Today's Pricing

WATERMELON — F.O.B.S AS OF MAY 13

MEXICO CROSSINGS THROUGH NOGALES, ARIZ. — Crossings (705-766-766, seedless 683-751-759, seeded 22-15-7) — Movement expected about the same. Trading seeded slow, others moderate. Prices seedless 35-60 counts lower, others generally unchanged. Red-flesh seedless-type per pound 24-inch bins approximately 35-60 counts mostly 20 cents, 75-80s 14-16 cents; red-flesh seeded-type approximately 35-55 counts 12-14 cents. Flat cartons red-flesh seedless miniature 6-9s $7-9. Quality variable. Many present shipments from prior bookings and/or previous commitments.

LOWER RIO GRANDE VALLEY, TEXAS — Shipments (29-96-255, seedless 26-83-223, seeded 3-13-32) — Movement expected to decrease slightly. Trading very active at slightly lower prices. Prices 24-inch bins per-pound red-flesh seedless-type approximately 35-60 counts 28 cents, seeded-type approximately 28-35 counts mostly 21-22 cents. Quality generally good. Most present shipments from prior bookings and/or previous commitments at lower prices.

FLORIDA — Shipments (124-159-233, red-flesh seeded 16-29-53, red-flesh seedless 51-130-180) — Movement expected to increase as more growers start the season in central Florida. Harvesting slowed. Trading very active. Prices generally unchanged. 24-inch bins per-pound red-flesh seeded-type 35s 24-25 cents; red-flesh seedless-type 45 count 29-30 cents, 60 count 29-30 cents. Quality generally good.

IMPERIAL AND COACHELLA VALLEYS, CALIF., AND CENTRAL AND WESTERN ARIZONA — Shipments (AZ seedless 0-23-16, CA 0-26-78, seedless 0-24-73, seeded 0-2-5) — Movement from western Arizona, Imperial and Coachella valleys expected to increase seasonally. Trading fairly active at slightly lower prices. Prices slightly lower. Red-flesh seedless-type per pound 24-inch bins approximately 35 and 45 counts mostly 22 cents. Organic red-flesh seedless 24-inch bins per pound approximately 35 and 45 counts 35 cents; miniature carton 6s and 8s $20.50. Quality generally good. Harvest central Arizona expected to begin the week of May 27.



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SPECIAL REPORT: Foodservice

Produce firms rely on direct contacts as well as distributors

When it comes to getting their fruits and vegetables onto foodservice menus, produce suppliers tend to work through foodservice distributors, but many companies also develop direct relationships with certain customers.

It’s a touchy topic that many suppliers refrain from discussing publicly for fear of offending distributors, who play an important role in helping grower-shippers move their product.

Church Brothers LLC, Salinas, Calif., deals with major distributors and broadliners but maintains some direct relationships, said Vince Ballesteros, director of sales.

“We believe there’s a need for the distributors in today’s world,” he said. “We have healthy relationships with a lot of distributors across the country.”

While the company deals directly with some foodservice operations, Church Bros., also supports distributors’ efforts to grow their business with end users, he said.

Boskovich Farms Inc., Oxnard, Calif., deals directly with some restaurant chains and also has broadline distributors as customers, said Mike O’Leary, vice president of fresh-cut.

Recently, O’Leary has noticed an increasing number of foodservice operators approaching the company directly, often at the Boskovich Farms booth at trade shows.

“Restaurants want to know who they are dealing with,” he said.

They’re sending representatives out to conduct risk assessments and evaluations of plants and fields more often than they have in the past, he said.

Restaurants have their own reasons for seeking direct relationships with grower-shippers, O’Leary said, such as food safety, ensured supply, consistent quality and cost.

But distributors still play important roles as sourcing specialists and getting a grower-shipper’s product into the foodservice pipeline, he said.

Some of the major foodservice chains have the logistics in place and the leverage to efficiently establish relationships with grower-shippers, said Rich Dachman, vice president of produce for Sysco Corp., the mammoth Houston-based foodservice distributor.

But he believes distributors still play an important role.

“We’re the largest foodservice company purchaser of produce in the industry,” Dachman said. “I’d like to believe that our leverage in negotiations with our suppliers could benefit our customers at a higher level than they could do for the most part on their own.”

Choosing to deal directly rather than go through a distributor is a tough call, O’Leary said, and requires a company to determine the best approach to pursue that business.

“Ultimately, everyone is going after same customers,” he said.


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