March 4 2022 - Lipman Family Farms
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march 4 2022
THE MARKET
UPDATE
ROUND TOMATOES are producing at steady levels. Lipman is harvesting early
FL’s round tomato production continues at steady, moderate picks (1st-3rd) on the Estero farm and later picks (6th-9th)
levels this week. Sizing is predominantly XL and quality is from the Naples acreage, with strong quality on all. However,
strong from most, including Lipman. We’re harvesting in with demand on the lighter side and the industry’s strong
Naples now, but will also break into the Estero crops next levels of production, some growers have inventory backups
week and harvest from both areas for the month of March. which could mean some lesser quality in the market.
Unfortunately, next week is when the industry will begin to
see the first effects of the frost-induced bloom drop. West Mexico farms are still churning out strong volumes of
Production is expected to be down 10-20% next week, then grape tomatoes this week. Quality has been nice as long as
will decline further for the following 2-3 weeks as growers the fruit is fresh.
work through the plantings that were most affected by the
late January frost/freeze event. By late March/early April, BELL PEPPERS
production should be back on track just as things begin to With growers moving out of older, weather-affected fields
transition to the north. with quality issues and only a few new plantings in harvest,
FL’s bell pepper supply is on the lighter side this week. There
West Mexico will continue with steady volumes of mature are some new fields on the East Coast that will get started
green and vine-ripe tomatoes until mid-March then lighten up next week which will help supply. But, we’re 2-3 weeks out
slightly as a number of growers transition to new fields/areas. from a significant volume increase which will come as Spring
The weather has been great, so sizing continues to be on the crops get underway in South FL. Overall quality has improved
larger side of the spectrum with mostly 4x4’s, 4x5’s and 5x5’s from last week, but the down side is that there’s very little
available. Quality is nice as long as the fruit is fresh. Light choice product available.
supplies are also coming out of Baja, where growers should
continue at a consistent level through March. Mexico’s pepper volume is also on the light side this week.
Some farms have seen volume decline by as much as 50%
ROMA TOMATOES from the levels of the past few weeks as hot weather brought
Roma tomato availability in FL is holding at consistent levels the fruit along quickly and early and they naturally progress
with the last few weeks. The vast majority of fruit being past the peak of the Winter season. Lighter supplies are likely
harvested is XL, jumbo, or larger. The frost from a month ago to continue through March and into April when the bulk of
damaged the tops of some plants, sending all the nutrients pepper production transitions to the CA desert. We are
and growth to the mid-section of the plants. This, coupled hearing that CA growers could get off to a late start, so stay
with great weather, is why there’s such large fruit around this tuned.
week. Market pricing is at minimal levels, so any of the smaller
fruit that’s available is going into chopper boxes. Quality is CUCUMBERS
good from most, and our Lipman romas have been excellent. Volume has declined from the offshore cucumber program,
Roma production will mimic that of rounds for the next 3-4 as the Honduran growers begin to wind down the season. For
weeks- somewhat lighter next week, more significant volume all practical purposes, most will wrap things up over the next
declines for another 2 weeks or so, then recovery as we move 10-14 days. In the meantime, the East is waiting on FL’s Spring
into April. crops to get rolling. Some of the first fruit will be harvested in
about two weeks, with volume increasing to seasonal levels by
West Mexico’s roma tomato supply will continue from the end of the month/first part of April.
Guaymas, Culiacan and Guasave during March although not
as heavy as the previous few months as some of the acreage Cucumber supply has improved in Mexico as some of the
begins to transition north to Obregon. Production will stay a growers that have been in gaps have come back in with new
little lighter in March, then ramp up in April as Spring crops hit fields. We expect mostly steady supply from Sinaloa for the
their strides. Current sizing is on the larger side with most of next several weeks but Eastern demand will be a factor in
the smaller fruit (mediums and smalls) staying in Mexico due availability for at least the next 2 weeks. As is the norm from
to cheap market prices. the shadehouse-grown fruit, quality is strong with only
minimal issues on occasion.
GRAPE TOMATOES
Although most in the industry expected grape tomato crops YELLOW & ZUCCHINI SQUASH
to feel the brunt of the late January/early February frost with FL’s squash volumes remain somewhat limited on yellows and
some potential yield issues, they have rebounded quickly and mostly adequate on zucchini. There aren’t a lot of new
Continued on page 2
ON THE HORIZON | 01
YELLOW & ZUCCHINI SQUASH...Continued could see some older product over the next few days as a result of
plantings in production yet, so most harvests are coming from border delays.
older fields in the Immokalee and Homestead areas. Quality is
pretty nice on zucchini, but there are some hit or miss issues COLORED BELL PEPPERS
on yellows, which serves to reduce the marketable supply. We Availability of colored bell peppers is adequate this week with
expect to see Spring plantings get started over the next few product arrivals in both Nogales and TX. There’s a pretty good
weeks in South FL and in Plant City in April. flush of yellows and a decent amount of reds, but orange peppers
are still on the lighter side. The majority of product is in the jumbo
Although we are seeing good growing weather in the and XL size range as most harvests are coming from new crops.
southern areas of Mexico, the few growers with limited Smaller and choice fruit remain snug this week, but we should
amounts of new acreage aren’t seeing the harvests they start to see a little more in the next 7-10 days. There are already a
anticipated since they are fighting some disease issues. Other few colored bells showing up in Canada and we expect to see a
southern growing deals are on their way out and should finish little more next week as a couple more houses begin the season.
up over the next couple of weeks with limited volume and By the last week of March, Canadian fruit will become a factor as
some potential quality challenges. With the northern fields in most growers will have started and volumes build.
Hermosillo not quite ready to start up, supply is likely to
remain snug for the next two weeks. TOV (Tomato on the Vine)
TOV supply continues at strong levels this week with fruit coming
EGGPLANT from Mexico, CA, UT and TX. Strong supply is expected to continue
FL’s eggplant production remains at a minimum. South FL will for at least the short term. Production is minimal in Canada right
see light volume start in late March/April, but there’s not a now, but Spring crops are on tap to start up in the next few weeks
whole lot of acreage in these plantings. So, it may be the end with strong, seasonal volumes coming in toward the end of April.
of April before volume perks up to stronger, more seasonal
levels. Current harvests are coming from older plants that ORGANIC ROMA TOMATOES
have been through weather, so quality is just okay. Organic roma supply continues at steady levels with most product
coming out of Sinaloa. There could be a few bumps in the road as
Mainland Mexico continues to have good supplies of eggplant we get further into March, when production transitions to Sonora.
to offer and should go through March and April before
dropping off. Quality is strong, allowing the product to travel.
ORGANIC GREEN BELL PEPPERS
The CA desert is on tap to begin the season in early May,
Availability of organic bells is beginning to tighten up as a) the
hopefully in time to avoid a gap in supply. Although supply is
conventional market gains strength and b) we work through the
expected to be consistent, availability may have some
latter phases of the current plantings. There's less volume on #1
occasional challenges as demand is strong during the Lent
fruit and we could experience short supply as we wait for
season.
production to transition to CA in April.
CHILI PEPPERS
ORGANIC CUCUMBERS
This week’s report is similar to the last several weeks- there
Current production levels are consistent on organic cucumbers.
are minimal amounts of chili peppers in FL with sporadic
However, the conventional market has been strong so some have
availability. We should begin to see a little more volume over
sold product as conventional to capitalize on the higher pricing.
the next few weeks as some Spring plantings get started in
There's enough being harvested to continue with adequate supply
South FL, but we’re a month out from Plant City coming online
and availability should get a notch better when the conventional
with their typically stronger numbers.
cuc market eases up.
Mexico’s chili pepper production is overall, a bit lighter. There
is consistent availability on jalapenos, poblanos, and ORGANIC SQUASH
tomatillos with supply a bit more snug on the serrano, There are moderate volumes of both organic zucchini and yellow
Anaheim and Caribe options. Demand for poblanos is typically squash this week. Fancy-sized fruit is a little on the shy side, but
strong during the Lent season, so this is one to watch. Quality there are good volumes on extra fancy and mediums. Quality is
is mostly good but there are some occasional reports of less- varied, as there is product being harvested out of both older and
than-perfect fruit. newer fields.
GREEN BEANS
FL is back with good supply of green beans out of South FL
which should continue for another couple of weeks. By April,
production will start the transition to the lake and Plant City
areas. There is a variance in quality this week, but good beans
are available.
Some growers in Mexico are gapping on beans as they work
through transitions, which has kept supply light in Nogales
this week. There have also been some issues at the border
which has not helped consistency in supply. However, our
Victory Garden fields will start back up over the weekend and
should provide consistent volume for the next few weeks.
Quality is good with no major issues to report although we
ON THE HORIZON | 02
Transportation
Produce
Facts:
The national average price for diesel fuel
continues to "move on up" $.05 more this week,
Barometer:
and now stands at $4.10 per gallon.
All regions reported price increases ranging from
$.03 to $.08 per gallon. The New England area ITEM QUALITY PRICING
captures the prize for the sharpest increase of
$.082 per gallon.
Bell Pepper Good E-Higher; W-Higher
Diesel fuel prices are $1.03 higher than the same
time last year.
Cucumber Mostly Good E-Lower; W-Lower
The highest diesel prices are reported from
California where they are $5.08 this week. The
lowest costs can be found on the Gulf Coast Eggplant Varied E-Lower; W-Steady
($3.87) and in the Midwest ($3.97).
Truck availability is mostly adequate or only Green Beans Mostly Good E-Steady; W-Higher
slightly short at the active shipping points this
week but rates continue to be pricey. The
Nogales to Chicago route will cost about $6100 Jalapeños Mostly Good E-Steady; W-Steady
while South FL to Chicago will run about $2750
per load.
Squash-Hard Mostly Good E-Steady W-Steady
Squash-Soft Varied E-Higher; W-Higher
Tomatoes Good E-Lower; W-Steady
Events
DID YOU KNOW? March 3-5, 2022
-There are at least 130 different kinds of
Viva Fresh
beans. Most are green, but some are Gaylord Texan Resort
purple, yellow or even spotted. Grapevine, TX
www.vivafreshexpo.com
-The common green bean has a long
history as a foodstuff. They originated in April 5-7, 2022
Peru but have been cultivated in Mexico CPMA Convention & Trade Show
for over 7500 years!
Palais descongres de Montreal
-Green beans are a good source of vitamin A, vitamin C
Montreal, Quebec, Canada
and folate. They are also naturally free of saturated fat www.convention.cpma.ca
and cholesterol which makes them heart healthy.
May 16-18, 2022
-Green beans are also good for the gardens where they Brandstorm Conference
grow. That's because they capture nitrogen from the air Marriott Marquis San Diego Marina
and release it into the soil. This provides nutrients for San Diego, CA
future beans and other plants to grow. www.freshproduce.com/events
ON THE HORIZON | 03
MARCH 4, 2022 | NEWS ARTICLES
MERCHANDISING MINUTE
Dave was Awesome; Be Like Dave Of course, he was right. And, of course, we barely
tolerated him for the nitpicky discipline … at first. Little
WWW.THEPACKER.COM
by little, we all came to appreciate and even embrace
By: Armand Lobato
the wisdom of his ways. “Besides,” he always pointed
out, “this is a fresh-food environment. Get it together,
March 3, 2022 people!”
Dave was awesome; be like Dave. It rubbed off on the whole crew. We discovered how
much we liked working in a clean environment. We
“Your mother doesn’t work here, so clean up after held our heads up a little more and took pride in our
yourselves!” The saying — and sometimes posted work as we also shadowed Dave’s efficient lead, his
workplace sign — goes back many generations. It is as open example of tracking and posting sales, the
accurate a manager’s credo as it is timeless. And, of produce department’s percentage of store sales and
course, applies perfectly in any produce department. more. A crew likes to know how the department is
performing, and Dave liked keeping score.
In my early produce years, I worked for a few laissez-
faire managers who didn’t really push much order. And Managing a produce department is about hard work all
it showed in how the department operated: erratic right, but it’s also about forging a good routine and
orders, messy back rooms, disheveled displays, dirty sticking to it. Every morning, Dave insisted that we
fixtures. This led to inconsistent quality, erratic sales, straighten, cull and detail the entire department. As
questionable customer satisfaction, out-of-control we methodically did this, we made notes on a legal
labor spending, poor employee morale and more. pad. On the page were four headings: Items to rotate
Who could feel good about working in such an that day, things we had to clean, merchandising
environment? changes and, of course, “other/miscellaneous” tasks.
Left on the backroom desk, the crew followed these
By the time I was assistant produce manager in my daily plans and scratched off each task as completed
early 20s, I was assigned to help open a new store and — which also gives a person a sense of
work under “Dave.” At first, nobody really cared for accomplishment. It feels good.
Dave. He was a list-maker. Dave was a clean freak and,
when things didn’t go exactly the way he wanted, he After all these years, this old produce scribe makes to-
became, shall we say, grouchy. As time went on, do lists. It works wonders to help stay focused.
however, I learned to love the guy — as did the rest of
our crew. There was no such thing as a slow day with Dave. He
kept up with merchandising, product prep, ad
Dave was to produce management what Gen. George planning, meetings, training, bookwork; like all of us,
McClellan was to organizing Union troops during the he took two days off every week and rarely worked
Civil War: very thorough and one who left little to overtime. When other departments in the store fell
chance. Every day, we cleaned, we stocked, we behind and caught our district manager’s wrath, they
merchandised. Not to just any old whim, but according scrambled to catch up with deep cleaning and more,
to Dave’s careful planning. creating tension and going over budget. Meanwhile,
we stood alone, almost never having to play catch-up
Everything was organized and regularly cleaned, and smiling knowingly when others in the store
including the back dock receiving area, the cooler, the suggested, “You guys in produce, you have it easy.” We
prep table, the front-end fixtures, the little desk in our knew what it took to be successful, and nothing about
back room. Even our bulletin board was arranged it came easy. Amid this remarkable discipline, Dave
neatly with current labor schedules, merchandising was a true mentor — quiet and humble … and only
schemes and fixture cleaning charts. Every produce occasionally, grouchy.
item had a designated storage area in the cooler, and
without exception, everything else had its place, from
the stapler to knives, to where we hung up our aprons
at the end of a shift.
Dave made this all very clear on why he insisted on
being “this way.”
“It only takes a minute to sweep up a mess,” he once
said. “It shouldn’t take you 20 minutes to find a
broom.”
ON THE HORIZON | 04INDUSTRY VIEWS
The IFPA Puts Agricultural Impact Today, it imports less than 1% of its food-based
of Ukraine-Russia War into Focus agricultural products from the U.S. So, it’s unlikely that
WWW.THEPACKER.COM sanctions will have a direct impact on the U.S. produce
By: Jennifer Strailey industry. However, given that Russia is an approximately
$20-$30 billion market for agricultural commodities,
some rebalancing will have to occur.
March 3, 2022
It’s day eight of the Ukraine-Russia crisis turned war, As additional sanctions are imposed on Russia, how
and both tensions and the death toll continue to rise. might retaliatory actions impact the U.S. economy and
CNN, citing Ukraine’s Emergency Service, reports that our already challenged supply chain?
more than 2,000 Ukrainian civilians have been killed
during Russia’s ongoing invasion. Teplitski: At present, all of Ukraine’s grain exports are
stuck in ports along the Black Sea and Sea of Azov, and
President Biden, the U.S. government and countries all imports are under Russian threat. In terms of
around the globe have condemned Russia’s invasion horticultural trade, Moldova, the Republic of Georgia,
and continue to impose sanctions aimed at Ecuador, Turkey and Germany will be most impacted by
constraining the Russian economy in support of the war, since they have significant trade relationships
Ukraine. with both countries.
As the situation unfolds, the U.S. considers the As we get closer to planting season in Ukraine, the
economic impact the war may have on the country’s impact of the war on U.S. agriculture will most likely be
already beleaguered supply chain, rising inflationary felt by seed and agricultural input producers, as those
pressures, oil and natural gas prices, and more. are the highest-ticket items that are being exported from
the U.S. to Ukraine. Winter wheat and canola are already
To learn more about how the crisis may impact the in the ground in Eastern and Southeastern Ukraine, with
produce industry, The Packer recently sat down with other cool-season crops [such as potatoes, sugar beets,
Max Teplitski, chief science officer of the International carrots and cabbage] due in the ground within a month
Fresh Produce Association. or so.
What is the potential impact of the Ukraine-Russia It has been announced that the world’s largest shipping
crisis on U.S. agriculture in general and the produce companies are cutting ties with Russia, which means
industry specifically? more containers and vessels may be freed up on the
global market. There’s a possibility that this may
Teplitski: These are two very different economies. alleviate some of the global issues via marine freight.
Ukraine [considered the ‘breadbasket of Europe’] is Clearly, Russia’s daily launches of ballistic missiles across
one of the largest agricultural producers, of mostly the continent completely disrupted air traffic in that part
grain [wheat and corn] and oil seeds. The [European of the world.
Union] is Ukraine’s main trade partner, accounting for
roughly half of its agricultural trade. Russia is also one of the significant importers of cars,
and with European car manufacturers severing their ties
As it relates to horticultural commodities, Ukraine has with Russia, this may mean that the starved car market
a bumper crop of apples this year, but they have in the U.S. may get an infusion of vehicles. I am also
mostly been shipped. In terms of U.S. horticultural watching the price of gold, as Russia is expected to start
exports to Ukraine, it’s almonds, vegetable and grain dumping some of its gold reserves to access foreign
seeds, as well as pesticides, that will be most impacted currency.
by the war.
Since Russia’s invasion of Crimea in 2014, Western
sanctions, as well as Russia’s ‘reverse sanctions,’ have
negatively impacted Russia’s economy, including the
agricultural sector. Unlike Ukraine, which is looking to
integrate itself into the global economy, Russia has
been building a ‘citadel’ economy, with a remarkably
diversified portfolio of agricultural imports, with
Turkey, Iran, Germany, the Republic of Georgia and
Moldova as some of its major suppliers of fresh
produce.
ON THE HORIZON | 05RESTAURANT INDUSTRY NEWS
somebody is employed, they have less time for at-home meal
Drive-Thru is King preparation and also have additional income to support
WWW.FOODBUSINESSNEWS.NET restaurant spend,” he said.
By: Josh Sosland
Similarly, weak trends in travel and tourism are a factor holding
back the recovery in restaurant business, Mr. Riehle said. “The
February 28, 2022 association looks to travel on tourism in leisure travel, business
Already in decline before COVID, on-premises dining in recent travel and international visitation,” he said. “The leisure traffic is
months accounted for less than a fifth of all restaurant traffic, starting to come back as the business travel is just starting to
said Hudson Riehle, senior vice president of the National come back as well.”
Restaurant Association, Washington. At the US Department of
Agriculture Outlook Forum Feb. 24, Mr. Riehle offered insights In the absence of external factors such as the emergence of
on changes in the restaurant business. He participated in a another variant, supply chain difficulties will ease in the second
panel that examined consumer eating trends and the price half of 2022, predicted Andrew Harig, vice president of tax,
outlook for foods for 2022. trade, sustainability and policy development at FMI — The Food
Industry Association, Arlington, Va. “(Barring such factors), we’ll
While an increase in food delivery “gets a lot of discussion and see supply chains start to catch up and we’ll see some of the
is very important to various operators,” it is drive-thru that has shortages ease and some of the pressure on the industry and
been the greatest beneficiary of the flight from eating within on consumers, relax a little bit,” Mr. Harig said. “That will set the
restaurants, Mr. Riehle said. stage for inflation to follow suit. It’ll lag a little behind.”
On-premises accounted for 39% of restaurant traffic in On the input cost side, Mr. Harig said challenges extend far
February 2020 and had slumped to 19% by November 2021, he beyond the realm of just ingredients. “This isn’t just in the
said, citing data from The NPD Group and the National commodity level,” he said. “This is also areas you wouldn’t
Restaurant Association. Carryout actually declined during the expect like packaging, that is an aspect we often take for
period, too, slipping to 30% in November 2021 from 32% in granted. When we get our products, it comes wrapped for food
February 2020. Drive-thru, though, accounted for 42% of traffic safety, freshness, different reasons. We often don’t think about
in November 2021, up from 26% in February 2020. Delivery why that is and how that product gets there, but packaging has
during this period rose to 9% from 3%. been a huge challenge for us.”
“Part of the reason the off-premises market has been able to do “I would say that if you look at inflation at the economy,
so well in the pandemic environment has been a greater focus generally, food is actually pretty on par with where we’re at,” he
on technology,” Mr. Riehle said. Before the pandemic, about 5% said. “People feel it more, right? Not everyone’s out there
of restaurant orders were digital. Since then, the figure has buying a TV or buying a car. Pretty much everyone’s going to
moved as high as 20%, he said. the grocery store. They tend to feel food price inflation in a way
they don’t feel other categories…"
Higher prices have not prompted consumers to “trade down” to
lower price options, Mr. Harig said. Such shifts may yet occur,
and some preliminary signs have emerged that it will, he added.
“The weekly market baskets are staying pretty consistent,” he
said. “Based on some January data we’ve seen from industry
partners who do this work, we’re starting to see changes in that
consumer market basket. There’s been a slight decrease in
chicken breast sales. It’s the ‘canary’ that lets us know we’ll see
behaviors. For January and February, as we get good data in,
we’ll see good changes in consumer behavior that reflects the
impact of inflation and people trying to adjust for it.”
Recruiting employees was the single largest challenge facing
restaurant operators in December 2021, cited by 61% of survey Food prices in aggregate will rise 2% to 3% in 2022, and 3.5% to
respondents, Mr. Riehle said. Food costs were second, at 20%. 4.5% for food away from home, said Matthew MacLachlan, an
He said hourly labor costs rose 8.6% in 2021, by far the highest economist with the Economic Research Service, USDA,
level in the last 10 years, when annual hourly earnings of Washington. “In 2021, we observed high inflation in food and
restaurant employees rose between 1.5% and 4.4% per year. mostly across food categories,” Mr. MacLachlan said. “Price
increases were largest for meat and they increased more than
Restaurant traffic will gradually recover in 2022, Mr. Riehle said. any other categories. Prices didn’t decrease for any product
Sales in 2020 were $659 billion, 27% less than had been category.” While all food at home prices were up between 3.5%
anticipated for the year. In 2021, sales were just shy of $800 and 4% in 2021, the figure was skewed by a jump in meat
billion. “For 2022, the industry will continue to improve, but it’s prices, Mr. MacLachlan said. Beef and veal were up 9.3%, and
very important to remember that 2022 will definitely be another pork was up 8.6%. The smallest increase was fresh vegetables,
year of transition for the restaurant industry,” he said. up 1.1%. Dairy was up by less than 2%, and cereals and bakery
were up by just over 2%.
Among reasons for his caution, Mr. Riehle noted nonfarm
employment is still down 3.6 million jobs from the start of the This article has been edited for content and space purposes. To
he pandemic. He described overall employment as a key metric read the entire selection, please visit www.foodbusiness.net
for predicting the outlook for restaurant sales. “The reason
that’s important for the restaurant industry is because when
QUESTIONS OR SUGGESTIONS FOR THE NEWSLETTER? EMAIL: JOANNA.HAZEL@LIPMANFAMILYFARMS.COMOM
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