by Sixstrings » Sun 13 Feb 2011, 07:37:48
$this->bbcode_second_pass_quote('', 'F')ood inflation driven by freezing weather in Florida during December and in Mexico during February, is hitting the US supermarkets in the coming day’s. Sysco sent out an alert that announced an “Act of God”, to address their contracted supply issues.
The cold of the Superbowl weekend in Texas, has had a more lasting impact than on just the game plans for lots of travelers. The deep cold sank into the produce fields of northern Mexico, destroying fresh produce crops. This is the biggest page 16 story, about to hit a headline, that you have seen in a while. Your restaurants will be low on fresh produces for weeks. They will have to raise prices significantly or cut the produce out of the menu.
(snip)
This event will push up the price of produce in the US for the next few months. The bigger question is if the US wheat crop was damaged by the cold weather before the heavy snow fell to blanket it.http://www.zerohedge.com/article/sysco-declares-force-majeure-raises-grocery-pricesLetter form Sysco foods to its customers:
$this->bbcode_second_pass_quote('', 'A')LL OF
OUR GROWERS HAVE INVOKED THE ACT OF GOD CLAUSE ON OUR CONTRACTS (Force majuere) DUE TO THE FOLLOWING RELEASE. WE WILL BE CONTACTING YOU PERSONALLY TO REVIEW HOW THIS WILL AFFECT OUR CONTRACTED ITEMS WITH YOU GOING FORWARD.
THE
DEVASTATING FREEZE IN MEXICO IS WORST FREEZE IN OVER 50 YEARS...
THE EXTREME FREEZING TEMPERATURES HIT A VERY BROAD SECTION OF MAJOR GROWING REGIONS IN MEXICO, FROM HERMOSILLO IN THE NORTH ALL THE WAY SOUTH TO LOS MOCHIS AND EVEN SOUTH OF CULIACAN.
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 FROM GROWERS AND FIELD SUPERVISORS, BUT THESE GROWING REGIONS HAVEN'T HAD COLD LIKE THIS IN OVER A HALF CENTURY.
THIS TIME OF YEAR, MEXICO SUPPLIES A SIGNIFICANT PERCENT OF NORTH AMERICA'S ROW CROP VEGETABLES SUCH AS: GREEN BEANS, EGGPLANT, CUCUMBERS, SQUASH, PEPPERS, ASPARAGUS, AND ROUND AND ROMA TOMATOES.
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 AND OPTION. WITH THE SERIES OF WEATHER DISASTERS THAT HAS OCCURRED IN BOTH OF THESE MAJOR GROWING AREAS WE WILL EXPERIENCE
IMMEDIATE VOLATILE PRICES, EXPECTED LIMITED AVAILABILITY, AND MEDIOCRE QUALITY AT BEST.
THIS WILL NOT ONLY HAVE AN IMMEDIATE IMPACT ON SUPPLIES, BUT BECAUSE OF VERY STRONG BLOSSOM DROPS,
THIS WILL ALSO IMPACT SUPPLIES 30 – 60 DAYS FROM NOW. SOME GROWERS ARE MEETING WITH THEIR BOARDS RIGHT NOW TO DETERMINE WHETHER THEY SHOULD IMMEDIATELY RE-PLANT, HOPING FOR A HARVEST BY LATE-MARCH-TO-EARLY-APRIL, OR WHETHER THEY SHOULD DISC THE FIELDS UNDER AND WAIT FOR ANOTHER SEASON.
We are doing everything we can with our growers to minimize the
effect of this disaster on you. With the unprecedented magnitude
of this event we wanted to immediately make you aware of the
conditions. We will continue to send out communications as our
people on the ground report back to us. We thank you and we
appreciate your understanding during this time.
Sysco Intermountain
http://www.iceagenow.com/Mexico_crop_loss_80_to_100_percent.htmPDF of the flier sent out to customers:
http://www.stevequayle.com/News.alert/11_Cosmic/110209.Sysco.Mexico.Freeze.pdf Ok farm experts.. how serious is this? Just high prices, or real shortage?