MARKET UPDATE 03.06.25

Good afternoon,

TARIFFS are back in play this week as a 25% tariff has been placed on Mexican and Canadian imports. We import or source from both countries weekly and those import figures increase as we head into Spring and the Summer. While the news of these tariffs are alarming, and will more than likely increase the price floor of numerous goods, the market will still find a way to speak for itself.

An approachable example would be LIMES. Limes out of COLOMBIA are currently imported into Miami tariff free. While the lack of a 25% tariff is appealing, the market is still a competitive environment and to put it simply, if Colombian importers can get more money for their product, they will. For example: if Mexican limes go from $25 to $31.25 per case (a 25% increase) and Colombian importers are originally selling at $23, the importers will always try to hold the best price they can and adjust to the market. In this example we would most likely see Colombian limes increase in price just below the cost of the Mexican fruit, assuming good quality and availability.

Fresh fruit and vegetable markets are incredibly active, resilient, competitive, and most importantly, dependent on Mother Nature. There will always be options and our team is built to find the best options available. We will make sure to absorb what costs we can and maintain competitive pricing and the best quality while doing so. Fresh fruits and vegetables have an incredibly short supply chain, so although we have not seen changes due to these tariffs yet, we expect to see them soon. As these changes arise, we will make sure to be as detailed as possible, providing all of the information and options available to you.

March has arrived and with it, the discussion of TRANSITION has begun! Every Spring, production of core items like LETTUCE, ROMAINE, BROCCOLI, CELERY, and CAULIFLOWER, transition from Arizona up to Northern California. The starts and stops of the season almost always result in some higher markets and difficult decisions but there is always a hope of a solid overlap in supplies. This season, BROCCOLI shelf life has been abbreviated late in the MX/AZ season. The good news is, spring schedules are out and it looks like there will be early harvesting of BROCCOLI in Salinas California as soon as March 17th.

LETTUCE and ROMAINE will follow a slightly different schedule, beginning with a pit stop in Huron around the end of March, and the final transition to Salinas coming in early to mid April. As the season progresses in Yuma and the crops get older, shelf life will see an impact. The question is how well these late season crops hold up while we await the beginnings of Spring in Salinas.

More as it happens,

Parker Tannehill