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Neighborhood news

Growers hope for a sweet turnaround

By HELEN ANNE TRAVIS
Published March 2, 2007

Tony Chavez, farm foreman and grower, plans to pay off credit card debt he incurred earlier in the season. Grower Maurice Turgeau will put the money toward his mortgage.

What's driving the healthy bottom line for Hillsborough County strawberry growers this year? Wholesale prices that were higher than normal throughout February because of low production, high demand and cold weather in California.

Robust February sales may have saved Florida growers and shippers from what some say was shaping up to be a tough year.

"We were headed for a train wreck in our market," said Gary Wishnatzki, a Plant City produce broker and president of Wishnatzki Farms.

An abnormally warm winter slowed Florida's strawberry production. When they finally arrived, the berries flooded the market and shippers got as little as $2 to $3 a flat in January. Typically, January prices average $12 per flat.

Florida is the only place warm enough to grow winter strawberries. California berries typically take over the market in the spring. But a January freeze wiped out much of California's crop, delaying that state's entry to the strawberry market and giving Florida farmers some breathing room.

Local growers are hoping the California fruit won't appear until late this month, extending Florida berries' presence by almost 30 days.

"The retailers have on their calendar that they always switch to California around this time of year," said Shawn Crocker, executive director of the Florida Strawberry Growers Association. "But when California says, 'We don't have berries,' the retailers will come back to Florida."

Who benefits the most from high wholesale prices? It depends on whom you ask.

"In most cases the price, high or low, would have the greatest impact on the grower," Wishnatzki said.

Said Chavez: "The one who profits the most is always the broker. That's why they call them the broker. They make you broke."

"Grocery stores benefit, not us," said Lee Ann Coleman of Hinton Farms.

Representatives of Wal-Mart, Publix, and Sweet Bay Supermarkets could not be reached for comment.

During a season, a strawberry grower can invest as much as $20,000 per acre. Yet when wholesale prices are high, not all of the extra money goes into the grower's pocket.

Turgeau explained farm economics: If a flat of strawberries sells at wholesale for $10.90, the broker takes $1.90 for precooling and handling. Then there's a 10 percent sales commission to the handler, and the cost of supplies and labor. After that, the grower gets $2 to $3 - before expenses for the land, tractors, chemicals and taxes.

When California's berries do enter the market, the timing and volume should bring down the price of Florida strawberries.

The success of March's market will determine profits for the season, and Florida growers have yet to pick half of their total volume.

"The jury is still out on this season," Wishnatzki said.

Helen Anne Travis can be reached at 661-2439 or htravis@sptimes.com.

[Last modified March 1, 2007, 07:29:50]