Buyers Guide: In a new normal
This month we look at food pricing trends, and the reasons behind them, for 21 food items, as well as the overall agriculture industry, to help you make better purchasing decisions for the year to come.
Published in FSD Update
Fruit
Tomatoes
2013 price: 11.7% (California), Flat (Florida)
2014 forecast: Too volatile to predict
What's affecting price: Curly-top virus, beet leafhopper, excessive heat and drought in California have combined to push up prices for these tomatoes, 95% of which are processed into sauces and the like. In Florida, however, a flood of Mexican tomatoes into the market has made it difficult for farmers to make much money on their tomatoes.
What's new in the industry: A new trade agreement with Mexico, signed in 2013, should eventually bolster Florida tomato prices.
Avocados
What's affecting price: Supply and demand have the greatest effect on the price of avocados. Weather also impacts supply, particularly as it relates to California-produced avocados, where the recent drought has already reduced the expected size of the 2014 crop from what was produced last year. Nearly 30% of the world’s supply is grown in California, while more than 60% is grown in Mexico.
What's new in the industry: Due to the nutritional value and the proliferation of ethnic menu items, demand for avocados has been increasing each year.
Operator innovation: Tufts University, Medford, Mass. Avocado Citrus Sauce over Grilled Chicken. Avocados are for more than just guacamole: Top off traditional and ethnic burgers, sandwiches and salads; use as a main soup ingredient or sauce component.
Blueberries
What's affecting price: Supply plays the greatest role in blueberry pricing, but recent technological advancements and expanded production across the country have allowed for increased crop supply. The US Highbush Blueberry Council estimates a harvest of approximately 805 million pounds by 2017.
What's new in the industry: Demand for blueberries has increased during recent years due to the fruit’s health and nutrition benefits, convenience, taste and versatility.
Strawberries
What's affecting price: Weather and supply are the biggest factors in the pricing of strawberries, with prices at the lowest during the peak summer season. More than one-third of U.S. strawberries are grown in California, and the state’s drought issues may impact crop availability. Florida produces the largest amount of strawberries, which are the most popular berry, accounting for just more than half of all berry sales. Second to strawberries are blueberries.
What's new in the industry: A consumer favorite and a signal of summer, strawberries continue to increase in popularity because of their sweet flavor, convenience, versatility and nutritional value.
Apples
What's affecting price: Weather is the greatest influence on price and availability of apples. Grown in every state in the continental U.S.—Washington, New York and Michigan are the top three apple-producing states—demand continues to be met.
What's new in the industry: New methods of preservation have increased usage, like apple slices now available at McDonald’s, requirements set by the National School Lunch Program, and apple’s health benefits, convenience, variety and versatility keep this fruit the apple of our eyes.
*Prices are based on the Consumer Price Index. According to the CPI, fresh fruit prices are projected to increase 2.5% to 3.5% in 2014.
Sources: Agricultural Marketing Resource Center, Bureau of Labor Statistics, California Avocado Growers, California Strawberry Commission, California Tomato Growers Association, Hass Avocado Board, Florida Tomato Committee, Growingproduce.com, MSN Money, Produce Marketing Association, U.S. Apple Association, US Highbush Blueberry Council, United States Department of Agriculture, United States Department of Agriculture Economic Research Service
