March 2004
VOLUME 14, NUMBER 3

 

The Spinach Harvest in Texas Is Winding Down After a Good Season

From an article by Jose G. Peña, Extension Economist-Management, TAMU-AREC at Uvalde, appearing in Ag-ECO News Vol. 20, Issue 9 (March 9, 2004).

The spinach harvest in Texas is winding down after a good season of production and prices. Acreage planted for the fresh market was up and production for both the fresh and processed market was up as yields for both were up. Quality for both has been good. The market is holding at attractive prices. After many years of $5.75 to $7.00 per 25 pound spinach bushel basket ($0.23-$0.28 lb), the market for fresh spinach showed significant improvement starting in the ‘96 season and peaked in 1999 and again in 2002 at close to $14.00 per 30 pound plastic crate ($0.46/lb). While prices backed-off slightly during three of the last four seasons, prices for the fresh market appear to be holding at $10-$11 per 30 pound plastic crate (0.33-0.37/lb). The market improvement in 1999 and 2002 was apparently fueled by cold weather in Northern spinach producing states, shortages of lettuce (and high prices) and consumer boredom with iceberg head lettuce. Prices for romaine lettuce, for example, reached as high as $40/50 lb box for the high-end restaurant trade in 1999. Prices backed-off this season as more product from the U.S. and imports entered the market.

Demand is growing for fresh vegetables, especially for attractive, high quality greens with good taste and high nutritional value. Per capita use of all vegetables and melons has been steadily increasing during the last few years, totaling 445.3 pounds in 2003, up 6.3 pounds from 439.0 pounds in 2002. Per capita consumption of romaine and leaf lettuce has more than doubled during the last few years to 8.7 pounds in 2003, compared to an average of about 4.0 pounds during 1985-1995 and just a trace prior to 1985. This increased demand has helped boost demand and prices for spinach.

Spinach falls into the category of high quality, nutrition-packed, leafy greens with excellent taste. While total per capita consumption (canning, freezing and fresh) dipped slightly during the mid-80's, per capita consumption has been showing steady increases to about 2.57 lbs during 2003, up 0.77 lbs from an average of 1.8 lbs in the 90's. While processed spinach consumption has increased slightly, most of the increase per capita spinach consumption has been for the fresh market to an average of 1.5 pounds during the last two years compared to an average of 0.8 pounds during 1992-1999. Fresh spinach consumption, however, remains just a small blip in relation to total lettuce per capita consumption of about 31.0 pounds in 2003.

It is interesting to note that production for the processed market increased to about 260 million pounds this past year after two years of decline. While most of the increased production for the processed market has been in frozen spinach, it was also interesting to note a slight increase in production for canning in 2003 to 36.4 million pounds, up 5.7 million pounds from 30.7 million pounds produced in 2002, but down 62.8 percent from 81.6 million pounds produced for the spinach canning industry just five years ago in 1999. While some processed spinach production in Texas goes to freezing plants, most of the current production goes to canning.

While per capita consumption of all forms of lettuce exceeds spinach consumption, spinach is, by far, a superior product in attractiveness, nutritional value and flexibility in use i.e., can be used fresh and/or in a large variety of cooking options. Since about 72% of the 31.0 pound per capita lettuce consumption consist of head lettuce, it appears that market opportunities for spinach consumption may be available by capturing part of total lettuce market shares. The industry must increase public awareness of the nutritional value of spinach, especially as it concerns cancer prevention, antioxidants, and neutraceuticals (food pharmaceuticals). Fruits, vegetables, nuts and whole grains contain an abundance of phytonutrients that have been associated with protection from and/or treatment of chronic diseases including coronary heart disease, various types of cancer, eye disorders, diabetes, stroke and hypertension. Spinach remains among the top in the list of nutritious vegetables.

Spinach Value
Spinach production is very important to Texas and especially the Southwest Wintergarden region of Texas where almost 90 percent of the spinach produced in Texas is produced. While California now dominates spinach production, producing about 72 percent of the 857.9 million pounds of spinach produced in the U.S. in 2003, Texas produced about 30 percent of the processed market spinach.

The farm value of spinach production in Texas (fresh and processed) during 2003 amounted to $11.85 million ($4.04 million processed, $7.81 million fresh) with an economic impact of about $41.5 million for communities in Southwest Texas.

Appreciation is expressed to Dr. Larry Stein, Extension Horticulturist, for his contribution and review of this article.

 


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