Soaring vegetable prices are affecting sales trends for processed foods. Prolonged rain and typhoons in mid-September reduced arrivals of some vegetables, driving up wholesale prices for lettuce and other produce and slowing sales of related products, including dressings.
Fresh vegetable price trends appear to be having a significant impact on sales of processed foods. Prolonged rain and typhoons in mid-September reduced arrivals of some vegetables, including lettuce, sending wholesale prices higher and slowing sales of related products such as dressings.
For Chinese cooking sauces and seasonings, the sales mix of menus that do not use vegetables increased, while arrivals of onions and potatoes exceeded the year-earlier period and wholesale prices remained stable. Curry roux showed firm trends through early October.
Soaring vegetable prices have also caused changes in distribution channels and promotional activities for processed foods, with products outside categories that use large quantities of vegetables becoming increasingly prominent.