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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