Church Brothers Farms' Jason Lathos Discusses Possible Spike in Broccoli Market
- by Melissa De Leon Chavez
SALINAS, CA - Mother Nature has been calm enough to balance the broccoli market in California, but we could soon see a surge in higher prices due to Mexico weather affecting supply, according to Church Brothers Farms’ Commodity Manager, Jason Lathos.
“The weather has had a big impact recently in central Mexico,” Jason tells me, explaining that while the mild weather in California made for a flatter market the last month or so, lighter volumes always seem to perk the market up.
“Last Saturday there was a hail storm that went through the growing region, and we are being told that this will impact supplies for both the short term as well as plantings that are currently in the process for mid-October and early November. The market has already firmed up and quality reports are to being conducted to see how the rain will affect quality the next few weeks.”
Up in California, Salinas and Santa Maria’s mild weather has helped see signs that the market is getting better, Jason says, adding more high quality broccoli.
According to Church Brothers, supplies on broccoli is more manageable in both Salinas and Santa Maria Valleys, with lighter supplies than previous weeks. The company reports current FOB’s are $7.25 to $8.25 on bunched; $8.25 to $9.25 on domestic crowns and $9.25 to $10.25 on Asian crowns.
“We have also had a nice increase in demand for processed broccoli due to the increase in school business. Increased pounds for value-added always decreases cartons,” Jason tells me.
He adds that keeping an eye on the weather is critical to forecast the market. “With hurricane activity being forecasted for both the East and West coast we could see an even higher broccoli market for the month of September.”
AndNowUKnow will continue to keep you up to date on the latest in this and other changing markets in the industry.