By Ted Kreis – Northern Plains Potato Growers Association, Communications
For the first time all year, fresh potato shipments from the Red River Valley are meeting or exceeding last year’s numbers. Shipments had been running at about two-thirds of last year’s pace until the pandemic broke and consumers abandoned restaurants for eating at home.
Because of large crop losses last fall, prices for red and yellow potatoes from the valley have been higher all year which has slowed shipments to extend the shipping season accordingly. But in mid-March fresh shipments from the Red River Valley exceeded last year for the first time all season. This past week shipments were up nearly 20 percent compared to last year, all this as supplies dwindle in the Red River Valley.
Meanwhile, there has been an opposite effect on the frozen potato market which is highly dependent on foodservice business, which includes restaurants. With restaurant business mostly disappearing with the exception of drive-thru business, stockpiles of frozen fries is backing up causing huge cuts in 2020 contracted acres and much uncertainty going forward. This could also have a trickledown effect on the fresh market this fall if russet supplies in the Northwest are diverted to fresh.
In the U.S., processors are cutting, eliminating or delaying contracts but its not just happening here, this is a worldwide problem. In Western Europe, several potato processing units are shutting down totally or partially. Throughout the European northwest, the industry is calling for a reduction in planting areas as it now expects a huge surplus of fries in storage. One estimate is that the Dutch potato sector has 1 million metric tons of surplus processing potatoes at the current time. In France, an estimated 500,000 tons of potatoes cannot be processed.
We have never seen anything happen to the entire world like what is happening now so there is no playbook or roadmap to economic recovery. However one thing is certain, the world will always have to be fed, and potatoes will help lead the way. We just don’t know how that will look.
(This article appeared in Potato Bytes, an online publication by the NPPGA)
A global avocadonetwork with a partnership to market South African fruit to Europe, China and other Asian markets, including China and eventually the U.S., is underway by Mission Produce Inc. of Oxnard, CA.
Mission Produce is partnering with South African exporter Core Fruit and ZZ2, which will “offer its production, packing and ecosystem creation know-how together with its avocado technical knowledge, resource base, local networks, nursery trees, packing facilities and it’s association with Criterion Africa Partners who have access to significant land holdings,” according to a news release from Mission Produce.
The partnership, known as Mission South Africa, plans to establish regional relationships with growers.
“The Mission Produce-ZZ2 relationship is a strong combination and demonstrates our commitment to expanding globally and leading the avocado industry,” Mission Produce President and CEO Steve Barnard said in the release.
“Southern Africa is an ideal source because of the region’s location, fruit quality and access to Europe and Asia,” Barnard said in the release.
The partnership is expected to add value to growers and assist in developing the avocado production potential of the region, according to the release, with a rapid expansion of Mission’s “vertical integration model in an advantageous supply window,” accord to the release.
Banana imports from South America are expected to remain steady as South America has had good weather, helping to offset cooler temperatures that have slowed Mexican banana shipments.
Oke USA Fruit Co. of West Bridgewater, MA reports good supplies with steady volume.
Earl’s Organic Produce of San Francisco notes cool temperature has affected production along the central west coast of Mexico, slowing growth and lowering yields. However, warmer weather is not improving the situation.
Organics Unlimited Inc. of San Diego points out Mexican banana production typically slows during the winter. Yet the cooler than normal temperatures in Colima resulted in harvest delays. Guatemala, Honduras and Costa Rica have experienced similar problems.
Dole Food Co. of Westlake Village, CA sees good volume for all of 2020, point out it has an exceptional worldwide shipping and logistics system allowing it to provide bananas the year around. While one region may have adverse weather, another is usually in good shape since it harvest bananas throughout Latin America, including Costa Rica, Colombia, Guatemala, Honduras and Ecuador.
As examples, Dole point to its organic banana production in Ecuador and Peru where volume has been steady.
Ports of the Delaware river (Wilmington, Philadelphia and Chester) are called instead of New York where the banana trade used to take place. In the 1980s, Chiquita and Dole relocated their facilities to Wilmington, which created a significant cluster of refrigerated import activities with specialized terminals, on-dock and inland refrigerated warehouses, and labor trained to handle these types of goods.
A similar pattern applies on the West Coast where Hueneme and San Diego are used instead of Los Angeles and on the Gulf Coast with Gulfport, the dominant facility of the range that replaced New Orleans when United Fruits relocated its facilities.
This appeared in April 2020 10-4 Magazine. Who would think we would end up like this… There is connection between us being lazy and blind and the current state of affair…. —– We have been told that manufacturing is out of style. We have been told we can import produce from abroad. We have been told our trucks are bad for the air we breathe. We have been told diesel fumes will bring the end of the human race. We have been told that professional drivers, with their blood-shot eyes, are misfits and undesirables. We have been told automated trucks are the only way to go. We have been told all these lies. The truth is this – if it weren’t for this tired and humiliated truck driver (and so many others) that people flip the bird at for staying in the left lane just a little longer so he doesn’t cut off someone’s mother or wife messaging about empty shelves, we would be living in apocalyptic hell already now. But we are not – yet – because his old school (banned) diesel engine relentlessly pulls that cool box back and forth across the country, bringing the Midwest fresh produce from California and then meat back in a 28-hour straight shot. And, that dedicated driver is not even asking for a raise on the rate (even though all truckers deserve it) – he is just asking you to stay positive and strong and watch out for your elderly neighbors. We will be okay if we stick together and do the right thing. We will git ‘er dun because THAT is the Spirit of the American Trucker! God Bless.”
California avocado shipments should experience a huge rebound this year with 369 million pounds forecast. This is about a 70 percent increase over 2019.
Still, California is a small player compared to the volume out of Mexico. While some California avocados are shipped to the East Coast, the vast amount goes to markets in the Western states. Last year, with a small crop, most destinations were to markets in California.
The California Avocado Commission of Irvine reports early-season volume has slightly exceeded projections. Peak loadings should occur from April through July and continue through Labor Day.
Some growers started harvesting in mid January due to strong markets and their big crops, with others starting in February.
Index Fresh Inc. of Riverside, CA plans to have good volume into September.
Calavo Growers Inc. of Santa Paula, CA also had an early start. Two years ago the company was hit harder than most by fires in groves as well as a heat wave.
Another reason California growers have started shipping sooner was due less volume this year from Mexico.
Mission Produce Inc. of Oxnard, CA started a month earlier this season than originally planned.
Eco Farms of Temecula, CA got off to a slow start in January, but loadings picked up in February.
Henry Avocado Corp. of Escondido, CA was shipping light volume in February, but shipments picked up in March, and the company will be full capacity from April to July, before starting to taper off in August.
The company has some spring and summer fruit going to customers in the East, but most of its fruit stays on the West Coast.
The Giumarra Cos. of Los Angeles has two California packinghouses, one in Escondido and one in Ventura and is shipping from both facilities.
Southern California avocados and citrus – grossing about $6400 to New York City.
This pandemic is a learning experience for all of us on how to stay healthy and avoid illness.
Making informed decisions around COVID-19 is critically important. Taking the responsible route of practicing good hygiene and limiting social contact are sound practices we all must take seriously.
What will help our body’s vital line of defense to an invading virus? A good diet, with lots of dark green, leafy vegetables and berries. When going to the grocery store or shopping online don’t forget to prioritize healthy foods that maintain a strong immune system and gut health. But don’t just take our word for it. Listen to the advice from the experts, such as Elizabeth Bradley, MD, a clinical nutritionist and the medical director of the Cleveland Clinic’s Center for Functional Medicine, who in a recent article, Facts (and Myths) About Boosting Your Immune System, highlights how diet plays a role in supporting the immune system.
Fresh fruits and veggies are going to support your immune system and gut health through this challenging time. So, for your next delivered grocery store order or on your next trip to your neighborhood market, remember to stock up on fresh produce to keep your immune system strong and healthy.
A 20 percent crash in Mexican grape shipments are predicted this season.
The 2020 estimate for Mexican grapes is 19.7 million 19-pound boxes, about 3.9 million boxes down (20 percent) from a year ago of 23.6 million boxes. That crop, however, was significantly higher than the 2018 production of 16.37 million boxes, so forecasters are saying there will still be good volume.
Mexican grape shipments to the U.S. will start in mid-May, lasting into early July. The season is expected to start earlier than in 2019, with the red Flame seedless being in good volume from late May to late June. Mid-season green grapes loadings will be in good volume from early June to early July, while black seedless best movement is expected from late May to late June.
Green perlette grape volume is hit hard by a freeze and 2020 volume is predicted at 800,000 boxes, less than half of the 1.7 million box output last season.
Early-season Mexican grape volume is expected to be about 2.8 million boxes, up slightly from 2.6 million boxes a year ago.
Red seedless loadings for 2020 is forecast at 8.65 million boxes, off 19 percent from last year’s total of 10.7 million boxes;
Mid-season green variety output is estimated at 4.15 million boxes, down 18 percent from 5.08 million boxes a year ago;
Red globe production is 300,000 boxes, down from 306,000 boxes last year;
Black seedless is forecast at 1.5 million boxes, down 22 percent from 1.92 million boxes in 2019; and
Other grape varieties are forecast at 1.5 million boxes, up slightly from 1.2 million boxes last year.
MIAMI, FLA. – Crystal Valley Foods (Crystal Valley) has announced that it has partnered with Superior Berries and will begin shipping Georgia-grown blueberries under both the Crystal Valley and Superior Berries labels beginning this season. The first shipments will begin in April and will be available through the end of May.
Superior Berries, whose parent company is Superior Pine Products, started producing berries in 2003. Today the company has over 200 acres in Fargo, Georgia with plans to expand an estimated 100 acres in the next year. They grow and hand pick primarily Southern Highbush blueberries including Meadowlark, Patricia, Kee Crisp, Indigo Crisp, Farthing and Legacy varieties.
Crystal Valley markets blueberries year-round.
About Crystal Valley Foods
Founded in 1994, Crystal Valley Foods is a leading grower and importer of top quality produce from Central and South America and the United States. With offices and facilities in Miami and Los Angeles, the company is one of the largest importers and distributors of asparagus in the USA. Its extensive product line also includes baby vegetables, peas, beans, berries, baby lettuces, peppers and other specialty crops.
As I write this, spot market
rates and demand are peaking, hitting numbers reminiscent of good times during
2018. Of course, it’s primarily due to
Coronavirus induced buying as consumers shift from restaurants and
entertainment to in home consumption of food & necessities. While current patterns look familiar, with
the Southeast region leading the way, I thought I’d look a little deeper.
The Southeast region has been
cited by DAT and others as the strongest current region. A glance at Hot Market Maps confirms this –
here’s what’s unusual: It’s not Atlanta
as the leading market, it’s Memphis.
Indeed, Memphis sits as the crossroads of several regions including the
South Central (Dallas, Houston), Southeast (Atlanta, Charlotte), and Midwest
(Chicago, Columbus). When distribution
centers in those markets run tight on supplies, they turn to Memphis. It’s also the hub of Fedex and a lot of
urgent freight gets routed through Memphis.
Memphis had load-to-truck
ratios hitting 8.2 on 3/10 and again on 3/16, these are almost unheard-of
ratios for van freight. Meanwhile Los
Angeles crested at 4.1 on 3/13 as Asian imports return to the West Coast. Atlanta did hit 5.3 on 3/13 but Dallas was
only at 3.3. For context, I consider 2.5
load posts per truck to be a “balanced” van market. Long study of ratios says that’s the normal
amount of ‘inflation’ in posting numbers.
Switching to regional freight
matrix, which has one day rates in addition to 7-day and 15-day look-ups, I
found that 7-day rates are generally higher than 15-day rates, but one day
rates (Monday, 3/16) were somewhat lower, except on freight from the Southeast
region to South Georgia-Florida, which rose from $2.65/mile on average to
$2.71/mile. This matrix compiles all
trips of at least 150 miles into its averages.
So, sooner or later most everyone
will be stocked up and wanting to cut contact with fellow humans i.e. social
distancing. Monday’s and Tuesday’s
numbers suggest there will be ongoing craziness this week but that the peak may
have already arrived, watch for ratios starting to go lower. [Update: 3/18 looks like van peaked, with
numbers falling off sharply the next week.]
The impact on freight rates will likely be mixed as FEMA and other
emergency supplies will continue to move.
Volumes are important but urgent freight also demands higher
prices. Then there is the risk factor
for older drivers, the majority of the workforce. If supply of truck decreases commensurate
with supply of loads, then rates could stay elevated.
As far as the Coronavirus
impact on the freight marketplace – I can’t remember another time in recent
history like this, as I wasn’t around in 1918.
I’ve just been in the industry since 1981. Back in 1973, specifically 12/19/1973, Johnny
Carson made a joke during his monologue about there being a nationwide toilet paper
shortage – this sparked a panic and we did have a shortage of the tissue for
about a week! That’s the power of the
media.
Call for Infrastructure
Bill
At some point, freight
volumes will drop sharply, a recession is coming unless we get a strong economic
stimulus bill [Ed. – We got a Stimulus bill but 2Q numbers will still be
horrendous]. This is where the trucking
industry, backbone of commerce needs to have a united voice. We need an infrastructure bill to replace
outdated highways and deteriorating bridges and other critical needs at ports.
Both parties have made
initiatives in the past year on the topic of infrastructure. The big hold-up appears to be how to fund the
bill and what ratio the Federal government is willing to pay. Back in the Eisenhower years, the interstate
highway system got built with 90-10 money, i.e. the Federal government funded
90% of the cost and the states just 10%.
President Trump proposed a mostly private sector $1.5 trillion dollar
plan in the spring of 2019, that had the Federal share at just 20%. The Democrats countered early this year with
an 80-20 plan, but stalled on how to finance the package.
Previously, discussions of a
Federal tax hike on the price of motor fuels has been a non-starter. We haven’t had a tax increase since 1993, but
it’s time to find a funding mechanism and get a spending bill in place for the
back half of 2020. We are going to need
it to pull out of the economic hit we are certain to take in the 2nd
quarter. If you take down time during
the current crisis, take time to write your Congress folks as I’m sure we all
understand the critical importance of strong infrastructure to keep commerce
flowing.
Please stay safe out
there. A big “Thank You” to truckers
continuing to haul goods, despite increased health risks. Elsewhere I’ve commented on the need for
market discipline and each trucker needs to carefully consider the offer versus
waiting for the right load. They will be
out there and DAT tools can help you find them.
Mark Montague, worked for DAT Solutions from 2009-2019, advising on the design of the RateView pricing tool. Prior to joining DAT, Mark worked in transportation and logistics, twice holding the position of General Manager of trucking operations. He earned an MBA in transportation management in 1981 from Indiana University.
California spring produce shipments should be good as growers and shippers expect plentiful supplies due to favorable growing conditions.
A wide range of vegetables are shipped by Boskovich Fresh Food Group of Oxnard, CA ranging from cabbages, Chinese mix and bunched items such as parsley, cilantro and spinach.
The company grows celery in Oxnard from November through June, when the season transitions to Santa Maria.
Boskovich is wrapping up shipments of head and leaf lettuce in Yuma, AZ., and will move to Santa Maria in early April.
Other items such as radishes and beets will switch from Mexico to Oxnard in mid-April.
The company expects good volume for most items for Easter, April 12.
Five Crowns Marketing of Brawley, CA is the state’s largest shipper of sweet corn, and weather has been ideal. The operation ships sweet corn year around, starting in Brawley in April, then moving to Coachella in May, followed by Mendota, Tracy, Arizona, and Washington.
Most recently, the company has been sourcing from Sinaloa, Mexico.
Five Crowns will begin shipping cantaloupe in early May, followed by variety melons and honeydew around May 10 – 15. The company also will have seedless watermelons from Arizona starting in early June with big volume in time for the 4th of July. After that, watermelon shipments will move to Mendota and Tracy before transitioning to Mexico for the winter.
Sunnyside Packing Co. of Selma, CA has eggplant, bell peppers, soft squash, hard squash and a few green beans and a small onion program.
Ventura County vegetables and strawberries – grossing about $7200 to New York City.
