Risky California climate upsets lettuce market

With greater than 90 p.c of lettuce bought within the U.S coming from California, you will need to perceive how latest fluctuation in climate patterns have an effect on the availability and pricing.

Head lettuce accounts for one of many three largest vegetable crops within the United States, surpassed solely by onions. Between April to October nearly all of manufacturing originates from the Salinas – Watsonville area of California.

Agtools Inc. BB #:355102 tracked delivery and retail worth of Iceberg lettuce during the last three years, 2019-2021 to see what patterns had been happening.

Shipping Price – 24s

Beginning in Q2, 2021 delivery costs remained comparatively flat, at instances falling beneath the earlier two yr’s degree. By the top of October 2021, we see a spike in delivery costs which ends up in a report delivery worth of $50 per carton, setting a precedent for an all-time excessive.

Retail Price – per head of lettuce

This excessive worth correlated with a leap in retail pricing immediately impacting the patron at an all time excessive of $1.60 a head of lettuce. As one of many key greens in retail and foodservice, this worth enhance has vital ramifications with each sectors.

Weather & Iceberg Lettuce Supply (2016-2021)
The Agtools climate tracker reveals best rising circumstances for Iceberg Lettuce within the Salinas – Watsonville area.

In evaluating the 2018 to 2019 provide, the 2019 season begins with greater temperatures, mirrored within the crimson shading vs. 2018 which had a gentle temperature vary of cooler climate contributing to an elevated crop yield, 17% p.c.

Following 2018, crop yield tends to say no as temperatures enhance, as proven within the climate tracker beneath. 2020 and 2021 are exhibiting a warming development with considerably extra hotter days, as mirrored within the crimson shading.

These hotter days are the least best temperatures for rising circumstances resulting in much less yield or lower in provide for Iceberg lettuce.

This reveals a correlation with greater pricing because of a lower in provide to market.