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Apple Shipments to be Near Last Season’s Volume; Frontera Produce Celebrates 25 Years

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A95Plenty of loading opportunities for apples will be available this season as another large crop is predicted for the new season just getting underway….Meanwhile Frontera Produce Ltd. is celebrating a quarter century of shipping.

Apple shipments for the U.S.  2018-19 season are estimated at 11.5 billion pounds, up less than 1 percent compared with last year.

In its August 10 apple crop report, the USDA forecast Washington state apple shipments at 7.2 billion pounds, down 4 percent from 7.5 billion pounds a year ago.

“In Washington, apple harvest is expected to be of average quality this year,” according to the USDA. “There are some concerns about the hot weather that the crop has been facing so far this year, but producers are prepared to protect the crop from sun damage and have enough water to keep the crop irrigated.”

The USDA reported some New York growers had frost damage during bloom in isolated areas of the state.  New York production was rated at 1.3 billion pounds, unchanged from a year ago.

Meanwhile, the USDA said a large crop with good sizing is anticipated by growers in Michigan, with forecast production of 1.175 billion pounds, up 40 percent from 840 million pounds in 2017.

A small crop last year led to a heavy bloom this spring in most Michigan growing regions.

State apple forecasts for this season, in millions of pounds (and last year’s production):
California — 225 (260)
Michigan — 1,175 (840)
New York — 1,300 (same)
North Carolina — 100 (115)
Oregon — 175 (155)
Pennsylvania — 528 (504)
Virginia — 225 (220)
Washington — 7,500 (7,200)
West Virginia — 102 (110)
United States — 11,406 (11,452)

Fronteria Produce

Frontera Produce Ltd. of Edinburg, Texas, is celebrating its 25th anniversary this year as the company continues to add more products to its lineup.

The shipper recently partnered with Continental Fresh LLC, Miami, to offer year-round supplies of mangoes and limes.  The new partnership adds to Frontera’s Mexican and Peruvian grower relationships by bringing in product from Brazil and Ecuador.

“Moving into the next 25 years, Frontera will continue to advance our business by leaning on our core principle values of integrity, transparency, and excellent communication, that have taken us this far,” says Amy Gates, Vice President of Frontera Produce.

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American-Grown Pistachio Consumption Increases Globally

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pistachioby American Pistachio Growers

FRESNO, Calif. — American-grown pistachio consumption numbers are up globally and have increased substantially in international markets between 2015 and 2017.  This is according to a report released recently by California State University, Fresno (CSUF) Department of Agricultural Business, Jordan College of Agricultural Sciences and Technology.

The trend is welcomed by nutrition experts who tout the virtues of pistachios for their health properties. According to nutrition expert Mike Roussell, Ph.D., “Pistachios are the perfect addition to any eating plan for health-minded individuals as they offer a number of health benefits which result from their strong nutritional values, key amino acids, healthy fats, minerals like magnesium, and dietary fiber.”

The United States remains the largest producer of pistachios in the world with approximately 99 percent grown in California, where climate and precision agricultural practices produce high quality nuts. Paired with the fact that approximately 70 percent of pistachios grown in the U.S. are exported, this data shows how popular the nut is worldwide.

This increase in demand is likely due to global health trends and a growing body of scientific research that ties pistachios to a wide range of benefits, including weight management, blood sugar control and a lower risk of cardiovascular disease.

“We’re finding that not only is overall consumption of U.S. pistachios increasing, but consumers are also broadening their consumption timeframe,” said American Pistachio Growers (APG) Vice President of Global Marketing Judy Hirigoyen. “While nuts have traditionally been consumed during winter months and holidays, we’re seeing increases during spring and summer months as consumers learn about the health attributes pistachios have for athletic individuals and weight management.”

For this study, trends were reviewed in China, South Korea, Germany, France, Italy, Spain and the United Kingdom – seven nations considered to be primary trade partners for U.S. pistachios. Additionally, the study includes India as an important emerging market. For the report, CSUF researchers used data for total pounds of pistachios traded across borders accessed from the Global Trade Atlas (GTA).

Global Pistachio Consumption

Germany has no in-country pistachio production, but has seen 84.2 percent growth in consumption over a three-year period. The U.S. share of market in 2017 was 45.4 percent, up 16.1 percent since 2015.

Spain has new plantings of pistachios, most of which will come into production within the next two to three years. There has been a consumption increase of 29.8 percent since 2015. U.S. share of market in 2017 was 31.7 percent, an increase of 31.6 percent since 2015.

Italy produces the Bronte pistachio, prized for its dark green color. Consumption of in-shell pistachios over the past three years has risen 41.2 percent. U.S. share of market in 2017 was 31 percent, an increase of 41.2 percent over 2015.

France produces no pistachios, and has seen a 20.1 percent consumption increase over the past three years. U.S. share of market in 2017 was 42.6 percent, which is 1.7 percent lower than 2015 share, although overall volume for U.S. product is up.

United Kingdom produces no pistachios. Since 2015, there has been a 34.4 percent decline in overall pistachio consumption. However, the U.S. gained 219.6 percent share of market in 2017, with a share of 68.6 percent, thus more than doubling consumption of American pistachios.

South Korea has no pistachio production. There has been a 47.2 percent increase of pistachio consumption since 2015. The U.S. has maintained nearly 100 percent share of market in South Korea.

India’s pistachio market is dominated by Iran and other Middle Eastern countries, which have conducted pistachio trade with India for hundreds of years. However, the U.S. pistachio industry has seen its market share grow 146.7 percent over the past year. Overall consumption of the nut has increased by 49.6 percent over the past three years.

China has nominal pistachio production and is, by far, the largest consuming nation of pistachios. There has been an increase of 182.4 percent in consumption over the past three years. The U.S. share of the market totaled 96.6 percent in 2017, a 74 percent increase over three years.

About American Pistachio Growers

American Pistachio Growers is a trade association representing more than 800 members who are pistachio growers, processors and industry partners in California, Arizona and New Mexico. For more information, visit AmericanPistachios.org.

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Washington High Volume Apple Shipments are Seen; SweeTango Facing1st Season of Good Volume

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DSCN0850by The Washington State Tree Fruit Association

Yakima, WA –The Washington State Tree Fruit Association (WSTFA) released its forecast for the 2018 Washington apple shipments.

The 2018 forecast is for a fresh pack crop of 131 million standard 40-pound boxes of fresh apples. This is down two percent from 2017’s 134 million box crop.

Harvest has started for some early varieties.

Gala is projected to be the most numerous variety in 2018 at 24 percent of production, with Red Delicious at a projected 21.5 percent. These varieties are followed by Fuji at 13.5 percent and Granny Smith at 13 percent of total production. This year Honeycrisp is forecast to come in at 10.8 percent of the total crop and Cripps Pink at 4.5 percent.

Organic apple production continues to increase, and is forecast to be 14 percent of the total, or 18.9 million boxes.

This forecast is based on a survey of WSTFA members, and represents a best estimate of the total volume of apples that will be eventually  shipped for the fresh market (excluding product sent to processor).  Apple harvest typically begins in August and continues into November, and as a result this forecast is still subject to several months of variable weather which can affect the final harvest total.

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SweeTango Apple Shipments

SweeTango growers and marketing desks anticipate an abundant crop of SweeTango apples this season.

Fowler Farms of Wolcott, NY is expecting good yields for the North American crop with excellent quality, good color, and smooth finish.  The company notes that organic SweeTango from Washington state is projected to reach significant volumes for the first time.

Stemilt Growers LLC of Wenatchee, WA just recently started harvest and the Midwest and East regions will start shipping in time for Labor Day arrivals.

Nielsen retail scan data indicates that SweeTango shines in the early season, as it is one of the first premium varieties to become available in the fall. During its peak season from September to November 2017, SweeTango was the best-selling club variety while also ranking among the top 10 category-wide.

 

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USDA Report Says Higher Produce Trucking Rates May Lead to Closer Look at Rails

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A349Following a number of years where intermodal and rail shipments of fresh produce have been down, some observers think volume will be increasing at the expense of trucking.

Rising fuel prices and increasing truck rates should make refrigerated shipments by intermodal and rail more competitive, according to a new USDA report.

The first quarter 2018 edition of the USDA’s Agricultural Refrigerated Truck Quarterly, issued in July, reported 2017 investments in refrigerated facilities and technology have increased the long-haul capacity for shipping fresh fruits and vegetables by intermodal and rail.

“Furthermore, increasing fuel costs and a driver shortage for trucks may further increase demand for shipping fresh produce by intermodal and rail,” the publication said.

Rising fuel rates figure to make intermodal and rail more competitive. Diesel prices rose from $2.47 per gallon at the end of 2016 to $2.87 per gallon by the end of 2017. On July 23, the U.S. Energy Information Administration reported the average price for a gallon of on-highway diesel in the U.S. was $3.22 a gallon.

The publication cited Tiger Cool Express who feels rising diesel prices make trucks a less competitive option to intermodal and rail since diesel fuel makes up a higher percentage of the variable costs associated with truck operating costs.

Diesel fuel averaged close to $4 per gallon in 2012, the USDA said, which was the peak year for shipments by intermodal and rail.

Later fuel price declines led to decline in intermodal and rail shipments of fruits and vegetables.

Now rising fuel prices could be good news for intermodal and rail, the USDA said.

In addition, strong economic growth in 2017 increased demand for shipments by truck, putting upward pressure on truck rates while decreasing capacity.

2017 availability ranged from adequate to shortage conditions, which potentially will cause some shippers to consider seeking shipments of fresh produce via intermodal or rail, the USDA said.

The USDA said that since 2012, the overall trend for intermodal and rail shipments of fresh fruit and vegetables has been decreasing for shipments originating in California and the Pacific Northwest, registering a 42 percent decrease between 2012 and 2017.

Combined rail and intermodal shipments decreased from 1.6 million tons in 2012 to 937,265 tons in 2017. Between 2016 and 2017, rail shipments decreased 22,055 tons and intermodal shipments decreased 3,230 tons.

The report said the 2014 demise of Cold Train — a major provider of refrigerated railcar service through its partnership with BNSF Railway — cut the availability of intermodal and rail service for fresh produce.

Still, the USDA said the January 2017 announcement by Union Pacific that it had acquired Railex LLC’s refrigerated railcar and cold storage distribution facilities in Delano, CA, Wallula, WA, and Rotterdam, N.Y. could signal more volume for that service.

The report noted that Union Pacific said it would increase the frequency from 3 to 5 days per week for Cold Connect on east-bound departures from California and Washington.

In 2017, the USDA reported intermodal shipments of iceberg and romaine lettuce increased from the previous year. Reported shipments increased 24 percent (10,125 tons) for iceberg lettuce and 28 percent (7,280) for romaine lettuce. On the other hand, shipments of lemons decreased 50 percent (112,230 tons).

Reported rail shipments increased 5 percent (8,925 tons) for potatoes in 2017.

While trucks will always be the most economical option for some shippers, the report said improvements in the refrigerated supply chain for intermodal and rail could make it a more attractive option, particularly for long-haul routes.

“Even if shipments by rail typically take several days longer than by truck, shippers may be willing to trade time for capacity and lower costs if the truck capacity crunch and rising diesel prices persist,” according to the report.

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Washington, Oregon, Idaho Onion Shipments Should be Strong This Season

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DSCN0843Washington onion shippers have accounted in recent years for over 20 percent of the nation’s onion loads, and this season should continue that trend.  As a result, the Northwest onion shipping outlook, which also includes Oregon and Idaho, is strong for the upcoming season.  Acreage planted is similar this season and volume is expected to be in line with recent years.

In other words a pretty normal season for yields and size profile is seen for Idaho-eastern Oregon onions.

Washington planted onion acreage in 2017 was about 24,000 acres, down from 25,000 acres in 2016, according to the U.S. Department of Agriculture.

Total Oregon planted onion acreage in 2017 was 19,900 acres, up from 19,100 acres the previous season.

Idaho planted acreage in 2017 was 8,100 in 2017, compared with 9,400 acres in 2016.

Together Washington, Oregon and Idaho onion acreage of about 52,000 accounted for about 36% of total U.S. onion acreage in 2017.

Of the total U.S. onion shipments, the USDA reported 4.3 million cwt. was for the fresh market and 878,951 tons for processing.

Central Produce Distributing Inc. of Payette, ID has just started harvesting onion and will be shipping product from storage through the end of March. Some other shippers will get underway throughout August and in early September.

The operation expects acreage to be similar to 2017, with a few more acres of reds and yellow onion acreage remaining the same. Yellow onions account for about 80 percent of the company’s crop,

New Mexico onion shipments are finishing up about the time the Northwest gets underway.

River Point Farms LLC, Hermiston of OR reports an ideal growing season thanks to the weather.  Unlike a year ago, growers in the Treasure Valley had nice spring weather and were able to get their onion crop planted on normal schedules.

Storage onions will be shipped from September through May.

Early season onion quality is expected to be very good and the storage varieties store well all season.

 

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Average Wisconsin Spud Volume is Seen; California Grape Shipments Keep Growing

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A31Looking ahead to the up coming season, Wisconsin potatoes shipments are expected to be average….In California, grape shipments should end up with another big time shipping season.

We’re still a few weeks away from the beginning of harvest for Wisconsin potatoes, which will continue through October.  As the nation’s third largest shippers of potatoes behind Idaho and Colorado, the Badger States has about 110 potato farmers, who together grow about 63,000 acres of spuds.  From season to season Wisconsin typically ships around 25 million to 28 million cwt., depending on the yields.

The USDA reports fresh shipments of Wisconsin potatoes in calendar year 2017 totaled 7.3 million cwt., while chipper potato shipments were 6.69 million cwt. and seed potato shipments were 1.635 million cwt.

Wisconsin organic fresh potato shipments totaled 45,000 cwt., reports the USDA.

California Grape Shipments

California grape shipments continue to increase each year as its popularity among consumers continue to grow.  Total shipments this season are expected to once again exceed 100 million boxes.

Early season grapes from the San Joaquin Valley has brought a significant increase in several newer table grape varieties and an overall increase in volume compared to a year ago, according to The California Table Grape Commission, based in Fresno, CA.  However, grape shipments from the Coachella Valley, which final figures come out, are expected to show a decrease.  Coachella shipments ended over a month ago.

The Commission’s 2018 crop estimate, which was released in late April, projected it would have 115 million 19-pound-equivillent boxes thanks to an increase in those grown in the San Joaquin Valley.

At the same time, the Coachella Valley is expected to have approximately 4.5 million boxes, down from nearly 5 million cases a year earlier.

It remains to be seen how the July heat wave in California will affect grape shipments.

California is home to more than 85 grape varieties, with red, green and black all available from May through early January.  Last year, the state saw more than 109 million boxes shipped, headed to approximately 55 countries with a crop value of nearly $1.81 billion.

 

 

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Lipman Family Farms, NatureSweet Partner

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IMG_6550+1by NatureSweet®

San Antonio — Tomato industry leaders Lipman Family Farms and NatureSweet are joining forces to better serve customers and quick service restaurants by ensuring year‐round premium, high‐quality, high‐flavor slicing and salad tomatoes. NatureSweet brings to the table years of greenhouse growing expertise, while field grown tomato leader Lipman brings deep experience serving food service customers.

As the better burger, quick service and fast casual restaurant industry continues to grow in the United States, changing consumer taste demands high‐quality and exceptionally tasting ingredients, and Lipman Family Farms and NatureSweet help deliver on that promise.

“We’re pleased we’ll be able to assure a 52‐week supply of exceptional slicing and salad tomatoes to our valued clients,” said Lipman Family Farms CEO Kent Shoemaker. “NatureSweet is known for their successful snacking tomatoes and innovative packaging, and we’re glad to share our strengths and expertise in a partnership. Our goal is to bring the high flavor, high color, high density characteristics of our field grown Crimson variety to the greenhouse product we create with NatureSweet. Our food service customers need access to premium product on a year‐round basis. They also need greenhouse and field grown options.”

It’s a 100 percent joint venture between both companies with equal investments. The tomatoes will be cobranded and distributed under the Lipman name.

This is a first‐of‐its kind initiative to bring together the biggest food service names and the industry‐leading tomato suppliers. The partnership is planned to launch in October 2018.

About Lipman Family Farms:
Lipman Family Farms is a full service tomato and vegetable company operating in both open field and protected agriculture. Lipman is the largest open field tomato grower in North America. Lipman’s seed to shelf supply chain control – research & development, farming, processing, repacking, logistics and marketing – delivers the consistency and quality that has made Lipman Family Farms North America’s most dependable source of fresh tomatoes and vegetables.

About NatureSweet®:
NatureSweet® Tomatoes is the leading grower of premium, branded, best‐tasting fresh tomatoes in North America. Always vine‐ripened and hand‐picked at the peak of freshness, only NatureSweet® tomatoes guarantee great taste all year round. NatureSweet® tomatoes are carefully grown, harvested and packaged by more than 9,000 full‐time Associates, and are sold at major grocers, mass retailers, club stores and food service operators in the United States, Canada and Mexico.

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Stemilt Expects to Ship About 12% of NW Pear Crop This Season

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DSCN0503by Stemilt Growers

WENATCHEE, Wash. – The Northwest pear crop is looking promising this year, with about 20 million boxes expected to be packed and shipped.  Stemilt, an industry leader in both conventional and organic varieties expects to shipper around 12 percent of the crop.

“Harvest is trending a week ahead of last year, with increased crop volumes over last season,” said Brianna Shales, communications manager at Stemilt.

Shipments of  Tosca and Bartlett pears get underway the week of August 20, followed by Starkrimson the following week. The majority of Stemilt’s Tosca pears are certified organic and available under the Artisan Organics™ brand. Tosca is an early variety with a short season and will be sized well for Stemilt’s kid-size pear program, Lil Snappers®.

Northwest pear volume will hit good stride in late August.

“It’s been an ideal growing season for pears, with a long spring and great summer weather for growing sizeable pears,” states Shales. “Stemilt has been a leader in the pear category for years, and looks forward to another season of top quality, flavorful pears.”

“Jet cooling is essential to the quality of pears harvested in August, and our cooling process is designed to back the high flavor, ready-to-eat pear process,” says Shales. “Our teams use a Stemilt-specific sequence that is designed for the best airflow and cooling patterns, giving our pears the exact things they need to ensure a ready-to-eat experience right out of the box.”

Stemilt has also built two Thermal Tech Tarpless® ripening rooms in the Fresh Cube to ripen Anjou and Red d’Anjou pears.

“Trust goes a long way in the pear category,” states Shales. “We have seen a decrease in the pear category over the last decade and Stemilt is working hard to reverse that trend through programs like Operation Flavor and our Rushing Rivers® pear brand.”

Stemilt partners with Peshastin Hi-Up Growers to produce Rushing Rivers® pears, which grow in the two best pear locales in the world – the Wenatchee River Valley and the Entiat River Valley – by multi-generational pear farmers who come with a world of knowledge and expertise. These growing districts are located right next to packing, ripening and shipping facilities, which supports Stemilt’s mission of flavor-first focus.

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About Stemilt

Stemilt Growers is a leading tree fruit growing, packing and shipping company based in Wenatchee, WA. Owned and operated by the Mathison family, Stemilt is the leading shipper of sweet cherries and one of the nation’s largest suppliers of organic tree fruits.

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Hispanic Conumers Lead in Avocado Consumption

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avocadoGirlIt’s no surprise Hispanics are avocado buyers, but a recent Hass Avocado Board study shows that even as consumption of the fruit has risen in many demographic groups, Hispanic consumers continue to outpace others in many areas.

The study, Hispanic Avocado Shopper Trends,  and a companion document giving retailers ideas on how to capitalize on the findings, Hispanic Avocado Shoppers Trends Action Guide, is based on retail data from the IRI Consumer Network, according to a news release.

Hispanic household purchase trends of avocados outpace non-Hispanic households in these areas:

  • The percentage of total U.S. households that buy avocados
  • The average avocado spend per household; and
  • The percentage of households that buy avocados at the “super” level ($25.36 and more a year)

“Hass avocados are continuing to gain widespread popularity,” Emiliano Escobedo, executive director of the Hass Avocado Board, said in the release. “And this study shows that Hispanic households are particularly involved in the avocado category and play an important role in its growth.”

In 2017, Hispanic household avocado purchases averaged $33, 45 percent more than the $22.69 spent by non-Hispanic households, according to the release, and average per-trip purchases were $4.46, compared to $3.83 for non-Hispanic households.

The Hispanic “super households” (the HAB breaks down purchase levels into super, heavy, medium and light) are the main reason for the gap between their purchases and non-Hispanic households, with 36 percent of them in the super category, versus 24 percent of non-Hispanic households meeting that level.

Hass Avocado Board

HassAvocadoBoard.com is the essential online resource for the Hass Avocado industry providing timely relevant data and research for the domestic producers and importers it represents.

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Heat Hits California Avocados; Chilean Mandarin Volume Continues Impressive Growth

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DSCN0872California avocados are dropping from the trees because of triple digit temperatures that have been common since early July….Meanwhile, imported Chilean mandarin volume has have increased nearly five-fold during the past six years.

Some temperatures have hit 115 degrees F.  For example, Del Rey Avocado Co. Inc. of Fallbrook, CA reports avocado groves in San Diego County’s Pauma Valley and Temecula have suffered from the heat. As a result, fruit drop resulting from the heat is expected to cut avocado shipments and possibly increase the price of California avocados in late summer marketed in August, particularly after Labor Day.

The 2019 avocado season could also suffer from this year’s weather, particularly with potential tree damage.

In the southern growing regions of San Diego and Riverside counties, the harvest was about 85 percent finished when the early July heat hit groves.  To date, California growers have harvested about 300 million pounds of fruit.  Most of the remaining crop is in cooler areas, north and toward the coast.

California’s avocado shipments this season was originally estimated to be 350 million pounds, but some observers have lowered their estimate to 320 million or less.

Shipments of about 13 million pounds per week in early July faded to 10 million pounds by mid-July.  California avocado shipments are now dropping sharply.

Imports of Peruvian avocados began arriving in peak volumes in early August and supplies from Mexico are also available.

Chilean Mandarins

The first shipments of Chilean mandarins arrived by boat at U.S. ports in late July with 64 tons on the East Coast and 21 tons for Canada.

Although this season got off to a slower start than last year, Chile expects to ship a record 101,000 tons of mandarins to North America this year, a 32 percent over last year.  In 2012 Chile exported 22,000 tons of mandarins.   Today, the Chilean mandarin industry has become the main supplier of easy peelers to North America.

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