Looking ahead at the fall crop, potatoes and sweet potatoes could see increased acreage while onions are likely to see no change in acreage. "I would say that the sweet potato acreage will be up between six and nine percent while potato acreage will be up probably four or five percent. Onion acreage is going to hold pretty much steady and carrot acreage remains to be seen, but I imagine we'll have a good supply of carrots too," says Harris S. Cutler of Race-West Company, Inc.
This follows what Cutler describes as a balanced supply-demand situation for these four core commodities it carries. "We currently have a very, very reasonable pricing structure on all of our main commodities," he says. "Potatoes are in a promotable situation. There's excellent quality with lots of supply. New crops are coming on that look healthy and it looks like continued good volume. Same thing with onions–they are promotable and prices are low."
Carrots are similar, even following recent weather that could have affected the carrot deal out of Mexico. However sweet potatoes are in a different position following 2024 producing the shortest sweet potato crop in years. "Though, sweet potato growers are being remarkably patient and calm so the markets are steady and still very reasonable. The management of this crop by those in charge is remarkable," says Cutler.
Fair pricing on commodities
All of this is leaving pricing steady on these commodities and conducive to movement with sweet potatoes, onions, potatoes, and carrots at .99 cents-$1.49/lb. or on wholesale, from $14-$23/ 40-50 lb. carton. "Every once in a while in produce, we get a great balance between supply and demand. We are in that situation right now." He adds that given the tight supply, sweet potato growers could have pushed the price up. However, then they risk people not eating sweet potatoes due to high prices and that's a difficult position to bring consumers back from.
After all, at a time when consumers are increasingly concerned about high prices, these commodities are proving to be a value buy. "At the farm level, growers are getting back just enough. At retail, the margins are good and the velocity is very good. At the consumer level, consumers are happy because there are no crazy prices," says Cutler.
For more information:
Harris S. Cutler
Race-West Company, Inc.
Tel: +1 (570) 586-5700
[email protected]
https://www.race-west.com/