An estimated that around 20,000 acres of banana plantations have been lost in Honduras due to flooding from Hurricane Eta. The estimate would represent about half of the total acres in the Central American country, which bore much of the brunt of the recent storm.
The storm came amid one of the most severe Atlantic hurricane seasons on record and caused widespread damage to the region. One banana grower estimated it was the largest damage in history for bananas. It is estimated at least 16,000 direct jobs are at risk in the Honduran banana industry and the volume of fruit exported will decrease. The most affected areas in the country is Olanchito, which sits along the Aguán River.
One of the banks of the river overflowed and resulted in a total loss for the Standard Fruit Company of 4950 acres of bananas. The Agriculture Ministry said that there was also severe damage to the production of corn, sugar, and rice. With dropping flood waters hundreds of thousands of households, businesses and farmers across the country are beginning to count the damage.
Between September 2019 through August U.S. imports of fresh vegetables were up 11 percent, according to the USDA.
While fresh vegetable imports were up by double-digit percentages, the USDA reported fresh and frozen fruit imports gained just 2 percent compared with the previous year.
Among vegetables with big import gains, the USDA noted fresh garlic imports for the year ending in August were up 58 percent — the result of a COVID-19 immunity buying frenzy. Other double digit gains were noted for tomatoes, squash, cucumbers, potatoes and beans.
Fast-rising imports of fruit commodities were noted for mangoes (up 15 percent) and kiwifruit (up 19 percent), By fresh commodities (except as noted), U.S. imports from September 2019 through August, with percent change compared with the previous year, are:
Florida fall produce shipments are building in volume and it is shaping up to be a relatively normal shipping season.
Sweet corn, leafy greens, peppers and other fall-winter crops are just getting underway and light volumes of strawberries started in early November.
Florida ships a wide variety of products in a relatively tight geographic area and is in full swing in fall and winter when most of the rest of the U.S. is dormant although the Sunshine State’s biggest volume is typically in April and May.
Lipman Family Farms of Immokalee, FL., grows vegetables and tomatoes in Florida’s open fields but also in greenhouses in Nebraska, Canada and Mexico.
Strawberries
In November 2019, Florida’s strawberries were just getting started, shipping 2.2 million pounds compared with California’s 69.5 million pounds.
But Florida stepped in December with 31.6 million pounds as California started its dip with 20.5 million.
Mexico, however, shipped 19.3 million pounds into the U.S. in November and 44.7 million pounds in December.
Wish Farms of Plant City, FL., will begin strawberry shipments in late November and ramp up volume in December in time for the holidays.
Florida has little, if any, domestic competition for its sweet corn crop in the fall and winter.
The USDA notes 24.5 million pounds of corn were shipped from Florida in November 2019, compared to 3.7 million pounds from Southern California and 8.4 million pounds from Georgia — the only other two states that ship corn in November.
In 2019, Florida was the only state shipping corn in December and earlier in the year, January through March.
As far as imports, Mexico shipped 7.4 million pounds of corn in November 2019, then surpassing Florida in December, with 19.3 million pounds compared to Florida’s 17.8 million.
Scotlynn Sweet Pac Growers has sweet corn in Belle Glade, FL, Bainbridge, GA., and Vittoria. but its Georgia crop was dealt a blow by the weather.
Florida is also a big cucumber state. For the fall-winter seasons, they start trickling into the market in August, get going in September and peak in November.
In November 2019, the state shipped 21.3 million pounds of cucumbers, which is 2.5 times more than the only other state growing enough commercially to be listed — Georgia at 7.4 million pounds.
In December, Florida was the only state in the U.S. shipping cucumbers.
However, Mexico shipped 95 million pounds of cucumbers into the U.S. in November 2019, more than four times as many as Florida did.
Seald Sweet International/Greenyard USA markets fruit for Hunt Bros. Citrus, handling Florida grapefruit, oranges and tangerines with a packing house in Lake Wales.
A slight dip in volume is expected compared to last year in oranges and grapefruit.
The USDA forecast the 2020-21 Florida orange crop — 96 percent which is processed for juice — to be down 15 percent from last season.
And Florida’s grapefruit production, 40 percent of which is sold fresh, is estimated to drop by 7.3 percent compared with last season.
Arctic® apple shipments will have the largest volume shipments to date, according to Okanagan Specialty Fruits (OSF), developer and grower behind the fruit.
The apples were harvested in Washington state, where 1,350 acres of Arctic apple orchards are planted. The Arctic® Golden harvest yielded approximately 8,400 bins or almost 8 million pounds. The Arctic® Granny harvest recently concluded and yielded approximately 5,500 bins or 5 million pounds. This is twice the size of the 2019 harvest and is attributed to an increase in harvestable acreage from last year and the trees, which as they mature, produce more fruit.
Arctic apples use the apple’s own genes to “turn off” the enzyme responsible for making apples turn brown when cut or bruised. The result is an amazing quality, longer shelf life apple that tastes and looks better, which means less food waste from harvest to consumption. Arctic apples retain their fresh appearance and delicious flavor throughout the shelf life, which surpasses all other freshcut apples in the market.
Arctic apples are developed and grown specifically for fresh cut applications. Arctic apples are unmatched in flavor, convenience, and sustainability. For more information, please visit arcticapples.com.
There are more U.S. table grapes remaining in storage to be shipped than last year, following an increase in volumes of Autumn King and Allison over the last few weeks.
There were 13.7 million boxes in storage as of October 31, according to the USDA’s latest Western Fruit Report Grape Cold Storage Summary. That figure represents a sharp increase from the 11.1 million boxes registered in mid October and a slight rise above the 13.2 million from this time last year.
The increase in the second half of October this year was in part due to the Autumn King variety, whose volumes rose from 2.3 million boxes to 4.7 million.
At the end of October 2019 there were 3.6 million boxes of Autumn King. In addition, volumes of the Allison variety have increased substantially, growing over the second half of October from 582,000 boxes to 2.2 million.
The new figure remains below the 2.5 million recorded at this time last year. As of the end of October in the bumper 2018 season, there were a total of 18.1 million boxes in storage.
What a strange year it’s been so far in 2020, with so many changes and challenges in the perishables space! One item, that could greatly affect the business models and proprietary information of grower/shippers, has gone under the radar.
In a nutshell, a minority of motor carriers and carrier trade associations (such as OOIDA) are pushing the Federal Motor Carrier Safety Administration (FMCSA) to update the terms and enforcement of an existing section of federal code relating to freight costs paid between grower/shippers, brokers, and carriers. 49 CFR 371.3(c) was initially written back in the days of deregulation in 1980, and requires brokers to allow carriers to view the rates paid by the transportation buyer to the broker.
In practical terms, however, carriers have rarely asked to view that information. The majority of renewed interest in the regulation came about in Q2 of this year. Coinciding with historically low shipping volumes nationwide, normal supply and demand market forces caused a sharp fall in freight rates to carriers. Basically, a lack of supply (not as many available loads) caused a decrease in demand (lower freight rates). Carriers in turn, wrongly accused brokers of price gouging and other unscrupulous business tactics.
How does this all apply to grower/shippers? Just like forklifts, pallets, and packing material – the linehaul freight cost of getting your goods to your customer is something you purchase out of your operational budget. When the code was written back in the 80’s, it was more normal for carriers to pay a ‘commission’ to the broker. But now, the way most freight transactions occur has changed.
Per an article about this topic on Overdrive Online, Jason Craig, of C.H. Robinson stated on a recent listening session with the FMCSA, many brokers treat the contracts with shippers and carriers, as “separate transactions” and that “the price paid by the shipper does not affect the price paid to the carrier any longer.”
If changes are made to the code, the proprietary pricing you pay to a broker could be mandated to be given to a motor carrier. For every load. In essence, your buying power and negotiated pricing would be laid bare for all to see.
An important point as well, you could be barred from inserting language into any shipper-broker contract to keep your pricing from being disclosed. A dire scenario would be one that causes you to change your business practices.
You could even decide to end yearly, or quarterly, RFPs to brokers! All because a few carriers didn’t like the rates they were being offered by some brokers for a few weeks in early 2020. (And to get you up to speed on rates in Q3 and Q4, per DAT, there are many lanes that are seeing record high truck rates being paid to carriers.)
What can you do? You can read up on these broker carrier issues here. And more importantly, FMCSA is still accepting comments from anyone interested in voicing their opinion. The comment period is open until November 18, 2020.
You can use this link to submit your thoughts, comments, and concerns. You can also reach out to your freight broker, to discuss how any changes would affect your specific business.
Steve Hull is manager of the Portland office and has been with the Allen Lund Company for 24 years. Hull is a graduate of the University of Southern California completing a dual major in political science and U.S. history.
Mushroom grower South Mill Champs of Kennett Square, PA has purchased a new distribution center in Lakeland, Fla.
The 30,000-square-foot-plus food-grade facility will get the upgrades necessary for mushroom processing and then start commissioning it in November, according to a news release.
South Mill Champs operates a network of distribution centers, including Atlanta, New Orleans, Dallas, Houston and Los Angeles.
The centers provide onsite, fresh-sliced, high-quality mushrooms directly from the company’s Pennsylvania and British Columbia farms. Also, the distribution centers provide seasonal produce items to the local foodservice and retail markets.
“Our expansion into Florida is in line with our mission as we meet the increasing demand from our customers, many of which have a significant presence in this key market,” CEO Lewis Macleod.
National mushroom retail sales are more than 20 percent ahead of last year in dollars and 17 percent ahead in pounds, according to an analysis of retail data through September 6, published by the Mushroom Council.
The retail insights also show that mushrooms have placed in the top 10 of fruits and vegetables with the highest year-over-year absolute dollar gains for 26 straight weeks.
“We expect that market demand for mushrooms will continue to increase,” Macleod said, “as mainstream consumers become increasingly educated on the health and environmental benefits of mushrooms.”
U.S. orange shipments are forecast to be down 11 percent for the 2020-21 shipping season, although the biggest plunge is from Florida, which has oranges mostly for processing.
The U.S. orange forecast for the 2020-2021 season is 4.65 million tons, down 11% from the 2019-20 season, the USDA reports.
The Florida orange forecast, at 57 million 90-pound boxes (2.57 million tons), is off 15 percent from last season.
On average, about 96 percent of Florida oranges are processed into orange juice, according to Florida Department of Citrus statistics.
Florida’s early, mid-season, and navel varieties are forecast at 23 million boxes (1.04 million tons), down 22 percent from last season’s final shipments. The Florida valencia orange forecast, at 34 million boxes (1.53 million tons), is down 10 percent from a year ago.
Florida’s 2020-21 grapefruit volume also is down at 4.5 million (85-pound) boxes. The 2020-21 estimate is down 7.3 percent compared with last season. About 40 percent of Florida’s grapefruit crop is shipped to the fresh market.
Florida’s production of tangerines and mandarins rose 7.8 percent, from 1.02 million 95-pound boxes in 2019-20 to a forecast 1.1 million boxes in 2020-21. Just more than half of Florida’s tangerines and mandarins are shipped fresh.
California
In California, where three out of four oranges are sold fresh, orange shipments are predicted to hit 50.5 million 80-pound boxes (2.02 million tons), down 5 percent from last season’s final utilization. The California navel orange forecast is 42 million boxes (1.68 million tons), down 5 percent from last season’s final utilization. The California valencia orange forecast is 8.5 million boxes (340,000 tons), down 6 percent from last season.
Mandarin/tangerine loadings are forecast to be at 23 million 80-pound boxes (920,000 tons), up 4.5 percent from last season’s output of 22 million boxes. About 75 percent of California’s mandarins/tangerines are sold fresh.
Grapefruit production in California is projected unchanged from a year ago, at 3.8 million 80-pound boxes. About 40 percent of California grapefruit is sold fresh. Lemon loadings in California in the 2020-21 season is forecast at 22 million 80-pound boxes (880,000 tons), down 14 percent from last season. The Arizona lemon forecast is 1.3 million (80-pound) boxes (52,000 tons), down 28 percent from last season. About 70% of U.S. lemons are sold fresh.
Texas
The Texas all orange forecast, at 1.50 million 85-pound boxes (64,000 tons), is up 12 percent from last season. Forty percent of Texas oranges are sold fresh.
Texas grapefruit output is pegged at 4.9 million 80-pound boxes, up 11 percent compared with 4.4 million boxes in 2019-20. About 40 percent of Texas grapefruit is sold fresh.
A joint project has been announced by Guimarra Companies with Reliable Robotics Corporation of Mountain View, CA to test shipments of produce utilizing autonomous aircraft technology, developed by the latter company.
Created to help address supply chain and delivery challenges within the fresh produce industry, the test flight program had its successful inaugural flight on August 7.
Giumarria Companies, based in Los Angeles said simply calling the project groundbreaking would be an understatement. The company believes autonomous aircraft will transform the future of the fresh produce industry. It further noted the technology will evolve the way products are delivered to market by allowing the delivery of fresher, riper fruit anywhere in the country, including remote food deserts, at speeds never before seen.
An automated Cessna 172 Skyhawk, with an engineer and pilot on board for safety assurance, completed a 200-mile journey from Reedley Municipal Airport to Whiteman Airport in Los Angeles. Giumarra previously announced an air freight shipment, completed in partnership with Reliable Robotics on August 7, to deliver peaches grown in the San Joaquin Valley to Southern California grocery retail via a pilot-operated Cessna 208.
In 2019, Reliable Robotics achieved a fully autonomous flight on the Cessna 172 Skyhawk without an onboard pilot. The company has also demonstrated automated landing of the larger Cessna 208 Caravan and is in the process of certifying its automation platform for use on the Caravan, a popular cargo plane ideal for air shipments of produce.
The program provides proof automation can improve speed and quality for the entire fresh produce supply chain: Utilizing autonomous aircraft, growers and suppliers can quickly and more efficiently deliver farm fresh produce to stores in less time, resulting in less shrink.
Retailers, particularly those in smaller or more remote markets, can offer consumers fresh produce available at stores within 24-48 hours of being picked. Growers can produce varieties optimized for flavor and texture versus long-haul transportation methods.
“Giumarra is a forward-thinking company and we’re proud to partner with them to show how automated cargo flights can greatly improve fresh food distribution,” said Robert Rose, Co-founder and CEO of Reliable Robotics. “We believe autonomous aviation is going to change the way we experience food, for the better.” Reliable Robotics is currently working with the Federal Aviation Administration and in 2017 was founded by SpaceX and Tesla veterans, who have raised $33.5 million in two funding rounds.
Exports for Peruvian citrus have soared by 40 percent this season through early season over a year ago to 198,996 metric tons (MT). The increase is primarily due to mandarins
It highlights the growth of the mandarin led by the W. Murcott variety, in citrus exports from the Andean country.
The main citrus varieties exported by Peru from the beginning of 2020 to mid-August are: W. Murcott with 61,920MT (+ 57 percent), Satsuma 35,672MT (+ 32 percent), Tango 29,042MT (+ 76 percent), Minneola and / or Orlando 15,890 tons (-2 percent), Valencia 10,656 tons (+ 65 percent).
North American was the country’s leading market, to which 54 percent of exports were shipped. This year the market has received 61 percent more Peruvian citrus than last year.
It is followed by Europe with shipments of 70,251 tons (+ 24 percent) and concentrating 35 percent of the total; Asia with shipments of 13,334 tons (+ 12 percent) and acquiring 7 percent of the total; Latin America with 7,654 tons (+ 19 percent) and a 4 percent share; and Africa with 710 tons (+ 10 percent) and representing 1 percent of the total.
The main citrus exporter in Peru is the Consorcio de Productores de Frutas (CPF), which shipped 49,016 tons (+ 36 percent) from the beginning of the year until the mid August.
