California vegetable growers will plant reduced acreage in the next few months because of declines in foodservice demand related to the COVID-19 pandemic.
That was one observation from Rabobank fruit and vegetable analysts Roland Fumasi and David Magana in an April 28 interview with The Packer’s Tom Karst.
Fumasi, a senior analyst for fruit, vegetables and floriculture with RaboResearch, talked about the big surge in retail sales in mid-March and what the current retail numbers reflect, by commodity.
Magana, senior analyst for horticulture for RaboReserch, outlined the percentage of vegetables and fruit that typically are used in the foodservice channel, and the implications for current conditions.
Both analysts look at the potential economic damage caused to California growers and how much the federal COVID-19 relief program can help.
Looking ahead, the analysts consider possible pain points ahead, especially related to COVID-19 outbreaks among farm labor and packinghouse workers in the fresh produce supply chain.
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