2007 - Crop Update - USA
California experienced unprecedented extreme freezing temperatures in January 2007. The nighttime low temperatures remained in the teens and low-twenties for an extended period of days and many crops did not recover. Statewide, agricultural losses due to the January freeze are estimated at more than $1.3 billion. The citrus crop sustained most of the damage; however, vegetables, fruits and grains were also severely affected. Onion growth was retarded and vulnerable seedlings were damaged or killed by the weather. In total, approximately 15% of the onion acreage in the primary West Side growing region was lost. We were able to replant only about 50% of this loss before the rain set in and prevented further plantings. The remainder of the West Side crop was undoubtedly damaged with reduced stand counts and only time will tell how it will recover.
The period of extreme cold weather experienced in California was followed in February and March by record high temperatures. This extended period of warm weather has continued, with temperatures 15°-20°F warmer than normal throughout the state. The atypical weather pattern is confusing the growth of several crops across the state, with many starting their spring bloom early. This weather is concerning since extreme weather conditions typically result in irregular growth, a high percentage of onion seeders, disease pressures and elevated levels of weeds; all of which contribute to yield losses and compromised microbiological counts. These issues are coming on the heels of already record low inventories of low and extra low bacteria onion due to last year's poor harvest.
Both India and Egypt have also suffered shortfalls in onion crops. India's onion crop was short by 60% and it appears that they have shifted their focus to their own domestic consumption. Keep in mind that onion is a staple for India and concerns as to available supply for their own consumption have already surfaced. China in recent years has struggled to produce onion and will not be able to make up for the shortfall from India and Egypt.
The U.S. garlic crop is currently in the early stages of development. Bulbs have not yet formed and growth is slightly behind normal. Although the cold weather did not result in a loss of acreage, the erratic weather pattern may impact yields this summer. It is important to keep in mind that the current crop in the ground is the smallest since 1983 due to last year's crop failure resulting in a shortage of garlic seed. At this time, it is expected that this year's crop will not allow the domestic garlic supply situation to fully recover. Domestic garlic inventories are at record lows and this small crop will not return availability to more normal levels.
Chinese garlic also experienced tight supplies last year, which were made evident by higher prices for Chinese dehydrated garlic. This was largely caused by the burgeoning domestic Chinese demand for fresh garlic. Additional plantings have been made, but it is anticipated that this will be consumed by the continued rapidly expanding demand for fresh garlic within China's own borders. It is our expectation that this year's availability of Chinese garlic will be very similar to 2006.
During this most trying year, Sensient Dehydrated Flavors LLC has worked to maintain a consistent supply of material to our customers and will continue to do so.
