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Mexico crop loss 80 to 100 percent

Growers invoke Force Majuere*
 

 

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8 Feb 11 -
Here's an announcement to its customers that I'm told came directly from Sysco Foods.
 

ALL OF OUR GROWERS HAVE INVOKED THE ACT OF GOD CLAUSE ON OUR CONTRACTS (Force majuere) DUE TO THE FOLLOWING RELEASE. WE WILL BE CONTACTING YOU PERSONALLY TO REVIEW HOW THIS WILL AFFECT OUR CONTRACTED ITEMS WITH YOU GOING FORWARD.

THE DEVASTATING FREEZE IN MEXICO IS WORST FREEZE IN OVER 50 YEARS...

THE EXTREME FREEZING TEMPERATURES HIT A VERY BROAD SECTION OF MAJOR GROWING REGIONS IN MEXICO, FROM HERMOSILLO IN THE NORTH ALL THE WAY SOUTH TO LOS MOCHIS AND EVEN SOUTH OF CULIACAN. THE EARLY REPORTS ARE STILL COMING IN BUT MOST ARE SHOWING LOSSES OF CROPS IN THE RANGE OF 80 TO 100%.

EVEN SHADE HOUSE PRODUCT WAS HIT BY THE EXTREMELY COLD TEMPS. IT WILL TAKE 7-10 DAYS TO HAVE A CLEARER PICTURE FROM GROWERS AND FIELD SUPERVISORS, BUT THESE GROWING REGIONS HAVEN'T HAD COLD LIKE THIS IN OVER A HALF CENTURY.

THIS TIME OF YEAR, MEXICO SUPPLIES A SIGNIFICANT PERCENT OF NORTH AMERICA'S ROW CROP VEGETABLES SUCH AS: GREEN BEANS, EGGPLANT, CUCUMBERS, SQUASH, PEPPERS, ASPARAGUS, AND ROUND AND ROMA TOMATOES.

FLORIDA NORMALLY IS A MAJOR SUPPLIER FOR THESE ITEMS AS WELL BUT THEY HAVE ALREADY BEEN STRUCK WITH SEVERE FREEZE DAMAGE IN DECEMBER AND JANUARY AND UP UNTIL NOW HAVE HAD TO PURCHASE PRODUCT OUT OF MEXICO TO FILL THEIR COMMITMENTS, THAT IS NO LONGER AND OPTION.

WITH THE SERIES OF WEATHER DISASTERS THAT HAS OCCURRED IN BOTH OF THESE MAJOR GROWING AREAS WE WILL EXPERIENCE IMMEDIATE VOLATILE PRICES, EXPECTED LIMITED AVAILABILITY, AND MEDIOCRE QUALITY AT BEST.

THIS WILL NOT ONLY HAVE AN IMMEDIATE IMPACT ON SUPPLIES, BUT BECAUSE OF VERY STRONG BLOSSOM DROPS, THIS WILL ALSO IMPACT SUPPLIES 30 – 60 DAYS FROM NOW. SOME GROWERS ARE MEETING WITH THEIR BOARDS RIGHT NOW TO DETERMINE WHETHER THEY SHOULD IMMEDIATELY RE-PLANT, HOPING FOR A HARVEST BY LATE-MARCH-TO-EARLY-APRIL, OR WHETHER THEY SHOULD DISC THE FIELDS UNDER AND WAIT FOR ANOTHER SEASON.

We are doing everything we can with our growers to minimize the
effect of this disaster on you. With the unprecedented magnitude
of this event we wanted to immediately make you aware of the
conditions. We will continue to send out communications as our
people on the ground report back to us. We thank you and we
appreciate your understanding during this time.

Sysco Intermountain

 

"Don't include my name please. Love the web site. Tell everyone of the "global warming crowd" they're wrong and back it up with facts.  Have changed some minds!"

Again, this reader says that this announcement came directly from Sysco Foods. If someone from Sysco Foods wants to deny it, I'll certainly be willing to publish their disavowal.

Here's a link to a pdf of Sysco's announcement:

http://www.stevequayle.com/News.alert/11_Cosmic/110209.Sysco.Mexico.Freeze.pdf

Thanks to Martin Hoer, John McCann, David Williams and Ken Boyce for this link
  

"This is not good at all," says Martin." But if people had read Ice Age Now it would not be a surprise...

 

Force majeure

Force majeure (French for "superior force") is a common clause in contracts that essentially frees both parties from liability when a natural disaster or event beyond their control (act of God) prevents one or both parties from fulfilling their obligations under the contract.


 

 



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