessive heat, many green onions shipped in September had shanks that were longer than usual, but by early October, that product was through the pipeline and quality was back to normal, Killeen said.

Hobson expected markets to strengthen in October as local green onion deals in Eastern Canada and the Pacific Northwest wind down.

On Oct. 6, the U.S. Department of Agriculture reported prices of $7-10 for cartons of medium bunched 48s from Mexico, up from $6-8.45 last year at the same time.

October prices had fallen from their September levels, but could strengthen as the fall and winter holidays neared, said Killeen and Steve Church, vice president of operations for Salinas-based Church Bros.

Hobson expected a smooth transition from the Ojos Negro to the San Luis deal, which will likely run through mid-June.

Early reports out of San Luis showed good stands and overall excellent quality, Hobson said.

“Everything looks really good,” he said. “We should start off with a bang.”

The industry continues its years-long trend toward more iceless packs, Killeen and Church said.

“Our business 20 years ago was all iced, now it’s probably 15-20%,” Church said.



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Feedback Form
Leads to Insight