Fresh produce prices are up, and the majority of consumers are concerned about the rising cost of their food and beverage bill, including fruits and vegetables.
That’s according to the March 2022 fresh produce report titled “Inflation Remained the Big Story for Fresh Produce in February 2022,” from IRI and 210 Analytics.
The report, covering the four weeks ending Feb. 27, shows that, while dollar sales are “looking good,” the “volume pressure is real,” 210 Analytics President Anne-Marie Roerink told The Packer in an email. “Combined fruit/vegetable inflation is now trending in the double digits with no signs of slowing down any time soon.”
Measuring multi-outlet stores in the U.S., including supermarkets, club, mass, supercenter, drug, military and other retail food stores in February, market research company IRI found continued grocery price inflation over and above the elevated 2020 and 2021 levels. In February 2022, the average price per unit across all foods and beverages was up 10.3% versus the same weeks in 2021, and up 16.8% versus February 2020.
“In our February IRI shopper survey, we found that 90% of shoppers have noticed the price increases across the various grocery departments and a whopping 96% of those consumers are concerned about it,” Jonna Parker, team lead for IRI, said in the report. “In response, 75% of consumers have already made one or more changes to their grocery shopping, up considerably from 64% in January 2022.”
Fresh produce prices are elevated over last year and at a slightly higher rate than total food and beverages, reported Roerink, noting that in February 2022, the price per pound for total fresh produce increased by 10.9% over February 2021. “The latest 52-week look was lower, at 7.6%, given the much milder inflation in the second quarter of 2021,” she reported.
While fruit inflation reached its highest level yet (up 16.1%) in February, fresh vegetable inflation was far below average (up 6.2%), according to IRI data.
“Fresh produce inflation reached double digits and consumers’ concern over these kinds of price increases is shared by the industry,” said Joe Watson, vice president of retail, foodservice and wholesale for the International Fresh Produce Association. “Consumers are focused on finding good prices and promotions and minimizing waste at home, which puts great emphasis on freshness and shelf life in the store. At the same time, consumers balance their spending across canned, frozen and fresh purchases, and many simply buy less to stick to their budgets. Many of the measures pressure volume sales.”
Fresh produce sales reached $5.6 billion in February 2022, and while this figure surpasses the record set in 2021, dollar gains were inflation-boosted and units and volume sales declined year on year, reported Roerink.
“We certainly have to acknowledge that big price increases tend to pressure volume sales,” said Watson. “But it is also important to note that it is hard to measure the effect of supply chain disruption: we cannot sell what we do not have. Out-of-stocks have been a severe problem for departments across the store since the start of the pandemic and fresh produce has also been affected by the labor, transportation and other supply chain issues. Actively communicating and providing recommendations for alternatives are important best practices in case of out-of-stocks.”
A deeper dive into dollar versus volume sales shows that fresh produce pound sales trailed behind year-ago levels all throughout 2021, according to the report. “In January 2022, pound growth dropped to its lowest level since the second quarter of 2021, and the performance worsened in February,” noted Roerink. “While dollars increased by 4.6%, volume dropped by 5.7%, creating a 10.3 percentage point gap between volume and dollars due to inflation, as well as lower levels of promoting.”
A look at the top 10 fresh produce items in terms of dollar gains further reveals rising inflationary pressure.
“The top 10 in absolute dollar gains showed that smaller sellers, limes and mixed fruit, can still be big contributors to department growth,” said Parker. “But more than anything, it shows the impact of inflation. With the exception of mixed fruit and salad kits, all top 10 growth areas had double-digit inflation, led by much higher prices year over year for limes and avocados.
“Meanwhile, salad kits continue to be strong sellers, and I think at-home lunch is an important part of that,” Parker continued. “We still have a lot more people working from home today than we did pre-pandemic and our February survey showed that salads are among the top five things people make for lunch when at home.”
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.
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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.
Mas Melons and Grapes of Rio Rico, AZ has spring shipments of honeydew, seedless watermelon, orange candy melons and hard squash. The company also ships a broad variety of table grapes, including early sweets, sweet celebrations, sweet globes, Ivory, perlette, sugraone, flame and some other new late reds.
The fruit and vegetable shipper has over 25 years of experience in the industry and its core items are melons and grapes. This also will be the first time for handling spring hard squash.
Mas has just wrapped up its winter season and is transitioning to northern Mexico for the start of its busy season in early April. This is when the company offers all of its commodities.
The shipper’s seedless watermelon and table grape programs will be in peak volume following ideal growing conditions last winter. It will be loading trucks with both cartons and bins of seedless watermelon and a whole lineup of table grapes through spring and summer. Honeydew and orange candy melons should have supply until early July.
The Georgia Department of Agriculture and the Vidalia Onion Committee announced April 12th as the official pack date for the 2022 Vidalia onion season. Shipments can begin that day.
“In the 2022 season, approximately 10,000 acres of Vidalia onions were planted by 60 registered farmers across 20 southeastern Georgia counties,” said VOC Chairman Cliff Riner. “Representing about 40% of the sweet onion market across America, Vidalia onions are sold in all 50 states and most of Canada.”
Originally discovered by accident in the 1930s during the Great Depression, Vidalia onions have grown to be considered as a favorite across America. The Vidalia Onion Act of 1986 granted the trademark of the name “Vidalia onions” and defined the growing region in South Georgia. Vidalia onions are grown from a distinctive Granex seed, then packed and sold on or after the official pack date annually.
Only available for a limited time each year, Vidalia onions hitting grocery store shelves often signals spring has sprung for fans near and far from the onions’ home state of Georgia. The pack date is determined by growing season soil and weather conditions to ensure the highest quality Vidalia onions. The Vidalia Onion Advisory Panel unanimously voted April 12th as the 2022 pack date.
The pack date rings in the start of the Vidalia onion season, where shoppers can get their hands on the famous seasonal treat between April to August. Known for their sweet, mild flavor, these onions compliment any dish – from soups to salads and even desserts.
Shuman Farms of Reidsville, GA reports collectively with its family of farms, it grows, packs, and ships 2,200 acres of Vidalia onions in a roughly 10,000-acre industry. The company notes this year’s crop has good quality with a variety of sizing available. Shuman Farms is a year-round grower, packer, and shipper of premium sweet onions from Vidalia, Peru, and Texas.
HERSHEY, Pa. — Mushrooms have been making headlines due to their many health advantages.
Not only do they lower one’s risk of cancer and premature death, but new research led by Penn State College of Medicine also reveals that these superfoods may benefit a person’s mental health.
Penn State researchers used data on diet and mental health collected from more than 24,000 U.S. adults between 2005 and 2016. They found that people who ate mushrooms had lower odds of having depression.
According to the researchers, mushrooms contain ergothioneine, an antioxidant that may protect against cell and tissue damage in the body. Studies have shown that antioxidants help prevent several mental illnesses, such as schizophrenia, bipolar disorder and depression.
“Mushrooms are the highest dietary source of the amino acid ergothioneine — an anti-inflammatory which cannot be synthesized by humans,” said lead researcher Djibril Ba, who recently graduated from the epidemiology doctoral program at the College of Medicine.
“Having high levels of this may lower the risk of oxidative stress, which could also reduce the symptoms of depression.”
White button mushrooms, which are the most commonly consumed mushroom variety in the U.S., contain potassium, which is believed to lower anxiety. In addition, certain other species of edible mushrooms, especially Hericium erinaceus, also known as Lion’s Mane, may stimulate the expression of neurotrophic factors such as nerve growth factor synthesis, which could have an impact on preventing neuropsychiatric disorders including depression.
According to the researchers, college-educated, non-Hispanic white women were more likely to eat mushrooms. The average age of surveyed participants was 45, and the majority (66%) were non-Hispanic white people.
The investigators observed a significant association between mushroom consumption and lower odds of depression after accounting for socio-demographics, major risk factors, self-reported diseases, medications and other dietary factors. They said, however, that there was no clear additional benefit with relatively high mushroom intake.
“The study adds to the growing list of possible health benefits of eating mushrooms,” said Joshua Muscat, a Penn State Cancer Institute researcher and professor of public health sciences.
The team conducted a secondary analysis to see if the risk of depression could be lowered by replacing a serving of red or processed meat with a serving of mushrooms each day. However, findings show that this substitution was not associated with lower odds of depression.
Prior to this research, there have been few studies to examine the association between mushroom consumption and depression, and the majority have been clinical trials with fewer than 100 participants.
The researchers said this study highlights the potential clinical and public health importance of mushroom consumption as a means of reducing depression and preventing other diseases.
The researchers noted some limitations that could be addressed in future studies. The data did not provide details on the types of mushrooms. As a result, the researchers could not determine the effects of specific types of mushrooms on depression. Food codes issued by the U.S. Department of Agriculture were used to determine mushroom intake; therefore, some entries may have been misclassified or inaccurately recorded.
John Richie and Xiang Gao from Penn State Cancer Institute; Laila Al-Shaar and Vernon Chinchilli from Penn State College of Medicine; and Robert Beelman from Penn State College of Agricultural Sciences also contributed to this research. The researchers declare no conflicts of interest or specific funding support.
California Giant Berry Farms is expecting big volumes of a full berry patch led by the vigorous Florida and Southern California strawberry shipments.
“Florida strawberries are currently hitting their peak. We’re seeing a week-over-week increase in top quality fruit, and we’re expecting solid volumes out of Florida through late March,” said J.T. Tipton district manager at California Giant Berry Farms.
“Simultaneously, mild winter weather conditions, coupled with healthy plants have pushed our Southern California strawberry supply about 15% ahead of where it was last year at the same time.”
However, Tipton echoes industry-wide challenges that have plagued produce since the start of the pandemic. Inflation, labor issues and logistics are still problematic, despite Florida peaking and Southern California’s peak volumes being on the horizon.
“We’re anticipating peak volumes out of Oxnard to start in late March and throughout April. Santa Maria is not far behind with their peaks anticipated in April throughout May,” he said.
Watsonville and Salinas started harvesting in early March and is expected to hit its peak in June. Overall, very strong volume in is expected in May.
For California Giant Berry Farms’ director of bushberry supply, Markus Duran, the optimistic outlook is shared.
The Florida blueberry season is just getting underway a potential loss of 10-15% looming. However, the company still expects a strong domestic blueberry season.
Additionally, California Giant Berry Farm’s Oxnard organics program has increased production every week since the beginning of December, with its peak strategically planned earlier than ever, perfect for meeting ever-growing consumer demand for stateside blueberries. Peak volumes out of Oxnard will occur from mid-March through May.
For the remaining berry patch — raspberries and blackberries — positivity is shared. California Giant’s acreage of bush berries has increased across the board, making a consistent supply of exceptional fruit available year-round.
Chilean fresh fruit export volume totaled 2.62 million tons, equivalent to $5.05 billion FOB, during the calendar year 2021, according to The Chilean office of Agricultural Studies and Policies (Odepa) and reported by Portal Portuario.
Exports registered an increase in volume of 2 percent while its value dropped by 1.9 percent compared to the same period the previous year.
The main commodity exported were cherries, registering a volume of 336,000 tons equivalent to $1.589 billion FOB, reflecting an increase of 49 percent in volume and 1 percent in value compared to the same period the previous year. The main destination was China with 89 percent of the total value of cherry shipments.
Tables grapes are next in line, registering 525,000 tons equivalent to $927 million FOB, registering a decrease of 13 percent in volume and a drop of 10 percent in value compared to the same time period the previous year. The main destinations were the U.S. with 47 percent and China with 15 percent.
Apples came in third, with 643,700 tons equivalent to $617.2 million FOB registering a decrease of 2.5 percent in volume and 5 percent in value when compared to the same time period the previous year. The main buyers were Colombia with 12 percent, the U.S. 11 percent, the Netherlands 8.3 percent, and India 7.8 percent.
Blueberries came in fourth with sales of 113,000 tons equivalent to $573 million FOB. They mainly shipped to the U.S. with 48 percent, the Netherlands 19 percent, and the UKL 9 percent.
These four commodities along with kiwifruit and avocados account for 83 percent of the total value of fresh fruit exported during the analyzed period.
Colombia plans to increase avocado exports to the U.S. by 30 percent this year, after exporting 2,376 tons of avocados to the U.S. a year ago.
Corpohass reports growers are forecasting exports to the U.S. will continue increasing by 40 percent in 2023 and 50 percent in 2024. Corpohass promotes the production and marketing of Columbian avocados.
The organization has 262 farms capable of exporting up to 19,566 acres, and there are 313 farms under surveillance (for qualification) adding up to 22,823 acres.
Colombia in 2021 had a growth of 25 percent in tons exported to the world, while in value the growth was 39 percent compared to 2020.
Corpohass reports exports have already exceeded $200 million to 34 destinations around the world. During 2022 Corpohass expects a similar growth, of 25 percent to 30 percent.
REEDLEY, CA — Fruit World, a family-owned, grower-shipper of organic and conventional citrus and more, is reporting a strong season for their premium specialty citrus, including organic Minneola tangelos, Blood oranges and Cara Cara oranges. While California growers are experiencing shortened seasons of navel and mandarin oranges, Fruit World expects a gap-free and strong transition to Valencia season.
“Between last year’s heavy crop and early summer heat, the state has lower production volumes of navels and mandarins, but we’re maintaining good quantities to ship through an early season end of late-March to early-April,” said Bianca Kaprielian, Fruit World co-founder and CEO. “Ending the season early ensures high quality and exceptional color throughout. And since citrus is an alternate bearing crop, we predict a return to steady volumes next season.”
Fruit World expects a seamless transition from navels to Valencias by mid-April. The company anticipates consistent volumes of the summer variety, especially as the season ramps up in May, with availability through the beginning of October.
“We’re also seeing impressive volumes of quality fruit for our specialty citrus varieties, and expect to be shipping into April,” Kaprielian continued. “The overall quality is top notch, and supply is strong for our Minneolas, Blood oranges and Cara Caras, with peak flavor expected from now through the end of the season.”
This is also shaping up to be a banner year for organic lemons from both the Desert (District 3) and Central Valley (District 1) regions, with load volumes available weekly and excellent ad opportunities into May.
Kaprielian stated, “Our statewide growing regions provide us with year-round supply of lemons and orange varieties. In addition to coolers in the desert and Fillmore, we offer consolidated pickup—including desert production—at our cooler in Reedley.”
In the past five years, imports of Peruvian ag products have soared from seventh place in the ranking in 2017, to third place in 2021, a position that it retains for the third consecutive year.
At the same time, the demand for food in the U.S. has shown a steady rise. This was reflected in the increase in imports, going from $53.2 billion in 2017 to $63.5 billion in 2021, reflecting a growth of 19 percent.
During this period, one of the most favored countries with the highest U.S. demand was Peru. Purchases of fruits, vegetables, and grains went from $2.04 billion in 2017 to an estimated $3.23 billion in 2021, reflecting a growth of 58 percent, as reported by Agraria.
In 2021, grape imports in the U.S. totaled 680,162 tons for $2.073 billion, 2 percent more in volume and 10 percent more in value compared to the previous year. The main suppliers were Chile with a 38 percent share (3 percent less than the previous year), Peru with 32 percent (4 percent more), and Mexico with 27 percent (3 percent less).
Blueberry imports in the U.S. in 2021 reached 310,097 tons for $1.904 billion, 14 percent more in volume and 22 percent more in value compared to the previous year. The largest suppliers were Peru with 34 percent (3 percent more than the previous year), Canada with 26 percent (2 percent less), and Mexico with 21 percent (3 percent more).
Asparagus imports to the North American market totaled 294,364 tons for $751 million, 11 percent more in volume and 4 percent more in value compared to the previous year. The main suppliers in the U.S. were Mexico with 67 percent (3 percent more than the previous year), and Peru 32 percent (3 percent less).
In 2021, avocado imports in the U.S. totaled 1.19 million tons for $3.003 billion, 7 percent more in volume and 18 percent more in value compared to the previous year. The main suppliers were Mexico with 89 percent (1 percent less than the previous year), Peru with 7 percent (similar to the previous year), and the Dominican Republic with 3 percent (similar to the previous year).
