Produce stagflation hits
Movement is down and prices are up for fresh produce compared with this time a year ago. That's an obvious conclusion I see when I look at USDA figures on the average price and movement of all produce items.
The weekly snapshot of average price and movement volumes indicates the average fob price for all produce items for the week of June 25 was $17.89 per carton, up 11.3% from an average price of $16.06 per carton the same week last year.
An index of total fresh produce shipments was pegged at 15.22 on June 25, down 29% from 21.34 a year ago. Is this combination of higher prices and lower volume (produce "stagflation" if you will), a persistent new reality? For the short term, with energy prices so high, that seems likely.
On the other hand, the USDA reports strawberries and lettuce have seen big volumes and lower and lower prices. So it is a mixed bag.
I would guess most in the industry want to see rising levels of consumption (volume) at strong prices, but there are always ebbs and flows in the markets, both on the supply side and the demand side.
Here are a few major produce commodities viewed through the lens of fob price and movement.
