Washington, DC, USA
August 27, 2009

With a record-large processing tomato crop anticipated and assuming yields for other processing vegetables at least match the average of the past 3 years, output of the five leading processing vegetables could approach the 1999 record high of 19.2 million short tons— about a tenth above last year’s strong production. As a result, some easing of processed-vegetable wholesale prices is anticipated this fall. In July, wholesale prices for canned vegetables (including juices) were running 13 percent above a year ago, while frozen vegetables were selling for 14 percent more.

This summer (largely July-September), area for harvest of 12 selected fresh-market vegetables (including nonstorage bulb onions) is forecast to decline 1 percent from a year ago to 282,800 acres. Increased area for snap beans, carrots, and sweet corn was more than offset by reductions for head lettuce, cauliflower, and summer nonstorage onions. Assuming average weather, shipping-point prices for fresh-market vegetables (which rose 8 percent last summer), are currently expected to average 2 to 7 percent below a year earlier during the 2009 summer quarter.

The 2009 fall potato crop is expected to remain near the 376 million hundredweight (cwt) of a year earlier. Although supplies will likely tighten going into next year, prices received by U.S. potato growers are expected to average below a year earlier during the 2009/10 season. In 2008/09, the preliminary nominal dollar marketing year average price for all potatoes was a record high $9.46 per cwt—up 26 percent from the prior year. 
 
Despite prospects for reduced dry bean supplies in the year ahead, continued sluggish foodservice demand, potentially slower export movement, and a general easing of field crop prices will likely place downward pressure on dry bean prices in 2010. Assuming favorable harvest weather, prices for most classes of dry beans are expected to average below the very strong levels of 2008/09.

The weak economy, sluggish foodservice demand, and overall lower discretionary spending has led to declining harvested acreage and stocks of fresh and dried herbs and spices. Economic Research Service estimates that 80,000 acres of herbs and spices will be grown in 2008, a 27-percent decline from the previous year.

Full report: http://www.ers.usda.gov/Publications/VGS/2009/08Aug/VGS334.pdf

Website: http://www.ers.usda.gov/

Published: August 31, 2009