The pepper market in the United States is currently fragmented, with supplies coming from both Southeast America and Mexico. “Because of the constant weather problems in the Southeast, supply there is very affected by weather,” says Paul J. Maglio of Maglio Companies about green pepper supply. Especially in parts of Florida that are currently freezing (21-11 version). That freeze follows a hurricane 2 weeks ago and Hurricane Ian last month. At the same time, Mexico is not yet in peak season and will only arrive in early December when they start shipping large quantities.
As for colored peppers, red, yellow and orange peppers are not always available. “Some supply comes from Canada, but it’s definitely difficult to get colored peppers,” says Maglio.
At the same time, demand is low. “People are experiencing their first real low temperatures, and what do they do? They pull back a little bit so that the low supply matches the low demand very well.”
2002 vs 2021
It’s a very different picture than a year ago, when there were fewer weather problems but Covid was a major factor. “It’s a strange market. It’s the first season where farmers can see if they’ve planted more or less than they expected. So they kept more, tried to move it, or said they didn’t have any. : Come back in the spring,” he says.
This year, the downturn in the economy may affect planting. “So the demand that they didn’t really see coming was that this year they were hit with a little less vegetation and some weather issues,” Maglio notes. “I think the market is 20-30% higher than last year.
But looking ahead, both supply and demand will improve. Magleo notes that as Mexico enters its peak season, the overall supply will be better. “I predict that demand will stagnate in the coming month. After that, after the New Year, we won’t see a big increase until people have a good intention to eat healthy again. The increase in supply will outstrip demand. Prices will be normal in the first quarter of next year.
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