MARKET REPORT – DEC. 9TH 2015
No major shortages – all is good
I guess we will talk about the weather, because it is going to impact you one way or another next week. This onslaught of winter storms that have been pounding coastal BC and bringing spring-like temperatures on the Prairies will continue for some time, but the direction is going to change, bringing storms in from farther north, and mixing with cold interior air. Temperatures next week are expected to drop by about 8C throughout the West Coast from here south to southern California. That is going to reduce the growing degree days by 60% – which means there will be about 1/3 the normal heat units to promote growth.
You know what that means – we’re building up to Christmas, and the broccoli, cauli, celery and lettuce that are already seeing too much rain are going to start reacting to cold soil and slow growth right down. We’re seeing no relief on pricing, and indications are that things will only go up – that coupled with another 2% drop in Canadian currency rates will not help. There is one fabulous highlight that comes with this – the Sierra Nevada is expected to pick up some very much needed snow – forecasts are for up to a metre over the next 6 days – which is more than California received all last winter. That Sierra snowpack is the major source for irrigation in California, so we will just keep our fingers crossed that they get blasted with heavy snow all weekend, and many more storms after that. This winter was expected to be the deal-breaker for the California drought, and forecasts for warmer temperatures has not yet been realized – the wetter than normal part of the forecasts has been spot on.
On the other positive note, we are so lucky to have been working for several years building our relationships in Mexico, especially with Gustavo Gaya. He has grown substantially in size (farm wise, not waist wise) and is now growing a wide range crops on contract for us, as well as major brand names in the US. And guess what? He over-planted and needs help moving product – so we are bringing in a flood of extra broccoli bunches and crowns, celery and romaine over the next few weeks. Feel free to book product in advance from our ad planner – remember that those ad sheets are cap pricing – if the market price drops unexpectedly, you won’t pay more, and if prices go up, well, you’re covered.
As far as the general selection, there are virtually no new listings, no major price changes (except Cauli which is hitting all-time highs) and no major shortages – all is good.