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USDA’s Trends in Produce Shipments Published

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IMG_6029+1The USDA has published its vegetables yearbook and the document updates per capita statistics for fresh vegetables and give other valuable insights. The spreadsheet for fresh market vegetables updates trade and other supply statistics through projected numbers for 2014:
Imports supplied 27.9% of U.S. fresh vegetable use, up from 26.7% in 2013 and 24.4% in 2010;
  • Exports account for about 6.6% of U.S. domestic production, down from 6.6% in 2013 and 6.7% in 2010;
  • Per capita use of fresh vegetables (all per capita stats are farm weight) 141.6 pounds in 2014, up from 140.7 pounds in 2013 but down from 144.3 pounds in 2010;
 Some of the bigger gainers in fresh per capita use:
  • Asparagus per capita 1.6 pounds, up 14% from 1.4 pounds in 2013;
  • Carrot per capita at 8.5 pounds in 2014, up 6% from 8 pounds in 2013
  • Cauliflower per capita at 1.5 pounds in 2014, up 15% from 1.3 pounds in 2013;
  • Sweet potatoes per capita at 7.5 pounds in 2014, up  12% from 6.7 pounds inn 2013;
  • Bell peppers 10.6 pounds in 2014, up 6% from 10 pounds in 2013;
 The USDA states:
  • Mexico accounts for 69% U.S. fresh vegetable imports by value, compared with 18% for Canada, 4.5% for Peru and 2% for China.
  • Mexico provides 76% of hothouse tomato imports, compared with 22% from Canada, 0.88% from Guatemala and 0.24% from the Dominican Republic;
  • For onions, Mexico supplies 71% of U.S. imports, followed by 13% for Peru, 9% for Canada and 2% for Chile.

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Private Labels Gaining Ground in Organics

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DSCN4693The emergence of such brands as Kroger’s Simple Truth, Supervalu’s Wild Harvest and Aldi’s Simply Nature highlight how the private label category is evolving. Manufacturers and retailers have tried to address consumer concerns about wellness and nutrition with more affordable healthy food options, and several retailers have built private label brands around a position of affordable healthy eating.

“Store brands have moved far beyond cheap generic knock-offs to become trusted, quality lines that can compete effectively with national brands,” said David Sprinkle, research director for Packaged Facts. “They usually have higher profit margins for retailers than name brands, help differentiate a retailer from competition, and help build consumer loyalty.”

Private label accounted for almost a fifth of the $530 billion total food and beverage market dollar sales in 2013. In its report “Private label foods & beverages in the U.S., 8h edition,” Packaged Facts estimated retail dollar sales of private label food and beverages were $102 billion in 2013, up about 2%. Food products accounted for approximately 80% of the private label segment’s sales.

Looking ahead, the market research firm projects retail dollar sales of private label food and beverages will grow by a compound annual growth rate of 4% and reach $122 billion in 2018. The increase is due in part to the segment’s attractiveness to consumers seeking to eat healthy on a budget. Sales of private label food are expected to reach $98 billion.

Natural and organic private label brands have been around for a number of years led by Safeway’s O Organics, Stop & Shop and Giant’s Nature’s Promise, Food Lion and Hannaford’s Nature’s Place, and Supervalu’s Wild Harvest. The brands continue to expand and update with a focus on healthy product attributes.

Other retailers have evolved natural and organic positions to more modern wellness brands that shift focus from product attributes to lifestyle enhancement. Kroger’s Simple Truth, Target’s Simply Balanced, and Aldi’s Simply Nature all attempt to provide consumers with solutions for taking care of themselves and their families. The brands cross many food and beverage categories with affordable, nutritious products that are natural or organic, and free of artificial ingredients. Kroger has invested heavily to build Simple Truth and the company stated in the first quarter of 2014 it expected the brand to reach $1 billion in sales this year.

 

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Katzman at Hunts Point is Acquiring Okun Inc.

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DSCN4920S. Katzman Produce Inc. is purchasing  the unites of Morris Okun Inc.on the Bronx, N.Y.-based Hunts Point Terminal Market.

It continues a trend of fewer but larger wholesalers on the world’s largest produce wholesale terminal market.  In 1967 there were 125 wholesalers.  Today, there are 40 wholesalers, but it soon will be 39.

Katzman, which also operates Katzman Berry Corp., contracted to buy Okun’s 16 units on Row B after purchasing five units on Row D in late January, said Steve Katzman, president.

The purchase expands Katzman’s market presence from 21 units to 37 units on the 262 unit terminal,

Okun owner Roni Okun has decide to retire.  The Okun name will not be retained.

Katzman Produce owns 100 vans storing produce alongside the terminal and Katzman said the purchase should help easy some of the market’s space headaches.

“This will help us tremendously in the expansion of our business,” he said. “We will have more refrigeration space and have plans to modernize the units. This will help us with not having to double-handle product and helps by not breaking the cold chain.”

Distributing a full line of fruit and vegetables to retailers and foodservice purveyors throughout the Tri-State region, Okun began operations in 1926 as a small family-owned venture on the old Washington Market in south Manhattan.

A fourth-generation family company, Katzman sells conventional, organic and specialty produce to retailers, restaurants, distributors and caterers throughout the Northeast as well as to customers in Canada, Europe and the North Atlantic.

Katzman’s produce lineage traces to 1890 when Samuel Katzman sold bunched greens and other vegetables from a horse and wagon.

The Katzman operation is also a partner with Top Banana LLC in Top Katz Brokers LLC.

 

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Colorado Potato Shipments are Steady

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Duane Riendeau+1Colorado potato shipments continue to remain good and steady out of the San Luis Valley.

Total shipments to date for the current season are 19,980 truck loads, up from 19,124 in 2014.  That number remains down from previous years: 2011 had shipments hitting 23,511 year to date in March; 2012 logged 22,754; and 2013 came in at 21,069.

Yellow potato shipments have accounted for just under 16 percent of the 2014-15 crop.  In 2014 yellows were slightly over 12 percent, and in the three previous years they were in single-digit percentages.

Red potato shipments slipped a little in 2014-15, down to 5.8 percent from 6.9 percent in 2013-14.

San Luis Valley potato shipments are currently averaging about 750 truck loads per week.

As for the upcoming 2015-16 shipping season, growers just started planting in late April, which is normal, and will continue into May.

With an ongoing drought a major factor in the San Luis Valley’s potato industry, planting this coming season could be down between 8 and 10 percent from last year’s 55,000 acres.

It could be between 50,000 and 52,000 acres, but for now it is uncertain.   Acreage in 2014 was bumped up from the previous year’s 49,700 acres.

San Luis Valley potatoes – grossing about $2400 to Chicago; $2200 to Houston.

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Watermelon Shipments Should be Similar to Last Year

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IMG_5995+1Watermelons used to be the worse item a produce hauler could haul because they had to be loaded and unloaded by hand, which could lead to outrageous unloading charges.  But most melons are now placed in bins on pallets and handled by forklifts.  Unloading those bulk load wasn’t practical.  Truckers are paid to drive, not chuck melons.

As we plunge further into spring, it is appearing watermelon shipments will be similar to last year.  Domestic production from the period April 1 through June 1 shows the following forecasted volumes: Florida/499.7 million pounds; Texas/150.5 million pounds; California/59.5 million pounds; Arizona/14.6 million pounds; and Georgia/3.3 million pounds.

During this period, Mexico is forecasted to export 523.8 million pounds.  Volume exported by Guatemala, Honduras, Costa Rica, Nicaragua and Panama tails off at this time.

As shipments increase heading towards Memorial Day, the volume should peak at about 45 million pounds per day.

At 16 pounds per watermelon, you’re talking close to 3 million individual watermelons sold on a single day.

Florida is the biggest contributor for the holiday.  But Texas is usually fully up to speed by then to help offset the decline on Mexican imports. California and Arizona are also shipping at that time to help supply west of the Rockies.

Florida watermelons, vegetables – grossing about $3000 to Philadelphia.

 

 

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Volume Continues to Build from California’s Coastal Areas

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California produce shipments

DSCN4408+1With the Huron shipping district in the San Joaquin Valley finished, the primary suppliers of the nation’s vegetable row crops are the Salinas and Santa Maria valleys.

These two areas on California’s coast are shipping  Iceberg lettuce, all the mixed and specialty lettuces, cauliflower, broccoli and celery, plus dozens of other items in smaller volumes.  California now has over 500 truckloads of head lettuce shipments weekly, mostly out of Salinas.

About the best thing for produce truckers this time of the year in California is fewer production areas, making it easier to get full loads due to the increased volume, plus a lot of product typically is loaded at one dock.  This certainly beats wintertime when mulitple pick ups can start in Central or Southern California and extend to Coachella, the Imperial Valley and Yuma – and perhaps even Nogales.  Not good.

Over the next two to three months California will be in its peak strawberry shipping period with 6 million to 7 million trays or more being shipped each week.

While Ventura County strawberries are in a seasonal decline, the Santa Maria district is shipping over 500 truckloads per week.  Strawberry shipments are building from the Watsonville district, and will soon surpass Santa Maria in volume.

Produce Rates

Salinas Valley vegetables and berries – grossing about $4300 to Dallas; $7100 to New York City.

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Scout Logistics Promotes Jamie Klayman to VP

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ScoutpromoScout Logistics Corporation, North America’s leading perishable logistics specialist, is pleased to announce the promotion of Mr. Jamie Klayman to Vice President. Jamie, a 8+ year veteran in the business, will be responsible for continuing to build sales within the North American market with specific focus on interstate loads transitioning from the Western states and Texas, to major international produce hubs throughout North America.

Previously, Mr. Klayman has served as Sales Manager – US Freight, where he led his team to record sales in 2014.  Furthermore, Mr. Klayman played an integral part in Scout Logistics’ recent accreditation as one of Canada’s 50 Best managed Companies.

“With Jamie’s promotion, Scout is looking forward to continued growth throughout the North American Market and a renewed focus on interstate freight,” said Lorne Swartz, President of Scout Logistics Corporation. “He is well known and respected in the industry and his outstanding ability to manage both client and carrier needs seamlessly, only strengthens our position in this market. His promotion is well deserved and is a result of his hard work and outstanding contributions to Scout’s exceptional growth.”

Jamie has almost a decade of produce logistics experience managing ground shipments for some of North America’s largest chains. “I am excited to take on this opportunity and increase Scout’s presence in the US market”, said Jamie.

About Scout Logistics Corporation

Scout Logistics is one of Canada’s largest non-asset based transportation providers. Founded in 2011, Scout has built a reputation for providing customers with best-in-class customer service, superior on-time delivery, and transformative technological applications. Scout transports over 500 million pounds of refrigerated goods each year, and has quadrupled its revenue since inception. To learn more about Scout, visit www.scoutlogistics.com.

 

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Pamela Anderson, Sheriff Joe, Hook up for Jailbird Diet

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pamela_anderson1 Joe ArpaioIf you end up in jail in this town, you better like being a vegetarian.  One of America’s toughest – and best sheriff’s, Joe Arpaio has a say when it comes to the decision to change Maricopa County’s prison menu to a much more produce-conducive diet.

“They may not like the food, but if they don’t, the other alternative is to not go to jail,” Sheriff Arpaio said in a Phoenix Business Journal report.

And if that doesn’t work, bring in PETA spokeswoman and celebrity Pamela Anderson to dish the food.  The Bay Watch star and animal advocate stopped by to serve lunches and promote the change, expressing her hope that other facilities would follow Mariposa’s example.

“We’re saving a lot of lives and I think it’s very helpful and encouraging to get people to eat compassionately and make non-violent choices,” Anderson said, according to the Kansas City Star.

From the business aspect, Sheriff Arpaio told the Phoenix Business Journal that the produce-charged vegan menu is not only a healthier option, it saves the county an additional $200,000 a year in food cost.

The jail system began the shift in diet provisions in 2013 with a focus on vegetarian, however the county contract still permits meat purchases, according to a Yahoo report from the time. Those contracts will expire in May of 2017, and whether or not they will be renewed is still a debate that continues.

While there appears to be local controversy with the county’s food suppliers and those advocating on behalf of inmates who do not necessarily want to be vegan, one thing is for sure; being served by the Baywatch star certainly helped the inmates eat their veggies.

 

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Increased Consumption of Fruits, Veggies is Recommended

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DSCN3883+1Seven public meetings over the last two years to develop recommendations for federal agencies have been held by an expert committee that has recommended Americans eat more plant-based food, including fruits and vegetables.

“Now that the advisory committee has completed its recommendations, HHS and USDA will review this advisory report, along with comments from the public — including other experts — and input from other federal agencies as we begin the process of updating the guidelines,” said Health & Human Services Secretary Sylvia Burwell and Agriculture Secretary Tom Vilsack in a joint statement.

Notably, the committee found that the consumption of fruits has remained low, but stable, for the U.S. population.   Vegetable intake has declined, particularly among children and adolescents.

Soon after its recent release, the report was criticized by the meat industry for its move away from recommending lean meat dishes.

“We appreciate the Dietary Guidelines Advisory Committee’s recognition of the important role that lean meat can play in a healthy balanced diet, but lean meat’s relegation to a footnote ignores the countless studies and data that the committee reviewed for the last two years that showed unequivocally that meat and poultry are among the most nutrient-dense foods available,” said North American Meat Institute President and CEO Barry Carpenter.

A consumer advocate, however, praised the committee for its latest recommendations.

“The committee has boldly stated that a sustainable diet, higher in plant-based foods and lower in animal-based foods, is better for both our health and the planet than the current American diet,” said Michael Jacobson, director of the Center for Science in the Public Interest. “The DGAC has always urged greater consumption of fruits and vegetables, but the recommendation to eat less red and processed meat deserves to be in the final Dietary Guidelines for Americans — and not excised at the behest of the meat industry.”

 

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Truck Broker-Shipper Model Agreement is Released

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DSCN5232by Transportation Intermediaries Association

Orlando, FL – The Transportation Intermediaries Association (TIA) is pleased to announce the release of the TIA & United Fresh Produce Association’s joint Broker-Shipper contract. This is the latest model contract offered exclusively to TIA members. All of TIA model contracts are exclusive to TIA members and can be found under the member’s only section of the TIA website.

The two organizations began working on the model agreement over six months ago with a small working group consisting of members of both organizations. On the importance of the model agreement and both organizations working together, TIA and United Fresh member Kenny Lund notes:

“Shippers and logistics companies worked together to create a model contract that is fair to both parties.  Now, United Fresh Produce Association and TIA have taken it to the next level by adapting the model contract for produce transportation.  Once again it is a balanced and it will save member companies time and money when they use it”

“I am very proud of the time commitment by members of both associations to put this model contract together.  The level of expertise in the working groups was impressive and has led to a helpful document.”

TIA member James Lee, Vice President, Legal Affairs for Choptank Transport speaks about the importance of TIA and United Fresh Produce Association creating this model agreement:

“In today’s age, transportation contracts are a necessity.   As produce is an exempt commodity, and produce transportation is unregulated per se, the importance of United Fresh Produce Association and TIA coming together to create a fair and ethical model contract to be used by both shippers and logistics providers cannot be stressed enough.  I am proud to be even a small part of the membership from both organizations who contributed their time, energy, and expertise in order to make this happen.”

In addition to the TIA-United Fresh Produce Association Broker-Shipper model agreement, TIA is pleased to announce updated versions of the Co-broker, Broker-IMC, and Broker-Forwarder model agreements.

TIA Contracts Subcommittee Chairman Chip Smith, Chief Operating Officer for Bay and Bay Transportation speaks about the importance of TIA developing these model contracts.

“TIA model contracts help level the playing field for the contracting parties by eliminating over-reaching clauses commonly promoted by one side or the other while comprehensively covering all the critical contract elements. By promoting industry best practices, we help advance the professionalism and fair trade for all.”

Transportation Intermediaries Association (TIA)

TIA is the professional organization of the $162 billion third party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials and international organizations.

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