Page 15 - 2019 Pancake Supply Chain Co-op, Inc. Annual Report
P. 15

PRODUCE MANAGEMENT




                                                  USDA Avocado Market Prices
                                                           Savings $96K
                                                         2017                2018               2019


                    $100
                      $80

                      $60
                      $40
                      $20
                       $0
                           Jan 1       Mar 1         May 1        Jul 1         Sep 1        Nov 1





                  California avocado crop yields are normal every other year and 2019 was a light yield year resulting in fewer suppliers and volatile
                  pricing throughout the year (Chart shows prices lower in 2018 vs 2019 or 2017).  Being nimble enough to take advantage of
                  the lower priced size for those short periods throughout the year saved the system $96k.  The system purchases 48 to 60 count
                  avocados depending on market price and availability.

                  CSCS contracts resulted in savings when comparing to USDA markets.  The table reflects commodity savings.

                      Product Category    Number of Pounds 2019       Savings - CSCS Contracts vs. Market

                               Avocados                 2,945,661                                 $ 96,000
                                  Lemon                 2,042,906                                 $ 45,632
                       Lettuce Green Leaf               1,200,008                                $ 252,714
                               Onion Red                  518,612                                 $ 45,485
                            Onion Yellow                1,991,770                                $ 142,203
                            Total Savings                                                        $ 582,034













   Results through                                                          In 2019, CSCS generated
       Relationships

                                                                            $513K in rebates to IHOP
                                                                            Members.
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