Retail organic produce growth slowed down a bit in the second quarter of 2021, but overall was still well ahead of conventional produce.
The Organic Produce Network published and Category Partners prepared the report using Nielsen data, It revealed total organic dollars during the April through June period increased by 4.1% compared with the same period a year ago.
By way of contrast, conventional produce sales in the second quarter declined by 3.3% compared with year-ago levels.
Organic volume was about even with last year’s levels, registering a gain of 0.2% in the second quarter. That was much better than conventional produce, which experienced a decline of 8.6% compared with the same quarter a year ago.
Generally, consumers in the second quarter of 2021 were not buying as much food in the same way they did during the early months of the pandemic in 2020.
In the second quarter of 2021, organic produce experienced sales somewhat below the historical long-term growth trend, according to the report.
The vegetable category benefited during the pandemic because more consumers were cooking at home, the report said. Times began to change in the second quarter.
“As the foodservice sector reopened, consumers began to shift some meals back to foodservice channels,” the report said. “The net result in Q2, 2021, is many produce categories had relatively tepid growth when matched against Q2, 2020.”
Organic did comparatively well, with organic produce still generating dollar and volume growth in the second quarter while conventional produce declined.
The pandemic isn’t dominating retail trends as it did in 2020.
“It is apparent that consumer supermarket food purchases increasingly reflect the more traditional buying trends versus COVID-inspired purchasing changes,” the report said. “It is also encouraging that even though consumer purchases of conventional produce were lower than Q2, 2020, organic produce continued to generate growth. This shows that the longer-term trend of consumers moving toward organic produce continues to grow.”
Berries were the “star organic category” during the second quarter, increasing dollar performance by over 19% and volume by 16%.
“Berries displaced packaged salads as the No. 1 organic category in dollars for the first time,” the report said.
Citrus (26.7%), lettuce (2.1%) and tomatoes (1.2%) also delivered volume gains for the quarter. However, multiple strong organic categories had volume declines, including important organic contributors like packaged salads, apples, herbs and carrots.
Even so, increasing prices in many organic categories helped mitigate volume declines.
In terms of regional retail organic sales performance, the Northeast region enjoyed a 7.7% dollar growth and 3.6% volume growth in the second quarter.
The normally strong West saw a 0.2% decline in organic sales and a 3.9% volume decline.
The report said the Western performance “is largely a phantom decline” created by comparing against Q2, 2020, when organic sales soared by 17% in dollars and 18% in volume.
“The good news is that setting aside the performance spike that occurred in Q2, 2020, the overall trendline for organic produce volume remained positive,” the report said.
While strawberries may be seen more as a summer shipping item, good fall volume is seen for the months ahead.
Nearly 25 percent of total California fresh strawberry shipments in 2020 were shipped from September through December, according to USDA figures.
As of August 8, fresh strawberry shipments from California had totaled 137.7 million crates, down from 145.4 million crates the same time last year, but similar to 137.1 million trays two years ago. At the same time in 2020, about 31% of the of 210-million-crate 2020 crop remained to be shipped.
California fresh strawberry volume was running at 5.9 million crates for the week ending August 7.
Well- Pict of Watsonville, CA reports hot weather in the West has not affected strawberry production as much it may have had an effect on other crops. The weather in California strawberry growing regions had not been a hot as in other growing areas with the exception of a short hot period in May. Watsonville fields have been producing a steady crop of good color, size and tasting strawberries that is expected to continue into the later parts of October.
That crop will then be supplemented by Well-Pict’s summer-planted crop in Oxnard.
The California Strawberry Commission of Watsonville projected weekly volume in the fall period of summer-planted strawberries, grown in Santa Maria and Oxnard, is expected to be up about 5% compared with 2020. California’s total fresh shipments for the 2021 season will fall somewhere between the 202-million-crate crop in 2019 and 210 million crates packed in 2020.
Shipping line Maersk has provided a market update on the challenging global logistics situation, saying that port congestion and supply chain bottlenecks are to persist through year-end.
China’s October Golden Week, Christmas and Chinese New Year will bolster strong demand for container shipping for the last quarter of 2021. But port congestion, especially in the U.S. and Europe, and service delays are expected to create headwinds for service schedules, the company said.
Maersk says extra loaders (additional ships) and ad hoc port omissions will be implemented to help improve schedule reliability. Meanwhile, inventory levels in Europe and the US remain at their lowest levels on record, leading to stock outs on some products.
This means even once retail demand declines, we will see cargo volumes continue to remain strong as inventory levels need to be rebuilt, Maersk said.
Global container demand growth is projected at 6%-8% in 2021, reflecting strong first-half as well as ongoing demand strength in the U.S. and partly in Europe. While container demand growth has ran ahead of supply growth since the second half 2020, the true drivers of high freight rates are congestions in ports and supply-chain bottlenecks, Maersk says.
Vessel waiting time at ports has increased requiring more ships per string to lift same cargo volume. At the ports of Los Angeles and Long Beach, waiting times rose with over 70 vessels anchored in mid-September.
Covid-19 has also led shutdowns that have delayed vessels from Asia. Warehousing capacity has also been reduced due to port and landside congestion, while returning empty containers back to Asia remains challenging.
“Maersk has taken many actions to redirect flows back to Asia to ensure we have equipment supply. Despite this, equipment turn-round times continue to increase driven by landside and seaborne delays,” says Maersk.
To address capacity and equipment shortages, Maersk says it has taken measures to alleviate this by rationalizing its schedules and repositioning empty containers. The company has also tripled the number of dry freight containers in its fleet during the last few months to support customers’ export requirements.
“However, In-fleeting of new containers alone is no longer sufficient to meet overall demand, so it remains critically important that import containers are turned around as quickly as possible,” Maersk said.
In Vietnam, hundreds of factories have remained closed under COVID-19 lockdown rules, with many expected to reopen from early October as local restrictions are lifted.
Major port update
Ports in Asia Pacific continue to be severely congested. With continued high yard density issue and weather disruption since July (i.e. 3 typhoons and 6 tropical storms), operational challenges remain in port operations and the situation is not expected to improve in the immediate future.
Ports of Los Angeles and Long Beach congestion levels continue to deteriorate as we move further into peak season with 70+ vessels waiting at anchorage recently. Labour restrictions coupled with high throughput volumes remain the primary constraint.
Port of Savannah has become increasingly challenging recently as congestion across the East Coast picks up. There were around 30+ vessels at anchorage with wait times upwards of 7 days in mid-September.
Port of Seattle continues to struggle with available yard capacity. Waiting times have increased to 11/12 days and the typical port stay lengthening from 3 days to about a week.
UK Ports are operating smoothly but with very severe trucking shortages across the country, leading to high yard density in ports. Port of Rotterdam is also seeing trucking shortages although not as severe as UK.
Ports in Latin America:Port of San Antonio continues to be congested causing further delays. Port of Lazaro Cardenas – railways continue to be blocked by protestors. We suggest customers to move cargo to Manzanillo where possible.
Air freight
Regarding air freight, Maersk says 2021 Q4 is expected to be “one of the strongest peaks the industry has seen with demand surpassing 2019 levels”.
New technical product launches and winter fashion products together with continued ocean freight disruption are expected to push demand higher even as capacity has yet to return to pre-COVID levels.
“Rate levels, already at all-time highs, are set to increase further in Q4. Most of the major trade lanes such as transpacific, Asia-Europe and transatlantic will be impacted,” it said.
“Maersk is securing commercial airlines and ad hoc charters to address capacity issues and secondary airports to help overcome COVID-19 related airport restrictions. We are also offering our multimodal Sea-Air service to customers on the Asia-Europe trade lane to meet demand.”
C&S Wholesale Grocers of Keene, NH, which supplies more than 7,700 stores across the U.S., has agreed to acquire Piggly Wiggly Midwest of Sheboygan, W.
Piggly Wiggly Midwest has three distribution centers and serves 11 corporate stores, 84 franchise locations in Wisconsin and 14 Butera Market stores in the Chicagoland area, according to a news release.
“The purchase of Piggly Wiggly Midwest is a natural expansion of our already successful Piggly Wiggly Carolina business and reinforces our strong commitment to this beloved brand,” C&S CEO Bob Palmer said. “It is a well-established legend in grocery retail that is valued by customers for its competitive pricing and focus on service.”
The acquisition is expected to close this month. Paul Butera Sr., president of Piggly Wiggly Midwest and founder of Butera Market, described the decision to sell as a very difficult one but a natural next step.
“Piggly Wiggly is more than a supermarket,” Butera Sr. “It is a family of franchise operators, employees and loyal Pig Point customers, too. C&S has the experience and knowledge to ensure that this 100-year old icon continues for the next 100 years.”
As part of the sale agreement, the Piggly Wiggly Midwest offices and distribution centers will continue to operate.
The Peruvian table grape industry is forecast to export a record volume of fruit in the upcoming season, with the first estimate pegging shipments above 60 million boxes for the first time.
In its first forecast of the 2021-22 campaign, industry body Provid said exports were on course to rise by 9 percent year-on-year to 62.5 million boxes equivalent to 8.2 kilograms.
“We are strengthened by our varietal reconversion to more attractive varieties and the successful diversification of volume to different markets,” said Provid President Manuel Yzaga.
He added that Provid and phytosanitary watchdog SENASA have done a good job of opening up new markets to the Peruvian table grape industry over recent years, with the Japanese market also likely to soon be available to shippers. In addition, he said the industry was working to be able to export grapes to China via air freight.
“As Peru is the second largest exporter of table grapes in the world ranking, Provid is responsible for providing key information that will enable suppliers, markets and other stakeholders to manage volumes as efficiently as possible,” he added.
Yzaga went on to say that for this season, the challenges for growers and packers is to supply grapes of good quality and condition to achieve the best possible economic returns, “especially considering the complex environment in which we find ourselves due to the global pandemic”.
“Workers, strategic allies of the sector – we have made a call to our associates to maintain and surpass the already good labor standards that characterize us.
“Shipping lines, logistics agents, SENASA, among others – we must be able to absorb growth efficiently and effectively.”
PORTLAND, Ore. – With harvest in full swing throughout the four growing regions of the Pacific Northwest, the pear industry is releasing the first official estimate of the 2021-22 fresh pear crop for Washington and Oregon. The industry’s fresh pear estimate is 16.1 million standard box equivalents, which is very close to a four-year average.
“Pear growers are reporting an excellent quality crop this season with some saying it is the best they have seen in a decade,” stated Kevin Moffitt, President and CEO of Pear Bureau Northwest (PBNW). “The fruit finish for this year’s pear crop is outstanding with beautiful shape and high sugars.”
Harvest started in early August for summer varieties like Starkrimson and Bartletts across all regions, with growers beginning to pick Bosc, Green and Red Anjou within the last half of August. Specialty pears like Comice, Seckel, Forelle and Concorde pears became available in September.
The organic pear estimate is expected to come in at 1.94 million standard boxes, which is nearly 12% of the total projected Northwest crop.
“The industry is passionate about providing consumers with the best possible eating experience,” stated Moffitt. “To meet consumer demands for sweet and juicy pears to enjoy 1 to 3 days from purchase, the industry continues to expand and promote the conditioning program, which is proven to increase retail sales and enhance the consumer eating experience.” Moffitt continued.
About Pear Bureau Northwest/USA Pears
Pear Bureau Northwest is a non-profit marketing organization established in 1931 to promote the fresh pears grown in Washington and Oregon, home to 87% of the US commercial fresh pear crop. The Bureau represents over 800 grower families and partners with outlets throughout the world in an effort to increase overall success with the pear category.
A recent study has added to mounting evidence suggesting that a compound found in apples and other fruits are powerhouses when it comes to preventing dementia.
The peer-reviewed study looking at the impact of flavonoid consumption was published y Walter Willett, MD, DrPH, of Harvard University in Boston, Massachusetts in American Academy of Neurology.
“Our results are exciting because they show that making simple changes to your diet could help prevent cognitive decline,” he says.
According to his study, many flavonoid-rich foods, such as apples and pears, and others fruits and vegetables like strawberries, citrus, celery, peppers, bananas as well as red wine were significantly associated with lower odds of SCD, Subjective Cognitive Decline.
As reported on N.Neurology.org, the study followed 49,493 women from the Nurses’ Health Study (NHS) (1984-2006) and 27,842 men from the Health Professionals Follow-up Study (HPFS) (1986-2002).
Poisson regression, a generalized linear model form of regression analysis used to model count data and contingency tables, was used to evaluate the associations between dietary flavonoids and subsequent SCD.
For the NHS, long-term average dietary intake was calculated from seven repeated food frequency questionnaires (SFFQs) and SCD was assessed in 2012 and 2014. For the HPFS, average dietary intake was calculated from five repeated SFFQs, and SCD assessed in 2008 and 2012.
The results showed that a higher intake of total flavonoids was associated with lower odds of SCD.
Many flavonoid-rich foods, such as apples/pears, strawberries, citrus, celery, peppers and bananas, were significantly associated with lower odds of SCD. The writer concluded that “our findings support a benefit of higher flavonoid intakes for maintaining cognitive function in US men and women.”
Henk Griessel, a plant biologist by training and Quality Assurance Manager of South Africa-based Tru-Cape Fruit Marketing, says that the company is always looking out for verified studies that prove the healthful benefits of eating apples and pears.
“This study adds to our understanding of why eating fruit and vegetables is so important to reduce the risk of brain-related decline associated with aging,” he said. Adding flavonoids to the group of naturally occurring fruit substances that prevent the many facets of aging underpins the importance of eating more fruit to reduce the risk of dementia. And, don’t forget that red wine is also on that list of flavonoid-rich substances.”
“We already know that DHQ, a form of the antioxidant Quercetin, a plant flavonol from the flavonoid group of polyphenols, has been demonstrated to reduce the inflation-causing free radicals by binding to them.
“Simply put, human deterioration can be likened to metal rusting. We already know that enzymes in antioxidants act as a form of human rust-proofing but what this study seems to also suggest is that those same enzymes reduce and even help repair the kind of brain damage that leads to a host of diseases associated with dementia,” Griessel ends.”
LOS ANGELES – The Giumarra Companies is expanding its domestic citrus program with the addition of a new influx of California-grown mandarins in October.
“We’re nearly tripling our domestic mandarin volume during a key timeframe when citrus is in high demand and health and wellness are still top of mind for consumers,” said Alex Marriott, Category Citrus Lead – Domestic for the Giumarra Companies. “Our overall citrus program is growing and we are well-positioned to service our retail partners with high quality, consistent supplies throughout fall and winter.”
The mandarins will be packed under Giumarra’s Bright Bites™ brand and are accompanied by the company’s full line of seasonal California citrus offerings, including oranges, Cara Caras, lemons, and grapefruit.
“Citrus is an important category to Giumarra’s core product line and we are building our program to become a one-stop shop for high-quality product, consolidation, and support services for our customers,” said Jeannine Martin, Director of Sales – Reedley and Corporate Vice President for the Giumarra Companies.
The Giumarra Companies offers citrus from domestic and international growers packed under its Nature’s Partner family of brands.
About the Giumarra Companies
The Giumarra Companies is a leading international network of fresh produce growers, distributors, and marketers that encompasses a world of flavor and freshness. Since its inception in 1922, the company has taken pride in a longstanding commitment to quality, service, and industry leadership. Products packed under Giumarra’s trusted family of brands are supported by a suite of top-tier services and enjoyed by consumers daily. Together with our partners, we’re feeding the world in a healthy way.
YUMA, AZ — Just in time for the annual Medjool date harvest, Bard Valley Natural Delights® shares Information Resources, Inc. (IRI) data showing a promising year for the category, and even more so for the Natural Delights brand.
According to IRI data pulled on June 27, 2021, the total Medjool date category is up 5.7% year over year (YOY). Bard Valley Natural Delights growth is up 6.4%, outpacing competitors and driving overall category growth.
Some key insights from this data also show that fixed weight packaged products are up 7.5% YOY, a trend that has been accelerated with the rising concerns with bulk products during COVID. The brand expects that shoppers will continue to prefer more packaged products in the 2021-22 year.
Organic product growth is up a staggering 14.5%. Bard Valley Natural Delights organic product growth is up 15% which, much like overall category growth, shows that the brand is leading organic category growth as well. Bard Valley Natural Delights continues to invest in organic products by converting many of their groves to USDA Certified Organic and broadening product lines to include both conventional and organic varieties.
“We’ve been meeting the needs of organic shoppers for several years now, so this data is encouraging as we continue to expand our product lines to include organic options,” added Baxter.
About Bard Valley Natural Delights®
Natural Delights® Medjool Dates, the leading Medjool date brand in the country, is a naturally sweet, whole fresh fruit grown in Bard Valley at the intersection of Arizona, California and Mexico where its very specific set of growing conditions are met.
Throughout the course of the pandemic, there have been shortages in many of the food products that we consume daily. One of the main food groups that have been in higher demand in recent times has been meat and poultry.
With recently renewed coronavirus restrictions at many processing plants, concerns have been raised that another meat and poultry shortage may be on the rise. In our Winchester, VA office, we work with some of the largest food processing companies in the United States. With understaffed processing plants due to the impacts of the coronavirus pandemic, the food supply chain for many of these companies has been lacking.
With all of the issues currently facing supply chains in our country, it is our job to make sure that we are working as efficiently as we can with our carriers to get meat and poultry on the shelves for our customers. Here’s how we do it.
One of the most important aspects of hauling perishables is working with a carrier that you can trust, with good equipment, experience, and an understanding of how things may go.
With meat shortages being a major concern for grocers across the country we need to make sure that the product gets to the final destination in perfect condition. One of the first things that we look for when potentially working with a carrier is if they have any history hauling high-value products. The more experience they have, the less likely they are to experience any potential problems. Asking them a few important questions to make sure they are the right carrier for the job is also essential.
We want to know the year of the reefer unit (needs to be 10 years or newer), the condition of the air chute, if they have the necessary load locks and straps to keep the product secure, and if the reefer unit is downloadable in case there are any temperature discrepancies at delivery.
These questions help us and the carrier make sure that the transaction goes as smoothly as possible from start to finish. Preparation and communication are both keys when transporting perishables. Having strong relationships with carriers is imperative just like with any other product, but when hauling perishables, the carrier must be also aware of the challenges that processing companies face.
These companies are experiencing major delays with loading times, leading to carriers being frustrated, which can further complicate the supply chain. We have experienced that when you make sure the carriers you work with are fully aware of what to expect from start to finish when hauling the load, things generally tend to go more smoothly. The last thing that we want is to have a carrier hand a load back while at the pick-up location because they did not know what to expect. When the carrier knows what they may be up against, they generally don’t get upset when delays are excessive, because they know that they can trust our word and that we will do the best we can for them at the end of the day.
With coronavirus restrictions at processing plants ramping up, these issues don’t seem like they will be going away soon. It is important that we work with our carriers to do the best we can for our customers in these difficult times. We need to be understanding of the current circumstances and do what we need to do to get the job done. Our mission is to serve our customers to the best of our abilities, and the only way to do that is to work with our carriers as a team.
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Matt Baldwin is a transportation broker with ALC Winchester, Va. Baldwin will be transferring to ALC Charlotte, NC to work on-site at McCall Farms. Matt has five years of experience in logistics and graduated with a marketing degree from Rutgers University.
