California navel orange shipments as winding down, although loadings are expected through the end of May.
Markon Cooperative Inc. of Salinas, CA reports supplies of smaller sizes (113s and 138s) are tightening, with elevated prices expected for the remainder of the navel season.
Valencias
California’s Valencia harvest will begin around the first week of May and run through September
Expect stocks to be dominated by larger 72- and 88-count sizes
Navels
California Navels are expected to ship through the end of May
Small sizes (113- and 138-count fruit) are diminishing as the crop matures. Quality and taste are exceptional Southern San Joaquin Valley oranges and other citrus – grossing about $9000 to New York City.
The Flavor Tree Fruit Company of Hanford, CA., is gearing up for good volume cherry shipments this season. Peak loadings will occur in May.
The company reports there have been ideal growing conditions in California in all of its cherry-growing regions.
Although the business doesn’t see the high yields of a year ago, it expects larger sized fruit. That still should translate into good volume overall.
The Flavor Tree Fruit Company has been preplaning as much as possible in all areas of logistics. This includes earlier than normal ordering of packaging and materials months in advance of the season before it was even know how big the crop would be.
The company also expressed concern over the availability of transportation during the season due to skyrocketing diesel fuel prices, etc.
Stemilt Growers LLC, headquartered in Wenatchee, Wash. kicks off its domestic cherry season in the Golden State and operates as Chinchiolo Stemilt California, which has a cherry-packing facility located in Stockton, CA. The company’s cherries are grown in both new and established districts in California’s San Joaquin Valley.
The company holds a unique position in the cherry industry, boasting the longest cherry season.
Stemilt expects to harvest cherries in late April, with good volume in early May. Peak volumes should run for three consecutive weeks beginning around May 9 through Memorial Day.
The company is looking forward to the possibilities of more 5 River Islands cherries from the Delta region in California.
As Port Manatee’s newest non-aggregate customer, Chiquita will begin cargo delivery of their bananas to Port Manatee on a bi-weekly schedule. Previously, Chiquita Bananas arrived at local grocers by truck delivery after cargo delivery to Port Everglades.
During a Port Authority meeting recently, Port Manatee Executive Director Carlos Buqueras announced a new customer to Port Manatee – Chiquita.
After thanking the port authority and port staff for their support and efforts, Buqueras called the accomplishment a “big deal” citing the arrangement with a world-renowned customer, Chiquita Banana.
“These bananas can be delivered directly to your local supermarkets instead of being trucked for hours from other parts of Florida,” Buqueras explained.
The direct import to Port Manatee will not only spare the bananas a several-hour commute by truck for distribution to Manatee supermarkets but the import is also expected to cut back on pollution and fuel consumption previously expended for their highway delivery to the region.
The newly announced arrangement with Chiquita Banana comes after the October 2021 announcement that Port Manatee had reached an extended lease agreement with decades-long customer, Florida-based Del Monte unit in Coral Gables, through at least 2026.
Port Manatee reported a 53.3 percent year-over-year increase in the number of 20-foot-equivalent container units crossing its docks, reaching 135,660 twenty-foot equivalents (TEUs) in the fiscal year ending Sept. 30, 2021.
Chiquita is already chartering space on Del Monte vessels that are arriving at the port, and Chiquita Banana containers have already begun to move across the docks at Port Manatee.
Port Manatee is a county-owned deepwater seaport located in the eastern Gulf of Mexico at the entrance to Tampa Bay in northern Manatee County, Florida. It is one of Florida’s largest deepwater seaports and also regarded as the closest U.S. deepwater seaport to the Panama Canal. The port handles a variety of bulk, breakbulk, containerized, and heavy-lift project cargoes.
With Florida spring vegetable shipments to peak later this month, Florida blueberry shipments are already there.
Florida’s blueberry harvest is in full swing and state officials estimate acreage at 5,200 and production near 20 million pounds.
Blueberries grow throughout the state of Florida, primarily from Hendry County in the south to Alachua and Putnam counties in the north, Doug Phillips, University of Florida’s blueberry extension coordinator, said in a news release. “There are some rabbit eye blueberries grown in the Florida Panhandle, mostly on smaller farms with U-pick operations,” he said. “Most blueberries grow in central Florida, although there is significant acreage in both the north-central and south-central regions.”
Florida has the first U.S.-produced blueberries to reach the domestic market in early spring. Harvest generally begins in March in the south-central and central regions and continues through early May, when market prices decline. Phillips said the state’s market window is when prices are typically the highest, which is an advantage for Florida growers. The state ranks eighth in the U.S. in terms of utilized blueberry production.
“We are not very large, but we do produce the first fresh fruit of the country and that makes us very relevant,” Phillips said.
Consumers are more concerned about inflation than COVID-19 these days, according to the monthly primary shopper survey series by IRI in partnership with Anne-Marie Roerink, president of 210 Analytics.
“In January, 38% of the population were extremely concerned over COVID-19, which was down sharply from 66% in April 2020,” Jonna Parker, team lead for IRI Fresh, said in a news release. “Shoppers are very aware of food inflation (89%) and the vast majority (95%) worry about it.
“In total, 42% of shoppers are extremely concerned about the price increases they are seeing across the store — which means food inflation has more people on high alert than COVID-19 as of January 2022,” Parker said.
Like the inflated prices of products overall, fresh produce prices are also higher than last year.
The combined effect of concerns over COVID-19, inflation and supply chain challenges explains why shopper demand remains in flux as we enter the third pandemic year, Roerink said. In 2022, IRI, 210 Analytics and the International Fresh Produce Association continue to team up to document the dynamic marketplace’s impact on fresh produce sales.
The January survey showed several in-depth findings about fresh produce sales, volume, prices and shopper behavior.
In January 2022, the price per pound for total fresh produce increased by 9.0% over January 2021. The latest 52-week look is milder, at 7.1% increase, given the much milder inflation in the second quarter of 2021. Vegetable inflation is far below average, but fruit prices increased by nearly 14%.
“Consumers are aware and concerned about the inflation they are seeing,” Joe Watson, vice president of retail, foodservice and wholesale for the IFPA, said in the release. “And as a volume-driven business, the industry is concerned, as well, and doing everything in its power to get adequate supply to the stores and keeping prices down.”
The consumer price index increased 7.5% for the 12 months ending January 2022, the highest increase in 40 years, according to the Bureau of Labor Statistics.
IRI-measured price per unit for all food and beverages in multioutlet stores, including supermarkets, club, mass, supercenter, drug, military and other retail food stores, also shows that prices continued to rise over and above their elevated 2020 and 2021 levels.
Perishables, including produce, seafood, meat, bakery and deli, had the highest year-over-year sales growth in 2021, at +6.2% out of all food and beverages. However, fresh produce sales gains were below average, at +4.4%. Frozen foods had the highest increase versus 2020, at +26.0%.
From a dollar sales perspective, January 2022 was another great month for fresh produce, surpassing the records set in 2020 and 2021.
However, dollar gains were inflation-boosted while units and volume sales declined year on year.
“The risk in the current levels of inflation is volume pressure,” Watson said in the release. “At the same time, it is hard to measure the effect of supply chain disruption, several winter storms affecting the Northeast and the impact of frozen and canned purchases on fresh produce sales. In all, January 2022 sales still tracked ahead of January 2020, which was not yet affected by the pandemic purchase patterns.”
Each of the five January weeks generated $1.3 billion or more for the fresh produce department, with the week ending January 16 being the biggest, at $1.43 billion. While year-on-year dollar sales were higher each week, volume sales were down. Year-on-year decreases varied from -1.7% the week ending January 16th to -6.2% the first week of the year.
“Our monthly shopper surveys are finding that consumers are hyperaware of inflation and are trying to mitigate the increases as much as possible,” Parker said in the release. “And that is exactly what we are seeing in recent trip baskets. On average, people are spending roughly the same amount of money per trip, but they have many fewer items in their baskets.
“Saving by buying less is typically one of the later money-saving measures during periods of high inflation, but with the lack of promotions and already cooking a lot more at home, consumers are drawing on the lessons they learned and fine-turned during the Great Recession,” she said. “For many, that means buying less quantity and we are seeing that very clearly in fresh produce.”
January 2022 gains were down from the fourth quarter growth numbers across the board. Year on year, vegetables dropped into the negative.
Despite above-average inflation for fresh produce, its share of dollars remained below average in January 2022. Shelf-stable fruits had a very strong January, with year-on-year sales gains of 7.5%. Both frozen and shelf-stable are heavily impacted by supply chain disruptions and assortment, and inventory levels have been down significantly over recent months.
January Fresh Fruit Sales
“On the fruit side, all top 10 sellers gained versus a year ago with the exception of bananas,” Parker said in the release.
In a change from 2021’s reporting methods, this year’s reports will show the increase in dollars and the increase in volume versus a year ago.
“The difference between the two percentages is a close match for inflation on a per-pound basis, though lower promotional levels also play into higher dollar gains,” she said.
For instance, while January 2022 avocado dollar sales were up 13.3%, pound sales were down 12.4%, which would translate into inflation of about 26% on a per-pound basis, Parker said. In looking at the actual numbers, the average price per pound for avocados in January 2022 was up 29.4% versus a year ago, while promotional levels were down by 15.4%.
“This new reporting will help provide a better look at the effects of inflation, plus less promoting, on the dollar performance,” she said.
January Fresh Vegetables Sales
“The top 10 sellers on the vegetable side had a mixed performance in terms of dollar sales growth but has been very consistent in makeup,” Watson said in the release. “Tomatoes, potatoes and packaged salads have been the top three sellers for many months running. The importance of salads is further underscored by lettuce sales, in fourth place.”
Carrots had the strongest volume growth performance, pulling even with year-ago levels.
What’s next?
The marketplace disruption caused by inflation, supply chain challenges and COVID-19 is not showing signs of letting up any time soon, the report shows.
Shoppers are reacting several ways:
At 82.4%, the at-home share of all meals reached its highest level in a year, which favors spending at food retail;
At the same time, the inflationary levels in retail have two-thirds of shoppers looking for one or more money-saving measures. Inflation will likely continue to drive dollar gains for most categories in the foreseeable future but is pressuring unit and volume sales;
For the first time since the onset of the pandemic, a greater share of shoppers (29%) feel their financial situation a year from now will be worse versus better (23%). About half, 48%, think it will be unchanged. This outlook may prompt a greater focus on money-saving measures beyond the current marketplace behaviors alone; and
Continued rising inflation and shortages are driving stock-up behaviors among 42% of shoppers. While 58% do not buy more than they need, 14% stocked up on one or more items out of concerns for continued price increases and 19% stocked up out of fear that the item will be out of stock next time.
Griff Lynch, Georgia Ports Authority’s (GPA) executive director has unveiled plans to expand the port’s container capacity by 60 percent. The enhancements will bring the Port of Savannah’s annual capacity from 6 million twenty-foot equivalent container units to 9.5 million TEUs by 2025.
“Our expansion is being matched by incredible growth in both warehouse space and workforce,” Lynch said. “The public and private investment that we’re seeing, as well as the number of people being drawn to the business, make Savannah the hottest market in the country for transportation and logistics.”
Projects now under way will add 1.7 million TEUs of annual capacity in four months. GPA’s Peak Capacity project has already added 400,000 TEUs in container handling space to the Garden City Terminal and will make room for another 820,000 TEUs by June. In the same month, a new container yard just upriver will add another 500,000 TEUs of capacity. Separately, the Garden City Terminal West project will add up to 1 million TEUs in phases by 2024.
“GPA’s role facilitating commerce – even in difficult times – is key to Georgia’s long-term economic success, and I am proud of the can-do spirit that sets our ports apart from the rest of the nation,” said Georgia Gov. Brian Kemp. “The Ports of Savannah and Brunswick together play a major role in positioning Georgia as the go-to state for economic development, and I am thankful for all the hardworking men and women who have hunkered down to move Georgia forward over the past year.”
During Lynch’s presentation, he showed how Savannah has become a national leader in supply chain solutions and effectively eliminated its backlog, while accommodating 18 consecutive months of growth. In Calendar Year 2021 alone, the GPA moved a record 5.6 million TEUs, for an unprecedented expansion of nearly a million TEUs, or 20 percent, compared to 2020.
In his comments before a capacity crowd, Lynch addressed a series of key logistics solutions, including the role six pop-up container yards – which add 500,000 TEUs of annual container space – are playing as a supply chain relief valve. He also spoke to the nation’s trucker shortage, and how Savannah has reversed that trend by registering 80 new drivers a week to serve Garden City Terminal, or a total of 1,200 new drivers and 370 new trucking companies just since November. Lynch also detailed GPA’s workforce development effort, the YES+ program. Now, in addition to hiring new high school graduates to work in maintenance and container operations, GPA has broadened the program to include career opportunities for young workers in other departments.
“Higher demand for our services is the reason we have expedited major expansions at the Port of Savannah,” said GPA Board Chairman Joel Wooten. “Georgia’s growing manufacturing, distribution and retail sectors will mean additional cargo through the Port of Savannah, driving the need for increased container handling capacity.”
The Savannah market added 6.5 million square feet of industrial space in 2021, for a total of 84 million, according to Colliers International. Savannah led the nation in terms of net absorption of overall inventory, so the vacancy rate remains at 2.3 percent. Another 17 million square feet are now under construction, lifting the market beyond 100 million square feet to better accommodate heightened cargo volumes.
Lynch thanked the 1,200 guests for coming to the first live State of the Port since 2019, and congratulated them on persevering through the previous, challenging year. The unprecedented level of trade crossing GPA’s docks is expected to continue well into 2022, Lynch said.
To ensure Savannah’s ability to handle these volumes, GPA is super-sizing its Berth 1, increasing on-dock capacity by 25 percent. In the spring of 2023, the expanded berth will allow Savannah to simultaneously serve four 16,000-TEU vessels as well as three additional ships. The renovations will add an estimated 1.5 million TEUs per year of berth capacity.
Another game changer for the GPA is the Savannah Harbor Expansion Project, which will come online in March. The deeper river channel will allow 16,000+ TEU vessels to take on heavier loads and transit the river with greater scheduling flexibility.
“This project has been more than 20 years in the making,” Lynch said. “Through it all, there has been strong support across several administrations, from the General Assembly and our congressional delegation. A special debt of gratitude goes to the late Senator Johnny Isakson, who shepherded our harbor deepening efforts through the federal process.”
Shipments of Chilean table grapes and other fruits do not have sufficient coverage from shipping lines to reach the United States market at the height of its growing season.
According to a statement from the Chilean fruit growers association Fedefruta, a lack of cargo space for fresh fruit in the Valparaiso port is generating the problem.
Fedefruta president Jorge Valenzuela said that growers are asking that “for these two weeks they give us space with cold storage that can operate with greater frequency”. The timeframe is particularly tight since “we are looking at the last shipments before the marketing order takes effect in the United States”.
The scenario is affecting table grapes to the greatest extent, as they are subject to market controls in April, and also when the industry is harvesting at its highest level.
“We are talking about a very perishable product, and this dictates the timeframe for when it is harvested, packed and transported. We thought that the fruit would have shipping priority in these weeks of the year:, Valenzuela added.
He also called on the port operators, TPS and TPV, to make greater commitments in future seasons to offer conditions that allow the industry to return to the full shipping capacity required to export this crop.
While table grapes have the biggest impact, stone fruit and the last of blueberry shipments from the central growing regions are also impacted. Valenzuela said that the weekly shipping frequency is about half of what it used to be, which “is having an important affect on most table grape growers that depend on these weeks to get their product to the North American market”.
The statement clarified that this issue is independent from delays in arriving to the market, which have also led to problems in meeting commitments with the supply chain to the north.
He also said that there must be an understanding that fruit must ship in a certain timeframe, despite that the ports are under high pressure to receive imported goods and products which are exported year round.
Texas onion shipments are underway with spring underway, just in time as Northwest storage onions are running low on supplies.
In fact Northwest storage shipments are expected to finish the season sooner than normal. Washington state onion loadings should be finished in early April, instead of lasting through May.
Texas yellow onions are in good supply, along with red onions from the Lower Rio Grande Valley.
Idaho/Oregon onion shipments will continue into April, although some suppliers have completed their season. Stocks typically ship into May.
California onions will be available from the Imperial Valley beginning the week of April 18.
New Mexico onion shipments will open in early June.
Keystone Fruit Marketing based in Greencastle, PA. will start Vidalia onions April 12th and Walla Walla, WA onions in June.
Texas and Mexican onions – grossing about $5000 to Chicago.
Peru is now the world’s third largest exporter of ginger, according to the Center for Research on Global Economy and Business of the Association of Exporters (Cian-Adex).
In 2020 China was the world’s leading exporter of ginger with $718.5 million, accounting for 52.9 percent of the total. China was followed by the Netherlands with $155.6 million and Peru with $105.6 million, as reported by Andina.
Peru mainly exports fresh ginger (91.9 percent) followed by dehydrated ginger (3.8 percent), juice (3.6 percent), and powdered ginger (.7 percent). Exports of puree, candied ginger, and infusions jointly represented .03 percent.
In 2020, organic exports grew 206.4 percent and conventional 102.5 percent. From January to November 2021, shipments of Peruvian ginger totaled $81.2 million, 13.4 percent lower when compared to the same time period in 2020.
The ginger produced in Peru reached 42 nations, led by the U.S. with $39.1 million, representing 48 percent.
The U.S. was the world’s leading importer of ginger with $173.4 million (12.2 percent of the total), followed by the Netherlands with $150.2 million (10.5 percent), and Japan with $106.8 million (7.5 percent).
Murrieta, CA – With California avocado season officially underway, West Pak Avocado, a California-based avocado supplier, saw record volume in February.
“Between a later big game this year and the week-long hiccup in supply from Mexico, California fruit saw a record 10.2 percent market share in February,” said Senior Vice President of Sales and Marketing Doug Meyer. “At this point, over 10 percent of the California fruit for the season has been harvested, which is typically only a few percent by the end of February.”
Early preseason forecasts by the California Avocado Commission (CAC) project a 15 percent increase in volume over 2021 with a 306-million-pound crop in 2022, with the Hass variety making up the majority of the harvest. Most of the California avocado season volume is expected to occur from mid-April through mid-July, with the season winding down during the months of August, September, and October.
West Pak is looking to have a good variety of sizes by mid to late April, which is when the company typically sees the first major uptick in harvest volume of locally-grown avocados in preparation for Cinco de Mayo (May5th).
For 2021, the Hass Avocado Board lists the volume of California avocados at nearly 251.6 million pounds, which is just under 9 percent of the almost 3 billion pounds total incoming volume of avocados arriving in the U.S. market from all suppliers.
California has nearly 3,000 commercial avocado growers and according to Rabo Research, per capita consumption of avocados in the U.S. currently stands at 9 pounds but could surpass 11 pounds by 2026.
West Pak Avocado is a family owned and operated company that has been growing, packing, shipping, and distributing premium avocados for nearly 40 years.
