Author Archive
The coming months should be good for hauling imported Chilean grapes arriving at U.S. ports on both coasts….Meanwhile, a number of specialty produce items are popular for the Chinese New Year celebrated in February.
Imported Chilean grapes are expected to be arriving at U.S. ports with more volume than in recent years, although arrivals this winter started about a week or two later than a year ago, when arrivals were earlier than normal.
Imports to North America from Chile continues to increase accounting for a larger share of the volume. About 39,000 tons had been shipped this season from Chile through early January, down from 79,000 at the same time last year. But as mentioned, the grapes matured later this season in Chile.
Observers believe the overall grape volume will exceed 90-million cartons, which would be slightly more than average. Arrivals are now coming in good volume, with a steady flow of produce continuing through April. For several years, North American imports have accounted for about 45 percent of the Chilean grapes, that number has been approach 50 percent more recently.
Chinese New Year items
Specialty produce items popular for Chinese New Year promotions should be in good supply for the weeks surrounding the February 16 holiday. The holiday festival itself lasts for two weeks celebrating the Year of the Dog.
Among the items that will be shipped are ginger, bok choy, gai lan and other Asian vegetables, as well as citrus items such as pummelo, kumquats and Buddha’s hand, dragonfruit and young coconut, as well as Snow peas and snap peas. Other items sometimes connected to the holiday are Turmeric, Chinese long beans, daikon, starfruit, jackfruit, yu choy and lokam oranges.
World Variety Produce of Los Angeles markets under the Melissa’s brand and is one of the largest shippers of specialty produce items in the U.S. The company is sourcing leafy greens from California, other vegetables from Mexico and fruit from tropical areas.
Thomas Fresh of Calgary, Alberta is a produce repacker who handles produce specialty an other fresh items.
(Photo was taken by Bill Martin during an 11-day trip Chile in January 1992.)
By Alliance for Food and Farming
A new peer-reviewed study published in the International Journal of Epidemiology found that if we consumed diets higher in fruits and vegetables, an estimated 5.6 and 7.8 million premature deaths worldwide could be prevented. Further the study concludes:
Fruit and vegetable intakes were associated with reduced risk of cardiovascular disease, cancer and all-cause mortality. These results support public health recommendations to increase fruit and vegetable intake for the prevention of cardiovascular disease, cancer, and premature mortality.
This study is yet another example of the decades of nutritional research that overwhelmingly show the benefits of all genders and all age groups eating more fruits and veggies for better health and a longer life. For children, specifically, there are also numerous studies that show the benefits of fruit and veggie consumption on cognitive health too as their young brains develop.
Ironically this study was published at the same time that the Centers for Disease Control released a new report which showed only one in 10 Americans are eating enough fruits and vegetables each day.
While there are often cited reasons that we aren’t eating enough fruits and veggies, it is becoming quite clear that public health initiatives to increase consumption are being undermined by groups who use fear to promote eating only certain types of produce grown in certain ways. This fear-based messaging used by these groups often disparages the more affordable and accessible produce available to most Americans and may result in low income consumers being less likely to purchase any produce organically or conventionally grown, according to perry-reviewed studies.
But, at the AFF we believe supporting consumer choice also promotes increased consumption. Whether you prefer organic, conventional or local produce or if you like to shop at warehouse stores, traditional grocery stores, farmer’s markets or via online home delivery services, these are all good choices. Just choose what’s best for you and your family and be confident knowing that the right choice is always to eat more fruits and veggies.
And, now there is yet another new study that shows the dramatic impact fruits and vegetables can have on health and longevity. Millions can live longer, healthier lives simply by eating more apples or spinach or strawberries or pears or broccoli. Listen to the science, it supports your choice whenever you eat a fruit or veggie.
During the next couple of months Mexican asparagus will be crossing the border at someplace besides Nogales….Also, 2017 closed out the year with some record setting trucking freight rates in the U.S.
Asparagus out of the Mexico’s Caborca region in northern Sonora, Mexico will be crossing the U.S. during February and March. Volume is expected to increase 15 percent over last year. Quality is reported to be good.
“The weather in the Caborca region has been excellent and pending continued good weather, we anticipate promotable quantities in February and March in a full range of sizes,” said Katiana Valdes of Crystal Valley Foods of Miami in a news release. The company is a grower/shipper and importer. Mexican asparagus is imported as product from Peru comes to a seasonal low. The Mexcian “grass” crosses the border into the U.S. through San Luis, AZ, located just south of Yuma.
Yuma vegetables – grossing about $8700 to New York City.
Record December Freight Rates are Reported
According to a press release by DAT, a load board, freight rate and trucking trends company, the average reefer rate for December was $2.46 per mile, 3 cents higher than the November average and another all-time high. Spot truckload van rates averaged $2.11 per mile nationally, up 4 cents compared to November and the highest monthly average since DAT started tracking freight rates in 2010.
Truckload freight availability in December was cushioned by retail shipments, demand for fresh and frozen foods, and e-commerce fulfillment. Available truckload freight was 25 percent higher than in December 2016.
However, overall freight volume in December fell 3 percent compared to a strong November, according to the release. Some of the factors in that decline were inclement weather in parts of the U.S and the December 18th electronic logging device mandate. That combination of strains on equipment and drivers meant that shippers and freight brokers paid premiums for available trucks.
Overall citrus shipments from the nation’s three leading states are expected to be lower this season for various reasons.
California citrus shipments of navel oranges and lemons will be down this season. It also means lighter than normal loadings towards the end of the season, and perhaps shipments ending sooner than usual.
California is expected to ship 35 million boxes of navel oranges, down 11 percent from the 2016-17 season. While California lemon volume should remain about this same this season at about 20.5 million boxes, it will be lower than normal.
Southern California citrus – grossing about $8000 to New York City.
Florida Citrus Shipments
In Texas, grapefruit has received a lot of interest after Hurricane Irma significantly reduced volume from Florida. Florida will probably ship about 4.65 million boxes of grapefruit, down more than 40 percent from the 2016-17 season. Florida grower-shippers have had a tough time, with Hurricane Irma estimated to have caused at least $760 million in losses to the citrus industry there.
Shipments are down 40 percent to 55 percent depending on grove location. Quality also has been an issue due the hurricane winds that really beat up the fruit, as well as weakening the trees.
Imports from Mexico and Morocco have resulted in Seald Sweet of Vero Beach, FL filling gaps left by Florida citrus, and the company has been bringing imported fruit into its Florida packinghouse.
Duda Farm Fresh Foods of Oviedo, FL reports its orange volume is down an estimated 29 percent, grapefruit off by 65 percent and tangerines and mandarins plunging by 80 percent. Duda’s grapefruit shipments that usually continue into March, ended in early January.
Duda has an import program as well, including clementines from Morocco.
Texas Citrus Shipments
Texas grapefruit shipping estimates have been lowered from 5.3 million boxes to 4.1 million boxes. Shipments are ahead of estimates, with about 56 percent of the overall crop remaining to be shipped, compared to 68 percent the same time in 2017. Loadings by truck, however, should stay strong through the spring.
Lower Rio Grande Valley citrus – grossing about $3400 to Chicago.
By Alliance for Food and Farming
A new peer-reviewed study published in the International Journal of Epidemiology found that by eating more fruits and veggies, an estimated 5.6 and 7.8 million premature deaths worldwide could be prevented. Further the study concludes:
Fruit and vegetable intakes were associated with reduced risk of cardiovascular disease, cancer and all-cause mortality. These results support public health recommendations to increase fruit and vegetable intake for the prevention of cardiovascular disease, cancer, and premature mortality.
This study is yet another example of the decades of nutritional research that overwhelmingly show the benefits of all genders and all age groups eating more fruits and veggies for better health and a longer life. For children, specifically, there are also numerous studies showing the benefits of fruit and veggie consumption on cognitive health too as their young brains develop.
Ironically this study was published at the same time that the Centers for Disease Control released a new report which showed only only one in 10 Americans are eating enough fruits and veggies each day.
While there are often cited reasons that we aren’t eating enough fruits and veggies, it is becoming quite clear public health initiatives to increase consumption are being undermined by groups who use fear to promote eating only certain types of produce grown in certain ways. This fear-based messaging used by these groups often disparages the more affordable and accessible produce available to most Americans and may result in low income consumers being less likely to purchase any produce — organically or conventionally grown.
But, at the AFF we believe supporting consumer choice also promotes increased consumption. Whether you prefer organic, conventional or local produce or if you like to shop at warehouse stores, traditional grocery stores, farmers markets or via online home delivery services – these are all good choices. Just choose what is best for you and your family and be confident knowing that the right choice is always to eat more fruits and veggies.
And, now there is yet another new study that shows the dramatic impact fruits and veggies can have on health and longevity. Millions can live longer, healthier lives simply by eating more apples or spinach or strawberries or pears or broccoli. Listen to the science – it supports your choice whenever you eat a fruit or veggie.
T
here’s a lot of talk about soaring truck rates, including produce, and how long these levels will last, considering January is typically one of the poorest months for decent rates. Nobody really knows, so it is going to be very interesting once spring produce volume starts kicking in with March.
In January, some truck rates exceeded $10,000 from the Imperial Valley of California to New York City. This compares to a $6,000 to $6,200 rate in January 2017. Two years ago, the rates were $5,800 to $6,000 to New York.
Florida has a similar situation where produce rates from central and south Florida to Baltimore were up 30 percent a week ago compared with the previous week, grossing $2,700 to$2,900. The same time a year ago those rates were $1,900 to $2,200, and $2,100 to $2,200 two years ago.
While Florida volume is seasonally low compared to what it will be in April and May, product is moving fast partly because the Sunshine State has a significant freight advantage over Mexican vegetable shipments to many eastern seaboard markets.
In the Red River Valley of North Dakota and Minnesota a bumper red potato crop is 46 percent larger than a year ago. Yet some observers believe potato shipments could be up to 20 percent more if the trucks were available.
Potato rates from Grand Forks, MN are $3 per hundred weight (cwt) higher than last year to South Florida, putting the gross freight rate at $6000. Rates to Boston from the valley are up $2 per cwt. and $2.50 to Chicago.
Significant credit has to be given President Trump cutting regulations, as well as the recent tax bill which is helping spur the economy. Business is booming for many. This has increased demands for transportation services, plus there is a scarcity of qualified drivers, leaving many shippers scrambling to ship sold product. There also are the adverse consequences of the electronic logging device mandate, making it difficult if not impossible to fudge on hours of service.
Many see a need for changes in hours of service. For example, time spent waiting at loading docks counts against operating hours. Produce is a supply and demand business and demand simply is outstripping the supply of available drivers.
Record Cargo volume in the coming years is projected for the Port of Oakland in Oakland, CA with one of the key projects being construction of a $90 million “Cool Port.”
Officials at the Port of Oakland have several construction projects designed for attracting additional business and reaching record cargo volume starting this year.
Additional containerized cargo in 2018 is predicted and continuing through 2022, a news release states.
“I’m forecasting growth because of the development that’s going on here,” said Maritme director John Driscoll. “It won’t be dramatic, but it will be steady and will result in more cargo volume than we’ve ver had before.”
Driscoll said three international shipping lines are considering making Port of Oakland their first call due to recent port improvements. Any of them making the switch would increase cargo volume, according to the press release.
Projects drawing the most interest, according to the news release:
- Cranes: Four ship-to-shore cranes at the Oakland International Container Terminal are being lifted by 27 feet to accommodate megaship loading and unloading, at a cost of $14 million to $20 million. The second crane was lifted by the end 2017, with work on the other two finishing up in mid-2018;
- Cool Port Oakland: Cool Port will process beef and poultry exports in a 280,000-square-foot refrigerated distribution center that is expected to handle 27,000 20-foot equivalent units of meat each year. The $90 million facility should open next August;
- Seaport Logistics Complex: Construction of a $52 million, 440,000-square-foot transloading facility is expected to start in late 2018; and
- Truck service center: An 8-acre facility with food stops, fueling stations and overnight parking for harbor drivers is still in the negotiation stage.
The Port of Oakland reported total volume of 2.37 million 20-foot equivalent units in 2016, and in 2017earlier this year projected it would handle 2.6 million containers by 2022, according to the news release.
Dozens of different types of produce items, led by vegetables, represent crossings at the Mexican border into Nogales, AZ, as well as into the Lower Rio Grande Valley of Texas. While produce haulers are feasting on higher freight rates, produce shippers are hoping freight costs will subside soon.
Last week rates on Mexican produce coming through Nogales were higher for some destinations with driver and equipment shortages reported. For example rates from Nogales to Los Angeles were generally ranging from$1,800 to $2,000 per load, a 6 percent increase from a week earlier, but 50 percent higher than the $1,200 rate at the same time during the past two years.
A few rates exceeded $10,000 from Nogales to New York City last week, but recently have dropped as much as 15 percent.
Tomatoes (all types) are providing the heaviest volume at around 1,150 truck loads a weeks. About 900 truck loads of cucumbers are crossing the border each week with squash and bell peppers also having good volume.
Shipments Through South Texas
In the Lower Rio Grande Valley of Texas some shippers can’t remember such serious truck shortages for this time of the year. One citrus shipper needed 20 trucks to cover his loads a couple of weeks ago. For a six-week period ending with the first week of January, rates for citrus from the valley to L.A. have soared from $2700 to $5500. Overall, South Texas produce rates are generally up about 20 percent from a year ago.
Produce rates from South Texas to Chicago have been ranging from $4000 to $5000, with the average being around $4500, still quite a strong rate. Produce haulers were grossing around $8800 to New York City.
Mexican tomatoes are providing the heaviest volume with about 1000 truck loads a week, with avocados about one-half this volume. Other leading items range from limes to various types of tomatoes and broccoli.
South Texas grapefruit and oranges are averaging about 350 truck loads each week.
Columbian imported avocados are being introduced to the United States…Meanwhile, it is springtime in Chile and it’s that time of the year for arrivals of Chilean grapes and well as other fruits.
Last August the USDA approved hass avocados imports by the U.S. from Colombia. It won’t be heavy volume for sure but observers see slow, but steady increases in 2018. Colombian agriculture officials said in a news release that hass exports will start this month from a farm near Antioquia, a production area that has been approved for exports to the U.S.
Hass avocado exports from Colombia will increase by 20 percent to Europe and North America, according to the officials with the Colombian Agricultural and Livestock Institute. The USDA reports through November 2017, imports of Columbian avocados totaled 29,300 metric tons.
The Columbian institute works with 33 hass avocado production sites including buffer areas. After complying with plant health requirements put in place by USDA and Colombian officials, all those sites will be authorized to export to the U.S.
Chilean Fruit Imports
California grape shipments to U.S. markets are on their last leg. Quality has been variable in recent weeks although plenty of pretty sweet grapes have been loaded for this late in the season. As California finishes up it season, Chilean import grapes are already arriving by boat at U.S. ports, but at this point mostly at Philadelphia. As fruit volume increases from Chile, other ports such as those at Los Angeles will begin receiving product. It is early in the Chilean grape season and around 375 truckloads of the fruit are arriving weekly, but volume is increasing with the majority of the volume coming during the next couple of months. Chilean peaches and plums also are coming in by boat, but in very light volume that also is increasing.
(Photo was taken by Bill Martin in January 1992 on a trip to Chile. It was photographed at a grape packing plant in Northern Chile.)
By Procomer
Building on several years of increasing produce exports, Costa Rica foresees a strong 2018 as exporters continue to offer an increasingly diverse supply of produce items as well as the capacity to meet new regulatory requirements.
Statistics thru October 2017 (the latest officially available) show Costa Rica exported close to US$2.4 billion in agricultural exports to the world, a growth of 4% compared to the same period in 2016. The United States remains the main destination country with US$1.09 billion from January to October of 2017.
“Costa Rica remains a strong, reliable and versatile exporter of produce,” says Pedro Beirute, CEO of Procomer (Costa Rica’s trade promotion agency). “We expect to close out 2017 with over US$2.7 billion in ag exports.”
Led by the banana and pineapple industry, Costa Rica’s exports to the world continue to grow and diversify and include strong offerings in yucca, melons, chayote, and other fruits. Procomer export statistics indicate banana export volume increased over 25% from 2015 to 2017, pineapple by almost 14%, yucca by 12%, watermelon by 57%, and chayote by 33%. “We expect growth in these highly demanded products to continue in 2018,” says Beirute.
Costa Rica looks to tropical and exotic product growth in 2018. “The U.S. marketplace continues to demand new and unique products due to the increase in ethnic diversity in the population as well as U.S. consumers expanding pallet,” says Beirute. “As consumers seek out more tropical, exotic and ethnic items, Costa Rica will play a key role in providing some of this high quality, reliable supply. With more than 145 varieties of fruits and vegetables and more than 365 exporters shipping to the U.S., Costa Rica represents a wealth of potential products for any market.”
Particularly on the future radar for greater development in export offerings are ginger, rambutan, a variety of specialty melons, beets, cabbage, carrots, pumpkin, root products, and more organics. “Costa Rican exporters have long been characterized as serious, trustworthy, professional partners,” says Beirute. “It only makes sense for U.S. buyers to look a country with our track record of reliability and quality as they seek more and new products.”
The coming months should be good for hauling imported Chilean grapes arriving at U.S. ports on both coasts….Meanwhile, a number of specialty produce items are popular for the Chinese New Year celebrated in February.
Imported Chilean grapes are expected to be arriving at U.S. ports with more volume than in recent years, although arrivals this winter started about a week or two later than a year ago, when arrivals were earlier than normal.
Imports to North America from Chile continues to increase accounting for a larger share of the volume. About 39,000 tons had been shipped this season from Chile through early January, down from 79,000 at the same time last year. But as mentioned, the grapes matured later this season in Chile.
Observers believe the overall grape volume will exceed 90-million cartons, which would be slightly more than average. Arrivals are now coming in good volume, with a steady flow of produce continuing through April. For several years, North American imports have accounted for about 45 percent of the Chilean grapes, that number has been approach 50 percent more recently.
Chinese New Year items
Specialty produce items popular for Chinese New Year promotions should be in good supply for the weeks surrounding the February 16 holiday. The holiday festival itself lasts for two weeks celebrating the Year of the Dog.
Among the items that will be shipped are ginger, bok choy, gai lan and other Asian vegetables, as well as citrus items such as pummelo, kumquats and Buddha’s hand, dragonfruit and young coconut, as well as Snow peas and snap peas. Other items sometimes connected to the holiday are Turmeric, Chinese long beans, daikon, starfruit, jackfruit, yu choy and lokam oranges.
World Variety Produce of Los Angeles markets under the Melissa’s brand and is one of the largest shippers of specialty produce items in the U.S. The company is sourcing leafy greens from California, other vegetables from Mexico and fruit from tropical areas.
Thomas Fresh of Calgary, Alberta is a produce repacker who handles produce specialty an other fresh items.
(Photo was taken by Bill Martin during an 11-day trip Chile in January 1992.)
By Alliance for Food and Farming
A new peer-reviewed study published in the International Journal of Epidemiology found that if we consumed diets higher in fruits and vegetables, an estimated 5.6 and 7.8 million premature deaths worldwide could be prevented. Further the study concludes:
Fruit and vegetable intakes were associated with reduced risk of cardiovascular disease, cancer and all-cause mortality. These results support public health recommendations to increase fruit and vegetable intake for the prevention of cardiovascular disease, cancer, and premature mortality.
This study is yet another example of the decades of nutritional research that overwhelmingly show the benefits of all genders and all age groups eating more fruits and veggies for better health and a longer life. For children, specifically, there are also numerous studies that show the benefits of fruit and veggie consumption on cognitive health too as their young brains develop.
Ironically this study was published at the same time that the Centers for Disease Control released a new report which showed only one in 10 Americans are eating enough fruits and vegetables each day.
While there are often cited reasons that we aren’t eating enough fruits and veggies, it is becoming quite clear that public health initiatives to increase consumption are being undermined by groups who use fear to promote eating only certain types of produce grown in certain ways. This fear-based messaging used by these groups often disparages the more affordable and accessible produce available to most Americans and may result in low income consumers being less likely to purchase any produce organically or conventionally grown, according to perry-reviewed studies.
But, at the AFF we believe supporting consumer choice also promotes increased consumption. Whether you prefer organic, conventional or local produce or if you like to shop at warehouse stores, traditional grocery stores, farmer’s markets or via online home delivery services, these are all good choices. Just choose what’s best for you and your family and be confident knowing that the right choice is always to eat more fruits and veggies.
And, now there is yet another new study that shows the dramatic impact fruits and vegetables can have on health and longevity. Millions can live longer, healthier lives simply by eating more apples or spinach or strawberries or pears or broccoli. Listen to the science, it supports your choice whenever you eat a fruit or veggie.
During the next couple of months Mexican asparagus will be crossing the border at someplace besides Nogales….Also, 2017 closed out the year with some record setting trucking freight rates in the U.S.
Asparagus out of the Mexico’s Caborca region in northern Sonora, Mexico will be crossing the U.S. during February and March. Volume is expected to increase 15 percent over last year. Quality is reported to be good.
“The weather in the Caborca region has been excellent and pending continued good weather, we anticipate promotable quantities in February and March in a full range of sizes,” said Katiana Valdes of Crystal Valley Foods of Miami in a news release. The company is a grower/shipper and importer. Mexican asparagus is imported as product from Peru comes to a seasonal low. The Mexcian “grass” crosses the border into the U.S. through San Luis, AZ, located just south of Yuma.
Yuma vegetables – grossing about $8700 to New York City.
Record December Freight Rates are Reported
According to a press release by DAT, a load board, freight rate and trucking trends company, the average reefer rate for December was $2.46 per mile, 3 cents higher than the November average and another all-time high. Spot truckload van rates averaged $2.11 per mile nationally, up 4 cents compared to November and the highest monthly average since DAT started tracking freight rates in 2010.
Truckload freight availability in December was cushioned by retail shipments, demand for fresh and frozen foods, and e-commerce fulfillment. Available truckload freight was 25 percent higher than in December 2016.
However, overall freight volume in December fell 3 percent compared to a strong November, according to the release. Some of the factors in that decline were inclement weather in parts of the U.S and the December 18th electronic logging device mandate. That combination of strains on equipment and drivers meant that shippers and freight brokers paid premiums for available trucks.
Overall citrus shipments from the nation’s three leading states are expected to be lower this season for various reasons.
California citrus shipments of navel oranges and lemons will be down this season. It also means lighter than normal loadings towards the end of the season, and perhaps shipments ending sooner than usual.
California is expected to ship 35 million boxes of navel oranges, down 11 percent from the 2016-17 season. While California lemon volume should remain about this same this season at about 20.5 million boxes, it will be lower than normal.
Southern California citrus – grossing about $8000 to New York City.
Florida Citrus Shipments
In Texas, grapefruit has received a lot of interest after Hurricane Irma significantly reduced volume from Florida. Florida will probably ship about 4.65 million boxes of grapefruit, down more than 40 percent from the 2016-17 season. Florida grower-shippers have had a tough time, with Hurricane Irma estimated to have caused at least $760 million in losses to the citrus industry there.
Shipments are down 40 percent to 55 percent depending on grove location. Quality also has been an issue due the hurricane winds that really beat up the fruit, as well as weakening the trees.
Imports from Mexico and Morocco have resulted in Seald Sweet of Vero Beach, FL filling gaps left by Florida citrus, and the company has been bringing imported fruit into its Florida packinghouse.
Duda Farm Fresh Foods of Oviedo, FL reports its orange volume is down an estimated 29 percent, grapefruit off by 65 percent and tangerines and mandarins plunging by 80 percent. Duda’s grapefruit shipments that usually continue into March, ended in early January.
Duda has an import program as well, including clementines from Morocco.
Texas Citrus Shipments
Texas grapefruit shipping estimates have been lowered from 5.3 million boxes to 4.1 million boxes. Shipments are ahead of estimates, with about 56 percent of the overall crop remaining to be shipped, compared to 68 percent the same time in 2017. Loadings by truck, however, should stay strong through the spring.
Lower Rio Grande Valley citrus – grossing about $3400 to Chicago.
By Alliance for Food and Farming
A new peer-reviewed study published in the International Journal of Epidemiology found that by eating more fruits and veggies, an estimated 5.6 and 7.8 million premature deaths worldwide could be prevented. Further the study concludes:
Fruit and vegetable intakes were associated with reduced risk of cardiovascular disease, cancer and all-cause mortality. These results support public health recommendations to increase fruit and vegetable intake for the prevention of cardiovascular disease, cancer, and premature mortality.
This study is yet another example of the decades of nutritional research that overwhelmingly show the benefits of all genders and all age groups eating more fruits and veggies for better health and a longer life. For children, specifically, there are also numerous studies showing the benefits of fruit and veggie consumption on cognitive health too as their young brains develop.
Ironically this study was published at the same time that the Centers for Disease Control released a new report which showed only only one in 10 Americans are eating enough fruits and veggies each day.
While there are often cited reasons that we aren’t eating enough fruits and veggies, it is becoming quite clear public health initiatives to increase consumption are being undermined by groups who use fear to promote eating only certain types of produce grown in certain ways. This fear-based messaging used by these groups often disparages the more affordable and accessible produce available to most Americans and may result in low income consumers being less likely to purchase any produce — organically or conventionally grown.
But, at the AFF we believe supporting consumer choice also promotes increased consumption. Whether you prefer organic, conventional or local produce or if you like to shop at warehouse stores, traditional grocery stores, farmers markets or via online home delivery services – these are all good choices. Just choose what is best for you and your family and be confident knowing that the right choice is always to eat more fruits and veggies.
And, now there is yet another new study that shows the dramatic impact fruits and veggies can have on health and longevity. Millions can live longer, healthier lives simply by eating more apples or spinach or strawberries or pears or broccoli. Listen to the science – it supports your choice whenever you eat a fruit or veggie.
There’s a lot of talk about soaring truck rates, including produce, and how long these levels will last, considering January is typically one of the poorest months for decent rates. Nobody really knows, so it is going to be very interesting once spring produce volume starts kicking in with March.
In January, some truck rates exceeded $10,000 from the Imperial Valley of California to New York City. This compares to a $6,000 to $6,200 rate in January 2017. Two years ago, the rates were $5,800 to $6,000 to New York.
Florida has a similar situation where produce rates from central and south Florida to Baltimore were up 30 percent a week ago compared with the previous week, grossing $2,700 to$2,900. The same time a year ago those rates were $1,900 to $2,200, and $2,100 to $2,200 two years ago.
While Florida volume is seasonally low compared to what it will be in April and May, product is moving fast partly because the Sunshine State has a significant freight advantage over Mexican vegetable shipments to many eastern seaboard markets.
In the Red River Valley of North Dakota and Minnesota a bumper red potato crop is 46 percent larger than a year ago. Yet some observers believe potato shipments could be up to 20 percent more if the trucks were available.
Potato rates from Grand Forks, MN are $3 per hundred weight (cwt) higher than last year to South Florida, putting the gross freight rate at $6000. Rates to Boston from the valley are up $2 per cwt. and $2.50 to Chicago.
Significant credit has to be given President Trump cutting regulations, as well as the recent tax bill which is helping spur the economy. Business is booming for many. This has increased demands for transportation services, plus there is a scarcity of qualified drivers, leaving many shippers scrambling to ship sold product. There also are the adverse consequences of the electronic logging device mandate, making it difficult if not impossible to fudge on hours of service.
Many see a need for changes in hours of service. For example, time spent waiting at loading docks counts against operating hours. Produce is a supply and demand business and demand simply is outstripping the supply of available drivers.
Record Cargo volume in the coming years is projected for the Port of Oakland in Oakland, CA with one of the key projects being construction of a $90 million “Cool Port.”
Officials at the Port of Oakland have several construction projects designed for attracting additional business and reaching record cargo volume starting this year.
Additional containerized cargo in 2018 is predicted and continuing through 2022, a news release states.
“I’m forecasting growth because of the development that’s going on here,” said Maritme director John Driscoll. “It won’t be dramatic, but it will be steady and will result in more cargo volume than we’ve ver had before.”
Driscoll said three international shipping lines are considering making Port of Oakland their first call due to recent port improvements. Any of them making the switch would increase cargo volume, according to the press release.
Projects drawing the most interest, according to the news release:
- Cranes: Four ship-to-shore cranes at the Oakland International Container Terminal are being lifted by 27 feet to accommodate megaship loading and unloading, at a cost of $14 million to $20 million. The second crane was lifted by the end 2017, with work on the other two finishing up in mid-2018;
- Cool Port Oakland: Cool Port will process beef and poultry exports in a 280,000-square-foot refrigerated distribution center that is expected to handle 27,000 20-foot equivalent units of meat each year. The $90 million facility should open next August;
- Seaport Logistics Complex: Construction of a $52 million, 440,000-square-foot transloading facility is expected to start in late 2018; and
- Truck service center: An 8-acre facility with food stops, fueling stations and overnight parking for harbor drivers is still in the negotiation stage.
The Port of Oakland reported total volume of 2.37 million 20-foot equivalent units in 2016, and in 2017earlier this year projected it would handle 2.6 million containers by 2022, according to the news release.
Dozens of different types of produce items, led by vegetables, represent crossings at the Mexican border into Nogales, AZ, as well as into the Lower Rio Grande Valley of Texas. While produce haulers are feasting on higher freight rates, produce shippers are hoping freight costs will subside soon.
Last week rates on Mexican produce coming through Nogales were higher for some destinations with driver and equipment shortages reported. For example rates from Nogales to Los Angeles were generally ranging from$1,800 to $2,000 per load, a 6 percent increase from a week earlier, but 50 percent higher than the $1,200 rate at the same time during the past two years.
A few rates exceeded $10,000 from Nogales to New York City last week, but recently have dropped as much as 15 percent.
Tomatoes (all types) are providing the heaviest volume at around 1,150 truck loads a weeks. About 900 truck loads of cucumbers are crossing the border each week with squash and bell peppers also having good volume.
Shipments Through South Texas
In the Lower Rio Grande Valley of Texas some shippers can’t remember such serious truck shortages for this time of the year. One citrus shipper needed 20 trucks to cover his loads a couple of weeks ago. For a six-week period ending with the first week of January, rates for citrus from the valley to L.A. have soared from $2700 to $5500. Overall, South Texas produce rates are generally up about 20 percent from a year ago.
Produce rates from South Texas to Chicago have been ranging from $4000 to $5000, with the average being around $4500, still quite a strong rate. Produce haulers were grossing around $8800 to New York City.
Mexican tomatoes are providing the heaviest volume with about 1000 truck loads a week, with avocados about one-half this volume. Other leading items range from limes to various types of tomatoes and broccoli.
South Texas grapefruit and oranges are averaging about 350 truck loads each week.
Columbian imported avocados are being introduced to the United States…Meanwhile, it is springtime in Chile and it’s that time of the year for arrivals of Chilean grapes and well as other fruits.
Last August the USDA approved hass avocados imports by the U.S. from Colombia. It won’t be heavy volume for sure but observers see slow, but steady increases in 2018. Colombian agriculture officials said in a news release that hass exports will start this month from a farm near Antioquia, a production area that has been approved for exports to the U.S.
Hass avocado exports from Colombia will increase by 20 percent to Europe and North America, according to the officials with the Colombian Agricultural and Livestock Institute. The USDA reports through November 2017, imports of Columbian avocados totaled 29,300 metric tons.
The Columbian institute works with 33 hass avocado production sites including buffer areas. After complying with plant health requirements put in place by USDA and Colombian officials, all those sites will be authorized to export to the U.S.
Chilean Fruit Imports
California grape shipments to U.S. markets are on their last leg. Quality has been variable in recent weeks although plenty of pretty sweet grapes have been loaded for this late in the season. As California finishes up it season, Chilean import grapes are already arriving by boat at U.S. ports, but at this point mostly at Philadelphia. As fruit volume increases from Chile, other ports such as those at Los Angeles will begin receiving product. It is early in the Chilean grape season and around 375 truckloads of the fruit are arriving weekly, but volume is increasing with the majority of the volume coming during the next couple of months. Chilean peaches and plums also are coming in by boat, but in very light volume that also is increasing.
(Photo was taken by Bill Martin in January 1992 on a trip to Chile. It was photographed at a grape packing plant in Northern Chile.)
By Procomer
Building on several years of increasing produce exports, Costa Rica foresees a strong 2018 as exporters continue to offer an increasingly diverse supply of produce items as well as the capacity to meet new regulatory requirements.
Statistics thru October 2017 (the latest officially available) show Costa Rica exported close to US$2.4 billion in agricultural exports to the world, a growth of 4% compared to the same period in 2016. The United States remains the main destination country with US$1.09 billion from January to October of 2017.
“Costa Rica remains a strong, reliable and versatile exporter of produce,” says Pedro Beirute, CEO of Procomer (Costa Rica’s trade promotion agency). “We expect to close out 2017 with over US$2.7 billion in ag exports.”
Led by the banana and pineapple industry, Costa Rica’s exports to the world continue to grow and diversify and include strong offerings in yucca, melons, chayote, and other fruits. Procomer export statistics indicate banana export volume increased over 25% from 2015 to 2017, pineapple by almost 14%, yucca by 12%, watermelon by 57%, and chayote by 33%. “We expect growth in these highly demanded products to continue in 2018,” says Beirute.
Costa Rica looks to tropical and exotic product growth in 2018. “The U.S. marketplace continues to demand new and unique products due to the increase in ethnic diversity in the population as well as U.S. consumers expanding pallet,” says Beirute. “As consumers seek out more tropical, exotic and ethnic items, Costa Rica will play a key role in providing some of this high quality, reliable supply. With more than 145 varieties of fruits and vegetables and more than 365 exporters shipping to the U.S., Costa Rica represents a wealth of potential products for any market.”
Particularly on the future radar for greater development in export offerings are ginger, rambutan, a variety of specialty melons, beets, cabbage, carrots, pumpkin, root products, and more organics. “Costa Rican exporters have long been characterized as serious, trustworthy, professional partners,” says Beirute. “It only makes sense for U.S. buyers to look a country with our track record of reliability and quality as they seek more and new products.”