Author Archive
Mexican mango imports are now taking center stage for U.S. markets, while the imported pineapple season from Costa Rica is starting out with flying colors.
While increased mango volume from Peru was seen December and January, Mexican volume started in late January and now is closing in on 1 million mango boxes per week.
During 2017 Mexican mango volume exported to the United States hit a record at 80 million cases. In fact, Mexico accounts for 62 percent of the mangos exported to the U.S.
Mexican mango exports have increased from 59 million in 2014, to 80 million cases last year.
There was a drop in Mexican exports from 2013, when a then-record 70 million cases were shipped to the U.S. However, there was increased Mexican mango volume each year for at least 10 years, with 40 million cases shipped in 2004.
A total of 23 Mexican states produce mango, with about 25 percent of Mexico’s mango crop being exported fresh.
Imported Pineapples
Strong supplies of imported pineapples are seen through the first half of 2018. Dole Food Co., Westlake Village, CA is a leading importer of the tropical fruit. Costa Rica provides about 80 percent of pineapples in the U.S. as the first half of the year looks better than recent few years. A normal dip in Costa Rican volumes is expected in the late summer and early fall with volumes returning in the fourth quarter. Mexico also is expected to have good supplies, although volume to the U.S. is much less than with Costa Rica.
Over the last four years, cut pineapple has grown much faster than bulk in the U.S.
As recently as 1991, Hawaii provided half of the total U.S. fresh pineapple supply. That year, total supply of fresh pineapple totaled 503 million pounds, of which Hawaii accounted for 250 million pounds and imports provided 254 million pounds.
Fast-forward to 2006 and Hawaii supplied only 192 million pounds of fresh pineapples and import volume ballooned to 1.4 billion pounds.
By 2015, Hawaii’s contribution to the fresh pineapple supply disappeared altogether, while imports supplied all the fresh pineapple supply of 2.3 billion pounds. Hawaii’s demise in the pineapple industry was primarily due to high costs of operation, compared to other areas around the world..
By Larry Oscar
I get a lot of questions these days about business. Maybe it’s because we are finally beginning to see some light at the end of an eight-year tunnel after the United States has had the most anti business leadership in U.S. history.
Or maybe it’s because we now have a business man in the White House rather than a career politician. For whatever the reason this is a positive sign. It has always been my contention business is a natural right of man. Just as is free speech or freedom of association, business is also a natural state of mankind. The right to produce more than you need and barter or sell the excess for a profit is a natural right that goes all the way back to the cave men.
Capitalism, by its very nature, is a natural state of man. It is human nature to want to look over the fence and desire the things we don’t currently have. However, there are many among us today that let their jealousy and envy rule their hearts. They think that success is evil, and that our lives need to be controlled or we will have the successful among us make the unsuccessful “feel” bad.
Somehow their little minds think the insecure emotions of others are someone else’s responsibility. No where was this stupid idea more prevalent than in the Obama administration. Obama and his minions spent almost all their time trying to stop the rich from getting richer. And they did this at the expense of the poor. They had the idea somehow by keeping the rich from getting richer it was going to benefit the poor. Instead it had the opposite effect. By keeping the rich from getting richer Obama constrained business growth and the jobs that businesses create.
This left the poor with the lowest wage growth in U.S. history. We saw business after business either move out of our country or close its doors. Workers had to take the jobs of teenagers just to provide for their families. Many of us who understand how business works were vehemently opposed to Obama’s stupid socialistic ideas, but when we spoke out we were accused of being racist.
Obama got a pass because of the color of his skin. Shame on those of you who let Obama suck you in. Under the Obama administration the United States had to suffer from the poorest example of leadership we may have ever had. Obama added $10 trillion to the nation’s debt with big government spending and what do we have to show for it? He drew red lines in the sand that were meaningless. Anybody with half a brain knows threats never work.
He told us the lost jobs aren’t coming back” and that a 1 ½ percent increase in the GDP was the new normal . Obama was the champion of mediocrity. My how fast times change. It has only been a year since Donald Trump, a business man, took office and look at where our business community is now.
(Larry Oscar is a graduate from the University of Tulsa and holds a degree in electrical engineering. He is retired and lives with his wife on a lake in Oklahoma where he brews his own beer, sails, and is a member of numerous clubs and organizations.)
It is a bit amusing watching the produce industry’s reaction to transportation rates and other issues.
Little thought is given to transportation – trucking or rail – until there are problems. Those problems almost always center first on what’s the cost of the truck? Find the cheapest truck available is pretty the industry’s unwritten motto.
This has typically been most true after demand for refrigerated equipment subsides entering the fall as produce volume is seasonally lower. It continues until around March or so when spring produce shipments are increasing and demand for equipment rises accordingly.
Since last year this has all changed. Another cycle in trucking has arrived. These cycles typically last maybe three to five years. The cycle that has ended saw rates for produce truckers remain pretty stagnant. A sluggish economy with stagnant wages did not present as many attractive employment opportunities.
That’s now in the rear view mirror as demand for trucks, and drivers is often outstripping supply. Now there’s near panic is some produce industry corners. Not only are freight rates substantially higher, but getting a truck at any cost is often a challenge.
Truck rates have recently backed off some, but spring is coming soon and we’ll see how long that trend lasts.
The federal mandate for electronic logbooks certainly isn’t going to help no one. Truckers currently are allotted 14 hours of operating time, but how often do they waste much of this time at loading and unloading docks? When multiple pickups and drops are involved, the problems is only compounded.
While truck rates have plunged from only a month ago, they are still much higher than a year ago.
Rates from the California desert are currently about $7,400 to New York City, off 15 percent from three weeks earlier. However, the current rate is still 20 percent above the same time a year ago.
For a load of apples out of the Yakima Valley in Washington state the gross freight rate is around $4,600 to Dallas, 20 percent below only a few weeks ago, but very similar to rates at the same time last year.
Rates from south and central Florida for tomatoes and veggies are mostly below $3000 now, which is 20 percent more that a year ago.
Mushroom shipments look good for the first quarter of 2018, which will be an improvement, at least for some areas of the country….Meanwhile, the forecast for Florida citrus shipments takes another hit.
Shipments of mushrooms from Texas and Florida should be better this year as the region has recovered from hurricane damage last fall. While mushrooms are grown indoors, production still depends on the quality of compost, which is grown outside.
As long as growers don’t have to deal with frozen compost, a relatively mild fall has led to improved conditions. At the same time companies such as Oakshire Mushroom Farm of Kennett Square, PA, which markets mushrooms under the Dole label, see adequate labor as a continuing problem, like other operations, because mushrooms are a very labor-intense crop.
Monterey Mushrooms Inc. of Watsonville, CA also anticipates an good crop for early 2018. The company has 10 farms strategically located around the United States and Mexico and it makes its own compost.
White mushrooms still constitute most mushroom shipments, but brown mushrooms continue to gain. Ten years or more ago, white mushrooms represented over 90 percent of shipments. That has now shrunk to about 70 percent, because baby portabellas are still increasing in popularity. Portabellas have been fairly stable, accounting for around 6 to 7 percent of total volume. Specialty mushrooms, particularly shiitake and oyster, also are gaining in volume.
Florida Citrus Shipments
45 million boxes of oranges from Florida are predicted to be shipped, down 2 percent from the USDA January forecast.
The 2017-18 crop will be the smallest in over 75 years, assuming the estimate is accurate. Hurricane Irma devastated much of the production in the state when the storm hit last September, compounding the low production numbers caused by citrus greening disease.
The current crop projection is off 35 percent from the 2016-17 season.
The forecast for valencias is now 26 million boxes, down 4 percent from the January estimate.The projections for non-valencia oranges and grapefruit are unchanged at 19 million boxes and 4.65 million boxes, respectively.
Before the hurricane, private estimates suggested Florida was set to produce 75 million boxes of oranges this season.
By Okanagan Specialty Fruits Inc.
Summerland, B.C., Canada – Okanagan Specialty Fruits Inc.’s (OSF) third nonbrowning Arctic® apple variety, Arctic® Fuji, has been approved by the Canadian Food Inspection Agency (CFIA) and Health Canada (HC). The CFIA and HC announced recently that the Arctic® Fuji variety “did not pose a greater risk to human health than apples currently available on the Canadian market. In addition, Health Canada also concluded that the Arctic® Fuji apple would have no impact on allergies, and that there are no differences in the nutritional value of the Arctic® Fuji apple compared to other traditional apple varieties available for consumption”. Arctic® Fuji trees will join the growing commercial orchards of Arctic® Golden and Arctic® Granny apples in spring 2018.
The company shipped the golden delicious slices to about 400 retail locations in the Midwest last fall.
“Canadian approval of the nonbrowning Arctic® Fuji is great news for our company and even more exciting for families looking to add another favorite apple variety to their healthy diets and lifestyles,” explained Neal Carter, President of OSF. “There has been very strong interest from retailers as we launched our first product – fresh, preservative free Arctic® Golden slices – and we look forward to introducing additional Arctic® nonbrowning varieties into Canada and U.S. markets soon.”
Arctic® apples have a unique trait that prevents enzymatic browning even when apples are bitten, sliced, or bruised. Through biotechnology, the enzyme in apples responsible for browning has been turned off. The resulting nonbrowning advantage benefits every sector of the supply chain, reducing food waste and boosting product appeal.
“It’s an exciting time at OSF. For a very long time, apple lovers have been looking forward to enjoying nonbrowning Arctic® apples as a convenient and healthy snack option. With this past fall’s U.S. launch we were finally able to deliver just that,” stated Carter. “This latest announcement allows us to continue looking ahead toward providing new nonbrowning varieties and additional value-added fruits and vegetables. Arctic® apples are just the beginning for OSF.”
The announcement follows approval by the U.S. Department of Agriculture Animal and Plant Health Inspection Service (USDA APHIS) of the Arctic® Fuji variety, granted September 23, 2016. Arctic® apples will be available commercially in select U.S. cities this fall and in additional areas of North America over the coming years as fruit availability increases.
About Okanagan Specialty Fruits Inc.
Okanagan Specialty Fruits Inc. (OSF) is a dynamic biotechnology company based in Summerland, British Columbia, Canada. Founded in 1996, and acquired by Intrexon Corporation (NYSE: XON) as a wholly owned subsidiary in April 2015, OSF specializes in developing tree fruit varieties with novel attributes that benefit fruit producers and consumers alike.
by Ti (Tippmann Innovation)
PHARR, Texas — Index Fresh, based out of Riverside, CA, along with Ti (Tippmann Innovation) of Fort Wayne, IN, are proud to announce the ribbon cutting of the new Index Fresh avocado distribution facility in Pharr, TX. The Ceremony, held on January 9th, completes the nearly yearlong project which will continue to help Index Fresh expand their growing market presence both in the U.S. and in Mexico.
The new 60,000+ sf building designed and built by Ti (Tippmann Innovation) is now in full operation with the facility serving all aspects of Index Fresh Avocado business. The fully expandable state-of-the-art plant allows for ripening, storage and distribution all under one roof. The multi temperature facility has varying temperature zones to accommodate fresh perishables which allows Index Fresh to satisfy the growing demand for Fresh Product.
The new Index Fresh facility was built in the city-backed Pharr Produce Park at 1100 W. Capote Central Ave., Pharr, TX 78577. With close access to the border it allows Index Fresh and other companies positioned in the park to more efficiently move product in and out of Mexico.
“Produce is an economic driver for the City of Pharr, especially given our geographical proximity and ideal location near the U.S.-Mexico border,” said Mayor Ambrosio Hernandez, M.D. “Pharr International Bridge has been the leader when it comes to produce trade, accounting for nearly 60 percent of all fresh produce imported from Mexico crossing into the U.S. through our bridge,” Hernandez continued. “We have a long relationship with Index Fresh and are happy to have solidified our partnership through their investment in opening their first facility in Texas, right here in Pharr.”
Ti (Tippmann Innovation), a leader in the planning and building of cold storage facilities, worked with Index Fresh to design a modern, efficient facility that has the capacity and the flexibility to provide refrigerated service as the needs arise, using the most advanced technology in the industry.
About Ti (Tippmann Innovation)
Ti is an award winning, specialty commercial and industrial cold storage contractor that develops buildings around a business plan, ensuring that an investment becomes a profit center. Ti utilizes time-honed expertise and advanced technology solutions to create efficient buildings that scale with a business, and are designed to maximize profitability through fully integrating operations and supply chain, by design. Ti provides a full suite of cold storage construction services, including quick freeze, blast freezing, master site planning and operations, and maintenance guidance. Ti’s innovations include the Patented QuickFreeze in-rack freezing system that takes blast freezing to the next level, QuickTemper in-rack tempering system, and T2 spacer system. Ti has offices in Indiana, Illinois and Florida and operates internationally.
New technology extending okra shelf life should help reduce waste and claims. Also, Shappire grapes from Peru are now arriving at U.S. Ports.
A company specializing in products to enhance the shelf life of fresh produce has a partnership with a company that grows specialty produce in the Dominican Republic and Honduras.
The partnership initially is on a product from Hazel Technologies Inc. to extend the shelf life of okra grown by Agritrade Farms LLC. The postharvest technology, Hazel Okra, will be used on shipments of the vegetable from Honduras shipped to North America and Europe.
Okra is a difficult item to ship at peak quality, according to a news release, but trials with Hazel products and okra shipments have had positive results. The first commercial shipment of okra with the technology was in December.
Hazel Technologies has a line of packaging inserts designed for different items including tomatoes, melons, tree fruit, avocados and some specialty vegetables.
Sapphire Grapes
by Melissa’s Produce
Los Angeles, California – Melissa’s announces the first shipment of the season of fresh Peruvian Sweet Sapphire Grapes! The unusual two-inch tubular shape is not the only unique characteristic of this sweet table grape. Sweet Sapphires have a dark purple, almost black, skin that protects its translucent green and seedless fruit. With a sugar content that exceeds all other fresh grape varieties, the grape has an extremely sweet flavor balance reminiscent of a delicate dessert wine. Surprisingly, each grape is so firm it can be snapped in half and large enough to be stuffed!
Through natural cross-pollination, a tedious process done by hand over many generations of grape seasons, the variety offers both taste and versatility like no other. Serve Sweet Sapphire grapes stuffed as an interesting party platter finger food, as the base for a full-bodied reduction sauce or simply as a tasty sweet out-of-hand snack fruit. Available for a short time during the months of late January – March, Sweet Sapphires are great with cheese, crackers and wine.
Melissa’s Produce is the leading U.S. variety distributor of specialty and organic fresh produce. The company imports exotic fruits and vegetables from around the world.
By The California Avocado Commission
IRVINE, Calif. – After weeks of reviewing the impact of wind and fire to California avocado groves, the California Avocado Commission (CAC) announced a 2018 crop forecast: 374.6 million pounds of avocados. The total, despite the ravages of Mother Nature in California’s avocado growing regions, is nearly double the yield of last year’s crop and considerably better than some had feared.
“The CAC 2018 pre-season crop estimate of 374.6 million pounds of California avocados means there will be solid volume…,” said Tom Bellamore, California Avocado Commission president. “Despite some harsh blows from Mother Nature, California avocado growers are resilient, and the industry is expecting a good year.”
The shipping forecast comes after a series of weather events, including the Lilac fire in Riverside county and the Thomas fire in Ventura and Santa Barbara counties. The Thomas fire, which began on December 4 and burned more than 280,000 acres over more than a month, was the largest wildfire in recorded California history. Wind and mudslides also have taken a serious toll on the region. However, the impact on California avocados was relatively limited.
“Many California avocado growers experienced loss, both personal and professional, and our hearts go out to them. Across the industry, though, only about 5 percent of the crop was damaged,” said Bellamore.
To support the 2018 crop, the California Avocado Commission will continue its Made of California marketing campaign with new creative executions. Customized marketing plans for targeted customers will be a focus, and CAC has a full slate of innovative programs in development.
About the California Avocado Commission
Created in 1978, the California Avocado Commission strives to enhance the premium positioning of California avocados through advertising, promotion and public relations, and engages in related industry activities. California avocados are commercially cultivated with uncompromising dedication to quality and freshness, by more than 2,000 growers in the Golden State. The California Avocado Commission serves as the official information source for California avocados and the California avocado industry.
There will be fewer tangerine and mandarin shipments from the top producing states this season…A look is taken at truck demand, rates and fuel costs…Plus, here is a glimpse at the top 10 potato shipping states.
California is expected to ship 21 million boxes of tangerines and mandarins this season, down from 23.9 million in 2016-17.
Florida is projected to have 860,000 boxes, down from 1.62 million last season, with the dramatic decrease due to the adverse affects of Hurricane Irma.
The Wonderful Co. of Los Angeles and Sun Pacific of Pasadena, CA are two of the larger shippers of the citrus.
Truck Demand and Rates
While demand for refrigerated equipment and qualified drivers has been getting a lot of attention, diesel fuel price are nearly a three-year high, adding the costs of trucking operations. According to DAT Trendlines diesel fuel nationally average $3.02 per gallon in December 2017, which was 16 percent more than in December 2016.
The Allen Lund Company of LaCanada, CA, like many other companies, have noticed the economy really taking off. The transportation firm is seeing 280,000 truck loads a year, a 17 percent increase from the previous year.
Another sign things are looking up for the U.S. economy is the increase in Class 8 truck sales. Over 300,000 Class 8 tractors were sold in 2017. When those trucks are delivered throughout the coming year, trucking capacity will be better.
The Wall Street Journal recently reported analysts are expecting long-term contract rates which shippers negotiate with carriers should increase between 5 percent and 8 percent this year.
Top 10 Fall Potato Producers for 2017
Total U.S. fall potato crop 399,840,000 cwt. Total U.S. Crop 441,310,000 cwt.
RANK
State
Production (hundredweight)
Percent of Total
U.S. Fall Crop
1
Idaho
131,330,000
32.8%
2
Washington
99,000,000
24.8%
3
Wisconsin
29,150,000
7.3%
4
North Dakota
25,160,000
6.3%
5
Colorado
21,530,000
5.4%
6
Oregon
21,400,000
5.4%
7
Minnesota
18,430,000
4.6%
8
Michigan
18,000,000
4.5%
9
Maine
15,040,000
3.8%
10
Nebraska
9,070,000
2.3%
All others
11,750,000
2.9%
Source: USDA-NASS
2017 Minnesota Crop Production Report
Fall potato production in Minnesota was 18.4 million hundredweight (cwt.) according to the USDA, National Agricultural Statistics Service. That is a 9.7 percent increase over 2016. Planted acres at 46,000 was up 3,000 and harvested acres were up 3,500.
By Carrier Transcold
AMSTERDAM — Reflecting the growing use of controlled-atmosphere (CA) technologies to maintain quality of fruits and vegetables over extended shipping times, Hamburg SÃ has transported more than 7,000 container shipments of perishable goods using Carrier Transicold’s innovative XtendFRESH atmosphere control system. Carrier Transicold is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp. (NYSE: UTX).
At Intermodal Europe, held here this week, Carrier Transicold and Hamburg SÃ, one of the leading ocean carriers in the South American segment, discussed the shipping line’s increased application of the XtendFRESH system for avocados and bananas. Hamburg SÃ’s shipments using XtendFRESH technology increased in 2017, and the shipping line expects to use it with an even broader range of perishables in 2018.
“There is a great deal of enthusiasm on the part of exporters to use controlled-atmosphere technologies to reach new regions for their perishable goods,” said Stefan Duhring, global head of logistics at Hamburg SÃ. “The number of shipments using XtendFRESH technology represents a significant and growing segment of our refrigerated shipments.”
The XtendFRESH system simultaneously controls carbon dioxide (CO2) and oxygen (O2) levels in multiple combinations within a refrigerated shipping container to reduce respiration and the ripening of fruits and vegetables. This enables a shipping line to transport exported perishable goods over longer times than with refrigeration alone, helping to reach new destinations. Preserving perishables is further enhanced by the XtendFRESH system’s ability to remove ethylene, a hormone released by produce that can accelerate ripening if left unchecked. The system is the only CA solution with an integral ethylene removal capability.
Hamburg SÃ, which collaborated with Carrier Transicold on system capabilities and testing during the development of the XtendFRESH system, began acquiring Carrier Transicold PrimeLINE units equipped with XtendFRESH technology in 2014.
“We’ve had success using the XtendFRESH system for avocados and bananas in many of our key refrigerated trade lanes,” said Durhring. “Our confidence in using XtendFRESH technology with higher-respiring perishables has led us to initiate plans to trial the system with shipments of South America-grown blueberries, a lower respiring fruit.”
Shipping lines appreciate that the XtendFRESH system offers a wider range of independent settings for CO2 and O2 levels than are possible with other systems.
“The wider range of settings, along with ethylene control, provide advantages for shipping lines in meeting the needs of exporters,” said Jim Taeckens, senior product manager, Carrier Transicold. “Additionally, the XtendFRESH system has no membrane filter to replace, as is common with some other systems, reducing maintenance requirements for fleets that offer it as an option for their customers.”
Responding to shipping line concerns about the learning curve with using CA technologies, Carrier Transicold provides training in the proper use of the XtendFRESH system and how to prepare a container prior to shipment. Taeckens added that to ensure optimal performance, containers must be in good condition with potential air leaks minimized through the use of a curtain wall at the door end of the container.
Helping to further boost performance, Carrier has worked with shipping lines on enhancements to the XtendFRESH system, including improved gaskets, advanced control software and a sensor to monitor operation of the ethylene and CO2 scrubber motor.
For more information about the XtendFRESH system or to conduct a trial, turn to the experts at Carrier Transicold or visit//www.carrier.com/container.
Mexican mango imports are now taking center stage for U.S. markets, while the imported pineapple season from Costa Rica is starting out with flying colors.
While increased mango volume from Peru was seen December and January, Mexican volume started in late January and now is closing in on 1 million mango boxes per week.
During 2017 Mexican mango volume exported to the United States hit a record at 80 million cases. In fact, Mexico accounts for 62 percent of the mangos exported to the U.S.
Mexican mango exports have increased from 59 million in 2014, to 80 million cases last year.
There was a drop in Mexican exports from 2013, when a then-record 70 million cases were shipped to the U.S. However, there was increased Mexican mango volume each year for at least 10 years, with 40 million cases shipped in 2004.
A total of 23 Mexican states produce mango, with about 25 percent of Mexico’s mango crop being exported fresh.
Imported Pineapples
Strong supplies of imported pineapples are seen through the first half of 2018. Dole Food Co., Westlake Village, CA is a leading importer of the tropical fruit. Costa Rica provides about 80 percent of pineapples in the U.S. as the first half of the year looks better than recent few years. A normal dip in Costa Rican volumes is expected in the late summer and early fall with volumes returning in the fourth quarter. Mexico also is expected to have good supplies, although volume to the U.S. is much less than with Costa Rica.
Over the last four years, cut pineapple has grown much faster than bulk in the U.S.
As recently as 1991, Hawaii provided half of the total U.S. fresh pineapple supply. That year, total supply of fresh pineapple totaled 503 million pounds, of which Hawaii accounted for 250 million pounds and imports provided 254 million pounds.
Fast-forward to 2006 and Hawaii supplied only 192 million pounds of fresh pineapples and import volume ballooned to 1.4 billion pounds.
By 2015, Hawaii’s contribution to the fresh pineapple supply disappeared altogether, while imports supplied all the fresh pineapple supply of 2.3 billion pounds. Hawaii’s demise in the pineapple industry was primarily due to high costs of operation, compared to other areas around the world..
By Larry Oscar
I get a lot of questions these days about business. Maybe it’s because we are finally beginning to see some light at the end of an eight-year tunnel after the United States has had the most anti business leadership in U.S. history.
Or maybe it’s because we now have a business man in the White House rather than a career politician. For whatever the reason this is a positive sign. It has always been my contention business is a natural right of man. Just as is free speech or freedom of association, business is also a natural state of mankind. The right to produce more than you need and barter or sell the excess for a profit is a natural right that goes all the way back to the cave men.
Capitalism, by its very nature, is a natural state of man. It is human nature to want to look over the fence and desire the things we don’t currently have. However, there are many among us today that let their jealousy and envy rule their hearts. They think that success is evil, and that our lives need to be controlled or we will have the successful among us make the unsuccessful “feel” bad.
Somehow their little minds think the insecure emotions of others are someone else’s responsibility. No where was this stupid idea more prevalent than in the Obama administration. Obama and his minions spent almost all their time trying to stop the rich from getting richer. And they did this at the expense of the poor. They had the idea somehow by keeping the rich from getting richer it was going to benefit the poor. Instead it had the opposite effect. By keeping the rich from getting richer Obama constrained business growth and the jobs that businesses create.
This left the poor with the lowest wage growth in U.S. history. We saw business after business either move out of our country or close its doors. Workers had to take the jobs of teenagers just to provide for their families. Many of us who understand how business works were vehemently opposed to Obama’s stupid socialistic ideas, but when we spoke out we were accused of being racist.
Obama got a pass because of the color of his skin. Shame on those of you who let Obama suck you in. Under the Obama administration the United States had to suffer from the poorest example of leadership we may have ever had. Obama added $10 trillion to the nation’s debt with big government spending and what do we have to show for it? He drew red lines in the sand that were meaningless. Anybody with half a brain knows threats never work.
He told us the lost jobs aren’t coming back” and that a 1 ½ percent increase in the GDP was the new normal . Obama was the champion of mediocrity. My how fast times change. It has only been a year since Donald Trump, a business man, took office and look at where our business community is now.
(Larry Oscar is a graduate from the University of Tulsa and holds a degree in electrical engineering. He is retired and lives with his wife on a lake in Oklahoma where he brews his own beer, sails, and is a member of numerous clubs and organizations.)
It is a bit amusing watching the produce industry’s reaction to transportation rates and other issues.
Little thought is given to transportation – trucking or rail – until there are problems. Those problems almost always center first on what’s the cost of the truck? Find the cheapest truck available is pretty the industry’s unwritten motto.
This has typically been most true after demand for refrigerated equipment subsides entering the fall as produce volume is seasonally lower. It continues until around March or so when spring produce shipments are increasing and demand for equipment rises accordingly.
Since last year this has all changed. Another cycle in trucking has arrived. These cycles typically last maybe three to five years. The cycle that has ended saw rates for produce truckers remain pretty stagnant. A sluggish economy with stagnant wages did not present as many attractive employment opportunities.
That’s now in the rear view mirror as demand for trucks, and drivers is often outstripping supply. Now there’s near panic is some produce industry corners. Not only are freight rates substantially higher, but getting a truck at any cost is often a challenge.
Truck rates have recently backed off some, but spring is coming soon and we’ll see how long that trend lasts.
The federal mandate for electronic logbooks certainly isn’t going to help no one. Truckers currently are allotted 14 hours of operating time, but how often do they waste much of this time at loading and unloading docks? When multiple pickups and drops are involved, the problems is only compounded.
While truck rates have plunged from only a month ago, they are still much higher than a year ago.
Rates from the California desert are currently about $7,400 to New York City, off 15 percent from three weeks earlier. However, the current rate is still 20 percent above the same time a year ago.
For a load of apples out of the Yakima Valley in Washington state the gross freight rate is around $4,600 to Dallas, 20 percent below only a few weeks ago, but very similar to rates at the same time last year.
Rates from south and central Florida for tomatoes and veggies are mostly below $3000 now, which is 20 percent more that a year ago.
Mushroom shipments look good for the first quarter of 2018, which will be an improvement, at least for some areas of the country….Meanwhile, the forecast for Florida citrus shipments takes another hit.
Shipments of mushrooms from Texas and Florida should be better this year as the region has recovered from hurricane damage last fall. While mushrooms are grown indoors, production still depends on the quality of compost, which is grown outside.
As long as growers don’t have to deal with frozen compost, a relatively mild fall has led to improved conditions. At the same time companies such as Oakshire Mushroom Farm of Kennett Square, PA, which markets mushrooms under the Dole label, see adequate labor as a continuing problem, like other operations, because mushrooms are a very labor-intense crop.
Monterey Mushrooms Inc. of Watsonville, CA also anticipates an good crop for early 2018. The company has 10 farms strategically located around the United States and Mexico and it makes its own compost.
White mushrooms still constitute most mushroom shipments, but brown mushrooms continue to gain. Ten years or more ago, white mushrooms represented over 90 percent of shipments. That has now shrunk to about 70 percent, because baby portabellas are still increasing in popularity. Portabellas have been fairly stable, accounting for around 6 to 7 percent of total volume. Specialty mushrooms, particularly shiitake and oyster, also are gaining in volume.
Florida Citrus Shipments
45 million boxes of oranges from Florida are predicted to be shipped, down 2 percent from the USDA January forecast.
The 2017-18 crop will be the smallest in over 75 years, assuming the estimate is accurate. Hurricane Irma devastated much of the production in the state when the storm hit last September, compounding the low production numbers caused by citrus greening disease.
The current crop projection is off 35 percent from the 2016-17 season.
The forecast for valencias is now 26 million boxes, down 4 percent from the January estimate.The projections for non-valencia oranges and grapefruit are unchanged at 19 million boxes and 4.65 million boxes, respectively.
Before the hurricane, private estimates suggested Florida was set to produce 75 million boxes of oranges this season.
| By Okanagan Specialty Fruits Inc.
Summerland, B.C., Canada – Okanagan Specialty Fruits Inc.’s (OSF) third nonbrowning Arctic® apple variety, Arctic® Fuji, has been approved by the Canadian Food Inspection Agency (CFIA) and Health Canada (HC). The CFIA and HC announced recently that the Arctic® Fuji variety “did not pose a greater risk to human health than apples currently available on the Canadian market. In addition, Health Canada also concluded that the Arctic® Fuji apple would have no impact on allergies, and that there are no differences in the nutritional value of the Arctic® Fuji apple compared to other traditional apple varieties available for consumption”. Arctic® Fuji trees will join the growing commercial orchards of Arctic® Golden and Arctic® Granny apples in spring 2018. The company shipped the golden delicious slices to about 400 retail locations in the Midwest last fall. “Canadian approval of the nonbrowning Arctic® Fuji is great news for our company and even more exciting for families looking to add another favorite apple variety to their healthy diets and lifestyles,” explained Neal Carter, President of OSF. “There has been very strong interest from retailers as we launched our first product – fresh, preservative free Arctic® Golden slices – and we look forward to introducing additional Arctic® nonbrowning varieties into Canada and U.S. markets soon.” Arctic® apples have a unique trait that prevents enzymatic browning even when apples are bitten, sliced, or bruised. Through biotechnology, the enzyme in apples responsible for browning has been turned off. The resulting nonbrowning advantage benefits every sector of the supply chain, reducing food waste and boosting product appeal. “It’s an exciting time at OSF. For a very long time, apple lovers have been looking forward to enjoying nonbrowning Arctic® apples as a convenient and healthy snack option. With this past fall’s U.S. launch we were finally able to deliver just that,” stated Carter. “This latest announcement allows us to continue looking ahead toward providing new nonbrowning varieties and additional value-added fruits and vegetables. Arctic® apples are just the beginning for OSF.” The announcement follows approval by the U.S. Department of Agriculture Animal and Plant Health Inspection Service (USDA APHIS) of the Arctic® Fuji variety, granted September 23, 2016. Arctic® apples will be available commercially in select U.S. cities this fall and in additional areas of North America over the coming years as fruit availability increases. About Okanagan Specialty Fruits Inc. Okanagan Specialty Fruits Inc. (OSF) is a dynamic biotechnology company based in Summerland, British Columbia, Canada. Founded in 1996, and acquired by Intrexon Corporation (NYSE: XON) as a wholly owned subsidiary in April 2015, OSF specializes in developing tree fruit varieties with novel attributes that benefit fruit producers and consumers alike. |
by Ti (Tippmann Innovation)
PHARR, Texas — Index Fresh, based out of Riverside, CA, along with Ti (Tippmann Innovation) of Fort Wayne, IN, are proud to announce the ribbon cutting of the new Index Fresh avocado distribution facility in Pharr, TX. The Ceremony, held on January 9th, completes the nearly yearlong project which will continue to help Index Fresh expand their growing market presence both in the U.S. and in Mexico.
The new 60,000+ sf building designed and built by Ti (Tippmann Innovation) is now in full operation with the facility serving all aspects of Index Fresh Avocado business. The fully expandable state-of-the-art plant allows for ripening, storage and distribution all under one roof. The multi temperature facility has varying temperature zones to accommodate fresh perishables which allows Index Fresh to satisfy the growing demand for Fresh Product.
The new Index Fresh facility was built in the city-backed Pharr Produce Park at 1100 W. Capote Central Ave., Pharr, TX 78577. With close access to the border it allows Index Fresh and other companies positioned in the park to more efficiently move product in and out of Mexico.
“Produce is an economic driver for the City of Pharr, especially given our geographical proximity and ideal location near the U.S.-Mexico border,” said Mayor Ambrosio Hernandez, M.D. “Pharr International Bridge has been the leader when it comes to produce trade, accounting for nearly 60 percent of all fresh produce imported from Mexico crossing into the U.S. through our bridge,” Hernandez continued. “We have a long relationship with Index Fresh and are happy to have solidified our partnership through their investment in opening their first facility in Texas, right here in Pharr.”
Ti (Tippmann Innovation), a leader in the planning and building of cold storage facilities, worked with Index Fresh to design a modern, efficient facility that has the capacity and the flexibility to provide refrigerated service as the needs arise, using the most advanced technology in the industry.
About Ti (Tippmann Innovation)
Ti is an award winning, specialty commercial and industrial cold storage contractor that develops buildings around a business plan, ensuring that an investment becomes a profit center. Ti utilizes time-honed expertise and advanced technology solutions to create efficient buildings that scale with a business, and are designed to maximize profitability through fully integrating operations and supply chain, by design. Ti provides a full suite of cold storage construction services, including quick freeze, blast freezing, master site planning and operations, and maintenance guidance. Ti’s innovations include the Patented QuickFreeze in-rack freezing system that takes blast freezing to the next level, QuickTemper in-rack tempering system, and T2 spacer system. Ti has offices in Indiana, Illinois and Florida and operates internationally.
New technology extending okra shelf life should help reduce waste and claims. Also, Shappire grapes from Peru are now arriving at U.S. Ports.
A company specializing in products to enhance the shelf life of fresh produce has a partnership with a company that grows specialty produce in the Dominican Republic and Honduras.
The partnership initially is on a product from Hazel Technologies Inc. to extend the shelf life of okra grown by Agritrade Farms LLC. The postharvest technology, Hazel Okra, will be used on shipments of the vegetable from Honduras shipped to North America and Europe.
Okra is a difficult item to ship at peak quality, according to a news release, but trials with Hazel products and okra shipments have had positive results. The first commercial shipment of okra with the technology was in December.
Hazel Technologies has a line of packaging inserts designed for different items including tomatoes, melons, tree fruit, avocados and some specialty vegetables.
| Sapphire Grapes
by Melissa’s Produce Los Angeles, California – Melissa’s announces the first shipment of the season of fresh Peruvian Sweet Sapphire Grapes! The unusual two-inch tubular shape is not the only unique characteristic of this sweet table grape. Sweet Sapphires have a dark purple, almost black, skin that protects its translucent green and seedless fruit. With a sugar content that exceeds all other fresh grape varieties, the grape has an extremely sweet flavor balance reminiscent of a delicate dessert wine. Surprisingly, each grape is so firm it can be snapped in half and large enough to be stuffed! Through natural cross-pollination, a tedious process done by hand over many generations of grape seasons, the variety offers both taste and versatility like no other. Serve Sweet Sapphire grapes stuffed as an interesting party platter finger food, as the base for a full-bodied reduction sauce or simply as a tasty sweet out-of-hand snack fruit. Available for a short time during the months of late January – March, Sweet Sapphires are great with cheese, crackers and wine. Melissa’s Produce is the leading U.S. variety distributor of specialty and organic fresh produce. The company imports exotic fruits and vegetables from around the world.
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By The California Avocado Commission
IRVINE, Calif. – After weeks of reviewing the impact of wind and fire to California avocado groves, the California Avocado Commission (CAC) announced a 2018 crop forecast: 374.6 million pounds of avocados. The total, despite the ravages of Mother Nature in California’s avocado growing regions, is nearly double the yield of last year’s crop and considerably better than some had feared.
“The CAC 2018 pre-season crop estimate of 374.6 million pounds of California avocados means there will be solid volume…,” said Tom Bellamore, California Avocado Commission president. “Despite some harsh blows from Mother Nature, California avocado growers are resilient, and the industry is expecting a good year.”
The shipping forecast comes after a series of weather events, including the Lilac fire in Riverside county and the Thomas fire in Ventura and Santa Barbara counties. The Thomas fire, which began on December 4 and burned more than 280,000 acres over more than a month, was the largest wildfire in recorded California history. Wind and mudslides also have taken a serious toll on the region. However, the impact on California avocados was relatively limited.
“Many California avocado growers experienced loss, both personal and professional, and our hearts go out to them. Across the industry, though, only about 5 percent of the crop was damaged,” said Bellamore.
To support the 2018 crop, the California Avocado Commission will continue its Made of California marketing campaign with new creative executions. Customized marketing plans for targeted customers will be a focus, and CAC has a full slate of innovative programs in development.
About the California Avocado Commission
Created in 1978, the California Avocado Commission strives to enhance the premium positioning of California avocados through advertising, promotion and public relations, and engages in related industry activities. California avocados are commercially cultivated with uncompromising dedication to quality and freshness, by more than 2,000 growers in the Golden State. The California Avocado Commission serves as the official information source for California avocados and the California avocado industry.
There will be fewer tangerine and mandarin shipments from the top producing states this season…A look is taken at truck demand, rates and fuel costs…Plus, here is a glimpse at the top 10 potato shipping states.
California is expected to ship 21 million boxes of tangerines and mandarins this season, down from 23.9 million in 2016-17.
Florida is projected to have 860,000 boxes, down from 1.62 million last season, with the dramatic decrease due to the adverse affects of Hurricane Irma.
The Wonderful Co. of Los Angeles and Sun Pacific of Pasadena, CA are two of the larger shippers of the citrus.
Truck Demand and Rates
While demand for refrigerated equipment and qualified drivers has been getting a lot of attention, diesel fuel price are nearly a three-year high, adding the costs of trucking operations. According to DAT Trendlines diesel fuel nationally average $3.02 per gallon in December 2017, which was 16 percent more than in December 2016.
The Allen Lund Company of LaCanada, CA, like many other companies, have noticed the economy really taking off. The transportation firm is seeing 280,000 truck loads a year, a 17 percent increase from the previous year.
Another sign things are looking up for the U.S. economy is the increase in Class 8 truck sales. Over 300,000 Class 8 tractors were sold in 2017. When those trucks are delivered throughout the coming year, trucking capacity will be better.
The Wall Street Journal recently reported analysts are expecting long-term contract rates which shippers negotiate with carriers should increase between 5 percent and 8 percent this year.
Top 10 Fall Potato Producers for 2017
Total U.S. fall potato crop 399,840,000 cwt. Total U.S. Crop 441,310,000 cwt.
| RANK | State | Production (hundredweight) | Percent of Total
U.S. Fall Crop |
| 1 | Idaho | 131,330,000 | 32.8% |
| 2 | Washington | 99,000,000 | 24.8% |
| 3 | Wisconsin | 29,150,000 | 7.3% |
| 4 | North Dakota | 25,160,000 | 6.3% |
| 5 | Colorado | 21,530,000 | 5.4% |
| 6 | Oregon | 21,400,000 | 5.4% |
| 7 | Minnesota | 18,430,000 | 4.6% |
| 8 | Michigan | 18,000,000 | 4.5% |
| 9 | Maine | 15,040,000 | 3.8% |
| 10 | Nebraska | 9,070,000 | 2.3% |
| All others | 11,750,000 | 2.9% |
Source: USDA-NASS
2017 Minnesota Crop Production Report
Fall potato production in Minnesota was 18.4 million hundredweight (cwt.) according to the USDA, National Agricultural Statistics Service. That is a 9.7 percent increase over 2016. Planted acres at 46,000 was up 3,000 and harvested acres were up 3,500.
By Carrier Transcold
AMSTERDAM — Reflecting the growing use of controlled-atmosphere (CA) technologies to maintain quality of fruits and vegetables over extended shipping times, Hamburg SÃ has transported more than 7,000 container shipments of perishable goods using Carrier Transicold’s innovative XtendFRESH atmosphere control system. Carrier Transicold is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp. (NYSE: UTX).
At Intermodal Europe, held here this week, Carrier Transicold and Hamburg SÃ, one of the leading ocean carriers in the South American segment, discussed the shipping line’s increased application of the XtendFRESH system for avocados and bananas. Hamburg SÃ’s shipments using XtendFRESH technology increased in 2017, and the shipping line expects to use it with an even broader range of perishables in 2018.
“There is a great deal of enthusiasm on the part of exporters to use controlled-atmosphere technologies to reach new regions for their perishable goods,” said Stefan Duhring, global head of logistics at Hamburg SÃ. “The number of shipments using XtendFRESH technology represents a significant and growing segment of our refrigerated shipments.”
The XtendFRESH system simultaneously controls carbon dioxide (CO2) and oxygen (O2) levels in multiple combinations within a refrigerated shipping container to reduce respiration and the ripening of fruits and vegetables. This enables a shipping line to transport exported perishable goods over longer times than with refrigeration alone, helping to reach new destinations. Preserving perishables is further enhanced by the XtendFRESH system’s ability to remove ethylene, a hormone released by produce that can accelerate ripening if left unchecked. The system is the only CA solution with an integral ethylene removal capability.
Hamburg SÃ, which collaborated with Carrier Transicold on system capabilities and testing during the development of the XtendFRESH system, began acquiring Carrier Transicold PrimeLINE units equipped with XtendFRESH technology in 2014.
“We’ve had success using the XtendFRESH system for avocados and bananas in many of our key refrigerated trade lanes,” said Durhring. “Our confidence in using XtendFRESH technology with higher-respiring perishables has led us to initiate plans to trial the system with shipments of South America-grown blueberries, a lower respiring fruit.”
Shipping lines appreciate that the XtendFRESH system offers a wider range of independent settings for CO2 and O2 levels than are possible with other systems.
“The wider range of settings, along with ethylene control, provide advantages for shipping lines in meeting the needs of exporters,” said Jim Taeckens, senior product manager, Carrier Transicold. “Additionally, the XtendFRESH system has no membrane filter to replace, as is common with some other systems, reducing maintenance requirements for fleets that offer it as an option for their customers.”
Responding to shipping line concerns about the learning curve with using CA technologies, Carrier Transicold provides training in the proper use of the XtendFRESH system and how to prepare a container prior to shipment. Taeckens added that to ensure optimal performance, containers must be in good condition with potential air leaks minimized through the use of a curtain wall at the door end of the container.
Helping to further boost performance, Carrier has worked with shipping lines on enhancements to the XtendFRESH system, including improved gaskets, advanced control software and a sensor to monitor operation of the ethylene and CO2 scrubber motor.
For more information about the XtendFRESH system or to conduct a trial, turn to the experts at Carrier Transicold or visit//www.carrier.com/container.