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Bakersfield Area Spud Shipments Have Shifted from Russets in Last Decade

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DSCN3771+1A major shift in the Bakersfield, Kern County potato shipping region has occurred over the past decade as russets have lost favor to red, gold and white potatoes.

In 2004, the acreage for russets in Bakersfield was 4,667 acres, but this year it is down to only 506 acres.  The plunge in russet acreage corresponds with the overall drop in acreage in the past 10 years.   In 2004, total acreage of all varieties planted in Bakersfield was 10,922; this year it is half of that at 5,398.  The 4,000-plus-acre decline in russets represents a vast majority of the difference.

Kern County potato shipments are still an important area for reds, Yukon Golds and even white potatoes, as well as some specialty items such as fingerlings.

The change in shipments  refers to the shift from storage potatoes, which fills produce shelves through the winter and early spring, to the first fresh potatoes, which come from California in the spring and are noted for a thinner skin.

This time of the year storage potatoes are starting to look “tired” and retailers are looking for the fresh crop.

Red potatoes are now the number one potato crop grown in Kern County, with about 2,000 acres this season.

The Yukon Gold potato is gaining in popularity and its acreage has increased over the years. The 2015 season total is over 1,500 acres, representing a significant increase in the past decade.

White potatoes have lost some acreage, but at 1,300 acres the crop is still substantial.

Bakersfield fresh potato shipments start in May and continue through June and into early July.

Kern County potatoes and carrots – grossing about $4000 to Dallas

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Increasing Produce Imports for Produce Truckers

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DSCN4441The U.S. balance of trade for fruits and vegetables is swinging heavily to imports, with avocados and berries seeing huge growth over the past decade, according to the U.S. Department of Agriculture.  While this may not help improve the country’s trade deficite, it means increased loading opportunities for produce haulers.

The USDA in its annual report of trade projections, estimates the trade deficit in fresh fruits and vegetables will grow from about $7.6 billion in 2014 to $16.5 billion by 2024.
The total value of fresh fruit and vegetable exports will grow from $7.3 billion in 2014 to $10.7 billion in 2024, while imports will grow even faster, climbing from $14.9 billion in 2014 to $27.2 billion in 2024.
The projections are built on trade trends over the past 10 years.
The last time the U.S. had a trade surplus in fresh fruits and vegetables was 1980, when the margin of exports over imports was $25 million. By 1990, the trade deficit in fresh fruits and vegetables was $530 million, increasing to $1.8 billion by 2000 and $6.2 billion by 2010.
Imports will supply 53 percent of U.S. fruits and nuts by 2024, up from 45 percent in 2014, while the USDA said the share of vegetables from imports will rise from 19 percent in 2014 to 26 percent in 2024.
Lower trade barriers have boosted U.S. exports and imports.
Climbing imports
“Twenty years ago you never would have thought of having citrus (imports) in the summer or grapes in November,” said Mayda Sotomayor, CEO of Seald Sweet International, Vero Beach, Fla.  “You just had gaps, and consumers lived with gaps.”
Today, Sotomayor said those gaps are now mostly gone, thanks to new varieties, growing areas and storage technology.

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The Benefits Of Eating Walnuts On Overall Health

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IMG_6583+1By the California Walnut Commission

FOLSOM, Calif. — Multiple new research abstracts suggest walnuts may have the potential to positively affect several important health factors. From their impact on colon cancer and certain aspects of cognitive aging, to their positive effect on both gut health and vascular health, the research findings presented at Experimental Biology 2015 (EB) detail our latest understanding of walnuts’ inner workings. Running March 28 through April 1 in Boston, this annual meeting attracted an international audience of over 14,000 leading research scientists and exhibitors.

“These findings help advance the understanding of the many advantages of eating walnuts as part of a healthy diet, and add to the more than 159 published papers over 20 years that have shown how walnuts affect heart health, diabetes, cancer, cognition, fertility and weight management,” said Dennis A. Balint, CEO, California Walnut Commission.

There are numerous possible active ingredients in walnuts that may be contributing factors in providing these health benefits. One component that differentiates walnuts is alpha-linolenic acid (ALA), the plant-based omega-3 fatty acid. Walnuts are the only nut that contain a significant amount of alpha-linolenic acid (ALA) with 2.5 grams per one ounce serving.

While scientific conclusions cannot yet be drawn from the abstracts presented at EB 2015, the following summaries share the latest findings:

  • Colon Cancer: For the first time, researchers looked at whether components of walnuts have an effect on colon cancer cells. This cell study1 was conducted by the Department of Nutritional Science and Food Management at the Ewha Womans University in Korea, and showed that walnut extract significantly slowed the survival of the cancer stem cells as well as reduced the stemness of colon cancer stem cells. Given the results, researchers state there is reason to further explore the role of walnut consumption in colon cancer therapies targeting cancer stem cells.
  • Gut Health: The gut microbiome is an ecosystem of bacteria that helps our bodies digest and use the food we eat; changes in the gut microbiome are linked to chronic diseases. A recent animal study2 conducted by the Department of Physiology School of Medicine at Louisiana State University Health Sciences Center looked at the effect of walnuts on two major gut bacteria communities. A diet with walnuts (approximately 2 ounce human diet equivalent) significantly altered the ratio of the two communities, therefore suggesting “a new mechanism, changing the gut microbial environment, by which walnuts may exert their beneficial health effects.” As this study was performed on animals, however, findings cannot yet be implied for humans.
  • Aging, Brain Health: This animal study3 from the Human Nutrition Research Center on Aging at Tufts University looked at healthy rats, both young and old, and the impact of walnuts – a source of polyunsaturated fatty acids and nutrients such as folate, selenium, magnesium and polyphenols – on mechanisms in critical regions of the brain. Animals were segmented into three groups – one, the control group, who ate no walnuts at all (0%); a second that had 6% of their diet comprised of walnuts; and a third that had 9% of their diet comprised of walnuts (equivalent to one ounce and 1.5 ounces respectively in a human diet). The groups were monitored for ten weeks. According to the researchers, incorporating walnuts into one’s diet may have protective effects on the aging brain. As this study was performed on animals, however, findings cannot yet be implied for humans.
  • Vascular Health: Microvascular function refers to the health of our smallest blood vessels, such as capillaries. A study4 from the Departments of Nutrition and Internal Medicine at the University of California, Davis of postmenopausal women with high cholesterol looked at the short-term impact of walnut consumption. The group that ate 40 grams, or 1.5 ounces, of walnuts per day saw improved vascular function. The study concludes this improvement is due to the effects from the walnut-derived fatty acids, alpha-linolenic acid (ALA) and linoleic acid (LA).

Findings like these pave the way for additional research aimed at understanding walnuts’ role in disease prevention and management.

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Watch for Quality Problems with South Texas Produce Loads

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DSCN3303The Lower Rio Grande Valley of Texas has had over 60 inches of rain since last August, more than it normally get in four years.  If that doesn’t result in significant reductions in produce volume and quality problems, then it will be a miracle.

Texas Produce Shipments

Being the eternal optimistic they are, growers are still talking mostly good quality and down playing losses.  Still, it’s kind of like the parents who never have any ugly kids.  Watermelons and sweet onions are two big items coming out of the valley this time of the year.  The moonsoons that hit a week ago dumped as much as 10 inches in some fields.  The saving grace may be the fields that received as little a three inches of rain.  Still, extra caution is urged when loading South Texas produce vegetables.

Mexican watermelons are crossing the border at McAllen, TX in moderate volume, however variable quality is being reported.  Caution is urged when loading this product.  Make sure your receiver knows the quality being shipped.

A number of other Mexican items are crossing the border into South Texas in light to moderate volume ranging from carrots to peppers along with tropical fruits such as mangoes, papayas and pineapples.  The valley also continues to ship moderate volumes with grapefruit, oranges and cabbage.

South Texas and Mexican grown produce – grossing about $2900 to Chicago, $4900 to New York City.

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Wegmans, Publix and Trader Joe’s Dominate Ratings

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DSCN0467+1In Consumer Reports’ new supermarket survey, Wegmans, Publix and Trader Joe’s remain at the top of the ratings of 68 of stores nationwide. Also earning high overall satisfaction scores were Fareway Stores, Market Basket (Northeast), Costco and Raley’s. Once again Walmart Supercenter landed at the bottom, along with A&P and Waldbaums, two smaller regional chains.

“Once upon a time, low prices, checkout speed and variety were attributes that mattered most to supermarket shoppers,” Tod Marks, senior project editor at Consumer Reports, said in a press release. “While these aspects are still critical, more and more consumers demand better fresh foods, more organics and a greater variety of locally made and grown foods.”

Many Americans believe that good health starts with a good diet. As a result, consumers have become increasingly savvy label readers, wary of preservatives, chemicals and unpronounceable ingredients and the demand for minimally processed foods and shorter ingredients lists has risen significantly. And supermarkets are taking seriously their new role in the health of their customers. Consumer Reports found that 95 percent of chains have a registered dietician on staff to assist with merchandising and marketing decisions. And, more than 75 percent of stores say they carry more locally grown or made goods than they did in 2012.

The report, “America’s Best, Freshest Supermarkets,” which includes the complete Ratings of grocery stores, is available in the May 2015 issue of Consumer Reports and at www.ConsumerReports.org. The feature also decodes common terms such as “fresh,” “natural” and more.

Consumer Reports National Research Center surveyed 62,917 subscribers about overall satisfaction with their supermarket shopping experiences based on 111,208 visits between March 2013 and July 2014. The top-rated supermarkets also received high scores for overall freshness — quality of produce, meats, poultry, bakery items and store-prepared foods as well as store quality, which included scores for staff courtesy and store cleanliness. Walmart Supercenter, consistently one of Consumer Reports’ lowest-rated grocers since 2005, earned low marks in every category other than price.

In addition to traditional characteristics such as service and cleanliness, Consumer Reports asked subscribers to rate their grocers on the selection of local produce and the price of organics at their stores. Only around six in 10 were completely or very satisfied with the quality of their store’s produce, meat, and poultry offerings, according to Consumer Reports’ survey.

Just three of the chains — Wegmans and national chains The Fresh Market and Whole Foods — earned stellar produce scores. Seventeen were below average. Eighteen retailers received low scores for produce variety, notably two big warehouse clubs — Sam’s Club (part of Walmart) and BJ’s Wholesale Club (in the East) — as well as Target and Target Supercenters.

Consumer Reports also asked subscribers about the prices of organic options available at their stores: Trader Joe’s, Wegmans, Costco, and Sprouts Farmers Market received high marks.  And, to determine the real-world price differences, Consumer Reports conducted a study by shopping for 15 similar organic and conventional goods, including bananas, milk, and chicken, at eight national, regional and online grocers. The organic items cost 47 percent more, on average, although in some cases, some of the organic versions cost the same or less than the conventional ones. For example, organic Grade A maple syrup cost 11 percent less than the conventional version at Price Chopper.

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Washington: Onion Loads Coming in June; Lots of Apples Remain for Shipping

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GAtks0314 022In the Northwest, sweet onion shipments get underway within a few weeks.  Meanwhile, plenty of Washington apples remain in storage for shipping.

Walla Walla Sweet onions from Washington state will begin shipments in mid-June and running into August.  Growing conditions have been good this spring and the onions are sizing up well.  The crop is trending heavily to jumbos and colossal.

Apple  Shipments

However, the big mover remains with Washington state apple shipments, even though we are entering the last leg of the season before new crops start coming on in August.  About 45 million bushels of U.S.-grown fresh market apples had yet to be shipped as of May 1, 28% more than last year at the same time.

The May total also was 38% higher than the five-year average, according to the May Market News report from the Vienna, Va.-based U.S. Apple Association.

Washington accounted for 40.9 million bushels of apples still in storage on May 1.  New York had 1.45 million bushels, Michigan 1.24 million bushels and Pennsylvania 555,000 bushels.

Holdings of almost all major varieties were up from last year.  Red delicious holdings increased from 13.6 million to 18 million bushels; galas from 4.2 million to 6.9 million bushels; golden delicious from 4.2 million to 5 million bushels; fuji from 3.3 million to 4.3 million bushels; Pink Lady from 913,000 to 1.4 million bushels; and Honeycrisp from 71,000 to 306,000 bushels.

Granny smith holdings fell slightly, from 5.41 million to 5.4 million bushels.

Yakima Valley apples and pears – grossing about $4500 to Chicago.

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Mexican Grape Shipments in Heavy Volume; Heat Hitting FL Produce

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DSCN1828+1Mexican table grapes ramp up crossing the border in Arizona, while the Florida heat is starting to take its toll on spring produce shipments.

Mexican grape shipments are forecast to hit 16.05 million boxes this season, slightly less than last year’s final total of 16.27 million boxes.  Peak shipments, mostly crossing the border at Nogales, are now in progress.  Heavy volume should continue well into June before loadings decline towards the latter part of the month with the end of the season. Overall Mexican produce movement through Nogales is well below what it was in the first quarter of the year, with grapes now leading the pack in volume.

Mexican grapes  – grossing about $2200 to San Francisco.

Florida

Florida produce shipments are starting to feel the heat as temperatures rise in the Sunshine State.  There’s probably no better example than with sweet corn as shipments could come to a screeching halt this week.  That is about two weeks earlier than the last two years.

Since the first week of April, the start of Florida’s spring shipments, packinghouses shipped about a million crates a week and so far have packed 6.2 million crates.  This season, shippers should load about 7.5 million crates, similar to last season, which marked record production for the two weeks leading up to Memorial Day,

While Florida corn in coming to an end, Georgia sweet corn shipments are now underway.

Florida trucks have been in tight supply with mixed vegetables, tomatoes and watermelons – grossing about $3700 to Philadelphia.

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Desert Cantaloupe Shipments Underway; Imported Clementines are Starting

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DSCN5232Cantaloupe shipments are shifting from Mexico to California and Arizona, while South American clementines will be arriving at US ports soon.

Desert cantaloupe shipments started in late April from Brawley, Calif.,  and from Yuma, Ariz. the first week of May.  There also should be more loading opportunities with melons this season due to increased acreage and higher yields.

Yuma cantaloupe shipments have gotten one of its earliest starts, by 10 days to two weeks.   A typical start date in recent years has been closer to May 20-25.  Cantaloupe shipments from both from Yuma and Brawley should continue into late June.

Cantaloupe shipments from the Maricopa, AZ area are expected to kick off around May 18 and while the Westside district in the San Joaquin Valley of California should start around the 4th of July.

Imperial Valley cantaloupes and Coachella Valley vegetables and grapes – grossing about $4600 to Chicago.

Chilean Clementine Imports

The Chilean citrus industry has kicked off with the year’s first shipment of clementines to the U.S. market.  Exports began recently with the shipping of about 170 tons aboard the ship MSC Federica from Valparaiso.  Six containers are headed to the port of Philadelphia, and two containers are destined for Long Beach.  The first Chilean clementines will reach the U.S. market any day now.

Chile starts harvesting clementines in northern Chile in late April, and then continues moving south, with late-season Mandarins harvested into September.  Chile’s total clementine volume has grown by 50 percent between 2010 and 2014, with more than 50 percent of U.S. easy peeler imports between May and October coming from Chile.

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Independent Trucker Earnings Up; Trucks Hauling 70% of Freight

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ATA1The trucking industry brought in $700.4 billion in revenue in 2014, according to a report released this week by the American Trucking Associations. That’s the highest total revenue in history for the industry and the first time trucking has surpassed the $700 billion mark, ATA says.

The combination of a significant jump in freight volume in the year and tightening capacity spurred the revenue uptick, says ATA Chief Economist Bob Costello.

ATA’s report,its annual American Trucking Trends, also showed the trucking industry moved 68.8 percent of all domestic freight, or 9.96 billion tons, in 2014.

And the $700.4 billion in revenue accounted for 80.3 percent of all freight transporation spending, ATA says.

Owner Operators/Independents

Owner-operators, led by independents and flatbedders, had a record year for net income, according to averages from ATBS, the nation’s largest owner-operator financial services provider. Leased operators and independents together cleared an average $56,167 during 2014. That’s 7 percent above the 2013 average, $52,406. Strong freight demand, a driver shortage and plunging diesel prices contributed to the increase.

The 2014 total “is $2,000 higher than we predicted and most of it comes from the fourth quarter fuel cost reduction,” says Todd Amen, ATBS president and CEO. “All segments had a really good year.” Net income for independents and flatbedders topped $60,000. Independents’ income showed the biggest gain over the year, 8.7 percent. Flatbed haulers, however, experienced virtually no change in income in 2014. That reflects flatbedders experiencing stronger demand and rates a few years before dry van and reefers haulers, says Gordon Klemp, head of the National Transportation Institute. NTI’s National Survey of Driver Wages tracks compensation of drivers at medium-size and large fleets. “Most of the independent contractors operating in the independent and flat markets are on percent of load type programs, so their pay adjusts quicker,” Amen says. “The independents are certainly more in the spot market as well.  So these two segments reflect a really good freight market last year. They have higher highs in good times and lower lows in bad times, more volatile than the other segments.”

2014, net income for the groups tracked by ATBS was:

  • Independents: $60,157
  • Dry van: $54,490
  • Flatbed: $60,510
  • Reefer: $52,064

Klemp says falling fuel prices helped owner-operator earnings in two ways. One is owner-operators receiving less than a 100 percent fuel surcharge pass-through have seen their share of fuel costs dropping proportionately. The other is that because surcharges are adjusted weekly after the U.S. Department of Energy releases its average fuel prices, a surcharge will overcompensate an owner-operator as long as prices continue to fall during the week.

Sign-on bonuses have been stable in recent months, Klemp says. The mid-point is $3,000 to $6,000, with the top tier $6,500 or more. Team bonuses remain very strong, and he has seen them as high as $15,000. Many fleets use bonuses selectively by region, to meet demand, and often keep high bonuses in place only briefly.

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New Apple Variety, Pazazz, Going Nationwide Next Year

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PazazzPazazz, a new apple variety will roll out nationally in 2016.

According to a recent article in Progressive Grocer,  Minneapolis-based Honeybear Marketing has helped leading retailers across North America and Canada boost sales when seasonal apple sales typically slow sharply .

Des Moines, Iowa-based Hy-Vee has been a key retail participant in Honeybear’s varietal development program for the past three years.  Bill Kelley, AVP and director of produce purchasing for the 235-store regional retailer, said that introducing new varieties is fundamental to Hy-Vee’s mission of bringing unique and healthy food items to their customers.

Kelly cites its “great color, firm texture and a burst of flavor that quickly brings customers back into the store for repeat purchases.”

Aside from Hy-Vee, Central Market, Cub Foods and Coborns have also created multi-tier Pazazz apple displays and sampling stations at premium front-of-store locations in order to increase consumer exposure to the new variety.

Pazazz is grown in Minnesota and Washington.  Additional orchards in New York, Washington, Wisconsin and Nova Scotia, Canada will generate more volume to expand the scope of the Pazazz program.  The variety was originally developed by Doug Shefelbine from Holman, WI;

Harvested shipped in late fall with a careful balance of sugars and starches, Pazazz is available from late December onward as the starches convert to sugars, which gives the apple a blend of high brix with a perfect complement of sweet and tart flavors, exceptional crispness and great texture.

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