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Consumer Study: 36% of U.S. Families Skip Meals for Economic Reasons

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About 36% of American families have skipped meals due to financial reasons during the last year, reports the fourth wave of the dunnhumby Consumer Trends Tracker (CTT).

Additionally, the study discovered 40% of consumers shop at multiple supermarkets to find the lowest prices, 9% higher from a year ago. 

The study also reveals that 30% of Americans in all age groups have skipped meals. In addition, 18-34-year-olds and 35-44-year-olds are the highest meal skippers of all age groups, at 38% and 37%, respectively.

The U.S. Bureau of Labor Statistics indicates the rate of food-at-home inflation is 7.1%, however, among surveyed shoppers, the perceived figure is 22.6%, more than 15 points higher than the official measure.

Similarly, perceived inflation has fallen 1.6% since November 2022, whereas actual inflation has dropped 4.9% over the same time period.

Among the 8,000-plus U.S. consumers surveyed online, dunnhumby found 62% of Americans would have difficulty paying an unexpected expense of $400. That percentage jumps to 75% for consumers aged 18-44 and 72% for families.

“Over this year-long study, we have seen a very troubling trend of nearly a third of all Americans and nearly 40% of younger Americans, skipping meals due to financial concerns. And wave after wave, our research has also shown that 18-44-year-olds are at the epicenter of a food and financial insecurity crisis that shows no signs of abating,” said Matt O’Grady, President of Americas for dunnhumby. “Unfortunately, the reduction in SNAP benefits, and the stubbornness of center store prices, there doesn’t appear to be relief in the short term for many Americans, especially those who are already food and financially insecure.”

Oklahoma, Arkansas, Louisiana, Alabama, Tennessee, Georgia, and West Virginia continue to stand out for having the highest rate of food (36%) and financial insecurity (70%) in the country. These states also have the highest proportion of children at home compared to other geographic regions in the U.S.

Over half of customers (53%) report social media sites have influenced their grocery purchases in-store or online. Families with children at home (75%) and households heavily engaged with loyalty programs (68%) are two groups even more likely to be influenced by social media. Across all age groups, 37% were influenced by Facebook, 31% by YouTube, and 24% by Instagram.

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Update: Estimated 25 Million Boxes of California Grapes Lost to Hurricane Hilary

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Fresno, CA – Hurricane Hilary delivered wind and rain to many of California’s table grape vineyards at peak harvest time for most of the 90 varieties grown in the state. The immediate aftermath of the hurricane brought additional rain and humidity to many growing areas, compounding problems and loss.

“The impact of the hurricane and its aftermath is devastating
and heartbreaking,” said Kathleen Nave, president of the California Table Grape Commission. “To say that the grower and farmworker community is in shock is an understatement.”

With approximately 30 percent of the crop harvested when the hurricane hit, it is projected that 35 percent of the remaining crop – 25 million boxes – has been lost.

“The revised estimatefor the California crop is 71.9 million 19-pound boxes,” said Nave. “The last time the crop was
under 75 million boxes was 1994.”

Noting that it is typical for California to ship over 65 percent of its crop after September 1, Nave said that based on the revised estimate there are still over 45 million boxes of grapes the industry plans to ship.

“Reaching consumers at retail stores is a major focus of the work done
by the commission,” Nave said. “Partnering with retailers to get grapes on store shelves and to promote them to consumers is work that will continue throughout the season.”

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Good Volume Fig Shipments are Coming out of California

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The California fig harvest started several weeks ago and observers are reporting strong volume and high quality. Harvest will continue through November, according to the California Fresh Fig Growers Association.

Commercially grown fresh and dried figs in the U.S. are produced in California, where over 100 producers, marketers, farm managers and processors cultivate 9,300 acres of California figs around Madera, Fresno and Merced.

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U.S. Imports of Mexican Avocados Breaks a Record

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Trade association Avocados From Mexico has topped its previous record by over 2 percent for U.S. import volume.

Total U.S. import volume was nearly 2.5 billion pounds for the fiscal year ending June 30, 2023.

The association expresses confidence it will break the record again this year (fiscal 2024, running from July 1, 2023 to June 30, 2024.)

The state of Michoacan appears to have a crop for this current year similar to the previous year, and import volume from Jalisco is growing exponentially, which means another record year if all goes as expected.

Promotions tied into Super Bowl weekend in early February was the biggest tentpole moment of the year resulting in excess of 250 million pounds of Mexican avocados imported in the weeks leading up to the big event.  AFM also saw record-setting Cinco de Mayo promotions and shipments, with volume up more than 60 percent from 2022 and up 18 percent from 2021, which produced the previous record.

Mexico accounts for 85 percent of the avocados consumed in the U.S.

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Shipments of Cranberries from Wisconsin, Massachusetts to be Down This Season

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The USDA has estimated the U.S. national cranberry crop for 2023 at 7.62 million barrels, down 5% from the 2022 crop year. In Wisconsin, the largest growing state, the USDA forecast production at 4.6 million barrels, down 5% from last year.

Production in Massachusetts, forecast at 2 million barrels, is down 12% from last year, the USDA said.

Cranberry growers experienced cold temperatures, with below-normal precipitation and above-normal snowfall during the winter months.

In Wisconsin and Massachusetts, the winter freeze and early snow affected plant dormancy and froze out buds, the release said.

In the spring and early summer months, numerous frosts and hailstorms occurred during the growing season.

Growers in some areas reported severe frost damage, resulting in reduced crop growth and yield loss, according to the USDA.

In Oregon, the crop faced threats from the intensive heat and extreme weather in late June and mid to late July, and growers are concerned about fruit size. With good management practices, cranberry growers expect a good to average season despite the challenging weather during the bloom period, the USDA said.

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NY Apple Shipments Just Starting; Good Volume Expected

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The New York Apple Association expects nearly 28 million bushels for the upcoming fall harvest, about 4 million bushels less than a year ago. However, this year’s shipments should represent about the five-year average of volume.

Apple harvesting started in the Hudson Valley and immediate surrounding areas in mid-August, followed by central and western New York about a week or two later. Then comes northeastern New York.

Here is a round up on when to expect each variety:

  • Early season varieties start in August with ginger gold and paula red, followed by jonamac and Zestar.
  • Other varieties, such as mcintosh, gala, Honeycrisp, cortland, macoun, jonagold, empire, New York-grown SweeTango, SnapDragon and New York-grown EverCrisp, are typically ready in early September through October, depending on the geographical location.
  • Other varieties, such as red delicious, Crispin, golden delicious, fuji, Cameo, rome and braeburn, follow soon afterward.

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High Nutritional Value Boosts Popularity of Passion Fruit

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Passion fruit is native to Peru’s Amazon region, and its high nutritional value has granted it popularity around the world.

The seeds have high oil content and are easily digestible, and its peel is rich in pectin, which is a natural gelling agent that can also be used to combat constipation.

It is low in fat, and has tranquilizing and detoxifying properties.

“Because of its important nutritional properties, passion fruit is in demand by the juice and cosmetics industry, hence it is expected to be in the top 5 of the most exported Peruvian fruits,” reports the Peru Exporter’s Association.

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Hilary Hits California Grapes; 20% Reduction is Seen with Remaining Crop

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Only about 30 percent of California’s table grapes had been shipped with Tropical Storm Hilary hit the San Joaquin Valley on August 20th. So about 20 percent of the remaining 70 percent of the grapes have been affected
The storm crossed Baja California, and also dropped rain in Sonora, en route to California.

Pandol Bros., Inc., of Delano, CA  reports about 20% of the remaining California grape crop has been damaged. About 25-30% of the total fresh California table grape harvest was complete. So, of the remaining 70%, 20% was harmed by Hilary.

It was organic and white varieties that were most damaged. The later season red and black varieties have thicker skins and weathered the storm in better shape. So grape shipments from the middle part of the season, which is occurring now, will be affected most.

The 20% loss will be felt immediately, running to the middle of November. The crop should then be normal until it ends in late November.

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July Freight Volumes, Rates Chilled by Seasonality

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BEAVERTON, OR — Truckload freight volumes fell last month, and national benchmark spot rates for dry van and refrigerated (“reefer”) loads retreated from their gains in June, reported DAT Freight & Analytics, which operates the industry’s largest online freight marketplace and DAT iQ data analytics service.

The DAT Truckload Volume Index (TVI), a measure of loads moved during a given month, was lower in July for all three equipment types:

• Van TVI was 226, down 7.0% from June and 3.0% lower year over year.
• Reefer TVI slipped to 169, 3.4% lower than in June but 1.2% higher year over year.
• Flatbed TVI was 238, 12.8% lower compared to June but 3.5% higher year over year.

“Shippers faced service disruptions at the ports and in the less-than-truckload sector but were able to secure van capacity without causing the needle to move on spot rates and volumes,” said Ken Adamo, Chief of Analytics.

Despite month-over-month declines, the reefer and flatbed TVI numbers were the highest on record for July as fresh and frozen food, metals, machinery, construction materials and other seasonal freight moved through supply chains.

Demand for trucks slowed

National average load-to-truck ratios for van and reefer freight have been virtually unchanged for three straight months:

• The van ratio was 2.6, equal to June and down from 3.8 in July 2022.
• The reefer ratio was 3.8 – unchanged from June and down from 7.2 a year earlier.
• The flatbed ratio was 7.1, down from 9.7 in June and significantly down from 21.8 in July 2022.

Spot, contract rates dipped

Reflecting flat demand, DAT’s benchmark spot rates slipped in July:

• The spot van rate was $2.07 per mile, down 1 cent compared to June and 56 cents lower than in July 2022.
• The spot reefer rate dipped 3 cents to $2.44 per mile and 60 cents lower year-over-year.
• The spot flatbed rate was $2.54 a mile, down 7 cents month over month and 72 cents lower year-over-year.

Line-haul rates, which subtract an amount equal to a fuel surcharge, declined as well. DAT’s benchmark van line-haul rate was $1.63 per mile, down 2 cents compared to June. The reefer line-haul rate fell 5 cents to $1.96 per mile and the flatbed line-haul rate dropped 9 cents to $2.01 per mile. The average fuel surcharge increased by 2 cents to an average of 44 cents a mile for van freight, 48 cents for reefers and 53 cents for flatbeds in July.

“Spot rates, as a reminder, are ‘all-in’ rates, meaning no separate fuel surcharge to help mitigate the risk of fuel price fluctuations. You have to negotiate each individual load with fuel and operating costs in mind, which is not always easy,” Adamo said. “The sudden increase in fuel prices is testing the wherewithal of small carriers at a time when freight volumes are in a seasonal lull.”

DAT’s benchmark rates for contracted freight strengthened compared to pricing on the spot market. The van rate fell 1 cent to $2.57 a mile, the reefer rate gained 3 cents to $2.91 a mile and the flatbed rate rose 5 cents to $3.29 a mile.

After closing for three straight months, the spread between contract and spot rates was unchanged for van freight and increased by 6 cents for reefers and 12 cents for flatbed loads. The size of the gap is an indicator of bargaining power among shippers, brokers and carriers, Adamo explained.

About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion. A baseline of 100 equals the number of loads moved in January 2015, as recorded in DAT RateView, a truckload pricing database and analysis tool with rates paid on an average of 3 million loads per month.

Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. DAT benchmark rates are derived from payments to carriers by freight brokers, third-party logistics providers and other transportation buyers for hauls of 250 miles or more with a pickup date during the month reported. DAT’s rate analysis is based on $150 billion in annualized freight transactions.

Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace and indicate the pricing environment for truckload freight.

About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload freight marketplace in North America. Shippers, transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights based on more than 400 million freight matches and a database of $150 billion in annual market transactions.

Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the S&P 500 and Fortune 1000 indices.

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Berries are the New King of Mexican Agricultural Exports

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Berries replaced beer as Mexico’s top agri-food export product in 2022. In the first two months of 2023, the industry confirmed its profitability with a revenue value of $777 million, according to the Bank of Mexico.

This means berries has surpassed other popular crops, such as avocados, and highly demanded products such as beer and tequila.

Berries are produced commercially in 22 of the country’s 32 states, and exported to 38 nations across the globe.

Mexico produces raspberries, blueberries, blackberries and strawberries, with the latter leading the export figures.

The U.S. is the biggest importer of Mexican berries, followed by the Middle East, Southeast Asia and Europe.

During the 10 years, strawberry, blueberry and raspberry production has tripled from 257,000 metric tons (MT) in 2011 to 754,000MT in 2020.

The total value of Mexican berry exports has increased fivefold during this period.

Víctor Manuel Villalobos, secretary of Agriculture and Rural Development of the Government of Mexico, says that, in 2022, Mexico exported 560,000 tons of strawberries, and that the sector provides over 450,000 jobs.

Around 40% of these jobs belong to women in the industry.

Main producing states are Michoacán, where 58% of all berry production takes place, followed by Jalisco and Baja California with a 17% and 12% participation, respectively.

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