Growers slammed by low prices, higher costs
Supplies were ample and prices were on the low side for California lettuce producers in July.
The average (conventional and organic) shipping point price for romaine lettuce on July 10 was $11.77 per carton, down about $10 per carton compared with the same time a year ago, according to statistics compiled by the U.S. Department of Agriculture.
Through July 10, the USDA reported season-to-date truck shipments of central California romaine lettuce were running 4% ahead of last year. Iceberg lettuce shipments were about 3% lower than the same time a year ago, according to the USDA.
Cooler prices
From late July to mid-December last year, the average shipping point price for California romaine traded above $20 per carton, reaching a peak average of $41.39 per carton on Oct. 17.
For iceberg lettuce, the average shipping point price on July 10 was $10.83 per carton, down from more than $15 per carton the same week last year.
From Sept. 19 to Nov. 18 last year, the average shipping point price for California iceberg lettuce never traded below $20 per carton and reached a peak of $32.89 per carton on Nov. 21.
Cost pressure
While shipping point prices were sluggish in July, shippers found increasing costs for trucking and other inputs.
Refrigerated truck costs from Salinas produce moving to New York were reported in a range of $11,000 to $12,400 on July 10, up from about $9,000 to $9,300 in late March and much higher than $7,200 to $8,500 in mid-July a year ago.
Shipment record
According to USDA, 2020 shipments of lettuce, compared with 2019 and 2018, were:
- California iceberg: 173,946 (10,000-pound) units, up 30% from 2019 but down 3% from 2018.
- California romaine: 136,536 (10,000-pound) units, down 4.5% from 2019 and down 3% from 2018.
