Has COVID-19 killed produce markets or brought them new life?
The effect of the pandemic on produce prices and shipments this year is worth further study. It may be that consumption of at least some produce commodities is down this year, related to reduced impulse sales at retail, sagging restaurant business, and a depressed economy.
On the other hand, the “health halo” on citrus and other commodities has spurred shipments and boosted prices.
I checked in with the Custom Average Price Tool at the U.S. Department of Agriculture website and pulled these charts together.
The all-commodity chart appears to show reduced shipments but higher prices compared with both last year and two years ago.
Looking at the chart for romaine lettuce, we see the same thing - higher prices and lower volume compared with the last couple of years. How much will romaine consumption, and consumption of all fresh produce, decline because of COVID-19?
Looking at potatoes, it appears the harvest pressure has had an effect on pricing but strong demand during the holiday season should support f.o.b. prices through the end of the year.
It is remarkable to see the demand and price effect for oranges from COVID0-19, as illustrated in the chart below.
