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market-farming - Re: Squash retail price

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  • From: Willie McKemie <mckemie AT austinfarm.org>
  • To: Market Farming <market-farming AT franklin.metalab.unc.edu>
  • Subject: Re: Squash retail price
  • Date: Wed, 2 Oct 2002 05:22:20 -0500


On Tue, Oct 01, 2002 at 10:28:23PM -0500, Rick Williams wrote:
> Last week I was a bit depressed when I noticed the price of squash at a
> local regional supermarket chain (Woodmans for those that live in this area)
> that had your choice of cultivar for only .18/lb.
>
> I wonder what the heck they paid the farmer for the squash?
>
> Anyway, today I happened to be in the store and intentionally was checking
> prices on produce and noticed that the same bin was now .40/lb.
>
> Which is our "normal" price:)

Around here, "normal" (non-organic) squash retails for $.70-$1./lb,
with "special" dips down to $.3-$.4. The grocery stores typically pay
$7-$10 per 1/2 bu (~25lb) box, or $.3-$.4/lb. At farmers markets, i
get $1 for a 1.25-1.5lb basket.

You should not become too alarmed at promotional retail prices, many
times grocery stores will sell at a loss intentionally. I have sold
$.60/lb tomatoes to grocery stores that were retailing them for $.49!
That's just an oddity of the business. For a non loss leader, the
grocery stores want to get 50% to 100% markup. Keep in mind that the
grocery stores endure a 10%-20% "shrink".

I do remember, a few years ago, Florida tomatoes would come in here at
$2-$3/box when local tomatoes were $10-$12. At that time, cost of
production was about $10/box here in Texas and $6-$8 in Florida.

--
Willie ONWARD! Through the fog!
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  • Squash retail price, Rick Williams, 10/01/2002
    • <Possible follow-up(s)>
    • Re: Squash retail price, Willie McKemie, 10/02/2002

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