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Retail Potato Sales Remain Strong

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By Potatoes USA

Since public health restrictions for COVID-19 were put in place, potato sales at retail have been well above historical levels. This has continued throughout the summer, even as some of these restrictions have been relaxed. For the period from March 16 – September 6, 2020, sales of potatoes have been up every week, and the total value and volume are up 22 percent over the same period in 2019.

All categories, except prepared sides at the deli (many of which have been closed or refigured), have shown increases but the largest gains were for canned, dehydrated, and frozen potatoes. Fresh potatoes have also fared very well, with a 24 percent increase in volume and a 33 percent increase in value. Potato chips, the largest category at retail, has also performed well; up 8 percent in volume and 15 percent in value.

The greater increases in the dollar sales over volume reflects significant increases in the price per pound through the summer. The largest increases in price per pound were refrigerated and fresh potatoes, up 7.6 percent and 7 percent compared to the same timeframe in 2019.

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Fewer California Grapes Remain to be Shipped than Previous Two Seasons

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Fewer table grapes remain in storage in California than at the same time during the previous two seasons, according to a USDA report.

There were 9.3 million boxes in storage as of Sepember 30, according to the Western Fruit Report Grape Cold Storage Summary. This compares with 10.4 million boxes on the same date last year, and 12.9 million boxes in 2018.

The Scarlet Royal variety had the highest number of grapes in storage with 2.2 million boxes – 50 percent of the 2018 figure and 1 million below 2019. The next biggest variety was Autumn King. But unlike Scarlet Royal, the storage numbers of this variety on September 30 have been showing an upward trend over the last three years, with 1.7 million boxes this year compared with 1 million in 2018.

The next two largest varietal categories – ‘other white’ and ‘other red’ – have both seen downward trends over the last three years, now registering 1.5 and 1.4 million boxes respectively. Alison and Red Globe have also been declining, while Sweet Globe has been rising.

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Washington State Apple Shipments Expected 10% Lower than Earlier Estimate

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By Washington Apple Commission

WENATCHEE, WASHINGTON – Washington state, the nation’s leading producer of apples, is expecting a smaller crop yield this year. Washington produces 65 percent of the fresh apples grown in the U.S., and as growers are reaching the midway point of harvest, they are observing an approximately 10 percent lighter crop load on the trees than the original estimate released in August.

The first forecast released by the Washington State Tree Fruit Association on August 1st, predicted a 134 million box (40 lb.) crop based on grower estimates. Apple harvest begins in August and ends in early November. Currently, growers and orchard crews are about 70 percent through picking.

At the October 8th Washington Apple Commission Board of Directors virtual meeting, industry members discussed the progress of the crop and contributing factors to the lower volume; alternate bearing season lightening the number of apples per tree, a recent windstorm, and more selective sort-picking happening in the orchard as growers work to improve pack outs in the warehouse.

“It is the growing consensus that the 2020 apple crop will be lower than earlier published estimates.  This can be attributed to both a reduction in the quantity of bulk bins harvested, as well as lower conversion yields to packed boxes,” says James Foreman, Chairman for the Washington Apple Commission Board of Directors.

Sizing appears to be smaller this year compared to last season as well, but it is region dependent. Washington’s growing regions spread along the state’s major river from the bottom of the state to the north Canadian border.

The apple category is experiencing an uptick in demand due to COVID-19 bringing health and nutrition to the forefront in the minds of consumers, and as result, an increase in fruit and vegetable consumption.

The 1,260 apple growers in the state produce eight core varieties: Gala, Red Delicious, Fuji, Honeycrisp, Granny Smith, Cripps Pink, Golden Delicious and Cosmic Crisp®. Over 50 other ‘club’ or proprietary varieties are also grown in Washington. In addition to being the top producer of apples in the country, Washington represents 85% of all U.S. organic apple production. Apples are the number one produced commodity in Washington and have a $3 billion state economic impact.

The Washington Apple Commission is a non-profit, promotional organization dedicated to marketing and advertising fresh Washington apples internationally.  For more information on the Washington Apple Commission, visit www.bestapples.com.

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Easy Peelers Account for Biggest Jump from Southern Hemisphere

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A large cargo container ship out to sea.

Southern hemisphere citrus exports have risen by more than 25 percent over the past 10 years, with the European market and the easy peeler category driving much of the growth, according to data from the World Citrus Organization (WCO).

Shipments from the region including South Africa, Peru, Chile, and Argentina – rose 27 percent from 2.6 million metric tons (MT) in 2010 to 3.3 million MT in 2019, with the majority of the growth coming after 2014. The region with the highest share of southern hemisphere citrus imports is the European Union with 34 percent. Next is Asia with 24 percent, North America with 18 percent, the Middle East with 13 percent and Eastern Europe with 7 percent.

The easy peeler category has been responsible for most of the growth. In 2008 there was a volume of 342,000MT of mandarins and tangelos traded worldwide from the southern hemisphere. In 2014 this figure increased slightly to 465,000MT.

However, to 2019 there was an increase to more than 739,000MT, representing 16 percent of southern hemisphere citrus exports. On average in this category there has been a 10 percent growth per year for the last five years.

North America imports the largest volumes of easy peelers from the southern hemisphere, with a total of 39 percent in 2019. Of this total, Chile is the leading exporter to this market with almost 150,000MT. In second place comes Peru with approximately 70,000MT, followed by South Africa, Uruguay and Argentina.

In second place as an importer is the European Union with 27 percent, which is over 200,000MT. In this case, South Africa is in the leading exporter, with a total of almost 150,000MT of the total exported. Peru is followed with a total of approximately 50,000MT.

In third position as an importer is Asia with 18 percent, representing almost 150,000MT, with Australia as the leading exporting country with almost 70,000MT. South Africa follows with 50,000MT, and in last place with 10,000MT each are Peru and Argentina.

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Mississippi Sweet Potato Shipments – Season Underway

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Average yields and volume for 2020 is seen by the Mississippi State University Extension Service in Calhoun County.

About a third of the state’s crop is planted there. For the last five years, the state’s total sweet potato acreage has ranged from 27,000 and 30,000 acres.

About 9,000 to 10,000 acres of that total are located in Calhoun County.

This year’s Mississippi sweet potato harvest go underway in September an initial reports from the field indicate an average yield for 2020.

Roughly one-fifth of this year’s planting had been harvested as of September 21, according to a report from the USDA. At that time 64 percent was graded in fair condition, with 26 percent rated good.

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Produce Imports at Texas Port of Entry Project to Take Les Time

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A busy Texas port of entry has begun on a $40 million consruction project to cut wait times for produce and other agricultural goods.

Thirteen of 24 new secondary inspection bays at the Pharr-Reynosa International Bridge will include cold storage unit equipment to ensure inspections don’t harm produce shipments.

“With the continued increase of imports from Mexico, especially produce-related commodities, that require an inspection from our agriculture specialists, having these additional dock spaces will have a significant positive impact on our ability to expedite the processing time and get shipments on their way into U.S. commerce,” Carlos Rodriguez, Port of Hidalgo/Pharr/Anzalduas director, said in a news release.

The U.S. Customs and Border Protection, General Services Administration and City of Pharr, Texas, formed a partnership that allows the city to donate to the project.

“The additional cold storage bays will also serve proactively in maintaining the integrity of certain products while they are inspected in climate-controlled areas, rather than exposing them to the South Texas heat,” Rodriguez said.

A 10,000-square-foot inspection and training facility will enhance the Custom and Border Protection’s agricultural specialist ability to detect pests, diseases and related testing on agricultural products.

The port processed nearly 1,800 commercial trucks transporting an average of more than $13 million worth of agricultural products each day in fiscal year 2019, which is nearly 15 percent of all fresh produce imported into the U.S.

“The City of Pharr remains committed to working with our federal partners to identify and implement innovative methods to expedite traffic and trade at our international port of entry, making border crossings and inspections function more effectively while helping our trade partners process and cross their goods more efficiently,” Pharr Mayor Ambrosio Hernandez said.

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Chilean Blueberry Exports will have 50% of Volume Coming to U.S.

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With the Chilean blueberry season just starting, the industry is expecting to continue diversifying its markets and offer a higher proportion of newer and improved varieties.

The U.S. continues to be the main destination market, with 50 percent of exports.

The Chilean Blueberry Committee is reporting stable export volumes for the 2020-21 season. Chile in recent years has been diversifying its export markets with the biggest growths occurring in Asia and Europe.

During the past season shipments to Asia increased by 20 percent and to Europe by 8 percent. On the other hand, shipments to the U.S. – Chile’s leading blueberry market – decreased in the last two seasons, 1 percent last season and 9 percent the one before that.

For this 2020-21 season, the Blueberry Committee projects exports of approximately 154,000 metric tons (MT) of fresh and frozen blueberries. The estimate for fresh blueberries is a little over 111,000 MT – very similar to the volumes of the last two seasons, representing a 2 percent increase over last season.

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Big Increase in Walnut Shipments are Forecast

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California walnut shipments for 2020 is estimated at 780,000 short tons, an increase of 19 percent over the prior year. The primary reasons for the increases is due to increases in new acreage, more densely planted orchards, and heavier yielding varieties.

“This year’s expected record crop comes on the heels of strong retail sales, with shoppers’ growing interest in consuming foods with both great taste and functional benefits. In fact, the industry has stepped up to meet consumer demand with exciting new product launches in recent years.  And this season, the California Walnut Board’s unprecedented investment in domestic retail promotion will set the stage for continued success,” said Jack Mariani, CWB market development committee chairperson.

Walnut production has doubled in the last 15 years, with new acreage reaching 380,000 with an additional 75,000 acres set to come into production over the next five years. 

 

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Keeping It Fresh: Heroes Among Us

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By Kelly Miller, Assistant Manager, ALC Los Angeles

There is so much uncertainty surrounding this pandemic, we are bound to see impacts on our food system and the supply and demand of fresh produce. Growers, packers, processors, transportation and shipping are some of the industries that have been affected. Halts and delays due to insufficient labor in the fields will cause dwell times to increase for drivers and ultimately delay transportation to stores as well as price hikes and availability of products. Tom Stenzel, CEO of The United Fresh Produce Association, estimates that the produce industry will take a $5 billion dollar hit from the Covid-19 outbreak. Stenzel stated that “restaurants and other foodservice outlets account for as much as 40% of fresh fruit and vegetable sales” and it’s unfathomable to be shifting that amount to retail outlets.
So far, we have not seen a shortage of produce in our stores which is great for consumers. Many people are looking to increase their consumption of fresh fruits and vegetables hoping to boost their immune systems in order to stay healthy and combat this virus. Behind the scenes, industry members are dealing with logistical complications like making sure the labor force in the fields, packing houses and stores are safe and employees are able to work.
In the transportation industry, there is a growing concern for driver shortages due to health issues as well as limited resources out on the road. Many rest stops have been closed which means limited bathroom or shower availability. These are just a few challenges that drivers are facing and some have even decided to retire early due to the pandemic. I don’t know about you, but I would not want to work without these necessities.
I would personally like to take the time to thank all the essential workers. Drivers, growers, manufacturers, grocery store employees and the healthcare workers for they are the heroes in this pandemic!

***

Kelly Miller began working for the Allen Lund Company in October of 2001. She started her career as a transportation broker, was promoted to operations manager and now is the assistant manager of the Los Angeles Sales office.

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New Walmart Pilot Program has Grocery Delivery by Drones

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Walmart has launched a pilot program using automated drones to deliver grocery and household items to consumers.

“Our latest initiative has us exploring how drones can deliver items in a way that’s convenient, safe, and – you guessed it – fast,” said Tom Ward, senior vice president of customer product for Walmart. “…we’re taking the next step in our exploration of on-demand delivery by announcing a new pilot with Flytrex, an end-to-end drone delivery company.”

The pilot launched recently in Fayetteville, NC, and focuses on delivering select grocery and household essential items from Walmart stores using Flytrex’s automated drones. The drones, which are controlled over the cloud using a smart and easy control dashboard, will help the company gain valuable insight into the customer and associate experience, from picking and packing to takeoff and delivery.

“We know that it will be some time before we see millions of packages delivered via drone,” said Ward. “That still feels like a bit of science fiction, but we’re at a point where we’re learning more and more about the technology that is available and how we can use it to make our customers’ lives easier. Take for example our autonomous vehicle work with Gatik, Ford and Nuro – we’ve gained loads of valuable insight into how autonomous vehicles fit within our business.”

The company said at the end of the day, it’s learnings from pilots such as this that will help shape the potential of drone delivery on a larger scale.

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