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BC Tree Fruits Shuts Down Cooperative as Apple Season Approaches

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Citing extremely low fruit volumes, bad weather, and difficult markets, B.C. Tree Fruits cooperative of Kelowna, British Columbia has reportedly dissolved and closed its doors on July 26.  

Formed in the 1930s, the organization sent a letter to its members recommending they “immediately search for another alternative to market your fruit for the balance of the 2024 season.”  

The letter, obtained by Global News Canada, went on to say the board of directors could not “effectively operate the business and provide pool returns to growers,” and that it is “taking steps to obtain court direction and assistance to properly wind down the Cooperative to maximize recovery for all stakeholders.”  

The cooperative includes more than 230 members, who now must find alternative buyers with the Okanagan apple harvest looming. The CBC reported B.C. Tree Fruits has faced financial challenges and grower unrest for the past few years, voting to close a packing house in 2022.  

Growers held a vote, unsuccessfully, to dissolve the board of directors, and have now asked for government intervention to support the British Columbia tree fruit industry.

  

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Peruvian Blueberry Exports Expected to Show Good Volume in the Months Ahead

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September and October account for about 50% of the annual Peruvina blueberry exports, according to ProArándanos, the Association of Blueberry Producers and Exporters of Peru.

Peru’s fresh blueberry exports have increased over the past decade.  However, after years of steady growth, there a drop in production last year, declining from 286,000 tons to 224,000 tons, due to weather factors.

ProArandanos reports last season, almost 56% of the total volume was shipped to the United States. Europe was the second-largest market, accounting for 30%, with the Netherlands alone making up about 20%.

Next is China, where last season organic blueberries accounted for 12%, while the remaining 5% is distributed among more than 20 countries including South America, Central America, the Middle East, and Southeast Asia.

While exports primarily occur in September, October, and November, Peruvian grapes are actually shipped the year around.

In 2016 Peru had less than 2,000 hectares planted, 90% was in La Libertad, and at the close of last year the total hectares certified for export were over 18,000 hectares.

La Libertad is still the main region in terms of number of hectares, but its share dropped by half, at 45%, due to the growth of other regions such as Lambayeque and Ica.

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Mandarin/Tangerine Exports from Peru Expecting Small Increase

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Peru’s mandarin/tangerine exports are expected to increase slightly in the marketing year from March 2024 to February 2025, a new USDA report says.

Production is forecast to reach 560,000 metric tons, up 2% from a year ago, while exports are forecast to rise by 3% to 210,000 metric tons.

The harvest season in Peru goes from March to October peaking from June to August, though the report said Peru produces mandarins/tangerines all year long.

Higher productivity driven by recent cooler weather and potentially favorable dryer weather conditions is expected to help production and exports, according to the report.

The U.S. will likely remain Peru’s top export partner for mandarins and tangerines, accounting for 50% of exports.

Overall, Peru expects a positive balance in its production among varieties. Early varieties may be lower while the later varieties have better yields, according to the report.

Production in Peru’s Amazon basin and highland regions is destined for the domestic market, while production in the valleys of Lima and Ica is predominantly export-oriented.

Production in Lima and Ica benefits both from the desert conditions (reduced pest pressure, large diurnal temperature variation) as well as close access to the major Ports of Callao (Lima) and Pisco (Ica).

The market for exports is dominated by easy peelers and seedless varieties including murcott, tango, primosole, clementine and orri.

Peruvian statistics show the tangerine production area is 11,119 acres, while mandarins and other hybrids account for 45,714 acres. Tangelos represent 15% of the total mandarin/tangerine area in Peru, according to the report. Clementina, w. murcott and satsuma are the most popular varieties in Peru.

The report said Peruvian mandarin/tangerine exports will increase by 3% to 210,000 metric tons.

Between January to December 2023, Peru exported fresh mandarins/tangerines primarily to the U.S. (46%), the Netherlands (14%) and United Kingdom (10%).

Mandarin/tangerine exports to the U.S. in March 2024 to February 2025 are expected to reach 100,000 metric tons.

The Peruvian government considers port development a strategic priority, the report said. A new port about 40 miles north of Lima, labeled the Megaport of Chancay, is being touted by Peruvian officials as revolutionary for logistics between South America and Asia. The port, constructed and operated by Chinese state-owned firm Cosco Shipping, is in the final stage of construction and is expected to be inaugurated by the end of 2024, the report said.

Peru’s Agricultural Sanitary Agency (SENASA) plays a leading role in the monitoring and control of fresh fruits for exports, the report said. According to official data, SENASA has registered 424 mandarin/tangerine production sites. In addition, 31 packing and treatment facilities have been registered.

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Avocado Consumption Will Continue to Increase: Rabobank Report

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Rabobank has issued a new RaboResearch report which points out despite water availability challenges in some producing countries, avocado production and trade will continue to grow.

The report relates Latin America is the top exporter, while the U.S. continues to be the primary importer.

Competition and margin pressures, especially in South America, are likely to move the market toward consolidation, the report said.

Global avocado exports are expected to surpass 3 million metric tons by 2025, the report said, with Latin America at the forefront.

Mexico, Peru and Colombia will be the largest avocado exporters, according to Rabobank projections, while Brazil, Ecuador and other countries are emerging as global suppliers. 

Demand growth in the European avocado market has spurred increased production in the European Union, mainly in Spain, the report said. However, water availability will limit large-scale expansion of avocado production, and further area expansion is not expected for European production, according to the report.

Africa is witnessing steady growth, notably in Kenya and Morocco.

U.S. demand for avocados continues to climb, with 2023 imports at a record 1.26 million metric tons, up 11% from 2022.

Mexico commands a 90% share of U.S. avocado imports.

Europe’s demand for avocados is predicted to grow, though its reliance on imports will expand in the years ahead, the report said. Demand also is rising in other regions.

“Opportunities abound in Asia and Latin America, with untapped markets poised for growth. South American countries, in particular, are ripe for increased consumption, pending promotional and marketing initiatives,” David Magaña, senior Rabobank analyst for fresh produce, said in the report.

Asia’s imports have surged by 29% in 2023, led by China.

While the hass variety now dominates global trade, Magaña said other avocado varieties will likely grow.

“While hass avocados will continue to dominate, hass-like varieties will gradually gain ground, particularly those with higher yield potential,” Magaña said in the report. “The industry faces price pressures as global production volumes rise, with quality and size being pivotal in the American and European markets.”

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Intermodal Shipping – Features, Benefits, and Forecasts for Q4

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By Kat Ball and Jim Brister ALC Vancouver, BC

Well, it’s alright, we’re going to the end of the line. As The Travelling Wilburys appreciate, trains are an important and instrumental part of our nation’s history. America’s first intercity railroad, the 13-mile Baltimore and Ohio Railroad was completed in early 1830. Canada’s first railway line opened in 1836 with the Champlain and St. Lawrence Railroad, which connected two sides of the river outside Montreal. Nearly 200 years later, there are seven major railroads operating in the United States and two in Canada. These networks join North America with unlimited access to every major port, city, state, and province. And while the end of the lines exists within this network, there is no end in sight for the utilization of this mode in logistics. Intermodal shipping continues to be a popular choice for many shippers to move their goods to market across North America. 

There are many features and benefits of intermodal (rail plus truck) shipping that make it an attractive option for logistics:

  • Nationwide rail infrastructure— Shippers can speed their goods to market with door-to-door service, which includes impressive weekly rail schedules to multiple destinations.
  • Non-stop rail service— Public rail stops multiple times to add or remove containers, which often subjects fragile and perishable items to prolonged weather extremes, shifting, and damage. For the rail portion of dedicated commercial intermodal, the networks operate non-stop, coast to coast, which means more product moving and fewer delays. 
  • Increase overall capacity— Intermodal allows for additional capacity compared to truckload shipping. It provides access to a large pool of refrigerated and dry van containers with different specifications available (53′, 48′, 40′ containers, high cubes). In addition, intermodal also has a large network of drayage options from all major terminals in Canada and the U.S. 
  • Product protection— 24/7 monitoring via GPS, remote temperature adjustments, and standardized container sealing for unparalleled security, a top concern for many stakeholders facing increased theft, fraud, and scam incidents in the trucking market. 
  • Cost savings— Intermodal is more cost-effective than over-the-road trucking and allows for savings on freight costs compared to using trucks alone. By providing competitive and consistent pricing, budget fluctuations can be minimized. 
  • Time savings— One point of contact door-to-door; using a broker who manages intermodal and will handle all customs clearance, rail billing, and third-party communications on behalf of the shipper.
  • Environmental, social, and governance focus—Intermodal shipping has less impact on the environment than over-the-road trucking. Its carbon footprint is a fraction of that of long-haul trucks, and it has a different set of regulatory mandates than trucks. Stringent and regulated security measures safeguard goods throughout the supply chain.

Looking down the line to Q4, most reports predict intermodal volume to grow into Q4. Key indicators to watch are domestic container volume, which is largely influenced by shippers’ inventories, consumer spending, and retail sales. Retail sales are growing, albeit slowly. This, coupled with lower retail inventories, bodes well for volume growth in intermodal. In addition, many experts are looking at the truck market’s indication of a freight rate increase. Trucking freight indexes fell 1.8% month-over-month mid-year, looking like rates have hit the bottom. As rates move up, rail will become a more favorable option for the end of 2024. So, All Aboard, it looks like it will be an exciting end to 2024!

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Kat Ball is the general manager of the ALC Vancouver, BC office. She received her undergraduate degree in English from Simon Fraser University, followed by a post-graduate diploma in Marketing and Sales Management from the University of British Columbia. Kat began working for ALC Vancouver, BC (formerly United World Transportation) in 2006, gaining experience in various roles. In April 2023, the Allen Lund Company acquired United World Transportation and Kat aided in the transition as assistant general manager. The following April, she was promoted to general manager.

kat.ball@allenlund.com

*****

Jim Brister is the business development manager of the ALC Vancouver, BC office. As a Commerce Business graduate out of the University of British Columbia, he has worked across the building materials and construction industries living in both Canada and the U.S. before starting United World Transportation in 2003. Now as part of the Allen Lund Company Jim continues to enjoy the challenges and pace of the transportation world.

jim.brister@allenlund.com

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Four Star Fruit Projects Strong Grape Shipments as Season Progresses

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Delano, CA — Premium table grape grower and marketer, Four Star Fruit looks forward to another strong Holiday grape season.

Recognized for its exceptional sweetness and distinctive late-season profile, the Holiday variety is a highly sought-after seedless variety, easily identified by consumers nationwide. The summer heat wave will create challenges for some varieties, but Holiday is in the early stages of maturity, and the company is not seeing any roadblocks.

“We are looking forward to another great Holiday season with strong promotable volumes,” said Jack Campbell, President of Four Star Fruit. “Our team is fully equipped and ready to collaborate with retail partners to deliver an exceptional eating experience, driving robust consumer demand this fall.”

Earlier this year, Four Star Fruit solidified its position as a frontrunner in the table grape industry with the recent acquisition from Agriculture Capital of Columbine Vineyards’ complete Holiday grape program. Under the terms of the acquisition, Four Star Fruit has exclusive rights to all brands, trademarks, and DNA associated with the Holiday variety.

Holiday clamshells and bags are available upon request; please get in touch with your Four Star Fruit sales representative for more information.

About Four Star Fruit, Inc.
Four Star Fruit has been in table grape production as a grower-shipper since 1987. The company is family-owned and operated for three generations by the Campbell family. Four Star produces remarkable premium conventional and organic grapes, including the trademarked Pristine® variety. Their fields are located throughout the San Joaquin and Coachella Valleys and internationally in Peru, Chile, and Mexico. Their top-of-the-line facility allows for innovation and flexibility in packaging. Four Star farms thousands of acres of grapes annually while carefully ensuring each bunch’s quality from planting to harvest, packing to shipping.

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Late Summer U.S. Berry Shipments are Expected to Remain Strong

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U. S. berry shipments from one coast to the other in the first half of the summer’ were good and strong volume is expected for the last half of the season as well.

California strawberries loadings are strong in California, and blueberries now are now being shipped from California, Michigan, New Jersey, Oregon and Washington. Blackberries and raspberries are available from the East Coast, California, Washington and Oregon.

Bobalu Berries based in Oxnard, CA reports strawberry movement remains strong in the late summer for the company which ships product the year around.

The firm has been shipping its spring crop from Santa Maria, CA., and its late-summer volume was expected to kick in during August when the fall strawberry crop begins.

Oxnard will follow with a fall strawberry crop extending into 2025.

California Giant Berry Farms headquartered in Watsonville notes great quality and flavor for its strawberries from the Watsonville/Salinas area.

The company’s has just completed its strawberry season in Santa Maria.

As of the week ending July 6, California growers had shipped 131,827,552 trays of strawberries. That’s up from 109,085,918 trays at the same time a year ago and up from about 128 million trays in 2022, according to the California Strawberry Commission, based in Watsonville.

Gem-Pack Berries of Irvine, CA sources summer strawberries from the Watsonville/Salinas and Santa Maria regions; raspberries from Watsonville and the Mexican state of Baja California; blackberries from Oxnard, CA., Watsonville and Tennessee; and some blueberries from the Pacific Northwest.

Gem-Pack will have organic strawberries from Watsonville as late as October and sources organic and conventional raspberries from Baja California nearly year-round.

Berry shipments should remain steady into August, when volume will start to decrease.

Concerning blueberries, Consalo Family Farms of Vineland, N.J., is transitioning from New Jersey to grower partners in Michigan.

Consalo Family Farms also has a growing organic blueberry program and continues to expand blueberry varietals.

Cal Giant reports blueberry quality out of the Pacific Northwest is “good” on conventional and organic product. Blueberry quality out of Mexico also is good, although there is some scarring and shriveling fruit due to hot weather.

Watsonville raspberry shipments are reported steady with good quality, according to Cal Giant. Good quality is reported from Mexico.

Blackberry quality is good from Watsonville is with steady volumes, which are now increasing.

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New Mexico Onions are Being Shipped in Good Volume

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rwp

he New Mexico onion season was off to a strong start in early July, shippers and USDA numbers report.

The USDA indicated that New Mexico onion shipments for the week of June 23-29 totaled 912 (40,000-pound) truckloads or about 48% of the total domestic truck shipments of onions that week.

Season-to-date shipments of New Mexico onions through June 29 were 4,298 truckloads, up 19% compared with the same time a year ago.

Brandon Barker, vice president of Barker Produce, Las Cruces, N.M., said on July 2 that the state’s onion harvest was close to halfway finished. Yields have been good this year, and supply of the state’s onion is projected through the end of August, he said.

Demand, retail programs and price contracts have been strong, Barker said, with the yellow onion market a little more sluggish than the red and white onion markets.

“It’s been a good year for us,” he said.

Chris Franzoy, president of Legacy Fresh LLC, Deming, N.M., said he was happy with the quality of New Mexico’s onions. The company is packing red, yellow and white onions.

“We service basically every market from retail to food service, as well as processors,” he said.

Franzoy said Legacy Fresh was finishing up the intermediate transplants and moving into its direct-seeded spring-planted onions.

“They’ve got nice healthy tops, and we expect to have good quality all the way through,” he said.

Overall domestic supply of onions could drop later in July, which may result in higher shipping point prices, he said.

Franzoy, a fourth-generation farmer whose family operates Billy the Kid Produce, along with his wife, Tammy, launched Legacy Fresh to serve as the marketing arm of Billy the Kid.

The company’s growing operation spans about 3,000 acres, and its packing facility can pack up to 30 full truckloads on a daily basis, Franzoy said.

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US Closes Million-Dollar Deal for South African Table Grapes

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Prosper Africa, a presidential initiative to strengthen strategic and economic partnerships between the United States and Africa, announced the U.S.-Africa Trade Desk’s (USATD) first trade agreement, valued at $56 million for 700 containers of South African table grapes.

The USATD, a joint venture between Prosper Africa and Afritex Ventures, aims to bridge the gap between African agricultural suppliers and U.S. buyers.

This transaction is expected to help U.S. retailers keep produce prices stable for consumers during the off-season, when commodity prices typically rise by 35%.

Financed with a trade facility structured by EAS Advisors and Scipion Capital, the deal increases value for African producers by providing firm purchase prices and reducing market volatility.

Shipments will begin the first week of November 2024 and continue through April 2025, filling gaps in the U.S. season.

USATD will facilitate the entire transaction, providing an end-to-end solution bridging the gap between retailers’ U.S. and African production needs.

“I am excited not only to celebrate the first USATD agreement but also that South African grape growers will have the ability to export directly to U.S. retailers on a large scale,” said Prosper Africa coordinator, British A. Robinson.

“Prosper Africa is proud to work with African companies to help them take advantage of the African Growth and Opportunity Act (AGOA) and facilitate their partnerships with U.S. buyers who want to diversify their suppliers and find high-quality products for their consumers.”

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All U.S. Imports of Mangos Currently Coming from Mexico

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Through the first six months of 2024 Mexico is the only origin currently exporting mangos to the U.S., with a total of 55,404,132 boxes for the season.

Volumes for the Mexican season, which started in January and is expected to last until October, are expected to be about 1% lower year-on-year, according to the National Mango Board report

The total mango volume shipped on the week ending 06/29/2024 was approximately 4,221,703 boxes.

Projections for the season are at approximately 94.8 million boxes, with the main varieties being: Tommy Atkins (34%), Ataulfo/Honey (27%), Kent (25%), Keitt (11%), and others (3%).

There are currently three main mango varieties shipped to the U.S. market: Kent (52%), Tommy Atkins (29%), and Ataulfo/Honey (16%).

Additionally, Colima, Jalisco, Michoacán, Nayarit, South Sinaloa, and North Sinaloa are the regions currently harvesting and/or packing.

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