ProduceIQ Index climbs ahead of Thanksgiving week

Strong Thanksgiving pull and weather woes push average produce price up +11 percent over the previous week.

The ProduceIQ index is well above average for week #47, but below last year’s record-breaking prices. It’s a reminder that while the holiday rush reliably heats things up, this year’s mix of cold snaps and tight supply is giving the market an extra push—adding a little extra sizzle to the countdown toward Thursday’s feast.

ProduceIQ Index:  $1.27/pound, +11.4 percent over prior week

Week #47, ending Nov 22^nd

Blue Book has teamed with ProduceIQ BB #:368175 to bring the ProduceIQ Index to its readers. The index provides a produce industry price benchmark using 40 top commodities to provide data for decision making.

Turning first to green beans, prices rise sharply as the weather and the Thanksgiving pull intensify demand. Effects from the record-breaking cold front that impacted growers throughout the Southeast two weeks ago still linger, even though the warmth has returned.

Average prices have doubled during the past week but will likely fall quickly as post-holiday demand slows and new growing regions in Florida ramp up production. In other words, green beans may be causing some pre-Thursday heartburn now, but they should calm down once the casseroles clear.

Green Bean prices skyrocket, though typically crash quickly afterwards

Meanwhile, in the tomato category, plum-type tomato supply is in trouble. Average prices are up +38 percent over the previous week, well above average for week #47. Like green beans, cold in the Southeast has hampered production. However, markets seem poised to shake off the chill. Growers in Florida and Mexico are ramping up production and should be able to supply some mild relief.

Romas enter volatile season, exceeding $25 for large in the East

On the berry front, last week’s rain in California may be the (straw)berry that breaks the camel’s back. Some growers saw over 5 inches of rain in a few days. Any product that wasn’t lost is likely very wet and will have reduced shelf life due to moisture-related quality issues. Growers in Central Mexico are ramping up production, and volume is increasing in Florida.

Florida Strawberry prices, $36, begin at record highs before volume is available

Rounding things out with celery, average prices are up +39 percent from the previous week, maintaining a ten-year high. Similar to strawberry markets, heavy rain has curtailed production in California, leaving a significant supply gap. Growers in Yuma are forecasted to increase output in 2–3 weeks, but until then, supply will remain very lean.

Celery prices continue to accelerate, remaining at record highs

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ProduceIQ Index

The ProduceIQ Index is the fresh produce industry’s only shipping point price index. It represents the industry-wide price per pound at the location of packing for domestic produce and at the port of U.S. entry for imported produce. 

ProduceIQ uses 40 top commodities to represent the industry. The Index weights each commodity dynamically, by season, as a function of the weekly 5-year rolling average Sales. Sales are calculated using the USDA’s Agricultural Marketing Service for movement and price data. The Index serves as a fair benchmark for industry price performance.