The US Market for IQF Zucchini

It is commonly divided into two groups: summer and winter squash. Summer squash, such as zucchini, can be eaten cooked or raw. Worldwide production of squash, including zucchini, totaled 22.4 million metric tons in 2010. China accounted for 27% of global production, followed by India with 20%, Russia with 5%, and the United States with 4%. These commodities are primarily grown for domestic consumption, with relatively little export and import trade. The largest importers of squash are the United States, the European Union, and Japan. In the United States, imports of summer squash, including zucchini, are dominated by Mexico during the winter months. For the purpose of this survey, only individually quick frozen (IQF) zucchini will be analyzed. IQF zucchini can be processed in various forms, including whole-cut, half-moon, quarter-cut, and diced. US supermarket sales of frozen squash, including zucchini, decreased from 9.4 million units sold in 2006 to 8 million units sold in 2010, a decline of 15%. The value of sales also decreased slightly from $15.6 million to $15.3 million over the same period. Industry representatives confirmed that the market for IQF zucchini is stagnant, with enough supply to meet demand. However, industry representatives noted that the IQF whole-cut form garners the highest demand in the US, while there is little to no demand for quarter-cut and diced forms. Whole-cut smooth sliced is typically bought by the industrial food sector, while whole-cut crinkle is generally purchased by the foodservice sector. According to industry representatives, Mexico is a major supplier of IQF zucchini due to its large zucchini production base, modern processing facilities, and close proximity to the US. Honduras may have difficulty competing with Mexico due to higher shipping costs. The US zucchini market is adequately supplied by Michigan (summer season) and Mexico (winter production season), with no obvious market windows for Honduras to take advantage of. International prices for IQF zucchini in July 2012 were $1,135 per metric ton (FOB, Egypt) for long slices and $1,245 per metric ton (FOB, Egypt) for diced. Prices for long slices decreased to $810 per metric ton (FOB, Egypt) and $980 per metric ton (CFR, New York) in August 2012. Prices for IQF diced zucchini decreased to $870 per metric ton (FOB, Egypt) and $1,040 per metric ton (CFR, New York) in August 2012. US wholesale prices for fresh Mexican zucchini ranged from $9.00 per 40-pound carton in April 2011 to $57.75 per 40-pound carton in March 2011. Adverse weather conditions in the US caused a crop shortfall, leading to a price spike and subsequent bottoming out. From January to June 2012, Mexican wholesale prices averaged $17.33 per 40-pound carton. The US has published standards and grades of frozen summer squash, including zucchini, and frozen cooked squash. Industry representatives noted that the US has strict import requirements and regulations regarding frozen vegetables, including SQF Certification and independent third-party audits.