Scorching Heat Hits Avocado Groves SOCIETY PATRON MEMBERS Damaging Heat Descended on California’S Avocado-Growing Regions Last Weekend
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This week in avocados Sept. 10, 2020 CALIFORNIA AVOCADO Scorching heat hits avocado groves SOCIETY PATRON MEMBERS Damaging heat descended on California’s avocado-growing regions last weekend. Temperaturess reached 115 in groves ranging from San Agricola Pampa Baja SAC Luis Obispo to San Diego, frying new growth, sunburning avo skin and B & M Avocados, LLC dropping fruit. We followed up with a few sources who had this to say: Brokaw Nursery, LLC CA Avocado Commission Cal Flavor “At Saticoy we peaked at 104.7, but it was only over 104 for Calavo Growers, Inc. Camposol Fresh USA Inc. about an hour. It stayed at 101 most of the day. Since we had been Castle Smith Enterprises, LLC prepping for heat and had water available, we ended up with very Chandler Ranch Company little damage. I don’t think it will have a meaningful impact on 2021 Del Monte Fresh Produce N.A., Inc. for us. Moderate yields on Lamb-Hass, light on Hass. We have Del Rey Avocado Company a few acres in between Santa Paula and Fillmore where we had 6 ECO Farms Trading Operations, hours around 115. I’d guess 20% drop on the Hass there.” LLC Ever-Bloom, Inc. Farm Credit West Cont. on page 2 Fresh Directions International US HASS VOLUMES Freska Produce International, LLC (Week ending Sept. 6) Fruit Growers Supply Company Last week’s vol- 2020 Volume to 2019 Volume to Gooding Ranch LLC Origin ume Date Date Grangetto’s Ag Supply Henry Avocado Corporation California 7,587,618 321,487,277 200,841,984 Hidden Valley Pump Systems, Inc. Total Imports 44,239,593 1,606,370,184 1,606,635,011 Hidden Valley Ranch Index Fresh Inc. Chile 0 668,265 11,788,648 Keyes Packaging Group Mexico 39,925,491 1,425,930,120 1,412,745,620 Leavens Ranch LLC Le Chi Lan Peru 4,314,102 177,951,799 181,700,743 Limoneira Company Colombia 0 1,820,000 400,000 McDaniel Fruit Company Mission Produce Total Volume 51,827,211 1,926,894,124 1,808,045,189 Peruvian Avocado Commission Rincon Farms In This Edition S&S Grove Mgmt. Serv., Inc. Sierra Pacific Farms, Inc. Field Quotes............................... 2 Simpatica Retail Prices ............................... 2 Stonehill Produce Inc. Shipping Point Prices.................. 3 Viru S.A. Harvest & Import Volumes ........ 3 West Pak Avocado, Inc. Bin Count ................................... 3 Westfalia Fruit Americas Projections ................................. 4 Wollam GroveMgmt., Inc. This & That ............................. 4-5 World Avocado News .............4-5 Weather ..................................... 6 1 Cont. from page 1 Fallbrook grower: “So far no drop but a couple more days to get “It was hot, 115 ish, through. The cooler weather I think helped that came right after the in the Carpinteria foothills. heat. My newly planted trees actually recovered rather nicely. I can hardly My trees on Gobernador tell they were stressed aside from a few withered leaves. My large trees Canyon got pretty torched. did ok with not much damage other than burned fruit that was exposed Our family grove up High- to sun. My medium size trees that are about eight years old got the most way 150 ended up about the damage. A lot of leaf burn & fruit burn and I’m expecting drop there. Of same. All my new growth course with leaf burn comes future defoliation which of course burns the burnt. Not too much fruit wood and more fruit. I think for the most part I’m ok. If I get no fruit drop yet.” drop I expect probably around five percent burned fruit maybe less.” Price Points CONVENTIONAL HASS ORGANIC HASS Field Quotes Field Quotes Last Week Last Week Sept. 9 (Sept. 2) Price Change Sept. 9 (Sept. 2) Price Change Size Low High Low High Low High Size Low High Low High Low High 32 $1.12 $1.20 $1.12 $1.30 $- $(0.10) 32 $1.34 $1.58 $1.34 $1.58 $- $- 36 $1.12 $1.20 $1.12 $1.30 $- $(0.10) 36 $1.34 $1.58 $1.34 $1.58 $- $- 40 $0.96 $1.20 $0.96 $1.24 $- $(0.04) 40 $1.28 $1.58 $1.34 $1.58 $(0.06) $- 48 $0.96 $1.20 $0.96 $1.24 $- $(0.04) 48 $1.70 $2.10 $1.80 $2.10 $(0.10) $- 60 $0.72 $0.98 $0.80 $1.08 $(0.08) $(0.10) 60 $1.50 $1.74 $1.58 $1.74 $(0.08) $- 70 $0.52 $0.64 $0.56 $0.68 $(0.04) $(0.04) 70 $1.32 $1.38 $1.20 $1.38 $0.12 $- 84 $0.44 $0.56 $0.44 $0.56 $- $- 84 $0.52 $0.68 $0.52 $0.68 $- $- Source: Handler Range The last week saw some reduction to the low end quotes The high end of price quotes has fallen almost across the on mid-sized avocados. If you’re harvesting organics, you board, though 32s, 36s, and 60s were hardest hit, with could be fetching anywhere from $1.70 to $2.10 a pound 10-cent losses. Even though Peru tapered to under 5 million for 48s. That’s a big field quote spread! We find the price pounds last week, there is still a lot of fruit in the market. plunge between 48s and 40s to be interesting. Even when Mexico made up for Peru’s reduction by sending 40 million you adjust for the greater weight of 40s, growers are losing pounds last week. Inventories have remained level, but with money harvesting the larger size. For example, using the high Labor Day behind us, demand should be dropping. end quotes above, you’d make about $1K on 1K pounds of 10-ounce fruits (40s) and about $1.2K on 1K pounds of 9-ounce fruits (48s). That’s a bummer. HASS RETAIL PRICES The average retail price of a Two-Year Comparison $4.00 conventional avocado came up a few $3.50 cents in the last two weeks (from $1.06 $3.00 to $1.10), while the average retail $2.50 $2.00 price of an organic avocado fell quite $1.50 a bit (from $2.10 to $1.56). Our $1.00 Source: USDA Source: local grocery store had two large avos $0.50 $- for $3 and two extra-large avos for $5 3-Jan. 5-Jun 3-Jul 17-Jul 31-Jul recently. Not sure who’s paying an extra 8-Nov. 6-Dec.20-Dec. 17-Jan31-Jan14-Feb28-Feb13-Mar27-Mar10-Apr24-Apr6-May22-May 19-Jun 30-Aug.13-Sept.27-Sept.11-Oct.25-Oct. 22-Nov. 14-Aug.28-Aug. buck a piece for a couple more ounces of Conventional (ave. per fruit) Current Year Conventional (ave. per fruit) Prior Year Organic (ave. per fruit) Current Year Organic (ave. per fruit) Prior Year avocado. 2 By the Numbers HASS IMPORTS & CALIF. HARVEST VOLUMES USDA SHIPPING POINT* 80 REPORT Mexico Crossings through Texas 70 Sept. 9, 2020 60 50 Size This week Last Week Mostly low - Mostly low - 40 Mostly high Mostly high 30 32 $40.25-40.25 $40.25-42.25 20 POUNDS (IN MILLIONS) 10 36 $40.25-40.25 $40.25-42.25 0 9/1/19 1/5/20 2/2/20 2/9/20 3/1/20 3/8/20 4/5/20 5/3/20 6/7/20 7/5/20 8/2/20 8/9/20 9/6/20 9//8/19 9/15/19 9/22/19 9/29/19 10/6/19 11/3/19 12/1/19 12/8/19 1/12/20 1/19/20 1/26/20 2/16/20 2/23/20 3/15/20 3/22/20 3/29/20 4/12/20 4/19/20 4/26/20 5/10/20 5/17/20 5/24/20 5/31/20 6/14/20 6/21/20 6/28/20 7/12/20 7/19/20 7/26/20 8/16/20 8/23/20 8/30/20 $34.25-35.25 $36.25-37.25 10/13/19 10/20/19 10/27/19 11/10/19 11/17/19 11/24/19 12/15/19 12/22/19 12/29/19 40 CALIFORNIA CHILE COLOMBIA MEXICO PERU Source (this chart and below): AMRIC & HAB $28.25-30.25 $29.25-31.25 48 Peru’s short season in the US is coming to a rapid close, as indicated by the disappearing purple above. California, in contrast, has been chugging along at 7-8 60 $23.25-25.25 $24.25-25.25 million pounds a week for a couple months now. Mexico, of course, is the avocado 70 $20.25-21.25 $20.25-21.25 market contributor that always captures the largest share, and that percentage is growing now that Peru and California are bringing their seasons to a close. Peru is 84 $18.25-20.25 $18.25-20.25 expected to be out of the market by October while California continues to produce fruit through October. Mid-sized Mexican fruit lost $1-2 a carton over the last week. It’s not a BIN COUNT (pounds) A trickle of fruit is still dramatic drop, but an indicator of some coming in from the South, Today Yesterday Last Week Season to market softening. There’s no slowing Variety 9/10 9/9 9/3 Date and it looks like the season projected for Mexican supply to the US will wrap up at under 130 in the next several weeks. If demand Hass (North) 1,260,080 1,131,050 1,057,538 195,111,443 million pounds for that drops with the close of the summer Hass (South) 12,712 18,964 85,008 128,824,118 region.