Supply Chain Quick Hit Produce Up-Date
- All Lettuce products are way up in price! Extreme market conditions for iceberg and romaine are causing shortages across the supply chain.
- Consider Spring Mix or Spinach as an alternative.
- Mushrooms are up in price. Expect shortages especially for cremini and oyster through the end of the year.
- Broccoli remains high in price.
- Bananas are climbing in price this month.
- Tomatoes Remain High.
In Depth Recommendations and Insights Week of November 8th, 2021
- Scallop Market Alert:
In what seems to be a trend across all facets of our industry, pricing for raw materials continues to climb at a drastic pace.
With the demand for scallops still being high and “days at sea” being limited, companies are stock piling product in an attempt to carry one’s customers through the winter. The fear of running out is the driving force behind these increases.
There is also talk of the number of days at sea and quotas being cut more in 2022. A lot of the smaller boats tried taking advantage of the higher prices and have already maximized their days at sea.
- Poultry Market Alert:
Urner Barry reports that frozen chicken wing inventory is at the lowest levels since 2012. Total poultry cold storage stocks are 13% lower than last year.
The boneless breast, tender and wing markets continued to decline. Analysts are now forecasting continued price decreases in breasts, tenders and wings through December.
- Plant Based Meats:
The food industry is experiencing the largest ever offering of plant-based meats across categories, including chicken, beef, pork and seafood. All of this innovation has led to increased investment, which has allowed for economies of scale and lowered production costs, like Impossible Foods’ price drop of up to 20% at the foodservice distributor level.
Try their Veggie Burger or Sausage Patty.
- Holiday Protein Recommendation:
Poultry will be in short supply during the holiday season. If you have not already purchased your holiday poultry, now would be a great time to do that. If storage is an issue, ask your distributor to reserve it for you and ship it.
Click Below to Connect Directly with a Supply Chain Expert from the Buyers Edge Platform Today
Supply Chain Quick Hit Produce Up-Date
- Avocados: Last week’s harvest ended strong despite the holidays. Jumbo size fruit remains scarce and is placing heavier demand on 48’s, while 60’s and smaller continue to be in good supply.
- Berries: Rain affected strawberries and other fruit. Southern California was damaged and delayed. Most fruit is now coming in from Mexico.
- Carrots: Demand is outpacing supplies and capacity for larger bulk packs.
- Iceberg, Leaf & Romaine Lettuce: Yields declined through November. Quality will be fair to poor and pricing is high.
- Mushrooms: Labor freight and supply challenges are expected to last for the remainder of the year.
- Green, Yellow and Red Peppers: Green Pepper supplies are good while red and yellow are short.
- Roma Tomatoes: Roma supplies are low with strong demand.
In Depth Recommendations and Insights Week of November 22nd, 2021
- Coffee Market Alert:
Coffee prices doubled in late July, reaching heights not seen since 2014. Coffee prices are elevated at approx. $1.90 per pound. We anticipate the prices will climb even higher over the next months.
A sustained drought followed by two frosts in July affected Brazil’s coffee output. The Arabica bean has soared to more than $2.00 per pound. This followed by pandemic supply chain issues combines to make prices soar even higher and availability challenging.
“This is unprecedented,” said Alexis Rubinstein, the managing editor of Coffee & Cocoa for commodities brokerage StoneX Group. “It’s never been this perfect storm before. It’s usually just been a supply-and-demand scenario.
“We’ve never been dealing with a supply-and-demand issue on top of a logistics issue, on top of labor issues, on top of a global pandemic.”
While it’s difficult to determine the size of the crop loss in Brazil, estimates vary between 2 million and 6 million fewer bags of coffee. That’s about 12% of the output from the world’s largest producer of Arabica, the bean used for most coffee sold around the world. Lower supplies almost always mean higher prices.
- Pork Market Alert:
Ribs are in tight supply. Back ribs are in high demand with tight supplies.
Bacon continues to be at capacity and in tight supply.
Butts are still showing indications of weakening, but they are a good value for money at the grocery store when compared to other proteins.
Demand for loins has slowed in the next week, resulting in a significant drop in prices.
- Poultry Market Alert:
Butterball temporarily suspended several Butterball turkey breast items due to labor shortages. Currently the expected recovery date is January 2022. Additionally, due to labor shortages, whole birds and turkey ham are expected to see shortages.
The weather has been ideal for bird growth across most of the country, allowing the birds to flock in large numbers. Wings of all sizes are now more readily available. Tenders are being released to the open market, and the price is falling. The market for random breasts is weakening. The cost of dark meat is decreasing.
- Beef Market Alert:
The beef cattle industry is continuing to see labor intensive item shortages within CAB grade, Ox1 Strips, PLD Tri Trips, Sirloin Flap, Flanks, Chuck Flap, Peeled Knuckles and Chuck Tenders.
As buyers prepare for holiday demand in both foodservice and retail, middles continue to exhibit price strength and tighter supply in the market.
- Key Stats:
The price of beef and veal increased 20.1% between October 2020 and October 2021, recent data from the Bureau of Labor Statistics shows. It’s far outpacing the increasing price of pork, which is 14.1% more expensive than it was at this time last year.
“All meat prices are up, but beef prices are up disproportionately higher than the rest of the protein prices,” says Arun Sundaram, an analyst at Wall Street research firm CFRA.
- Beef and veal: 1%
- Pork: 1%
- Chicken: 8%
- Fresh fish and seafood: 11%
- Eggs: 11.6%
Click Below to Connect Directly with a Supply Chain Expert from the Buyers Edge Platform Today
Supply Chain Quick Hit Produce Up-Date
- All Lettuce products are way up in price! Extreme market conditions for iceberg and romaine are causing shortages across the supply chain.
- Consider Spring Mix or Spinach as an alternative.
- Mushrooms are up in price. Expect shortages especially for cremini and oyster through the end of the year.
- Broccoli remains high in price.
- Bananas are climbing in price this month.
- Tomatoes Remain High.
In Depth Recommendations and Insights Week of November 15th, 2021
- Scallop Market Alert:
In what seems to be a trend across all facets of our industry, pricing for raw materials continues to climb at a drastic pace.
With the demand for scallops still being high and “days at sea” being limited, companies are stock piling product in an attempt to carry one’s customers through the winter. The fear of running out is the driving force behind these increases.
There is also talk of the number of days at sea and quotas being cut more in 2022. A lot of the smaller boats tried taking advantage of the higher prices and have already maximized their days at sea.
- Poultry Market Alert:
Urner Barry reports that frozen chicken wing inventory is at the lowest levels since 2012. Total poultry cold storage stocks are 13% lower than last year.
The boneless breast, tender and wing markets continued to decline. Analysts are now forecasting continued price decreases in breasts, tenders and wings through December.
- Plant Based Meats:
The food industry is experiencing the largest ever offering of plant-based meats across categories, including chicken, beef, pork and seafood. All of this innovation has led to increased investment, which has allowed for economies of scale and lowered production costs, like Impossible Foods’ price drop of up to 20% at the foodservice distributor level.
Try their Veggie Burger or Sausage Patty.
- Poultry Market Alert:
Urner Barry reports that frozen chicken wing inventory is at the lowest levels since 2012. Total poultry cold storage stocks are 13% lower than last year.
The boneless breast, tender and wing markets continued to decline. Analysts are now forecasting continued price decreases in breasts, tenders and wings through December.
- Holiday Protein Recommendation:
Poultry will be in short supply during the holiday season. If you have not already purchased your holiday poultry, now would be a great time to do that. If storage is an issue, ask your distributor to reserve it for you and ship it.
Click Below to Connect Directly with the Source1 Procurement Team Today
Supply Chain Quick Hit Produce Up-Date
- All Lettuce products are way up in price! Extreme market conditions for iceberg and romaine are causing shortages across the supply chain.
- Consider Spring Mix or Spinach as an alternative.
- Mushrooms are up in price. Expect shortages especially for cremini and oyster through the end of the year.
- Broccoli remains high in price.
- Bananas are climbing in price this month.
- Tomatoes Remain High.
In Depth Recommendations and Insights Week of November 15th, 2021
- Scallop Market Alert:
In what seems to be a trend across all facets of our industry, pricing for raw materials continues to climb at a drastic pace.
With the demand for scallops still being high and “days at sea” being limited, companies are stock piling product in an attempt to carry one’s customers through the winter. The fear of running out is the driving force behind these increases.
There is also talk of the number of days at sea and quotas being cut more in 2022. A lot of the smaller boats tried taking advantage of the higher prices and have already maximized their days at sea.
- Poultry Market Alert:
Urner Barry reports that frozen chicken wing inventory is at the lowest levels since 2012. Total poultry cold storage stocks are 13% lower than last year.
The boneless breast, tender and wing markets continued to decline. Analysts are now forecasting continued price decreases in breasts, tenders and wings through December.
- Plant Based Meats:
The food industry is experiencing the largest ever offering of plant-based meats across categories, including chicken, beef, pork and seafood. All of this innovation has led to increased investment, which has allowed for economies of scale and lowered production costs, like Impossible Foods’ price drop of up to 20% at the foodservice distributor level.
Try their Veggie Burger or Sausage Patty.
- Poultry Market Alert:
Urner Barry reports that frozen chicken wing inventory is at the lowest levels since 2012. Total poultry cold storage stocks are 13% lower than last year.
The boneless breast, tender and wing markets continued to decline. Analysts are now forecasting continued price decreases in breasts, tenders and wings through December.
- Holiday Protein Recommendation:
Poultry will be in short supply during the holiday season. If you have not already purchased your holiday poultry, now would be a great time to do that. If storage is an issue, ask your distributor to reserve it for you and ship it.