Lettuce Shortage Spikes Prices and Challenges Production for Foreseeable Future


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Fri. October 11th, 2013 - by Jordan Okumura-Wright

<p>The industry-wide iceberg lettuce shortage is keeping growers on their toes. Playing their role in the season's supplies were weather, an early start to the season and a seeder core issue caused by above average temperatures or a cold spell that can cause the plant to bolt. One of the industry's largest lettuce company's recently began taking steps to mitigate the shortage and is suspending production of all iceberg containing products for up to two weeks.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Growers tell us that a combination of the crops running ahead of schedule this year, along with the decreased acreage in the San Joaquin Valley due to the water shortage, have resulted in tight supply and higher prices. Reaching upwards of $23 -$28 on wrap-24 lettuce, the price is about double what it typically runs during this time of year. Based on the supplies, the shortage could run into the Yuma season. Other categories are also in tight supply with broccoli, cauliflower and carrot prices on the upswing.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Another situation that is complicating the matter is the government shutdown. The USDA Market News Service is closed and its daily report on market prices is what is used by shippers and receiver’s as a neutral 3rd party to determine average pricing. This becomes quite important in tight supplies due to the high prices and potential for contract prices to move up when average prices exceed predetermined market triggers.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>The recent situation with an industry lettuce leader could become more familiar to other growers in the industry, a grower tells us. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Stay tuned to AndNowUKnow as we follow the industry-wide lettuce shortage.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">