Strange times buying produce: domestic produce with upper hand?

I was talking with an East Coast distributor the other day who mentioned that fruit buying patterns have been unusually hard to anticipate.

841C3BAC-0F52-4805-8D54CFE338926C33.png
841C3BAC-0F52-4805-8D54CFE338926C33.png
(The Packer)

I was talking with an East Coast distributor the other day who mentioned that fruit buying patterns have been unusually hard to anticipate.

“I talked to a lot of buyers and a lot of different types of organizations and we’re all saying the same thing. It’s very strange,” the operator said.

I mentioned the USDA’s Farmers to Families Food Box Program and wondered out loud whether the program’s requirement for domestic produce was perhaps skewing the markets.

In fact, he said that may be part of the current dynamics, as he said that Mexican flames are selling at a discount to their Coachella Valley counterparts.

Even so, the estimated volume of the Food Box Program is only a million boxes (10 to 30 pounds each) per day; domestic and imported weekly produce shipments are closer to 50 million 40-pound cartons, according to USDA statistics. So it may be stretching credulity to see a connection between the food box program and market conditions.

Here are a couple of price charts shows pricing comparisons between domestic and imported options of the same commodity.

What say you? Is the Farmers to Families Food Box Program bending f.o.b. markets toward domestic options?


The Packer logo (567x120)
Related Stories
As peak harvest seasons in Florida and California converge with diesel prices sitting at $5.40 a gallon, refrigerated trucking capacity is poised to hit its tightest level in over a year. An expert reveals how to avoid a shipping scramble in July.
The Union City, Calif.-based company is eyeing a potential 50% boost in sales following the first acquisition in its 63-year history, a strategic expansion engineered to master the high-stakes world of just-in-time produce logistics.
Severe drought and unseasonable spring heat in North Carolina are causing significant yield losses for specialty crops like brassicas and berries while simultaneously increasing pest pressures for regional organic growers.
Read Next
It’s an optimistic outlook from growers and importers, who expect strong supplies from domestic and offshore crops.
Get Daily News
GET MARKET ALERTS
Get News & Markets App