Two items that normalized last week have taken another jump up this week. Avocado and tomato prices are inflated right now. We received some interesting information regarding the price hikes from our friends at Greenberg Fruit. Concerning avocados, they write:
“We are seeing ongoing issues with the supply of avocados crossing the border from Mexico. These issues are the result of continued closures of several packing sheds in the region. These closures are the result of a politically-driven decision made by the board of elected growers in Mexico. Due to the nature of the root cause of these closures, domestic marketing companies have no control over supply and no way to influence the re-opening of these facilities. As a result, we are anticipating a steady increase in FOB prices at the border over the next several weeks, despite the Minister of Agriculture for Mexico stepping in to attempt to resolve these political issues. We don’t have any hard information about a timetable for negotiation or resolution of these issues and have been apprised of rumors of organized shutdowns occurring this weekend, which will further tighten supply”.
For tomatoes, cold weather in Central Mexico has halted production, resulting in a gap in supply. With nothing currently coming out of the region, prices per case have jumped as much as twenty dollars. They forecast at least two weeks before any relief.
We will continue to update as more information becomes available.
