January typically is when produce shipments from West Mexico build in volume and continue for the next three to four months. A majority of it crosses the border at Nogales, AZ.
Calavo Growers Inc. of Nogales expects to have the same acreage in Mexico this winter, but has shifted emphasis with commodities grown. It is increasing roma tomato volume, while and decreasing round tomatoes.
There will be a 15% increase on romas and a 15% decrease on round tomatoes.
The roma harvest got underway the third week of December, and round tomatoes will start in limited volume this week.
Significant volume of romas should be available by mid-January.
Volume of round tomatoes likely will be lighter than normal until mid-February.
Calavo also will have a winter grape tomato shipments out of Culiacan for the first time. The harvest starts in early January and loadings continue until April.
Crown Jewels Produce of launched its green bean program the first week of November and hopes to make the program year-round by adding product out of Baja California and Texas. The company also now ships cucumbers year-round, sourcing from Nogales, Baja California and Texas.
Crown Jewels was receiving Mexican green, yellow and gray squash, bell peppers and eggplant in November received its first colored hothouse bell peppers the first half of December.
Overall, the firm’s volume should be 20% to 30% higher than last year.
Divine Flavor of Nogales has transitioned its organic program from Baja California to West Mexico. The company is shipping cucumbers, grape tomatoes, watermelons and table grapes.
Earth Blend LLC of Nogales is shipping European cucumbers, Persian cucumbers, eggplant, squash, bell peppers and cherry tomatoes. The company has also added organic Italian squash and yellow squash.
Fresh Farms of Rio Rico, AZ already is looking forward to its spring table grape season out of Mexico, with volume growing each season. Mexican grape shipments usually get underway as the last of the Chilean import grapes finish.
Table grapes are described as backbone of its company. The grapes start in Jalisco in late March with several new varieties and an abundance of fresh grapes including Cotton Candy. Fresh Farms also will offer some organic squash.
MAS Melons & Grapes LLC of Rio Rico has honeydew melons, seedless watermelons, mini watermelons, cantaloupes and orange candy melons this season. The program will continued until late December out of northern Mexico and then switched to fields in the south for the winter and spring months.
The company had butternut, kabocha, spaghetti and zucchini squash until mid-December.
Grower Alliance LLC of Nogales, Ariz.-based has launched a logistics company and added a produce brokerage.
The move was made to get loads out the same day the produce was picked, resulting in a fresher product.
The new entity, which came about as a result of a merger with Lugo’s Trucking, formerly of Tucson, AZ., will have access to eight trucks, three of which will be dedicated exclusively to Grower Alliance. Eventually the fleet will expand.
For now, the new company will cover primarily a route from Nogales to the greater Los Angeles area, but eventually the service area will expand nationwide and into Canada.
Grower Alliance also has launched a produce brokerage called Grow-All Procurement. The brokerage will be able to offer items like citrus that Grower Alliance does not handle.
IPR Fresh of Rio Rico now has expanded its slicer cucumber program, which was offer intermittently in the past. Slicers began shipping in mid-November and will continue through April.
IPR Fresh also has increased volume of sweet corn through the end of March, and will continue to have its year-round supply of organic and conventional colored bell peppers as well as a green bell peppers.
IPR Fresh also will have more watermelon this winter, which will run through April, and has organic and conventional yellow and zucchini squash.
Produce House of Nogales expected to have similar volume this season out of Mexico.
New items include mini watermelons, seedless watermelons and honeydews.
The company also is entering into the southern state of Sinaloa to source tomatoes, roma tomatoes and bell peppers this season.
Tricar Sales Inc. of Rio Rico will have its same West Mexico program as last year, which will include cucumbers, European cucumbers, roma tomatoes, round tomatoes, eggplant and green, red, yellow and orange bell peppers.
A big rebound Chilean grape shipments in 2021-22 is forecast in a new estimate from the USDA’s Agriculture Foreign Agricultural Service.
Chilean grape Volume will rebound from the decline caused in the 2020-21 season from heavy rain.
At 805,000 metric tons, the USDA’s estimate of Chilean grape production for 2021-22 is up 22% from the 2020-21 season. Chilean grape exports also will increase 22.9% to 645,000 metric tons in the 2021-22 season.
The Oppenheimer Group (Oppy) reports excellent growing conditions in Chile so far this season, and expects to have good volume from January through May. Oppy is shipping Chilean pears, grapes, kiwifruit, citrus, pluots, plums, peaches, nectarines, cherries, berries, avocados, apricots and apples.
Oppy ship grapes 12-months a year and sources product from Chile and Brazil, as well as South Africa, Mexico and California.
The rebound in Chilean grape production is associated in part with increased production from new varieties planted in recent years and a return to more normalized climatic conditions, according to the USDA report.
During the 2020-21 season rainfall during the last week of January 2021 damaged the table grape crop that was ready for harvest in the central region of the country, specifically in the regions of Valparaíso, Metropolitana, and O’Higgins.
That rainfall pulled down Chilean grape production by 15.3%, according to the report, reaching 664,700 metric tons.
For the upcoming 2021-22 season, the USDA table grape exports will total 645,000 metric tons, a 22.8% increase over last season. The U.S. remains the main market for Chilean table grape exports, accounting for 48.5% of Chilean table grape exports.
In 2020-21, Chilean table grape exports to the U.S. totaled 254,811 metric tons, a 7.5% decrease compared with marketing year 2019-20.
Oppy notes one advantage the industry has is that the Chilean bulk grapes are shipped in break bulk vessels. These vessels are unloaded at different terminals from container shipments, and helps volume bypass the current bottleneck.
China is the second market for Chilean grapes, totaling 78,117 metric tons in 2020-21, a 30.1% decline over marketing year 2019-20.
Canadian company Execulytis Consulting reports growth will be largely driven by those under 25 years old increasing their purchasing power.
Likewise, Category Partners of Idaho Falls, ID notes more product availability and the narrowing price gap between organic and conventional produce items is also spurring the market. This price gap has gradually narrowed over time due to more product being available. This will continue to put downward pressure on prices in the future.
A recent Execulytics Consulting survey of 5,000 Canadian grocery shoppers found 39% of consumers under 25 (Generation Z) say organic is always their preferred choice or that they only buy organic products. This compares with 25% of those over 25 saying the same.
This survey revealed consumers under 25 have shown an interest in more specialty products including mangoes, limes and Asian vegetables, and this could provide a growth opportunity for such products. At the same time, they have purchased fewer bananas, apples, potatoes and strawberries than their older counterparts. While this younger age group is not fully in the marketplace yet, they will increase their purchasing power and thus drive growth of organic produce in the future.
During the pandemic, consumers moved toward products they perceived as providing a safer way to obtain food naturally, and this positively affected the organic market.
This perception of safety also gave a boost to packaged produce products. In the past, retailers have been focused on the number of unique items they carry, but the current labor shortage has put pressure on those offerings, which in turn has affected the number of unique organic items retailers can offer.
Carlson Produce Consulting of Chicago notes while the organic market has experienced double-digit growth in the past, that growth has slowed, saying the category is maturing.
However, the growth of indoor farming will boost the segment, and CPC reports there is significant opportunity for indoor farming to grow. The company reports the availability of product on a 52-week basis will be key to driving growth of specific items including blueberries. With this increased availability the market could get a boost from items that aren’t typically the highest drivers of sales.
Category Parnters notes unique salad blends coming out of urban greenhouse environments will drive growth as consumers are discovering those products, and they come with a higher retail price.
During the third quarter of 2021, total organic sales dollars increased by 3.4% compared with the same quarter of the previous year, according to the Organic Produce Network, Category Partners and Nielsen. This compared with a third quarter of 2020 that was influenced by pandemic-driven shopping. Conventional produce dollars increased by 1.3% in comparison. Berries, apples and packaged salads accounted for 85% of all organic fresh produce dollar growth during the third quarter. Berries specifically grew in sales dollars by 11% during the quarter.
In the future the growth of the segment will not be limited by demand but by supply. When consumers are surveyed, they indicate they believe organic produce is superior in every way, indicating a larger share of consumers will act on that preference as more options become more affordable.
Category Partners observes it is not a question of consumer demand, but supplier capabilities and grower capabilities.
During the third quarter of 2021, organic produce represented 12% of the total produce market in the U.S. and it is conceivable the organic segment could gain another 10 percentage points of growth over the next 10 years.
The Supply Chain has never been more appreciated or misunderstood than in the past year. This is a good time to give a reminder of the most important person in this wonderful chain of supplies traversing this great country: THE DRIVER. Yes, the driver!
They are the ones who make the whole system work. They work day and night to make sure the store shelves are stocked and ready for sales each and every day. They are the heroes of the road and must be recognized and appreciated or we are doomed to see them dwindle in numbers, leading to even more expensive transportation prices.
Years ago, when I was brokering loads from California to the Southeast, I had a favorite shipper. I moved two refrigerated loads a week to Atlanta for a small bakery operation. I never had trouble finding a carrier to take the loads. In fact, I had drivers call to see if those specific bakery loads were available and even had a few wait a day or two until they could take a load of pastries.
I assumed drivers liked the loads because they were one pick – one drop loads that were easy to haul, as they were very light weight. I could cover those loads for less per mile rates than just about any other loads available. That small shipper almost always paid the lowest rates around – often $100-$200 less than the going rate.
One day I asked a driver why they liked these loads so much. The driver gave me an answer that I have never forgotten. He told me that they treated the drivers very well and gave each one a case of their confectionary creations. They asked that they take good care of the load and deliver it in good order. The drivers were always appreciative and I never remembered a claim on any of those loads. I have often reflected on that shipper.
An inexpensive box of pastries was a genius move that spoke well of the bakery. I am sure their employees were also well taken care of in that kind of culture. They gained so much just by being decent to the drivers and sharing a box of goodies with them. In turn, their loads were well taken care of and they saved on their transportation costs.
Those pastries teach a great lesson. Treat people well and they will give you better service. Be decent and they will go out of their way to make sure your loads are protected. I have heard many good and bad stories of drivers’ treatment on the docks. The shippers and receivers who take good care of and appreciate the drivers will always do better.
In the produce world this is even more important, as the drivers must take extra care when handling perishable products. Take time to talk to the drivers and give them the information they need to take care of the product loaded into their trailers. Drivers are key and we must take care of them and recognize their role in this amazing supply chain. God bless the drivers!
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Kenny Lund graduated from Loyola Marymount University with a degree in Business Administration and managed the refrigerated transportation division in Los Angeles for eight years, before shifting full-time into managing the Information and Technology Department in 1997; becoming the Vice President of the department in 2002. Lund was promoted to Vice President – Support Operations in 2005. In 2014, Kenny, in the position of VP of ALC Logistics, began working with that division of ALC to sell their software solution (TMS). In 2019, Lund was promoted to Executive Vice President of ALC Logistics.
U.S. potato shipments for the 2021-22 shipping season is forecast by the USDA to be down slightly compared a year ago, according to the agency’s November crop production report.
The USDA notes U.S production of potatoes for the 2021 crop year is forecast at 413 million cwt., down 2% from 420.02 million cwt. produced last season.
Planted acreage, at 951,000 acres, is up 1% from the June estimate and up 4% from last season. Potato area harvested, at 942,300 acres, is up 3% from the previous year, while the yield forecast, at 438 cwt per acre, is down 23 cwt. from last year’s yield.
Idaho’s forecast is 132.09 million cwt., down 2% from 134.77 million cwt. last year. Yields in Idaho were 420 cwt. per acre, off 7% from 450 cwt. per acre last year.
Washington’s output is 93.3 million cwt., down 6% from 99.65 million cwt. last year. Yields in Washington were 585 cwt per acre, off 9% from 645 cwt. per acre last year.
The potato production estimate in North Dakota is 21.0 million cwt., down 12% from last year.
Idaho potato freight rates are up anywhere from 25 to 40 percent over last week, depending on destination. Idaho Falls to Atlanta, grossing about $7200.
California Giant Farms of Watsonville, CA is importing blueberries from Chile and expects increased volume from Mexico in 2022.
The company reports adding more growers and increased acreage in Chile. Blueberry production in Mexico is expected to continually increase in the coming months, with the growing region’s season currently in its early stages. The region, known for its strong spring harvest is on track to produce as expected.
California Giant started domestic harvest in early December, with a gradual increase in volume, and peak shipments occurring in April and May. The California Giant coastal organics program is the perfect complement to its import program for the continuity of supply throughout the year.
The grower/shipper is coming off Peru’s largest production year ever, breaking an all-time high export volume for the third consecutive year. This momentum is expected to continue throughout the Chilean season.
U.S. imports of organic fresh produce from Mexico and Peru are growing fast, U.S. Department of Agriculture trade numbers reveal.
U.S. trade statistics from September 2020 through August 2021 showed Mexican organic avocados topped all organic produce exports to the U.S. in value for the most recent 12-month period.
U.S. imports of Mexican organic avocados totaled $150.8 million from September 2020 to August 2021, up 23% from a year ago and up 29% from two years ago.
Running a close second, U.S. imports of Mexican organic blueberries totaled $143.8 million in 2020-21, up 55% from a year ago and almost three times as much as $50 million two years ago.
Mexico’s organic banana shipments to the U.S. totaled $83.3 million, up 10% from $77.8 million in 2020 and more than 60% higher than two years ago.
U.S. imports of Mexican organic greenhouse bell peppers have exploded in the past five years, rising from $13.3 million in 2016 to $81.5 million in 2021.
Meanwhile, U.S. imports of Mexican organic mangoes rose from just $8 million in 2016 to more than $45 million in 2021, according to the USDA.
U.S. imports of Mexican organic squash totaled $19 million in 2021, up from less than $1 million in 2017.
Mexican organic lemons shipments to the U.S. totaled $7.6 million in 2021, up 18% from last year and nearly three times more than $2.8 million in 2018.
Organic fresh strawberry shipments to the U.S. totaled more than $2 million in 2021, up from zero in 2020.
Peru’s blues
Peru also has been rising fast as a supplier of organic produce.
U.S. imports of Peruvian blueberries totaled $64.7 million in 2021, up 14% from last year and more than twice the value of two years ago.
U.S. imports of Peruvian organic bananas totaled $38.8 million in 2021, down 6% from 2020.
Peruvian organic ginger shipment to the U.S. totaled $29.4 million, up 47% from 2020 and more than twice 2019 level of $12.8 million.
Peru has become the largest supplier of asparagus in the world, with 72 percent of its volume being imported by the U.S.
Agrara reports between January and October, Peruvian fresh asparagus exports reached 107,431 tons worth $330 million, showing an increase of 13 percent in both volume and value compared to the same period last year.
Border closings and flight restrictions during the first half of 2020 resulted in difficulties, with more than 80 percent of shipments being made by air.
There were positive results during the second half of the year, but it was not enough to counteract the decline, although it served to keep the numbers very similar to those of 2019.
From January to July 2021, exports totaled 63,302 tons worth $185 million, 24 percent more in volume and 19 percent more in value when compared to the same period the previous year. This year’s increase in supply has caused a slight contraction in prices of 4 percent, which fell to $2.98 per kilogram.
From August to October, asparagus shipments reached 45,129 tons worth $144 million, 1 percent more in volume and 6 percent more in value when compared to the same period last year.
According to estimates, asparagus exports at the end of 2021 will total 140,500 tons worth $422 million, which would reflect a growth of 10 percent in volume and value.
This should result in Peru would once again being the largest supplier of asparagus in the world, since Mexican asparagus exports are estimated to reach $415 million at the end of 2021, coming in second in the supplier ranking.
The main markets for Peruvian asparagus are the U.S. (with a 72 percent share), the Netherlands (7.4 percent), Spain (7 percent), and the UK (6.9 percent).
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.
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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.
