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A USDA crop production report predicts U.S. apple shipments will be down 7 percent compared to last season.
The apple crop (both fresh and processed uses) should total 248.6 million 42-pound cartons, off from the 268.4 million cartons in the 2016 season. year ago.
On the up side, apple shipments from the Eastern state will increase. However, a significant decline in apple volume is predicted for the Central U.S. states, while a moderate decrease is seen in Western growing regions.
The Western states, led by Washington, are projected to total 170.4 million cartons, down 9 percent from a year ago, according to the estimates. The Washington apple harvest is running a few weeks later than 2016, according to the USDA, with good quality but slightly smaller fruit expected compared with the 2016 crop.
Washington state apple shipments are pegged at 159.5 million cartons, off 9 percent from the 2016 crop of 174.3 million cartons. The state is expected tol account for 64 percent of total U.S. apple shipments in 2017, down from 65 percnt in 2016.
In Eastern U.S. states, apple loadings are forecast at 55.7 million cartons, up 8 percent from 2016. New York, accounting for half of Eastern apple shipments, has a crop of 28.5 million cartons, up slightly from 28.1 million cartons a year ago. Growers and shippers there reported localized hail damage and noted rainfall and cool temperatures could affect fruit size, according to the report.
Apple shipments in the Central U.S. is forecast at 22.5 million cartons, down 27 percent from a year ago. A freeze in early May hurt Michigan crop prospects, according to the USDA. Michigan’s crop is projected at 19 million cartons, down more than 30 percent from 2016 output of nearly 28 million cartons.
In its Agricultural Prices report, the USDA said the average grower price for apples in June was 36.3 cents per pounds, down from 38 cents per pound in June last year.
The U.S. Apple Association will release its annual crop production estimate during the Apple Crop Outlook & Marketing Conference Aug. 24-25 in Chicago
The ports of Manatee and Oakland are having record-setting years, with much of that success coming from produce imports.
Port of Manatee
The Port of Manatee’s container volume already has handled as volume in 10 has it has totaled in a record setting 12-month year..
The Florida-based port has moved 32,907 20-foot-equivalent (TEU) container units since October 1st, surpassing the full-year record of 30,431 TEUs, which was set in the fiscal year ending Sept. 30, 2010.
A news release from Port Manatee points out the record-setting container volume represents a 47 percent increase over the first 10 months of the preceding fiscal year.
The increase is primarily attributed to Del Monte Fresh Produce N.A. switching from breakbulk shipping to containers for imports of Central American pineapple and bananas, as well as to the success of World Direct’s weekly shipping service which transports refrigerated produce from Mexico.
“We are excited to have already set a new container record for Port Manatee and are further encouraged this favorable trend is anticipated to be sustained for a long time,” Carlos Buqueras, Port Manatee’s executive director, said in the release.
The port’s tonnage also increased in the first 10 months of its fiscal year, topping last fiscal year’s numbers by 17 percent.
Port of Oakland
A record for import cargo in July has been set by The Port of Oakland.
The port handled 84,835 loaded 20-foot import containers in July, which tops the previous record of 84,023 containers set in March 2015.
A press release from the California port shows import volume through the first seven months of the year was also up 3.7 percent over the same time last year.
Looking ahead, Port of Oakland leaders believey they foresee a five-year period of record cargo volume beginning in 2018.
That prediction comes from the recently released Strategic Maritime Roadmap. The roadmap forecasts a record volume of 2.4 million cargo containers in 2018.
The roadmap also predicts greater volumes arriving on larger ships driven by Northern California’s robust freight market along with new distribution and freight transfer centers. The document predicts ships will be 35 percent larger within 15 years.
“We’re serving a thriving area and developing new services for our customers,” Oakland’s maritime director John Driscoll said. “The combination should be positive for everyone who relies on the port for their business or their job.”
Salinas Valley lettuce shipments continue with less ups and down in volume. Meanwhile, San Joaquin Valley table grape shipments will enter it biggest volume period of the season starting in September.
After a rocky start last spring hauling head lettuce and leaf lettuce out of the Salinas Valley, shipments have become more reliable and steady in the second half of the season.
However, there seems to be less overall volume this year, due in part to the stormy, water deluged fields earlier this year, and the fact a number of head or Iceberg major growers reduced acreage, in part because of the weather and partly due to past low prices. Those can result from over production, but just as importantly a lot of homegrown and eastern commercial operations are in full production from the Northeastern U.S. and eastern Canada.
Salinas Iceberg shippers are averaging over 1200 truck loads of product a week, and over 900 truck loads of romaine.
Leaf Lettuce Shipments
Spring plantings of leaf lettuce were erratic in a similar fashion to head lettuce. Items such a romaine, as well green and red leaf lettuce shipments haven’t been exceptional this season out of Salinas. There are freight advantages for buyers on the East Coast sourcing product much closer to home than California. As a result, a lot of California lettuce shipments are limited to the Western U.S.
Salinas Valley lettuce shipments, as well as broccoli, cauliflower and other vegetables – grossing about $4100 to Dallas, $7000 to New York City.
Grape Shipments
A generally hot weather pattern in the San Joaquin Valley since May apparently hasn’t hurt table grape quality, but if it continues could affect the quality of product being distributed around the country – particularly with red grapes and black grapes. It’s not unusual for the valley to have hot spells in summer, but not stretching out this long.
California growers are expected to ship 111.4 million 19-pound boxes of grapes this season topping last season’s nearly 109 million boxes. Over 60 percent of the volume will be shipped after September 1st.
San Joaquin Valley grapes, stone fruit and apples – grossing about $4600 to Chicago.
Wal-Mart will build a distribution center for fresh produce and other perishable items with land acquired from Port Canaveral in Florida.
Final approval of the sale of 271 acres of land to Wal-Mart Stores East LP was recently granted by the board for Florida’s Port Canaveral, according to a news release. Terms of the transaction were not revealed.
The port had acquired the land on State Road 524 near Interstate 95 in Cocoa, in December 2014 at a cost of $1.95 million, according to the release. Originally, the port had plans to develop the area into a cargo distribution complex.
However, discussions that began in 2016 between the Canaveral Port Authority and Wal-Mart Stores resulted in a change in plans.
The port will use proceeds from the sale of the acreage to reduce debt, increase monetary reserves and address capital improvements.
According to a statement released by Wal-Mart last year, the retailer planned to use the ground to open a distribution center and refrigerated warehouse complex that will store fresh produce and other perishables and staff more than 200.
“Ultimately, Port Canaveral hopes to realize some economic benefit once the distribution center is complete and operational by way of increased cargo business through the port from Wal-Mart,” Canaveral Port commission chairman Tom Weinberg said in the release. “The Port views this sale as a win-win for the region as a whole, as it stands to prosper from the distribution center, the first of several proposed development projects which could revitalize the SR 524 corridor and the surrounding communities.”
About Wal-Mart
What started small, with a single discount store and the simple idea of selling more for less, has grown over the last 50 years into the largest retailer in the world. Each week, over 260 million customers and members visit the company’s 11,695 stores under 59 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2017 revenue of $485.9 billion, Walmart employs approximately 2.3 million associates worldwide.
Stone or soft fruit shipments from Washington state are peaking. Meanwhile, here’s a round up mango shipments from key countries.
As the Washington state summer soft fruit shipping season enters final months, peak loadings are now underway for the next month.
For example, Stemilt Growers LLC of Wentachee, WA will be peaking with shipment of Artisan Organic peaches and nectarines that started in late July.
Based in south central Washington state, Artisan Organics peaches and nectarines are grown in arid and almost desert-like climates. These climates coincide with warm days, which allow peaches and nectarines to achieve high sugar levels and cool nights that allow the tree to rest and give stone fruit the opportunity to establish beautiful coloring. The climate combined with volcanic soils gives peaches and nectarines the necessary nutrients to flourish.
The company’s Douglas family transistioned to growing organic fruit about a decade ago.
Washington stone fruit, apples and pears – grossing about $4800 to Chicago.
Mango Update
by National Mango Board
The Mango Crop Report from the National Mango Board has been updated.
Mango volume shipped on week ending 7/29/17 was approximately 3.2 million boxes.
- During the same week last year, volume shipped was approximately 2.9 boxes.
Mexico Mango Shipments
- Mexican mango shipping season began in January and will run until October with a projection of approximately 74 million boxes.
Volume on week ending 7/29/17
- Volume shipped from Mexico was approximately 3.2 million boxes for a total of 62 million boxes for the season.
- During the same week last year, volume shipped from Mexico was approximately 2.9 million boxes for a total of 60.4 million boxes.
Haiti Mango Crop
- The Haitian season began in March and will ran until August with a projection of approximately 2.1 million boxes.
Volume on week ending 7/29/17
- Volume shipped from Haiti was approximately 5,053 boxes for a total of 2.2 million boxes for the season. During the same week last year, volume shipped from Haiti was not available.
Brazil Mango Crop
- The Brazilian season will begin in August and will run until November with a projection of 7.8 million boxes.
Please note:
- U.S. entry ports report incoming mango volume on different schedules; some report daily and some weekly. This will cause discrepancies between the volume shipped from the source and the volume arrived at the U.S. entry ports in any given week.
- Boxes are 8.8 lbs (4.0 kg). Boxes from Haiti are 9.9 lbs (4.5 kg)
2018 will be a big rebound for California avocado shipments, if some observers are correct. Conventional avocado volume is expected to hit 2.275 billion pounds in 2017.
The Hass Avocado Board of Mission Viejo, CA believes there will be a 90 million-pound increase from 2,189 billion pounds in 2016. There should be a lot more avocados for hauling next year, with early projections ranging from 400 million to 425 million pounds. Those statistics include avocados from California, Peru, Chile and the Dominican Republic.
Mexico exported 1.7 billion pounds of avocados to the U.S. the shipping year ending in June, which was off from the original estimate of almost 2 billion pounds.
U.S. avocado volume has been increasing an average of about 15 percent over the past 10 to 15 years, but 2017 was the first year when the total shipments declined.
As supplies of California and Peruvian fruit taper off in late August and into early September, loading opportunities will be limited until Mexico’s aventajada crop starts ramping up in September. California’s 200-million-pound crop was about half the size of last year’s.
With Mexico’s next crop starting in September, it is expected to significantly boost loading opportunities with an expected 1,000 or more trucks per week. Mexico will hit its stride after Labor Day,with 45 million to 50 million-pound being shipped a week.
Peru doubled its exports to the U.S. this year compared to 2016, according to the Peruvian Avocado Commission in Washington, D.C.
Peruvian growers will export 140 million pounds of avocados to the U.S. this summer, compared with 70 million pounds last year, and next year’s crop should be even larger.
About Hass Avocado Board
The Hass Avocado Board (HAB) is an agriculture promotion group established in 2002 to promote the consumption of Hass Avocados in the United States. A 12-member board representing domestic producers and importers of Hass Avocados directs HAB’s promotion, research and information programs under supervision of the United States Department of Agriculture. Funding for HAB comes from Hass avocado producers and importers in the United States.
Ventura County cabbage and greens – grossing about $6900 to New York City.
Organic produce sales displayed a strong increase in 2016 after sales had cooled a bit the previous year.
The Organic Trade Association’s 2017 Organic Industry Survey showed an 8.4 percent increase compared with the previous year as organic fruit and vegetable sales increased to $15.6 billion in 2016.
In a comparison, organic fruit and vegetables sales in 2015 were $14.4 billion, up 10.5 percent. The fruit and vegetable sector accounted to nearly 40 percent of all organic food sales in 2016, and the 8.4 percent growth rate compares with the overall 3.3 percent gain for total fruit and vegetable sales.
Fresh produce has generally accounted for about 90 percent of the organic fruit and vegetable sales. The balance of sales is with canned, frozen, or dried organic fruits and vegetables.
The OTA survey, produced in February and March by Nutrition Business Journal for the Organic Trade Association, noted organic fruits and vegetables now make up almost 15 percent of the produce that Americans eat.
The OTA survey places overall organic food sales at $43 billion, up $3.3 billion or 8.4 percent higher compared with the previous year. That is well above the nearly flat 0.6 percent growth in total food sales, according to the release. The survey shows organic food now accounts for 5.3 percent of total food sales.
“The organic industry continues to be a real bright spot in the food and ag economy both at the farm-gate and check-out counter,” Organic Trade Association CEO and executive director Laura Batcha said in a news release.
Batcha said there are challenges to the category’s growth.
“We need more organic farmers in this country to meet our growing organic demand, and the organic sector needs to have the necessary tools to grow and compete on a level playing field,” she said. “That means federal, state and local programs that help support organic research, and provide the organic farmer with a fully equipped tool kit to be successful.”
The survey numbers from the organic association differ widely from the United Fresh Produce Association’s FreshFacts on Retail report, which pegged organic produce sales at retail (not including processing or foodservice outlet sales) at $4.46 billion in 2016, up 13.2% from 2015. Additionally, the United Fresh numbers — from Nielsen Fresh — said organic sales in 2016 accounted for 9% of all fresh produce sales. The 9% organic market share number from FreshFacts is 40% below the OTA’s 15% estimate for organic’s share of the produce market.
Pennsylvania apple shipments have started, plus an update on how apples are moving from California operations.
Rice Fruit Co. of Gardners, Pennsylvania have recently started its stone fruit season, which will continue until Labor Day. Shipments started with the company’s Premier Honeycrisp apple, an early season Honeycrip varietal. It will be shipped until mid-August.
The apple grower/shipper started with stonefruit, which is a short, fast and furious season, before quickly turning to apples, including the seasonal varietal ginger gold, the first-to-market Premier Honeycrisp and shortly thereafter, gala.
Rice Fruit Co. today is the largest fresh apple packing facility east of the Mississippi. Besides the fruit grown by R&L Orchards, the company packs fruit for about 75 other fruit-growing families, mostly in Adams County, but some from as far away as Virginia and New York. The company packs fruit year-round, using 18 controlled atmosphere storage rooms. In the spring and summer months, it also stores and repacks fruit from the southern hemisphere.
California Apple Shipments
California’s apple shipments got underway in mid-July and continues through early October. The early California apple forecast projects about 1.6 million boxes of which about 1.2 million boxes will go to processing.
No doubt California is a minor shipper of apples compared to Washington state that ships more apples in a week than the Golden State does over an entire year. California does not store apples, unlike Washington which places most of its fruit in storage for a near year around shipping season.
Calfiornia is the first state in the U.S. to ship apples from a new crop every year.
Although a large percentage of California apples are sold domestically, nearly 20 percent of California apple volume is moved offshore to places such as Canada, Mexico and Southeast Asia.
Primavera Marking of Linden, CA, which ships 90 percent of its apples to retailers, just started harvesting Galas the week of July 24 It will start shipping Fujis around Aug. 15, Granny Smiths around Aug. 28 and Pink Ladies the week of Oct. 16.
A budding new relationship with a medical marijuana company Village Farms International Inc. is resulting in plans to grow 25 acres of greenhouse cannabis to start.
Emerald Health Therapeutics Inc. and Village Farms announced recently they’re forming a joint venture for large-scale, “high-quality, low-cost” cannabis production in one of Village Farms’ British Columbia greenhouses.
Village Farms will initially contribute a 25-acre greenhouse facility in Delta, British Columbia under the terms of the agreement. It will be a 50-acre parcel of land, which will be converted to marijuana production for medical use and — where law allows — the recreational market, the companies said in a news release. Emerald Health Therapeutics is a Health Canada-licensed producer of medical cannabis.
Each company will have a 50 percent ownership stake in the venture.
The partners said they are planning for 1.1 million square feet of initial potential greenhouse marijuana production, estimated to yield more than 75,000 kilograms of product per year upon completion of full licensing and greenhouse conversion.
The deal also allows for an option to add two more greenhouse facilities in the future.
Mike DeGiglio, CEO of Village Farms, said the partnership is a “transformational opportunity for their company,” which grows vegetables in greenhouses at several sites in Texas and British Columbia. He said the partnership with Emerald Health is a chance to grow “a substantially more profitable agricultural product.”
“This is a tremendously exciting and potentially lucrative opportunity for Village Farms,” he said on a conference call announcing the venture.
Taking on cannabis production won’t come at the expense of Village Farms’ established tomato and cucumber production; it assures that end of the business will grow from its current 240 acres of production, DeGiglio said.
“I want it to be very clear that Village Farms remains steadfastly committed to our produce business and to provide our customers with the same quality and surety of supply and old-world experience they have come to know and expect over our three decades in business,” he said. “We fully expect to continue to expand capacity in our produce business to meet customer demand by exploring consolidation opportunities, as we have successfully done in the past, and through organic initiatives at our U.S. operations.”
The Delta greenhouse is expected to begin cannabis production by late 2018. which includes options for Emerald Health to lease or purchase from Village Farms additional 25- and 60-acre greenhouses adjacent to the first facility.
“Demand in the medicinal market is forecast to grow tenfold by 2024,” he said, noting that the new business has a potential for $9 billion in revenues.
DeGiglio said Village Farms production costs for cannabis will be less than $1 per gram, compared with an industry average of more than $2.
“We are confident we can be the low-cost provider in the industry,” he said.
The Village Farms/Emerald Health partnership has the potential to expand to up to 4.8 million square feet of greenhouse cannabis production — estimated to yield more than 300,000 kilograms of product annually — which would supply a considerable portion of the expected future cannabis demand in Canada or for export abroad, DeGiglio said.
“Based on our conservative market pricing forecasts and yield projections, conversion of our Canadian greenhouse facilities to cannabis production could generate revenue of 10- to 15-times that of our current Canadian vegetable production with EBITDA margins potentially expanding to more than 50 percent compared with our current Canadian vegetable margins,” DeGiglio said.
The opportunities for produce haulers to haul imported fresh fruit and vegetables continues to increase as foreign farming operations increasingly recognize the demand in the United States and Canada for year around availability of produce. Here we take a look at the exports of two South American countries, who are exporting a majority of their fresh produce to North America.
Peruvian Blueberries
Five years ago there were virtually no blueberries being grown, much less exported by Peru. Today, the South American country has 10,000 acres and continues to expand due to surging demand from the U.S., Europe, and China, according to the USDA report.
The U.S. is Peru’s primary export market, account for over 50 percent of blueberry exports in 2016 (54 percent). Much fewer “blues” are exported to the Netherlands (24 percent), the UK (13 percent) and Canada (2 percent).
The USDA report points out total exports of Peruvian blueberries are projected to reach 40,000 metric tons in 2017, up 42 percent from 28,139 metric tons in 2016 and nearly four times the exports of 10,303 metric tons in 2015. The bulk of Chile’s fresh blueberry exports to the U.S. arrive from September to December, though export shipments can begin in August and continue into April.
The majority of Peru’s blueberry farms are found in the northern coastal region of La Libertad, where the sunny and dry climate allows for nearly year-round harvest.
Peru’s blueberries rank third among that country’s fresh fruit exports.
Peruvian Asparagus
While Peruvian asparagus exports are expected to be lighter than normal during the first half of the season, shipments are expected to make up a lot of ground the second half of the season. However, by season’s end, total volume is expected to be close to normal. Peak Peruvian exports should kick in around Labor Day.
Chilean Grape Wrap up
Grape exports to North America by Chile rose 11 percent in the 2016-17 season. The Chilean Fresh Fruit Exporters Association reports that exports to North America totaled 364,770 metric tons, up 11 percent compared with 2015-16.
Additionally the USDA confirms U.S. imports of Chilean grapes from October 2016 through May 2017 totaled 341,000 metric tons, up 10 percent from the previous year.
North America buyers received half of Chile’s total 2016-17 exports of just more than 730,000 metric tons. Chilean grape exports to all global destinations were up 4 percent in 2016-17.
In 2016-17, the Far East received 23 percent of Chilean grape exports, with Europe taking 17 percent and other destinations accounting for 9 percent of exports.
A USDA crop production report predicts U.S. apple shipments will be down 7 percent compared to last season.
The apple crop (both fresh and processed uses) should total 248.6 million 42-pound cartons, off from the 268.4 million cartons in the 2016 season. year ago.
On the up side, apple shipments from the Eastern state will increase. However, a significant decline in apple volume is predicted for the Central U.S. states, while a moderate decrease is seen in Western growing regions.
The Western states, led by Washington, are projected to total 170.4 million cartons, down 9 percent from a year ago, according to the estimates. The Washington apple harvest is running a few weeks later than 2016, according to the USDA, with good quality but slightly smaller fruit expected compared with the 2016 crop.
Washington state apple shipments are pegged at 159.5 million cartons, off 9 percent from the 2016 crop of 174.3 million cartons. The state is expected tol account for 64 percent of total U.S. apple shipments in 2017, down from 65 percnt in 2016.
In Eastern U.S. states, apple loadings are forecast at 55.7 million cartons, up 8 percent from 2016. New York, accounting for half of Eastern apple shipments, has a crop of 28.5 million cartons, up slightly from 28.1 million cartons a year ago. Growers and shippers there reported localized hail damage and noted rainfall and cool temperatures could affect fruit size, according to the report.
Apple shipments in the Central U.S. is forecast at 22.5 million cartons, down 27 percent from a year ago. A freeze in early May hurt Michigan crop prospects, according to the USDA. Michigan’s crop is projected at 19 million cartons, down more than 30 percent from 2016 output of nearly 28 million cartons.
In its Agricultural Prices report, the USDA said the average grower price for apples in June was 36.3 cents per pounds, down from 38 cents per pound in June last year.
The U.S. Apple Association will release its annual crop production estimate during the Apple Crop Outlook & Marketing Conference Aug. 24-25 in Chicago
The ports of Manatee and Oakland are having record-setting years, with much of that success coming from produce imports.
Port of Manatee
The Port of Manatee’s container volume already has handled as volume in 10 has it has totaled in a record setting 12-month year..
The Florida-based port has moved 32,907 20-foot-equivalent (TEU) container units since October 1st, surpassing the full-year record of 30,431 TEUs, which was set in the fiscal year ending Sept. 30, 2010.
A news release from Port Manatee points out the record-setting container volume represents a 47 percent increase over the first 10 months of the preceding fiscal year.
The increase is primarily attributed to Del Monte Fresh Produce N.A. switching from breakbulk shipping to containers for imports of Central American pineapple and bananas, as well as to the success of World Direct’s weekly shipping service which transports refrigerated produce from Mexico.
“We are excited to have already set a new container record for Port Manatee and are further encouraged this favorable trend is anticipated to be sustained for a long time,” Carlos Buqueras, Port Manatee’s executive director, said in the release.
The port’s tonnage also increased in the first 10 months of its fiscal year, topping last fiscal year’s numbers by 17 percent.
Port of Oakland
A record for import cargo in July has been set by The Port of Oakland.
The port handled 84,835 loaded 20-foot import containers in July, which tops the previous record of 84,023 containers set in March 2015.
A press release from the California port shows import volume through the first seven months of the year was also up 3.7 percent over the same time last year.
Looking ahead, Port of Oakland leaders believey they foresee a five-year period of record cargo volume beginning in 2018.
That prediction comes from the recently released Strategic Maritime Roadmap. The roadmap forecasts a record volume of 2.4 million cargo containers in 2018.
The roadmap also predicts greater volumes arriving on larger ships driven by Northern California’s robust freight market along with new distribution and freight transfer centers. The document predicts ships will be 35 percent larger within 15 years.
“We’re serving a thriving area and developing new services for our customers,” Oakland’s maritime director John Driscoll said. “The combination should be positive for everyone who relies on the port for their business or their job.”
Salinas Valley lettuce shipments continue with less ups and down in volume. Meanwhile, San Joaquin Valley table grape shipments will enter it biggest volume period of the season starting in September.
After a rocky start last spring hauling head lettuce and leaf lettuce out of the Salinas Valley, shipments have become more reliable and steady in the second half of the season.
However, there seems to be less overall volume this year, due in part to the stormy, water deluged fields earlier this year, and the fact a number of head or Iceberg major growers reduced acreage, in part because of the weather and partly due to past low prices. Those can result from over production, but just as importantly a lot of homegrown and eastern commercial operations are in full production from the Northeastern U.S. and eastern Canada.
Salinas Iceberg shippers are averaging over 1200 truck loads of product a week, and over 900 truck loads of romaine.
Leaf Lettuce Shipments
Spring plantings of leaf lettuce were erratic in a similar fashion to head lettuce. Items such a romaine, as well green and red leaf lettuce shipments haven’t been exceptional this season out of Salinas. There are freight advantages for buyers on the East Coast sourcing product much closer to home than California. As a result, a lot of California lettuce shipments are limited to the Western U.S.
Salinas Valley lettuce shipments, as well as broccoli, cauliflower and other vegetables – grossing about $4100 to Dallas, $7000 to New York City.
Grape Shipments
A generally hot weather pattern in the San Joaquin Valley since May apparently hasn’t hurt table grape quality, but if it continues could affect the quality of product being distributed around the country – particularly with red grapes and black grapes. It’s not unusual for the valley to have hot spells in summer, but not stretching out this long.
California growers are expected to ship 111.4 million 19-pound boxes of grapes this season topping last season’s nearly 109 million boxes. Over 60 percent of the volume will be shipped after September 1st.
San Joaquin Valley grapes, stone fruit and apples – grossing about $4600 to Chicago.
Wal-Mart will build a distribution center for fresh produce and other perishable items with land acquired from Port Canaveral in Florida.
Final approval of the sale of 271 acres of land to Wal-Mart Stores East LP was recently granted by the board for Florida’s Port Canaveral, according to a news release. Terms of the transaction were not revealed.
The port had acquired the land on State Road 524 near Interstate 95 in Cocoa, in December 2014 at a cost of $1.95 million, according to the release. Originally, the port had plans to develop the area into a cargo distribution complex.
However, discussions that began in 2016 between the Canaveral Port Authority and Wal-Mart Stores resulted in a change in plans.
The port will use proceeds from the sale of the acreage to reduce debt, increase monetary reserves and address capital improvements.
According to a statement released by Wal-Mart last year, the retailer planned to use the ground to open a distribution center and refrigerated warehouse complex that will store fresh produce and other perishables and staff more than 200.
“Ultimately, Port Canaveral hopes to realize some economic benefit once the distribution center is complete and operational by way of increased cargo business through the port from Wal-Mart,” Canaveral Port commission chairman Tom Weinberg said in the release. “The Port views this sale as a win-win for the region as a whole, as it stands to prosper from the distribution center, the first of several proposed development projects which could revitalize the SR 524 corridor and the surrounding communities.”
About Wal-Mart
What started small, with a single discount store and the simple idea of selling more for less, has grown over the last 50 years into the largest retailer in the world. Each week, over 260 million customers and members visit the company’s 11,695 stores under 59 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2017 revenue of $485.9 billion, Walmart employs approximately 2.3 million associates worldwide.
Stone or soft fruit shipments from Washington state are peaking. Meanwhile, here’s a round up mango shipments from key countries.
As the Washington state summer soft fruit shipping season enters final months, peak loadings are now underway for the next month.
For example, Stemilt Growers LLC of Wentachee, WA will be peaking with shipment of Artisan Organic peaches and nectarines that started in late July.
Based in south central Washington state, Artisan Organics peaches and nectarines are grown in arid and almost desert-like climates. These climates coincide with warm days, which allow peaches and nectarines to achieve high sugar levels and cool nights that allow the tree to rest and give stone fruit the opportunity to establish beautiful coloring. The climate combined with volcanic soils gives peaches and nectarines the necessary nutrients to flourish.
The company’s Douglas family transistioned to growing organic fruit about a decade ago.
Washington stone fruit, apples and pears – grossing about $4800 to Chicago.
Mango Update
by National Mango Board
The Mango Crop Report from the National Mango Board has been updated.
Mango volume shipped on week ending 7/29/17 was approximately 3.2 million boxes.
- During the same week last year, volume shipped was approximately 2.9 boxes.
Mexico Mango Shipments
- Mexican mango shipping season began in January and will run until October with a projection of approximately 74 million boxes.
Volume on week ending 7/29/17
- Volume shipped from Mexico was approximately 3.2 million boxes for a total of 62 million boxes for the season.
- During the same week last year, volume shipped from Mexico was approximately 2.9 million boxes for a total of 60.4 million boxes.
Haiti Mango Crop
- The Haitian season began in March and will ran until August with a projection of approximately 2.1 million boxes.
Volume on week ending 7/29/17
- Volume shipped from Haiti was approximately 5,053 boxes for a total of 2.2 million boxes for the season. During the same week last year, volume shipped from Haiti was not available.
Brazil Mango Crop
- The Brazilian season will begin in August and will run until November with a projection of 7.8 million boxes.
Please note:
- U.S. entry ports report incoming mango volume on different schedules; some report daily and some weekly. This will cause discrepancies between the volume shipped from the source and the volume arrived at the U.S. entry ports in any given week.
- Boxes are 8.8 lbs (4.0 kg). Boxes from Haiti are 9.9 lbs (4.5 kg)
2018 will be a big rebound for California avocado shipments, if some observers are correct. Conventional avocado volume is expected to hit 2.275 billion pounds in 2017.
The Hass Avocado Board of Mission Viejo, CA believes there will be a 90 million-pound increase from 2,189 billion pounds in 2016. There should be a lot more avocados for hauling next year, with early projections ranging from 400 million to 425 million pounds. Those statistics include avocados from California, Peru, Chile and the Dominican Republic.
Mexico exported 1.7 billion pounds of avocados to the U.S. the shipping year ending in June, which was off from the original estimate of almost 2 billion pounds.
U.S. avocado volume has been increasing an average of about 15 percent over the past 10 to 15 years, but 2017 was the first year when the total shipments declined.
As supplies of California and Peruvian fruit taper off in late August and into early September, loading opportunities will be limited until Mexico’s aventajada crop starts ramping up in September. California’s 200-million-pound crop was about half the size of last year’s.
With Mexico’s next crop starting in September, it is expected to significantly boost loading opportunities with an expected 1,000 or more trucks per week. Mexico will hit its stride after Labor Day,with 45 million to 50 million-pound being shipped a week.
Peru doubled its exports to the U.S. this year compared to 2016, according to the Peruvian Avocado Commission in Washington, D.C.
Peruvian growers will export 140 million pounds of avocados to the U.S. this summer, compared with 70 million pounds last year, and next year’s crop should be even larger.
About Hass Avocado Board
The Hass Avocado Board (HAB) is an agriculture promotion group established in 2002 to promote the consumption of Hass Avocados in the United States. A 12-member board representing domestic producers and importers of Hass Avocados directs HAB’s promotion, research and information programs under supervision of the United States Department of Agriculture. Funding for HAB comes from Hass avocado producers and importers in the United States.
Ventura County cabbage and greens – grossing about $6900 to New York City.
Organic produce sales displayed a strong increase in 2016 after sales had cooled a bit the previous year.The Organic Trade Association’s 2017 Organic Industry Survey showed an 8.4 percent increase compared with the previous year as organic fruit and vegetable sales increased to $15.6 billion in 2016.
In a comparison, organic fruit and vegetables sales in 2015 were $14.4 billion, up 10.5 percent. The fruit and vegetable sector accounted to nearly 40 percent of all organic food sales in 2016, and the 8.4 percent growth rate compares with the overall 3.3 percent gain for total fruit and vegetable sales.
Fresh produce has generally accounted for about 90 percent of the organic fruit and vegetable sales. The balance of sales is with canned, frozen, or dried organic fruits and vegetables.
The OTA survey, produced in February and March by Nutrition Business Journal for the Organic Trade Association, noted organic fruits and vegetables now make up almost 15 percent of the produce that Americans eat.
The OTA survey places overall organic food sales at $43 billion, up $3.3 billion or 8.4 percent higher compared with the previous year. That is well above the nearly flat 0.6 percent growth in total food sales, according to the release. The survey shows organic food now accounts for 5.3 percent of total food sales.
“The organic industry continues to be a real bright spot in the food and ag economy both at the farm-gate and check-out counter,” Organic Trade Association CEO and executive director Laura Batcha said in a news release.
Batcha said there are challenges to the category’s growth.
“We need more organic farmers in this country to meet our growing organic demand, and the organic sector needs to have the necessary tools to grow and compete on a level playing field,” she said. “That means federal, state and local programs that help support organic research, and provide the organic farmer with a fully equipped tool kit to be successful.”
The survey numbers from the organic association differ widely from the United Fresh Produce Association’s FreshFacts on Retail report, which pegged organic produce sales at retail (not including processing or foodservice outlet sales) at $4.46 billion in 2016, up 13.2% from 2015. Additionally, the United Fresh numbers — from Nielsen Fresh — said organic sales in 2016 accounted for 9% of all fresh produce sales. The 9% organic market share number from FreshFacts is 40% below the OTA’s 15% estimate for organic’s share of the produce market.
Pennsylvania apple shipments have started, plus an update on how apples are moving from California operations.
Rice Fruit Co. of Gardners, Pennsylvania have recently started its stone fruit season, which will continue until Labor Day. Shipments started with the company’s Premier Honeycrisp apple, an early season Honeycrip varietal. It will be shipped until mid-August.
The apple grower/shipper started with stonefruit, which is a short, fast and furious season, before quickly turning to apples, including the seasonal varietal ginger gold, the first-to-market Premier Honeycrisp and shortly thereafter, gala.
Rice Fruit Co. today is the largest fresh apple packing facility east of the Mississippi. Besides the fruit grown by R&L Orchards, the company packs fruit for about 75 other fruit-growing families, mostly in Adams County, but some from as far away as Virginia and New York. The company packs fruit year-round, using 18 controlled atmosphere storage rooms. In the spring and summer months, it also stores and repacks fruit from the southern hemisphere.
California Apple Shipments
California’s apple shipments got underway in mid-July and continues through early October. The early California apple forecast projects about 1.6 million boxes of which about 1.2 million boxes will go to processing.
No doubt California is a minor shipper of apples compared to Washington state that ships more apples in a week than the Golden State does over an entire year. California does not store apples, unlike Washington which places most of its fruit in storage for a near year around shipping season.
Calfiornia is the first state in the U.S. to ship apples from a new crop every year.
Although a large percentage of California apples are sold domestically, nearly 20 percent of California apple volume is moved offshore to places such as Canada, Mexico and Southeast Asia.
Primavera Marking of Linden, CA, which ships 90 percent of its apples to retailers, just started harvesting Galas the week of July 24 It will start shipping Fujis around Aug. 15, Granny Smiths around Aug. 28 and Pink Ladies the week of Oct. 16.
A budding new relationship with a medical marijuana company Village Farms International Inc. is resulting in plans to grow 25 acres of greenhouse cannabis to start.
Emerald Health Therapeutics Inc. and Village Farms announced recently they’re forming a joint venture for large-scale, “high-quality, low-cost” cannabis production in one of Village Farms’ British Columbia greenhouses.
Village Farms will initially contribute a 25-acre greenhouse facility in Delta, British Columbia under the terms of the agreement. It will be a 50-acre parcel of land, which will be converted to marijuana production for medical use and — where law allows — the recreational market, the companies said in a news release. Emerald Health Therapeutics is a Health Canada-licensed producer of medical cannabis.
Each company will have a 50 percent ownership stake in the venture.
The partners said they are planning for 1.1 million square feet of initial potential greenhouse marijuana production, estimated to yield more than 75,000 kilograms of product per year upon completion of full licensing and greenhouse conversion.
The deal also allows for an option to add two more greenhouse facilities in the future.
Mike DeGiglio, CEO of Village Farms, said the partnership is a “transformational opportunity for their company,” which grows vegetables in greenhouses at several sites in Texas and British Columbia. He said the partnership with Emerald Health is a chance to grow “a substantially more profitable agricultural product.”
“This is a tremendously exciting and potentially lucrative opportunity for Village Farms,” he said on a conference call announcing the venture.
Taking on cannabis production won’t come at the expense of Village Farms’ established tomato and cucumber production; it assures that end of the business will grow from its current 240 acres of production, DeGiglio said.
“I want it to be very clear that Village Farms remains steadfastly committed to our produce business and to provide our customers with the same quality and surety of supply and old-world experience they have come to know and expect over our three decades in business,” he said. “We fully expect to continue to expand capacity in our produce business to meet customer demand by exploring consolidation opportunities, as we have successfully done in the past, and through organic initiatives at our U.S. operations.”
The Delta greenhouse is expected to begin cannabis production by late 2018. which includes options for Emerald Health to lease or purchase from Village Farms additional 25- and 60-acre greenhouses adjacent to the first facility.
“Demand in the medicinal market is forecast to grow tenfold by 2024,” he said, noting that the new business has a potential for $9 billion in revenues.
DeGiglio said Village Farms production costs for cannabis will be less than $1 per gram, compared with an industry average of more than $2.
“We are confident we can be the low-cost provider in the industry,” he said.
The Village Farms/Emerald Health partnership has the potential to expand to up to 4.8 million square feet of greenhouse cannabis production — estimated to yield more than 300,000 kilograms of product annually — which would supply a considerable portion of the expected future cannabis demand in Canada or for export abroad, DeGiglio said.
“Based on our conservative market pricing forecasts and yield projections, conversion of our Canadian greenhouse facilities to cannabis production could generate revenue of 10- to 15-times that of our current Canadian vegetable production with EBITDA margins potentially expanding to more than 50 percent compared with our current Canadian vegetable margins,” DeGiglio said.
The opportunities for produce haulers to haul imported fresh fruit and vegetables continues to increase as foreign farming operations increasingly recognize the demand in the United States and Canada for year around availability of produce. Here we take a look at the exports of two South American countries, who are exporting a majority of their fresh produce to North America.
Peruvian Blueberries
Five years ago there were virtually no blueberries being grown, much less exported by Peru. Today, the South American country has 10,000 acres and continues to expand due to surging demand from the U.S., Europe, and China, according to the USDA report.
The U.S. is Peru’s primary export market, account for over 50 percent of blueberry exports in 2016 (54 percent). Much fewer “blues” are exported to the Netherlands (24 percent), the UK (13 percent) and Canada (2 percent).
The USDA report points out total exports of Peruvian blueberries are projected to reach 40,000 metric tons in 2017, up 42 percent from 28,139 metric tons in 2016 and nearly four times the exports of 10,303 metric tons in 2015. The bulk of Chile’s fresh blueberry exports to the U.S. arrive from September to December, though export shipments can begin in August and continue into April.
The majority of Peru’s blueberry farms are found in the northern coastal region of La Libertad, where the sunny and dry climate allows for nearly year-round harvest.
Peru’s blueberries rank third among that country’s fresh fruit exports.
Peruvian Asparagus
While Peruvian asparagus exports are expected to be lighter than normal during the first half of the season, shipments are expected to make up a lot of ground the second half of the season. However, by season’s end, total volume is expected to be close to normal. Peak Peruvian exports should kick in around Labor Day.
Chilean Grape Wrap up
Grape exports to North America by Chile rose 11 percent in the 2016-17 season. The Chilean Fresh Fruit Exporters Association reports that exports to North America totaled 364,770 metric tons, up 11 percent compared with 2015-16.
Additionally the USDA confirms U.S. imports of Chilean grapes from October 2016 through May 2017 totaled 341,000 metric tons, up 10 percent from the previous year.
North America buyers received half of Chile’s total 2016-17 exports of just more than 730,000 metric tons. Chilean grape exports to all global destinations were up 4 percent in 2016-17.
In 2016-17, the Far East received 23 percent of Chilean grape exports, with Europe taking 17 percent and other destinations accounting for 9 percent of exports.