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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
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