Fewer exports of Peruvian mangoes are predicted this year as Brazil and Ecuador are wrapping up their seasons.
Exporters in Peru express optimism starting their season since Ecuador had season higher volumes towards the beginning, with lower volumes projected for its late season in January.
The current prediction of mango shipments from Peru to the U.S. for the season is 15.5 million boxes, 20% of what was exported to the U.S. a year ago. Mango volumes from Mexico will only start to pick up at the beginning of March.
During the last weeks of December, the total from Brazil, Ecuador and Peru was 25% lower than the same period of 2019. Estimated arrivals for January 2021 are substantially lower than those of last year at the same time.
Although demand during this time isn’t high, the low arrivals are already driving prices up to unusual numbers at a time when this normally wouldn’t happen (at least not in the last two seasons).
It is mid season for South African and Chilean stone fruit exports as both locations are seeing minor delays, but are overall pleased with how the season is moving along.
After three rough years, South Africa is having a normal crop. Hortgro, the organization that represents South Africa’s stone fruit growers, reported updated numbers in volumes with increases across the board. Plums are estimated to be up by 27% for the season, returning to a normal crop season while peaches and nectarines are also expected to be up by eight and 10 percent, respectively.
Icon Fruit reports more optimism compared to this time last year. Apricot export volumes are exceeding initial export estimates and are currently up 90% compared to last season. If current trends continue there could be 12 million cartons of plums.
This volume increase is due to a winter with good rains and cooler spring temperatures during the flowering period. The sizes of the stone fruit are bigger, which also helps increase the number of cartons that are exported.
Chilean Exports
Chile exporters have had some frustrations due to a slow start of the season and are just beginning to see normal sizes and volumes catching up to predicted numbers.
Verfrut North American expects good exports throughout January and February.
The company reports older varieties of plums with small sizes will not be sent to the U.S. because Americans prefer new varieties and larger sizes.
By Matt Fyten, Operations Manager, ALC San Francisco
Everyone is familiar with the phone call, the Monday after a hectic holiday pull, “Hey it’s Never There Trucking, remember me? I have four empty reefer teams ready to go anywhere, can you help me out?”
As brokers, we have to make a choice on which carriers we give our business to in an effort to support our customers. While it might be tempting to give our business to that truck that is ready to haul our loads at a low rate, experienced brokers know that is not always the best long term solution.
What about the carriers that gave you trucks all year and even took on extra loads during that holiday? Are we really going to pass on those options for a truck even if it’s 100 dollars cheaper? These are the questions that are fiercely debated among brokers every day. Managing a carrier’s load volume as well as their relationship expectations has never been more important as we navigate this time of uncertainty.
The largest challenge for produce transportation brokers was that midway through 2020 dry van rates surpassed refrigerated truck rates. There is significantly less liability for a carrier to haul a dry van load compared to a refrigerated load. Refrigerated trucks hauling fresh produce know that they are going to get paid more money because they must wait for extended periods of time to get loaded, use more fuel in their reefer units, maintain a continuous cold chain, and are dealing with a product that has a short expiration date.
We spoke to one of our carriers who stated, “we are getting over $3.50 a mile, having zero claims with flexible loading and delivery dates, along with being able to use 80% of my reefers without having to buy new equipment made dry a profitable option for us.”
They know any breakdown or issue could cause a very expensive problem, constricting an already volatile truck market as our country was entering various stages of pandemic responses.
The rate discrepancy has made many refrigerated trucks that specialize in produce hesitant to commit to a year-long contract rate in 2021. I reached out to some of our highest volume carriers to get their thoughts on the upcoming year. Another of our larger carriers stated that contracts this year are “very risky and a gamble he is not willing to take.”
One solution is to work out mini contracts. These are locked in rates that can last for six months, a season, a month, or even a week. Having carriers sign up for programs like our own RIGS, will ensure we keep their trucks loading with ALC. Carriers take comfort in knowing that a single company can provide them round trips and they don’t need to search the load boards for freight. That same carrier also informed us that they avoid the posting boards because in times like this they need to be assured that they will receive payment from a reputable company like ALC.
Coming off of a very challenging year in 2020 it might be tempting to give business to the less expensive truck that shows up as the market softens. Last year showed us a market shift can come at any moment not just during the summer months or before the holidays. We have to treat carrier relationships like a long-term investment and continue to educate our carriers on the value of repeat business with ALC.
*****
Matt Fyten joined the Allen Lund Company in August of 2014 as a broker in training. Over the years he has held the roles of broker, senior broker and now Operations Manager in the San Francisco office. Matt holds a degree in Liberal Studies from San Francisco State University and has 12 years of experience in sales/customer relations.
For the first time, a white strawberry that smells a bit like a pineapple will go to market in the U.S.
As western-central Florida strawberry harvesting season continues through the end of March, University of Florida Institute of Food and Agricultural Services is releasing two new varieties — the white one and a red one — neither named yet, according to a news release.
“The flavor is very different from a typical strawberry, sweet but with a pineapple-like aroma,” Vance Whitaker, associate professor of horticultural sciences and a strawberry breeder, said in the release. “White strawberries have been popular for some time in Japan, but this is expected to be the first white strawberry on the market in the United States.”
The strawberry is white inside and out even when it’s ripe and ready to eat. It has a slight pink blush on the skin and red seeds, said Whitaker, also a faculty member at the Gulf Coast Research and Education Center.
Breeders crossed white strawberries from the wild with modern strawberries to make this new specialty.
He expects these white strawberries to be available in U.S. grocery stores by 2022, marketed as “pineberries” because of the pineapple aroma.
Larger, more concentrated shipments are taking place with the latter portion of the Peruvian table grape season.
Due to a labor strike the 2020 portion of the season, shippers are making up for lost time.
Peruvian grape exports to the U.S. are up 21 percent this season.
El Pedregal S.A reports from mid January on, the U.S. market is likely to see the arrivals of large shipments of Peruvian grapes. Green varieties will probably be the largest portion of this volume concentration, since it is a fruit that most producers have prioritized to harvest, due to their greater sensitivity to quality problems.
El Pedregal predicts a significant increase in exports for both green and red seedless table grapes with exports to destinations around the world reaching around 18 million boxes and 14 to 15 million boxes respectively.
This increase will also be seen in Peruvian grape exports overall. Last season Peru exported 48 million boxes. This year it is forecasting about 55 to 56 million boxes. The season is expected to start winding down the end of January or early February. This is the time period when Chilean exports begin.
The world’s largest fresh produce wholesale terminal, Hunts Point Produce Market, has a labor union strike over a wage dispute.
Hunts Point leaders on the Bronx market and the 1,400 member labor union are embroiled in an escalating debate on what’s a fair wage increase.
The market released a statement saying it was coordinating with the New York Police Department and bringing in a private security firm, to assure safe access is maintained for trucks bringing fresh healthy produce in and out of the market, as well as for produce buyers coming to the market to purchase produce.
The cooperative board represents about 30 produce firms, which supply about 60% of the produce for New York City; it also serves the surrounding region.
This will be the first strike at the Hunts Point market in almost 35 years.
The union is seeking a $1 per hour wage increase, and Hunts Point leaders offered 32 cents. The market reports business is down 30% since last spring due to the pandemic. Union workers earn between $30,000 and $40,000 a year, according to Teamsters Local 202.
Ready-to-eat beet brand, Love Beets USA, celebrates its 10-year anniversary this month.
With a robust product line, notable distribution, and beloved branding, they took what was formerly thought of as a polarizing vegetable and created delicious, modern, and versatile offerings that revitalized how Americans view beets.
Love Beets began as a true labor of love by husband-and-wife team, Guy and Katherine Shropshire. Recognizing there was a gap in the U.S. market for tasty, ready-to-eat beet options, they debuted their family’s favorite recipes at the 2010 Fancy Food Show. The response was overwhelmingly positive and virtually everyone who tasted their beets said they, “love beets!”
Though they felt it could be hard to overcome the initial perception of “grandma’s beets” and antiquated canned beets in the U.S., after witnessing the excitement and reaction to their products at that first show, Shropshire said he never doubted the potential of Love Beets.
“It’s a real-life example of success by joining a genuinely great product together with talented, super hard-working people,” he said.
Consumers can now enjoy Love Beets items in more than 15,000 retail locations across the country. Distribution has expanded to many prominent retail partners, including Costco, Whole Foods, Kroger, Wegmans, Sprouts, Target, and many more.
As beets biggest sponsor, Love Beets has had a substantial positive impact on the perception of beets nationwide, and they’ve made a name for themselves in both the produce industry and larger natural foods CPG space.
“We’ve been able to create a well-known and well-loved brand identity within the produce space, a department full of commodity and private label offerings with a lot of competition for shelf space,” said General Manager, George Shropshire.
“Beyond that accomplishment, we’ve also worked hard to grow as a U.S.-grown and produced company. We’re proud of our made in the USA label that stands out among our competitors.”
Looking forward, Love Beets aims to drive growth through innovation, sustainability, and continuing to drive trial and consumption. They will continue to provide consumers with healthy and convenient options that taste good, while working on an enhanced brand identity with updates to packaging and the introduction of new flavor offerings within their marinated baby beet line.
U.S. citrus shipments show mixed results in comparison to December’s estimate for the 2020-21 season.
The USDA January forecast for oranges for December’s forecast showed volumes of all variants decreasing by 11.3 million boxes from the 2019-20 season to 56 million boxes.
January’s figures continued with this decreasing trend, reporting the national production total will likely be two million boxes fewer at 54 million. Additionally, calculations specifically for Florida’s non-Valencia orange shipments is predicted to be down nine percent, showing loadings dropping from 22 million in December to 20 million this month.
Florida’s Valencia orange volume remained unchanged at 34 million boxes. Current fruit size is below average and is expected to stay that way at harvest.
Forecasted grapefruit shipments from December were also down from last year’s numbers by 450,000 boxes. However, January’s numbers break from the trend with a predicted five percent or 200,000 box increase.
If realized, this increase will still be 5% less than last season’s final grapefruit shipments.
Following suit, estimates in California and Texas for the current year increase 400,000 and 100,000 boxes, respectively. Meanwhile, January’s forecast for tangerine and tangelo production remained unchanged at 1.1 million boxes, 8% more than last season’s 1.02 million boxes.
Here’s a look at possible loading opportunities for fresh fruits and vegetable across the U.S.
South Texas
Primarily thanks to imports from Mexico this is one of the most active areas for produce hauls.
Mexican blueberry imports through South Texas are getting a boost because of problems in California. Movement out of Chile is increasing. However, availability is being limited by a backlog unloading Chinese container ships at West Coast ports, with ships waiting as long as two weeks for berths. This slowdown is also affecting quality of the berries on these ships, leading to an increase in demand for fresher Mexican blueberries.
Increasing movement on Mexico strawberries crossing through Texas is expected with over 400 truck loads weekly happening now. However, avocados are triple this amount in volume. Over 1200 loads of vine ripe and plum tomatoes are now crossing weekly. Of course, there are dozens of other smaller volume items available as well.
Lower Rio Grande Valley Mexican produce – grossing about $6700 to New York City.
Florida
Shipments of Florida winter tomatoes are normally providing decent volume this time of year, but cool weather is holding back production. This also is true with dozens of other vegetable items.
Arizona
The Yuma area is rolling pretty good led by head lettuce and romaine averaging around 1700 truck loads per week. There also are lesser amounts of other veggies here, as well as across the state line in California’s Imperial and Coachella Valleys. Meanwhile, Mexican crossings at Nogales continue with a wide range of veggies.
Yuma area lettuce – grossing about $5900 to Chicago.
Miscellaneous States
Colorado’s San Luis Valley is moving around 500 truckloads of potatoes each week….There’s much less spud volume available from Central Wisconsin and the Red River Valley of North Dakota and Minnesota.
Eastern North Carolina continues to ship sweet potatoes, but there are less than 200 truck loads per week.
The news comes after a brief yet influential period of impressing upon the federal government the urgency and need for the expansion by city leaders, U.S. senators, and other key stakeholders. The 2020 permit amends the current permit to allow for the addition of another bridge at the international port of entry.
This second span will give Pharr a competitive advantage by adding additional lanes to completely separate trucks and cars, dedicating specific lanes for empties, full cargo, certified cargo, and passenger vehicles, thereby adding capacity and reducing wait times. With this permit, Pharr will now have an official gate-to-gate FAST lane, or set of FAST lanes, from Mexico to the United States.
Typically, a permit process can take multiple years before approval; Pharr’s application was fast-tracked due to the dedicated efforts of city leaders and staff, consulting engineers Structural Engineering Associates, Inc., and others, who prioritized this project and worked diligently with U.S. and Mexican officials, despite the challenges of being in the midst of a global pandemic.
The City of Pharr worked with Senators Ted Cruz and John Cornyn and their staff on this project, which began in September 2019 with a meeting between Pharr’s team and the White House arranged by Senator Cruz. Senator Cornyn led efforts and coordinated meetings between Pharr and the U. S. Department of State, which led to the formal notification to the U.S. Department of State in April 2020 of Pharr’s intent to expand the international bridge. Between April and August of 2020, Pharr leaders and representatives consulted with major U. S. and Mexican stakeholders, culminating in more than 60 letters of support from elected officials at the local, state, federal, and international levels.
The project also received support from all major transportation and trade associations, border infrastructure groups, and private industry partners that utilize the bridge on a daily basis. The Pharr City Commission authorized the submission of the presidential permit amendment application to the U. S. Department of State, which was submitted on September 30, 2020, and just three months later, the permit was issued.
“It is unprecedented that a sitting President of the United States grants a Presidential Permit Amendment with record time, and we thank him for doing so,” said Mayor Hernandez. “This new year began on a positive note with the issuing of this permit for the expansion of the Pharr International Bridge,” Hernandez continued. “The City of Pharr is appreciative of the diligent efforts made possible by the government relations and bridge teams at the city level, in coordination with Senators Ted Cruz and John Cornyn, which opened the doors of communication with our presidential administration and federal agencies to accomplish this goal with unprecedented speed due to the forthright and transparent communication regarding the need and urgency of this project,” he continued.
“This permit amends the current permit to allow for the expansion of the Pharr International Bridge, and will further support the record numbers of international trade and commerce that transpires on our port of entry,” Hernandez added. “It is a wonderful new year, indeed!” he continued.
“Pharr’s ports of entry serve as a gateway for billions of dollars in cross-border trade that benefits our state’s economy,” said Senator Cornyn. “Expanding the Pharr International Bridge will enhance trade and travel and benefit all who use the facility,” he added.
Senator Cruz remarked, “Texas is home to some of the nation’s busiest border crossings and the Pharr International Bridge serves as an important port of entry to facilitate the United States’ trade and commerce with Mexico. I am grateful the Trump Administration recognized the importance of expanding the Pharr International Bridge to further enhance the U.S.-Mexico trade partnership and increase commerce between the two nations,” Senator Cruz said. “I’d like to commend the leadership of Mayor Dr. Ambrosio Hernandez, City of Pharr City Council, the staff at the City of Pharr, and community leaders for their diligent work on this project and working with our office to help ensure this project was permitted in record time. I was proud to support the Pharr International Bridge expansion project as millions of jobs, in Texas and across the country, depend upon trade with Mexico. I will continue working to ensure future trade opportunities benefit Texas and put American jobs first.”
