ISSAQUAH, WA – Vanguard International is optimism about its recently started Peru grape season.
By the end of November its red varieties commenced packing along with the remainder of the green varieties, including Sweet Globe. Then in mid-December the company began with black varieties.
The Peru crop will yield approximately 55% green grapes, 40% red grapes, and 5% black this season.
“Our Ivory variety is the first fruit off the line, and they feature great size, great color, and great taste,” shares Fanny Robles, Vanguard Manager – Peru Procurement and Sales “We’ve never seen Ivory grapes that look like this before,” Robles continues. “We are seeing this consistently for all our varieties and our packinghouse teams have a renewed excitement.”
It’s not just the fruit leading the high spirits of the Vanguard Global team as Robles notes. “Compared to last season, we are very prepared right now. The entire global team is more connected than ever from those in the fields, to the packing house, shipping lines, and customers.”
“Quality parameters have been further developed to meet packing needs for each different market.” Robles outlines. “Our more experienced team combined with our strong crop means we can be more competitive in the market this year.”
“Our cultural practices at the field level and significantly improved quality are two very positive developments leading to more volume than we forecasted,” shared Dirk Winkelmann, President of Vanguard Direct. “In particular with our green grapes, the average berry weight is a bit more than forecasted and that alone could push the crop up by 10%. Equally important our pack outs are quite a few points higher this season.”
The cautious optimism extends to the plans for transportation of our products.
Preseason strategic negotiations and alignment has Vanguard well prepared and positioned to transport the increased grape volumes. Currently there are no concerns around space availability and equipment in the Ica region.
“The expansion of our facilities, to include both container plugs and increased pre-cool and cold storage, will help to mitigate any logistical delays. We are well positioned as we head into our peak grape volumes,” says Winkelmann.
Founded in 1991, Vanguard International has been marketing and selling fresh fruits and vegetables in Asia and the Middle East for over 30 years, operating offices internationally in Chile, China, Indonesia, Malaysia, Peru, Spain, Taiwan, South Africa, and the United States.
As we enter a recovery period from the COVID-19 “recession” the transportation industry is showing signs of strength. The threat of the virus has been reduced across the country, but inflation has been caused by rising commodity prices and record-level government spending.
The re-opening of the economy has triggered a supply shortage in labor and productive commodities – microchips, lumber, aluminum, apples, lettuce. Due to labor shortages, the market has seen rapid increases in low-wage paying positions, further shrinking the number of drivers on the road.
Registered trucks drove 304.9 billion miles in 2019, carrying almost 12 billion tons of freight – making up 72.5% of the total tonnage shipped domestically. Why would you spend 10 days on the road driving from Washington to Pennsylvania and back, when you can find a paying job with benefits close to home?
This has had a domino effect on the supply chain industry, forcing shippers to seek expensive and/or creative solutions. When will the worst of inflation begin and when will we see the end of rising prices?
The average inflation rate of the United States over the last 10 years is 1.8% – in April 2021 the inflation rate rose above 5% and is currently 6.2%. Currently, the price of produce per pound is up 7.3% from early 2020, and the two-year outlook shows fresh produce transportation nearly doubling. There is a general consensus that we are nearing the peak of inflation rates, and this will continue through 2022.
With several trillions of dollars being added to circulation since April 2020 and no plans insight to stop, there are no guarantees of reduction from current inflation rates.
Carriers will see a direct increase in the price of equipment, tractor/trailer repairs, fuel, insurance, and meals. Shippers will see a direct increase in the cost of labor, transportation costs, and raw material costs.
We are in the position to see inflation happen from a birds-eye-view, giving us a special position to take. Allen Lund Company’s duty is to communicate this issue to our shippers and carriers to ensure they are properly prepared for the continued rise in prices.
****
Collin Payneis a transportation broker in ALC Denver and has been with ALC over 2 ½ years. Collin graduated from Texas A&M University with a BS in University Studies of Global Arts, Planning, Design and Construction Concentration.
Significantly fewer California table grapes remain to be shipped from storage on the West Coast compared to this time last year, according to USDA report.
The Western Fruit Report – Grape Cold Storage Summary states there were over 2 million fewer cartons being held.
There were 7 million cartons in storage on November 30, compared to 9.2 million cartons on the same date in 2020.
The storage numbers on Nov. 30, 2019 were also higher than this year, but down from last year at 7.9 million cartons.
The most recent figure for this year is much lower than the 10.5 million cartons registered on November 15.
Compared to the same date in 2020, the biggest changes in terms of specific varietals are seen in:
Autumn Royal – 254,000 (down from 259,000 last year)
Autumn King – 2.5 million (down from 2.8 million)
Allison – 1.4 million (down from 2.3 million)
Scarlet Royal – 243,000 (down from 303,000)
Red Globe – 206,000 (up from 46,000)
Timco – 95,000 (down from 195,000)
Great Green – 2,000 (down from 50,000)
Other White category – 252,000 (up from 192,000)
Other Red category – 416,000 (down from 1.5 million)
Other Black category – 216,000 (down from 491,000)
Northwest onion shipments from storage will be occurring through mid- to late April as usual, but volume will be down because onions remaining to be shipped are down about 40% to 50% from normal, according to Owyhee Produce of Parma, ID.
During the growing season, the Treasure Valley growing region of Idaho and eastern Oregon exceeded 100 degrees for 20 days through mid-July, up from the historical annual average of six days reaching 100 degrees or more. This resulted in a yield reduction.
Top shipping areas for onions in late October were Columbia Basin, WA.; Idaho and Malheur County, OR.; Peru; Colorado; and Utah, according to the USDA.
Truck shipments of Idaho onions, at 394 truckloads the week of Oct. 24, were off 32% from the same week a year ago. Onion shipments from Oregon, at 127 truckloads for the week of Oct. 24, were 52% lower than the same week last year. Washington onion shipments were 646 truckloads the week of Oct. 24, down slightly from 659 truckloads moved the same week a year ago.
While shipments from the Northwest were well off last season’s pace, imports of onions were running well ahead of normal.
Peru’s onion shipments to the U.S. the week of Oct. 24 totaled 602 truckloads, up about three times the 203 truckloads imported the same week a year ago.
A mammoth 2.6 kilogram (5.7 pound) lemon the size of a forearm has been grown in a backyard in Western Australia.
Chef Melissa Palinkas excitedly shared an image of the monster citrus to her Instagram recently, snapping the ponderosa lemon next to a regular lemon.
Palinkas, who lives in Western Australia, told the Daily Mail Australia the unusual mega lemon was grown by a local East Fremantle couple in June.
It grows seasonally with a winter yield,’ she said.
Intrigued by its mammoth size Ms Palinkas, who prides herself on sustainable produce, said she used the lemon for a salad, after finding it unsuitable for juicing.
‘It is sweet, so I shaved it and made a ponderosa lemon salad with zucchini and green olives with a burnt lemon dressing,’ she said.
‘The middle part is much like Australia’s native finger lime, pearls that burst with juice inside which I sprinkled over the top.’
Palinkas described the pith, which is the flesh of the lemon, as sweet with ‘no bitterness at all’ and peeled a second ponderosa to brew some fresh limoncello – a popular Italian lemon liqueur.
The ponderosa is a hybrid between a citron and an ordinary lemon.
While not cultivated commercially it is grown by gardening enthusiasts for decorative purposes but can be used as a replacement for lemons in jams, pies and other recipes.
Lower Rio Grande Valley grapefruit shipments overall are predicted to be down nearly 70 percent this season, thanks to a devastating freeze last February. Meanwhile, winter vegetable shipments are expected to be more normal.
Grapefruit and orange loading typically start in south Texas during October, but the Texas International Produce Associations reports the 2021 Valentine freeze resulted in a later-starting crop. That delayed shipments, finally picking up around Thanksgiving and winding down in March.
However, overall grapefruit shipments could be down by two-thirds from a normal season.
Struggling to find good news in the whole debacle, the association notes while the overall volume will be lighter, fruit size and quality should be good. Less fruit on the tree means larger sizes.
Lone Star Citrus Growers of Mission, TX reports much of the fruit is also hanging on the internal branches of the tree due to the outer canopy loss after the freeze. Hopefully, this will result in fewer outer blemishes caused by the wind.
The company increased its acreage for this season and expects to produce 75% of what it had last year. Lone Star Citrus, like other marketers, will operate on a condensed harvesting and packing schedule, allowing the firm to maximize efficiencies.
The operation contends despite the fierce freeze in February, the longer-term outlook for Texas citrus is positive and sees having 80 percent of a crop next season.
Lone Star Citrus markets grapefruit and a variety of orange varieties, including marrs, navel, pineapple and valencia.
Vegetable Shipments
Lone Star vegetable shipments kicked off with herbs in early November, with items ranging from cilantro to parsley, and cabbage, followed soon by kale.
Grow Farms Texas, Donna, TX, continues to grow its program in south Texas on both domestic and Mexico Grown products. Its cabbage survived last year’s February freeze, resulting in a great Saint Patrick’s day harvest. An even better crop is seen this year.
The company is looking at good cucumber and bell pepper production out of Mexico, along with increasing volume of eggplant and squash. It is increasing its hot peppers volume each year, led by jalapeno and serrano.
Idaho’s potato volume in 2020 was 134.7 million cwt., up from 130.9 million cwt. in 2019 but down from 141.75 million cwt. in 2018, according to the USDA’s National Agricultural Statistics Service.
The yield per acre in Idaho in 2020 was 450 cwt. in 2020, up from 425 cwt. in 2019 and unchanged from 2018.
Potatoes used for processing in Idaho and Malheur County Oregon totaled 90.7 million cwt. in 2020, up from 86.8 million cwt. in 2019, according to the USDA.
Russet potatoes accounted for 90% of the varieties planted in Idaho for the 2020 crop year, the USDA said, down from 91% in 2019. The percentage of yellow potatoes increased from 2% to 3% from 2019 to 2020, while whites and reds were unchanged at 3% and 4%, respectively, compared with 2019.
Planted area of potatoes in Idaho totaled 300,000 acres in 2020, down from 310,000 acres in 2019 and 315,000 acres in 2018.
Government statistics show the final value of Idaho’s 2020 potato crop sold totaled $912 million, down 5% from 2019.
The USDA’s average price for the 2020 Idaho potato crop was $7.28 per cwt., down $0.70 from last year.
Imported Chilean cherries to the U.S. got underway in late October and will continue into February.
The Chilean Fresh Fruit Association notes Chile is world’s largest exporter of cherries, shipping 77.8 million boxes around the globe last year. Chile projects cherry exports to the U.S. will see substantial growth in 2021-22, with nearly 13,000 metric tons expected for the U.S. market this season.
The Oppenheimer Group (Oppy), report shipments to North America are poised for yearly growth in the future.
China remains the primary destination for Chilean cherries, but production continues to grow and is now sufficient to support good volumes in North America, Europe, India and elsewhere. The North American market is viewed as the primary target for growth this season.
Overall volume this season could be 50 to over 100% higher than last year. The season started in mid-November with air shipments and should continue through February.
While Arizona-California desert growers and shippers have experienced a cool down this week in the midi-60s and low 70s, it follows ideal weather conditions with highs in the 80s last week. But overall, desert vegetable volume is increasing.
In the meantime, green leaf, iceberg, and romaine lettuce volume is good, thanks in part because these are winter varieties which have been developed to have favorable quality and availability during the colder months.
The first crop premium Iceberg availability is inconsistent due to low weights, although premium Green Leaf and Romaine are readily available. Both Arizona and California desert shipments are in full swing.
Lettuce and leaf quality are good, although growth cracking, mildew, fringe burn, and seeder exist in some lots. As a result, it’s important, as always, to be aware of what is being loaded onto the truck and that the receiver is aware of it.
Shipments have been moderate since Thanksgiving and loadings are starting to ramp up for the holidays.
Broccoli shipments are increasing from the Arizona and California desert regions. Overall quality is good, although pin rot is affecting some lots.
Cauliflower volume also is increasing with good quality great color and ideal size being reported.
