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Saturday, February 12, 2011
Mexico loses 80-100% of crops to freeze, US prices to skyrocket

Houston - The cold weather experienced across much of the US in early February made its way deep into Mexico and early reports estimate 80-100 percent crop losses which are having an immediate impact on prices at US grocery stores with more volatility to come.

Wholesale food suppliers have already sent notices to supermarket retailers describing the produce losses in Mexico and the impact shoppers can expect. Sysco sent out a release(pdf) this week stating the early February freeze reached as far south as Los Mochis and south of Culiacan, both located in the state of Sinaloa, along the Gulf of California. The freezing temperatures were the worst the region has seen since 1957.

According to Sysco’s notice sent out this week:

“The early reports are still coming in but most are showing losses of crops in the range of 80 to 100%. Even shade house product was hit by the extremely cold temps. It will take 7-10 days to have a clearer picture frome growers and field supervisors, but these growing regions haven’t had cold like this in over half a century.”

At this time of year, Mexico is a major supplier to the US and Canada for green beans, cucumbers, squash, eggplant, asparagus, peppers and round and Roma tomatoes. Compounding the problem is the freezing cold that hit Florida in December and January.
Sysco continued with its dire report:

“Florida normally is a major supplier for these items as well but they have already been struck with severe freeze damage in December and January and up until now have had to purchase product out of Mexico to fill their commitments, that is no longer an option.”

Read more.

Posted on 02/12 at 12:22 AM
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