PRO* ACT The Sour ce

AUAI

The Source

December 10, 2012 © 2012 PRO*ACT,

LLC LLC

T H I N G S Y O U

S H O U L D

K N O W :

COMMODITY ALERT:

Stem strawberries are very limited due

to small sizing currently in California

Industry wide problem with quality

and supplies of strawberries

shipping out of California. Lowest production point of the year currently

Offshore fruit still very large

Domestic green and red grapes finishing up over the next few

weeks

Small Granny-Smith & small Gala apples are

extremely short

Weather: Tim Lynch

Sunny with near seasonal temperatures will be the norm in Southern California and the Southwestern desert growing regions into Wednesday. A series of Pacific storm systems enter the mix late Wednesday into the weekend. The first and largest system moves into California Wednesday, bringing rain into Southern California with a 50% chance of rain forecast for the desert locals. Cold air behind this system will bring the first chance of frost and freezing temperatures to the desert growing regions this season. Forecast models differ on the track of the remaining systems however cooler temperatures and breezy conditions are expected as these systems are likely to track north and miss the desert regions.

Freight: Mike McIntire

Trucks in California have loosened up slightly and should

be steady this week. Trucks in the Northwest and Idaho

remain tight and will most likely remain that way

throughout the fall season due to Christmas trees. Crude

oil remained steady and is currently $89.31 per barrel.

The national average remained steady last week at 4.027

per gallon and should trend steady when it comes out

later today.

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Commodity Updates

APPLES/PEARS John Tole New York is still packing Empires, Golden Delicious, Red Delicious, and McIntosh. They also have limited numbers of Courtland’s and Red Romes. All New York varieties are large except the Macs which are small. Washington Reds are peaking on size 88/100’s with higher color. The availability of small lower grade reds is light. Golden Delicious are also heavy to the 88/100 sizes and the Washington extra-fancy grade. The Golden’s are producing more of the lower grades. Granny-Smiths are still heavy to the higher grades and size 72/80’s. Lower grade Granny availability is low and the market is stronger. Small Granny-smiths may be the tightest item out there right now. Gala’s are producing more of the Washington extra-fancy grade and are peaking on 80’s through 100’s. Gala demand is strong in Washington right now. Washington Fuji’s are heavy to 64/72/80’s and are producing more of the Washington extra-fancy grade. Pink-Lady’s, Cameo’s, Jonagolds, Braeburns, Romes, Jazz, and other varietals are all still available. Washington Bartletts are still producing mostly 110 and larger fruit and are heavier to US#1 grade. Washington D’Anjou's are heavier to the larger sizes and the US#1 grade as well. Bosc and red pears are still available. ASPARAGUS Gabe Romero/Mike Pacheco This market is higher on all sizes to start the week. Jumbo sizing continues to be unavailable in Yuma, but can be purchased in LA if desired. Standard sizing is the most readily available. There is a pricing gap again in Yuma and Los Angeles by three-four dollars. Supplies will be light to moderate for the week. The holiday pull is going strong with this commodity. AVOCADO Tim Kelley Mexico continues with good volume. California is done with this season’s crop. We are starting to see some limited supplies of Chilean fruit starting to hit the market. Mexican fruit remains the major supplier and remains aggressively priced. BELL PEPPERS Western Bells: Jaime Contreras Green bell market is very unsettled. Southern California is currently shipping green bells from Thermal and Coachella. Warm weather in

Commodity Quality Market

Apples Excellent Higher

Asparagus Good Higher

Avocado (Mexican) Excellent Steady

Avocado (California)

Bell Peppers (Western)

Good Steady

Bell Pepper (Eastern) Good Steady

Berries: Strawberries Fair Higher

Berries: Raspberries Good Steady

Berries: Blackberries Fair Steady

Berries: Blueberries Good Higher

Broccoli Good Steady

Carrots Good Steady

Cauliflower Fair Steady

Celery Good Steady

Citrus: Lemons Good Steady

Citrus: Oranges Good Steady

Cucumbers (Western) Good Steady

Cucumbers (Eastern) Good Steady

Eggplant Good Steady

Red Grapes Good Steady

Green Onions Fair Steady

Lettuce: Leaf Good Steady

Lettuce: Iceberg Good Steady

Melons: Cantaloupe Good Steady

Melons: Honeydew Good Steady

Onions Excellent Higher

Pears Good Higher

Potatoes Excellent Lower

Squash (Western) Good Steady

Squash (Eastern) Good Steady

Stone Fruit n/a n/a

Tomatoes (Western) Good Steady

Tomatoes (Eastern) Fair Steady

Watermelon Good Steady

Commodities at a glance…

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Commodity Updates continued

Z

California ought to help increase some production. Increasing crossings through Nogales; sizing will be more toward large fruit; supplies are more than adequate. Colored Red bell market is steady but still very light supplies. Growers are anticipating slightly lighter production as older districts are playing out and cold weather passes through. Coachella/Thermal California have started. Extreme Demand exceeds market. We anticipate open field colored bells to start crossing through Nogales first weeks of

December. Gold bells are settling but, they continue demand exceeds supplies. Eastern Bells: Janine Baird Florida is starting to ramp up their pepper volume as both south and central Florida are working pepper. Quality has been excellent. Market should soften through the week. BERRIES Mike Gorczyca Strawberries: I think we hit the lowest point of supplies out of California, and with other new areas (Florida and Mexico) coming on board we should see supplies slowly increase from this point moving forward as long as Mother Nature is nice to us. The forecast is calling sight chance of rain Wednesday/Thursday of this week in California and then again on Sunday. Quality is fair at best coming out of California. Quality issues to be aware of are water soak, decay, mold, bruising, white shoulders and green tips to name a few. Only order what you need, as this fruit will not hold up more than a day or so after arrival. Florida and Mexico supplies continue to increase as each week moves on. Quality is being reported as good with a few fair lots showing up. The forecast is calling for showers Tuesday/Wednesday which could hurt supplies for a day or two. Market is high and firm out of all areas. A few new areas are starting to break ground in California which is Oceanside, Irvine and Coachella. Supplies in these areas will not be up to speed till after the first of the year. Most shippers are switching to 8/1# berries and subbing for other packs in order to extend their ability to cover orders; as well as protect the quality of the fruit. Raspberries: Light demand and supplies is keeping this market steady but once demand picks up watch for this market to firm up. Quality is being reported as good to fair.

Blackberries: Supplies are plentiful from most shippers. We currently have a wide range in price and expect that to continue for the near term. Blueberries: Supplies have tightened up for all shippers as Argentina has finished harvest for the season. Chile’s first shipments have just started to arrive with limited numbers. Availability will increase as each week move on. Chile is scheduled to peak with supplies the middle of January. Quality is being reported as good. The main pack size is 6oz with a few 4.4oz being packed. BROCCOLI Gabe Romero/Mike Pacheco This market is steady. Shippers continue to have strong supplies and deals are being offered in Salinas, Santa Maria, Yuma or Phoenix. This is a good time to promote this commodity. Overall, the quality continues to be good with no major issues to report. CARROTS Tim Kelley California carrot supplies are beginning to lighten. Demand is much better as other growing regions finish for the season. Market is firm. CAULIFLOWER Gabe Romero/Mike Pacheco This market is steady. Supplies have become stronger in Yuma and Santa Maria. Salinas will have production if desired. Demand has fallen off compared to the previous week. There are still a few complaints on brown spotting being seen upon arrivals so please be aware. Supplies should be good for the week. CELERY Gabe Romero/Mike Pacheco This market is steady to start the week. The smaller sizes, 36s and smaller show the lightest availability. The supplies on 24 counts are light in availability as well with most suppliers, but there is availability. Salinas, Santa Maria, and Oxnard are the areas of production for this commodity. Production is expected to begin lightly in Yuma by the middle of the week. CITRUS Tim Kelley Lemons: The Desert crop volume is good. Size continues to be heavy on the smaller fruit (140 and smaller). Quality is good and improved availability on the larger fruit is

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beginning to show with some shippers. Oranges: The Navel crop volume is good, but rains and morning fog has tighten supplies a bit this week. Gas time is down to 48 hours or less and should be moving down from there over the next few weeks. Fruit is testing well and color is improving with the cooler nighttime temps that growing areas are now getting. Fruit is currently packing on heavy to the Fancy grade and peaking on the smaller sizes. Limes: Supplies are fair with some quality issues showing up due to past rains in the growing regions in Mexico. The marked is firm. CUCUMBERS Western Cucumber: Jaime Contreras Market is on a slight upward trend; production has increased as well as new acreage coming online but, some older fields are grading down or wrapping up. Cucumbers are crossing through Nogales and are good quality. Supplies may be light for the next few days due to cool weather. Eastern Cucumbers: Janine Baird South Florida now has all of the volume on cucumbers, with Georgia being completely finished and Plant City dwindling down. The off shore deal is due to start up in another 7-10 days. In the meantime, the market should remain steady. EGGPLANT Western Eggplant: Jaime Contreras Market is settling increasing supplies crossing through Nogales; excellent quality. Warm weather ought to keep supplies adequate and steady. Eastern Eggplant: Janine Baird Georgia is finishing up with their eggplant for the season and Florida’s cooled weather has brought about a very slow start to their eggplant season. As Florida’s volume increases this week, we should see the market decline steadily. GRAPES: Amy Grolnick The market is steady to higher on grapes as most domestic shippers have finished harvest of both red and green grapes and are shipping storage fruit. Color continues to be a problem on domestic fruit. Greens continue to be limited. Brazilian green have started on the east coast with good quality but still very pricey. Peruvian red and green will have started with

supplies on the east coast and limited supplies on the west. Black Seedless with good supplies and red Globe are limited. GREEN ONIONS Gabe Romero/Mike Pacheco This market is steady to start the week. Suppliers are steady in production from the Mexico region. We have a split market currently as the pencil onions seem to be readily available while the larger sizes are tighter. LEAF LETTUCE Gabe Romero/Mike Pacheco The market is steady with most suppliers. Production has finished in Salinas. The quality in the desert on romaine Hearts continues to have issues on bleaching. The hearts are not cupping well either. The product is very green. Sizes and weights are reported to be good out of Yuma on carton romaine, as well as green and red leaf. LETTUCE Gabe Romero/Mike Pacheco This market is flat with all suppliers. Deals are being offered on large volume type orders. The weights on the palletized lettuce continue to be steady at 41-44 #s. Demand is on the light side. Brown butts and pinking as been lightly seen upon arrivals. Yuma continues to be the main growing area for this commodity now. MELONS: Amy Grolnick Cantaloupe: The desert domestic fruit is pretty cleaned up for the season. Offshore fruit is coming in with better volume, but fruit is still large. Pompano area with good availability on the larger sizes. There is limited availability on the west coast, the port strike is now over but it will still take some time to get cleaned up. Honeydew: Good availability of Mexican honeydew coming in with shippers looking to move the fruit. The desert is finished up with the domestic fruit. Offshore has started on the east coast with mostly large fruit available. There is some light availability of large fruit coming into the west coast. ONIONS John Tole Both Washington and Idaho are steady to slightly higher on yellows and the market remains strong. The demand has been light so stay ahead on yellows and reds because when the demand picks up we will have an even stronger market. The shippers are still bullish because of low storage numbers & export

Commodity Updates continued

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Commodity Updates continued

demand. Washington yellows are still producing mostly jumbos and mediums. Reds are also steady to slightly higher in both areas. Most shippers also have lower red inventories so they remain bullish on them also. Whites are steady but strong in both areas. The quality has been good in both areas and all colors. POTATOES John Tole The Idaho market is steady to slightly lower on all packs and sizes. Demand remains sluggish for both Norkotahs and Burbanks. Most Idaho packers are running Burbanks this week but several will have norkotahs next week. 40-70’s are still the bulk of the Idaho carton production while 80’s and smaller remain limited. Expect the carton availability to drop because of the lack of consumer-bag business in Idaho. The Washington market is steady on all sizes and they remain heavier to the larger counts. Colorado is also producing more of the larger counts and is more limited on 80’s and smaller. The Colorado market has adjusted down on the larger counts and up on the smaller. The russet quality has been good to excellent in all areas. Stockton, California is still packing whites and golds but they are nearing the end of the season. Both varieties are still heavier to A-size. Washington, Wisconsin, and Minnesota continue packing red & gold potatoes and they are all mostly steady. All areas have better availability on A-size. Idaho reds and golds are also both peaking on A-size and the availability is good. B-size is limited in Idaho for both varieties. The colored potato quality has been fairly good to excellent in all areas. SQUASH Western Squash: Jaime Contreras Market continues unsettled on both Italian and Yellow S/N. Supplies are improving as new acreage begins harvesting but, some current growing areas are experiencing un-anticipated gaps and/or quality issues. California continues with light production from Coachella, Ca. light numbers expected. Eastern Squash: Janine Baird South Florida is now into good volume on squash, bringing the market down. Quality has been good.

STONE FRUIT Amy Grolnick Domestic fruit has finished for the season. There are both Hichiya and Fuyu persimmons and pomegranates available with good availability and quality. There is some off shore apricots and cherries that are being flown in, but they are very pricey. TOMATOES Aaron Aliotti Western: Baja is plentiful with large and medium sized rounds, but supply is short on larger fruit as a result of some tropical storms that occurred in August and September. December prices are expected to have variance as the market reacts to daily availability. A few grape tomatoes and very limited amounts of rounds are starting to show up in Nogales, yet it is still 2-3 weeks until significant volume is expected. Eastern: Cool weather South of Central Florida has slowed tomato production during recent weeks. Temperatures are allowing for heavier and larger sized rounds of good quality. With the coming of warmer weather, production is expected to increase through the end of the year. Roma tomatoes are expected to grow in volume also as temperatures begin to climb. Grape tomatoes remain abundant in good supply. VALUE ADDED Gabe Romero/Mike Pacheco

The supplies on lettuce are strong. The Romaine supplies have good availability. There have been some issues on romaine breaking down due to very green color. Bleaching currently has been an issue with most suppliers on this commodity. Broccoli supplies are strong. The cauliflower supplies are good and expected to be steady throughout the week.

WATERMELON: Jaime Contreras Market is showing signs of upward trend in FOBs. Demand exceeds on s/less watermelon. We anticipate lightening supplies as Northern growing districts play out and wait for Jalisco districts to start. Most availability will be in cartons. Availability on seeded watermelon is sporadic. Seeded W/melon crossing through Nogales, supplies are improving as other growers start harvesting.