California Citrus Prices Steadying Following the December Freeze


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Fri. February 21st, 2014 - by Christofer Oberst

<p> The December freeze left its mark on several California citrus growers, incurring an estimated $441 million in lost revenue due to damage. Shortly after getting product to market, prices across the citrus category steadily climbed, but prices are now steadying after the rough cold snap.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Shortly after the freeze, mandarin prices were reported to be in the mid-thirties for bags and mid-twenties for cartons, while navels were in the high teens to low twenties and lemons were in the low to mid-thirties for most sizes. Prices are currently faring much better in the market now that demand has begun stabilizing when compared to the months following the freeze.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> “We see good pricing. The pricing went up steadily following the freeze, but once everything has been assessed, it found its high point and took a few days to settle out,” Paul Huckabay, Sales Manager at Duda Farm Fresh Foods, tells AndNowUKnow. “But FOB prices are at a good level. They’re at a reasonable enough level to enable the retailers to keep product moving.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Jesse Silva, Sales at Kings River Packing, tells us that he anticipates high demand in April and May for citrus. “Prices may rise a little bit with that demand. It’s hard to say what will happen. We still want everyone to promote and sell the rest of our crop.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> In terms of quality, both Silva and Huckabay agree that citrus has been doing well so far despite the shorter season. Both continue to see good movement in the market, but thanks to the shorter season, there may not be enough product to meet the demand. “That will probably hit sometime toward April,” continues Huckabay. “It’s very possible to see some price increases then.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Silva assures us that Kings River Packing will have a good run of product well into May, and the company expects to see mandarins in the first part of April. “Everyone’s going to need fruit, so we need to do a good job to take care of our core partners,” he notes.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> What will we see come April and May? Stay tuned to AndNowUKnow for updates on the California citrus season.</p><hr class="legacyRuler"><hr class="invisible minimal-padding">