California Cold Wave: Freeze Heats Up Produce Prices: Grocery Shoppers Will Likely See Big Jumps in the Cost of Citrus and Other Fresh Foods.

By John Dobberstein, Tulsa World, Okla.

Jan. 18–Video: Cold Snap Could Freeze Out Farmers at Market

Oklahoma shoppers may face skyrocketing prices for oranges, lemons and other produce next week because of icy weather that heavily damaged California farms.

Citrus growers are coping with nearly $1 billion in losses following four consecutive nights of subfreezing temperatures in California, the nation’s No. 1 producer of fresh citrus.

The state grows 86 percent of lemons and 21 percent of oranges sold in the U.S., according to the California Farm Bureau.

Markon Cooperative, a produce-purchasing and marketing co-op in Salinas, Calif., said rising prices and short supplies of avocados, strawberries, broccoli, cauliflower, celery, cucumbers, lettuce and potatoes are also expected.

“If you want guacamole for the Super Bowl, you might want to buy it now,” said Gerald Bagwell, owner of Tulsa Produce Brokerage Co. Inc.

“In the Temecula Valley, a prime area for avocados . . . it got down to 18 degrees, and the trees are splitting,” he said.

Navel oranges were selling at about 99 cents a pound at the Reasor’s grocery chain this week, but that could jump to about $1.49 a pound quickly, said Mark Faust, director of produce operations.

The reason, he said, is that the cost to buy oranges doubled Tuesday for Reasor’s.

“We were sitting at $21 to $22 a box; now we’re being quoted at $38 to $42,” Faust said Wednesday.

Some Tulsa fruit distributors are already bracing for higher prices.

Any fruit coming in from California for the next six months will probably be affected, said Russell Hickson, sales manager for Tulsa Fruit Co., a wholesale distributor of fruits and vegetables in eastern Oklahoma and Arkansas.

“Prices, at this point, I can’t even give a quote on that,” Hickson said. “Right now, we’re trying to pull the pieces together and see what stance we’ll have to take on it.”

Hickson said some citrus and strawberries from Florida, Texas and Mexico could augment the nation’s supply.

Darren Kimbrough, general manager of Thomas Brothers Produce in Tulsa, didn’t want to speculate how high prices would go for fresh citrus.

“I think the growers are still evaluating what the damage is, and how significant it is, so I think we’ll understand better in another week or so,” he said.

Bagwell said the navel oranges he buys went from $10 for the 40-pound box to $32 this week, and supplies of lemons will be tight for the rest of the year.

“Generally, there’s stuff out there, but they’re being really cautious about what they ship, and they’re putting disclaimers on the price quotes that they’re not responsible for freeze damage,” said Bagwell, who brokers fruit shipments from California and some other states to distributors in the Tulsa area.

“You just have to know where to go to get it,” he said. “And then you’ll pay a price for it.”

Sonja Tuitele, spokeswoman for Wild Oats Markets, said prices haven’t gone up in stores yet for citrus and other affected produce because growers are still assessing the damage.

Wild Oats, which has a store in Tulsa, gets its organic citrus not only from California, but Texas and Mexico.

“We anticipate price increases for everyone. We do think (shoppers) will start to see that next week,” Tuitele said. “Right now we think the product will be available — it just might be at a higher price.”

Restaurants, schools and other places that serve meals could also be affected by a citrus shortage. Even the price of orange juice has gone up.

“Based on the pictures we’re seeing, and the market reports we’re reading, things are not very good out there,” said Kirk Purnell, general manager of Ben E. Keith Co.’s Oklahoma division, which supplies food items and equipment to restaurants, schools and health care facilities.

Ben E. Keith Co. is a member of Markon.

“When the weather’s bad and prices go up, that also means the quality of the product is diminished, which affects our consumer and food-service customers,” Purnell said.

California growers said more than 70 percent of this season’s oranges, lemons and tangerines were still on the trees as nighttime temperatures in California’s Central Valley dipped into the low 20s and teens.

California Gov. Arnold Schwarzenegger has asked the federal government for disaster aid from the U.S. Department of Agriculture and Small Business Administration for growers and other affected businesses.

“This is not just about the crop this year. It could also have a devastating effect next year,” Schwarzenegger said.

Florida produces more citrus overall, mostly for use in orange juice, according to the USDA.

“Limited amounts were harvested before the freeze, so it’s not like the markets are going to dry up suddenly,” said Claire Smith, a spokeswoman for Sunkist Growers Inc., a Los Angeles-based cooperative owned by some 6,000 growers in California and Arizona.

Sunkist may import oranges and other fruit from South Africa and other countries.

“We may adjust the prices as we discover the full extent of the damage next week, but for now, if you bought an orange at the supermarket for 50 cents, expect to pay a dollar to $1.49 for it,” said Todd Steel, owner of Royal Vista Marketing, which sells California citrus to markets throughout the country.

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Copyright (c) 2007, Tulsa World, Okla.

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