The Canadian retail industry reviews market share numbers for major supermarket operators and examines the growth potential for U.S. fresh produce exports, according to a new report.
Published by the USDA’s Foreign Agricultural Service, Canada is the largest overseas market for U.S. high-value, consumer-oriented products, with exports reaching nearly $17 billion in 2020. This represents 25% of the total value of U.S. consumer-oriented exports worldwide.
The report said:
Canada’s retail market is mature and largely consolidated, with five retailers comprising more than 75% of the total retail grocery market;
The remainder of the market is represented by smaller regional retail chains that include 6,800 independents and 27,000 small and independent convenience stores;
Approximately 90% of Canada’s nearly 38 million consumers live within 100 miles of the U.S. border;
The top three consumer-oriented agricultural product categories were bakery goods, cereals, & pasta ($2.2 billion), fresh vegetables ($1.9 billion), and fresh fruits ($1.6 billion);
U.S. products dominate in imported goods in the Canadian market, but recently implemented Canadian trade agreements with 3rd country trading blocs – CETA (Canada-European Union Comprehensive Economic and Trade Agreement) and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) – have contributed to increased agricultural export competition in the Canadian market;
By surface area, Canada is the second-largest country, but over 80% of Canadians live in the country’s 15 largest cities;
In 2020, Canada’s food and beverage retail sales surged by a record 10% from the previous year – reaching $109 billion, including alcohol sales of $20 billion – as COVID-19 response measures drove double digit losses in food service;
Consumer demand and established distribution channels with U.S. suppliers continue to fuel produce sales growth, with Canadians spending 21% more on fruits and vegetables than U.S. consumers;
Online sales in 2020 were up 105% over 2019;
Investment in e-commerce will be vital to keeping up with consumer demand, and several of Canada’s largest retailers announced new supplier fees in 2020 to offset the cost of fulfillment center investments;
Unable to develop online fulfillment capabilities independently, many smaller grocery retailers also partnered with delivery platforms (e.g., Instacart) or offered in-store pick-up services;
The rise in e-commerce has also led to an increase in data and loyalty memberships;
The success of loyalty programs has been attributed to the customization of promotional outreach (e.g., newsletters, coupons) to targeted customer demographics. KPMG’s 2019 Customer Loyalty Report underscored this fact before the pandemic, noting how Canadian consumer loyalty programs like Air Miles, Triangle Rewards, and P.C. Optimum are enmeshed in Canadian consumer culture.
Canada’s leading grocery retailers continue to consolidate ownership of the segment and increase their bargaining power relative to suppliers, enabling retailers to set more favorable terms, fees, and requirements.
The consolidating nature has left multiple suppliers feeling pressured and powerless in their relationships and contract negotiations with grocers. Following new fees suppliers’ associations and politicians began calling for a legislated retail grocery code of conduct to restore greater balance to negotiations with retailers. Some retailers have been advocating for a voluntary code rather than have one imposed upon them.
Lush leaves, warm waters, flourishing flora, are just a few of the things that come to mind in a picturesque way when one thinks of California. But California is not just a “start-all, end-all” vacation spot. Coastal California actually has a lot more to do with you than you think.
Do you enjoy complete and balanced meals? Of course, you do! It’s important to maintain your body and keep yourself properly hydrated and hit all the food groups. Fruits, vegetables, meat, dairy, grains, are all main staples but chances are your fruit didn’t come from a couple of miles down the road, it more than likely came from one of our powerhouse produce states.
Just to name a few: Texas, Florida, and California. These three states play a big role in getting those delicious dinners and popping picnics to come together. Did you know California by itself produces more cash receipts from produce than the entire Mountain/Pacific region states combined or that about half as much comes from Texas, which has 86% of its land [ocregister.com]used for agricultural production?
While this is fantastic for our country to have so many geographic options for crops, sometimes those regions come with a bit of a headache down the road. As you know historically, California has experienced drought from the early 2000s to today, and if you’re a Texas resident you know we’ve been feeling the same. What does that mean at the end of the day for our nation?
Let’s step back for a second and have some breakfast, and figure things out. As you may have heard one of the trendiest foods incorporated into breakfast this side of the decade has been avocados, maybe you’ve seen them aesthetically spread onto toast.
Along with many other functional foods, avocados have almost doubled in price (complimented with far more than double the demand) since a few years ago. Unfortunately, that breakfast might be a little bit more expensive on the west coast now. California is one of our nation’s leaders in producing avocados.
In 2014, California’s last notable drought [businessinsider.com[businessinsider.com] top exports such as avocados, berries, cruciferous vegetables, i.e. cauliflower, cabbage, kale, as well as grapes, and lettuce rose in price anywhere from 17 to 62 cents depending on the product.
It’s not all bad news, we can look at some silver linings while we wait on the clouds to come back and rehydrate our fields. Texas shares a similar palette on many in-demand produce products with California and has seen a recent increase in exports of avocados to pick up the slack left behind.
According to data from the USDA [data.ers.usda.gov] website, avocado demand grew from 155,379 ($1000’s) in December 2020 to 231,835 in Jan 2021 and 315,128 by March of the same year. Many times, when we see a lack of a commodity in one area, we’ll look to grow it somewhere else, or import it.
Texas has the perfect climate for avocados, and also controls some of the main border entries for Mexico, which exports billions of dollars worth of avocados [agmrc.org] every year to us. This new entry point/origin for produce shifts the freight market as well to create demand for trucks in Texas while decreasing the demand in California.
To sum things up, when it starts to “Never rain in [Southern] California” we see the whole nation shift their focuses on backups, imports, and inevitably higher costs. So be sure to avoca-do yourself a favor and pick up some delicious guacamole ingredients while we wait out this drought and get produce to your state from wherever its’ freshest!
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Iyer Amruthur is a business development specialist in the Allen Lund Company, San Antonio office and has two years of logistics experience. Iyer attended The University of Georgia where he obtained a Bachelor’s Degree in Marketing, with a minor in Communications.
Reidsville, GA – Shuman Farms has RealSweet® high quality, premium sweet onions from Peru on hand and are currently making the transition from Vidalia® to Peru. Shuman began growing sweet onions in Peru more than 20 years ago to meet the year-round consumer demand for premium sweet onions. Peru provides the ideal climate, soil, and growing conditions and allows retailers to keep premium sweet onions on shelf from September to March.
The Peruvian sweet onion is very similar to the Vidalia onion in terms of taste, sweetness, and appearance, with the characteristic flat shape and yellow color that consumers recognize as a premium sweet onion.
Shuman Farms imports their sweet onions through the Port of Savannah which allows them to maintain a year-round, full-time workforce in Tattnall County, Georgia. In addition to the positive economic impact in Shuman Farms’ own backyard, importing sweet onions through the Port of Savannah helps to support over 497,000 jobs in the Southeast United States.
“I am proud of the product we grow in Peru and the contribution we make to the economy of Georgia and the southeastern United States,” said John Shuman, President and CEO of Shuman Farms. “Whether it’s from the soils of Georgia or Peru, we will always be committed to providing American consumers high-quality, healthy produce year-round.”
The quality of this year’s crop looks very good and will lend well to bag promotions throughout the fall. Shuman Farms will be executing several innovative marketing promotions this fall with their RealSweet brand in both the in-store and digital spaces. By partnering with likeminded brands across the produce department Shuman Farms will be offering consumers meal solutions which will ultimately drive sales throughout the store.
Shuman Farms will also continue to uphold its foundational pillar of giving back with specially marked pink RealSweet bags in October for breast cancer awareness and Feeding America® bags in November and December to shed a light on food insecurity in the U.S. In addition to POS and digital support of both programs, Shuman Farms will also make donations to the Breast Cancer Research Fund and Feeding America respectively.
“Giving back to the communities where our products are sold has always been an important aspect of our company,” Shuman continued. “It is at the core of who we are and what we believe. We are grateful to work with organizations making a difference across the U.S. and honored to support them in any way we can.”
Shuman Farms has started shipping premium RealSweet onions from Peru mid to late August and continue through March 2022.
About Shuman Farms, Inc.
Headquartered in the center of the Vidalia® growing region in southeast Georgia, family-owned Shuman Farms has been in the sweet onion industry for more than 35 years. Today, Shuman Farms is an industry-leading, year-round grower and shipper of premium sweet onions. Learn more about Shuman Farms at shumanfarmsga.com.
Northeastern Apple shipments are looking good as the leader New York come out of a long winter with no significant damage and a strong bloom, which has laid the foundation for an excellent crop across virtually all eastern varieties.
United Apple Sales of Lyndonville, NY and a third-generation apple grower in the western part of the state, indicates the company is excited about a very strong crop after last year’s season which suffered from drought.
The shipper reported a good spring and summer with ample rain and consistent sunshine. The cool nights in the Northeast helped develop high color fruit and great flavor. The primary varieties handled by United Apple Sales are Fuji, Gala, Ginger Golds, and Macs. Each are showing a good balance between increased volume and larger fruit sizing.
Picking for early varieties is on schedule with Paula Red and Ginger Golds which started in mid-August. Gala and McIntosh will start in early September, while Honeycrisp gets underway in mid-September. Fujis pickings will start in late September.
J. Marchini Farms of Le Grand, CA has been shipping figs since the beginning of June, which is the first short crop which lasts only a few weeks.
The fig season has now started with its main fig crop going from August to October and includes three different varieties. These include the Black Mission, Brown Turkey and Kadota varieties. Black Mission figs have a delicate, purple-black skin that conceals a dark pink flesh and are a versatile fruit that are good in a variety of savory and sweet dishes. They can be made into jellies and jam, added to other dishes or enjoyed raw.
The Kadota variety has a yellowish green thick skin with an amber color flesh when ripe. They are practically seedless, so they are often canned or dried. The Kadota is less sweet than other fig varieties which makes them good for cooking and baking.
The Brown Turkey variety has a brownish-dark purple skin with a pink flesh. They have a milder flavor and are less sweet than the Black Mission variety which makes them good to add to deserts or salads. They will have these varieties from now through the fall.
The California fig season is short and sweet but it’s the best time of year to eat a fresh fig.
They may be small in size, but Brussels
Sprouts are big in nutrition, flavor and versatility! Packed with
vitamins, antioxidants and nutrients, Brussels Sprouts provide important health
benefits to keep your body strong, and can be enjoyed raw,
grilled, steamed, fried, and roasted.
Here
are six ways Brussels sprouts are good for your health:
1. Brain Health: Brussels sprouts deliver folate, which works
with vitamin B12 – found in fish, poultry, meat and dairy – to help prevent
cognitive impairment.
3. Eye Health: Brussels sprouts contain disease-fighting
phytonutrients, which help protect your eyes from cataracts
and age-related macular degeneration.
4. Heart Health: Sprouts are rich in antioxidants, which can
help reduce inflammation and promote a healthy heart when part
of your regular diet.
5. Gut Health: Just half a cup of Brussels Sprouts contain 2
grams of fiber, which is 8% of your daily fiber needs. Fiber helps
support a healthy digestive system and reduces the risk of heart disease.
6. Immune System Health: A 1-cup serving of Brussels Sprouts contains
more than 130% of the daily value of vitamin K and high levels
of naturally occurring vitamin C as well as B vitamins – all necessary nutrients
for a strong immune system.
Friesland, Wisconsin, August 3, 2021 — Wisconsin red potato harvest is underway at Alsum Farms in Grand Marsh, WI., and the first potato loads were washed, graded, packed and shipped to distribution centers and retail grocers the first full week of August.
“We are having ideal weather for the first harvest of red potatoes this summer at Alsum Farms,” says Larry Alsum, President & CEO of Alsum Farms & Produce in Friesland, WI.
Gold potato harvest got underway a week later on August 6. Alsum Farms russet potato harvest is just starting with the Pacific Russet variety, an early season variety that will be the first of new crop russets to be harvested off the field and freshly washed, packed and delivered to retail grocers in the Midwest and beyond.
New crop Wisconsin Fingerlings also were ready for shipping on August 16. In addition, new crop Wisconsin organic russet, red and gold potatoes were available for shipping August 9th.
Alsum Farms is now in full swing shipping new crop Wisconsin russet, red, white, gold and fingerling potatoes.
Hwy Haul co-founder and CEO Syed Aman knows fresh produce is the future of grocery stores. It’s one of the few categories that still drives shoppers to buy in-store. But some points in the supply chain for fresh produce are still stuck in the dark ages, according to a story in GreenBiz webcast.
Using his experience at Walmart, Aman is dragging trucking into the digital age with the added bonus of reducing food waste and eliminating unnecessary transportation emissions.
The trucking industry is fragmented and driven by individual relationships, according to Aman. Hwy Haul is trying to unite every stakeholder — shipper, trucker and retailer — in one place. Hwy Haul’s app digitally connects growers with fresh produce to truckers who can deliver the loads to buyers around the country. According to Max Gorobets, associate director of transportation for Lakeside Produce, one of Hwy Haul’s clients, before the app, would have to get on the phone to call each trucking company to find a truck and a driver to pick up and deliver his load.
Now Gorobets enters his load’s origin and destination information into the Hwy Haul app, and drivers on the other end can decide to accept it.
The San Francisco-based startup has raised $3.3 million in seed funding.
In the trucking sector, anywhere between 20 and 30 percent of miles are driven by empty freights, according to industry research. Sometimes, trucks drive 300 miles just to pick up a load. Those emissions add up. Hwy Haul has reduced empty mileage by 80 percent compared to industry standards by using data science, AI and algorithms, Aman said.
Aman’s key metric of success, however, is reducing rejections and therefore reducing food waste. According to him, produce spends half its shelf life on a truck.
“Produce is a very time-sensitive commodity,” he said.
That means having eyes on the produce at all times during the route. Hwy Haul uses sensors to monitor metrics such as temperature and location that are uploaded in real-time to its portal.
According to Aman, an average of 14 percent of loads are rejected by the retailer once they make it to the destination because of spoilage and damage en route.
HOLLISTER, CA — Once the North American blueberry season wanes, Peru’s long growing season, steady climate and greenhouse-like growing conditions will provide produce haulers with a constant volume of high-quality blueberries.
“We continue to have new acreage in play, and the crop-set looks heavier, and earlier, than last year,” said Michael Osumi, Berry People’s Chief Operating Officer. “We are expecting to begin shipping in August, a couple of weeks early, with peak arrivals planned for October through mid-December.”
Berry People now has a year-round supply of conventional and organic blueberries as a result of its increasing commercial partnerships in Peru, Chile and North America.
“As Berry People approaches our fourth year in business, our overall volume, continuity, and mix of supply allows us to make larger program commitments with key retail accounts. This year’s Peruvian season is part of that growth, and we are making customer alignments now that we hope to carry forward and upward for years to come as the acreage and volume continues to increase,” said Jerald Downs, President of Berry People.
From the COVID-related packaging supply constraints to port of entry delays, logistics is an increasing challenge for the industry, and Berry People has been chasing these issues head-on in preparation for the next 2021-2022 season. Their one-stop-mixer-dock berry model—shipping both during the summer out of the Central Coast, and in the fall, winter, and spring out of Southern California—continues to simplify shipping.
About Berry People: Berry People is a year-round, full-line shipper of branded organic and conventional strawberries, blueberries, raspberries, blackberries, and owner of the Berry People brand. Headquartered in Hollister, California, the company’s ownership and key alliance partners hold important production assets in California, Mexico, Chile and Peru.
With a steady supply of both domestic and off-shore product, shipper Bee Sweet Citrus of Fowler, CA is prepared to meet summer shipping demand for fresh citrus varieties.
“Citrus fruits remain a household staple for many families, so year-round availability is imperative to meeting the industry’s demand for product,” stated Bee Sweet Citrus Sales Representative Jason Sadoian. “As our summer import program continues to gain momentum, our customers can rely on our team to provide them with Chilean Oranges, Mandarins and Lemons, as well as several domestic varieties to meet their consumer’s needs.”
Available in new, high-graphic packaging, all of Bee Sweet’s off-shore product is checked for quality once it arrives at the company’s main location in Fowler, California. With a dedicated production team trained to facilitate the summer program and the company’s sales team focused on clearance, logistics and inventory, customers can look to the Bee Sweet Citrus team for a successful 12-month citrus program.
“During the summer months, consumers can look to our brand for year-round staples such as Navel Oranges, Lemons and Mandarins, in addition to domestic Valencias, Blood Oranges and Grapefruit,” continued Sadoian. “All of these varieties are flavorful, nutritious and are incredibly versatile.”
