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California Spring Produce Shipments will be Erratic for Weeks

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DSCN8983As the month of March progresses, produce shippers will be transitioning to the coastal valleys of California as well as the Huron district on the west side of the San Joaquin Valley.  However, for now primary vegetables shipments continue from the desert regions of California and Arizona.  But shipping gapes in the weeks ahead are certain.

Loadings for some early season cauliflower and broccoli should start from the Salinas Valley in mid-March.  Meanwhile desert lettuce shipments will shift to Huron (San Joaquin Valley) by the end of March.  However it be early April before lettuce and leaf items are shipped from Salinas.  This is when the shipping gaps will start and the issues will continue at least until May.

A couple of hours drive to the south a very similar scenario is seen in Santa Maria.  The broccoli and cauliflower currently being harvested has quality issues due to relentless recent rains.

Quality is expected to gradually improve along with volume throughout March, but yields and loadings will be down along with supply gaps.

Vegetable shipments from the California and Arizona deserts should finish during the third week of  March.

In Southern California, rains hit strawberry fields and volume is slowly improving, but still struggling to get back to normal.  Decent strawberry shipments are expected by the third week of March from Ventura County.  While Southern California strawberries are working to regain good volume, shipments from Florida and Mexico are starting to decline.  Both those areas of origin are well above their shipping levels compared to the same time in 2016.

Florida and Mexico had a combined volume of about 36 million cartons compared to about half that in late February 2016.  For the past two years, those two production areas have combined to ship around 50 million trays to U.S. markets.

In late February, California had shipped just 3 million crates compared to the close to 200 million it typically ships in a calendar year.

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New Food Safety Regulations May be “Government on Steroids”

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IMG_7013+1U.S. federal regulators are preparing to clamp down on those in the food supply chain ranging from shippers to truckers who do not comply with the federal government’s new food transportation safety rule coming in April.

The Food Safety Modernization Act (FSMA) was signed into law by President Barack Obama on January 4, 2011. It aims to ensure the U.S. food supply, from the way it is grown, harvested and processed,  to ensure it is safe by shifting the focus of federal regulators from responding to contamination to preventing it.

Many businesses have been slow to prepare for the U.S. Food and Drug Administration’s regulation on the sanitary transportation of human and animal food, implemented in response to the 2011 Food Safety Modernization Act. Some industry experts see the transportation industry as being pretty clueless about the rules.  Tough talk has been coming from those who are to enforce the new act.

The law was prompted after many reported incidents of  foodborne illnesses during the first decade of the 2000s.  Tainted food has cost the food industry billions of dollars in recalls, lost sales and legal expenses.

This bill is similar to the Food Safety Enhancement Act which passed the House in 2009.  It is considered the first major piece of federal legislation addressing food safety since 1938. ] It is also the first piece of legislation to address intentional adulteration.

The changes are expected  force shippers and carriers to have some serious talks involving new contracts or adjusting tweaks to existing agreements.

The new act will effect everything from the loading dock to the receiver’s dock and will need to document procedures, processes, training and records.

Transport Topics recently quoted Leonard “Bud” Rodowick, an executive at transport refrigeration unit supplier Thermo King Corp as saying, “It’s government on steroids.”  Indeed, the scope of the new rule is broad, requiring shippers, carriers, brokers, receivers and loaders to hone their best sanitary food transportation practices. The 283-page rule places the primary burden on shippers and manufacturers to ensure that the proper written procedures and data collection are in place to keep food properly cooled and trailers cleaned between loads.

However, it also requires carriers to make good on their promises to shippers.  The new FDA requirements are part of the federal government’s larger effort to prevent food safety problems, rather than reacting to crises when food becomes contaminated.

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Vidalia Onions Start in April; Western Onion Shipments; Plus the Imported Mango Outlook

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DSCN8995A packing date is set for Vidalia sweet onions.  Otherwise, primary onion loadings a taking place from two western U.S. areas.  Finally, here’s the outlook for imported mangoes.

An April 12th pack date for Vidalia onions has been set by the Georgia Department of Agriculture, which is about two weeks earlier than the pack dates during the past three seasons.

GDA rules mandate that no Vidalia onions can be packed or sold before the April 12 pack date.  The pack date is established prior to each season to ensure the highest quality onions are delivered to retail stores for consumers across the country.  The 2017 Vidalia onion crop is ahead of schedule because of the mild temperatures this winter thus resulting in the earlier pack date.  Any sweet onions shipped from the Vidalia growing district prior to April 12th cannot be sold and shipped as Vidalia onions.

This is a very quiet time of year for Georgia produce shipments, with very light volume on a few items such as carrots and greens.  Peach shipments are a couple of months away.

Storage Onion Shipments

The largest amount of onions coming out of domestic storages, averaging about 800 truck loads per week, is from western Idaho and nearby Malheur Co. in eastern Oregon.  Similar onion volume also is be loaded from the Columbia Basin in Washington state and the adjacent Umatilla Basin of Oregon.

Idaho/Oregon onions – grossing about $4200 to Atlanta.

Southern Washington/ Northern Oregon onions – grossing about $4800 to New York City.

Mango Imports

Mango imports for markets in the U.S. are expected to be similar in volume to last year.  Peruvian imported mangoes are rapidly declining as the season comes to a close, while it will be April before there is big volume crossing the border from Mexico.

U.S. consumption of mangos continues to increase as the tropical fruit becomes more mainstream than ever.  Since 2005, mango volume has increased over 75 percent, from 62 million boxes in 2005 to 109 million boxes in 2016.  U.S. per capita consumption has grown 58 percent since 2005 to almost three pounds per person in 2016.

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San Antonio Produce Market is Planning Expansion

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San_Antonio_MarketAll of the units are now full on the San Antonio Wholesale Produce Market, and now it is starting its next phase of development.

With all 50 of the produce market’s spaces available for lease being occupied, and it is now pre-selling lots in an industrial park scheduled to be completed in late 2018.

Once a company purchases a lot, which is about 10,000 square feet, it can build a warehouse there to its specifications.

Companies can start construction on their individual warehouses after the completion of the infrastructure of the industrial park, which will include streets and parking, water, sewer and electric services, and security, cleaning and maintenance of common areas.

“Our business is definitely moving in the right direction,” said Luz Moreno, sales and marketing director for San Antonio Wholesale Produce Market.

“The interest is definitely very good.”

Warehouses built on lots in the industrial park will allow for significantly more storage than current units, which are about 4,000 square feet.

Those hold about 150 pallets, while the warehouses built on the lots in the industrial park should be able to hold nearly 650 pallets.

San Antonio Produce Terminal Market is located at the address 1500 S Zarzamora St in San Antonio, Texas 78207. They can be contacted via phone at (210) 223-1235 for pricing, hours and directions. It was founded in 1948.

San Antonio Produce Terminal Market has an annual sales volume of $5 to 10 million. For more information contact Tom Preston, Executive Director

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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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