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About 12% of all produce sold in the U.S. is organic, according to a new study — almost double the amount found in another study.
SPINS, a market research firm for the organic and natural foods industry, arrived at the 12% figure through analysis of IRI Shopper Network bar code data from 100,000 U.S. households, according to a news release from the Washington, D.C.-based Organic Trade Association.
The SPINS figure is significantly higher than FreshLook Marketing retail scan data, which found that organic accounts for 6.9% of total produce sales.
Dick Spezzano, president of Monrovia, CA.-based Spezzano Consulting, said he’s never heard a number as high as 12%.
At some of the specialty retailers Spezzano works with, up to 15% of their produce is organic, but at more conventional retailers the numbers are lower.
“Safeway’s goal is 10% — some of their stores are 8%, some 12%. Kroger is about 8% or 9%, and I’m guessing Wal-Mart is lower than that.”
But double-digit annual growth in organic produce sales is real, Spezzano said, and within about two years, the 12% share could be reality. Growers are getting better at growing organic, he said, and as a result, the price gap between organic and conventional is shrinking.
Earl Herrick, owner and president of Earl’s Organic Produce, San Francisco, can only guess at organic’s share of total produce sales, but he does know business is booming.
“Eight percent, 10%, 12% — what do I know? But we definitely agree that the market is vital, strong and continues to grow.”
Earl’s has enjoyed 15% annual growth in recent years, Herrick said.
New SPINS data also claims that all categories of organic food accounted for nearly 5% of total U.S. food sales.
Organic produce sales account for more than 36% of all organic food sales, according to SPINS. Organics’ share of all produce sales has more than doubled in the past 10 years, according to SPINS.
Organic food sales totaled $35.9 billion in 2014, 11% more than the year before, according to a new Organic Trade Association survey conducted by Nutrition Business Journal.
Between 68% and 80% of households in U.S. southern states and almost 90% of households on the West Coast and in New England purchased organic in 2014, according to the survey.
More than 200 companies responded to the survey, according to the association.
Growers from California’s two primary pear growing regions—Lake and Mendocino counties and the Sacramento River Delta—are wrapping up harvest this year with positive reports about fruit quality. The two regions combined should ship approximately 170,000 tons of pears this season that will be shipped to fresh markets ranging from retailers to wholesalers and foodservice operations, plus canned markets across the U.S. and around the globe.
The total California pear shipments for Bartletts is estimated at 159,500 tons.
Of the 159,500 tons of pears expected this year, 113,000 tons are sold to canneries, 37,200 tons to the fresh market, and the remainder goes to baby food, puree and juice.
Rivermaid Trading Co. of Lodi, CA is the largest grower, packer and shipper of fresh pears in California, representing at least 50 percent of pears packed in the state, Most of these are Bartlett pears, although there are other varietals such as boscs, red pears, French butter and Comice.
California pears – grossing about $6600 to New York City.
Chilean Cranberry Imports
Chilean fresh cranberries will be exported to the U.S. for the first time, beginning in 2016. The Southern hemisphere country, which has a season opposite those of this country, will harvest its cranberries March through May.
Fall produce shipments such as pumpkins, squash and ornamentals originate from about 40 different states and in most instances truckers tend to haul the products on a local and regional basis.
Shipments on the East Coast are starting about normal this year. For example, one shipper is Jackson Farming of Autryville, NC that ships a half dozen different varieties of pumpkins, as well as limited amounts of squash and ornamentals. Heaviest loadings will occur during October.
Another example is Todd Greiner Farms, based in Hart, MI, which ships a few different varieties of pumpkins, squash and ornamentals.
Lusk Onion Co. of Clovis, NM ships its pumpkins regionally to Southern California, Arizona, New Mexico, Texas, Oklahoma and Louisiana. The company has pumpkins with a heavy red color as well as white pumpkins, but its best volume is the medium-size carving pumpkins, which account for about 80 percent of its business.
Finally, there is Van Groningen & Sons Inc., Manteca, Calif., which ships a complete offering of pumpkins and ornamentals. The company packs and ships pumpkins in 24-inch short bins and 36-inch tall bins, or in high-graphic decorative bins.
It’s common knowledge and has been for decades that the majority of truckers, especially long haul truckers oppose have higher weight limits since the last weight increase from about 73,280 pounds to 80,000 pounds occurred 30 years ago. The primary reasons drivers are against putting more weight in their trailers are pretty obvious.
First of all, the added weight results in greater wear and tear on their equipment. Added weight also results in increased consumption of diesel fuel and less miles per gallon. Equally important is the guys and gals behind the wheel of big rigs realized hauling more weight with the negatives just mentioned, certainly doesn’t mean they will be receiving more money in the form of higher freight rates.
This said, the rest of the information below is mostly what is coming from the other side of this issue.
New federal legislation that would give states the option to raise the Interstate system truck weight limit to 91,000 pounds for vehicles with six axles is supported by 32 organization such as United Fresh Produce Association, the National Potato Council and groups representing other industries such as food, manufacturing, beverage and forestry industries.
The group sent a letter in support of heavier trucks to Chmn. Bill Shuster (R-Pa.) and Ranking Member Peter DeFazio (D-Ore.) of the U.S. House Transportation and Infrastructure Committee.
The legislation was introduced by U.S. Rep. Reid Ribble, R-Wis., and is called the Safe and Efficient Transportation Act (H.R. 3488, known as SETA). Supporters claim the bill that is consistent with safety concerns and say heavier trucks won’t harm highways and bridges. They also state the legislation would result in fewer trucks to move more product in a safe way, thus reducing truck traffic.
With nearly 70% of all U.S. freight moved by trucks and total freight tonnage expected to grow nearly 25% over the next 10 years. This legislation claims it will increase truck capacity by 13% without adding more vehicles and ultimately reduce energy use and greenhouse gas emissions.
They also state the higher weight limit would reduce transportation costs for fresh produce.
“With trucking being the overwhelmingly dominant mode of domestic transport for fresh fruits and vegetables, it is imperative that our industry be able to move commodities by promoting efficiency and cost-savings, as well as safety and maintaining infrastructure as much as possible,” read a statement issued by the United Fresh Produce Association.
This will be a key component of the transportation message that United Fresh will deliver to Congress at the Sept. 28-30 Washington, D.C. Conference by United Fresh.
The letter previously mentioned referenced a recent study revealing a 91,000 pound truck with six axles can stop at the same distance traveling at 60 miles per hour as its 80,000 pound counterpart with five axles. NPC believes the study proves that truck weight reform is a commonsense and safe approach to lower the number of truck miles driven, improve highway safety and reduce wear to pavement. Rep. Ribble plans to offer H.R. 3488 as an amendment to the transportation act for highway funding.
Florida avocado shippers expect to harvest smaller volumes during the latter part of their season.
Peak Florida volumes are July and August although the region continues to ship fruit through February. Late season loadings will be 10% lighter than earlier season shipments.
Overall, the deal, which typically begins in early June, is expecting to ship about 1 million bushels, lower than last year’s 1.2 million bushels
Avocado Imports
Chilean avocado shipments to the U.S. should be light again this season as they were in 2014-15 season.
It was September before any Chilean avocado imports reached the U.S. About 1.1 million pounds of Chilean avocados arrived the week of Sept. 6, with 3.3 million pounds expected the week of Oct. 4 and 4.7 million boxes the week of Oct. 18.
But even when Chilean volumes hit 4.7 million boxes, they will be dwarfed by an estimated 37 million boxes that week from Mexico. with the vast majority of it crossing into South Texas. The Chileans have developed a good domestic market for avocados and have been exported more to Europe.
Mexican volumes, primarily crossing the U.S./Mexico border at McAllen, TX, will be huge throughout the season. California is expecting a big crop in its upcoming season.
In August, Mexico shipped about twice as many avocados as it did in August 2014, with September volumes forecast to be up 50%.
By the end of 2015, a projected 2.1 billion pounds of avocados will have shipped in the U.S., 14% more than last year. And with the massive growth in Mexico, shippers can meet demand even if Chile winds up taking another largely hands-off approach to the U.S. market this season.
Mexican fruit and vegetable imports through South Texas – grossing about $2100 to Atlanta.
Adding fresh fruits and vegetables into Arkansas school meals not only lowers obesity rates but can also save hundreds of dollars per-child to prevent obesity, according to a new study.
Conducted by researchers at the University of Arkansas System Division of Agriculture, the study was done in a state where residents report some of the nation’s highest childhood obesity rates.
The study focused on the U.S. Department of Agriculture’s Fresh Fruit and Vegetable Program which was designed to increase the amount of fruits and vegetables eaten by students in the nation’s poorest elementary schools.
Obesity rates dropped from 20% to 17% in sampled low-income elementary schools, once the program began.
The study calculated that the fruit and vegetable program costs were about $50-75 per-child per-year to reduce the obesity rate by 3%, small compared to the $280 to $339 per-student per-year cost of an effort to reduce childhood obesity by 1%, according to 2011 research.
“By this measure, our results suggest that the fresh fruit and vegetable program is a very cost-effective obesity prevention tool,” Rodolfo Nayga, a researcher and division professor, said in a press release. “Moreover, prevention of childhood obesity is in addition to the other nutritional benefits that come from increased fruit and vegetable consumption.”
USDA reimburses schools that offer students free fresh produce outside of breakfast and lunch.
Fresh produce price inflation will be low again in 2015 as it resists California’s drought, the USDA’s Economic Research Service has forecast.
The agency recently reported fresh fruit prices will increase just 2.5% to 3.5% this year, and fresh vegetable prices will rise 2% to 3%.
In May, the USDA said fresh fruit prices rose 1.7% compared with April, but were down 5.7% from May 2014. Fresh vegetable prices were 0.2% lower in May compared with April but up 1% compared with a year ago, according to the USDA.
For all food items, the Consumer Price Index for food was unchanged from April to May but 1.6% above year-ago levels.
In 2014, food price inflation was close to the 20-year historical average of 2.6%, despite the effect of the drought in the Southwest and California.
While the ongoing California drought could have “large and lasting effects on fruit, vegetable, dairy and egg prices,” the USDA at this time projects overall food-at-home inflation of about 1.75% to 2.7%.
If oil prices continue to fall or remain low this year, projected decreases in production and transportation costs may be passed along at the retail level, according to the USDA.
Since the opening of the Mexican superhighway that basically connects the Pacific Ocean produce growing areas with the Lower Rio Grande Valley of Texas, refrigerated truck traffic has gradually increased and more fruits and vegetables are crossing the border into the U.S. at Pharr/McAllen than at Nogales, AZ.
Both truck and auto traffic from central and western Mexico can reach the Pharr International Bridge and enter the U.S. five to seven hours faster than prior to the super highway being completed. lt took 15 years to construct the Mazatlan-Durango highway that has 115 bridges and 61 tunnels.
South Texans love to brag about how the new highway has allowed them to compete with Nogales and point out that within the past year more fresh produce is crossing the border at Pharr/McAllen than at Nogales. South Texas is now the number one point of entry for fresh produce entering the U.S., accounting for 60 percent of the imports. Leading the crossings are avocados followed by tomatoes.
This apparently is just the beginning as some observers are predicting in the next three to five years, produce volume from Mexico crossing the border in the Lower Rio Grande Valley will increase 40 to 45 percent. Besides saving time on shipments originating in Mexico, substantial savings on diesel fuel is cited for shipments destined from markets in the eastern half of the United States.
To accommodate the increasing traffic at the Pharr/McAllen border crossing, new warehousing is being constructed, as well as an expedited lane to the estimated 2,200 trucks crossing the border daily. Truckers pay a toll at the point of entry amounting to up to $23, depending upon the number of axles. Within a few years, truck traffic is predicted to hit 3,000 per day.
Mexican fruits and vegetables crossing the border into South Texas – grossing about $2400 to Chicago; $3800 to New York City.
California broccoli shipments continue to struggle with volume and quality, while raspberry loadings have improved. Meanwhile, record walnut loadings are forecast.
Just about the time it seem Salinas Valley lettuce shipments are getting straightened out from unpredictable highs and lows in volume, a similar problem is now occurring with Salinas Valley broccoli shipments. Again, similar to lettuce, broccoli has been facing some quality problems such as brown bead, hollow stem and stunted growth, which are the side effects of hot weather. Some areas of the Salinas Valley have hit 110 degrees recently. While quality is expected to improve going further into September, volume could remain below normal for weeks. It’s always good to check what’s being loaded onto the truck, so the buyer (receiver) knows what is being delivered.
Salinas Valley vegetables – grossing about $6800 to New York City.
Berry Shipments
Raspberry shipments from the Salinas/Watsonville district have improved in the past week as the weather has cooled. The berries are grown under hoops and inside the hoops, and it was simply too hot. This time of the year, raspberry production is limited to the Watsonville and Salinas areas. Shipments of the fruit normally occur from May through October.
Watsonville/Salinas berries – grossing about $4500 to Dallas.
Walnut Shipments
This year’s California walnut production from the San Joaquin Valley is forecast at a record 575,000 tons despite a lack of chilling hours during winter and the California drought that continues to impact the state. The forecast is up 1 percent from 2014’s production of 570,000 tons.
According to the USDA, California walnut acreage amounted to 181,000 in 1990 and increased every year to 300,000 acres in 2015. In the past decade alone, acreage increased by 40 percent. The number of trees per acre went up significantly as well.
New season Colorado potato shipments are underway, but still light in volume, while increasing.
About 250 truck loads were shipping last week.
While we don’t a forecast yet for the 2015-16 shipping season it appears there won’t be any drastic changes in total truck shipments from this past year.
The San Luis Valley planted 52,900 acres of potatoes for the 2014-15 shipping season. With the end of July the region had shipped nearly 14 million cwt of fresh market spuds.
There were 2,561 truck loads shipped during July, compared to 2,291 in July 2014 and 1,839 in 2013. Shipments to date for the 2014-15 seaspm were 30,325 truck loads, compared to 29,344 in 2014 and 31,988 in 2013.
Organic potato acreage continues to increase, and now exceeds 4,000 acres.
Shipments of yellow potatoes also is increasing. It now accounts for 8 to 10 percent of the volume each year nationally. Russet Norkotahs continue to lead the pack in overall potato acreage in the San Luis Valley. Red potato shipments are a much smaller percentage.
Fingerlings and specialty potato shipments also are increasing from the San Luis Valley.
San Luis Valley potato shipments – grossing about $3300 to Cleveland.
Woerner Purchases Cañon Potato
Cañon Potato Co. has been acquired by Woerner Holdings Inc. and Woerner subsidiary H.C. Schmieding Produce Co. will market and distribute potatoes from Cañon’s Center, Colo., facility.
In the deal, Woerner takes on the packing and storage facility of Cañon Potato, which announced its closure in 2013. That’s when the co-owner and a sales veteran left to join a competing Colorado shipper.
Springdale, Ark.-based potato shipper H.C. Schmieding Produce was sold to West Palm Beach, Fla.-based Woerner in April.
About 12% of all produce sold in the U.S. is organic, according to a new study — almost double the amount found in another study.
SPINS, a market research firm for the organic and natural foods industry, arrived at the 12% figure through analysis of IRI Shopper Network bar code data from 100,000 U.S. households, according to a news release from the Washington, D.C.-based Organic Trade Association.
The SPINS figure is significantly higher than FreshLook Marketing retail scan data, which found that organic accounts for 6.9% of total produce sales.
Dick Spezzano, president of Monrovia, CA.-based Spezzano Consulting, said he’s never heard a number as high as 12%.
At some of the specialty retailers Spezzano works with, up to 15% of their produce is organic, but at more conventional retailers the numbers are lower.
“Safeway’s goal is 10% — some of their stores are 8%, some 12%. Kroger is about 8% or 9%, and I’m guessing Wal-Mart is lower than that.”
But double-digit annual growth in organic produce sales is real, Spezzano said, and within about two years, the 12% share could be reality. Growers are getting better at growing organic, he said, and as a result, the price gap between organic and conventional is shrinking.
Earl Herrick, owner and president of Earl’s Organic Produce, San Francisco, can only guess at organic’s share of total produce sales, but he does know business is booming.
“Eight percent, 10%, 12% — what do I know? But we definitely agree that the market is vital, strong and continues to grow.”
Earl’s has enjoyed 15% annual growth in recent years, Herrick said.
New SPINS data also claims that all categories of organic food accounted for nearly 5% of total U.S. food sales.
Organic produce sales account for more than 36% of all organic food sales, according to SPINS. Organics’ share of all produce sales has more than doubled in the past 10 years, according to SPINS.
Organic food sales totaled $35.9 billion in 2014, 11% more than the year before, according to a new Organic Trade Association survey conducted by Nutrition Business Journal.
Between 68% and 80% of households in U.S. southern states and almost 90% of households on the West Coast and in New England purchased organic in 2014, according to the survey.
More than 200 companies responded to the survey, according to the association.
Growers from California’s two primary pear growing regions—Lake and Mendocino counties and the Sacramento River Delta—are wrapping up harvest this year with positive reports about fruit quality. The two regions combined should ship approximately 170,000 tons of pears this season that will be shipped to fresh markets ranging from retailers to wholesalers and foodservice operations, plus canned markets across the U.S. and around the globe.
The total California pear shipments for Bartletts is estimated at 159,500 tons.
Of the 159,500 tons of pears expected this year, 113,000 tons are sold to canneries, 37,200 tons to the fresh market, and the remainder goes to baby food, puree and juice.
Rivermaid Trading Co. of Lodi, CA is the largest grower, packer and shipper of fresh pears in California, representing at least 50 percent of pears packed in the state, Most of these are Bartlett pears, although there are other varietals such as boscs, red pears, French butter and Comice.
California pears – grossing about $6600 to New York City.
Chilean Cranberry Imports
Chilean fresh cranberries will be exported to the U.S. for the first time, beginning in 2016. The Southern hemisphere country, which has a season opposite those of this country, will harvest its cranberries March through May.
Fall produce shipments such as pumpkins, squash and ornamentals originate from about 40 different states and in most instances truckers tend to haul the products on a local and regional basis.
Shipments on the East Coast are starting about normal this year. For example, one shipper is Jackson Farming of Autryville, NC that ships a half dozen different varieties of pumpkins, as well as limited amounts of squash and ornamentals. Heaviest loadings will occur during October.
Another example is Todd Greiner Farms, based in Hart, MI, which ships a few different varieties of pumpkins, squash and ornamentals.
Lusk Onion Co. of Clovis, NM ships its pumpkins regionally to Southern California, Arizona, New Mexico, Texas, Oklahoma and Louisiana. The company has pumpkins with a heavy red color as well as white pumpkins, but its best volume is the medium-size carving pumpkins, which account for about 80 percent of its business.
Finally, there is Van Groningen & Sons Inc., Manteca, Calif., which ships a complete offering of pumpkins and ornamentals. The company packs and ships pumpkins in 24-inch short bins and 36-inch tall bins, or in high-graphic decorative bins.
It’s common knowledge and has been for decades that the majority of truckers, especially long haul truckers oppose have higher weight limits since the last weight increase from about 73,280 pounds to 80,000 pounds occurred 30 years ago. The primary reasons drivers are against putting more weight in their trailers are pretty obvious.
First of all, the added weight results in greater wear and tear on their equipment. Added weight also results in increased consumption of diesel fuel and less miles per gallon. Equally important is the guys and gals behind the wheel of big rigs realized hauling more weight with the negatives just mentioned, certainly doesn’t mean they will be receiving more money in the form of higher freight rates.
This said, the rest of the information below is mostly what is coming from the other side of this issue.
New federal legislation that would give states the option to raise the Interstate system truck weight limit to 91,000 pounds for vehicles with six axles is supported by 32 organization such as United Fresh Produce Association, the National Potato Council and groups representing other industries such as food, manufacturing, beverage and forestry industries.
The group sent a letter in support of heavier trucks to Chmn. Bill Shuster (R-Pa.) and Ranking Member Peter DeFazio (D-Ore.) of the U.S. House Transportation and Infrastructure Committee.
The legislation was introduced by U.S. Rep. Reid Ribble, R-Wis., and is called the Safe and Efficient Transportation Act (H.R. 3488, known as SETA). Supporters claim the bill that is consistent with safety concerns and say heavier trucks won’t harm highways and bridges. They also state the legislation would result in fewer trucks to move more product in a safe way, thus reducing truck traffic.
With nearly 70% of all U.S. freight moved by trucks and total freight tonnage expected to grow nearly 25% over the next 10 years. This legislation claims it will increase truck capacity by 13% without adding more vehicles and ultimately reduce energy use and greenhouse gas emissions.
They also state the higher weight limit would reduce transportation costs for fresh produce.
“With trucking being the overwhelmingly dominant mode of domestic transport for fresh fruits and vegetables, it is imperative that our industry be able to move commodities by promoting efficiency and cost-savings, as well as safety and maintaining infrastructure as much as possible,” read a statement issued by the United Fresh Produce Association.
This will be a key component of the transportation message that United Fresh will deliver to Congress at the Sept. 28-30 Washington, D.C. Conference by United Fresh.
The letter previously mentioned referenced a recent study revealing a 91,000 pound truck with six axles can stop at the same distance traveling at 60 miles per hour as its 80,000 pound counterpart with five axles. NPC believes the study proves that truck weight reform is a commonsense and safe approach to lower the number of truck miles driven, improve highway safety and reduce wear to pavement. Rep. Ribble plans to offer H.R. 3488 as an amendment to the transportation act for highway funding.
Florida avocado shippers expect to harvest smaller volumes during the latter part of their season.
Peak Florida volumes are July and August although the region continues to ship fruit through February. Late season loadings will be 10% lighter than earlier season shipments.
Overall, the deal, which typically begins in early June, is expecting to ship about 1 million bushels, lower than last year’s 1.2 million bushels
Avocado Imports
Chilean avocado shipments to the U.S. should be light again this season as they were in 2014-15 season.
It was September before any Chilean avocado imports reached the U.S. About 1.1 million pounds of Chilean avocados arrived the week of Sept. 6, with 3.3 million pounds expected the week of Oct. 4 and 4.7 million boxes the week of Oct. 18.
But even when Chilean volumes hit 4.7 million boxes, they will be dwarfed by an estimated 37 million boxes that week from Mexico. with the vast majority of it crossing into South Texas. The Chileans have developed a good domestic market for avocados and have been exported more to Europe.
Mexican volumes, primarily crossing the U.S./Mexico border at McAllen, TX, will be huge throughout the season. California is expecting a big crop in its upcoming season.
In August, Mexico shipped about twice as many avocados as it did in August 2014, with September volumes forecast to be up 50%.
By the end of 2015, a projected 2.1 billion pounds of avocados will have shipped in the U.S., 14% more than last year. And with the massive growth in Mexico, shippers can meet demand even if Chile winds up taking another largely hands-off approach to the U.S. market this season.
Mexican fruit and vegetable imports through South Texas – grossing about $2100 to Atlanta.
Adding fresh fruits and vegetables into Arkansas school meals not only lowers obesity rates but can also save hundreds of dollars per-child to prevent obesity, according to a new study.
Conducted by researchers at the University of Arkansas System Division of Agriculture, the study was done in a state where residents report some of the nation’s highest childhood obesity rates.
The study focused on the U.S. Department of Agriculture’s Fresh Fruit and Vegetable Program which was designed to increase the amount of fruits and vegetables eaten by students in the nation’s poorest elementary schools.
Obesity rates dropped from 20% to 17% in sampled low-income elementary schools, once the program began.
The study calculated that the fruit and vegetable program costs were about $50-75 per-child per-year to reduce the obesity rate by 3%, small compared to the $280 to $339 per-student per-year cost of an effort to reduce childhood obesity by 1%, according to 2011 research.
“By this measure, our results suggest that the fresh fruit and vegetable program is a very cost-effective obesity prevention tool,” Rodolfo Nayga, a researcher and division professor, said in a press release. “Moreover, prevention of childhood obesity is in addition to the other nutritional benefits that come from increased fruit and vegetable consumption.”
USDA reimburses schools that offer students free fresh produce outside of breakfast and lunch.
Fresh produce price inflation will be low again in 2015 as it resists California’s drought, the USDA’s Economic Research Service has forecast.
The agency recently reported fresh fruit prices will increase just 2.5% to 3.5% this year, and fresh vegetable prices will rise 2% to 3%.
In May, the USDA said fresh fruit prices rose 1.7% compared with April, but were down 5.7% from May 2014. Fresh vegetable prices were 0.2% lower in May compared with April but up 1% compared with a year ago, according to the USDA.
For all food items, the Consumer Price Index for food was unchanged from April to May but 1.6% above year-ago levels.
In 2014, food price inflation was close to the 20-year historical average of 2.6%, despite the effect of the drought in the Southwest and California.
While the ongoing California drought could have “large and lasting effects on fruit, vegetable, dairy and egg prices,” the USDA at this time projects overall food-at-home inflation of about 1.75% to 2.7%.
If oil prices continue to fall or remain low this year, projected decreases in production and transportation costs may be passed along at the retail level, according to the USDA.
Since the opening of the Mexican superhighway that basically connects the Pacific Ocean produce growing areas with the Lower Rio Grande Valley of Texas, refrigerated truck traffic has gradually increased and more fruits and vegetables are crossing the border into the U.S. at Pharr/McAllen than at Nogales, AZ.
Both truck and auto traffic from central and western Mexico can reach the Pharr International Bridge and enter the U.S. five to seven hours faster than prior to the super highway being completed. lt took 15 years to construct the Mazatlan-Durango highway that has 115 bridges and 61 tunnels.
South Texans love to brag about how the new highway has allowed them to compete with Nogales and point out that within the past year more fresh produce is crossing the border at Pharr/McAllen than at Nogales. South Texas is now the number one point of entry for fresh produce entering the U.S., accounting for 60 percent of the imports. Leading the crossings are avocados followed by tomatoes.
This apparently is just the beginning as some observers are predicting in the next three to five years, produce volume from Mexico crossing the border in the Lower Rio Grande Valley will increase 40 to 45 percent. Besides saving time on shipments originating in Mexico, substantial savings on diesel fuel is cited for shipments destined from markets in the eastern half of the United States.
To accommodate the increasing traffic at the Pharr/McAllen border crossing, new warehousing is being constructed, as well as an expedited lane to the estimated 2,200 trucks crossing the border daily. Truckers pay a toll at the point of entry amounting to up to $23, depending upon the number of axles. Within a few years, truck traffic is predicted to hit 3,000 per day.
Mexican fruits and vegetables crossing the border into South Texas – grossing about $2400 to Chicago; $3800 to New York City.
California broccoli shipments continue to struggle with volume and quality, while raspberry loadings have improved. Meanwhile, record walnut loadings are forecast.
Just about the time it seem Salinas Valley lettuce shipments are getting straightened out from unpredictable highs and lows in volume, a similar problem is now occurring with Salinas Valley broccoli shipments. Again, similar to lettuce, broccoli has been facing some quality problems such as brown bead, hollow stem and stunted growth, which are the side effects of hot weather. Some areas of the Salinas Valley have hit 110 degrees recently. While quality is expected to improve going further into September, volume could remain below normal for weeks. It’s always good to check what’s being loaded onto the truck, so the buyer (receiver) knows what is being delivered.
Salinas Valley vegetables – grossing about $6800 to New York City.
Berry Shipments
Raspberry shipments from the Salinas/Watsonville district have improved in the past week as the weather has cooled. The berries are grown under hoops and inside the hoops, and it was simply too hot. This time of the year, raspberry production is limited to the Watsonville and Salinas areas. Shipments of the fruit normally occur from May through October.
Watsonville/Salinas berries – grossing about $4500 to Dallas.
Walnut Shipments
This year’s California walnut production from the San Joaquin Valley is forecast at a record 575,000 tons despite a lack of chilling hours during winter and the California drought that continues to impact the state. The forecast is up 1 percent from 2014’s production of 570,000 tons.
According to the USDA, California walnut acreage amounted to 181,000 in 1990 and increased every year to 300,000 acres in 2015. In the past decade alone, acreage increased by 40 percent. The number of trees per acre went up significantly as well.
New season Colorado potato shipments are underway, but still light in volume, while increasing.
About 250 truck loads were shipping last week.
While we don’t a forecast yet for the 2015-16 shipping season it appears there won’t be any drastic changes in total truck shipments from this past year.
The San Luis Valley planted 52,900 acres of potatoes for the 2014-15 shipping season. With the end of July the region had shipped nearly 14 million cwt of fresh market spuds.
There were 2,561 truck loads shipped during July, compared to 2,291 in July 2014 and 1,839 in 2013. Shipments to date for the 2014-15 seaspm were 30,325 truck loads, compared to 29,344 in 2014 and 31,988 in 2013.
Organic potato acreage continues to increase, and now exceeds 4,000 acres.
Shipments of yellow potatoes also is increasing. It now accounts for 8 to 10 percent of the volume each year nationally. Russet Norkotahs continue to lead the pack in overall potato acreage in the San Luis Valley. Red potato shipments are a much smaller percentage.
Fingerlings and specialty potato shipments also are increasing from the San Luis Valley.
San Luis Valley potato shipments – grossing about $3300 to Cleveland.
Woerner Purchases Cañon Potato
Cañon Potato Co. has been acquired by Woerner Holdings Inc. and Woerner subsidiary H.C. Schmieding Produce Co. will market and distribute potatoes from Cañon’s Center, Colo., facility.
In the deal, Woerner takes on the packing and storage facility of Cañon Potato, which announced its closure in 2013. That’s when the co-owner and a sales veteran left to join a competing Colorado shipper.
Springdale, Ark.-based potato shipper H.C. Schmieding Produce was sold to West Palm Beach, Fla.-based Woerner in April.