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Shipping: Keep an Eye on CA Citrus Quality; U.S., Mexico Avocado Update

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DSCN9005While rain drenched California citrus isn’t having significant quality problems, that could change during the weeks ahead.  Meanwhile, here’s a look at avocado shipments from Mexico and California.

The bottom line is citrus growers don’t know what long-term effect the recent rains will have on the crop as navels and cara cara navels hit peak loadings.  Excessive rain and moisture can adversely affect low-hanging fruit on trees, so packinghouses are running a little slower to monitor spoilage.

Gold nugget variety mandarins and Ojai pixie tangerines — late season specialty varieties, also recently got underway by Sunkist Growers.   Additionally, California Star Ruby  grapefruit shipments are about to start.

While quality issues down the road are a question mark, more certainty is that the 2017 harvest will end earlier this season.  Instead of lasting until the Fourth of July, shipments will end in early June.

Total tonnage harvested in 2017 is expected to be 15 to 19 percent less than a year ago.

Southern California citrus, avocados – grossing about $4500 to Atlanta.

Avocado Shipments

Shipments of Mexican avocados through south Texas in February this year totaled about 135.1 million pounds (3,3375 truck loads), compared with 166.25 million pounds (4,150) shipped in February last year.
U.S. volume of hass avocados from all sources (California and Mexico) in March will total about 187 million pounds (4,675 truck loads), down from about 199.3 million pounds (4,975 truck loads) in March 2016.
Southern California avocados shipments have been delayed by rains this season, although the state’s volume is light compared with Mexico.  Only about 4 percent of total shipments in late came from California.
Mexico’s crop estimate has been reduced to 1.6 billion pounds (55,000 truck loads) and final estimates may be even less.
Mexico is shipping about 30 million pounds per week (750 truck loads) compared with normal volumes in the 40 million pounds (1,000 truck loads) per week range as supplies are quickly running out.
Still, Mexico is expected during the next six to eight weeks to ship between 27 million (675 truck loads) to 32 million pounds per week,

California avocado shipments should end its season with about 195 million (4,875 truck loads) compared to nearly 400 million pounds in 2016.  Larger avocado crops are often followed by smaller crops the next year.

California loadings could increase by mid-March and into April to 8 to 10 million pounds per week.  This would compare to shipments as high as 15 million pounds per week a year ago.

Imported Mexican avocados, tropical fruits and vegetables through South Texas – grossing about $2700 to Chicago.

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How Western Produce Shipments are Affected by Recent Weather Events

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SUNKIST10-FINCH-FARMS-0582California citrus shipments are getting back on track after days of rains.  Meanwhile, weather is expected to have a significant impact of Salinas vegetable shipments, but not affect California almonds, nearly as much. 

The effects of the rain in citrus groves about a week ago, which hinders harvest and shipments when the ground is too muddy, could have been worse.  It helps we are talking citrus and not something more perishable like strawberries (See March 1st report).   Of note as we’ve previously reported, orange shippers had a bigger-than-normal pre-Christmas loadings, shipping about 30 percent  of crop before the holiday, compared to a normal 20-25 percent.  This is expected to result in season ending shipments occurring earlier than usual.

While harvest and shipments have been significantly slowed down, with it being too muddy for heavy equipment, the citrus industry is estatic over the great improvements in the water supply.  Even better, the excess rain has not created any quality-related issues – thus far.

Southern California oranges and specialty citrus – grossing about $3600 to Chicago.

Vegetable Shipments

Vegetable growers love the big rains that have recently occurred, but the trade off is plantings have been delayed in the Salinas Valley.  This will be some shipping gaps, which will be felt even more because vegetable shipments from the California and Arizona deserts are going to end early than usual.

Not only are Salinas Valley spring vegetable shipments to be later this year, but there’s an excellent chance yields will be off due to wet-weather planting and generally adverse conditions.  This of course, will translate into fewer vegetable shipments.

Imperial Valley and Yuma vegetables – grossing about $4600 to Atlanta.

Almond Shipments

 Because of recent rains and storms in the San Joaquin Valley, some almond trees were blown down by strong winds recently.  However, tree losses aren’t as bad as initially feared and optimism continues for good shipments when the season starts  the latter part of August.

Mexican Grape Shipments

It’s a bit early, but initial estimates for the Mexican grape shipments are expected to be pretty much on time, which should mean fruit starting to cross the border at Nogales in late April.

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Del Monte is Adding Container Shipping Vessels at Port Manatee in March

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Manatee1Starting this month produce shipping company Del Monte will add container shipping vessels to its Port Manatee itinerary, it was announced recently by the port.

Arrivals of Del Monte container vessels will be  “periodically in a controlled growth,” according to the port.

While Del Monte isn’t completely switching to containerized cargo, the company will use container vessels at Port Manatee about every three weeks. Container vessels can hold 350 containers, compared to 96 containers on a breakbulk ship, according to the port.

Breakbulk differs from containerized cargo because loose materials or products are loaded, shipped and unloaded individually. When it comes to container shipping, storage units are used to encase the cargo.

At a recent Manatee County Port Authority meeting, it was revealed the port is considering updating Port Manatee’s crane technology with the increase of containerized cargo.

The Port Authority also approved a recorded easement and installation agreement with Florida Power and Light to install a transformer in the port’s container yard. The transformer will power 124 new refrigerated plugs that are necessary for cold containerized cargo storage.

While the port does seek to boost its container volume in the upcoming year, Port Manatee doesn’t plan to stop accepting breakbulk shipments.

Port officials have expressed the need for the capability to handle both breakbulk and container.  While Port Manatee can handle breakbulk, most ports in Florida are not ready to handle breakbulk for fruits and vegetables. Containerization allows the port to reach further because now you don’t have to break the cold chain.

About Port Manatee

Port Manatee is the closest U.S. deep water seaport to the Panama Canal, serving bulk, break bulk, container, heavy lift, project and general cargo customers. The port generates more than $2.3 billion in annual economic impact for the local community, while supporting more than 24,000 jobs, without the benefit of ad-valorem taxes.

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Study Points Out Popularity of Idaho Bagged Potatoes

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IdahoSpudConsumers are less likely to not buy Idaho-branded bagged russet potatoes due to price changes than potatoes from other states, according to a new study.

The Idaho Potato Commission commissioned the study conducted by economist Timothy Richards of Arizona State University, which used retail scan data for the two-year period.

The numbers indicate that Idaho potatoes have a higher consumer preference and can command a more premium retail price or markup.

“The research showed that for russets, Idaho russets are less price elastic than non-Idaho russets,” said Seth Pemsler, vice president of retail and international programs for the commission. “When price goes up on Idaho (russets), the resulting lost volume is significantly less than non-Idaho russets.”

Photo courtesy of Idaho Potato Commission

Pemsler said the findings suggest that if retailers don’t discount Idaho russets to the same degree as non-Idaho russets, there wouldn’t be a significant effect on volume sold.

The study showed that overall price elasticity of bagged Idaho russets was 1.26 compared with 1.91 for bagged russets from other areas.

The study breaks down data from the entire U.S. and eight separate regions over the two-year period, according to an executive summary of the research.

In addition, Idaho potatoes are the least vulnerable to competitive pricing.

Based on scan data of 5- and 10-pound bags, Idaho russet potatoes have the highest profit margin potential compared with potatoes from other origins.

“The fact is that even if you pay 10 cents a bag more for Idaho russets, you can charge 20 cents per bag more at retail,” Pemsler said

Bulk potatoes were not evaluated because of inconsistencies found in the data due to the nature of price-look-up stickers and misidentification of variety and brand/origin at checkout registers.

Bagged potatoes represented 70 percent of all potato volume tracked during the two-year study.

Pemsler estimated about 60 percent of retailers in the U.S. carry both Idaho and non-Idaho bagged russets.  The data has not yet been published but more details are available from the Idaho Potato Commission at Seth.Pemsler@potato.idaho.gov.

 

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California Rains Hit Produce Shipments; Florida Shipping Update

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DSCN8999Everyone is aware of the five-year drought in California.  While the drought may not be officially over, those rains are reducing produce shipments on some items and will have an effect of loadings heading into spring.

California strawberry shipments have been hit hardest by the rains, while citrus loadings have also been affected, but not as much.

The rains post phoned the strawberry harvest along the Central and Southern Coast areas of Santa Maria and Oxnard, due to waterlogged fields  A significant amount of strawberries were damaged and had to be dumped or sent to the processors.

The good news is more spring like weather is expected for the next 10 days or so.

There is a big bloom in California strawberries in Santa Maria and Oxnard, which should result in good shipments within a few weeks.  At Watsonville, the heaviest production area for strawberries, the new season likely will be delayed to the end of March or early April, a couple of weeks later than last year.

Both Florida and Mexico are at the end of their strawberry season, but trying to extend shipments later than normal to help cover the losses in California volume.  Caution is urged loading strawberries from any of these three areas as high market prices resulting from low volume sometimes tempt shippers to load product they normally would not otherwise send to the fresh market.  Just make sure the receiver of this fruit knows what they are getting.

Ventura County strawberries and vegetables – grossing about $3300 to Dallas.

Florida Produce Shipments

The Plant City area of Florida is shipping over 600 truck loads of strawberries a week, but as mentioned in the previous paragraph, watch for late season quality issues….Likewise, the light Mexcian strawberry volume is mostly crossing the border in South Texas and averaging about 125 truck loads as its season in winding down.

Back in Florida, perhaps the heaviest shipments are occurring with tomatoes with over 600 truckloads being shipped weekly.  Other leading items such as cabbage and grapefruit have much smaller volume.  Florida vegetable shipments in general will be increasing as we get further into March.

Florida tomatoes, and vegetables – grossing about $2600 to New York City.

 

 

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Fermented Foods Such as Kimchi Gain Popularity

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FriedasBy Frieda’s Inc.

LOS ALAMITOS, CA — Food trendsetters and health experts continue to sing the praises of fermented foods such as Kimchi, Korean refrigerated pickled vegetables.

Consumer Reports, Thrillist, and Food Network’s Healthy Eats blog are among many trends lists that called out fermented foods like kimchi, kombucha (fermented tea), and kefir (yogurt-like drink) as this year’s hot items.

As more research reveals the correlation between good digestive health and overall wellness, dietitians and other health professionals continue to recommend adding fermented foods like kimchi to one’s diet for a healthy dose of probiotics.

“More shoppers are looking to eat better and are getting their recommendations from retail dietitians. We are definitely seeing that in our sales over the past few years,” said Karen Caplan, president and CEO of Frieda’s Specialty Produce.

Frieda’s offers Nice & Mild “funky fresh” kimchi, Hot & Spicy kimchi that’s “fire in the bowl,” and “fiery and delish” Extra Hot kimchi—all with “friendly fermentation!”

“Kimchi is popular with the health and wellness set, as well as foodies everywhere,” said Caplan. “You can find recipes and pictures of kimchi in just about everything from Korean-inspired tacos and burgers to a Bloody Mary. Even the Idaho Potato Commission’s recent recipe contest winner is a kimchi potato recipe!”

Caplan also added, “The upcoming Chinese New Year promotion is a great opportunity to showcase this versatile fermented food along with other Asian vegetables.”

About Frieda’s Inc.

Frieda’s Specialty Produce has been inspiring new food experiences for friends, families, and food lovers everywhere since 1962. From kiwifruit and dragon fruit to Stokes Purple® sweet potatoes and habanero peppers, Frieda’s has introduced more than 200 unique fruits and vegetables to the U.S. marketplace. Founded by produce industry trailblazer Dr. Frieda Rapoport Caplan, subject of the 2015 documentary “Fear No Fruit,” the family company is owned and operated by Frieda’s daughters, Karen Caplan and Jackie Caplan Wiggins, in Orange County, California. Find Frieda’s on Facebook, @FriedasProduce, and Friedas.com.

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National Produce Shipping Outlook as We Wait for Spring Volume Increases

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DSCN7302If you thought produce hauling was bad in January, you’ve probably not found February to be any better.  But it’s that time of the year.  Hang in there, March is coming and volume on many items will be picking up as we head into spring.  In the meantime, here’s a national outlook for some of the better loading opportunities.

Apple Shipments

Washington state’s Yakima and Wenatchee valleys are providing the lion’s share of apple shipments, and the single biggest volume for any fruit or vegetable right now, moving around 3100 truck load equivalents per week.  Michigan and New York state are loading some apples, but nothing close to Washington.

Washington apples and pears – grossing about $6200 to New York City.

Potato Shipments

As has been the case for months, one of the heaviest volume produce item is with Idaho potato shipments.  Originating primarily from the Burley and Twin Falls areas, the state is averaging around 1900 truck load equivalents per week.  However, keep in mind with a big crop and low f.o.b. prices, shippers are looking for the cheapest transportation available, and often that is with the railroad….Colorado’s San Luis Valley is shipping about 600 truck loads of potatoes, while Central Wisconsin is moving about half that volume.

Idaho potato shipments – grossing about $5100 to New York City.

Imported Produce

Mexican imported  produce continues crossing the border near McAllen, Tx.  Avocados last week amounted to around 875 truck loads and volume is expected to increase.  Mexican tomatoes are around 500 truck loads per week.  There’s many other items in much smaller volume ranging from limes to watermelon crossing the South Texas border.

Imported cantaloupes are in good volume primarily from Guatemala and Honduras arriving mostly at Southern Florida ports and ports in Southern California…..Peruvian grape arrivals are pretty much finished.  Problems with Chilean grape quality are supposed to be improving now, but still keep an eye on what’s being loaded.  But Chile’s the only game in town now with grapes, with most arriving at Ports in the Philadelphia area.

 

 

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Loadings for St. Patrick’s Day; Plus Yuma Vegetable Shipments

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DSCN8840Here’s a look at loading opportunities for two favorite St. Patrick’s Day vegetables.  We also take a look at Yuma vegetable shipments, and California asparagus.

Cabbage and potato volume should be very good for shipments leading up to St. Patrick’s Day, which is March 17th.

South Florida cabbage shipments have started and will be in good volume heading into March.  Shipments will continue through May.

Potato Shipments

There will be plenty of  spuds available for the holiday with new crops of red potatoes and white potatoes from South Florida as well as late season storage red potatoes from the Red River Valley of North Dakota and Minnesota.  Idaho continues to heavily ship russet potatoes, but reds and whites are an Irish favorite.

Yuma Vegetable Shipments

Winter Yuma vegetables shipments are always a roll of the dice and this season seems no different, except maybe the issues are different.  Many of the same shippers out of Salinas also farm in Yuma, AZ.  In Salinas they are used to dealing with mildew.  The problem is rare in the desert, but has been a major problem this season, especially with head lettuce and romaine.  Mildew is caused by rain, warm temperatures and humidity.  The result has been a lot of fields have been disced.

The result will be lighter volume for the last month or so with Yuma vegetable shipments.  There’s also growing concerns with Yuma tending to finish up a few weeks early, that Salinas may get off to a slow start this season and there could be major shipping gaps from late March, through April and perhaps into May.

Yuma vegetable shipments – grossing about $3800 to Chicago.

Asparagus Shipments

California asparagus shipments should get underway in early to mid-March, from the Stockton-Delta area.  It is estimated the state has 9,000 to 10,000 acres of “grass” and volume is expected to be similar to last season.  There also is good news in that water supplies have improved a lot over a year ago with reservoirs continuing to rise.

Asparagus shipments typically get a boost from the Easter observance (April 16th), which is one of the most popular times of year for the vegetable.

Last week in our report on the growing volume from Mexico with many vegetables, we noted it often comes at the expense of California.  An excellent example of this is labor costs.

California’s minimum wage is headed to $15 per hour by 2023. A new law also requires agricultural workers to be paid overtime after eight hours, down from 10 hours previously.  Asparagus is cut by hand and is one of the most labor intensive crops in the produce industry.

 

 

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Port of Oakland Sets a Record for Loaded Container Volume

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oaklandportThis past year loaded shipping container volume reached an all-time high at the Port of Oakland, CA.

The port reported a 7.6 percent increase handling the equivalent of 1.83 million loaded 20-foot containers last year — which beat the previous record of 1.82 million 20-footers in 2013.

The port attributed the milestone to a year-long containerized export boom, as well as growth in imports.  It noted the record is important since loaded container volume is a key measure used to calculate fees paid by Oakland’s marine terminal tenants.  Increased volume means the port gained business in 2016, even though it consolidated five terminals into four.

“This is a gratifying outcome,” Port of Oakland Maritime Director John Driscoll said in a press release.

Port officials said total 2016 volume — full and empty containers — equaled 2.37 million 20-foot containers, up 4 percent from 2015.

Containerized export volume jumped 10.5 percent in 2016.  In December, exports were up 13.5 percent — the fourth straight month of double-digit export growth.

Oakland import volume increased 4.7 percent last year, while December imports were up 6.1 percent.

Exports accounted for 52 percent of Oakland’s loaded container volume in 2016.

Port of Oakland History

Originally, the enclosed coaster body of water, 500 feet wide, had a depth of two feet at mean low tide. In 1852, the year of Oakland‘s incorporation as a town by the California State Legislature, large shipping wharves were constructed along the Oakland Estuary, which was dredged to create a viable shipping channel. 22 years later, in 1874, the previously dredged shipping channel was deepened to make Oakland a deep water port.

In the late 19th century, the Southern Pacific was granted exclusive rights to the port, a decision the city soon came to regret. In January 1906, a small work party in the employ of the Western Pacific Railroad, which had just begun construction, hastily threw a crossing over the SP line to connect the WP mainline with trackage built on an area of landfill. This act, protested by the SP and later held up in court, broke the railroad’s grip on the port area. The courts ruled that all landfill since the date of the agreement did not belong to the SP. This ruling ended SP control and made the modern Port of Oakland possible.

 

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Mexican Vegetable Shipments Continue Crossing at Nogales

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DSCN8842Decent volume of Mexican vegetables continue to cross the border into the U.S. at Nogales, AZ.

Good quality and ample volume is available with vegetables ranging from squash, to bell peppers and cucumbers.  Heaviest volume is with bell peppers and cucumbers (each averaging about 500 truck loads per week), and squash, around 400 truck loads weekly.  There are less amounts of items such as watermelon, eggplant, red, yellow and orange bell peppers and mini peppers out and beans, among others.

There has been pretty good volume a lot of perfect weather, which may result in many vegetables peaking earlier than usual and possibly resulting in an early end to shipments in early March.

Still, there is a wide range of items, including soft squash, such as zucchini, yellow and gray, and hard squash such as acorn, butternut and spaghetti as well as green beans, fresh pickles, green and colored bell peppers and eggplant, American and English cucumbers, and roma tomatoes.

There will be increasing volume of some vegetables crossing the border into Nogales in March and April with conventional and organic bell peppers, mini sweet peppers and long English cucumbers.

Of note is a number of Nogales distributors, as well as an increasing number of Mexican growers have been contracting directly with U.S. wholesalers and retailers.  This is a significant change in the way Mexican vegetables are distributed from just a few years ago.  Many of those Mexican growers are working closely with U.S. growers from California.

Mexican table grapes, which start increasing in volume as most Mexican vegetable items are headed to a seasonal end, will start sometime the last half of April, if not early May.  Mexican grapes provided the heaviest volume for the U.S. during the spring until California’s San Joaquin Valley gets going in June.

Mexican vegetable shipments through Nogales – grossing about $4600 to New York City.

 

 

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