Retail potatoes sales in the U.S. have skyrocketed during the Covid-19 pandemic, increasing 31 percent in dollars and 32 percent in volume in the three months from mid-March. Consumers are believed to be cooking more at home over recent months and favoring produce items with long shelf life. All potato categories across the retail store, except deli-prepared sides, increased in dollar and volume sales.
Most potato categories saw double-digit growth in both measures as dehydrated potatoes experienced the largest increase in dollar and volume sales. Dollar sales increased by 59 percent, and volume sales increased by 49 percent.
Deli-prepared sides decreased by 23 percent in dollars and 51 percent in volume. Over the 13 weeks, total potato sales saw dollar sale increases of 13 percent or more. Fresh potato sales increased by 46 percent, and volume increased by 35 percent.
Every fresh potato type except for fingerlings showed double-digit dollar sales growth. Fingerling potatoes were the only category that decreased in volume sales, down by 7 percent. Yellow potatoes showed the largest increase in both dollar and volume sales. Dollar sales increased by 54 percent, and volume sales increased by 42 percent.
California table grapes are in full swing for 2020 with fruit shipping a little faster than previous seasons and following slightly lower volumes in the Coachella Valley.
Grape shippers are looking at what it considers a new normal volume for 2020. The two major grape-producing regions of the state, the Coachella and San Joaquin Valleys ship 99 percent of the nation’s commercially grown table grapes.
The transition between the Coachella and San Joaquin Valleys was smooth with the demand likely a reflection of shorter volumes from the Coachella Valley and Mexico and excellent San Joaquin Valley fruit quality.
The California Table Grape Commission estimates 104.9 million 19-pound boxes will be shipped this year. This means the 2020 estimate is the same volume as was harvested in 2019.
This season there will be a few new table grape varieties, even if their availability doesn’t impact volume all that much over all. The top 15 varieties harvested in 2019 represented 75 percent of the shipments.
Grapes and stone fruit – grossing about $5400 to Chicago.
Mexican berry exports will be down from originally forecast to its leading market this year due to the COVID-19 pandemic, but is still expecting an increase over 2019.
National Association of Exporters of Berries (Aneberries), reports the country had expected a double digit rise in exports to North America. But in light of the pandemic, it now expects Mexico to see a 5 percent increase over last season in berry exports.
The industry currently has more than 116,000 acres of crops in 22 states and it exports over 400,000 metric tons (MT) each year, a figure that represents $2.5 billion to Mexico. However, 97.5 percent of exports are concentrated in the United States and Canada, so Mexico is looking to diversify into other markets, mainly in Asia and the Middle East.
The primary challenges to gain a foothold of these markets are logistics and commercial relationships. Berry exports must be shipped by air, especially raspberries and blackberries. However, the pandemic has interrupted intercontinental flights.
Aldi will open another 70 stores by the end of the year and currently has 2,000 stores.
The company’s continuing expansion will also include entering the greater Phoenix market and, in 2021, building a new distribution center in Loxley, Ala., to support more expansion on the Gulf Coast, according to a news release. Aldi has invested more than $5 billion in recent years to remodel existing stores and add hundreds of new ones.
“Each new store is an opportunity to serve another community, which is an honor and responsibility we do not take lightly,” Jason Hart, ALDI U.S. CEO, said. “As we continue to expand, we promise to do everything in our power to offer the lowest prices, every day, without exception. In fact, as food costs are rising across the country, we’re lowering prices on hundreds of items to meet our customers’ increased need for savings.”
Along with its aggressive growth in recent years, Aldi has increased its fresh food selection by 40 percent. It has also expanded its e-commerce presence, with delivery available through third-party services for more than 10,000 zip codes and curbside pickup an option at nearly 600 stores.
Aldi’s entry into the greater Phoenix market later this year will include four new stores. Arizona is the 37th state for Aldi.
The company’s new distribution center in Alabama will serve new stores in southern Alabama, the Florida Panhandle and Louisiana, which will be the 38th state for Aldi. The retailer already has 180 stores in Alabama and Florida, plus four regional headquarters and distribution centers in the area.
The Peruvian blueberry industry is expecting a huge 40 percent rise in exports this season to about 165,000 metric tons (MT).
The South American country overtook Chile last season becoming the world’s largest exporter of fresh blueberries, sending 120,000MT to overseas markets. The Peruvian blueberry association ProArandanos reports peak volumes were forecast for early November, when a little over 10,000MT of fruit is expected to be shipped.
Asian countries are set to receive the biggest increase in percentage terms, with exports to the region due to double over last year. Meanwhile, exports to Europe are expected to increase by 50 percent, and to the U.S. by 25 percent. Peru exports about half of its blueberry volume to the U.S., 30 percent to Europe, 15 percent to Asia and the remaining 5 percent to other countries in South America, as well as the Middle East and the Caribbean.
Peru expects to export to Taiwan for the first time this coming season, having gained market access in March. The country began its export season in May, with shipments to Brazil and Thailand.
The four most valuable crops in Monterey County remained unchanged from 2018 to 2019, led by leaf lettuce, which saw an increase of nearly 15 percent, boosted by better pricing for romaine.
Overall, the county’s ag production value increased 3.5 percent in 2019, to almost $4.41 billion, according to the Monterey County 2019 Crop Report, issued by the county’s agricultural commission.
Of the top 10 crops, ranked by production value, seven categories are vegetables, with the exception being strawberries, in the No. 2 slot again, and wine grapes and nursery products. All 10 crops are the same crops from the 2018 list.
Strawberries saw an increase of about 5 percent, with a bump of more than $34 million, to $732.76 million, mostly due to improved fresh strawberry prices.
Head lettuce, Monterey County’s third-most valuable crop, increased almost 12 percent to $514.09 million. Increased production and higher average prices for carton-packed lettuce are the main reasons for the increase.
Overall, vegetable crops saw an increased production value in 2019 of about $228 million, at just under $3.1 billion. The fruits and nuts category dropped about $15.7 million in value to $1.03 billion, but that includes a 25 percent drop in wine grape crop value. Dropping wine grapes from the category gives fruit and nuts a $46 million (5.7 percent) boost from 2018 to 2019.
Monterey County’s top crop values, followed by 2019 and 2018 rankings, are:
New York apple shipments should total 30 million bushels this coming season, which would be on par with volume for the average of the last five seasons.
At Hudson River Fruit Distributors, Milton, N.Y., the company added about 25 acres of orchards in 2019 for a total of 500 acres of apples. The company has removed older varieties on 5 to 10 percent of the acreage to fuji and EverCrisp varieties, which keep growing in popularity. More gala and Pink Lady varieties continue to be planted every year.
Hudson River Fruit expects to start shipping for the 2020-21 season by mid-August — the start of the company’s 58th harvest.
Northwest potato shipments will be down this season from Oregon due to drought, and from Washington state because of too much rain. The COVID-19 virus also plays a role.
Washington and Oregon rank second and third, respectively, among the 50 states in potato production, with processing accounting for as much as 90 percent of shipments. Demand is reported strong, for both processed and fresh product.
An estimated 80 to 85 of Oregon grown spuds go to processing, and the hard hit foodservice industry has affected all potato growers in the Northwest and the nation.
Riverside Potato Inc. of Merrill, OR reports no snow pack, and a lack of rain resulting in 300,000 to 330,000 acre feet of water being cut to 140,000. The result is the company estimating it will be down 30 to 35 percent in potato acreage in the valley this season.
Riverside will ship product from 200 to 250 acres this year, compared to 550 to 580 acres a year ago.
Wong Potatoes Inc. of Klamath Falls, OR reports drought conditions were worse than any since 2006. Last season, the operation planted over 900 acres, compared to this year, which totals a little over 600 acres.
To the north in the Columbia Basin, along the Washington-Oregon border, rainfall wasn’t a problem, but acreage likely will be down, according to Potandon Produce of Idaho Falls, ID.
Overall, Potandon sees its fresh potato loadings basically being down, although volume might be up slightly in August. However, September and October, product coming out of storage will definitely be up lower.
In Northwest Washington, Valley Pride Sales of Burlington, WA has had too much rain.
The USDA says production in 2019 totaled 11.6 million pounds, compared to 11.3 million in 2018. Potatoes in storage accounted for 17 percent of 2019 production, compared to 18 percent a year earlier.
Oregon production in 2019 totaled 2.82 million pounds, compared to 3.02 million in 2019. Potatoes in storage accounted for 14 percent, unchanged from the previous year.
Northwest region potatoes remaining to be shipped out of storage on June 1, 2020, totaled 5.3 billion pounds.
June 1 potato stocks in Oregon totaled 403 million pounds. Shipments to date was 2.41 billion pounds. In Washington, June 1 potato in storage totaled 1.97 billion pounds. Loadings to date totaled 85.6 million cwt., or 9.6 billion pounds.
Nationally, the 13 major potato states held 7.5 billion pounds on June 1, 2020, down 4 percent from last year.
Potatoes in storage accounted for 16 percent of the states’ 2019 production, compared with 17 percent for a year earlier.
Potato diggings have just got underway, which is normal.
Following Labor Day, growers will be putting some product in storage and still pack out of the field. Packing out of the field continues until October 10. Potandon will finish on a Friday, packing old crop, and start a new crop Monday or Tuesday and continue on with the crop out of the field. The company then switches into storage and continues to the next July.
South Basin Packing of Gresham, OR notes the crop is coming along for shipments to retailers, although foodservice is certainly down due to the COVID-19 pandemic.
Norman Nelson Inc. (Double-N Potatoes) of Mount Vernon, WA reports acreage in the Skagit Valley, whose season will start around September 1, appeared to be about normal. Acreage is expected to be similar to a year ago.
Laredo, TX—Integrated Design-Build firm A M King has begun construction of a 262,000-sf ripening and cold storage distribution center for Mission Produce Inc., the world’s largest grower, packer, and shipper of Hass avocados.
The new mega-facility will be located in Laredo’s Pinnacle Industry Center on 32.6 acres adjacent to the Rio Grande River and the Mexican Border. It will allow the company to capitalize on the continued popularity of its signature product in the nation’s busiest land port. Mission plans to initially hire 75 employees when the project is complete in May 2021.
Mission Produce, founded in 1983, owns and operates state-of-the-art avocado packing facilities in multiple global locations, including California, Mexico and Peru. Hass avocados are grown in these tropical and subtropical climates, with each tree producing between 150 and 500 avocados per year. In addition, the company’s distribution network includes 11 forward distribution centers in North America, China and Europe. All facilities are GFSI (Global Food Safety Initiative) certified and are fully compliant with regulations such as FSMA, SFCR, HACCP and the Codex Alimentarius. The new distribution facility in Laredo will be its largest to date, eclipsing the company’s headquarters facility in Oxnard, CA by nearly 50,000 sf.
“We are happy to join Mission Produce in the design and construction of the largest avocado plant in the country,” says A M King Vice President Dan Crist. “Our food industry expertise, coupled with our track record of successfully completed cold storage and distribution projects, makes this an ideal partnership.”
“The Laredo, Texas facility will shorten our replenishment time to our network and add flexibility in managing inventory,” said Mission Produce’s President and CEO Steve Barnard. “The City of Laredo is strategically positioned on the border of Texas and Mexico, making it an ideal location for the distribution of Mexican avocados into the United States. By investing in Laredo, we are redoubling our commitment to serving customers, providing value-added services, creating jobs, and leading the avocado industry.”
A M King provided Mission Produce with full site consultancy services, which included analysis of the property currently needed by the business today, as well as for future planned expansions. Mission Produce required as much flexibility as possible while still incorporating easily adaptable economical infrastructure and layout. A M King also worked in tandem with Mission Produce to determine adequate site infrastructure requirements for securing local economic development incentives.
Additionally, A M King managed the complicated process of acquiring the site while meeting all zoning and municipal ordinances specific to site development of greenfield land in the City of Laredo. Working together with A M King, Mission Produce was able to execute the property purchase of the best possible location for this advanced, world-class facility to begin development within an accelerated time period.
Like any food facility that A M King designs and builds, putting sanitary design measures in place is paramount. In this facility, there will be a number of elements with this focus, including floor drains for room washing and washable surfaces (concrete floor, IMP walls); structural steel tubes in lieu of W beams (avoiding surfaces for dust collecting), and installation of sinks in the packaging areas. In addition, several sustainability processes will be implemented, such as rainwater management, heat island reduction, daylighting and focus on energy performance.
During construction, A M King will enforce new safety policies and procedures for infectious diseases in accordance with CDC and OSHA recommendations, as well as local and state requirements. Some of those include temperature checks, social distancing, use of masks and gloves, handwashing stations and limiting group gatherings.
The scope of work on this project will include design and construction of ripening rooms; coolers; forced air cooler; cooler dock; dry goods storage; a bagging and production area; offices and dispatch; Border Patrol office; and USDA office.
Functionality is the focus on all operational areas, such as storage, staging, ripening, packaging, shipping and receiving. All the rooms are designed to facilitate company processes from receipt of the avocados from growers to delivery to vendors. The main office and the shipping office feature unique aesthetics and are designed with large open areas for offices and employee welfare. Broad views will be enjoyed through curtain walls and over the balcony of the two main sides of the building, including the dock. There will be an interesting combination of volumes with intersecting angles.
Recently, A M King designed and constructed a smaller-scale cold storage distribution center in Charlotte, N.C. for West Coast-based Henry Avocado Corporation. This facility was designed with the capability to distribute approximately 300,000 avocados per day along with storage capacity for an additional one million avocados.
A M King is an integrated Design-Build firm based in Charlotte, NC with offices in Greenville, SC and Chicago, IL. The firm consistently and successfully delivers quality projects throughout the United States. With an experienced team committed to protecting clients’ assets, the company provides property consulting, design and engineering, construction and facility services in the sectors of food processing, food distribution, industrial manufacturing and commercial properties. A M King’s exemplary track record demonstrates that the company is focused on its mission to be the best in the industry.
Mission Produce Inc. is the world’s most advanced avocado network. The company owns and operates state-of-the-art avocado packing facilities in multiple growing locations including California, Mexico, Peru and Colombia, and it also sources product from countries such as Chile, New Zealand and Guatemala. In addition, Mission Produce’s global distribution network includes 11 forward distribution centers in North America, China and Europe. Over the past 35 years, Mission Produce has become recognized as the leader in the worldwide avocado business.
California strawberry shippers had shipped 121.8 million trays of the fruit by mid July, up from 112.2 million trays last year at the same time, but down from the 128 million trays shipped in 2018, according to the California Strawberry Commission.
Well-Pict Inc. of Watsonville, CA reports the season peaked around July 1, although plenty of berries remain.
Strawberry shipments were strong in part due to a shorter-than-usual early-season crops of some other summer fruits such as watermelons and cherries. Since then increased volume from watermelons and cherries as well as other summer fruits like peaches, plums, nectarines and grapes, strawberry are providing more competition.
Watsonville-Salinas strawberry loadings are seasonally declining and Well-Pict will pick up its new fall strawberry crop out of Oxnard from mid-September through mid-November.
Bobalu Berries of Oxnard is gearing up to kick off its fall crop from Santa Maria. The grower-shipper loads out of an area that is actually north of the main Santa Maria growing region in a coastal location similar to Salinas.
Picking should start this week and continue until early November.
Salinas Valley berries and vegetables – grossing about $5700 to Chicago.
