Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

California Storms Have Farmers Rushing to Avoid Crop Shortfall

Published 01/27/2023, 01:26 PM
Updated 01/27/2023, 01:54 PM
&copy Bloomberg. Farmers work on an irrigation system in Salinas on Jan. 13. Photographer: Josh Edelson/Bloomberg

(Bloomberg) -- California farmers are facing costly damages from weeks of severe storms that may trigger more expensive US fruits and vegetables in a time of massive food inflation.

“The numbers are going to be somewhere in the hundreds of millions and perhaps in the billions,” Dave Puglia, head of the trade group Western Growers, said in a phone interview, adding that almost all of those damage costs will be on California’s Central Coast.

Some growers on that region — known as the “Salad Bowl of America” — can’t even start cleaning up because of fields thick with mud and debris. While three weeks of unrelenting rain brought urgently needed water to drought-stricken California, the subsequent flooding will delay planting in a state where agriculture is a $50 billion industry.

“It’s safe to say there will be a gap in production sometime this spring when those crops would have been coming out the field,” said Puglia, whose group represents producers responsible for more than half the fresh fruit, vegetables and tree nuts in the US. “That will reduce supply and inevitably lead to some higher prices on the shelf.”

Related: California storm damage as much as $7 billion, Moody’s estimates

The scenario will leave some farmers to figure out how to supply national restaurant chains and food distributors that typically would be buying up their lettuce, berries, broccoli and other produce in just a couple months.

Flooding is prompting Church Brothers Farms to plant extra acres and linger in the southern desert region of California and Arizona longer than normal to avoid a supply shortfall. Growers normally move back up north around March because of excessively hot desert temperatures.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

“I have to sell my customers something,” said Ernst van Eeghen of Church Brothers Farms. “These restaurant chains can’t be out of lettuce suddenly, so I have to find ways to supply them.”

©2023 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.