Organic Veg Supplies to be Tight Through November

Several factors have combined to create extremely tight supplies across the organic vegetable category, with the core commodities being hit especially hard. The result has been high FOB prices across the board, with no easing expected until after the Thanksgiving pull.

“Our core organic commodities—including leaf lettuce, romaine, broccoli, and iceberg lettuce—all look to remain tight supplied through this year’s transition to the Yuma/Imperial Valley region for the winter growing season,” said Casey Mills, director of sales for Braga Fresh Family Farms located in Soledad, CA. “Numerous factors have played into the short-supplied position we are currently experiencing as an industry.”

Casey Mills, Director of Sales, Braga Fresh Family Farms

A late summer heat wave in the Salinas Valley and a serious plant virus have contributed to the supply shortage, Mills said. Additionally, a storm in Baja California, Mexico, that reached up to the desert growing regions in California and Arizona produced a significant amount of hail, causing some damage to young plants, which may further impact the supply situation as the holidays approach and demand increases.

“Our core organic commodities—including leaf lettuce, romaine, broccoli, and iceberg lettuce—all look to remain tight supplied through this year’s transition to the Yuma/Imperial Valley region for the winter growing season.” - Casey Mills

“Winter transition for us should be complete by the first or second week of December,” he said. “At that point, pending early-season quality issues that we cannot predict, we should see supplies begin to come back into sync with anticipated demand. One thing we will need to keep a close eye on is how the hurricane in Florida has affected supply there and how that could impact our demand out west.”

The one item that has remained in good supply is organic celery. “We are seeing excellent yields currently, and we look to be in good shape as we head toward Thanksgiving when we historically see demand increase by around 40 percent,” Mills said.

Surveying the sales sheet, the Braga Fresh representative said commodity FOB prices have definitely increased. “We did see $50 markets last fall and are seeing similar/slightly higher pricing now. The higher prices do, however, seem to be affecting more items across the board.”

“We are seeing excellent [organic celery] yields currently, and we look to be in good shape as we head toward Thanksgiving when we historically see demand increase by around 40 percent.” - Casey Mills

Joe Eisinger, director of organic buying and sales at Nathel & Nathel Inc. on New York’s Hunts Point Market, characterized the current commodity vegetable supply/demand situation as “crazy.” Market situations like this have happened in the past, he said, but they are very rare and usually don’t cut across so many items. “Iceberg, romaine, red leaf, green leaf, broccoli, and green onions—there are so many items that have reached panic level,” he said.

Joe Eisinger, Director of Organic Buying, Nathel & Nathel Inc.

Suppliers are telling Eisinger there is no quick fix. “It seems like it is just the perfect storm that has caused this,” he said, noting that celery supplies are steady with a normal market price and the leafy items like kale are also available in good numbers.

“Iceberg, romaine, red leaf, green leaf, broccoli, and green onions—there are so many items that have reached panic level.” - Joe Eisinger

Katie Tossie, organic product manager for Ocean Mist Farms in Castroville, CA, said “Overall organic volumes seem to be down industry wide. ... This includes Ocean Mist Farms. Our volumes are down on several items; however, as we move closer to the Thanksgiving pull, we should be in a position to cover our core customers’ needs.”

Katie Tossie, Organic Product Manager, Ocean Mist Farms

Ocean Mist will soon be transitioning its organic product from Castroville to Oxnard and then on to the Coachella Valley. “We hope to be finished up in Castroville by mid-November.” Tossie said.

Looking across the company’s portfolio of products, Tossie said there are some commodities that should be able to move into the promotable column. “We should be able to cover our core customers with limited promotions going into the holiday pull on staple/hardy commodities, such as artichokes, broccoli, cauliflower, and celery.”

“Overall organic volumes seem to be down industry wide. ... This includes Ocean Mist Farms. Our volumes are down on several items, however as we move closer to the Thanksgiving pull, we should be in a position to cover our core customers’ needs.” - Katie Tossie

Tossie did agree that the current FOB situation is very favorable and rare. “I’ve been on the organic desk for nearly four years now, and this has been one of the best markets I’ve seen over a number of commodities going into the holiday/transition season.”