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Record US Organic Sales is Reported for 2015

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OrganicThe booming U.S. organic industry posted new records in 2015, with total organic product sales hitting a new benchmark of $43.3 billion, up 11 percent from the previous year’s record level and far outstripping the overall food market’s growth rate of 3 percent, according to the Organic Trade Association’s 2016 Organic Industry Survey.
The industry saw its largest annual dollar gain ever in 2015, adding $4.2 billion in sales, up from the $3.9 billion in new sales recorded in 2014. Of the $43.3 billion in total organic sales, $39.7 billion were organic food sales, up 11 percent from the previous year, and non-food organic products accounted for $3.6 billion, up 13 percent. Nearly 5 percent of all food sold in the U.S. is organic.
U.S. organic sales and growth over time
2015 was a year of significant growth for the industry despite the continued struggle to meet the consumer demand for organic. Supply issues persisted to dominate the industry, as organic production in the U.S. lagged behind consumption. In response, the organic industry came together in creative and proactive ways to address the supply challenge, to improve and develop infrastructure, and to advocate for policy to advance the sector.
“The industry joined in collaborative ways to invest in infrastructure and education, and individual companies invested in their own supply chains to ensure a dependable stream of organic products for the consumer. Despite all the challenges, the organic industry saw its largest dollar growth ever,” said OTA’s CEO and Executive Director Laura Batcha.
Produce the gateway to organic
Organic produce retained its longstanding spot as the largest of all the organic categories with sales of $14.4 billion, up 10.6 percent. Produce has always been and continues to be a gateway to organic. It’s easy for shoppers to make the connection between agricultural practices used in the field and the fresh fruit or vegetables they bite into. Almost 13 percent of the produce sold in this country is now organic.
The demand for fresh organic was most evident in the continued growth of “fresh juices and drinks,” which saw explosive growth of 33.5 percent in 2015, making it the fastest-growing of all the organic subcategories. The fastest-growing of the eight major organic categories was condiments, which crossed the $1 billion mark in sales for the first time in 2015, on 18.5 percent growth.
 
More accessible, but challenges persist in supply chain
Increased consumer demand for organic products in 2015 could also be attributed to greater access to these products from mainstream retailers. As supermarkets, big box stores, membership warehouse clubs, and other outlets continued to up their organic offerings, organic options have become more available than ever before.
Despite strategic challenges, OTA’s Batcha is confident about the industry’s future prospects. “Organic is a bright spot in agriculture and the economy of America. Our success will continue to be built on a solid foundation of stakeholder engagement, transparency and meaningful organic standards that consumers trust in.”
OTA’s 2016 Organic Industry Survey was conducted and produced on behalf of OTA by Nutrition Business Journal (NBJ). The survey was conducted from January 7, 2016, through March 25, 2016. More than 200 companies responded to the survey.

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Red River Valley Potato Shipments Could Take Big Hit

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DSCN4387The Red River Valley of North Dakota and Minnesota historically has been the largest red potato shipping area in the country.  However, devastating weather factors may change that for the 2016-17 shipping season.
Ted Kreis, editor of Potato Bytes, the weekly online news publication of the Northern Plains Potato Growers Association (NPPGA) reports the heart of “Potato Country” in northeast North Dakota was devastated by baseball size hail that lasted up to 35 minutes on the night of July 19th.
The worst hail damage was along Highway 18 from Mountain to Hoople in Pembina and Walsh Counties but heavy rain, hail and strong winds  caused damage to a much larger area extending south into northern Grand Forks County and east to the Red River
The Crystal, ND area was hard hit.  Some growers that had previously lost 20 percent of their crops from heavy rains saw that number jump to as much as 80 percent.  Property damage was also heavy.
Bruce Huffaker, publisher of North American Potato Market News (NAPMN)  projects an 8.6 percent jump in red acres for the U.S. fall crop.  A small increase was projected for the Red River Valley, but that doesn’t jive with the NPPGA’s own surveys of valley wash plants that showed a small decrease.  Weather damaged red potato acres will trim harvest acres even further.
Huffaker’s analysis projects an increase of nearly 5,000 acres in the top ten fall crop states.  Most notable is a 1,450 acre increase in Washington and just under 1,000 additional acres in Michigan.
The largest potato shipping state, Idaho, is projected to hold at 9,750 acres.  Those are high yielding irrigated acres which mean that Idaho’s red potato production could rival the Red River Valley this year, especially if crop losses are as heavy as projected in northeast North Dakota.
Twin Falls, ID area russet potatoes – grossing about $3800 to Atlanta.

 

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Sweet Potato Popularity is Soaring

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003Between 2009 and 2014, per capita sweet potato consumption grew 60 percent in the United States to 7.5 pounds, according to U.S. Department of Agriculture data.

North Carolina easily leads sweet potato shipments, where about half of all domestic sweet potatoes are grown.

Sweet potato popularity has taken off with a 400 percent increase in sales since 2009 and a 30 percent increase in 2015 alone.  Already this year the dollar value of shipments is tracking 30 percent ahead of 2015’s record year, which exceeded $100 million for the first time. The United Kingdom receives over half of all exports from North Carolina, followed by the Netherlands and Canada. Belgium and Germany have seen big bumps in recent years and new markets like Norway are taking off.  The Tar Heel State has also been investing to develop export markets, particularly in Europe, where sweet potatoes are not a traditional part of the diet.

North Carolina sweet potatoes are an unfamiliar food for many Europeans, but their sweet flavor, healthy profile and versatility are quickly winning over new consumers. The North Carolina Sweet Potato Commission has partnered with the North Carolina Department of Agriculture and Consumer Services’ International Trade Office to run education and promotion campaigns to introduce sweet potatoes to Europeans and show how to prepare and enjoy them.  Current NCSPC Executive Director Kelly McIver came from NDACS’ marketing division and managed those programs.

“Introducing sweet potatoes to Europe gave us an opportunity to build our story for this ‘exotic’ vegetable,” McIver said in a press release. “We executed an integrated campaign that reached the trade, media and consumers to make N.C. sweet potatoes part of their diet.”

Europeans have adopted sweet potatoes in meal preparation throughout the year. While popular for holiday tables, sweet potatoes are also being grilled or added to salads in the summer, while being roasted or added to soups and stews in colder months. Their extensive nutrition benefits, delicious taste, and versatility are making sweet potatoes a regular part of meals at home and in restaurants.

Sweet potato shipments from  the Benson, NC area to Miami, FL – grossing about $2000;$1500 to Philadelphia; and $1000 to Atlanta.

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California Produce Shipments in Summer Mode

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108_0830+1Here’s a round up of opportunities for California produce shipments.

Complaints continue to be heard about the lousy westbound freight rates across the country.  There also isn’t a lot of excitement over refrigerated loads for fresh fruits and vegetables.  Even California seems subdued this summer, the West Coast is still your best bet.

Salinas Valley Produce Shipments

Adequate truck supplies seem to be the norm anymore in California.  The reasons given are numerous, but we won’t dwell on that now.

Head lettuce is accounting for around 1,000 truck loads per week in the Salinas Valley, but volume with other types of lettuce (romaine, leaf) are substantially lower.  There’s also the usual suspects in the fields ranging from celery to bell peppers, among many others.  In the nearby Watsonville district, strawberries are  finally in a consistent mode, with both volume and quality.  Over 900 truckloads of strawberries are being shipped each week.  The Santa Maria district just to the south of Salinas is shipping similar items, but in much less volume.

Salinas vegetables and Watsonville berries – grossing about $7000 to New York City.

San Joaquin Valley Produce Shipments

The heaviest volume out of the San Joaquin Valley now is probably grapes and cantaloupe.  Table grapes are heaviest in the Southern part of the valley closer to the Bakersfield area, but are gaining in volume as the season spreads northward in the valley.  Cantaloupe loadings are now good out of the Westside district of the San Joaquin Valley from places such as Firebaugh.  Both grapes and cantaloupes are averaging around 1,250 truckloads per week.

Growers in Fresno County ship almost 250,000 tons of cantaloupes from 11,400 acres.

Tomato shipments are now originating out of the central valley.  There’s also is moderate loadings with peaches.  Both items are averaging around 500 truck loads each per week.  Nectarines and plums also are being shipped, but in relatively light volume.

San Joaquin Valley produce – grossing about $4100 to Dallas.

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A National Produce Shipping Smorgasbord

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DSCN7132Here’s a smorgasbord of produce loading opportunities from around the nation ranging from Michigan to Missouri, the east coast, Idaho and the southwest.

Michigan Produce Shipments

There is light to moderate shipments of summer vegetables coming out of Michigan, primarily in the western half of the state.  Cucumbers are one of the heavier volume items, but it is still only about 200 truck loads per week.  Other items range from squash to celery.  Blueberry shipments continue to increase in volume, while sweet corn is just getting started.  Peach loadings will be down significantly this season.

Michigan blueberries and vegetables – grossing about $850 to Chicago.

Midwest Produce Shipments

Watermelon shipments are your best bet here.  In the boot heel of Southeastern Missouri, about a 1,000 truckloads of watermelons were loaded last week, and volume is still increasing….Meanwhile, southwestern Indiana and southeastern Illinois watermelon shipments are very light and it will be another two weeks before substantial volume is available.

Missouri watermelons – grossing about $1500 to Chicago.

Eastern Produce Shipments

In New Jersey, peach loadings are just getting underway, while the blueberry season is coming to an end….New York state is starting to wake up with items ranging from Hudson Valley sweet corn to cucumbers picking up in August….Watermelon loadings should be moving into decent volume in a couple of weeks from Delaware, Maryland and the Eastern Shore of Virginia.

Idaho Potato Shipments

Idaho continues to ship potatoes from the 2015-16 crop.  The state is moving nearly 1,900 truckload equivalents weekly.  Potato loadings are relatively light by comparison from other states.

Idaho potatoes – grossing about $5000 to New York City.

New Mexico Onion Shipments

Onion shipments are available from the southern part of the state and averaging around 750 truckloads per week….Across the state line in the Hereford, Tx area, potato shipments are moving into good volume with the new crop.  Shippers are still trying to sell some of the old crop, which increases your chances of quality problems at destination.

New Mexico onions – grossing about $3400 to Atlanta.

Now wasn’t this a smorgasbord?

 

 

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Savannah Port Getting New Cold Treatment Facility

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DSCN3254+1Within a few weeks PortFresh Logistics, a Georgia-based company, plans to open a 100,000 square-foot cold treatment facility dedicated to perishable cargoes.  These items will be imported through the Port of Savannah.  The facility will strengthen Savannah in its role as a new entry point for South American produce.

Brian Kastick, CEO of PortFresh Logistics, said the company has been working for more than two years to meet the need for additional chilled cargo infrastructure in Savannah.
“Currently, more than 90 percent of imported fruits and vegetables entering the U.S. East Coast arrive via Northeast ports,” Kastick said. “That means cargo headed to the Southeast must be trucked down, adding time and expense to the logistics supply chain.”
Thanks to a new U.S. Department of Agriculture program allowing South American citrus fruit, grapes, blueberries and other produce items to enter via the Port of Savannah, substantial cost savings are now available to customers across the Southeast and beyond.
“Using the Port of Savannah offers significant time and money savings per container for areas throughout the Southeast region,” Kastick said.
PortFresh’s state-of-the-art cold storage facility, on 20 acres of a 182-acre site, is specifically designed to allow multiple climate zones. Engineered to maintain cold chain integrity, the facility will ensure delivery of the freshest and safest produce from the port to the customer.
Chris Logan, GPA senior director of Trade Development for beneficial cargo owner sales said “Citrus, avocados, blueberries and other products are already moving through the Port of Savannah, and we hope to grow that portfolio.”
The facility will handle both import and export cargo.

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Citrus Shipments to be Down; Maine Broccoli Starts

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DSCN3786+1American citrus shipments are expected to be down this season.  Meanwhile, off the radar a bit, might be loading opportunities in Maine for – of all things – broccoli.

U.S. growers are expected to produce about 138 million boxes of oranges this season, down from 147 million boxes in 2014-15.

The drop continues a years-long trend in U.S. orange production, according to the July citrus forecast from the U.S. Department of Agriculture’s National Agricultural Statistics Service.

About 156 million boxes of oranges were produced in the U.S. in 2013-14, 190 million boxes in 2012-13.

By state, Florida orange shipments should hit about 81.5 million boxes this season, up from the June estimate of 81.4 million boxes but down from 97 million boxes last season, 105 million boxes in 2013-14 and 134 million boxes in 2012-13.

California’s orange shipments are projected to be 55 million boxes and Texas orange shipments are estimated at 1.7 million boxes in 2015-16.

About 19.6 million boxes of U.S. grapefruit are expected this season, down from the June estimate of 20 million boxes. It’s also fewer boxes than the 2014-15 total of 21.5 million boxes, the 2013-14 total of 25.2 million boxes and the 2012-13 total of 29 million boxes.

U.S. growers should ship about 23.4 million boxes of lemons this season, up from the June estimate of 22.5 million boxes, 22.6 million boxes in 2014-15, 20.6 million boxes in 2013-14 and 22.8 million boxes in 2012-13.

U.S. tangerine production also continues its upward trend. About 23.4 million boxes are expected in 2015-16, comparable to the June estimate and up from 20.9 million boxes last season, 17.8 million boxes in 2013-14 and 16.4 million boxes in 2012-13.

Southern California citrus and avocados – grossing about $5600 to Atlanta.

Maine Broccoli Shipments

Shipper Fresh from the Start expects to start shipping Maine broccoli anytime and continue through October out of Fort Kent Mills, Me.

Once the Maine broccoli is harvested, it is boxed and packed in the field.  The product is then pre-cooled with a Slush Ice Injection System and the vast majority is shipped the same day. The company ships broccoli year-round between its broccoli crop in California and Maine program.  The company is part of Hapco Farms LLC, headquartered in Riverhead, NY.

Hapco also ships potatoes year-round, as well as watermelons, vegetables and fruit year-round from all production areas, including California, Florida, Canada and offshore imported produce.

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Health Benefits of Grapefruit is Cited

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DSCN4665Grapefruit are not only known for being great for those on diets because of the low-calories, but grapefruit is also a great source of vitamins and nutrients.

 Grapefruit is a relative newcomer among citrus fruits that wasn’t discovered until the 18th century in Barbados.  Though its origins were a mystery for years, many historians agree that it is a natural hybrid of the sweet orange and pomelo.  As for its curious name, a Jamaican farmer named the large orbs “grapefruit” for the way they grow in grape-like clusters on the trees.
As well as being a good source of dietary fiber (8 percent Daily Value) and potassium (5 percent DV), half a medium grapefruit provides 64 percent DV of vitamin C and 28 percent DV of vitamin A; it also contains the health protective plant chemicals naringenin, limonin, lycopene (in pink and red varieties) and beta-carotene.
Long associated with weight loss, grapefruit studies have shown mixed results.  A recent review of studies on the effectiveness of grapefruit consumption on overweight and obese individuals showed no significant difference between those eating grapefruit and those who did not.  However, the analysis, published in a 2015 issue of Critical Reviews in Food Science and Nutrition, showed a significant decrease in blood pressure.
Regular grapefruit juice consumption also benefits arterial stiffness in middle-aged, post-menopausal women (American Journal of Clinical Nutrition, 2015), and adult consumption of grapefruit is associated with improved diet quality, including higher nutrient intakes of vitamin C, magnesium, potassium and dietary fiber (Food and Nutrition Research, 2014).
Grapefruit is available in markets year-round, but its peak season is January through June.

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Northwest Shipping Updates for Potatoes, Apples

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DSCN7794Here are shipping updates on for Northwest potato shipments starting soon, as well as U.S apple shipments that are winding down before the new crop is ready.

Potato shipments from the Northwest could get underway a week or more earlier than usual this season.

Unlike a year ago when drought and triple digit heat was hitting potato fields, weather this year has been much more favorable.  Columbia Basin potato shipments from Washington and Oregon should get underway in late July.  That’s a significant change from last year when both potatoes and tree fruits suffered from heat stress.

While estimates have not yet been released on projected volume many see  similar volume to last year and probably more.  Because of great growing conditions there are concerns of oversupply as shipments take off in August and September.

The great growing conditions in the Northwest includes Idaho, easily the nation’s largest potato shipper.

For Washington’s Skagit Valley potatoes, one of the later starting regions in the Pacific Northwest, is expected to start earlier this year.  Harvesting could begin as early as August 15th.  For the past few years, Labor Day has been a more typical kickoff.

Apple Shipments

About 238 million bushels of U.S.-grown apples were grown in the U.S. in 2015, 12% fewer the current season that is winding down in the next month or so.

The July estimate, the last one of the 2015-16 season from the U.S. Department of Agriculture’s National Agricultural Statistics Service, was also 1% lower than the five-year average and 2% lower than a preseason estimate, according to an analysis of the data by the Vienna, Va.-based U.S. Apple Association.

The estimate was higher, however, than the 235 million bushels forecasted at U.S. Apple’s 2015 annual marketing conference.

Shipments by industry leader Washington fell from 174 million last season to 142 million bushels this season.

Washington’s 2015 total was also 4% below the five-year average, and 8.3 million bushels lower than the 2015 USDA preseason estimate.

Shipments from industry No. 3 Michigan also fell, from 24.4 million to 23.7 million bushels. That was 3% less than last year but 14% above the five-year average and comparable to the preseason USDA estimate.

The second and fourth largest U.S. shippers, New York and Pennsylvania, both saw volumes increase in 2015.

New York jumped from 30.8 million to 32.4 million bushels, Pennsylvania from 11.7 million to 12.4 million bushels.

New York’s total was 5% above last season and 13% above the five-year average, Pennsylvania’s 5% above last season and 7% above the five-year average.

The final USDA estimate for New York was 6.2 million bushels, or 24%, higher than its 2015 preseason estimate.

Washington apple shipments – grossing about $4000 to Chicago.

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Record NW Cherry Shipments Occurring

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DSCN4890by Northwest Cherry Growers

Through July 5th, the Northwest cherry industry has shipped over  15 million boxes (20-pound equivalent), including 13.97 million boxes of dark sweets.  Contributing to that was a June that  finished even larger than predictions, with a total of 12.3 million boxes.  That’s a 3 percent increase over last year’s new record of 11.9 million boxes.

Cherries were everywhere for the 4th of July.  And with more retail ads breaking nationally, momentum for cherry shipments out of the holiday appears to be maintained.  In fact, this July 5th saw more cherry shipments than ever before, topping 2012’s record of 523,000 by another 50,000 boxes.  The 7-day shipment average through the 4th holiday (6/28-7/4) was the second highest on record at 452k boxes, with only 2009’s ultra-compressed season seeing more boxes per day at 505,652.

Total Rainier shipments are just below 1.47 million 15-pound boxes. Rainier shipments per day have decreased from a daily high this season of over 95,000 boxes to a weekly average ending on the 5th of 17,000 per day.  However, beautiful cherries remain in some orchards and shipments of yellow cherries will continue to trickle out to displays worldwide.

A study performed by the Nielsen Perishables Group in 2014 found the biggest factor behind a late-season purchase decision by a consumer was, in fact, the awareness that it was the “late season” for cherries… Put another way, roughly 1 out of 3 cherry buyers don’t make their first purchase until they realize it’s their LAST CHANCE TO BUY CHERRIES FOR THE SEASON.

Top retailers each season use that to their advantage, and communicate the late season opportunity by communicating that at the shelf level.  Participants in the North American in-store radio program will be hearing the switch from trivia & Holiday related ads to Buy Now, Freeze Now messaging to support multiple-unit sales. For those with an NWCG Promotional Ad Program in place, promotions are available for circular-inclusion of similar messaging.

Washington cherries – grossing about $6500 to New York City.

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