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Crop Freeze: Prices to Rise Dramatically
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The following was apparently just sent out by Sysco Food Services (One of Largest in U.S.)

ALL OF OUR GROWERS HAVE INVOKED THE ACT OF GOD CLAUSE ON OUR CONTRACTS 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 AVAILABLITITY, 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-TOEARLY-
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.