Dive Brief:
- Prices for mustard in Idaho are up at 33.1 cents per pound, up 2.5 cents per pound over last year, a grower told the Capital Press. It is one of the few crops that increased in value this year.
- U.S. prices are strong because of reductions in acreage in Canada, a leading production location. In 2015, U.S. growers produced 55,000 mustard acres. In 2013 they produced 15,000 acres.
- Bill Meadows, founder of Mountain States Oilseeds, increased his contracts in the region between Ashton and Twin Falls, Idaho, by 250% from last season, when he contracted for 3,000 acres. Of his 36 mustard growers, 15 are new this season.
Dive Insight:
The current trend with mustard, a specialty crop, in regard to commodity prices is opposite of what is happening with grains, for example with wheat. Earlier this month, the U.N.’s Food and Agricultural Organization reported burgeoning commodity reserves for this year. The FAO also reported global food prices ticked up 2.1% in May to 155.8 points, the fourth consecutive month of increases.
Ingredient manufacturers may want to consider entering long-term contracts for mustard to avoid price fluctuations, and consider extending those benefits to customers and to protect supply in the event of shortages. Manufacturers should also consider sourcing directly from growers and cooperatives or skip suppliers in order to cut costs.