A pumpkin puzzle:
North Carolina is a bit player in the national pumpkin market. The crops in Northern states that are major producers, such as Pennsylvania and New York, were hit even harder by the storms, creating a gaping pumpkin shortfall for most of the East Coast. That siphoned some North Carolina pumpkins north, adding to the scarcity here. ...
The net effect for North Carolina pumpkin shoppers in this weekend's last mad rush for jack o'lantern fodder: almost no extra-large pumpkins; only a modest supply of smaller sizes; a complete absence of some varieties; and pumpkins that, in some cases, won't last as long once you get them home. ...
The shortage doesn't automatically mean higher prices for retail customers, though.
["Pumpkin kingpin" Julian] Howell [who "is somewhat rounded himself, emphasizing his resemblance to his products as he stalks the farmers market in an orange T-shirt"] said his farm had kept prices steady for wholesale customers like roadside pumpkin patches.
And a buyer for a Walmart store in central North Carolina had called and offered $110 per bin of pumpkins that would normally cost $60 to $80. He said the store planned to sell them below cost because their customers expect to find pumpkins.
A spokeswoman for the Salisbury-based supermarket chain Food Lion said the shortage seemed to have affected all major retailers, but that Food Lion had been able to piece together a proper supply and hadn't let the scarcity affect prices.
For Walmart and Food Lion (who I assume paid higher prices as it pieced together a proper suppy) it appears that pumpkins are loss leaders (or the quality is lower this year since the extra rain reduces how long they'll last on your front porch). I don't know enough business economics to understand why you wouldn't raise wholesale prices to roadside pumpkin patches ... do they have monopsonistic power?
