Organic vegetable supplies taking rootOrganic vegetable supplies taking root

The shortages in organic vegetables and the accompanying high FOB prices that were evident throughout November are being rectified as volume from the Southwest desert production areas, as well as Mexico, will continue to increase throughout December. Normal transition uncertainty, as well as unusual September/October weather patterns in production areas, led to the higher-than-normal prices for the Thanksgiving pull with some FOB prices approaching record levels.

Gabe Romero, a salesman for The Nunes Company in Salinas, California, said on Monday, Dec. 2, that organic celery, broccoli and cauliflower supplies were still very short with high prices but there is light at the end of the tunnel. He noted that production from Yuma, Arizona, where Nunes has substantial winter supplies, was continuing to increase. Those three short crops should be in much better shape volume-wise, by mid-December, he said. 

He added that most other organic vegetable crops have already turned that corner. The organic lettuce crops—including romaine, romaine hearts, leaf lettuces and iceberg lettuce—were all in pretty good supply and he expected no significant shortages for the Christmas pull.

“We expect Christmas orders to start coming in later this week… Wednesday, Thursday and Friday (Dec. 4-6). And then we will be hit hard next week (Dec. 9-15),” he said.

Romero noted that produce terminal customers on the East Coast (e.g. New York, Philadelphia and Boston) who place orders next week will see those supplies arrive at their receiving docks the week before Christmas, which will allow them to fill their customers’ orders in a timely manner for the holiday.

Brenda Haught, president of Creekside Organics Inc. in Bakersfield, California, had a very similar report from her organic growers, who are located throughout California. “Cauliflower, celery and leeks remain very tight as we continue the transition (to winter production),” she said. “But we have good supplies of cabbage, kales, the chards and carrots.”

Canva: Stacks of cauliflower heads

During the winter months, Creekside continues to source from both the Salinas and Sacramento valleys, as well as the Brawley district in the Southern California desert. She said it was the slow start in the winter desert deals that caused the spike in FOB prices during the transition for several of the aforementioned crops.

Haught expressed confidence that most organic vegetable supplies will be at or near normal levels by mid-December allowing for a much better supply situation for the Christmas holiday than was the experience during the run-up to Thanksgiving.

Tomato volume steady, but prices high

Joe Bernardi of Bernardi & Associates, which is headquartered in Nogales, Arizona, spoke generally of the tomato category, noting “that we will have enough volume for Christmas but there will be high prices.”

The longtime veteran tomato broker said the tight supply situation, leading to the higher prices, is directly related to the three hurricanes that made landfall in Florida during the late summer/fall growing season. Hurricane Debby made landfall in early August, followed by Hurricane Helene in late September and Hurricane Milton in early October.

“People are blaming Mexico for the lack of tomato supplies, but Mexico is doing what it always does in December,” Bernardi said on December 2. “Culiacan (West Mexico’s major winter tomato district) is 2-4 weeks away from full production, which is normal. This is typically Florida’s window.”

He said East Coast customers are looking for tomato supplies from the West, which is driving the market price up. He expects supplies to be very tight through the first half of December, which will coincide with increased demand for the holidays and keep the prices above normal at least until after Christmas.