Berries have seen great consumer demand this summer, and raspberries are no exception.
Volumes have been up over previous years, and that is causing some instability in the F.O.B. market, as prices have fallen from the low $20s per flat in early August to below $10 at the start of September. But prices have been on a rise the past two weeks.
Lower FOB/Terminal prices likely linked to increased supply
Together, Mexico and California Central account for 82.67 percent of the U.S. production of raspberries, with Mexico the single largest producer with 58.45 percent of total U.S. volume, said Paola Ochoa, Program Manager for Agtools Inc. BB #:355102
Blue Book has teamed with Agtools Inc., the data analytic service for the produce industry, to look at a handful of crops and how they’re adjusting in the market during the pandemic.
The regions of California South and Chile are the next group of producers for the U.S. in terms of volume. These four supplying regions are responsible for almost the entire U.S. volume.
VOLUME TOTAL, RASPBERRIES CONVENTIONAL FROM AUGU.S.T 1ST THROUGH SEPTEMBER 13TH
A comparison of 2020 volume with 2019 and 2018, for the period between August and September 13, 2020, shows increases of 6.6 percent and 15.3 percent respectively, Ochoa said. Demand for this commodity is steadily increasing as evidenced by consecutive years of significant growth.
F.O.B. PRICE IN SALINAS RASPBERRIES CONVENTIONAL SIZE MEDIUM FROM AUG. 1ST THROUGH SEPT. 13TH
At the beginning of August, the F.O.B. of raspberries was higher this year than previous years, but at the end of August 2020 prices began to fall, Ochoa said.
The lower prices can be connected to the increase over previous years lasted until the first week of September. With volumes returning to what can be considered normal territory, prices have begun to come back up albeit slowly.
NEW YORK TERMINAL PRICE FOR CONVENTIONAL RASPBERRIES FROM CALIFORNIA FROM AUG. 1ST THROUGH SEPT. 13TH
The New York terminal market prices have been the lowest of the last three years since the third week of August through September, Ochoa said. The lower price coincides with the increase in production and the likely related drop in F.O.B. prices.
SOUTHEAST RETAIL PRICE FOR CONVENTIONAL RASPBERRIES FROM AUG. 1ST THROUGH SEPT. 13TH
The retail price in the Southeast it has been very stable compared to previous years, so we can conclude that the increase in volumes this year during August has not directly impacted consumer prices, she said.
With the data so far this year we can conclude that this product is increasing in consumption and the increase in volume has likely resulted in lower F.O.B. and terminal prices.
During the upcoming weeks, Mexico’s raspberries exporting season will begin, and the data will provide further insights into the behavior of volume and pricing for this popular commodity.