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Port of Houston is Ramping Up for Growth; Perishables are a Key Part of the Plan

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The Port of Houston is in the midst of numerous upgrades and expansions, while propelling itself into the future.

With strategic investments in new equipment, terminal infrastructure and channel improvements, the port continues to solidify its position as a vital hub for trade in the Gulf region. 

“American farmers and ranchers depend on a reliable and efficient transportation system to move their products to market,” Agriculture Secretary Tom Vilsack said in a news release. 

According to the USDA, the Port of Houston has faced challenges in handling agricultural exports due to a shortage of chassis, leading to inefficiencies in moving reefers on and off vessels. 

“The USDA is pleased to announce the partnership with the Port of Houston and the expanded collaboration with NWSA to further ease port congestion. Through these investments, we continue to deliver on our promise to bolster the supply chain and support American-grown food and fiber,” Vilsack said in the release.  

With support from the USDA Agricultural Marketing Service, the port is leasing additional chassis to mitigate these challenges. 

“This is an opportunity for new or emerging candidates, or new or emerging commodities to enter the US marketplace. And that’s what makes the Port of Houston so great,” said Dante Galeazzi, CEO and president of the Texas International Produce Association.

Additional improvements at the Port of Houston aim to optimize infrastructure and channel capacity to better serve the region.  

This includes widening, deepening and maintaining the Houston Ship Channel, driving the development of landside infrastructure and inland distribution networks, and enhancing efficiency and resilience through innovative technology and other strategies. 

“Port of Houston only has room to grow,” Galeazzi said. 

The Pro Citrus Network, operating through the Port of Houston, plays a vital role in facilitating the efficient transportation and distribution of citrus products. 

Founded in 2004 in California as a grower-shipper, PCN was the first to import lemons into Port Houston in 2008. Since then, PCN has grown throughout Texas and the Midwest. 

After outgrowing several leased facilities in Houston, PCN launched sister company Foremost Fresh Direct to service PCN to provide citrus year-round, as well as service other fresh produce and perishable customers needing cold storage, bringing additional commodities including avocados, grapes, melons, pineapples, juice and additional perishable items.   

 

 

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While Most Calif. Avocado Shippers May be down, McDaniel Sees an Increase

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California avocado shipments are estimated to be down about 12 percent from last season. However, McDaniel Fruit Co., baseded in Fallbrook, CA, does not expect to see a decline in its production.

California is estimated to have 208 million pounds this season.

The grower/shipper/packer reveals with its growing partners, thousands of new trees are planted every year in California. So, while the California avocado industry is expected to be down, McDaniel expects to have the same volume of fruit as last year if not more.

The company also sees better sizing than last year during the peak shipping months of April, May and June and into July and August.

During the next few months, McDaniel Fruit will be shipping avocados from Mexico, Peru and Colombia, as well as from California. Peru is expected to be a significant player this summer and Colombia is also a point of origin with increasing supplies.

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Imported Mexican Produce May Have a Little Less Volume, but Still be Decent

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Weather and other factors have caused a few hick ups with imported Mexican produce so far this year, while overall volume has been perhaps a little lower, but decent.

Horton Fruit Co. Inc., based in Louisville, KY, also has an office in Irving, TX. It reports the 2023-24 Mexican produce season has been very difficult, with volume affected, resulting in some of the highest markets on record for tomatoes, bell peppers, cucumbers and squash.

Hurricanes late last year adversely affected plantings, plus low water levels in reservoirs in the Mexican state of Sinaloa and on the Rio Grande created uncertainty over water availability.

For late February, those price levels are unheard of, Wilkins said. 

But overall, harvesting and transportation delays have been rare this season.

Horton Fruit handles avocados, bell peppers and cucumbers on a nearly year-round basis. 

Between central Mexico, Sinaloa and some of the other areas Horton Fruit is mostly going year-round with tomatoes, hot peppers, bell peppers and cucumbers. 

Primo Trading Services of McAllen, TX, reports Mexican onion acreage has decreased due to the lack of enough water. 

Due to this problem the company expects fewer imports by the U.S. as well as a very strong Mexico domestic onion market. Primo harvested its first onions in early February], and will continue until mid-to-late April. 

Northwest U.S. onion supplies were also at historically low levels in February, which was supporting high prices.

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Dole Terminates Fresh Express Deal under Antitrust Pressure from Justice Dept.

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Global fresh produce marketer Dole plc terminated its agreement to sell its Fresh Vegetable Division to Fresh Express, a wholly-owned subsidiary of Chiquita Holdings Limited (Chiquita).

In a release Thursday morning, the company said the decision resulted from the U.S. Department of Justice’s decision to pursue litigation to prevent the transaction. 

The DOJ said Thursday that it had concerns about the deal’s impact on competition in the packaged salad market.

“At a time when food companies are already overcharging Americans for groceries, today’s abandonment preserves lower prices and availability for an essential kitchen staple,” said Assistant Attorney General Jonathan Kanter of the Antitrust Division in a statement.

“This merger would have reduced the number of competitors from three to two and raised grocery prices for food products that are purchased by 85% of American households. I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals, and professional staff who made this result possible.”

In January 2023, the company announced a ‘definitive agreement’ to sell the division for gross proceeds of approximately US$293 million, subject to certain adjustments.

At the time, they said the transaction was subject to regulatory approval and the parties expected the transaction would close after obtaining approval.

This morning, the company put out the following statement regarding the announcement:

“While Dole strongly disagrees with the Department of Justice’s decision and continues to believe that the transaction was pro-competitive and would have unlocked ongoing benefits to customers and consumers, we remain confident that we will have an alternative path forward in the near term that is in the best interests of the Fresh Vegetables Division’s employees, customers, and partners, and the Dole plc shareholders.”

The company’s executive chairman Carl McCann previously said the deal with Fresh Express would improve their offering and service to customers and consumers through increased investments in innovation, efficiencies, and food safety.

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‘A Dozen Reasons’ to Enjoy Safe and Healthy Fruits and Vegetables

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It’s time for the Alliance for Food and Farming’s annual “A Dozen Reasons” list to celebrate the bounty of choices in the produce aisle and remind everyone why it’s so important to eat more fruits and vegetables for better health and a longer life.

Nutrient-dense, delicious and filled with goodness, fruits and vegetables offer it all. Plus, decades of nutritional studies (mostly using conventionally grown produce) have shown that a diet rich in fruits and vegetables prevents diseases, improves physical and mental health and increases lifespan.

Here’s our 2024 list of A Dozen Reasons to Eat More Produce:

1) Apples: In addition to the many disease-fighting nutrients in an apple, red apples contain an antioxidant called quercetin, which can help fortify your immune system, especially when you’re under stress. And remember to eat the peel, which is rich in fiber and antioxidants.

2) Bell Peppers: Peppers are rich in Vitamin A and C. And the yellow, orange and red peppers are also high in beta carotene which has been shown to have cancer-fighting benefits.

3) Berries: Blueberries, strawberries and raspberries are rich in vitamins and antioxidants. Eat them together for a powerful nutrient-rich punch.

4) Cherries: Cherries are a good source of antioxidants, which studies have indicated may reduce the risk of heart disease. Can’t sleep, suffering from jet lag? Try eating some cherries. This delicious fruit also contains melatonin, which regulates sleep cycles and may be a helpful food for fighting jet lag and insomnia.

5) Grapes: Grapes of all colors are a natural source of beneficial antioxidants and other polyphenols, including the stilbenoid resveratrol, which studies have shown positively influence immune function. Big words to describe a nutritional benefit for this powerful little fruit.

6) Green Beans: A vegetable staple in many households, green beans are a good source of vitamins include Folate, and Vitamin A and C. But did you also know that green beans are a good source of minerals, especially manganese, that supports your metabolism and has antioxidant abilities.

7) Leafy Greens, Like Kale and Spinach: Often referred to as superfoods, studies have recently shown that in addition to disease-fighting characteristics, leafy greens keep your mind healthy too. Peer reviewed research found that people who ate one to two servings of leafy greens per day had a slower rates of cognitive decline.

8) Peaches and Nectarines: Juicy and delicious, these fruits provide 10 different vitamins plus fiber and potassium. Pregnant? Not only are these nutrient-rich fruits good for your growing baby, but the abundance of potassium assists in preventing muscle cramps and keeps energy levels up.

9) Pears: This fruit is high in fiber, a good source of Vitamin C and contains natural antioxidants. Including pears in your diet lowers the risk of obesity, diabetes and heart disease while promoting a healthy complexion and increased energy.

Reasons 10, 11 and 12:

A diet rich in fruits and vegetables has been shown to:
• Improve mental health by promoting a greater sense of well-being;
• Give your skin an attractive glow;
• Promote healthy weight maintenance;

And to make it a baker’s dozen, peer reviewed research has shown that if half of Americans increased their daily consumption of fruits and vegetables by a single serving, 20,000 cancer cases could be prevented annually.

Choose the produce that you prefer and is affordable and accessible for you and your family. Organic and conventional – decades of studies and government sampling data show that both production methods yield very safe food that consumers can eat with confidence. Don’t let anyone or any group discourage or scare you away from choosing the produce you enjoy.

And remember to follow the advice of the Federal Food and Drug Administration (FDA) and wash your fruits and vegetables. According to the FDA, washing produce under running tap water can reduce and often eliminate any minute pesticide residues, if present at all, as well as dirt and bacteria.

Visit safefruitsandveggies.com and @safeproduce to learn more about produce safety.

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Overall California Citrus Shipments Expected to be Similar to a Year Ago

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California citrus growers are expecting average production volume for all products this season, 

California Citrus Mutual (CCM) reports it depends on the variety, with
Navels being up about 5% from the prior season, which was one of the lowest seasons the industry has experienced.

Lemon volumes are expected to decrease. A January forecast by the USDA reduced the initial projected volume from 23 to 20 million boxes for the state. 

The on going mandarin crop ongoing is projected to decline from 23 to 22 million boxes. 

Heavy rains from last year, after years of drought, are resulting in excellent fruit sizes this year.

Compared to the last couple of years, CCM reports this season started better than anticipated.

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Banana Imports Increase in Volume and Value

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Banana import volume and value rose in 2023, according to USDA trade data.

At $2.04 billion, the U.S. import value of bananas in 2023 was up 4% from 2022, up 9% from 2021 and up 8% from 2020.

U.S. import volume of bananas was 5.08 million metric tons in 2023, up 2% from 4.99 million metric tons in 2022. The per metric ton value of banana imports in 2023 was $532.80, up 7% from 2022 and up 11% from 2021.

Guatemala, Costa Rica, Ecuador, Honduras, Colombia and Mexico were the top global suppliers to the U.S. market, according to USDA numbers. By country, 2023 U.S. import value numbers, with percent change from 2022, were:

  • World total — $2.04 billion, up 4%.
  • Guatemala — $948.9 million, up 2%.
  • Costa Rica — $432 million, up 21%.
  • Honduras — $228.3 million, down 4%.
  • Ecuador — $167.9 million, up 2%.
  • Colombia — $123.9 million, up 6%.
  • Mexico — $106.1 million, down 13%.
  • Panama — $31.1 million, up 68%.

Banana retail per capita availability was 26.9 pounds in 2021, down 1% from 2020 and down 2%. Retail per capita availability data for 2011 to 2021 was:

  • 2011 — 25.5 pounds.
  • 2012 — 26.9 pounds.
  • 2013 — 28 pounds.
  • 2014 — 27.9 pounds.
  • 2015 — 27.9 pounds.
  • 2016 — 27.4 pounds.
  • 2017 — 28.6 pounds.
  • 2018 — 28.3 pounds.
  • 2019 — 27.4 pounds.
  • 2020 — 27.2 pounds.
  • 2021 — 26.9 pounds.

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Texas Shippers Reporting Good Volume with Spring Onions

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The Texas spring onion season was underway in mid-March with plenty of good-quality product, according to shippers

The Onion House of Weslaco, TX started harvest about 10 days later than usual due to cold weather. However, it had Mexican onions in good volume by late February. Excellent supplies should be available through April and most of May.

The Onion House ships 1015-type sweet yellow, white and red onions.

Little Bear Produce of Edinburg, TX is reporting good quality and volume would be similar to last year, even though acreage industrywide may be lower.

Val Verde Vegetable Co. of McAllen, TX is shipping onions during April until the middle of May.

The company, which recently doubled the size of its packing facility to more than 200,000 square feet, is shipping yellow and red onions this spring.

It started harvesting organic onions in mid March, which is early for South Tex Organics.

The company, which also ships organic oranges and grapefruit, will offer organic onions from March into May.

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Honeybear Brand Chilean Apple Imports will begin Arriving in April

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Elgin, MN – Honeybear Brands, a leading grower and marketer of premium conventional and organic apples, pears and cherries, is delivering a fresh-picked crop of apples and pears to retailers nationwide beginning in March thanks to its Chilean operations.

Honeybear Brands is the leading apple importer from the Southern hemisphere, ensuring retailers have premium conditioned fresh fruit to offer shoppers during the spring and summer months.


“Incorporating imports in the fresh fruit mix is a smart long-term strategy as many domestic apples begin losing flavor and that crisp eating experience after months in storage,” says Don Roper, vice president sales and marketing, Honeybear Brands. “With near perfect weather in Southern Chile, Honeycrisp fruit sizing and quality this year should be terrific.”

Honeybear’s Chilean Honeycrisp crop started harvest in early March and will begin to arrive by April into its East Coast facilities. In addition to Honeycrisp, organic and conventional Gala, Pink Lady, Granny Smith, Fuji, Pazazz, and pears will be available. With operations on both coasts, Honeybear maintains its leadership position in providing retailers with premium fruit, executing 100% supply assurance and ensuring lowest landed cost apple and pear programs.

With its broad array of orchards in Washington and the Midwest plus its import production in South America, Honeybear Brands provides a turnkey apple and pear program for retailers all year round.

About Honeybear Brands
Honeybear is family owned a leading grower and developer of premium apple varieties and has been in operation for more than 40 years.

As a leading vertically integrated, dual hemisphere grower, packer, shipper, Honeybear offers supply of premium apples and pears on a year-round basis. Honeybear Brands is a wholly owned subsidiary of Wescott Agri Products. For more information about Honeybear, visit www.honeybearbrands.com and follow on Facebook.

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Adaptability is the Key to Success

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By Fernando Dominguez ALC San Francisco

The Transportation industry is more than just getting products from point A to point B. There are myriad factors to consider, from the product itself and the agricultural regulations it abides by to the equipment utilized and the laws that govern it. Most importantly, but arguably the most overlooked factor in this industry, are the laws, rules, and regulations that create the foundation under which many products are cultivated. Being part of a national transportation brokerage and working in the San Francisco office, whose main niche is in produce, we are consistently watchful for changes in regulations and shifts in the market. They have the potential to affect both the customers we conduct business with and the carrier companies that relentlessly move product from coast to coast. I am part of a team that must shift and pivot in an industry full of change, but with change comes bountiful opportunities.

There have been numerous occasions where changes in agriculture and consumer spending have led customers and carriers to adjust their daily procedures to keep up with demand. Most recently, the USDA Announced Temporary Suspension of the Continuance Referendum Requirement for California Raisins. This has the potential to change how much grapes are moved throughout the country. Subsequently, other produce products grown in California will be impacted, as this action amends a marketing order affecting growers and handlers of grapes (of whom presently, there are approximately 18 handlers of raisins subject to regulation under the Order and approximately 2,000 raisin producers in the regulated area). Keeping track of regulatory changes is extremely important because they enable multiple entities to regulate the cultivation and distribution processes. Additionally, it’s crucial to understand the financial effects of these changes. Any time there is a change of this magnitude in the transportation industry, it has the potential to change customer buying projections, bids on specific lanes, and carrier shifts in certain geographical regions. It even changes the compliance that drivers must adhere to when loading at specific shippers. 

I take pride in contributing to an industry that ensures Americans have access to high-quality goods and efficient resource distribution. Our direct involvement in this dynamic system allows us to continuously sharpen our skills and thrive amidst challenges. These challenges foster team cohesion and offer unparalleled opportunities for career growth. The next time I go to the grocery store and see a display of grapes or raisins, I will know that many people and businesses made a tremendous effort to cultivate, supply, and distribute them even through changing regulations. At ALC, we’re committed to upholding our core values of integrity, dependability, service, honesty, and family while meeting the evolving needs of our industry.

*****

Fernando Dominguez graduated from California State University Chico in 2020. He served as an embarkation logistics specialist in the United States Marine Corps Reserve as a sergeant, while beginning his career at the Allen Lund Company as a transportation broker in training. He was promoted to transportation broker after eight months and subsequently to carrier manager after a year and a half at the ALC San Francisco office.

fernando.dominguez@allenlund.com

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