The Sonora Grape Growers Association (AALPUM) projects 21.5 million 18 lb. (8.2 kg) cartons to be packed and shipped between early May and mid-July, 2021.
AALPUM association president Marcos Camou, AALPUM general manager Juan Laborin and Fresh Produce Association of the Americas grape division chairman John Pandol recently presented the crop estimate via Zoom. This estimate is 2% less than the 2020 harvest and 11% less than the 2019 crop.
The largest volume is white seedless varieties at 44%, followed by red seedless varieties at 43%, then black seedless varieties at 7% and then ‘other’ 6%, which includes Red Globes and specialty varieties like Cotton Candy. Sonora is the only growing area supplying North America that produces a majority of green seedless. Between 3 and 5% of the grape crop is certified organic.
The harvest season is subdivided into four section
Preseason 10% everything prior to May 15 including other early areas.
Early Season 16% May 16-30 .
Peak Season 53% May 31 – June 20
Late Season 21% post June 21 into July
Shipping will continue from Nogales and other forward distribution points will continue until mid-July.
The estimate had a new look that reflects changes in the industry. Not long ago 80% of the volume was three varieties. Today 40% is over a two dozen newer proprietary varieties. “To give a rundown of individual varieties, each with beginning and end of harvest date for each growing area is no longer a useful description of the crop” , said FPAA grape division chairman John Pandol. “The purpose of giving an estimate is so our supply chain partners; operational service providers, government agencies and commercial partners can prepare”
It is safe to say that the first quarter of 2020 was nothing that anyone in society had experienced in the past.
On January 9th, 2020 the World Health Organization (WHO) announced a mysterious Coronavirus-related pneumonia in Wuhan, China. Most of the rest of the world didn’t pay much attention and we were all going about with our lives totally unaware of the drastic changes to come. By January 20th, the CDC reported that three U.S. airports would begin screening for Coronavirus, JFK International, San Francisco International and Los Angeles International.
Then on January 21st, a Washington state resident became the first confirmed case of Coronavirus after returning from Wuhan, China. On January 23rd, Wuhan, China went under quarantine as well as nearby Huanggang, putting 18 million residents under strict quarantine. As we all know, things rapidly progressed from there. On January 31st, the WHO issued a global health emergency for only the sixth time in history.
February 2nd saw global air travel restricted from certain countries and required testing or quarantine before passengers could leave for their destinations. February 3rd the U.S. declared a public health emergency. Cases continued to rise around the globe and fear began permeating society. On March 11th, the WHO declared COVID-19 a pandemic, stating the alarming level of spread and severity as well as the alarming levels of inaction to prevent the spread.
On March 13th, President Trump declared it a national emergency allowing billions of dollars of federal funding to be allocated to fight the spread. On the same day he issued a travel ban on non-U.S. citizens traveling to the U.S. from several European countries.
On March 19th, California became the first state to issue a statewide stay-at-home order mandating all residents to stay home except to go to an essential job or shop for essential needs. This led to many sectors of the economy coming to a grinding halt and consumers mass buying essential (or not so essential, toilet paper?) items, stripping shelves and throwing the retail supply chain into chaos. This trend followed across the nation as state after state began issuing the same stay-at-home mandates.
My home state of Arizona followed on March 20th, thus all non-essential business halted and the state was on a semi-lockdown. Lines at grocery stores, home improvement supply stores, pharmacies and Costco in particular were insane and shelves were quickly bare. Providing food and essential items suddenly became vital to keeping society fed and supplied with the items necessary to adequately prevent spread of the virus and care for those that were unfortunately afflicted with COVID-19.
There was a tremendous decline in the need for transportation in the non-essential sector of the economy and a large increase in those essential businesses. However, struggles emerged throughout the supply chain to maintain the extreme level of production that demand was driving.
Entire production facilities were shut down due to cases and exposures, normal production schedules and timing was pushed out farther and farther and there became an excess in carrier capacity due to these circumstances as we moved into April. Average freight rates across the country took a nose dive and hit lows that we hadn’t seen in years.
Carriers began to run out of operating funds and a vast number of carriers ended up out of business over the second quarter of 2020.
So where are we today, a little more than a year after the first stay-at-home mandates were issued? Most states have re-opened fully or are close to resuming life as close to “normal” as possible.
In relation to the freight market, increased manufacturing and demand for all types of products has increased steadily as states reopen. The recent severe weather has also drastically affected freight demand and rates in most of the U.S. Spot rates for vans are currently up 34% over 2020 through February and reefer spot rates are up 28.5% in the same period nationwide.
Last March there was still a higher level of demand as restocking was driving the market with much more volume. April saw a tremendous decline in demand and saw rates drop to levels seen during the manufacturing recession of 2016.
Our comparable data for rates April 2020 versus this year will likely be even more dramatic than our current numbers, likely up 40% year over year. In the majority of the domestic fresh produce industry, we are approaching our peak seasons from several regions, including California and Arizona.
Rates will continue to be firm and demand for capacity from these regions will spike as we move through the second quarter. Shippers can help assure capacity by having flexible schedules, increased lead times on tenders and most importantly, understanding of the current market conditions when working with their carrier and broker partners. No one could have predicted the last year in perishable transportation, but we’ve all learned how to adapt and excel in this “new normal”.
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Matt Minthorn is the manager of the Phoenix office. He was previously the assistant manager, refrigerated department Boston office, and has been with the Allen Lund Company for 19 years. Minthorn is a graduate of the University of Vermont with a degree in business administration and has 20 years experience in produce sales and transportation.
Berry importer/shipper/marketer Sun Belle Inc. has launched its 2021 Pomegranate Arils program with Green Belle organic and Sun Belle conventional 4.4 ounce cups packed by Agricola Los Medanos S.A. in Ica, Peru. The arils are extracted from just-ripe pomegranates in Los Medanos’ ultra-clean facility using state of the art technology, including UV sanitation, immediately packed in retail cups with peel and resealable lids with a tamper proof outer ring seal, and air shipped to North America.
The arils are ruby sweet flavor pops which enliven meals and celebrations throughout the day – from the breakfast bowl to desserts, salads, savory dishes, and snacks to delicious beverages.
Janice Honigberg, president of Sun Belle Inc. kicked off this year’s program saying: “Pomegranates are among the world’s most ancient fruits, always sought after for their taste and beauty. The tiny red jewels are rich in vitamin C, K, B-6 and potassium. High in anti-oxidants and fiber but with a low-calorie count, pomegranate arils are a delicious ready-to-eat snack for health-conscious consumers. Sun Belle is pleased to offer such superb quality products through the spring and summer months.”
Sun Belle, which is celebrating its 35th anniversary in 2021, was founded by Honigberg in Washington, DC and is the exclusive marketer of the Sun Belle and Green Belle brands. In addition to arils, introduced in 2018, Sun Belle markets and distributes conventional and organic blueberries, raspberries, blackberries and strawberries; certified biodynamic organic cranberries and blueberries; golden berries, Black Mission figs and red currants; and green house and specialty produce. Sun Belle operates distribution and sales centers in Jessup, Maryland; Miami, Florida; Schiller Park, Illinois; Oxnard, California; and Laredo, Texas.
ISSAQUAH, WA – The total production of New Zealand apples and pears this season is estimated to be approximately 21- 22 million cartons. The exportable crop is expected to be 19.5 million cartons.
There were 3 significant factors that led to the estimated volumes of New Zealand apples and pears this season:
Despite favorable weather in most New Zealand growing regions, hailstorms wreaked havoc on the South Island this season. Some growers located in the South Island’s Nelson area lost 70-90% of their fruit from hail damage. The hail damage was very specific to the Nelson area. In other growing regions of New Zealand, the good weather supported positive growing conditions for the fruit and brought beautiful color.
Vanguard is monitoring how the labor challenges will impact the ongoing harvest and overall volumes, and volumes specific to every variety.
Vessel availability is also adding to the challenges. Shipping lines are informing New Zealand packers that they are suspending service to specific destinations given the complexities of making even close to timely ETA’s. An example would be that OOCL has informed the New Zealand industry this week that they will not take anymore bookings for Europe, and NYK has cancelled bookings and all routes to Asia and Russia.
Growers continue to harvest and pack early varieties in New Zealand, mainly Gala and in smaller numbers Early Fuji and Beauty. Complexities related to weather, labor, and shipping will be key variables to stay alert to throughout the season.
Since gaining market access to the U.S. in August 2017, Colombian Hass avocado exports have increased significantly and industry stakeholders are optimistic about a bright future.
CorpoHass is a national industry organization which represents two of the worlds largest avocado companies, Westfalia and Mission Produce. These pair of companies have extensive operations and growth plans in Columbia.
CorpoHass reports exports have grown much faster rate than was expected.
While Colombia shipped only 29 metric tons (MT) of Hass avocados to the U.S. market in 2017, that number rose to 346MT in 2018, followed by 1404MT the following year.
In 2020 through November, 2943MT were exported.
These numbers pale in comparison to the supplies Mexico and Peru ship to the U.S. – as well as volumes shipped by Colombia to the EU, its leading market. However, they indicate a strong upward trend is set to continue well into the future and eventually position Colombia as a reliable alternative avocado supplier to the U.S.
CorpoHass is predicting an annual growth of at least 50 percent.
The company notes exports to new markets like the U.S. depend on compliance with the operational work plan. This includes the control and monitoring of quarantine pests both on the property and in the buffer zone for a determined minimum period.
In the middle of 2019, the phytosanitary protocol was relaxed. This has allowed exports not only to be greater in volume but also more frequent, especially during the slower part of the harvest.
As of December 23, 2020, the last update date, there were 94 licensed farms in six departments and 15 packing plants in five departments. This number is constantly increasing.
Vidalia onion shipments will start the third week of April from Southeastern Georgia.
For the 2021 season, approximately 10,000 acres of Vidalia onions were planted, Vidalia Onion Chairman Aries Haygood said. “We are anticipating a good harvest, and consumers across the country should have ample supply throughout the season.
The date growers can start packing under the Vidalia onion name is April 19. The date is determined each year by an advisory panel comprised of Vidalia industry members, state agriculture scientists and the Department of Agriculture, according to a press release.
Soil and weather conditions in south Georgia are taken into consideration to select the date, to help ensure only the highest-quality onions end up on consumers’ plates.
“It is a special moment every year when we announce the Vidalia onions pack date, but this year we will mark the passage of the 1986 Vidalia Onion Act by our state legislature that played a defining role in making our state’s official vegetable an iconic brand recognized around the world,” Georgia Agriculture Commissioner Gary Black said in the release.
First discovered in the 1930s, Vidalia onions quickly grew in popularity over the next few decades. The Vidalia Onion Act established that only sweet onions grown in 20 South Georgia counties from a distinctive Granex seed and packed and sold on or after the official pack date each year could be called Vidalia onions.
Known for its sweet, mild flavor and treasured by cooks nationwide, the vegetable is hand-cultivated by 60 registered growers. They represent about 40 percent of the sweet onion market and are sold in every state.
Total potato sales at retail hit five-year record highs for both dollar and volume sales in 2020, according to Potatoes USA.
Potatoes were consistently one of the highest performing produce items in terms of year-on-year growth, as consumers looked to purchase longer-lasting fruit and vegetables during the lockdowns.
Dollar sales increased by 16% compared to 2019 and all categories, except deli-prepared sides, grew by double-digit dollar sales.
Dehydrated recorded the highest sales increases in dollars by 30% and volume sales by 25%. Canned and bottled saw the second-largest dollar increase at 29%, and frozen had the second-largest volume increase at 23%.
The largest growth in dollar and volume sales for potatoes occurred from April through June – the onset of the pandemic – although all months grew by over 9% for both metrics.
Fresh sales increased by almost 21% in dollars and 15% in volume. All types increased in dollar and volume sales by at least 6%.
Within the fresh category, medley potatoes had the highest dollar and volume sales increase with dollar sales by 34% and volume sales by 38%.
While all package sizes saw double-digit growth in dollar sales, one-pound through four-pound bags saw the largest increase, growing by 24% in dollars and 19% in volume.
Five-pound bags make up 47% of all package sizes bought at retail, and grew in dollars and volume sales by double-digits compared to 2019.
Shipments of lettuce and other leafy greens are shifting from the California and Arizona deserts to the short Huron, CA, season, with the Salinas Valley season just getting underway this week. Some caution is urged in loading head lettuce, which has quality problems.
Markon Cooperative notes in its weekly Fresh Crop Report, lettuce prices are steady and supplies are strong as consumer demand is rising with more restaurants opening.
USDA reports both romaine and iceberg lettuce prices have nearly doubled in the last month.
Romaine, green leaf and spring mix supplies are very good quality, Markon reports, while iceberg lettuce has some issues with frost, mildew and wind-damaged outer leaves. It is recommended your receiver be alerted while still at shipping point the condition of the lettuce.
The transition from the desert areas to northern California growing areas occurs every spring.
California/Arizona desert lettuce and other vegetables – grossing about $6100 to Chicago.
Florida is the first state in the U.S. to ship peaches each year, which typically occurs near the end of March and is available into May. It may not be a long season, but it’s the first domestic stone fruit crop of 2021.
Florida’s Institute for Food and Agriculture Sciences is expecting the best crop in 5 years.
Florida Classic Growers of Dundee, FL should begin loading its peaches by the end of March, with volume peaking the first two weeks of April,
The season appears it will be a little more condensed than in previous years as volume is expected to dwindle after the first week of May. Volume will probably be off slightly, although an excellent season is expected.
Since 2004, Florida commercial peach acreage has hovered in the 2,000 range. Described as stable, the reason is due to climate, not economics.
By Iyer Amruthur, Business Development Specialist, ALC San Antonio
Guanajuato, Michoacán, Puebla, Jalisco, and Sonora. What do these names all have in common, despite possibly being unknown to you as an average consumer?
It is also the main export of Guanajuato. So, why does this matter? Just like you, I buy my broccoli from HEB here in Texas (although you may have a Kroger, Publix, or even Walmart in your areas). It’s one of the many year-round vegetables my family enjoys. And recently if you’ve caught the news, the weather has been pretty awful for us in Texas.
Inevitably, especially with border shipments, we see adverse weather throw hurdles into the logistics game. At times the border even shuts down, to the dismay of both the U.S. and Mexico. Some 16,000 trucks pass through the border town of Laredo, TX every day, and this accounts for 37% of all our trade between the U.S. and Mexico.
As you can guess, when those 16,000 trucks can’t move, it’s going to create some big delays! How does this affect you? Many people end up confused as to why weather in Texas causes some stores to run out of broccoli, hike prices, or have older product in places like Chicago.
While we have many sources of produce, our nation’s grocery stores aim to hit between the best price and the best quality which sometimes means an import! As you must have heard, not just Laredo, but most of Texas shut down its highways and freight came to a standstill. Even at my local HEB, you can see a reduced selection of fruits and vegetables at higher prices.
Grocery chains work hard to do whatever it takes to make sure you have what you need when you enter the store, and nothing exceeds the urgency of perishable goods. Here at ALC we work with our grocery customers to smooth things out. There are things we can do as a team, that are difficult to do from a company’s in-house logistics.
We can navigate the massive amounts of information, rescheduling, constantly shifting prices/supply of trucks, arrange transportation from other sources around the country and put it together in a fashion that provides an immediate solution. During poor weather conditions, 3PLS are some of the last doors that close, and with our expertise and resources, we can even provide solutions remotely.
Weather is Mother Nature’s way of throwing us curveballs and we strive to be able to react to our customers’ needs. Our goal is to ensure the consumer can count on fresh quality products available in their local stores no matter the weather in Texas or Chicago.
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Iyer Amruthur is a business development specialist in the ALC 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.
