MARKET REPORT - MAR. 11TH, 2016 – MANY THINGS TO TALK ABOUT!
Many things to talk about!But first, I wanted to pass this along because I think it’s important – then we’ll talk about bizarre weather and how it’s affecting some crops.A couple of weeks ago 450 of us, attending the Certified Organic Association Annual Conference in Vernon, BC, had the pleasure to spend some time with Dr. Vandana Shiva, one of the most outspoken and foremost advocates of organic agriculture on the planet. If you haven't heard of her - do the google thing - she's been taking on Monsanto, GMO, and conventional agriculture on our behalf for a very long time.
But here's the thing - as much as we all think we know so much about organics, especially at an organic farmers conference (where she was really preaching to the choir,) she had remarkable clarity and put a couple of points into perspective in a way no one ever has before, at least for me - and it’s a question you get asked all the time; "why is organic food so expensive?" So, when asked, (as do I,) you start to defend the higher production costs, the more expensive inputs, and compost, and weeding labour, and higher losses from insects etc. We all do it - get right on the defensive. However, as Dr. Shiva pointed out - those are the wrong answers. The right one is that Organic is NOT expensive, it's just that conventional is too cheap!What she was saying, of course, is that agri-business is heavily subsidized - like the cotton industry in her native India, the dairy industry in America, the cattle industry here, and the list goes on, except that's not entirely what she meant. Sure, many large food production categories depend on huge government subsidies to be competitive, in Canada, in the States, and Europe; but that isn't it either – and conventional fruit and vegetable producers here and in the US are not subsidized.What she was referring to is that conventional farmers, knowingly, or unwittingly, do not care for the soil, do not care for the water and unlike Las Vegas, what happens on their farm doesn't stay on the farm. Conventional agriculture has been responsible for the 40% loss of all the topsoil across the farmland of North America disappearing into the wind, rivers, lakes and oceans from excessive tilling and much decreased organic matter retention in the soil. Conventional agriculture uses chemical fertilizers that are thousands of times more potent than carbon dioxide as greenhouse gases and are responsible for 40% of climate change. What she meant was that a 2,000 head dairy farm in the Fraser Valley, or a feedlot in Alberta will not, and cannot contain the impact all the manure they are producing on the groundwater under those farms, which could also be the drinking water source for hundreds of homes or farms around them. What she meant was that there is a water crisis in many countries, but it takes the water required to float a navel destroyer to produce one cow in a feedlot - 750 gallons per pound.I knew this stuff but I had never put it together that it isn't a tax subsidy or grant or big fat cheque in the mail that is the subsidy for conventional agriculture, it is the cumulative impact of farms producing in an unsustainable manner that is a subsidy, because we all, one way or another, directly or indirectly, are paying for their environmental impact, as will my kids and grandkids.So, the next time someone asks YOU why Organic is so damn expensive, you might find similar words to explain why Conventional is too damn cheap. And thanks to Dr. Shiva for helping us all find new words and ways to explain why we do what we do.Now to the weather – first stop, California. I have given up trying to predict how weather is going to affect production – the forecasts short and long term have been inaccurate – big storms expected to rain out strawberries, or high heat expected to bring on cold weather crops – well, they haven’t materialized, or have done less damage, while other places have been hit with unexpected weather. But one thing for sure – it has rained a lot recently in the Central Valley, and that has affected citrus harvests. There are two primary reasons for this - we asked one of our citrus producers, and this was his response.Mud—Rain = mud, and unfortunately big trucks that haul fruit from the field to the packing can’t drive in mud. They are too heavy (especially when loaded), and consequently they get stuck easily. I know this seems like a trite reason not to harvest, but it’s actually a challenge we face often. Additionally, citrus trees are often planted on hills so as to raise them up into warmer air. While this helps with frost mitigation, trying to drive a truck/forklift on a muddy slope is at best challenging, and even dangerous.Fruit Damage—More importantly than the logistical issues we face in the field are the quality issues that occur when you harvest fruit that is wet. Compared to other commodities, citrus is very porous/cellular, both in the skin and internally. These cells contain both oils and water, and they are the reason you get that nice “citrus smell” when you cut an orange or lemon open. However they also act like a sponge; when it rains, the fruit will soak up excess water and its cells will become bloated. If you pick the fruit when it is in this bloated state, the cells will rupture. It’s like trying to hold a water balloon that’s overfilled. Even pressure as light as someone’s hand pulling the fruit from the tree will cause this to happen. The damage occurs on a microscopic level, so initially all appears to be well. However a couple of days post-harvest, the fruit will show severe bruising and possibly early decay. Even fog/high humidity can saturate the fruit to the point where it can’t be touchedEthical Production—Just a final point. It really is irresponsible to harvest citrus in wet conditions, however some marketers will do in anyway if it is a strong market. You can make a quick/easy sale when you have fruit and no one else does due to weather. However in the end this isn’t acting in the best interests of either the customer or the grower. We pride ourselves in not being that kind of company.Now, here’s a few pictures: While I was writing this, it was 14C and the wind was blowing 110Kmh. The same storm system generated snow in central Mexico – our guy down there, Rafael, who some of you have met, took this lovely picture of agave cactus (grown for tequila) just a few miles from his house.This is a church just outside San Miguel de Allende – where Canadian snowbirds spend winter to get away from the snow.
Guadalajara actually had measurable snowfall on Wednesday night. This was forecast a week ago, and the only forecast that was actually right – and it was the 2nd time it has snowed there in history, and the first time it’s accumulated.And many hours drive away, the same storm spawned massive thunderstorms. That ain’t snow, its hail, which pummeled many of the avocado growing regions. Some of our growers, especially in Periban, were hit hard – we don’t know how much damage there is, but it will be substantial. It even hailed out one of our grapefruit producers on the coast, where they have never had hail.And finally – no pictures, but an internal newsletter for Mango producers in Mexico quoted:“Last week reports of record volume predictions were rolling around the industry. Reports of record bloom in peak season areas like Sinaloa were almost unbelievable. But just as we get comfortable with the reports the dormant El Niño speaks up and does so with a voice of strong winds, heavy rains and even hail throughout the coastal region near Mazatlán.”Of course, most of the Mexican mango crop for April through June comes from the same area as avocado production, so we don’t know yet how much of the crop has been damaged, just a few weeks before first harvest!There is also a lot of news about the ongoing California drought that I will share next week – and you say, “why is there is still a drought?” Well, despite El Nino, California is still having a drier winter than normal, which has actually made the drought worse, with over 55% of the state in extreme conditions, and more and more producers selling land, putting land into non-irrigated fallow land, or moving production to Mexico.Finally: There is going to be an apple shortage – demand is exceeding storage supply and NZ and Argentina fruit is a long ways away. Red Delicious may be a strong option in a few weeks. Most US shippers have sent off their last Braeburns, Granny and Pinks, and are trying to smooth out the transition by raising prices to levels we have never seen, $5 increases a week. Nothing we can do, even a stronger Canadian dollar isn’t helping.