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Colorado’s San Luis Valley Potato Shipments Look Similar to a Year Ago

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DSCN0869With good growing weather, Colorado’s San Luis Valley potato industry is expecting good shipments with volume repeating that of a year ago.

The valley has around 52,000 acres of potatoes planted for this season.  There has been an increase in organic potato acreage.

Farm Fresh Direct of Monte Vista, CO reports solid growing conditions this season with decent weather to produce potatoes.  While the volume on conventional potato shipments is about the same, the company reports organic volume should see a slight increase.  It began digging russet potatoes the week of August 27, which followed the new crop of organic reds and yellows the week of August 20th.

A similar report came from Rocky Farms of Center, CO, which described the past summer as being ideal for growing potatoes.

Rocky Farms began shipping a limited amount of spuds the week of September 3rd and began loading in larger volumes October 1st, on a similar schedule with previous years.

At Skyline Potato Co. of Center, CO, also had a normal start to the season with fields producing good quality potatoes.

While San Luis Valley potato growers most often mention water as the primary issue (could use more), there also were concerns over increasing freight rates and labor issues.  Freight rates were expected to continue increasing as the holidays approach.  Colorado implemented minimum wage increases that continue through 2020.

Truck shortages were cited as a common problem and no one was expecting any decline in freight rates.  With a roaring economy, labor was not expected to get any better.  As a result, the industry continues to look more to automation.

Idaho continues to lead the nation in potato shipments with over 40 percent of the total volume.  Colorado potato shipments rank second, while Wisconsin ranks third.  In fourth place is the Red River Valley of North Dakota and Minnesota.

Colorado potatoes – grossing about $3400 to Atlanta.

 

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Updates on 2 Potato and Onion Shippers in Idaho and Oregon

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A348Potato shipper Eagle Eye Produce, headquartered in Idaho Falls, ID, is loading potatoes out of Mattawa, WA, and Pioche, NV, with farming operations at each location with production and shipping facilities on each farm….Meanwhile Oregon onion shipper River Point Farms is shipping onions year around.

Eagle Eye Produce has found the Nevada growing area offers ideal growing for potatoes due to isolation and dry climate.  This reduces disease issues which often hinders other growing regions.   The company has a climate-controlled storage on site, providing it with the ability to ship potatoes starting in September and going through May.

In Mattawa, the Eagle Eye facility will provide about 2,500 truck loads of product available for shipment with a high percentage of No. 1’, which means excellent quality that is shipped to foodservice customers.

Eagle Eye started its new crop potato shipments on August 1st and will continue shipping through next July, which means it has potatoes year-round.

Eagle Eye Produce reports trucking and transportation issues remains one of the biggest challenges with the company and the produce industry.

This is resulting in Eagle Eye searching for alternate means of transportation for shipping product ranging from rail, to cold connect, and intermodal.  There operation also has its own logistic department with a fleet of trucks that helps reduces the challenges it faces with transportation.

River Point Farms

River Point Farms, based in Hermiston, OR, is a vertically integrated, source-based onion supplier shipping whole skin-on, whole peel and cut onions to market 52 weeks per year.

The company is one of the largest onion shippers in the United States growing between 400 to 500 million pounds of onions annually.  The firm has yellow, red, sweet yellow, sweet red, white and organic yellows on its farms in the Columbia Basin.  River Point has a state-of-the-art packing and storage facilities allowing it to grow, store, pack and process quality onions year-round.

River Point Farms started its new crop of onion shipments in late June.

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Removing the Bottom 10% of Company Employees

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img_6361By Larry Oscar

With beer in hand a friend of mine asked our eclectic group of old fogies one afternoon about the business practice of removing the company employees that are on the bottom 10 percent of company performers on an annual basis.

This is a common practice in business. One of one of the best CEOs in history, Jack Welch of GE, discusses this in his book Straight From the Gut. It may seem like a cruel thing to do to the bottom company performers, but in reality it is a must. For one thing it is not fair to the other 90 percent by making them carry the poor performance of those in the bottom 10 percent. And upon a close examination good business management requires you face the reality of the situation. It was W.E. Deming, the father of the quality movement in the 1970s -1990s that said that all workers want to do a good job. With that in mind a good manager needs to ask the question “What causes the bottom 10 percent to fail in their job performance?”

Nobody wants to be a drag on the other employees in the company. It is demeaning to your self esteem. So what is the problem? The answers to that question are as varied as the personalities of the people. Many are simply not in a job that gives them enough satisfaction to perform well. Some have been put into jobs that they do not have the education, skills, or talent to accomplish. They may have taken the job because it pays well, or they may have assumed it was going to be more satisfying than it turned out to be. This is not a new problem.

The grass is always greener on the other side of the fence. In the early 1970s I was working in outside sales for The Foxboro Company. The company manufactured instrumentation and control systems for the process industries. They were a leader in quality products and the technology of the time. Shortly after I joined the company one of our other employees in outside sales left for a position closer to his home. Our office manager hired a young engineer from Sun Pipeline Company to fill the vacancy. Buddy was a good engineer and had always wanted to see what outside sales was like. It was a job that attracted him. After all it came with a company car, an expense account, and you were not tied to a desk all day. All in all this was a well paying attractive position. What more could you want?

Well Buddy lasted a little over a year before he returned to Sun Pipeline. He told me that at Sun Pipeline he could leave his desk and go home to his family. The outside sales job here was a 24/7 business. Even when he was at home his mind was constantly thinking about the job. His performance reflected the stress of the job. It wasn’t that Buddy could not do the work. It was that the work required a sacrifice that Buddy didn’t want to make. And not many people can fit into this type of job. It can be a home wrecker.

Buddy became a Vice President for Sun Pipeline and today he has his own consulting business. He has had a fruitful and successful career. Hats off to Buddy. He possessed the ability to recognize that he was not cut out for outside sales and took appropriate steps to rectify the situation.  This brings us back to the problem of the bottom 10 percent. You see, many people are not as smart as Buddy. They continue in a position they will never succeed in. They need a push. Companies are not government social programs or government agencies that let people become zombies in their work. This is one of the reasons why our government agencies have so many problems in performing.

Company managers are not doing the bottom 10 percent any favors by tolerating poor performance. The best thing a good manger can do is face the reality of the situation and let them move on. They may not realize it at the time, but the absolute worst thing you can do to an employee is allow them to stay in a position that they cannot perform in. The same goes for people who own their own businesses. They start a business and soon become trapped in the situation after they discover that the business they thought was going to be great simply is not.

Your work should be satisfying to your soul. You should have a sense of accomplishment when all is said and done. If not, make a change. It is better to have tried and failed than not to have tried at all. And just because you fail at something does not mean you will fail at everything. Many times you can learn from failures better than successes. Humans are adaptable. The risk of failure is a fact of life, but it should not be a roadblock to our Constitutional right to pursue happiness.

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Hauling Opportunities for Fall Tropical Fruit Looks Good

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DSCN0858Some tropical fruit crops have been plagued by weather at the beginning of this year’s hurricane season in some growing regions, while the lasting effects of the 2017 hurricane season continues to be felt in Florida.

Despite these issues, adequate tropical fruit shipments should continue through the fall.

Mangoes

Entering the last several weeks of the Mexican mango shipping season, 64 million boxes had been shipped through July. A total of 83.6 million boxes is projected for the season, about 2 million more boxes than last year.

Kent and keitt are the two predominant varieties coming from the northern states of Mexico for the remainder of the season.  This fall, the transition to off shore mangoes from Brazil, Ecuador and Peru occur with tommy atkins and ataulfo/honey mangoes from Brazil and Ecuador and kents from Peru.

The first shipments of Brazilian mangoes arrived in mid- to late August, followed by Ecuadoran fruit in the last half of September.

Avocados

Florida avocado production is still seeing the fallout from Hurricane Irma about a year ago.

Unity Groves Corp.,  of Homestead, FL ships green-skin avocados, and is facing a rebuilding years resulting from the hurricane. Volume was slashed by 50 percent when normal shipments would be about 200,000 bushels.  Still, avocado shipments by the company will continue through January.

Limes

Veracruz in Mexico’s prime growing region for limes, but production has been limited due to rains.

Amazon Produce Network reports there were some harvesting issues due to weather affecting crossings from Mexico into South Texas, but this has improved.

Unity Groves Corp has noted its Florida lime shipments will be about 50 percent less this year due to Hurricane Irma a year ago.

Others

World Variety Produce of Los Angeles notes there should be normal shipments of other tropical fruits.  Jackfruit got underway in the last half of September and will be available through the fall.  Yellow Dragon from Ecuador is now in normal supply.  Good volumes with white and red dragon fruit out of Vietnam is expected, while red flesh dragon fruits is typically more limited.

It remains to be see whether passion fruit shipments from California will be hurt by hot weather during the growing season.

Taiwan’s starfruit season was launched at the end of September.

Thomas Fresh  of Calgary, Alberta sees high volumes of dragon fruit, pummelo, star fruit and cracked coconut.

HLB Specialties of Pompano Beach, FL handled its first Mexican organic formosa papayas in mid-September.  Brazilian golden papaya imports improved in September.  Additionally, imports of Guatemalan rambutan season will continue until mid-November, and Honduras got underway in early September with good production.

Yellow dragon fruit from Ecuador stared in early September.

 

 

 

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Imperfect Fruit is As Good As Grade 1 Avocados At Index Fresh

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bA30y Index Fresh

Riverside, C.A. — California-based avocado marketer, Index Fresh is talking about imperfect fruit, those less than perfect avocados. The ‘So Good – Grade 2 Avocado’ brand has a few blemishes on the outside, but taste just as good as a Grade 1 avocado.

There are a lot of reasons why an avocado may be deemed ‘imperfect’ and marked as Grade 2 fruit. An avocado with sun damage or other scarring on its skin doesn’t always mean blemishes or brown spots on the inside.

“The inside of an imperfect avocado will be the same as the inside of a fruit you buy at the grocery store,” said Bailey Diioia, Ventura Field Representative for Index Fresh.

For Index Fresh, Grade 2 avocados are as precious as any other. So, these are marketed to the food service sector keeping in mind that what’s on the inside matters the most. After the bins from the fields arrive at an Index Fresh facility, the team sorts through them and hand-grades the avocados before packing them up for customers.

The avocado company partnered with Vevian Vozmediano (@VevianVoz), Personal Chef and Lifestyle Coach, for easy and delicious recipes using the ‘less than perfect’ fruit. “Imperfect fruit is actually perfect for so many recipes and the mango salad with avocado dressing is an excellent example of how we can use these avocados,” she said.

About Index Fresh

Index Fresh is a worldwide marketer of avocados, sourcing from all major growing regions around the globe, including California, Mexico, Peru, and Chile. Through its dedication to quality, consistency, and innovation, Index Fresh continues to be a leader in the industry.

Headquartered in California, the company has facilities spread across Texas, Pennsylvania, Iowa, Ohio, Colorado, and Illinois. Early this year, Index Fresh also started operations at its new packing, bagging, and ripening facility in Pharr, TX.

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Wish Farms Closes On Property For New Headquarters

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A29By Wish Farms

Plant City, FL – Family-owned, international berry supplier Wish Farms, will be breaking ground on its new, state-of-the-art headquarters. The Plant City property is a prime location next to Interstate 4 situated on Frontage Road, west of Park Road.

“Visibility was a major factor in the selection of the site, as that falls in line with the strategic vision for our brand,” said Wish Farms owner Gary Wishnatzki. According to the Florida Department of Transportation, approximately 115,000 vehicles travel along the stretch of highway every day. “We want to carry on the nearly 100-year old tradition between our company and this community, so I’m extremely pleased that we are staying in Plant City.”

Wish Farms’ recognizable consumer brand has seen a significant spike in popularity since it rebranded in 2010. Gaining traction with berry shoppers across the country, the move comes at good time for the company. Wish Farms’ Chief Operating Officer J.C. Clinard: “Space has been an issue for us during this growth period. The move is going to drastically increase our efficiency and scalability, while positively impacting the local economy.”

The Beck Group will be overseeing the construction on the 36-acre site, as well as the design-build of the 20,000-square foot, three-story office building. RCS Company of Tampa is tasked with constructing the 138,000-square foot warehouse. It will include blueberry and strawberry processing, pre-cooling, materials storage, and cooler space.

Keeping the company’s logo in mind, a “pixie theme” will be front and center. Beck’s team has been working closely with “Head Pixie”, Wishnatzki. He wants the new space to be unique. “We have a lot of fun and unexpected things planned; this is going to be a special place.” The new design, which incorporates the latest environmentally responsible and sustainable methods, will include a large solar array. “I see our new campus as a retention and recruiting tool for top talent, but I’m really excited that our new home is going to reflect our fun, family-friendly brand.”

The plan also calls for a treehouse conference space, being designed and built by James “B’fer” Roth, from DIY Network’s The Treehouse Guys. An adult-sized indoor slide and a large rooftop deck will be prominent features. The land contains a four-acre lake and a spring, which will be preserved to highlight the property’s natural beauty. A new organic blueberry farm will be planted to add to the company’s current offerings.

Joe Kuhn, the seller, was the third-generation of his family to possess the land. His grandfather, Andras, acquired it in 1929 as payment for a pre-depression loan. Coincidentally, both Wishnatzki and Kuhn’s grandfathers immigrated to the United States within a year of each other. “I’m very happy that the property is going to stay in the agriculture sector and with a company that has a special bond with the area. This is truly the best-case scenario for all,” said Kuhn.

Proceeds from the sale are going into the Kuhn Family’s charitable trust that will share funds with the community. Ribbon cutting is planned in the winter of 2019.

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About Wish Farms:

Wish Farms, founded in 1922 and third-generation owned, is a year-round supplier of strawberries, blueberries, blackberries and raspberries growing both conventional and organic varieties.

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Produce Associations are Pleased with Trade Agreement between U.S., Mexico, Canada

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A33by Produce Marketing Association

Newark, Del. – Richard Owen, the vice president of Global Membership & Engagement of the Produce Marketing Association, issued the following statement regarding the conclusion of negotiations between the United States, Canada and Mexico to update the free trade agreement among the three countries:

“The members of the Produce Marketing Association are pleased that negotiators have concluded discussions on an updated United States-Mexico-Canada Agreement (USMCA) on trade.  A single agreement is the best way to address the extensive relationships and investments in produce and floral production and sales that have developed in North America. This agreement is consistent with our overarching goals of free and fair trade and we hope that the new agreement will be quickly ratified by all three countries.

We are encouraged by the certainty that this new agreement provides to companies doing business in North America. The 6-year review and 16-year duration of the agreement give confidence for future investment to further build and expand trade among the countries as our members work to supply consumers’ expectations of a vast range of fresh produce and floral products year-round. Some of our members sought provisions on seasonal products not included in the final agreement, and we appreciate commitments from negotiators to continue to examine opportunities to address their concerns.”

About Produce Marketing Association

Produce Marketing Association (PMA) is the leading trade association representing companies from every segment of the global produce and floral supply chain. PMA helps members grow by providing connections that expand business opportunities and increase sales and consumption.

By United Fresh Produce Association

“United Fresh is encouraged by the news that a revised tri-lateral agreement has been reached between the United Stated, Mexico and Canada.  The strong relationships our members have established between these three countries have helped enable the growth of the fresh produce industry over the last quarter century. Coming on the heels of United Fresh’s annual Washington Conference and the inaugural Global Trade Forum in which this issue was front, and center and where attendees heard directly from key U.S. negotiators, the announcement of this revised agreement highlights the importance of our continued engagement on key policy issues by those in the produce industry. United Fresh looks forward to working with Congress to achieve the swift approval of this new agreement.”

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Cranberry Shipping Report as USDA Takes Action to Prop Up Prices

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DSCN0857Fresh cranberry packing and shipping started the week of September 17th from Central Wisconsin for the Cranberry Network LLC, which markets fruit grown by Habelman Bros. Co. of Tomah, WI.  Wisconsin cranberry shipments are expected improve this season, although it will not be a bumper crop.  The 2017 season was off from normal shipments.

Cranberry shipments for the fresh market got underway the week of September 24th in very light volume from bogs in Massachusetts, Wisconsin, Quebec, Washington, and British Columbia by Ocean Spray and Oppy.  Organics produced in Quebec will begin shipping next week.

Only about 5 percent of cranberries are harvested and shipped for the fresh market, with the remaining 95 percent of cranberry volume going to the processors.  The majority of cranberries are harvested during October.

Today is the Canadian Thanksgiving and U.S. shipments have received a bump to provide for that demand.  Thanksgiving in the U.S. is November 22nd and cranberry shipments will increase in the weeks leading up to that holiday.

Wisconsin continues to be the leading producer and shipper of cranberries.

While fresh cranberries are grown in Canada, Chile, Mexico, Massachusetts, Michigan, New Jersey, Oregon and Washington, Wisconsin shipped by far the most fresh cranberries of any state or country, according to the USDA.

Wisconsin accounted for 13.83 million pounds of conventional fruit in 2017, down from 14.2 million pounds in 2016.

Wisconsin shipped about 70,000 pounds of organic fruit in 2017.

  • The second largest producer and shipper of fresh cranberries in 2017 was Massachusetts, which the USDA reported shipped 4.21 million pounds, up from 3.84 million pounds in 2016.
  • Washington fresh cranberry shipments in 2017 were 2.2 million pounds, up from 1.87 million pounds in 2016.
  • 2017 U.S. imports of Canadian cranberries, according to the USDA, were 2.67 million pounds.
  • The USDA reported that Michigan fresh shipments of cranberries in 2017 totaled 340,000 pounds, down from 420,000 pounds in 2016.
  • New Jersey fresh shipments in 2017 were 90,000 pounds, down from 170,000 pounds in 2016.
  • Mexico and Chile shipped light volume of fresh cranberries to the U.S. in 2017.

Cranberry Overproduction

Over a year ago a group representing growers known as the Cranberry Marketing Committee sought approval from the USDA to issue a rule limiting what growers can sell in 2018-19 in an effort to prop up prices.  It was recently approved by the USDA.

The rule permits growers to sell only 75 percent of their historical sales volume, with the balance of the crop donated to food banks or other charities, used as a soil amendment, used to expand under-developed foreign markets, or otherwise disposed.

“With volume regulation, returns are expected to be higher than without volume regulation,” the USDA said recently. “This increase is beneficial to all growers and handlers regardless of size, and enhances total revenues in comparison to no volume regulation.”

The USDA said establishing an allotment percentage allows the industry to help stabilize supplies. The regulation could remove a potential 2 million barrels from supply, reduce industry inventory, and increase industry returns.

The marketing order volume control regulation, issued Sept. 12, applies to cranberry growers in Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington, and Long Island in the state of New York.

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National Outlook for Sweet Potato Shipments Gets Cloudy Following Hurricane Florence

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DSCN0837News has been sketchy so far, but The North Carolina Department of Agriculture and consumer estimates Hurricane Florence inflicted over $1.1 billion in damage to crops and livestock in North Carolina.  Of that, about $27 million is damage to sweet potatoes, other vegetables and horticultural crop losses.  North Carolina ships more sweet potatoes annually than all of producing states combined.

The numbers easily top the $400 million seen following Hurricane Matthew in 2016.

“We knew the losses would be significant because it was harvest time for so many of our major crops and the storm hit our top six agricultural counties especially hard,” Agriculture Commissioner Steve Troxler said in the release. “These early estimates show just what a devastating and staggering blow this hurricane leveled at our agriculture industry.”

According to the state’s agricultural department:

  • Row crop losses are estimated at $986.6 million
  • Forestry losses are estimated at $69.6 million
  • Green industry losses are estimated at $30 million
  • Vegetable and horticulture crop losses are estimated at $26.8 million
  • Livestock, poultry and aquaculture losses are estimated at $23.1 million
  • Livestock losses are 4.1 million poultry and an estimate of 5,500 hogs.

The state did not make damage estimates by individual commodities.

Sweet potato growers and shippers report it could be months before the full extent of losses may be determined.  Sweet potato harvest in the state continued September 27th after Florence, with more than half of the crop remaining in the field.

Prior to the massive Hurricane and flooding, Nash Produce LLC of Nashville, NC expected sweet potato acreage to be down.

Southern sweet potato shipments has been declining in recent years primarily due to overproduction and poor markets.

U.S. sweet potato acreage in 2017 was down 2.45 percent compared to 2016, although yield per acre increased 16 percent.  No official estimate has been made for acreage or volume for 2018.

J Roland Wood Produce Co. of Benson, NC expects a 10 percent reduction in yields this year as a result of a decrease in acreage after last year, plus several weeks of dry weather before Florence.  The company had a 20 percent cut in yields from last year, totaling a 30 percent reduction in yield rate from 2017.

Ham Produce Co. Inc. of Snow Hill, NC had been harvesting a few weeks when Florence hit.  SMP Southeast/Edmonson Farms of Vardaman, MS started harvesting in the last half of August. While quality was described as having very good quality, volume still wasn’t expected to equal last year.  However, total shipments by the company were expected to be adequate to fill customer demand.

Bland Farms of Glennville, GA was expecting the company’s volume to be similar to last year.

 

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Red Delicious Apple after Decades May Lose Number One Ranking

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A12Red delicious apples most likely will lose its Number one ranking in the U.S. after being the most popular apple for decades.  It is expected to be replaced by the gala variety.

Final tabulations will not be available until the fall’s harvest is complete.  However, the U.S. Apple Association reported last summer at its Annual Crop Outlook and Marketing Conference in Chicago, pre-season estimates point to the change, ending an era that began more than half a century ago.

Other apple varieties making up the largest crops are granny smith, fuji and Honeycrisp, according to a news release.

U.S. Apple Association’s annual Production and Utilization Analysis puts gala production for the upcoming season at 52.43 million 42-pound cartons (up from 49.57 million cartons). Red delicious is forecast to drop from 57.91 million to 51.69 million cartons.

“The rise in production of newer varieties of apples aimed at the fresh consumption domestic market has caused demand for red delicious to decline,” Mark Seetin, director of regulatory and industry affairs, said in the release. “However, red delicious is important in the export market, where it makes up roughly half of our apple exports.”

That includes important markets like Mexico and China, where U.S. apple exports now face higher tariffs in response to Trump administration tariffs on steel, aluminum and other products from those countries sent to the U.S. How exports of red delicious and other apples will fare in the coming season remains to be seen.

The pre-season top-five ranking is notable for another change: golden delicious has ceded its position to relative newcomer Honeycrisp. In a testament to how the old guard of popular apple varieties is quickly changing, Seetin said Honeycrisp production and sales trends put it within striking distance of the third-largest variety crop within two years. Honeycrisp production was 19.32 million cartons for the 2017-18 marketing year, and numbers from the Outlook conference put this year’s production at 23.57 million cartons.

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