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Red Book Marketing

December 11, 2009

Sponsored by:

Fresh Produce Association of the Americas
and
Quincy Bag Co.

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FPAA

Nogales Vegetables

Market Snapshot*

The U.S. Department of Agriculture was reporting the following prices on West Mexico vegetables through Nogales, Ariz.:

Cucumbers: 1 1/9 bushel cartons, small, $6.95-8.95; medium, $10.95-12.95; large, mostly $8.95.

Green bell peppers: 1 1/9 bushel cartons, small, mostly $5.95; medium, $5.95-7.95; large, mostly $7.95; extra-large, $7.95-9.95.

Squash: 1 1/9 bushel cartons, zucchini, large, $4.95-6.95; yellow straightneck, $4.95-6.95; acorn, medium and large, $10.85-12.95.

Greenhouse tomatoes: One-layer flats, vine-ripe, size 22s, mostly $20.95; size 35s, mostly $16.95-18.95; size 52s, $12.95-14.95.

* Prices from the USDA's Fruit & Vegetable Market News, Dec. 8.

The Shipping Scene

West Mexico's fall/winter produce deal is off to a strong start, with shippers in Nogales, Ariz., reporting that quality is looking good on a wide range of products.

Mexico is the No. 1 provider of fruits and vegetables to North America during the winter months, according to the Nogales-based Fresh Produce Association of the Americas, and more than one-third of that product passes through the Nogales port of entry.

Sandia Distributors Inc. already is finishing up its Hermosillo squash and watermelon programs in the northern part of the country, said sales manager Bill Spence. The company is kicking off its Sinaloa and Jalisco programs that consist of zucchini, yellow straightneck, gray and hard shell squash.

The northern program was a success from quality and production standpoints, but markets were fairly weak, Spence said. He's hopeful that prices will improve as the holidays approach and the deal moves southward.

"The Sinaloa crop looks very promising," he said. "Markets have perked up a little bit, and there seems to be more activity. We're anticipating a good deal."

Consumers already seem to be picking up items for holiday parties and get-togethers, and that should continue through year's end, he said.

Overall, growing conditions have been favorable in Sinaloa, he said, and sizing has been good on the company's squash and melons.

Santa Paula, Calif.-based Calavo Growers Inc. had to wait an extra week for its open-field mature-green tomato crop in Culiacan to ripen, said JJ Badillo, director of diversified products.

Hot weather caused bloom drop on the early tomatoes, so shipments are not expected to get under way until next week. That's also when the company's shade house and greenhouse programs with two-layer trays of vine-ripes and one-layer trays of beefsteak tomatoes should get under way.

Volume should increase the week of Dec. 21, and Badillo expects to see strong volume through the company's Nogales location by the week of Dec. 28.

Badillo was in the Culiacan growing area last week and said, "Quality looks outstanding."

He expects large sizes and promotable volume, with prices starting out fairly high in December and early January, and then tapering off in mid- to late January.

The Giumarra Cos. is shipping mostly vegetables this week, including green and colored bell peppers and cucumbers, said Nick Rendon, sales manager.

"Right now, the quality is looking outstanding," he said.

The company is sourcing from Culiacan and Guaymas and should have about the same volume as last year.

Sizing has been good on peppers so far, with plenty of jumbo and extra-large sizes available. Cucumbers are looking nice, too.

"It's all been No. 1 stuff," he said.

Giumarra will ship from West Mexico through May, Rendon said.

As Nogales continues to play a vital role in moving winter produce into the U.S. and Canada, the Fresh Produce Association of the Americas plays an equally vital role in helping distributors move their product safely and efficiently.

Representatives of the association were in Washington, D.C., this week participating in food safety discussions, said Amy Adams, public affairs director.

The organization also is working to have the weight limit for trucks raised to 97,000 pounds in the U.S. trade zone near the border so trucks can cross fully loaded. The change would increase security, reduce congestion, decrease emissions and enhance safety by reducing the number of trucks crossing the border, according to the association.

FPAA recently concluded its "wildly successful" convention and annual trade meetings, in which the Food and Drug Administration, U.S. Customs and Border Protection and U.S. Department of Agriculture participated, Adams said.

(By Tom Burfield, Western correspondent for The Packer. The Packer and Red Book Credit Services are part of food360º, a division of Vance Publishing Corp., Lincolnshire, Ill.)

Resources

 

PACA regional offices:

Tucson, Arizona Regional Office:

Business Hours: 8 a.m. - 4:30 p.m. Mountain Standard Time (November - March); Pacific Standard Time (April - October)

Jerry W. Taylor, Regional Director
Email: jerry.taylor@usda.gov
Patrick P. Romero, Assistant Regional Director
Email: patrick.romero@usda.gov
Telephone: 800-495-7222 Ext. #5
520-879-4361 (local)
Fax: 520-670-4798

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