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Shuman Produce Acquires former Onion Competitior; CA Navel Shipments to End Early

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IMG_6642+1One of the larger Vidalia onion shippers, Shuman Produce, has just become significantly larger….On the West Coast,  here’s an update on California orange shipments.

Shuman Produce of Reidsville, GA which has grown over the past decade or so to become the second largest Georgia onion shipper, has purchased the Plantation Sweets Vidalia onion operation in Cobbtown, GA.

The 680-acre property includes a 94,000-square foot packing facility, and sold for $5.5 million at a bankruptcy auction April 26.

Shuman Produce plans to use cold storage space on the property in the next couple of weeks for part of its current crop, and the land will be planted this fall for next spring’s onion harvest.  The acquisition allows Shuman Produce to add several hundred thousand boxes of production to its Vidalia program.

During  the first round of bidding on primarily the land itself the bidding was up to about $2.5 million.  Obviously that  more than doubled before the bidding concluded.

Plantation Sweets filed for bankruptcy in 2016.  Farm equipment and onion bins that belonged to the company were sold in a separate auction April 27.

Another Vidalia onion operation, which previously belonged to Gerrald’s Vidalia Sweet Onions, will be available in a bankruptcy auction later this month. Online bidding on that property begins May 11.

Vidalia onions – grossing about $2000 to Chicago.

California Orange Shipments

An early conclusion to California’s navel orange shipments are expected due to a smaller crop, compared the last two seasons.

Navel shipments will be ending sometime in June.   About 75 percent of the navel crop had been picked by early April.

California shippers  already were exporting some valencia oranges, which should be available domestically after the navel crop is finished.   Most valencias go to foodservice or to schools.

Consumers do not favor valencias as much as they used to, due in part to increased availability of Southern Hemisphere navels.

Southern California citrus, avocados – grossing about $3900 to Chicago.

 

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Ocean Carrier Alliance Changes Welcomed by Port of Oakland

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OaklandAlliance changes in the way container shipping lines operate are being welcomed by an executive with the Port of Oakland, CA.

Newly formed ocean carrier alliances will help the port, according to Maritime Director John Driscoll in a news release from the facility.

“We’ll see larger vessels coming to the port, which is a good thing,” he told employees in a podcast on the port’s website, portofoakland.com. “We’ll get more container moves-per-vessel which increases the efficiency of operations.”

Driscoll also said the port will receive a new weekly vessel service as a result of carrier realignment. Taiwan-based Wan Hai Lines plans to launch a new route connecting Oakland and Asia, which will increase to 29 the number of regularly scheduled vessel services calling Oakland.

“It’s a good sign when new players come to Oakland,” Driscoll said in the release.

The changes result from an April 1 realignment in which 11 of the world’s largest shipping lines formed three new alliances. Alliances let carriers pool ships on ocean routes to cut costs while expanding market reach. The carriers plan to deploy larger vessels in their alliances, carrying more containers to the U.S. West Coast. That should enable them to reduce the number of voyages while maintaining cargo volume levels, Driscoll said.

New alliance configurations should have little effect on Oakland operations, Driscoll said, noting that some vessels will change which of Oakland’s three international marine terminals they call, but the terminals are prepared.

The first vessels operating under new alliance configurations arrived in Oakland during the week of April 17.

Oakland has regular service to ports in Asia, Northern Europe and the Mediterranean, Latin America, Oceania and Hawaii.

The Port of Oakland was established in 1927 on the East shore of San Francisco Bay.  Port history spans a period of 165 years, which encompassed the Civil War, the Industrial Revolution, two World Wars, and America’s coming of age as a global power.

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Riveridge Increases Michigan-Asparagus Volume In 2017

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DSCN9175by Riveridge Produce Marketing

SPARTA, Mich. – As part of an expanded partnership with Ridgeview Orchards, Riveridge Produce Marketing will market a larger share of Michigan asparagus in 2017.

“We’ve worked with Riveridge for a number of years on the apple side and they’ve always been on the forefront of marketing, food safety and quality,” said Al Dietrich, co-owner Ridgeview Orchards. “They have more than 25 years of produce relationships on the apple side and we knew it would be a natural bridge to add our asparagus marketing to their portfolio.”

With this larger volume, Riveridge has added packaging options, revised current packaging and partnered with a Southwest Michigan packer to capture some of the first harvested asparagus of the season.

Shafer Lake, a Riveridge partner for apple packing, has added an asparagus packing line. Based in Southwest Michigan, Shafer Lake will receive and package asparagus directly from that region which harvests sooner than the bulk of Michigan asparagus grown in the Hart region.

At this time, and contingent on the weather, packing of Michigan asparagus is anticipated between May 5-7.

“We didn’t hesitate when Ridgeview asked us to come aboard with asparagus marketing. It gives us an opportunity to expand our Michigan produce offering and create new options for our customers,” said Don Armock, president, Riveridge Produce Marketing. “Ridgeview Orchards has the best in mind for the end customers and are willing to try new things – we’re looking forward to working with them for years to come on asparagus.”

Real-time inventory will be in place thanks to shared software between Ridgeview and Riveridge. As asparagus is packed, the system will be updated and refreshed automatically every five minutes to Riveridge. Sales staff can then see where there may be opportunities to move extra inventory and be ready when buyers have additional needs.

Additionally, as more consumers like to know more where their food comes from, Riveridge has emphasized Michigan grown on packages with a larger outline of the state and created a Michigan-grown tag for the one-pound bundles. MAAB research shows 76 percent* of consumers are more likely to purchase US-grown asparagus over imports and 55 percent* of them are willing to pay more for that option.

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Allen Lund Company Partners with Santos International

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ALCtkby Allen Lund Company

La Cañada Flintridge Calif.:  Allen Lund Company and Santos International are pleased to announce a new company, TransKool Solutions.

This joint venture represents a pooling of expertise to establish a supply chain process for produce LTL services. Allen Lund Company is a national third-party transportation broker with nationwide offices working with shippers and carriers across the nation to arrange for dry, refrigerated (specializing in produce), and flatbed freight. Santos International is a leading international freight forwarding company specializing in warehousing and U.S. Customs brokerage services to industries across the U.S. and Mexico.

TransKool Solutions will provide premiere warehousing solutions optimized in LTL and FTL services, load consolidations and Customs brokerage. Managing operations will be Kristi Salinas, with support from both Allen Lund Company and Santos International.

Eddie Lund, Vice President of Sales and Branch Operations commented, “We are really excited about the joint venture with Santos International. We knew going in that we could both help our customers if we put together a warehouse solution in the valley. Once we met the Santos family it became an easy decision for us to go forward with the program. We have a similar culture and values and they provide us the expertise and local knowledge in McAllen that is essential. They are great people and we are lucky to be associated with them and we are already looking to expand our services.”

The new firm, TransKool Solution’s central office is located at:

802 Trinity Street, Mission, TX 78572, (956) 432-0000.

About Allen Lund Company:

Specializing as a national third-party transportation broker with nationwide offices and over 450 employees, the Allen Lund Company works with shippers and carriers across the nation to arrange dry, refrigerated (specializing in produce), and flatbed freight; additionally, the Allen Lund Company has a logistics and software division, ALC Logistics, and an International Division licensed by the FMC as an OTI-NVOCC #019872NF.  If you are interested in joining the Allen Lund Company team, please click here.

Established in 1976, the Allen Lund Company was selected as the 2015 Coca-Cola Challenger Carrier of the Year, 2016 Top IT Provider by Inbound Logistics, 2015 Top Private Company in Los Angeles by the Los Angeles Business Journal, 2015 Top 100+ Software and Technology Providers, 2015 Top 100 Logistics IT Provider by Inbound Logistics, a 2014 Supply & Demand Chain Executive 100, a 2014 Great Supply Chain Partner, and was placed in Transport Topics’ “2014 Top 25 Freight Brokerage Firms.”  The company managed over 310,000 shipments in 2015, and received the 2013 “Best in Cargo Security Award.”  In 2011 the company received the TIA 3PL Samaritan Award, and the NASTC (National Association of Small Trucking Companies) named Allen Lund Company the 2010 Best Broker of the Year.  More information is available at www.allenlund.com.

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Mexican Grapes are Starting Soon: Lettuce Shipping Gap Update

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DSCN9042It is only days until the first Mexican grapes of the season start crossing the border through Nogales, AZ.  Meanwhile, some California vegetables continue to struggle to make volume with a shipping gap continuing.

We’re about a week from the starting of the table grape shipments from the Mexican state of Sonora with both the Hermosillo and Caborca areas reporting good crops heading into the season.  A total volume of 19 million cartons is estimated this season for Mexican grapes.

Generally, the Mexican table grape season starts the first week of May lasting all the way through the first or second week of July, with varieties like Red Globe.  However, the vast majority of the total volume is quickly declining by the end of June.

Sonora’s table grape shipments are extremely important for the fresh produce industry as it happens right between the end of the South American season, mainly from Chile and Peru, countries with the highest exports to the United States, and the beginning of the California season, mostly from the San Joaquin Valley.

Mexican vegetables, tomatoes and melons crossing through Nogales – grossing about $3200 to Chicago.

California Lettuce Shipments

Farmers in California have been plagued by drought for several years,  but the problem in 2017 is too much rain.  That has limited shipments of vegetable items for salads and it may be weeks before shipments show any semblance of normal.

Warmer than usual weather brought an early end to the growing season in Southern California and western Arizona.  That was followed by heavy rain, pushing back planting in coastal regions of California, which is the largest U.S. fruit and vegetable producer.  The is primarily the Salinas Valley and to a lesser extend the Santa Maria area.

The delays have led to shortfalls of crops including lettuce and broccoli and sent wholesale prices soaring.  The cost of a carton of 30 celery heads has almost tripled since early February to $25 f.o.b.

Assuming the California weather cooperates, shipments of lettuce, broccoli, cauliflower and some other items should eventually become more consistent.  However, shipping gaps will be occurring and we’ll be well into May before the situation show substantial improvement.

Meanwhile, lettuce from the Huron area in the San Joaquin Valley is about finished.

Salinas Valley vegetables – grossing about $6400 to New York City.

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February Apple Sales Show a Decline

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AppleBabyApple sales in February fell 5.4 percent compared to the same month in 2016, according to Stemilt Grower’s latest Fruit Tracker Fast Facts video analysis.

While apple volume is up year-over-year the video shows most regions fell short of performance, excluding the East.

“February is historically a strong month for apple sales,” said Brianna Shales, Stemilt communication manager. “Retailers sold 59 pounds of apples more on average in February, but brought in $190 dollars less weekly than in February 2016. This year’s larger crop and fruit size is ripe with opportunities for promotion, especially on the bulk side.”

Bulk remained the primary purchasing method for apple, accounting for 59.1 percent of sales. Bag sales accounted for the remaining 40.9 percent.

The top five apple varieties in February 2017 were:

  • Gala at 28.2 percent of sales;
  • Fuji at 13.8 of sales;
  • Red delicious at 12.3 percent of sakes;
  • Granny smith at 11.% of sales;
  • HoneyCrisp at 11.1 of sales.

“Club apples are an important part of the apple category, and there are still opportunities to promote them this spring,” Shales said in the release. “Our signature variety, Piñata, will be available through May and we are seeing some of the best fruit of the year right now coming out of storage, with great color and dessert eating qualities.”

Apples accounted for an average of 6.8 percent of national produce sales in January 2017, which dropped to 6.5 percent in February.

About Stemilt

Stemilt Growers is a leading tree fruit growing, packing and shipping company based in Wenatchee, WA and is owned and operated by the Mathison family.   Stemilt Growers is the leading shipper of sweet cherries and one of the nation’s largest suppliers of organic tree fruits.  Stemilt has also demonstrated a commitment to sustainable agriculture and social responsibility since 1989, when founder Tom Mathison launched the company’s Responsible Choice program . For more information about Stemilt Growers, visit www.stemilt.com.

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New ‘Superfood’ Beet Powder is Introduced

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BeetsBy Love Beets

BALA CYNWYD, PA –  Love Beets – a pioneering line of premium, ready-to-eat beet products – is growing its product offering with 100% pure Beet Powder that’s an ideal item for health enthusiasts, fitness fanatics, or those just looking to incorporate more better-for-you ingredients in their diet.

Love Beets’ Beet Powder is made from 100% beets, contains no additives or preservatives, has 0g added sugar, and is non-GMO, gluten-free, dairy-free and vegan. Beet powder delivers the nutritional benefits (and color!) of beets without any of the peeling, cooking, or juicing. It can be stirred directly into a cup of water, or added to smoothies, yogurt, sauces, baked goods, oatmeal, homemade pastas, and much more!

Beets have long been touted for their health benefits and the dietary nitrates found in beets convert to nitric oxide in the body, which can help promote heart health, healthy circulation, and stamina and endurance. For those who are looking for more pack in their punch, consuming just one tablespoon of Love Beets’ Beet Powder is the equivalent of eating three medium-sized beets.

Not only an innovative addition to their line, Love Beets’ Beet Powder is also a way to utilize the entire beet crop. Beets that are not in the ideal size range for their other products are dehydrated and then milled into the beet powder, resulting in overall less waste. The powder is made from U.S.-grown beets and is produced in the United States – another added benefit to consumers.

“We’re thrilled to launch another product that maintains our commitment to providing healthy and convenient items,” said George Shropshire, Vice President of Love Beets. “It’s also amazing that we’re able to do it in a way that’s making us even more efficient and economical. It’s a win/win for everyone.”

This new product reinforces Love Beets standing as the “beet experts” and in creating items that make beets convenient, easily approachable, and fun.

Love Beets’ Beet Powder can currently be found at Wegmans and on Love Beets’ online store.

About Love Beets

Launched in 2010, Love Beets specializes in a line of premium, all-natural, ready-to-eat beets that are sold in major retail food stores and specialty shops across North America. Products include marinated baby beets, vacuum-packed cooked beets, beet juices, beet powder, and many more products on the way!

Love Beets products use no artificial colors or preservatives, and almost all products are gluten-free. Select products are also USDA certified organic, verified Non-GMO and kosher-certified.

Since its launch, Love Beets has been defying preconceived notions of beets with an upbeat, fun, modern brand and tasty products that attract beet lovers and beet newbies alike!

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Georgia Veg Shipments Have Started; Auctions set on 2 former Vidiala Onion Shippers

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150_5080+1Here’s a spotlight on Georgia with some good and some not so good.  A glimpse of the Georgia spring vegetable shipments is made.  There’s also news on two auctions of assets of former Vidalia onion shippers

Georgia vegetable shipments are getting underway in very light volume for the summer shipping season.  Warm growing conditions is resulting in one of the earliest starts in memory.  For example Southern Valley at Norman Park is now loading cabbage, yellow squash and zucchini.  These items will be soon be followed by vegetables in the first half of May ranging from eggplant, to cucumbers and peppers and later, sweet corn.

2 Vidalia Bankruptcies Ending in Auctions

Gerrald’s Vidalia Sweet Onions of Stateboro, GA will be for sale in May at a bank-ordered auction, which includes the land, facilities and equipment.   Online bidding starts May 11, with bidding on the real estate closing May 25 and bidding on equipment closing May 26.

Included in the auction will be 323 acres of farmland, about 150 acres of which is irrigated.  An 85,000-square foot packing facility, late-model John Deere equipment, row crop implements, packing equipment and more than 3,500 produce field bins will also be for sale, according to Weeks Auction Group of Moultrie, GA.

The property was last planted in 2016, though not with onions because it was a rotation year.  The land is also suitable for growing carrots, watermelon, cotton, peanuts and other crops.  The property also includes a 27-acre pecan orchard.  The auction comes as a result of bankruptcy and subsequent foreclosure. 

The auction will be the second of a Vidalia onion operation in the span of a month. 

Plantation Sweets of Cobbtown, GA will be sold in a bank-ordered auction today, which includes the land, facilities and equipment.  Plantation Sweets filed for Chapter 11 bankruptcy in July 2016. In response to a motion to convert to Chapter 7 or dismiss the case, a judge ruled in December to dismiss.  The case was terminated March 29.

Assets up for sale in that auction will include about 567 acres of farmland. Equipment and micro-bins used by the operation will be sold April 27 in a separate auction.

 

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Consumers Spending More on Eating Out Than at Retail

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DSCN3905Technomic, a research company dedicated to the foodservice channel recently released their annual results report.  Over half of the U.S. food dollar is now spent eating out at foodservice vs. retail, as more people go out to eat, rely on takeout or look for supermarket foodservice (convenient prepared food) options. Foodservice is now also the largest sales channel for potatoes in the U.S.
The $845 billion-dollar foodservice industry grew 1.6% in 2016, with the sectors of fast food/quick service, fast casual, fine dining and convenience stores seeing the most growth.    All sectors are expected to grow in 2017 with overall sales projected to be up 1.7%.  The fastest growing segment should remain fast casual, with an expected sales increase of 6.1% in 2017, followed by an emerging sector, supermarket foodservice with projected 6% growth.  Noncommercial Foodservice (e.g. Healthcare, Schools) is also a bright spot, and is expected to continue to grow at a steady pace. Fine dining, which has been down in recent years, is expected to grow 3.1% in 2017.
Potato Exports Increasing
 
U.S. exports of frozen and fresh potatoes continued to grow in December while dehydrated exports were still down but by a lesser degree. The strong dollar continues to be an issue, but tight exportable supplies are also having an impact on future sales.
Frozen export volume increased 22% in December and is up 6% for the first six months of the marketing year.  Exports for the month were up 27% to Japan, 30% to Taiwan and 59% to Central America.  Exports to China and Mexico continued to slip, down 21% and 2% respectively for December.
Exports of dehydrated potatoes declined 20% in December and are down 21% for the marketing year to date.  December exports to Japan were down 37%, to the Philippines down 70% and to Mexico down 14%.  Canada is up 10% for the month, but is still down 6% for the year.
Exports of fresh potatoes, both chip-stock and table-stock, increased 16% in December and are up 26% for the marketing year.  Exports for December to Canada were up 26%, with a 47% increase to Central America, 116% to Taiwan and 10% to the Philippines.  With the early opening of the Japan shipping window in December the U.S. exported 5,560 MT of additional chipping potatoes there.  Exports to Mexico continues to decline down 10% for December, with Korea down 49% and Malaysia down 17%.

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Coachella Valley will Provide Nation’s First Domestic Grapes of the Year

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 DSCN3786+1Coachella Valley grape shipments start soon, kicking off the domestic grape season for the United States.

Nestled just outside of Palm Springs are California’s first grape shipments each year.  Coachella Valley grape loadings will get underway in early May, but it will be at least mid May, if not a little later before there is good volume.

In its prime, the Coachella Valley routinely shipped in excess of 10 million cartons per season.  Even a decade ago, volume ranged from 7 million to 9 million cartons for the season.  Today, 4 million to 5 million cartons is more typical as acreage has declined over the years for a variety of reasons, with nothing being a greater factor than soaring real estate prices for both commercial and residential demands.  But that decline may have reached a plateau, according to some.  There are now fewer, but larger growing/shipping operations and new varieties of grapes are being introduced to make the Coachella Valley more competitive, especially with Mexican grapes.  The latter now has production about double or more what Coachella used to have in its heyday.

The two regions have very similar grape seasons, although Mexico typically starts shipping a few days to a week or so earlier than Coachella.  Both Coachella and Mexico serve as a bridge from the end of the imported Chilean grape season and when Arvin District grapes (Bakersfield) gets underway in late June.  Arvin and other production areas in the San Joaquin Valley provide the vast majority of California grape shipments.

There still remain a number of old time, well established grape shippers either based in the Coachella Valley, or which have operations there.  For example, there is Anthony Vineyards, Inc., Sun World International LLC.; and Stevco, all in Coachella; Richard Bagdasarian, Inc., and Tudor Ranch, Inc., are both in Mecca.

 

 

 

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