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Q&A
Impact of tariffs on produce prices
1:36:26
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169 sec
Council Member Gale A. Brewer inquires about ways to lower produce prices for consumers and the potential impact of tariffs. Matthew D'Arrigo provides insights on how tariffs might affect the produce market and prices.
- Short-term effects of tariffs are likely to raise prices and slightly decrease consumption
- The impact of tariffs will be minimal in the next six months due to the shift to domestic produce
- Long-term effects may include higher prices during the import season (fall through spring) if the tariff situation persists
- The Hunts Point market, being a spot market, is somewhat insulated from long-term tariff impacts
Gale A. Brewer
1:36:26
The biggest question, of course, for the consumer is how we can lower prices.
1:36:30
And, obviously, I think that the quality stayed pretty high, but prices are challenging.
1:36:35
Obviously, the tariffs are making it even worse.
1:36:37
So I was wondering if you felt the tariffs already, if you feel how it will impact and, you know, I guess, what we can do about it, if anything.
Matthew D'Arrigo
1:36:47
So the tariff question is is going to have a couple of I mean, I this is just an opinion.
1:36:56
I I'm not an economist, and the economist can't agree on it in the first place.
1:37:00
So, we are a spot market market.
1:37:04
The tariffs short term, I think, for sure, are going to raise prices, and it will also drive down consumption a little bit.
1:37:15
But we're heading out of import season right now.
1:37:20
So most, if not all, of our produce, with the exception of Canada, because Canada has year round supply of hydroponic tomatoes and things like that.
1:37:30
Mexico will finish with grapes and melons in May, and then they'll be done until next October or so or, man, earlier than that.
1:37:38
They have tomatoes earlier than that.
1:37:40
But the vast majority of our product for the next six months is going to be domestically grown.
1:37:46
So the impacts of tariffs will only be on inputs to growing, and I cannot think of any other, inputs, off the top of my head.
1:37:55
So over the next six months, we're gonna get a pass.
1:37:59
Then when you get back into import season, if the tariff war is still going on, you'll see less imports coming because the importers have had full warning.
1:38:11
Right now, the importers are getting caught flat footed.
1:38:13
They've got deals that suddenly are gonna have a tariff attached to them if it happens, and that's never good.
1:38:19
So there'll be some money lost at the import level.
1:38:22
But next year, the money will be lost at the grower level in the other countries where the product is being produced.
1:38:29
And, still there'll be a lot of scrambling and contracts and how the the business is going to be done.
1:38:35
What that means to the Hunts Point market is almost, it's almost we're on the sideline because we we take positions day to day.
1:38:43
So nothing's gonna sneak up on us and get us for a long period of time.
1:38:47
But it will create, I think, in general, a little higher priced, market structure for for produce next fall through winter and into spring as the import season unfolds.
1:39:02
I think this summer, if there are higher prices, I think it's more from mother nature creating shortages and things of that nature.
Rachel Lyons
1:39:10
Okay.
Gale A. Brewer
1:39:14
Council member of ELAs.