Author Archive

12 Percent Increase Predicted for New Zealand Apples and Pears

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A 12 percent increase in volume for New Zealand Apples and Pears (NZAPI) is forecast this year over the 2022, a rebound from 2023, which suffered significant damage due to Cyclone Gabrielle.

The publication Fuitnet estimates exports will total 21.2 million boxes (18 kg tray equivalent), 382,000 tons. Excellent size, color, eating, and flavor are expected.

Fuitnet also is projecting a higher dry matter content, allowing for better storage of the fruit.

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Sunkist Reporting Good Volume of Citrus for Year Around Supplies

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Sunkist Growers of Valencia, CA is shipping a good volume supply of its year-round conventional and organic citrus in the winter months.  It also is shipping specialty citrus during the winter.

These range from The Pink Orange, to the seedless sweetness and pink cara cara orange variety, blood oranges, and vitamin B9 rich minneola tangelos.

Sunkist also is shipping the more traditional navel oranges, lemons, California mandarins, grapefruit and organics.

Winter is the peak shipping season for Sunkist

This included a strong start to the California desert grapefruit category and increased volume in lemons.

Sunkist is generally recognized as the longest-standing fresh citrus cooperative in the nation.

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The U.S. and U.K. are the Primary Export Markets for Peruvian Mandarin

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During 2023, Peruvian mandarin exports totaled 33,878,377 kilos for a FOB value of US$35,847,910. The figures are relatively similar to the 33,563,070 kilos exported in all of 2022 for US$ 37,235,491, Agraria.pe reports.

According to Agrodata’s report, the United Kingdom was the main destination for these shipments in 2023, with purchases totaling US$ 10,186,000.

It was followed by the United States with US$ 7,286,000, Canada with US$ 5,706,000, the Netherlands with US$ 5,361,000, Japan with US$ 2,873,000, Ireland with US$ 1,316,000, and Spain with US$ 427,000.

Among the main exporting companies were Procesadora Laran SAC with sales of US$ 11,720,939, Consorcio de Productores de Fruta SA with US$ 10,583,378, Procesadora Torre Blanca with US$ 2,027,968, Sterling Perú SAC with US$ 1,751,868, Corporación Frutícola de Chincha SAC with US$ 1,264,521 and Agrícola Las Marías SAC with US$ 1,143,403, among others.

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California Avocado Shipments Expected to Ramp Up in March and April

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The official crop forecast for the California Avocado Commission’s (CAC) fiscal year 2023-24 is 208 million pounds, down from the prior year’s volume of 237 million pounds.

Weather and market conditions will be key factors for when California avocado growers begin harvesting, said the Commission in a release. The potential for a wet winter may encourage some growers to delay picking to allow their avocados time to increase in size, which could in turn increase the crop volume.

“Some very early season harvesting has occurred already and we’re anticipating the volume to ramp up in March and April,” says CAC Vice President of Marketing Terry Splane.

“The recent rain in California avocado growing regions followed by a period of sunny days is excellent for the health of our avocado trees and sizing of the fruit,” says Jason Cole, chairman of the California Avocado Commission Board of Directors. “We are looking forward to the harvest, which has already started in a minor way, to ramp up once fruit sizing and market conditions are favorable.”

The majority of California avocados are shipped West of the Rocky Mountains.

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Potato Shipments Exceed Volume from Last Year in 4 Areas, But Down in Others

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By North American Potato Market News

According to the USDA, January Yellow potato shipments climbed 25.8% above 2023 movement, to a record 819,000 cwt. Strong movement from Idaho, the San Luis Valley, the Red River Valley, Wisconsin, Michigan, and Kern County contributed to January’s Yellow potato sales growth.

January Red potato movement exceeded 2023 shipments by 24,000 cwt, or 4.0%. Increased sales from Kern County, Central Minnesota, the Red River Valley, and the Klamath Basin offset reduced shipments from the Columbia Basin, Idaho, Wisconsin, and Maine.

For all types, (red, yellow and russet), The Red River Valley showed a 12% increase in January 2024 shipments over January 2023.

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U.S. Online Grocery Sales Experience Another Drop

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A decline in the frequency of online grocery orders drove a 1.2% year-over-year drop in total online sales to $95.8 billion in the U.S. online grocery market in 2023, according to the annual results of the Brick Meets Click/Mercatus Grocery Shopper Survey released Thursday, Supermarket News reports. 

It’s the second year in a row that the order frequency of active monthly users (MAUs) declined, according to the report, which surveyed 21,000 shoppers in the U.S. That year-over-year contraction in online orders came in at 6% compared to the prior year, surpassing the 4% year-over-year decline in 2022, the report noted. 

The decline in orders was exacerbated by a 300 basis-point increase to 34% in the number of MAUs who said they made only one online grocery purchase per month in 2023. 

Despite the drop in online orders for the year, the base of MAUs rose 2% year over year. Shoppers appear to have largely settled on a receiving method with 70% saying they exclusively relied on either pickup, delivery, or ship-to-home, up 172 basis points from the previous year. 

Pickup held steady as the most popular way of receiving online orders, growing its share of online sales by a modest 56 basis points to end the year at 46%. The report added that the expanded availability of delivery methods due to increased competition did not appear to help grow the receiving method, which experienced a sales decline of 0.9% for the year and captured 37% of the online sales market. Meanwhile, the ship-to-home method dropped 66 basis points to make up 17% of the market for the year. 

“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click, in a statement. “Despite the challenges, pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotions that aided delivery in 2023.” 

Mass merchandisers and hard discount grocers expanded their shares of the online grocery market in 2023 by 460 basis points to end the year with 45% due to strong MAU growth. The growth came at the expense of the supermarket format, which dropped 390 basis points to 29% for the year, a result of declining MAUs and order frequency. 

Shoppers increasingly chose to place their online purchases through both mass merchandise and supermarket formats for the year as the cross-shopping rate increased by 150 basis points from the previous year. Nearly a third (30%) of shoppers purchased online groceries from both in the same month over the year, the report noted. 

The repeat intent rate – the share of MAUs who are very likely to use the same service again – for the pickup and delivery methods of online purchases declined in 2023 by 63 basis points to 61%, a trend driven solely by a decline in repeat intent for grocery services, which fell 311 basis points to 54%. That’s compared to an increase in repeat intent for mass merchandise shoppers, which grew by 48 basis points to 66%. 

“As Walmart grabs market share through its price leadership and omnichannel strategies, regional grocers find themselves in a precarious position. To remain competitive, they must intensify their efforts in improving customer engagement, offering tailored personalization, and building loyalty. This strategic shift is not just about weathering the storm of price inflation and intense competition, but about thriving in it,” said Mark Fairhurst, global chief growth officer at Mercatus, in a statement. “By providing a shopping experience that is both seamless and highly personalized, grocery retailers can retain their existing customer base and gradually attract a wider audience.” 

Total online grocery spending declined 18 basis points to capture 12.5% of the market for the year. When considering just the pickup and delivery methods – most stores do not offer ship-to-home as a delivery method – the decline was a mere 6 basis points year over year and made up 10.4% of all grocery spending in 2023. 

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Mexican Melon Shipments Increase by 11 Percent

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Mexican melon volumes are growing. Figures from the Mexican Information Service of Agrofood and Fishing (SIAP) indicate that fruit production grew by 11.2% in 2023, compared to the 580,000 tons recorded in 2022. 

Michoacan is the main producing state in the country, accounting for 144,600 tons. 

The U.S. is the main market for Mexican melons with a market value of 25,6 million dollars in 2022. In addition to domestic consumption, Mexican producers export the fruit to Japan, Hong Kong, Cuba, Colombia, Belize, Canada, and the United Arab Emirates. 

Two varieties are marketed in Mexico: Cantaloupe and Valenciano. The latter is larger than the Chinese melon and has a smooth, pale green rind, deep green flesh, and a sweet flavor. 

Mexico ranked as the world’s 12th largest producer, accounting for 1.9% of the international volume.

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International Logistics in the Red Sea

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By Scott Fontes ALC Orlando

International logistics plays a crucial role in facilitating global trade and commerce by connecting businesses across continents. The Red Sea, a key maritime route, is currently experiencing significant disruptions that have led to impacts on international logistics. The ongoing geopolitical tensions in the region, coupled with environmental challenges, are reshaping the landscape of maritime transportation. Shipping times and costs have increased, adding significant delays and costs. Oil and gas prices have jumped following news of attacks, and shipping insurance premiums have nearly doubled for some carriers. Even if attacks stopped today, the effects will take a significant time to resolve.

The Red Sea has become a focal point for tensions and conflicts, influencing the safety and efficiency of shipping lanes. By January 2024, only 200,000 standard containers were passing through the waterway per day, compared with around 450,000 in December 2022. Strategic chokepoints, such as the Bab-el-Mandeb and the Suez Canal, are vital passages for vessels navigating between the Mediterranean and the Indian Ocean. Political instability in the surrounding areas can lead to heightened security concerns, affecting the smooth flow of goods. According to the AP, “The governments of Australia, Bahrain, Canada, Denmark, Germany, Netherlands, New Zealand, and South Korea joined the U.S. and U.K. in issuing a statement saying that while the aim is to de-escalate tensions and restore stability in the Red Sea, the allies won’t hesitate to defend lives and protect commerce in the critical waterway.” Instead of sailing through the Red Sea, ships traveling between Asia and Europe are now being re-routed around Africa and the Cape of Good Hope. Stakeholders in international logistics are closely monitoring these developments to assess potential disruptions to supply chains.

Furthermore, environmental factors like extreme temperatures, strong currents, occasional coral reefs, and weather events pose challenges to maritime operations in the Red Sea. Rising sea levels and changing weather patterns can impact navigation, port infrastructure, and overall logistics efficiency. Companies engaged in international trade must adapt to these environmental shifts, incorporating resilience measures into their logistical strategies.

As the Red Sea continues to play a pivotal role in global trade routes, a comprehensive understanding of both geopolitical and environmental dynamics is essential for the sustainable functioning of international logistics networks. By embracing innovation and responsible practices, we can ensure that the Red Sea remains a vital and sustainable lifeline for international trade in the years to come.

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Scott Fontes began working for the Allen Lund Company in 2023 as an international logistics specialist in the Orlando office. Scott joined the company with years of experience in transportation, most recently as a logistics manager for an OTR transportation company.

scott.fontes@allenlund.com

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Mexico Continues Growth of Watermelon Shipments in 2023

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Mexican watermelon shipments hit 1.199 million tons at the end of November 2023, exceeding the annual totals for 2021 and 2022.

If this upward trend continues, it could be among the top 10 producing countries, according to Mexico’s Ministry of Agriculture and Rural Development.

The U.S. is the largest importer, showing the quality reputation obtained in terms of quality, health and safety, coupled with the effort and commitment of the producers, the ministry said.

Data from the Agri-Food and Fisheries Information Service (SIAP) indicate that the volume of the penultimate month of last year represents an increase of 0.4 and 1.8 percent compared to the 1.194 million tons and 1.177 million tons reported in 2021 and 2022, respectively.

Sonora was the largest producing state – of the 27 that cultivate the fruit – contributing 373,084 tons from January to November 2023.

Chihuahua follows, with 143,229 tons; then Jalisco, 102,795 tons; Veracruz, 94,096 tons; and Campeche, with 80,058 tons, the latter entity went from ninth position in 2022, with 36,985 tons, to fifth place.

On the other hand, the ministry indicated that the participation of watermelon amounts to 4.7 percent in national production and annual per capita consumption in the country is 3.5 kilograms.

The above because – according to specialists – watermelon is one of the healthiest fruits as it has water that makes it ideal against dehydration and is very refreshing in hot weather, it has vitamins A, B and C and helps strengthen the immune system.

The federal agency pointed out that, in addition, the greater volume of watermelon has allowed volumes exceeding 700,000 tons per year to be allocated abroad, where the United States is the largest importer, with an amount of $153 million in 2022.

Japan, Canada, Belize, Cuba, Colombia, and the UAE are also among the destination countries for Mexican watermelon, a fruit that belongs to the cucurbit family and is characterized by its red pulp and sweet flavor, he explained.

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Increase in Chilean Stone Fruit Exports Forecast this Season

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The Frutas de Chile Stone Fruit Committee has released a new estimate for this season, including Nectarines, Japanese Plums, European Plums, and Peaches. Forty-four companies, representing 84% of Chile’s global stone fruit exports last season, contributed to the estimate.

The stone fruit industry projects total overall exports of 35,330,388 boxes, a 15% increase over last season.  Estimates for specific categories are as follows:

Nectarines

  • 11.5 million 8 kg boxes; 13% growth from last season.
  • Strong growth in white-flesh nectarines; projected increase of 26%, representing 60% of total nectarine volume.
  • Yellow-flesh nectarine volume expected to decline by two percent, reaching 40% of total nectarine volume.

Japanese Plums

  • 13 million 7 kg equivalent boxes; 16% growth from last season.
  • Red plums are expected to grow by seven percent and black plums by fifteen percent.

European Plums – Sugar Plums – D’Agen (exported primarily to Asia):

  • 8 million 9 kg boxes; 23% growth from last season.

Peaches

  • 2.8 million 8 kg boxes, a decrease of one percent compared to last season.

The Stone Fruit Committee just launched a retail-focused marketing campaign in the U.S., working with retailers nationwide to drive sales of nectarines and plums.  Comments Karen Brux, North America Managing Director of Frutas de Chile, “There are significant opportunities for retailers to build winter stone fruit sales.  We’re developing in-store radio ads, demo programs, digital coupons, online videos, and other tactics to showcase nectarines and plums’ great flavor and nutrition.” Promotions are ongoing and will continue into April.

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