News and Stories

UPDATE: Value-Added Supplies

January 12, 2015

Supply challenges stemming from erratic growing conditions in the desert growing region are forcing value-added processors to pro-rate orders to meet demand. The fill rate for Ready-Set-Serve (RSS) orders continues to be at 110% over the past 12 week average. Markon recommends monitoring sales to ensure that only key strategic customers are included in weekly averages. 

 

Tight RSS Items Include

• RSS Broccoli

RSS Cauliflower

RSS Green Leaf

RSS Green Onions

RSS Iceberg and Blends     

RSS Romaine and Blends

 

Desert Growing Season Outlook

Approximately 12 weeks remain in the desert region

o Most growers have 8 to 10 weeks of product to be harvested

o Expect elevated prices for the rest of the season

Growers are trying to reduce weekly harvests in an attempt to stretch supply levels

Because growers are planting less in Huron for the spring 2015 season, the industry will have to rely on late-season desert product or pre-season Salinas supplies to bridge the gap between the regions

Weather will play a vital role in industry volume during the transitional period from the desert to the Salinas Valley

o Salinas Valley products will need to mature faster than normal

o Desert growing plants will need to last longer and not burn with spring’s excessive heat

Markon expects volatile prices over the next three to four months. 

 

 

 Please contact your Markon customer service representative for more information.

 

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