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Part I – Allen Lund Co.: Reasons for Flat CA Produce Trucking Rates

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DSCN4660Many folks involved in fresh produce transportation are wondering what is going on in California.  Despite the state growing and shipping about one-half of the nation’s fruit and vegetables, rates have remained relatively flat during the heaviest volume period of the year.

In search of answers, we turned to Kenny Lund, vice president of operations for the Allen Lund Company of La Canada, CA, a transportation brokerage and logistics company that has been in business nearly 40 years.

“I think we’re in a historic…incredible shift in produce,” Lund states, “where product is being grown where it hasn’t been grown before.  It’s hard to get the numbers, but it’s looking like there’s a 20 percent increase in produce from Mexico.”

He also cites production and shipping increases from Canada, as well as boat arrivals with imported produce from around the globe.

“But there is not an increase from the most fertile land in the world (California); there’s a decrease,” Lund contends.  “I think the decrease is more significant than people will say.”

While acknowledging the drought has a lot to do with it, Lund sees an attack by environmentalists on the California agricultural industry as being a factor.  He points to cuts in water allocations to agriculture and water going elsewhere due to environmental reasons.

He says there has been somewhere between 400,000 and 800,000 acres of California farm land being placed out of production.

“It is political more than anything,” Lund states.  “They build pipelines for everything, but for some reason we can’t do it for water.  You keep seeing a reduction of water in California and an increase in people (living here). The drought is more political than the actual drought.  There is  a lack of water going to the farms.  The Columbia River going into the ocean is enough in itself to handle California farming needs.  But the environmentalists will not let that happen.”

Similar to a statement Lund has made many times about the over regulation of trucking, he says the excessive regulation of farms is “amazing.”  For example he recently talked to someone in charge of compliance with a California farming operation and was told she had to answer to 42 different government agencies.

Lund believes this a contributing factor to Allen Lund Company having more produce loads than ever crossing the border from Mexico into California, Arizona and Texas.

“It’s a contradiction.  50 percent of the nation’s produce is grown in California.  That is under attack by a lack of water due to over regulation of farming, as well as trucking,” Lund says.  “Government is over regulating diesel engines, farming equipment, pumps; all these things are under severe attack.”

Each of these factors are contributing to what he calls a “historic” shift in produce shipments from California.  Lund talks of the Autopista Durango-Mazatlan, a 143-mile highway spanning from the growing regions of west Mexico to Texas ports of entry that opened last year.   As a result business in McAllen, Tx is booming.

While California produce trucking rates are remaining rather flat, Lund says rates are up significantly in Texas, New Mexico and Arizona.  At the same time, Florida is “mixed” because it has a very similar growing and shipping season to Mexico with which it competes.  Still, he notes Florida does not have nearly as many regulations, plus that state has plenty of water.

(This is Part I of a two-part series.  The Allen Lund Company was formed in 1976 by its namesake.  I have known Mr. Lund almost since the founding of the company.  His son Kenny Lund joined the company 26 years ago this month.  At that time the operation had 32 employees.  Today Allen Lund Company has 500 employees, arranges about 250,000 loads a year, of which about 40 percent is with fresh produce.  The company has 30 offices nationwide and will soon break the $500 million mark in annual sales. — Bill Martin)

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New Jersey Produce Shipments to Build in Volume

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DSCN3783Over 100 varieties of fruits and vegetables are grown and shipped from New Jersey, mostly from the Southern part of the state.  Here’s a round up of what is being loaded for distribution, as well as what will be available in the weeks and months ahead.

New Jersey Produce Shipments

New Jersey has 11 primary fresh vegetables:  Tomatoes, sweet corn, peppers, cabbage, cucumbers, lettuce, spinach, eggplant, escarole, snap beans, and asparagus.   Jersey’s top five principal fruits are strawberries, blueberries, peaches, apples and cranberries  (for processing).

New Jersey vegetable shipments:  The Garden state already has been shipping early season spinach, collards, beets, radishes, escarole/endive, Swiss chard, lettuces and herbs such as parsley, dill, coriander and cilantro.  Asparagus loadings got underway in late April.  Cabbage, pickles and turnip shipments started at the end of May.

Beginning in June and July

Cucumbers and squash will start in mid-June.  While sweet corn and tomatoes have normally started by July 4th, neither may have much volume by then this year, due to colder weather moving back the harvest.

Minor quantities of early New Jersey blueberry shipments  should be starting the third week of June, with good volume by the end of June.  In 2014, New Jersey produced about 8,800 acres of berries yielding about 56.7 million pounds — fifth in the nation.

July to Mid September Shipments

Yellow New Jersey peach shipments should start the third week of July, with fair volume by early August.  Larger volume varieties should begin by the early August.  Good yellow peachvolume is expected by mid-August through mid-September. White peach volume begins in the third week of August through mid-September. About 150 peach producers grew 44 million pounds of  peaches on 4,600 acres in New Jersey in 2014 — ranking fourth in the nation.

 

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Toxic Beetles are Reported in Packaged Salads

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BeetleA public warning has been issued by Canadian officials about consumers having found toxic iron cross blister beetles in prepackaged salads.  The warning otherwise is very vague, except to say that there haven’t been any confirmed illnesses or injuries.

The Canadian Food Inspection Agency issued the warning May 29th, but does not say what country the pre-packaged salads are from or what grower or shipper distributed them.  The warning also does not say where the salads were distributed.

“Fresh produce can harbor insects that may be injurious to consumers, but this is rare,” according to the CFIA’s warning.

“The iron cross blister beetle is very distinctively colored, with a bright red head and bright yellow markings on the wings, separated by a black cross. This particular beetle should be treated with caution as it may release an irritating chemical called cantharidin. This chemical may cause blisters at the point of contact.”

The CFIA advises consumers to wash and visually inspect leafy vegetables and remove beetles without touching or crushing them. The warning requests that anyone who finds a beetle to report it to the local CFIA office.

The iron cross blister beetle is generally found in the southwestern U.S. and northwestern Mexico, according to information from the University of California-Davis department of entomology website. Also known as soldier beetles because of their habit of traveling in single-file lines, they are found primarily in late spring and early summer, according to the website, and often occur in immense feeding and mating aggregations.

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WA Apples being Dumped; Plus Updates From FL and Mexican Mangoes

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DSCN0447Here’s an update on Washington state apple shipments, as well as the new crop of Florida avocados, and Mexican mango imports.

While Florida is pretty darned quiet this time of year when it comes to hauling fresh produce, the new crop of avocados has just started being harvested.  Volume will gradually increase throughout the month before hitting stride in early July.  Shipments will continue into next March, or perhaps early April.  About 1 million bushels will be shipped, similar to the 1.17 million bushels hauled last season.

Mango  Shipments

This year’s mango volume has seen shipments of more than 4 million boxes weekly; an 18 percent increase compared to the largest week in 2014,

Volumes are expected to remain steady through the second quarter of 2015.  Mexican mango imports are expected to be 3 percent higher than 2013, which was a record-breaking year for Mexican mango imports.

The forecast is for about 36 million boxes of mangos to be imported during this year’s second quarter.

Imported Mexican mangos, melons and vegetables through McAllen, Tx – grossing about $3200 to Chicago.

Washington Apple  Shipments

Fruit transporters are dumping millions of pounds of apples across Washington, leaving them to rot under hot sun.  State officials call the dumps “historic.”  In Pateros, a hillside is covered with rows of Red Delicious apples.  Trucks pull up several times a day, unloading thousands of apples on top of sage brush and flowers.

Washington growers produced the highest volume of apples on record, plus labor disputes at Washington ports have left cargo sitting, sometimes for weeks.  The Washington State Tree Fruit Association estimates $95 million in lost sales due to apples that could not ship. Growers suffered further deficits from longer storage periods.

The Feds recently helped bail out the industry by purchasing millions of dollars of apples for school lunch programs.

Yakima Valley apples – grossing about $7000 to Miami.

 

 

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Updates: CA Stone Fruit and Grapes, Baja Tomatoes and Port Strike

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IMG_5703Produce loads are increasing in California for stone fruit and tomatoes, while grape shipments are now light volume from the Arvin district.

California peach shipments

California peach and nectarine shipments have moved into normal weekly volumes, with peak loadings to start in late June to early July from the San Joaquin Valley.  Peach and nectarine shipments should continue into the first or second week of September.  There’s also apricot and cherry shipments.

San Joaquin Valley stone fruit shipments – grossing about $7100 to New York City.

Southern California, Baja Tomatoes

Tomato shipments are ramping up out of California and Baja California and include vine ripes, romas and cherry tomatoes.  Loadings should continue until about the third week of December.  Shipments of mature-greens, vine-ripes  and romas from the Live Oak, CA area in the San Joaquin Valley get underway in mid June.

California grape shipments

While grape shipments continue from the Coachella Valley for perhaps another month, very light volume has started from the Arvin District in the Bakersfield area.

Coachella Valley grape and vegetable shipments – grossing about $4600 to Chicago.

Chilean Fruit Imports

A strike by customs officials, which shut down Chile’s Port of Valparaiso May 20, has ended as negotiators reached an agreement. By May 26, customs officials had been removed from the port, and the port was operating again at a “minimal level.  The strike ended May 28th.  Workers were striking over pay and working conditions.

 

 

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Annual Roadcheck Inspection Blitz Starting June 2nd

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DSCN0161Here comes the Roadcheck, the annual inspection blitz.  It is a joint effort of the Commercial Vehicle Safety Alliance, Federal Motor Carrier Safety Administration and others, is set to take place starting tomorrow June 2nd and continuing through June 4th.

About 10,000 inspectors from state, local and federal enforcement agencies will  perform nearly 70,000 inspections on trucks and buses over the 72-hour period.  They will be stationed at 1,500 inspection points around North America.

Cargo securement will be this year’s special emphasis, though inspectors will still be primarily performing the full 37-step Level I inspections — the most thorough inspection — throughout the week.

In early June of 2014, the Roadcheck resulted in a vehicle out-of-service rate of 18.7 percent and a driver out-of-service rate of 4.8 percent.   Also last year over 72,000 drivers and vehicles were inspected.

CVSA has on its site resources for owner operators and fleet drivers.  Here are  9 top things inspectors look for:  brakes, coupling devices, lighting, securement of cargo, steering, suspension, plus tires, wheels, rims and hubs.

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Produce Shipments from the Carolinas are Underway

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IMG_6576Both South Carolina and North Carolina are expecting normal shipments of vegetables this summer, despite a a cold and wet spring that delayed plantings on some vegetables.  Tropical Storm Ana, which made landfall in South Carolina on May 10, drenched fields in both states and further delayed production of some vegetables.

South Carolina Produce Shipments

Up coming shipments on sweet corn, cabbage, squash, greens, cilantro, parsley, beets, leeks and eggplant look favorable.  South Carolina squash loadings started in mid-May, while sweet corn shipments should start next week.

WP Rawl, Pelion, S.C., and Clayton Rawl Farms in Lexington, S.C. are two of the state’s largest vegetable shippers.

South Carolina peach shipments continue, while watermelons will be coming on the latter part of June.

North Carolina Produce Shipments

Cabbage shipments will not get underway until the latter part of June, or early July a week or more later than normal.

Cabbage loadings typically have a gap between the start of coastal production near Elizabeth City, N.C., and the mountain region production near Mount Airy, N.C..  However, this season both shipping areas are expected to start at about the same time.  One of the state’s largest cabbage shippers is Hollar & Greene Produce Co. Inc. in Boone, N.C.

North Carolina usually begins sweet corn shipments a week later than Georgia.  North Carolina expects to start loading about June 1st….Squash shipments have just started, while potatoes should get underway around June 15-20.   Potato acreage remains at 17,000 acres and the state plans to ship red, white and yellow potatoes through late July.

Eastern North Carolinas continues to ship sweet potatoes entering the last couple of months of the season.

North Carolina sweet potatoes – grossing about $2500 to New York City.

 

 

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Study Shows Meal Preparation, Attitudes Toward Health are Changing

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DSCN4877Attitudes towards health and wellness as well as meal preparation are among the biggest evolving trends in U.S. consumers’ eating habits, according to new research from Acosta Sales & Marketing.

Nine out of 10 shoppers prefer eating at home, driven by a desire for comfort (61 percent), cost (60 percent) and convenience (59 percent), the firm’s The Evolution of Eating survey revealed.

However, more Americans are turning to ready-to-eat and take-and-bake solutions, including “hybrid homemade meals,” such as a grocery store rotisserie chicken with a salad-in-a-bag and homemade potatoes, rather than cooking from scratch.

About 46 percent said they prepared meals at home over the past year, 48 percent when considering only the Millennial generation, who also reported eating prepared foods from grocery stores at home at a much higher rate than total U.S. diners (27 percent vs. 16 percent, respectively).  Millennials also reported enjoying cooking the most compared with their older counterparts.

“The way our society views food has come a long way since the TV dinner heyday of the 1950s.  From sharing recipes and photos of food on social media to a widespread fixation on healthy food and fads, we have seen a seismic shift in consumers’ attitudes toward food,” said Colin Stewart, senior vice president, Acosta. “Eating has evolved right along with society, and consumer brands and retailers must consider the dynamics, demands and preferences of today’s modern family to deliver successful food and meal solutions.”

Acosta finds that consumers are becoming even more educated about the connection between diet and wellness, and are taking efforts to transform their shopping and eating behaviors, as America’s health trend shows no signs of slowing down.

In fact, the majority of shoppers (61 percent) ranked reading food labels as very important to their health and wellness concerns when they grocery shop, and more than half reported trying to eat more fruits and vegetables in the past year. And shoppers across all segments reported eating more whole grains and buying foods with fewer preservatives.

The Evolution of Eating report was compiled using research conducted by Acosta, as well as the company’s experience working with the nation’s largest CPG manufacturers and retailers.

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Lettuce Ladies Dawn Bikinis

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LettuceLady2Has anyone ever accused head lettuce of being sexy?  Probably not, at least not until now.

The activist group Peta recently set up shop at the corner of famed Sunset Boulevard and Ivar Avenue, handling out free boxes of vegan burgers and hotdogs just before the Memorial Day weekend. Lettuce Ladies set up in Tinseltown at noon on Thursday, May 22,  to entice passersby to sample some veggie-centric foods they may not have considered before.

According to an NBC Los Angeles report, the ladies were to bare their bodies and their cause with signs feature produce promotions such as  “let vegetarianism grow on you” and “turn over a new leaf, go vegetarian.”

This isn’t the first time PETA has used this approach to push produce.  According to the association’s blog, the Lettuce Ladies have been to countries like Australia, the Philippines, and Kenya, as well as having made a stand in full lettuce garb on Capitol Hill and the NFL Draft while serving vegetarian spins on hot dogs and wings.

While the Lettuce Ladies usually are volunteers for PETA’s cause, well-known names and spokespeople for the association like actresses Pamela Anderson and Elizabeth Berkley have also sported lettuce bikinis and gowns for the campaign.

We almost forgot to mention – Salinas Valley lettuce is grossing about $1200 to L.A. (Is that to Hollywood, or the L.A. Produce Market?)

 

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Post Memorial Day Produce Loading Opportunities Across America

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DSCN1335As we get back in the groove following the long Memorial weekend, here are some of the better produce loading opportunities at various shipping points across America.

Western Produce Shipping Areas

Washington state easily provides the most loading opportunities in the Northwest with apples averaging over 3200 truck loads per week.  The Yakima and Wenatchee Valleys also have pears in much smaller volume.

Washington apples – grossing about $5000 to Dallas.

Idaho potato shipments continue as we approach the last few months of the 2014-15 shipping season.  About 1300 truck load equivalents are being handled weekly, although rails account for a larger percentage than with most produce items.  However, trucks still rule!

Idaho potatoes – grossing about $4700 to New York City.

In California, strawberry shipments remain in heavy volume, with about equal movement coming out of the Watsonville area and the Santa Maria District.  Nearly 1200 truck loads per week are being shipped from these two areas…Also, big volume with mixed vegetables continue from the Salinas Valley.

Salinas/Watsonville vegetables and strawberries – grossing about $6300 to Orlando.

At Nogales, AZ, about 2500 truck loads of watermelons are crossing the border from Mexico each week.   Mexican grape shipments also are increasing.

Nogales produce – grossing about $2600 to Dallas.

Central Produce Shipping Areas

San Luis Valley potato shipments from Southern Colorado continue on a steady pace averaging about 600 truck loads per week…..Central Wisconsin potato loadings are much lighter heading towards the end of its season.

Colorado potatoes – grossing about $2200 to Chicago.

In South Texas, about 1000 truck loads of Mexican avocados are crossing the border each week at McAllen.  There also are a number of tropical fruits and limes crossing in moderate volumes.  Texas sweet onion shipments are just about finished for the season.

South Texas produce – grossing about $2600 to Atlanta.

Eastern Produce Shipments

While Florida is headed towards a seasonal end to its spring produce shipping season, more of the focus moves to Georgia.  As Florida blueberry shipments rapidly decline, “blues” are gaining in volume from Southern Georgia.  The state also has moderate volume with vegetables ranging from cabbage to beans and Vidalia onions.

North Carolina sweet potatoes continue to be shipped in moderate volume, mostly from eastern areas of the state.

 

 

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