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Fresh avocados are one of the most successful categories in fresh produce. Nearly 60 percent of U.S. households purchase avocados each year and spend $23.91 on average, driving annual household purchases of over $1.6 billion, according to The Hass Avocado Board’s newly released Shopper Segmentation Study. The study was based on data from The IRI Consumer Network, analyzes the households that are buying avocados and reveals the underlying purchase behaviors that are driving this category.
The segments for the study was conducted by ranking avocado purchasing households by each household’s total annual avocado spend (high to low), and then dividing this ranked list into four equal segments. The top-spending quartile (25 percent) is designated super heavy households, while the remaining three segments are referred to as heavy, medium and light households. Discerning the differences in purchasing behaviors between these households is one of the keys to unlocking the potential of the avocado category.
This segmentation found that a very large proportion of avocado purchases are made by one shopper segment, the Super Heavy segment. While comprising only one out of every four households, super heavy shoppers account for nearly three out of every four avocado purchases. Additionally, super heavy households purchase avocados twice as often as heavy households, and spend twice as much per avocado shopping occasion. This means that the super heavy segment is a particularly influential and important part of the avocado category.
The remaining three segments each account for a smaller share of avocado dollars than their respective share of households would suggest. As the second-highest spending quartile (25 percent), heavy households account for 18 percent of avocado purchases. Combined, super heavy and heavy households account for 91 percent of all avocado purchases at retail. Based on their high level of engagement in the category, super heavy and heavy households are more apt to respond positively to marketing efforts to increase their purchases even further.
by The Michigan Apple Committee
LANSING, Mich. — The Michigan Apple industry set new shipment records eleven weeks in a row in from October 15 through Christmas, according to the USDA Specialty Crop Market News Service.
“These record numbers come as no surprise after the Michigan Apple industry reported an estimated record crop of 31 million bushels for 2016. Growers, packers and shippers have been working very hard to continue to move the apple crop,” said Diane Smith, executive director of the Michigan Apple Committee. “These numbers illustrate not only that we have a large crop, but also that there is great retail and consumer demand for Michigan-grown apples.”
According to the USDA Specialty Crop Market News Service, the organization that tracks shipment numbers, the Michigan apple shipments totaled 330,150 boxes of apples the week of October 15. The weeks of October 22, 29, and November 5 each recorded more than 300,000 boxes. The week of December 24 saw shipments at 153,787 boxes, more than 1,200 higher than that week in 2013. Comprehensive shipment data for Michigan and the entire U.S. can be found at the USDA Specialty Crop Market News Service website, at ttp://www.marketnews.usda.gov/portal/fv.
“With the adoption of high-density orchard plantings, more trees in the ground and new technology from the orchard, to the packing line, to the retailer, this is a trend that will continue,” said Smith. “Michigan is poised to increase apple production into the future, and the Michigan Apple Committee is prepared to support that growth through retail programs, consumer education and research funding.”
With 11.3 million total apple trees in commercial production on 35,500 acres, Michigan is the second largest producer of apples in the United States, and distributes apples to 27 states and 18 countries.
The Michigan Apple Committee is a grower-funded nonprofit organization devoted to marketing, education and research activities to distinguish the Michigan apple and encourage its consumption in Michigan and around the world. For more information, visit www.MichiganApples.com.
Western Michigan apples – grossing about $2700 to Atlanta.
A snowfall described by some that only occurs every 25 years hit the major onion shipping area of western Idaho and Malheur County, Oregon on January 8, damaging a number of structures, including some storage sheds. Transportation has been very difficult due to highways being closed, or are difficult to navigate.
Beside the large amounts of snow that fell over the weekend, rains followed that made the snow even heavier.
Snake River Produce of Nyssa, OR, lost a storage facility. Although it didn’t have onions stored there, several trucks reportedly sustained heavy damage. Three other Nyssa onion operations had packing and storage buildings collapse. One company reportedly lost about 4,200 bins of onions.
In Ontario, OR one shed lost about 2,000 bins of onions when the roof gave way.
Haun Packing of Weiser, ID, reported the loss of a storage building collapse. While the onions had already been moved out there was some equipment inside.
Collapses in the region were reported to be about 20 structures, including four or five packing sheds, with storage buildings comprising the rest.
Facilities costing hundreds of thousands of dollars even before losses of product or equipment are tallied are expected to be very significant.
Avocado Shipments
California used to the place if a produce trucker was hauling avocados. However, you load avocados now, chances are good the pick up will be occurring in South Texas with imported Mexican avocados.
Mexico provide year-round availability and a consistent, high-quality fruit and is the primary reason for the astronomical growth in popularity in the U.S.
Before Mexico, It used to be avocado availability was inconsistent due to the alternate-bearing nature of crops in both California and Chile. Supplies would be typically in good supply one year and tight the following season.
However, avocados grown Mexico year after year tend to provide a lot more consistency in supplies and quality. Buyers for major American retail grocery chains like that.
Additionally, Mexico has four blooms each year and farmers can grow in altitudes ranging from 4,000 feet to 8,000 feet. This is not the case in Chile or California.
Imported Mexican avocados account for at least 75 percent of the avocados shipped to U.S. markets.
Some California avocado growers, as well as a number of produce brokers and shippers in the U.S. sell more Mexican avocados than their own product grown in California.
SweeTango weekly apple sales increased 43.6 percent in the U.S. between August 7th and October 29th. This was and average of 54 pounds per store over the same time frame in 2015, according to apple grower cooperative Next Big Thing.
The co-op, which includes 47 growers from Washington to Nova Scotia, cited Nielsen Co. data in a news release, saying SweeTango was the 10th-best-selling apple overall — falling just behind Pink Lady and Jazz — and the second-best-selling apple when compared only to club varieties, according to the data.
Pricing for SweeTango averaged $2.33 per pound and $233 a week per store in sales.
A marketing program by Next Big Thing was rolled out across the U.S. and Canada in 2016 that included “refreshed packaging designs” and joint efforts with retailers to invest in digital coupons and in-store demos.
The campaign included a new tagline, “Free the Crunch,” along with a social media contest that generated 1,400 entries on Facebook, Twitter and Instagram, as well as a 42 percent increase in traffic to SweeTango.com, over a 47-day period.
The initiative also had a series of short-form animated videos promoting the apple variety’s crunch and flavor, which drew 42,000 views on YouTube and Facebook over a 90-day period.
The effort also included a SweeTango Society blogger outreach program, with 12 bloggers in the U.S. and Canada featuring unique SweeTango recipes on their blogs from September through November.
“Consumer awareness and trial for the brand continues to receive favorable responses at shows as well as with in-store sampling and local marketing events,” said David Williams, vice president of sales and marketing with Wolcott, N.Y.-based Fowler Bros. Inc..
A highlight of the season was partnering with the Syracuse Crunch AHL hockey team to promote the uber-crunchy SweeTango with sampling, in-game fan activities like apple dunking on the ice, and more.
The overall 2016 crop was slightly larger than 2015 but marginally smaller than projected due to Midwest hail in the early growing season and harvest-time cracking in New York, the co-op reported.
Union Pacific Railroad announced recently the acquisition of Railex LLC’s refrigerated and cold storage distribution assets in Delano, CA, Wallula, WA, and Rotterdam, NY. Terms were not disclosed, and the acquisition does not include Railex Wine Services LLC.
Railex, a refrigerated rail service and third-party logistics leader, plays a key role in Union Pacific’s Food Network transporting fruits, vegetables and other temperature-sensitive cargo across the United States.
“The Railex team developed a fantastic business changing how fresh food arrives on America’s tables, offering food shippers fast, reliable door-to-door rail based transportation solutions,” Brad Thrasher, vice president and general manager of agricultural products for UP, said in a press release. “The integration of their highly efficient cross dock facilities and logistics capabilities into Union Pacific’s broader food network allows us to offer our customers increased access to a wider range of capacity and service solutions in a rail-centric cold chain.”
Union Pacific, based in Omaha, NE, food trains directly serve Railex’s Delano and Wallula facilities, located in the heart of major agricultural-production regions. The food train network provides a fast and reliable service from these growing regions to the Midwest consumer base via Chicago and further into the heart of the Northeast region via the CSX. Railex will continue managing facilities during the transition and integration of its operations with Union Pacific.
In an Aug. 24, 2016 post, HaulProduce.com rported the following:
Even refrigerated carriers have their challenges hauling fresh produce, but it is an awesome mountain for rail entities, which is why there have been so many failures over the years. Now we hear Railex LLC is ending service to the Southeast, although it claims it will be back one day.
The rail logistics transporter, based in Riverhead, NY, ceased operations in Jacksonville, FL August 13th with its refrigerated perishables. Rumors of the closing had been circulating since July. The company apparently felt it was in its best interest to reassess the Southeast receiving location and close the Jacksonville location…..Paul Esposito, executive vice president of corporate affairs said. “The transit times were two days longer than what we had planned and what our customers expected. Now, two years later, during the peak summer season, with transit variabilities as well as the decline in truck rates, we find it difficult to sustain any significant volume into the area.”
To read the entire post from last August, click on “Sections” and then click on “News,” then scroll down to the 8/24/16 post.
by California Giant Berry Farms
Watsonville, CA – With increased acreage and somewhat favorable weather conditions for berries this winter, California Giant Berry Farms is excited about the 2017 berry season.
Field personnel attending the annual California Giant sales meeting in December shared positive news about berry acreage statistics citing consistent increases for all berry types in 2017 as well as new varieties on tap. For the first time in several years, the company has increased acreage in Oxnard due to positive test plot results and now sufficient availability of two new short day varieties. For many years they have been making due with day neutral varieties better suited for northern districts, but this year the company is excited about the Petaluma and Fronteras varieties bringing new life to their Oxnard program.
California Giant has similar increases in acreage in other growing regions within the state and in Mexico on strawberries as well as increases overall in blueberry volume for the year, year-round blackberries and an emerging raspberry program for the fall of 2017.
In addition to acreage, the company is also very optimistic about the more normal winter weather pattern in California this year providing rainfall, good chill and excellent plant health for the spring and summer harvest season on strawberries.
This marks the second year in a row that rain has returned to the state and snow pack is almost at a normal range.
The rainfall in California does provide challenges on forecasting volume during the first quarter especially as trading partners gear up for Valentine’s Day and build demand for stem berries. The sales team California Giant is already responding to requests and is optimistic about availability since they are sourcing product from California, Florida and Mexico.
January will continue to see weather events in each growing region but California Giant trading Partners can expect to receive regular updates from the California Giant team through their bi-weekly e-news called ‘The Buzz’. It is easy to subscribe through the website or by contacting sales team members at California Giant. This year-round electronic newsletter contains up to the minute crop information, field photos, weather updates and marketing programs in place to help build sales and consumer loyalty.
(Editor’s Note: Oxnard (Ventura County) currently is shipping very limited strawberry volume. Heaviest strawberry shipments are currently from the Plant City, FL area and to a lesser degree from Mexico. Florida strawberries – grossing about $2800 to Chicago.
Over 11 million wood-grain reusable plastic containers have been shipped by IFCO since entering the market in January.
More than 300 growers have placed orders that are destined for Wal-Mart stores with fresh produce, according to a news release.
“We are proud to partner with Wal-Mart and its fresh produce suppliers to provide them with innovative, efficient, cost-effective and sustainable reusable packaging that transitions easily to in-store display,” Daniel Walsh, president of IFCO North America, said in the release. “Surpassing the 11 million wood-grain RPC threshold so quickly is an impressive accomplishment made possible through strong collaboration between Wal-Mart, the grower community and IFCO.”
After reaching an agreement with Wal-Mart in October of 2015, IFCO designed the RPCs to the retailer’s specifications and also took into account feedback from growers.
“Wal-Mart chooses to use wood-grain RPCs to deliver produce for a variety of reasons,” Shawn Baldwin, senior vice president of produce, floral and global food sourcing for Wal-Mart USA, said in the release. “They have better ventilation, they’re ergonomically designed and very easy to use, and our customers really like the new wood-grain RPCs because they look more like a farmers market or roadside fruit stand, which provides a level of comfort during the shopping experience.”
About IFCO
IFCO Systems North America, Inc. designs, develops, and manufactures reusable plastic containers for fresh products, including fruits and vegetables, meat, eggs, and bananas to grocery retailers in North America. IFCO Systems North America, Inc. was formerly known as PalEx, Inc. and changed its name to IFCO Systems North America, Inc. in March 2000. The company was founded in 1996 and is based in Houston, Texas. As of March 22, 2000 IFCO Systems North America, Inc. operates as a subsidiary of Ifco SYSTEMS N.V.
IFCO offers the complete RPC solution, managing all aspects of container logistics: pool management, inventory, tracking, repair, sanitation and transportation.
Good apple loading opportunities for produce truckers should remain throughout the season which normally continues into August. This will be particularly true for Washington state, the nation’s leading apple shipper.
There are significant differences in U.S. apple shipments by region, but fresh market apples remaining in storages stood at 120.3 million bushels on December 1st. This is an increase of 13 percent over a year earlier and 12 percent more than the five-year average of 107.5 million bushels.
New York state easily leads apple shipments in the Northeast and was particularly hit hard by cold weather at blossom time. Plus a persistent drought during the growing season didn’t help New York or other Northeastern apple shippers.
New York apples in storage as of last November 1st were down 28 percent from the same date a year earlier.
Also of interest is Michigan apple shipments now rank number 2 in the nation, having surpassed New York. Michigan apples in storages were 17 percent higher last November than the previous season, thanks primarily to good growing conditions.
Apples remaining in storage in the Western states, led by Washington, were 17 percent higher on November 1st than a year earlier.
Nationally, the total number of apples in storage was 179 million bushels, 11 percent more than the previous year total of 161 million bushels.
Apples are big business. The fruit had totaled $2.9 billion in total sales as of October 29th, or 7.3 percent more than the same period in 2015.
Gala was the dominant variety, with $670.5 million in sales, followed by Honeycrisp, $541.5 million; fuji, $386.6 million; granny smith, $330.9 million; red delicious, $311.3 million; Pink Lady, $157.5 million; golden delicious, $129.2 million; mcintosh, $80.5 million; and Ambrosia, $60.9 million.
Apple growers in Michigan harvested an estimated 31 million bushels in 2016, compared to New York’s total of an estimated 28 million bushels.
Washington had its second-largest apple crop in history — 137.4 million bushels as of November. The record is the 2014 crop of 142 million bushels. There are 7 million more cartons of red delicious and 5 million more of galas remaining in Washington storages, compared to 2015.
Apple shipments from Eastern growing areas hasn’t been as fortunate. There was a record cold snap in mid-April in Pennsylvania and other states, which may have reduced the New York and Pennsylvania crops by up to a third.
Yakima Valley (WA) apples and pears – grossing about $6400 to New York City.
Western Michigan apples – grossing about $3100 to Dallas.
Not only has The Port of Savannah recently 
received its first-ever shipment of table grapes, it was the port’s first fresh produce, coordinated by Alpharetta, Ga.-based AGRO Merchants Group, which operates cold storage facilities in the U.S., Europe and Latin America.
While this first time happening may be modest, it could very well mean increased loading opportunities for truckers hauling fresh fruits and vegetables out of the Southeastern U.S.
Fresh Peruvian table grapes were shipped by Divine Flavor, a grower-owned distribution partner of the Mexican company Grupo Alta, according to a news release.
Nordic Cold Storage, a member of AGRO Merchants Group, managed the local handling and logistics of the shipment.
AGRO said it was the first shipment of fresh produce imported through the port and stored in a chilled facility in Savannah.
“We are very excited to work with the AGRO Merchants team on our Peruvian grape program in Savannah,” Divine Flavor’s chief operating officer, Jose Antonio Martinez, said in the release. “Their superb customer service has been evident since day one and their reputation as an expert third-party service provider in the perishable industry is well-founded.”
The Peruvian grapes will be delivered to retailers in the Southeast and Midwest, according to the release, and the proximity of the Port of Savannah to Divine Flavor’s customers will save up to five days in delivery.
In response to the rising market demand for fresh produce to be handled through the growing Savannah seaport, AGRO converted part of the nearly 400,000-square-foot Nordic frozen facility into chilled refrigerated space, an interim solution while the company completes construction of a new facility in the Port of Savannah, according to the release.
The Port of Savannah is only 250 miles from the major distribution hub in the Southeast – Atlanta – and also provides easy access to markets throughout the Southeastern United States.
A $300 million upgrade is coming to The Port of Philadelphia for upgrading its infrastructure, warehousing and equipment. Fresh produce is a major beneficiary of the improvements.
“Absolutely. It’s one of our key commodities we handle at the port,” said Sean Mahoney, marketing director for the Philadelphia Regional Port Authority. “We’re known for refrigeration, and we want to upgrade.”
Pennsylvania Gov. Tom Wolf recently announced the project, which will include about a $200 million investment in the Packer Avenue Marine Terminal — the port’s primary container terminal.
“The place we’ve always continually handled fruit and produce is Packer Avenue,” Mahoney said.
The plans call for doubling the cargo-handling capacity at the terminal, which already is the port’s busiest.
Container-handling capacity will increase, with a 900,000 20-foot-equivalent (TEU) capacity immediately resulting from the improvements, scalable to exceed 1.2 million TEU capacity in the future, a significant improvement over the terminal’s current 400,000-plus TEU capacity.
The Philadelphia port has long been known for handling Chilean fruit, and now it is expanding its presence for other countries such as Peru. This is resulting in a shift from the old form of shipping from break bulk to more containers. The increased port capacity will reflect this trend.
Construction will continue through 2020, leading to a doubling of container capacity, increasing efficiency and allowing an opportunity for future growth.
“This capital investment program will give the Port of Philadelphia the tools it needs to improve its competitive position and create thousands of family-sustaining, middle class jobs while increasing state revenues,” Wolf said in a news release.
A total direct job increase of 70 percent is projected from the current level of 3,124 to a projected 5,378 direct jobs. Total employment at the port will grow from 10,341 to 17,020.
The improvements at the Packer Avenue Marine Terminal, the Port’s primary container facility, will occur at about the time that the Delaware Main Channel Deepening Project, which is deepening the Port’s main shipping channel from 40 to 45 feet, will be completed.
Fresh avocados are one of the most successful categories in fresh produce. Nearly 60 percent of U.S. households purchase avocados each year and spend $23.91 on average, driving annual household purchases of over $1.6 billion, according to The Hass Avocado Board’s newly released Shopper Segmentation Study. The study was based on data from The IRI Consumer Network, analyzes the households that are buying avocados and reveals the underlying purchase behaviors that are driving this category.
The segments for the study was conducted by ranking avocado purchasing households by each household’s total annual avocado spend (high to low), and then dividing this ranked list into four equal segments. The top-spending quartile (25 percent) is designated super heavy households, while the remaining three segments are referred to as heavy, medium and light households. Discerning the differences in purchasing behaviors between these households is one of the keys to unlocking the potential of the avocado category.
This segmentation found that a very large proportion of avocado purchases are made by one shopper segment, the Super Heavy segment. While comprising only one out of every four households, super heavy shoppers account for nearly three out of every four avocado purchases. Additionally, super heavy households purchase avocados twice as often as heavy households, and spend twice as much per avocado shopping occasion. This means that the super heavy segment is a particularly influential and important part of the avocado category.
The remaining three segments each account for a smaller share of avocado dollars than their respective share of households would suggest. As the second-highest spending quartile (25 percent), heavy households account for 18 percent of avocado purchases. Combined, super heavy and heavy households account for 91 percent of all avocado purchases at retail. Based on their high level of engagement in the category, super heavy and heavy households are more apt to respond positively to marketing efforts to increase their purchases even further.
by The Michigan Apple Committee
LANSING, Mich. — The Michigan Apple industry set new shipment records eleven weeks in a row in from October 15 through Christmas, according to the USDA Specialty Crop Market News Service.
“These record numbers come as no surprise after the Michigan Apple industry reported an estimated record crop of 31 million bushels for 2016. Growers, packers and shippers have been working very hard to continue to move the apple crop,” said Diane Smith, executive director of the Michigan Apple Committee. “These numbers illustrate not only that we have a large crop, but also that there is great retail and consumer demand for Michigan-grown apples.”
According to the USDA Specialty Crop Market News Service, the organization that tracks shipment numbers, the Michigan apple shipments totaled 330,150 boxes of apples the week of October 15. The weeks of October 22, 29, and November 5 each recorded more than 300,000 boxes. The week of December 24 saw shipments at 153,787 boxes, more than 1,200 higher than that week in 2013. Comprehensive shipment data for Michigan and the entire U.S. can be found at the USDA Specialty Crop Market News Service website, at ttp://www.marketnews.usda.gov/portal/fv.
“With the adoption of high-density orchard plantings, more trees in the ground and new technology from the orchard, to the packing line, to the retailer, this is a trend that will continue,” said Smith. “Michigan is poised to increase apple production into the future, and the Michigan Apple Committee is prepared to support that growth through retail programs, consumer education and research funding.”
With 11.3 million total apple trees in commercial production on 35,500 acres, Michigan is the second largest producer of apples in the United States, and distributes apples to 27 states and 18 countries.
The Michigan Apple Committee is a grower-funded nonprofit organization devoted to marketing, education and research activities to distinguish the Michigan apple and encourage its consumption in Michigan and around the world. For more information, visit www.MichiganApples.com.
Western Michigan apples – grossing about $2700 to Atlanta.
A snowfall described by some that only occurs every 25 years hit the major onion shipping area of western Idaho and Malheur County, Oregon on January 8, damaging a number of structures, including some storage sheds. Transportation has been very difficult due to highways being closed, or are difficult to navigate.
Beside the large amounts of snow that fell over the weekend, rains followed that made the snow even heavier.
Snake River Produce of Nyssa, OR, lost a storage facility. Although it didn’t have onions stored there, several trucks reportedly sustained heavy damage. Three other Nyssa onion operations had packing and storage buildings collapse. One company reportedly lost about 4,200 bins of onions.
In Ontario, OR one shed lost about 2,000 bins of onions when the roof gave way.
Haun Packing of Weiser, ID, reported the loss of a storage building collapse. While the onions had already been moved out there was some equipment inside.
Collapses in the region were reported to be about 20 structures, including four or five packing sheds, with storage buildings comprising the rest.
Facilities costing hundreds of thousands of dollars even before losses of product or equipment are tallied are expected to be very significant.
Avocado Shipments
California used to the place if a produce trucker was hauling avocados. However, you load avocados now, chances are good the pick up will be occurring in South Texas with imported Mexican avocados.
Mexico provide year-round availability and a consistent, high-quality fruit and is the primary reason for the astronomical growth in popularity in the U.S.
Before Mexico, It used to be avocado availability was inconsistent due to the alternate-bearing nature of crops in both California and Chile. Supplies would be typically in good supply one year and tight the following season.
However, avocados grown Mexico year after year tend to provide a lot more consistency in supplies and quality. Buyers for major American retail grocery chains like that.
Additionally, Mexico has four blooms each year and farmers can grow in altitudes ranging from 4,000 feet to 8,000 feet. This is not the case in Chile or California.
Imported Mexican avocados account for at least 75 percent of the avocados shipped to U.S. markets.
Some California avocado growers, as well as a number of produce brokers and shippers in the U.S. sell more Mexican avocados than their own product grown in California.
SweeTango weekly apple sales increased 43.6 percent in the U.S. between August 7th and October 29th. This was and average of 54 pounds per store over the same time frame in 2015, according to apple grower cooperative Next Big Thing.
The co-op, which includes 47 growers from Washington to Nova Scotia, cited Nielsen Co. data in a news release, saying SweeTango was the 10th-best-selling apple overall — falling just behind Pink Lady and Jazz — and the second-best-selling apple when compared only to club varieties, according to the data.
Pricing for SweeTango averaged $2.33 per pound and $233 a week per store in sales.
A marketing program by Next Big Thing was rolled out across the U.S. and Canada in 2016 that included “refreshed packaging designs” and joint efforts with retailers to invest in digital coupons and in-store demos.
The campaign included a new tagline, “Free the Crunch,” along with a social media contest that generated 1,400 entries on Facebook, Twitter and Instagram, as well as a 42 percent increase in traffic to SweeTango.com, over a 47-day period.
The initiative also had a series of short-form animated videos promoting the apple variety’s crunch and flavor, which drew 42,000 views on YouTube and Facebook over a 90-day period.
The effort also included a SweeTango Society blogger outreach program, with 12 bloggers in the U.S. and Canada featuring unique SweeTango recipes on their blogs from September through November.
“Consumer awareness and trial for the brand continues to receive favorable responses at shows as well as with in-store sampling and local marketing events,” said David Williams, vice president of sales and marketing with Wolcott, N.Y.-based Fowler Bros. Inc..
A highlight of the season was partnering with the Syracuse Crunch AHL hockey team to promote the uber-crunchy SweeTango with sampling, in-game fan activities like apple dunking on the ice, and more.
The overall 2016 crop was slightly larger than 2015 but marginally smaller than projected due to Midwest hail in the early growing season and harvest-time cracking in New York, the co-op reported.
Union Pacific Railroad announced recently the acquisition of Railex LLC’s refrigerated and cold storage distribution assets in Delano, CA, Wallula, WA, and Rotterdam, NY. Terms were not disclosed, and the acquisition does not include Railex Wine Services LLC.
Railex, a refrigerated rail service and third-party logistics leader, plays a key role in Union Pacific’s Food Network transporting fruits, vegetables and other temperature-sensitive cargo across the United States.
“The Railex team developed a fantastic business changing how fresh food arrives on America’s tables, offering food shippers fast, reliable door-to-door rail based transportation solutions,” Brad Thrasher, vice president and general manager of agricultural products for UP, said in a press release. “The integration of their highly efficient cross dock facilities and logistics capabilities into Union Pacific’s broader food network allows us to offer our customers increased access to a wider range of capacity and service solutions in a rail-centric cold chain.”
Union Pacific, based in Omaha, NE, food trains directly serve Railex’s Delano and Wallula facilities, located in the heart of major agricultural-production regions. The food train network provides a fast and reliable service from these growing regions to the Midwest consumer base via Chicago and further into the heart of the Northeast region via the CSX. Railex will continue managing facilities during the transition and integration of its operations with Union Pacific.
In an Aug. 24, 2016 post, HaulProduce.com rported the following:
Even refrigerated carriers have their challenges hauling fresh produce, but it is an awesome mountain for rail entities, which is why there have been so many failures over the years. Now we hear Railex LLC is ending service to the Southeast, although it claims it will be back one day.
The rail logistics transporter, based in Riverhead, NY, ceased operations in Jacksonville, FL August 13th with its refrigerated perishables. Rumors of the closing had been circulating since July. The company apparently felt it was in its best interest to reassess the Southeast receiving location and close the Jacksonville location…..Paul Esposito, executive vice president of corporate affairs said. “The transit times were two days longer than what we had planned and what our customers expected. Now, two years later, during the peak summer season, with transit variabilities as well as the decline in truck rates, we find it difficult to sustain any significant volume into the area.”
To read the entire post from last August, click on “Sections” and then click on “News,” then scroll down to the 8/24/16 post.
by California Giant Berry Farms
Watsonville, CA – With increased acreage and somewhat favorable weather conditions for berries this winter, California Giant Berry Farms is excited about the 2017 berry season.
Field personnel attending the annual California Giant sales meeting in December shared positive news about berry acreage statistics citing consistent increases for all berry types in 2017 as well as new varieties on tap. For the first time in several years, the company has increased acreage in Oxnard due to positive test plot results and now sufficient availability of two new short day varieties. For many years they have been making due with day neutral varieties better suited for northern districts, but this year the company is excited about the Petaluma and Fronteras varieties bringing new life to their Oxnard program.
California Giant has similar increases in acreage in other growing regions within the state and in Mexico on strawberries as well as increases overall in blueberry volume for the year, year-round blackberries and an emerging raspberry program for the fall of 2017.
In addition to acreage, the company is also very optimistic about the more normal winter weather pattern in California this year providing rainfall, good chill and excellent plant health for the spring and summer harvest season on strawberries.
This marks the second year in a row that rain has returned to the state and snow pack is almost at a normal range.
The rainfall in California does provide challenges on forecasting volume during the first quarter especially as trading partners gear up for Valentine’s Day and build demand for stem berries. The sales team California Giant is already responding to requests and is optimistic about availability since they are sourcing product from California, Florida and Mexico.
January will continue to see weather events in each growing region but California Giant trading Partners can expect to receive regular updates from the California Giant team through their bi-weekly e-news called ‘The Buzz’. It is easy to subscribe through the website or by contacting sales team members at California Giant. This year-round electronic newsletter contains up to the minute crop information, field photos, weather updates and marketing programs in place to help build sales and consumer loyalty.
(Editor’s Note: Oxnard (Ventura County) currently is shipping very limited strawberry volume. Heaviest strawberry shipments are currently from the Plant City, FL area and to a lesser degree from Mexico. Florida strawberries – grossing about $2800 to Chicago.
Over 11 million wood-grain reusable plastic containers have been shipped by IFCO since entering the market in January.
More than 300 growers have placed orders that are destined for Wal-Mart stores with fresh produce, according to a news release.
“We are proud to partner with Wal-Mart and its fresh produce suppliers to provide them with innovative, efficient, cost-effective and sustainable reusable packaging that transitions easily to in-store display,” Daniel Walsh, president of IFCO North America, said in the release. “Surpassing the 11 million wood-grain RPC threshold so quickly is an impressive accomplishment made possible through strong collaboration between Wal-Mart, the grower community and IFCO.”
After reaching an agreement with Wal-Mart in October of 2015, IFCO designed the RPCs to the retailer’s specifications and also took into account feedback from growers.
“Wal-Mart chooses to use wood-grain RPCs to deliver produce for a variety of reasons,” Shawn Baldwin, senior vice president of produce, floral and global food sourcing for Wal-Mart USA, said in the release. “They have better ventilation, they’re ergonomically designed and very easy to use, and our customers really like the new wood-grain RPCs because they look more like a farmers market or roadside fruit stand, which provides a level of comfort during the shopping experience.”
About IFCO
IFCO Systems North America, Inc. designs, develops, and manufactures reusable plastic containers for fresh products, including fruits and vegetables, meat, eggs, and bananas to grocery retailers in North America. IFCO Systems North America, Inc. was formerly known as PalEx, Inc. and changed its name to IFCO Systems North America, Inc. in March 2000. The company was founded in 1996 and is based in Houston, Texas. As of March 22, 2000 IFCO Systems North America, Inc. operates as a subsidiary of Ifco SYSTEMS N.V.
IFCO offers the complete RPC solution, managing all aspects of container logistics: pool management, inventory, tracking, repair, sanitation and transportation.
Good apple loading opportunities for produce truckers should remain throughout the season which normally continues into August. This will be particularly true for Washington state, the nation’s leading apple shipper.
There are significant differences in U.S. apple shipments by region, but fresh market apples remaining in storages stood at 120.3 million bushels on December 1st. This is an increase of 13 percent over a year earlier and 12 percent more than the five-year average of 107.5 million bushels.
New York state easily leads apple shipments in the Northeast and was particularly hit hard by cold weather at blossom time. Plus a persistent drought during the growing season didn’t help New York or other Northeastern apple shippers.
New York apples in storage as of last November 1st were down 28 percent from the same date a year earlier.
Also of interest is Michigan apple shipments now rank number 2 in the nation, having surpassed New York. Michigan apples in storages were 17 percent higher last November than the previous season, thanks primarily to good growing conditions.
Apples remaining in storage in the Western states, led by Washington, were 17 percent higher on November 1st than a year earlier.
Nationally, the total number of apples in storage was 179 million bushels, 11 percent more than the previous year total of 161 million bushels.
Apples are big business. The fruit had totaled $2.9 billion in total sales as of October 29th, or 7.3 percent more than the same period in 2015.
Gala was the dominant variety, with $670.5 million in sales, followed by Honeycrisp, $541.5 million; fuji, $386.6 million; granny smith, $330.9 million; red delicious, $311.3 million; Pink Lady, $157.5 million; golden delicious, $129.2 million; mcintosh, $80.5 million; and Ambrosia, $60.9 million.
Apple growers in Michigan harvested an estimated 31 million bushels in 2016, compared to New York’s total of an estimated 28 million bushels.
Washington had its second-largest apple crop in history — 137.4 million bushels as of November. The record is the 2014 crop of 142 million bushels. There are 7 million more cartons of red delicious and 5 million more of galas remaining in Washington storages, compared to 2015.
Apple shipments from Eastern growing areas hasn’t been as fortunate. There was a record cold snap in mid-April in Pennsylvania and other states, which may have reduced the New York and Pennsylvania crops by up to a third.
Yakima Valley (WA) apples and pears – grossing about $6400 to New York City.
Western Michigan apples – grossing about $3100 to Dallas.
Not only has The Port of Savannah recently received its first-ever shipment of table grapes, it was the port’s first fresh produce, coordinated by Alpharetta, Ga.-based AGRO Merchants Group, which operates cold storage facilities in the U.S., Europe and Latin America.
While this first time happening may be modest, it could very well mean increased loading opportunities for truckers hauling fresh fruits and vegetables out of the Southeastern U.S.
Fresh Peruvian table grapes were shipped by Divine Flavor, a grower-owned distribution partner of the Mexican company Grupo Alta, according to a news release.
Nordic Cold Storage, a member of AGRO Merchants Group, managed the local handling and logistics of the shipment.
AGRO said it was the first shipment of fresh produce imported through the port and stored in a chilled facility in Savannah.
“We are very excited to work with the AGRO Merchants team on our Peruvian grape program in Savannah,” Divine Flavor’s chief operating officer, Jose Antonio Martinez, said in the release. “Their superb customer service has been evident since day one and their reputation as an expert third-party service provider in the perishable industry is well-founded.”
The Peruvian grapes will be delivered to retailers in the Southeast and Midwest, according to the release, and the proximity of the Port of Savannah to Divine Flavor’s customers will save up to five days in delivery.
In response to the rising market demand for fresh produce to be handled through the growing Savannah seaport, AGRO converted part of the nearly 400,000-square-foot Nordic frozen facility into chilled refrigerated space, an interim solution while the company completes construction of a new facility in the Port of Savannah, according to the release.
The Port of Savannah is only 250 miles from the major distribution hub in the Southeast – Atlanta – and also provides easy access to markets throughout the Southeastern United States.
A $300 million upgrade is coming to The Port of Philadelphia for upgrading its infrastructure, warehousing and equipment. Fresh produce is a major beneficiary of the improvements.
“Absolutely. It’s one of our key commodities we handle at the port,” said Sean Mahoney, marketing director for the Philadelphia Regional Port Authority. “We’re known for refrigeration, and we want to upgrade.”
Pennsylvania Gov. Tom Wolf recently announced the project, which will include about a $200 million investment in the Packer Avenue Marine Terminal — the port’s primary container terminal.
“The place we’ve always continually handled fruit and produce is Packer Avenue,” Mahoney said.
The plans call for doubling the cargo-handling capacity at the terminal, which already is the port’s busiest.
Container-handling capacity will increase, with a 900,000 20-foot-equivalent (TEU) capacity immediately resulting from the improvements, scalable to exceed 1.2 million TEU capacity in the future, a significant improvement over the terminal’s current 400,000-plus TEU capacity.
The Philadelphia port has long been known for handling Chilean fruit, and now it is expanding its presence for other countries such as Peru. This is resulting in a shift from the old form of shipping from break bulk to more containers. The increased port capacity will reflect this trend.
Construction will continue through 2020, leading to a doubling of container capacity, increasing efficiency and allowing an opportunity for future growth.
“This capital investment program will give the Port of Philadelphia the tools it needs to improve its competitive position and create thousands of family-sustaining, middle class jobs while increasing state revenues,” Wolf said in a news release.
A total direct job increase of 70 percent is projected from the current level of 3,124 to a projected 5,378 direct jobs. Total employment at the port will grow from 10,341 to 17,020.
The improvements at the Packer Avenue Marine Terminal, the Port’s primary container facility, will occur at about the time that the Delaware Main Channel Deepening Project, which is deepening the Port’s main shipping channel from 40 to 45 feet, will be completed.