Posts Tagged “Allen Lund Company”
By Dave Comber, ALC Madison
Many of us like to enjoy a beer at a sporting event, while watching our favorite sports teams on TV, at picnics, or at any other gathering with family and friends. Most of us never think about the fact that beer is considered a perishable product. However, beer is a fragile product that needs care when being transported.
Beer is food. As with most foods, it deteriorates as a result of the action of bacteria, light, and air. To combat this, breweries, prior to bottling, make beer undergo some form of stabilization to extend its shelf life. The two primary forms of stabilization are sterile filtration, where the beer is passed through a microporous filter that will not let through any crunchy bits larger than 0.5 microns, and pasteurization, whereby the beer is heated briefly to kill any microbial wildlife.
The length of time it takes for a beer to become stale is determined by the alcohol strength and hopping level of the beer. Alcohol and hops help preserve beer – stronger beers with more hops keep longer. The freshness for a lager is about four months, five months for stronger craft brewed ales, and about six months to one year for high strength beers such as doppelbocks.
In most cases beer is at its best before it leaves the brewery. The further it travels from the brewery, the more difficult it becomes to maintain quality. Everyone involved in the production, distribution, and service of beer shares a responsibility for familiarizing themselves with, and maintaining product freshness. The sooner the beer can get from the brewery to the consumer, the better. Transportation providers play a large role in ensuring beer gets to the consumer expeditiously to ensure product quality.
When transporting beer, it is critical that carriers understand what it takes to cross state lines. Many states require permits to be able to legally haul beer in and out and through their state. All transportation providers need to ensure they have the proper permits to haul the product. Fines are possible, and delays getting the product to the store can occur if a truck is detained because they do not have the appropriate permits.
Since beer is a food product, the trailer needs to be inspected to ensure that it is clean and free of any odors. Some beer companies require that reefer trailers are used to haul their beer to slow down the oxidation process to keep it fresh longer. The temperature of beer hauled in reefers is generally around 40 to 45 degrees Fahrenheit. Keeping the beer at the proper temperature keeps beer fresh longer. Also, in the winter, if hauling beer in a dry van trailer, it is imperative that beer is not kept outside too long depending on the outside temperature. Beer will not freeze at 32 degrees Fahrenheit due to the alcohol and sugar in beer. However, if beer is being transported on a dry van in cold temperatures in winter months, it should be delivered straight through to the receiver, or early the next morning. If temps are extreme (15 degrees F. or less) beer loads should only be transported with a reefer trailer, with the reefer running between 40-45 degrees Fahrenheit.
The transportation industry plays a big role in ensuring that beer goes from the brewery to the consumer in a timely manner. When purchasing beer, remember to think about all that the transportation industry does to ensure the freshness of beer. Enjoy and respect beer, and always drink in moderation.
Dave Comber is the manager of ALC Madison and has been with the Allen Lund Company for eight years. He worked for three years as the assistant manager, before being promoted to his current role. Comber brought with him over 20 years of management and customer service experience within the transportation industry from Northern Freight Service, Inc. and Schneider National, Inc. Comber attended Lawrence University in Appleton, WI and earned a B.A. in Liberal Arts with a Major in History.
By Harry Balam, ALC Los Angeles
One of the biggest problems the transportation industry is faced with is a truck driver shortage. I have been in this industry for 16 years and this is, by far, the worst I’ve seen it. However, one can argue that this isn’t a new problem. In fact, analysts and industry groups have warned of truck driver shortages for years.
Those of us in the industry have been aware of this problem for a while and have struggled to find drivers to cover loads. But the truck driver shortage has hit the average American much closer to home in the last few years. Empty store shelves caused by pandemic supply chain disruptions are just bringing this ever-growing problem to light and gaining the attention of the American people and lawmakers. No toilet paper = unhappy Americans.
According to the American Trucking Association, the truck driver shortage is currently at 80,000 and could climb to 160,000 by 2030.
It has been argued that the truck driver shortage isn’t exactly a shortage. “It’s a recruitment and retention problem,” said Michael Belzer, a trucking industry expert at Wayne State University.
In the U.S., “there are in fact, millions of truck drivers – people who have commercial driver’s licenses – who are not driving trucks and are not using those commercial driving licenses, more than we would even need,” Belzer said. He argues that it is because people have been initially recruited to the job and maybe even trained and then realize that the job is not for them.
So then, the problem lies in not just how to keep current drivers actively driving, but also, how to recruit new drivers.
One idea is to help pave the way for drivers under 21 years old to enter interstate trucking. I know…sounds scary, right? I’m currently trying to wrap my head around trying to teach my teenage son how to drive. The thought of teen drivers on the interstate pulling an 80,000 pound machine is more than a little alarming. But, the more I read about it, the more I feel like it could be an avenue worth pursuing.
President Biden signed a $1.2 trillion bipartisan infrastructure package into law last November. There is a lot included in that hefty price tag, one of which is the bipartisan DRIVE-Safe Act. The DRIVE-Safe Act focuses on one of the biggest obstacles to recruiting younger drivers, the requirement that they are at least 21 years old to drive in interstate commerce. One can obtain a commercial driver’s license at 18 but federal law has prevented them from crossing state lines.
“The DRIVE-Safe Act addresses our industry’s largest challenge by creating an apprenticeship program that will help train the next generation of safe, skilled drivers,” said Dan Van Alstine, who serves on the board of the ATA. The Act recognizes the fact that teen drivers have higher rates of auto accidents so it included added safety and training standards for newly qualified and current drivers. The new drivers must complete at least 400 hours of on-duty time and 240 hours of driving time in the cab with an experienced driver.
Also, every driver will be required to train on trucks equipped with new safety technology including active braking collision mitigation systems, video event capture, and a speed governor of 65 miles per hour or less and automated manual transmissions.
Also aimed at helping the retention and recruitment problem and is a new proposal to create a new refundable tax credit for truckers. On April 1, Reps. Mike Gallagher (R-WI) and Abigail Spanberger (D-VA) introduced a bipartisan bill that would create a tax credit just for truck drivers as a way to attract and retain more drivers in the industry. The Strengthening Supply Chains Through Truck Driver Incentives Act would create a new refundable tax credit of up to $7,500 for truck drivers holding a valid Class A CDL who drive at least 1,900 hours in the year. This tax credit would last for two years (2022 and 2023). It would also create a new refundable tax credit of up to $10,000 for new truck drivers or individuals enrolled in a registered trucking apprenticeship.
It is too early to know the future of this very newly proposed bill, but one thing is for certain – something needs to change. Just because things have been done a certain way for decades doesn’t mean we should keep doing it that way. Change brings opportunity. Like John F. Kennedy said, “Change is the law of life. And those who look only to the past or present are certain to miss the future.”
Harry Balam attended Los Angeles Mission College and began working as a transportation broker in the dry division for ALC in 2006. After two years he moved to the refrigerated division. He currently works as an operations supervisor in the ALC Los Angeles office.
By Brandon Demack, ALC McAllen
On the Saturday before Super Bowl Sunday, avocado imports from Mexico into America were put to a complete halt after threatening messages were sent to a United States plant safety inspector’s official phone.
The avocado industry is another victim of the turf battle between the cartels in the western parts of Michoacán and will put a strain on avocado imports into the United States for the foreseeable future. The U.S. health inspector was carrying out inspections in Michoacán when the threat was received, but luckily for consumers, it was the day before the Super Bowl so all shipments of avocados for Super Bowl parties and restaurants were already shipped and weren’t affected.
Avocados are considered “green gold” in Mexico, as it is a multibillion-dollar business and the industry even broke records in 2020 to become the world’s largest producer of “green gold.” Unfortunately, however, as the growth continues to rise, so does the threats from the nine identified cartels operating in the area.
In response to the issues going on with cartels, farmers have been starting to arm themselves and establish self-defense groups to combat this to the reluctance of Mexican President Andrés Manuel López Obrador. This violence and issues in Michoacán will hopefully subside sooner than later.
The U.S. responded to the threatening messages by putting more security measures in place for inspectors. On February 18, 2022, it was announced that the inspection of avocados in Michoacán would resume. The rapid response to the threat shows the importance of a working supply chain between Mexico and the U.S.
It would have been hard to fill the large gap left by the lack of avocados coming from Mexico. Mexico provides around 80% of avocados consumed in the U.S. and a longer ban would have drastically impacted the supply of avocados in the U.S. With the resumption of imports, consumers do not have to worry about a shortage or price hikes and can continue to enjoy avocados.
Brandon Demack has been with the Allen Lund Company since July 2011. He first started in the Dallas office and in March of 2019 he transferred to the McAllen office becoming the operations manager of produce. Demack attended the University of North Texas with a Bachelor of Science in Logistics and Supply Chain Management.
By Gerald Ebert, ALC Richmond
Is the severity of the “supply chain crisis” a direct result of the COVID pandemic? Probably.
Are 15 months of consecutive Year-Over-Year freight cost increases a direct result of COVID and the “supply chain crisis”? That question is not as easily answered.
Most of us in the freight business work in a right here and right now world. We win and lose looking into a crystal ball that has been very cloudy the last few years. We work hard to find commonalities with past trends to help give us even the slightest advantage.
Even with years of experience and more real-time data than ever before at our fingertips, every tight truck market is the “tightest we have ever seen”, while a loose truck market seems to add hours to every day.
As everything these days is a “crisis”, it is not uncommon to hear that the national reopening that followed the COVID shut down was the beginning of the current capacity “crisis.”
It’s true, that average truckload prices did increase approximately 80% from the end of the COVID shutdown through the close of 2020. This trend continued through 2021. Only as 2021 closed, did we see the Year-Over-Year gap shrink to reasonable comparisons.
With all that has happened since we found ourselves adjusting to a new and often unwelcome reality, it’s easy to forget that before The COVID Shutdown, The Great Reopening, The Workforce Shortage, The Supply Chain Crises, and Surging Inflation, there was January, February, and March of 2020.
I recall having numerous, maybe daily, conversations with colleagues in those three months in which we opined, “This the tightest market we have ever seen.” It wasn’t. In fact, it didn’t really come close in comparison to the capacity challenges we faced in June and July of 2018.
The industry, and those of us that work in it every day, were simply conditioned by an unusually long 24 to 26 month cycle of demand and rate decline. It is likely that the COVID pandemic was just an unpredictable pause of the inevitable rebound we are still dealing with today.
2022 is not showing any signs of a downward correction. Most are predicting mild 3-5% increases when compared to 2021. The reality is that we won’t know until the year concludes. That’s the way transportation works. Hindsight is crystal clear. The only thing crystal clear about the future in transportation is that it will be different than it was the previous year.
The market doesn’t recognize any calendar or bid cycle. It doesn’t show mercy for the unpredictable. When the market destroys your budget, it shouldn’t destroy solid relationships that have been built over years.
2021 proved, yet again, that any commodities market is measured by a simple supply and demand equation. From 2018 through 2019, that equation favored the shipper. For most of 2020 through today, and for the foreseeable right here and right now future, it has forced shippers to battle for capacity. Trusted resources and strong relationships have never been more important. That crystal clear hindsight view will verify those relationships.
Gerald Ebert began his career with Allen Lund Company as a transportation broker in the San Antonio office. In 1999, Ebert transferred to ALC Richmond and was promoted to the manager of the Richmond office in 2000.
It’s getting colder out, but you knew that already. So, as you don your parka, when you might once have used a windbreaker, we venture out to do one of the most human things we’ve come to know: get all our groceries in one swoop from the store!
Now, you may have a specific diet, you may be a super-foodie, or a junk-food-junkie(may Larry Groce have mercy on you)! Either way, we’re going to set out to get a balanced list of beverages, meats, grains, vegetables, nuts, and fruits. Maybe, you’ve noticed something a bit different this year? Fruits(among many other commodities) have gone up in price, year over year for decades. In this particular day and age, we’re also mixing in supply chain disruption, tougher seasons on our farmers, and an ever-increasing demand for healthier foods. According to the USDA, the top six fruits per price by weight are blackberries, raspberries, cherries, blueberries, apricots, and strawberries. For the purpose of this article, we’re going to focus on strawberries, as they meet the lowest price point and among the others aforementioned on this list, are the most commonly consumed by consumers and businesses.
But, what does it look like when you get to the store? In my personal experience, I couldn’t find strawberries anywhere at my local grocer for weeks. But, I found a quick fix that has become a staple for my household: frozen strawberries(and pretty much anything else I wanted to grab that I couldn’t find fresh). In fact, they had access to fruits that are almost never available fresh such as papaya, dragon fruit, passionfruit, acai berries, and much more!
Frozen fruit always comes in at a much more affordable price than its fresh counterparts. After taking my bag of frozen berries home, I discovered a second surprise: beautiful, vibrant, deep red, and delicious strawberries! It took some time to get used to thawing them out, but nine times out of ten, I have a superb batch of strawberries.
Frozen foods get a bad reputation for being processed; possibly having ingredients along the lines of “unnatural”. Throw this bias right out of the window! “Scientists from Leatherhead Food Research and the University of Chester, carried out 40 tests to measure nutrient levels in produce that had been sitting in a fridge for three days, compared to frozen equivalents. They found more beneficial nutrients overall in the frozen samples”. You may find this hard to believe, based on everything we’ve been taught growing up.
There’s a pretty big factor that comes into play for frozen fruit, that fresh fruit just can’t match! Here at the Allen Lund Company, we haul fresh produce daily, on tight schedules. Produce growers and farmers often pick fruit just before it’s ripe, to time it to ripen perfectly for delivery and consumption. The harvest comes in, then the clock starts counting down. If the produce doesn’t get from A to B in a certain amount of time, it’s likely going to be unfit to sell. So, eventually, a way around this schedule crunch was found: blast/instant quick-freezing fruits and vegetables. What’s the benefit you ask? Well, the freezing has a bit of a better schedule. Frozen fruits are picked at optimal ripeness and frozen immediately to preserve peak nutrition, flavor, and shelf life.
Having the ability to keep products at the perfect quality for double, triple, or greater shelf life allows growers to open a market for year-round sales, both in season and out of season. Consumers see huge savings on purchasing these goods, but where it really comes into play is supply chain management. Plus, keeping a bag or two of frozen goodies in the freezer comes into play for when you take a nasty spill on the way to the office!
More and more investments have been made in efforts to perfect packaging, create/lease cold storage centers, and erase supply gaps during off seasons for businesses. The proof is in the pudding, or should I say, the sorbet. Studies show that the Global Frozen Fruit market is a $4.65-billion-dollar industry, expected to grow at 1-2% annually CAGR to reach a peak of $5 billion dollars in 2026.
Consumers are steadily following this trend as their purchases shift. Many trade shows now include frozen goods being marketed, displayed, and packaged. Every year as the category expands, growers are getting better, and better at retaining color, nutrients, taste, and lower prices.
The next time you’re hankering for some produce and feeling adventurous, check out the frozen section. You’ll find that no matter what time of the year, you’ll always be able to afford juicy, nutritious, and gorgeous strawberries.
By Nora Trueblood, ALC MarCom
Every year we read about the generosity of the produce industry, whether it is donating salad bars to schools, providing extras to the farm workers in the fields, or continuing to support efforts like Navidad en el Barrio. Even after the past two challenging years with COVID-19, and supply chain disruptions, giving is still taking place.
According to Keith Curtis, founder and president of The Curtis Group, and featured in the digital issue of the Daily Press, “I believe that 2021 will be noteworthy. Not because donors have reached their max, but because we must and will continue to dig deep to support the critical work of our nonprofit partners.”
Imagine, if you will, donations pouring into a warehouse in Bell, CA, where all of the product is palletized, organized and then distributed to over 27 different agencies, from San Diego to Riverside, to Pasadena and downtown LA. Almost all of the donors that gave to Navidad en el Barrio for the 2021 effort have donated before, but there were new companies that jumped in, as well. The challenge this year was that companies were feeling the stress of meeting retail orders before they could even consider donating to a non-profit.
Fortunately, Navidad en el Barrio was the recipient of donations from Randall Farms (in cooperation with Tyson Foods), who gave frozen chicken to every family, Wada Farms along with the Allen Lund Company provided a full truckload of Idaho potatoes, Grimmway Farms provided carrots for every family, and Taylor Farms sent bagged lettuce. Also included in the grocery bags were apples from Sage Fruit and FirstFruits Farms, blueberry applesauce from Crunch Pak, avocados from Mission Foods, and a full truckload of Halos, oranges and lemons donated by Wonderful Citrus. For the second year tortillas were donated by the Santa Fe Tortilla Co.(this donation was transported from Little Rock, AK to Southern California). A new donor this year was PepsiCo – who kindly added snack items to many bags. And speaking of bags, our local Target, in La Canada Flintridge, donated 1,000 of their Target bags which were used at the Our Lady of Guadalupe distribution site.
One of the largest donor’s year in and year out is Coca-Cola. This year there were three truckloads of product from both Northern and Southern California, including water, tea and juice. Other regulars with NEEB included Cacique Inc. and Cardenas Markets(both under the direction of Ana Cardenas, an angel to NEEB), who provided cheese, rice and chorizo. Finally, Northgate Market included tomato sauce, as they do, every year.
I am proud that the Allen Lund Company has continued to support Navidad en el Barrio, along with many other well-deserving non-profits. For NEEB we coordinated the transportation to the warehouse, provided logistical support in the multi-pick loads from grower/shippers and had volunteer manpower throughout the day of distribution at the main warehouse. Additionally, there were ALC folks at the Society of St. Vincent de Paul, Catholic Charities/Downtown LA, and Our Lady of Guadalupe, distributing bags to families. Overall 12,500 families were recipients of two full bags of groceries. A mighty effort for a wonderful cause. We are already looking forward to 2022, and Navidad en el Barrio would like to increase the give to 15,000 families! So, while we wish there were not the need, this amazing group of donors continue to make sure more families can enjoy a happy Christmas.
From the Allen Lund Company to all of you – Merry Christmas.
Nora Trueblood began her career with ALC in 2002 as Director of Marketing & Communications. Prior to joining the company, Trueblood worked as the event manager with the Montrose Arts Council and Alpine Dance in Montrose, CO., had her own production and event planning company, and spent 7 years with Lorimar Television.
By Collin Payne, ALC Denver
As we enter a recovery period from the COVID-19 “recession” the transportation industry is showing signs of strength. The threat of the virus has been reduced across the country, but inflation has been caused by rising commodity prices and record-level government spending.
Crude oil 1-year price change- $41.43>$81.35Coal 1-year price change – $60.74>$149.30Aluminum 1-year price change – $1944>$2640Apples 1-year price change – $102>$122U.S. dollars in circulation:October 2010 – $960,369,000,000October 2015 – $1,391,429,000,000October 2020 – $2,040,201,000,000October 2021 – $2,202,506,000,000
The re-opening of the economy has triggered a supply shortage in labor and productive commodities – microchips, lumber, aluminum, apples, lettuce. Due to labor shortages, the market has seen rapid increases in low-wage paying positions, further shrinking the number of drivers on the road.
Registered trucks drove 304.9 billion miles in 2019, carrying almost 12 billion tons of freight – making up 72.5% of the total tonnage shipped domestically. Why would you spend 10 days on the road driving from Washington to Pennsylvania and back, when you can find a paying job with benefits close to home?
This has had a domino effect on the supply chain industry, forcing shippers to seek expensive and/or creative solutions. When will the worst of inflation begin and when will we see the end of rising prices?
The average inflation rate of the United States over the last 10 years is 1.8% – in April 2021 the inflation rate rose above 5% and is currently 6.2%. Currently, the price of produce per pound is up 7.3% from early 2020, and the two-year outlook shows fresh produce transportation nearly doubling. There is a general consensus that we are nearing the peak of inflation rates, and this will continue through 2022.
With several trillions of dollars being added to circulation since April 2020 and no plans insight to stop, there are no guarantees of reduction from current inflation rates.
Carriers will see a direct increase in the price of equipment, tractor/trailer repairs, fuel, insurance, and meals. Shippers will see a direct increase in the cost of labor, transportation costs, and raw material costs.
We are in the position to see inflation happen from a birds-eye-view, giving us a special position to take. Allen Lund Company’s duty is to communicate this issue to our shippers and carriers to ensure they are properly prepared for the continued rise in prices.
Collin Payne is a transportation broker in ALC Denver and has been with ALC over 2 ½ years. Collin graduated from Texas A&M University with a BS in University Studies of Global Arts, Planning, Design and Construction Concentration.
By Karman Eckelbarger, ALC Orlando
Overseas produce from South America could be facing delays due to the flood of cargo ships invading the ports. These port delays and supply chain labor challenges are going to affect the delivery of produce across the east coast. This is especially concerning for delays that could jeopardize the shelf life of berries, citrus, and light density produce that has shorter shelf lives than higher density foods. The demand for overseas goods is on the rise, whilst the availability of drivers and vehicles domestically is plummeting. This can mean higher prices for produce as companies switch or seek out other methods for getting fresh produce into stores. It also means that the transportation and logistics of getting produce delivered on time is going to be increasingly challenging.
Ports are swelled with delayed ships and produce delivery is obstructed as labor and transportation agencies face shortages.
In anticipation of the holiday season rapidly approaching, ports are preparing for the peak season as an influx of ships heads to the east and west coast. However, many of those ships will be surprised to reach those ports and face record-setting delays for the year. As ships flood the west coast, transportation companies facing labor shortages and a drought of available trucks will have to delay unloading the cargo. This is in addition to the unparalleled demand for imported goods that markets have seen since the beginning of the pandemic.
This influx in demand for goods sourced from abroad has continued to pile up on the ports resulting in record-breaking delays to get containers unloaded and ready for on land delivery. Port officials expect most ships to face delays of at least eight days before they can be docked. However, some ships are facing weeks of delays before they can hope to be unloaded.
Consumers are increasingly turning to e-commerce to fulfill their buying needs which means many carriers will have to turn to air-freight or other modes of transportation to evade the delays ships are facing at the ports. For imported produce, the effects have created a risky venture. In addition to west coast ports filling up fast, many ships are seeking re-routes to the east coast in hopes of finding a better unloading date. However, this has created a backlog in the supply chain as even these ports are incapable of handling such a high capacity during this time. For instance, ports that typically experience lighter traffic like Savannah and Charleston are being bombarded with ships awaiting appointments to be unloaded at the moment. As all steps in the supply chain face labor shortages many ports are struggling to keep up.
Karman Eckelbarger is currently an Intern at ALC Orlando, FL. Karman is currently enrolled as an English major at the University of Central Florida and hopes to graduate with a Bachelors in Fall 2022.
By Steve Hull, ALC Portland
2021 continues to be a challenging year for so many. Those of us in the logistics world have been working long hours and dealing with unprecedented upheaval in the transportation space. We know, from our discussions with so many of our shipper and carrier clients that you all are working just as hard. We’ve all been missing out on chances to get together and collaborate in person during this time. We’ve missed out on attending some produce-focused trade shows in person, including the United Fresh convention and Expo along with PMA Fresh Summit. Those in-person opportunities that we once maybe took for granted are something very special. One of the things missed was the opportunity to talk about and ask for help with one of Allen Lund Company’s core Acts of Kindness, Navidad en el Barrio.
Since 2004, the Allen Lund Company has been offering assistance including freight shipments to Navidad en el Barrio. First established in the 1970s by former LA Ram’s kicker Danny Villanueva, the non-profit collects money and food for the underserved Hispanic communities in Southern California. ALC first assisted with the transportation of groceries that were included in food bags that are distributed to every family. In the early days, those food bags did not contain any perishable food items, such as fresh produce. Recognizing the strong relationships that ALC has with the growers in California, Navidad en el Barrio asked ALC to help make those food bags much more nutritious. Beginning in 2006, fresh fruits and vegetables became a consistent part of each food bag.
Critically during this pandemic, the need for assistance is as high as ever. Navidad will provide meals to approximately 10,000 families this year! We are asking for any growers/importers/suppliers who are looking to step up and make a difference in the lives of so many deserving families in Southern California by making donations of nutritious perishable foods. In the past, through the generosity of companies such as Rainier Fruit, Wada Farms, Grimmway Farms, Wonderful Citrus, Mission Foods, and Coca-Cola, we’ve been able to help provide fresh fruits, potatoes, carrots, avocados, bottled water, and juices as well as many other available seasonal products for the food bags.
Since we didn’t get the chance to ask you in person this year, we are asking now virtually. We need your help! Christmas is fast approaching, and we are currently working on lining up donations for the 2021 distribution that will take place in early December. Please, reach out to either me at email@example.com, or ALC Marketing & Communications Director Nora Trueblood at firstname.lastname@example.org if your business can help. We appreciate your participation.
By Doug Plantada, ALC Los Angeles
Imagine you’re walking down your local produce aisle, looking to cross some fruits and veggies off your list, and you notice something is a bit off. The lemons are a little smaller than usual, watermelons have a slightly different look to their rind. Your favorite Hass avocados aren’t quite as meaty and you can’t put your finger on them but their shape is different than you’re used to as well.
As food demands increase as a result of Covid-19 and the natural disasters of the past two years, this exact experience is becoming more common as imports of fresh produce have risen dramatically across the country. In 2021, U.S. imports of fresh vegetables from January through May were at $4.88 billion, up 4% compared with 2020.
Of the many diverse commodities grown in the United States, onions are one of the hardest hit by import increases, up 14% at $221.1 million this year. Typically, onion imports would support the industry by providing supply during the off-season, but mid-February freezing temperatures in South Texas significantly reduced yields for onion crops, and that has translated to higher prices this year.
Onion shippers are looking to imports to make up for lost crops, which according to Dante Galeazzi, president, and CEO of the Texas International Produce Association, estimates point to damage of 20% to 30% of crops in 2021. In order to maintain control over market conditions in cases like natural disasters and the increased demand due to the pandemic, the USDA has historically agreed with producers/shippers to create something called a “Marketing Order.”
Marketing agreements and orders are initiated by the food industry to help provide stable markets for dairy products, fruits, vegetables, and specialty crops. Each order and agreement is tailored to the individual industry’s needs. Marketing Orders are a binding regulation for the entire industry in a geographical area and are approved by the producers and the Secretary of Agriculture. In short, Marketing Orders would allow onion growers in Texas to promote their products by collectively influencing the supply, demand, or price of particular varieties of onion.
Doug Plantada has been with the Allen Lund Company for two years and is currently a broker in training at the Los Angeles office.