LIBERTY FRUIT CO., INC. WEEKLY MARKET REVIEW January 6, 2011 WEATHER UPDATE Clear skies have returned to Western growing areas, accompanied by cold overnight temperatures. A warming trend is in the late-week forecast, with highs in the 60s and lows in the 40s in the Desert Southwest; the primary districts for the winter row crop vegetable harvest. Highs will be in the 50s & 60s, with lows in the 30s & 40s for the Central and Southern San Joaquin Valley (citrus and carrots). A cooling trend is in the forecast for the strawberry growing district in Central Florida, with late-week highs in the 60s and lows in the 40s. Rain on Monday. TRANSPORTATION Freight rates are gradually easing following the upward surge that occurred during the New Year holiday week. Drivers are in the process of returning to normal schedules. CALIFORNIA LETTUCE & MIXED VEGETABLES Iceberg Lettuce: Availability is tightening. Prices are moderate, although trending higher. Cold weather is causing daily harvest delays and decreased production volume. Head size is decreasing to medium. 30s are once again available. Epidermal peeling continues to affect quality causing black discoloration. Romaine: Prices are moderate. Quality is poor due to discoloration caused by heavy blistering and peeling. This trend will continue. Prices are strengthening. Romaine Hearts: Prices are moderate. Availability has improved compared to the recent period of limited supply. Green Leaf: Price levels have increased to moderate. Wide range in quality, mostly fair, also affected by epidermal peel. Broccoli (bunched): Quality is poor-to-fair in Central California due to rain damage. Good in the desert regions of California and Arizona, also Mexico. Prices are moderate-to high. Broccoli (crowns): Availability has tightened. Cold weather in the desert is causing growth to slow. Growers now back on normal harvest schedules. Prices are moderate-to-high, soon to reach high. Cauliflower: Sharp reversal from recent oversupply. Prices are now moderate-tohigh. Quality is good. Celery: Prices are high. Quality is fair-to-good depending on growing area. Continued quality issues with rain-damaged celery in Oxnard, causing low yields. Better quality for new crop celery in the desert districts. Florida production increasing toward seasonal averages. Carrots: Prices extreme. Quality is good for jumbo and cello carrots. Yields greatly reduced due to rain damaged fields. Growers unable to harvest many of the carrots due mud. Price strength will continue through early March. Harvest transition from Bakersfield to the Imperial Valley will occur two weeks earlier than normal. Asparagus: Prices are moderate-to-high. Quality excellent for new crop Mexican asparagus. Full production by late week of January 17th. Peruvian asparagus is available on the East coast through late January. Parsley (curly and Italian): Improving availability with more favorable weather conditions. Prices are moderate-to-high. Quality is good. Spinach (bunched): Prices are moderate-to-high. Quality is good-to-excellent. Kale (green): Improving availability with more favorable weather conditions. Prices are moderate-to-high. Quality is good. Kale (flowering): Steady availability. Prices are moderate-to-high. Cilantro: Quality is fair-to-good. Normal availability is expected by next week. Prices are moderate-to-high; still recovering from wet-weather growing conditions. Green Onions: Continued tight availability due to cold weather and holiday labor shortage in Mexico. Prices are high. Quality is good. Leeks: Continued tight availability due to cold weather and holiday labor shortage in Mexico. Prices are high. Quality is good. Green Cabbage: Improved availability for desert growers. Prices are moderate. Red Cabbage: Continued light supplies and high prices. Bok Choy: Adequate supplies. Prices are moderate-to-high. Napa: Light supplies. High prices. Snow peas: Peak harvest season in Guatemala. Prices are low. Quality is good, also available from Peru. Spring Mix: Supplies have tightened due to reduced yields; the result of recent freezing temperatures in the desert districts. Prices are moderate. Quality is good. Spinach (baby): Adequate availability and good quality. Prices are moderate. Arugula: Adequate availability at present with the possibility of tighter supplies next week. Quality is good. Prices are moderate. BERRIES Strawberries: Continued tight market conditions. Below average production in Central Mexico. New crop Baja California not expected until late January. Weather conditions have been favorable to Florida growers, and rain early next week is not expected to have any significant effect. Current high-to-extreme prices will begin to ease sometime next week. Quality is good in all areas. Raspberries: Tight availability. Extreme prices. Blackberries: Good availability for Mexican product. Prices are moderate. Quality is good. Blueberries: Chilean will be in peak production through early February. Prices are moderate-to-high depending on pack size. Quality is excellent. CALIFORNIA-ARIZONA CITRUS Navel Oranges: Good availability and steady market conditions. Prices are moderate. Quality is good. Lemons: The market has rebounded in reaction to recent cold weather and holiday-shortened harvest schedules. Prices are low-to-moderate. Quality is excellent. Limes: Supplies are extremely tight. Price levels have advanced to extreme. No relief expected in the intermediate term. Grapefruit: Good availability on Desert Rio Red variety in California & Arizona and Texas Rio Star in Texas. Prices are moderate for California-Arizona grapefruit, low for Texas grapefruit. Cara Cara Oranges: New crop fruit available in good supply from California and Arizona in early January depending on weather conditions. Moro Oranges: Good availability by early January. Quality is improving. Satsuma Mandarins: Essentially finished. Prices are high. Pummelos: Good availability on smaller sizes (12s, 14s & 18s). Prices are moderate. Fairchild Tangerines: Adequate supplies in Southern California and Arizona desert growing areas. Prices are moderate-to-high. Clementines: Harvest season is winding down. Prices are high. A gap is expected prior to the beginning of the Murcott harvest. Minneola Tangelos: Adequate supplies in Southern California and Arizona desert growing areas. Prices are moderate. Size profile has shifted toward smaller sizes (100s & 125s). Pineapple: Good availability. Prices are moderate. Volume price discounts available for gold pineapples from Mexico. Bananas: Cold, wet weather conditions in Central America have caused prices to firm. The anticipated oversupply situation for 2011 is no longer in effect. MELONS Cantaloupes: Continued tight supplies and high prices. Large sizes are unavailable from Guatemala and Costa Rica. Honduras cantaloupes available mid-next week. Quality is good. Honeydews: Honeydews finished in Nogales. Adequate supplies of Central American honeydews in the East. Prices are moderate-to-high. Quality is excellent. Watermelons: High prices for limited supplies of new crop from Southern Mexico. WASHINGTON APPLES AND PEARS Red Delicious: Good availability. Prices are moderate. Golden Delicious: Good availability. Prices are moderate. Bosc Pears: Good availability. Prices are moderate-to-high. D’Anjou Pears: Good availability. Prices are moderate-to-high. GRAPES & SOFT FRUIT Red Seedless Grapes: Chilean Flames now available in Philadelphia and Los Angeles; price levels remain extreme. The California season is finished. We will not see reasonable prices until mid January, at the earliest. Green Seedless Grapes: New crop Chilean Sugarone and Perlette varieties are available in Philadelphia and Los Angeles. Prices are at the extreme. Kiwi: Good supplies available of California kiwi. Prices are moderate. AVOCADOS Hass: Primarily Mexican Hass supplemented by Chilean Hass. Prices are high. Tight availability and high prices will continue through mid-February. The size of the Hass crop in Mexico is 50 percent compared to 2009-2010. Limited volume on Chilean Hass. New crop California harvest available in meaningful volume by mid-February. EASTERN & WESTERN VEGETABLES Green Bell Peppers: Availability has tightened in Nogales and Florida. Prices are moderate-to-high, and trending higher. Quality is good. Red Bell Peppers: Plentiful supplies in Nogales. Wide range in quality and price. Prices are moderate. Same for yellow bells. Cucumbers: Good availability in Nogales. Prices are low-to-moderate with a wide range in quality and price. Green Beans: Steady availability in Nogales. Prices are moderate-to-high. Continued tight supplies in Florida. Prices are extreme. Eggplant: Adequate supply. Prices are moderate in Nogales. Quality is excellent. Squash: o Zucchini: Oversupply in Nogales. Prices are low. o Yellow: Oversupply in Nogales. Prices are low. o Acorn: Excellent quality. Prices are low-to-moderate. o Butternut: Excellent quality. Prices are low-to-moderate. o Grey: Excellent quality. Prices are low-to-moderate. o Kabocha: Excellent quality. Prices are moderate. o Spaghetti: Excellent quality. Prices are low-to-moderate. TOMATOES Round: Prices are moderate in Florida and Nogales with the potential for higher prices next week, as Florida shippers have worked through inventories that were accumulated prior to the freeze that occurred in late December. Production in Nogales is heavy to large sizes (4x5 & 4x5). Roma: Market is firm in Nogales. Prices are moderate. A much higher percentage of Romas are planted by Mexican growers compared to Florida tomato growers. Cherry: Steady availability. Prices are moderate in Florida and Nogales. Grape: Steady availability. Prices are moderate in Florida and Nogales. POTATOES (IDAHO) Russets: Continued tight availability on larger sizes. All sizes were in extremely tight supply early in the week due to extreme cold weather conditions in Idaho. Prices will trend gradually higher as storage inventories decline. Quality is good and prices moderate-to-high, depending on the size and pack. ONIONS (NORTHWEST) Yellow: The market is stable, with steady demand for current inventory among the various packers. Light harvesting activity will begin in Mexico in late January. By early February, the Mexican harvest will be in full swing; however prices are expected to remain at current moderate levels. Red: Prices are low on medium size; moderate on large. White: Prices are moderate for all sizes.