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Domestic Citrus Loadings are Increasing after Slow Start

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U.S. citrus shipments should be up this season in most growing areas compared to last year, and despite challenges in some areas, growers contend they are shipping some good-quality fruit.

During the late fall in California, the navel orange season got off to a rough start.

The San Joaquin Valley was unusally hot last summer, where most of the state’s oranges are grown. At one point, temperatures topped 100 degrees for more than 30 days straight, which shut down the trees.


As a result, sizing on the fruit, especially the early varieties, was unusually small.

Rainfall around Thanksgiving and in December and early January was helping to improve fruit size. Early this season, citrus growers nationwide had to deal with Southern Hemisphere fruit lingering in the domestic market for longer than usual. There was plenty of questionable quality.

This resulted in October, November and December being sluggish.

But as supplies of imported citrus wound down and domestic movement picked up, markets seemed to be improving. Market improvements finally arrived with the New Year.

Florida’s citrus industry still is recovering from the effects of Hurricane Irma, which hit the state in September 2017, wiping out a large part of the orange and grapefruit crops.

During the 2017-18 season, the state shipped only 45 million 90-box equivalents of oranges, 3.9 million boxes of grapefruit and 750,000 boxes of tangerines.

Hurricane season now is over for Florida growers, but they’re keeping their fingers crossed until March or so, when the threat of freezes should be over.



Up to 95 percent of the Florida’s oranges are grown for processing.

Citrus movement in Texas started off a bit slower than usual this season, mostly because of the large amount of imported fruit remaining the in the distribution pipeline, which slowed shipments. While loadings picked up for Christmas, volume still was behind the previous season.



Still, Texas citrus shipments should be greater this season than last.

Lower Rio Grande Valley citrus, plus Mexican produce crossings – grossing about $4800 to New York City.



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Michigan Apples to be Shipped by Applewood Fresh Growers

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Applewood Fresh Growers LLC, located in Sparta, MI, is now shipping Michigan apples.

Although it’s a new company, Applewood Fresh traces its roots to the 1935 founding of Applewood Orchards Inc., of Deerfield, MI.

“Our work is about more than just sales or profit,” Scott Swindeman, Applewood Fresh owner and fourth-generation grower and partner at Applewood Orchards, said a news release. “We take pride in serving as a reliable partner to our growers and customers, providing access to healthy, great-tasting fruit to people across the country and cultivating strong industry relationships along the way.”

Applewood Fresh Growers produce 21 apple varieties across the country year-round. The company’s grower network has more than 11,000 acres, and apple varieties include some managed (licensed) varieties: Kiku, Kanzi, Rave and SweeTango.

Applewood Fresh emphasizes sustainability measures adopted by growers, including advanced irrigation and pest control, eco-friendly packaging and solar/wind power.

“We are thrilled to extend the legacy of a multi-generational company that not only offers delicious, quality apples but also values and prioritizes its relationships throughout the supply chain, from grower to buyer to consumer,” Antonia Mascari, director of marketing at Applewood Fresh, said in the release.

Applewood Fresh announced the new company on Jan. 8, the same day Riveridge Produce Marketing, another Sparta apple grower-shipper-marketer, announced its acquisition of Sparta apple company Jack Brown Produce’s sales operation.

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Florida Citrus Shipments are Poised for Big Increase

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Florida orange shipments should total about 77 million 90-pound box equivalents, most of which will go to processing. Last year’s total was about 45 million boxes.

This is a significant increase in volume as Hurricane Irma had devasting consequences in 2017.

The state’s growers are expected to ship 6.4 million boxes of grapefruit and 1.2 million boxes of tangerines this season.

 

Duda Farm Fresh of Oviedo, FL is shipping juice oranges, navel oranges, tangerines, plus white and red grapefruit this winter.

Volume for oranges is expected to increase 30 to 40 percent from last year, mostly because of the devastation from Hurricane Irma. Quality this season is reported good in part because Florida has had some cooler weather.

Last year good fruit color was a challenge because of warm fall weather.

Duda Farm Fresh completed its navel season in early January, and will begin picking valencias in February.

Grapefruit volume should be up over 60 percent for the company this season compared to last year, when the firm’s orchards received a direct hit from the hurricane.

Duda Farm Fresh Foods is offering red and white grapefruit, with the season extending through most of February and hopefully into March.

Florida Classic Gowers Inc., Dundee, FL will have an longer season this year for its valencia oranges as a result of an expanded storage program, with shipments running through June.

The company’s valencia program started in late January, with optimism for a good, quality crop. Initial indications are for larger sizing than last season, with more 64- and 80-count fruit.

The company expects to ship more valencias this year than last year.

The Honey tangerine harvest started the week of January 14th and should be available into April.

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Lemon Imports from Turkey and Spain are Increasing

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Increased competition for domestic lemon growers and shippers is coming from other countries who are supplying more product to North America.

Salix Fruits LLC of Canton, GA reports for the first time, Turkey is becoming an important player in the North American lemon market. The fruit importer/exporter specializing in citrus notes the only fruit available in the U.S. during the northern hemisphere season was California. However, imported lemons from Spain got underway about five years ago. Now, Salix Fruits also is importing lemons from Turkey.

U.S. lemon shipments and supplies have been better this season than expected.


Spain also has a good crop as well as Turkey. But Turkey has seen rain recently, slowing imports down a little bit as its season comes to a close in mid February. Spain has a longer season because they have another variety called Verna. But that variety needs cold treatment for entering the U.S.” Depending on the year, the Spanish season can go until April/May.

With this amount of product in the market, prices are competitive and lower than last year. “Prices are about 10-15 percent lower than last year,” says Elortondo. “It’s competitive and demand is stable for lemons. It’s not like Persian limes for example, which have more seasonality because they’re also used for cocktails and during the summertime. Lemons have regular demand throughout the year.”


Availability of imported lemons in the U.S., like with many other commodities, has become very consistent throughout the year. Once the northern hemisphere seasons are over, Chile comes into the picture, and last year, Argentina was allowed to enter the U.S.

The first year many U.S. importers were cautious with Argentina and limited the number of loads they imported. However, good quality was reported with competitive prices, so heavier volumes are anticipated this next season, which will start in April. Turkey is expected to be a key player during the spring and summer months.

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U.S. Food Supply is Among the Safest in the World

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 By USDA AMS

SWASHINGTON  – The U.S. Department of Agriculture (USDA) has published the 2017 Pesticide Data Program (PDP) Annual Summary. The Summary shows more than 99 percent of the samples tested had pesticide residues well below benchmark levels established by the Environmental Protection Agency (EPA).

Each year, USDA and EPA work together to identify foods to be tested on a rotating basis. In 2017, tests were conducted on fresh and processed foods including fruits and vegetables as well as honey, milk and bottled water. AMS partners with cooperating state agencies to collect and analyze pesticide residue levels on selected foods. For over 25 years, USDA has tested a variety of commodities including fresh and processed fruits and vegetables, dairy, meat, poultry, grains, fish, rice, specialty products and water.

USDA tests a wide variety of domestic and imported foods, with a strong focus on foods that are consumed by infants and children. EPA relies on PDP data to conduct dietary risk assessments and to ensure that any pesticide residues in foods remain at levels that EPA has determined to be safe. USDA uses the data to help U.S. farmers improve agricultural practice and to enhance the department’s Integrated Pest Management Program.

The annual pesticide residue results are reported to the Food and Drug Administration (FDA) and EPA in monthly reports as testing takes place throughout the year. FDA and EPA are immediately notified if a PDP test discovers residue levels that could pose a public safety risk.

The 2017 data and summary can be found on the Pesticide Data Program page on the AMS website. Printed copies may be obtained by contacting the USDA Agricultural Marketing Service, Science and Technology Program, Monitoring Programs Division by e-mail at amsmpo.data@ams.usda.gov.

For more information about pesticides and food, please visit the EPA website and the FDA website.

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Super Bowl Demand Helps with Record Shipments of Avocados

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DALLAS — Despite reports to the contrary, there will be plenty of guacamole as U.S. imports of Mexican avocados are at record levels and will continue approaching the Big Game, Sunday, February 3 in Atlanta. The United States received a record 71.9 million pounds for the week ending January 13, 2019; January imports of Mexican avocados are projected to reach 217 million pounds, up 16 percent from last year during the same period.

The Los Angeles Rams play the New England Patriots at 6:30 p.m. EST, on CBS.

Big Game Sunday is the biggest day for avocado consumption in America, according to Avocados From Mexico, and guacamole is one of the most popular foods served at game-day parties.

“This season is one of the most active periods for the Mexican avocado industry,” says Alvaro Luque, President of Avocados From Mexico.  “It’s a priority for our farmers, packers and distributors to ensure Americans have the avocados they want for the Big Game.”

Additionally, back for a fifth straight year, Avocados From Mexico will have a 30-second commercial during the Big Game, airing Sunday, February 3, 2019 on CBS. This year, AFM returns with its classic light-hearted humor to showcase that Avocados From Mexico are “Always Worth It.” Over the last four years, Avocados From Mexico has told dynamic stories of Avocados From Mexico’s versatility, seasonality, and health benefits (good fats), all leading up to this year’s overarching umbrella message: Simply put, Avocados From Mexico are Always Worth It.

Americans’ demand for avocados isn’t just for game-day parties. Mexican avocado imports are expected to reach a record-breaking 2 billion pounds this fiscal year, an increase of 7 percent from last year.

About Avocados From Mexico

Avocados From Mexico (AFM) is a wholly-owned subsidiary of the Mexican Hass Avocado Importers Association (MHAIA), formed for the purpose of advertising, promotion, public relations and research for all stakeholders of Avocados From Mexico. Under agreements, MHAIA and the Mexican Avocado Producers & Packers (APEAM A.C.) have combined resources to fund and manage AFM, with the intent to provide a focused, highly effective and efficient marketing program in the United States. AFM is headquartered in Irving, TX.

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Truck Rates Decline as More Equipment is Available

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As more trucks become available for hauling, truck rates have experienced a small decline, according to DAT Solutions in a report.


National average spot rates for dry van, reefers, and flatbeds continue to decline, the company reported earlier this month.

Included in the report: 

In a typical seasonal slump, the number of trucks on the spot truckload freight market increased 7.4 percent while the number of loads dipped 10 percent during the week ending January 19, said DAT Solutions, which operates the DAT network of load boards.
 
National average spot rates declined for the second straight week: 
 
– Van: $2.01/mile, down 4 cents
– Flatbed: $2.38/mile, down 4 cents
– Reefer: $2.37/mile, down 5 cents

Reefer trends

Truck posts increased 5 percent while load posts fell 15 percent, which caused the load-to-truck ratio to drop from 6.1 to 4.9 loads per truck. It’s been more than six months since the load-to-truck ratio has been below 5 loads per truck.
 
Average spot rates were down on several key regional reefer lanes and major markets across the country.
 
– Los Angeles: $2.92/mile, down 11 cents after an 18-cent decline the previous week
– Atlanta: $2.56/mile, down 5 cents
– Lakeland, Fla.: $1.46/mile, down 9 cents
– McAllen, Texas: $2.24/mile, down 7 cents
– Philadelphia: $2.90/mile, down 5 cents
– Chicago: $2.80/mile, down 14 cents after falling 13 cents the previous week


Below are some examples of truck rates from Oxnard, CA over the past year, which charts the decline in truck.

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Chilean Grape Imports are Increasing after Slow Start

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Some winters Chilean grape imports are flooding U.S. markets the first half of January, but pretty much hit a stone wall this year as we entered 2019. That is now changing as shipments of California grapes are in big volume declines as the season concludes.

There was still a lot of California fruit in U.S. markets during December — a whopping 55 percent more California grapes in cold storage in mid-December 2018 vs. mid-December 2017. As a result, Chile has been shipping less to North America and more to Asia.

Through mid December 10,575 tons of Chilean grapes were shipped to North America, compared to 29,000 at the same time last year.  Through the end of December, 71 percent of all Chilean grape exports went to North America.

Chilean grape exports started slowly, but have picked up gradually this year. Overall, Chile reports good volumes of grapes for this season and will be exporting product through the current season.

Total global exports of Chilean grapes through the end of December reached 15,419 tons, which was a “significant decline” from the 31,000 tons of a year earlier, according to the Chilean Fresh Fruit Association.





Chile stepped up shipments to the U.S. by early January, however, with the remaining California inventory having dissipated, Brux said, dropping to 1.5 million cases at the end of the year, according to a recent market report.

“Now that January has arrived and much of the California inventory has cleared, we’ll start to see increased volumes, along with big retail promotions, for Chilean grapes in North America,” she said.

As of the first week in January, harvesting was primarily in the Coquimbo region (IV), with the Valparaiso (V) region starting, Brux said.

The largest shipment of Chilean winter fruit so far this season arrived at the Port of Wilmington Dec. 27. The shipment contained more than 676,000 boxes of fresh table grapes, peaches, nectarines, apricots, and plums, Brux said. The third bulk reefer was scheduled to arrive the second week of January.

Grape volume from the Copiapó region likely will exceed 10 million boxes this season. The largest volumes from that region were to be harvested from December through mid-January, with late varieties finishing by the first week in March.

North America is the largest market for Chilean grapes, taking in 47% of all Chilean grape exports in 2017-18, Brux said.

Bill Poulos, grape category director for the Vancouver, British Columbia-based Oppenheimer Group, said he expects volumes this year to match year-earlier figures.

“We anticipate red and green grape volumes to be fairly similar to last year, as fortunately the (Nov. 12) hailstorm largely spared Chile’s grape-growing regions,” he said. “With new varieties coming into North America, we expect higher overall volumes in April and May than in the past. This steady supply picture is emerging despite the decline in the flame variety in Northern Chile.”

New varieties will have noticeably higher volumes, said Fernando Soberanes, director of operations for South America with Los Angeles-based Giumarra Cos.

“We expect to see increased production of proprietary grape varieties out of Chile as they continue to gain popularity in the market,” he said. “In general, volumes of traditional grape varieties are declining out of Chile in favor of newer varieties. The decline is heavier toward the early-season varieties than the late varieties, so we will see smaller volumes coming in at the onset of the season and heavier volumes toward the end.”

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Orri Jaffa Mandarins Heading to North America

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Tel Aviv – The Plant Production and Marketing Board of Israel predicts 2019 will see significant increase in exports of the Orri Jaffa mandarin to the U.S. and Canada. The organization set goals for expanding export of its leading, easy-to-peel mandarin in response to the increased demand for high-quality, easy-peelers.

It carries a particularly long shelf life and appears later in the season compared to other easy peelers – from January into May.

The American citrus market has been growing significantly in recent years and is composed largely of imports. The mandarin sub-category is the largest in the citrus category, accounting for some 40 percent of the citrus market. More than 230,000 tons of easy-to-peel mandarins are shipped into the U.S. annually, at a total value of more than $1 billion. This is in addition the 1 million tons produced domestically.

Over the past 5 seasons, citrus exports from Israel to North America have increased from 3,000 tons to 9,000 tons last season, of which about 5,300 tons are easy-to-peel mandarins. This season, export of Orri Jaffa mandarin alone is expected to reach 9,000 tons, constituting a potential 70 percent growth.

In spite of this significant rise in consumption of the mandarins in the U.S., consumption per capita is among the lowest in the world, about 2.5 kg per year. But based on the rapidly increasing demand, that figure is forecast to double. In Canada that figure has almost doubled exceeding 4.6 Kg per capita.

The Jaffa Orri is a mandarin developed by scientists at the Israeli Volcani Research Center. This easy-to-peel mandarin retains an excellent, fresh, sweet flavor with a fleshy texture, and mouthful juiciness, while bearing virtually no seeds.

Data from studies conducted in recent years confirm a doubling of per-capita consumption of easy-to-peel mandarins in the past two decades. This coincides to a significant increase in the intake of easy-peelers in the American market, mainly in place of traditional oranges. In recent years, this phenomenon has led to a sharp upsurge in the import of easy-peelers to America, leading to the establishment of new groves.

“The US market for easy-to-peel mandarins is substantial and holds promise as a developing target market for Israeli citrus exports,” says Tal Amit, Director of the Citrus Division in the Plant Production and Marketing Board of Israel. “The success of easy-peeler mandarins in particular can be easily credited to the fruit’s great flavor and unbeatable convenience.”

Orri Jaffa mandarin currently is exported to 45 countries worldwide. Most of the yield is exported to Europe (78 percent). The most prominent outlets in Europe of the popular fruit are: France (39 percent), the Netherlands, Scandinavia and Russia (7 percent each). About 18 percent of the fruit is shipped to North America, and 4 percent to Asia Pacific.

The Plant Production and Marketing Board of Israel was established in 2004 to assist farmers in advancing their agricultural missions. The board promotes the Jaffa brand and other registered citrus industry brands. It helps kick-start pioneering R&D projects, executes centralized crop protection initiatives, assists organizations in meeting phytosanitary standards and insures growers against weather-related losses.

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5,000 Containers with Atmosphere Technology are Ordered by Shipping Firm

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A15MSC Mediterranean Shipping Company is expanding its fleet with a huge order of 5,000 refrigerated containers equipped with Carrier Transicold’s XtendFRESH atmosphere control technology.

The XtendFRESH system manages oxygen and carbon dioxide levels within refrigerated containers and removes ethylene, thus slowing the ripening of produce, according to a news release.

The XtendFRESH-equipped containers are being leased through SeaCube Containers LLC.

“By adding atmosphere control for selected perishable cargoes, we are enhancing the care we provide for the valuable commodities we ship for our customers,” Giuseppe Prudente, chief logistics officer, MSC Mediterranean Shipping Company, said in a news release. “XtendFRESH technology enables MSC to transport fruit and other refrigerated cargo over longer distances, creating tremendous new opportunities for exporters and importers.”

The order is the largest for the XtendFRESH option since the system was introduced in 2013. It adds to the growing trend among shipping lines to provide controlled-atmosphere technology for the benefit of their customers, Willy Yeo, director, marketing, Global Container Refrigeration, Carrier Transicold.

“MSC is just one example of the very strong demand we’ve seen for controlled-atmosphere equipment,” SeaCube CEO Robert Sappio said in the release. He said controlled atmosphere is a way for shipping lines to assure their customers that they are carrying their products more safely.

The XtendFRESH system’s patented, self-regenerating activated-carbon scrubber assembly captures carbon dioxide and ethylene, a hormone given off by ripening produce that can accelerate ripening if left unchecked. As perishable cargo consumes oxygen, on-demand fresh-air ventilation automatically maintains the optimum level inside the container.

“The innovative XtendFRESH system allows shipping lines to optimize conditions for specific commodities,” Carrier Transicold’s Yeo said. “It is the only atmosphere control solution with an integrated ethylene removal capability.”

Carrier Transicold is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp.

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