Author Archive

Jimmy DeMatteis Addresses Respect for Drivers; Load Board Squatters

By |

JimmyDeMatteisWhen it comes to driver respect, few people understand it better than Jimmy DeMatteis, and too many fail to practice what he preaches in this regard.

After all, he grew up with a dad who started hauling produce in 1951.  His father eventually formed a brokerage in 1963 that eventually became Des Moines Truck Brokers.  Jimmy has since became president of the company.

“Everything we do is useless unless we have a driver in that seat.  When a driver walks into our office, our people (staff) get up, and walk over to that driver and shakes his hand.  I’ve been in an environment where they see a driver and they get up and walk out of the room, or start staring at their monitor and suddenly start acting like they are busy,”  DeMatteis says.

He believes the trucking industry needs to do a better job of recruiting, and that is only going to happen by making the driving jobs more attractive.  First and foremost, he states that shippers and brokers alike need to recognize the value of drivers.

“I think produce shippers in general are one of the worst offenders.  They tend to look at trucking strictly as a necessary evil.  They fail to see  it as an intregal part of the supply chain,” DeMatteis says, whose company expects to arrange about 9,000 loads this year.

He notes there are trucking jobs available where drivers can earn $50,000 to $60,000 a year, without having to be on the road for three weeks at a time.  These are jobs “where you’re not treated like dirt.”

While DeMatteis sees plenty of room for improvement by shippers and brokers in their treatment of truckers, he also sees the other side of the coin.

“Some drivers with an 18 wheeler are driving 25 mph over the speed limit.  They need to wise up and realize this is a profession.  Some of these guys drive like they are reliving the NASCAR race they saw on Sunday.  If you want to be treated like a professional, act like a professional,” he states.

Then he adds that there are too many “stupid” people driving four-wheelers as well.

While DeMatteis believes the majority of carriers are trying to conduct business the right way, he is critical of “the market squatters that are just trolling the load boards, waiting for the home run, and secure that $10,000 load from California to Boston (especially during the summertime peak produce shipping season).

He understands the market dictates rates, and the majority of time one is dealing with spot markets.

“The market squatters aren’t doing anything to be sustainable in the long run.  They need to operate like a business.  I’m not saying you should not take advantage of a market; everyone does.  It is good business.  But when you are churning and burning through customers, you can do that until there is nothing left.  When I feel abused by a carrier, that’s the last guy I’m going to call when I need a load,” DeMattheis states.

He explains  it is better when business is done right and you negotiate a fair rate, check one another out, provide the service, pay promptly and at the end of the haul you feel as if you can build upon a business relationship.  There needs to be more of this in trucking, DeMatteis believes.

 

 

 

 

 

 

Read more »

McDonald’s to Offer Fruits, Veggies as Alternative to Fries

By |

DSCN2653McDonald’s recently announced it would offer value menu customers a side of salad, fruit or vegetables as an alternative to French fries in the fast food giants top 20 markets, including the USA.

Additionally, McDonald’s said it would promote and market only water, milk and juice as the beverage for children’s Happy Meals and work to heighten kids’ interest in produce options.

Finally, the restaurant chain said it would have all of its advertising directed at children include a message about nutrition or wellbeing, as well as dedicated panels on Happy Meal boxes or bags.

The chain said it worked on the pledges with the Alliance for a Healthier Generation, which was created by the Clinton Foundation and the American Heart Association.  

An independent, third-party assessor will be brought in by McDonald’s to track its progress on the commitment, which the company expects to roll out  in up to half of the 20 markets within three years, completing implementation by 2020.

It’s a similar plan for healthier means recently announced by Burger King, which launched a low-fat, crinkle-cut French fry called Satisfries. The chain said the fries have 40 percent less fat and 30 percent fewer calories than the fries at rival McDonald’s.

McDonald’s  said specific options for substitute menu items would vary by market.

Read more »

Texas Company Files Bankruptcy, California Firm Calls it Quits

By |

ProgresoA company filing bankruptcy is never good for anyone.  In the produce industry there is the Perishable Agriculture Commodities Act (PACA) administered by the USDA, whereby creditors receive a certain amount of protection, and hopefully get at least a portion of the money they are owed repaid.

I’ve advocated for decades that product truckers be offered the same protections under PACA that are afforded those in the produce indutry.  Under a bankruptcy truckers would be among the last in line to be paid, which usually means they will receive nothing.

I was reminded of this when Progreso Produce Limited I LP filed for Chapter 7 bankruptcy liquidation for the Boerne, Texas, business Sept. 30.  The 40-year-old company is listing more than 60 creditors including many fresh produce companies.

The company is reported to have debts ranging from $1 million to $10 million.  Assets of less than $50,000 are reported.   The bankruptcy trustee notes there doen’t not appear to be any property available to the trustee to pay creditors.

River Ranch Closing

Meanwhile, produce, grower-shipper-processor of fresh vegetables, River Ranch Fresh Foods is closing operations.  The Salinas, CA, based company will cease operations, effective Nov. 8.

Taylor Farms Retail will service retail value-added accounts beginning Nov. 9, plus Growers Express will handle all field-pack commodity requirements.

River Ranch, which was formed 34 years ago, was purchased by Taylor Fresh Foods three years ago with the hope of improving financial performance and regaining viability.

Read more »

Apples Move into 3rd Place Among Fresh Fruit Sales

By |

IMG_6824Consumer purchases have moved apples ahead of bananas into third place in total retail sales, trailing only berries and packaged salad in the 52 weeks ending May 29, according to Steve Lutz, executive vice president of Nielsen Perishables Group.  Lutz said apples showed the biggest retail sales growth of any top major produce category, rising about 16 percent over the previous year.

Among the gains by various apple varieties with higher retail saies in the past year included pink lady, fuji, pinata, Honeycrisp, red delicious, ambrosia, Jazz, granny smith and gala, in addition to niche varieties such as Lady Alice, Envy, Opal and Junami.

The best apple consumers are willing to spend on healthy foods and fresh meals, and convenience and price are not a key purchase driver, Lutz said. With the income to afford choice, consumers are looking for unique flavors are driven to the category in pursuit of health, he said.

Despite challenges in the lackluster economy, Lutz said Nielsen data reveals fresh fruits showed an eight percent increase in retail dollar sales over the past year, accompanied by a 4 percent gain in volume. Produce is an increasingly important food choice for a majority of U.S. households.

 

Read more »

Chilean Produce Latest Scheduled Import to be Hit by Mother Nature

By |

IMG_6507Winter is never a great time for hauling produce as volumes are less and loading opportunties can become even worse as products are susceptable to the whims of Mother Nature.

It was reported recently adverse weather in Mexico is expected to cut loading opportunities at US border crossings starting next month.  Now we’re hearing intial reports of imports of Chilean produce expected to be significantly hit, due to weather.

As US volume and loading opportunities seasonally decline in the latter part of the year, Chile is an important exporter of winter fresh produce to America.  The product is typically picked up at ports on both coasts and distributed throughout North America.

There apparently going to be significantly less Chilean produce items for hauling this winter ranging from stone fruit, to kiwifruit, blueberries, grapes, almonds and walnuts.

The Santiago-based Chilean Fruit Exporters Association (ASOEX) is asking the Chilean government to declare a national state of disaster in the wake of the losses.

Up to 50 million boxes of fruit could be lost to freezes last  September “….that sets up the biggest crisis that has affected the Chilean fruit industry,” according to one observer.

Red River Valley Potato Shipments

Shipments of potatoes from North Dakota and Minnesota is light to moderate as the focus still remains on getting the crop out of the ground.  It is estimated the harvest is 60 to 65 percent complete.

Read more »

From S. Texas to Colorado, Idaho and Oregon, Check Out these Hauls

By |

DSCN1825Today, we’ll take a look at some loading opportunities starting in South Texas before extending up to Colorado and then over to Idaho and Oregon.

South Texas Produce Loads

The Lower Rio Grande Valley of south Texas is becoming more important every year for produce haulers.  It’s not so much the area is growing more fruits and vegetables, as it is farming operations in Mexico, many with investments by people north of the border, who are expanding operations.  Much of that produce is being shipped into the US for distribution throughout the states and Canada.

Everything from Mexican grown carrots to lemons, plum tomatoes, other vegetables and tropical fruits are crossing the border at McAllen is greater volume.  In the Texas valley itself, shippers are gearing up for shipments of grapefruit and oranges, that will start in the next few weeks.

Colorado Produce Shipments

The San Luis Valley is easily providing the biggest volume and loading opportunties, averaging about 500 truck loads of potatoes per week.  In the north and northeastern part of the state, the volume is much lower, but potatoes and onions are providing at least some partial loads.

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

Onion Shipments

The potato harvest in Idaho continues, but there are still about 1,600 truck load equivalents of spuds being shipped each week, although a higher percent is going by rail than in most other produce shipping points around the country….In Malhuer County, Oregon and eastern Idaho, about 750 truck loads of onions from storage are being shipped.

Idaho potatoes – grossing about $3100 to Chicago. 

 

Read more »

A National Outlook of Fall Produce Shipments from Several States

By |

DSCN0728Here’s a round up of some produce items being shipped from Florida, Michigan, Washington state, central Wisconsin and West Texas.

Florida Produce Shipments

The Florida grapefruit harvest got underway from the Indian River District September 30th and light shipments are underway.  By mid October loadings should be in good volume.

Florida’s citrus season usually begins with fallglo tangerines in mid- to late September, followed by grapefruit and navel oranges.  Initial estimates on the navel orange crop indicate shipments this season will be similar to a year ago.

Michigan Produce Shipments

Michigan is shipping light to moderate volume of several fall produce items.  While sweet corn and several other vegetable items are ending their season, there are partial loads of items such as celery and carrots.  Volume is now increasing on what promises to be a record amount of apples this season.  There also is increasing volume with potatoes and onions.

Washington Produce Shipments

Washington state is shipping nearly 2,000 truckload equivalents of apples weekly with the new crop, primarily from the Yakima and Wenathee valleys.  There also are about 750 loads of storage onions coming out of Washington’s Columbia Basin and the adjacent Umatilla Basin of Oregon.

Washington apples – grossing about $4500 to Chicago.

Wisconsin Potato Shipments

The Badger state is moving over 500 truck loads of potatoes weekly, primarily from Central Wisconsin, as volume continues to increase.

West Texas Potatoes

The High-Plains region in west Texas, south of Lubbock, is shipping about 250 truck load of spuds a week.

Read more »

Canadian Driver Dale Gray: US Truck Regulations are Tougher

By |

Dale GrayIntrusive and excessive government regulations have been reported numerous times in HaulProduce.com and further proof of probably the greatest threat to the trucking industry, and particularly owner operators, comes from Dale Gray of Trenton, ON.

Dale is a veteran and drove a truck in the military before becoming a driver in civlian life in 1997.  For over two years now he has been driving for Scotlynn Commodities Inc., of Vittoria, ON a Canadian transportation operation that has a sister company with several farms in Ontario and the USA that grows numerous items ranging from sweet corn to pumpkins.

Trucking both in the states and in Canada, Dale says American “rules are not as lienient.”

Although the hours of service regulations in both countries are similar, he prefers those in Canada because it allows him to be more profitable.  For example, he can legally truck 13 hours in his country, compared to only 11 hours in the states.

“I prefer the the 13 hours driving time, because I can drive more hours.  It makes a difference if you are paid by the mile,” Dale says.

He also notes he can split his sleeper berth hours by doing 8 1/2-hour increments during the day.  In the US, the hours must be in 10-hour blocks.

“I can’t sleep for 10 hours,” he states. “Canadian rules are more user friendly.”

Speed limits are another matter, according to the 57-year-old driver.  He notes Canadian speed limits in most of the country are 100 to 110 kilometers (65 – 70 mph).  He prefers the higher American speed limits which range from 55 mph in California to 80 mph in Utah (75 mph in North Dakota where this interview took place).

Dale drives a 2012 maroon 386 model Peterbilt powered by a 485 hp Paacar MX diesel.  The truck has a 60-inch sleeper with a 244-inch wheelbase and 13 speed tranny with overdrive.  He pulls a 53-foot Utility trailer with a 2100 Advance Carrier refrigeration unit.  Dale notes the reefer has a 120-gallon fuel tank that will run for a week. 

“The reefer unit has a larger fuel tank so it can be shipped by rail,” he says.

Dale’s favorite thing about trucking is even though he is a company driver it is similar to being your own boss.  “There is no one looking over your shoulder all of the time.  In part of my military career, I was stuck in an office.  I didn’t like that,” he states.

The worst part of driving is the attitudes of both four wheelers and truckers seems to have worsened over the years.

Dale hauls a lot of fresh produce grown by Scotlynn, plus he delivers a lot of frozen doughnuts and dry freight.  On this particular day he was waiting to pick up a load of macaroni in Grand Forks, ND for delivery in Ontario.

 

 

 

Read more »

Survey of Organic Products Shows Continued Growth

By |

IMG_6822The Organic Trade Association’s 2013 Organic Industry Survey, conducted and produced by Nutrition Business Journal, indicates that the U.S. organic product market continued to climb in 2012, putting more distance between the growth of today and the difficulties of the recession in 2009.

More than 200 companies responded to the survey, which was conducted from Jan. 25, 2013 through April 5, 2013. It includes revenues reported in narrow ranges, sales growth, revenue by product and sales channel breakdowns.

Consumer sales of organic products — both food and non-food — accounted for $31.5 billion in sales in 2012, adding roughly $2.9 billion in new annual sales dollars while also achieving double-digit growth for the first time since 2008.

In the produce category, fresh fruit and vegetable sales continues to lead the way by a huge margin over canned and frozen products. Fresh produce sales in 2012 represented 90.8 percent of total organic produce sales, with frozen organic produce at four percent, canned at 3.45 percent and dried beans, fruits and vegetables at 2 percent.

The survey also indicated that private label and contract manufacturing continue to be important segments of the organic business. While the private label organic product offerings in the mass market channel continue to expand, many large players in this channel indicated that sales growth was down in 2012.

Private label growth is stronger in the natural retail channel, where shopping for organic is easier and consumers clearly understand the value proposition of an organic private label product.

 

Read more »

Daily Table Program Coming Next Year to Address Food Waste

By |

IMG_6680National Public Radio reports a third of the world’s food goes to waste every year.   In the USA alone, nearly 40 percent of  food is thrown out, whether it occurs on farms, grocery stores, or in homes.

Doug Rauch, former president of  Trader Joe’s, is introducing Daily Table,  a new perishable foods project aimed at tackling the overwhelming problem of food waste.   He is determined to repackage perfectly edible produce just past its sell-by date that ends up in the trash.

“Most of what we offer will be fruits and vegetables that have a use-by date on it that’ll be several days out,” says Rauch.  Daily Table will open in early 2014 in Dorchester, MA preparing and repackaging food at deeply discounted prices.

The idea behind the project is to bring affordable nutrition to the underserved living in the inner-cities of America. Rauch suggests  the format is a hybrid between a grocery store and a restaurant, primarily taking this repackaged food, prepping it, and cooking it for what he calls “speed-scratch cooking.”

This is in an attempt to offer this food at prices that compete with fast food. Despite the fact that the food is past its sell date, Rauch ensures the products are absolutely safe to eat.

“This is about trying to tackle a very large social challenge we have that is going to create a health care tsunami in cost if we don’t do something about it,” says Rauch. “I don’t regard Daily Table as the only solution – there are wonderful innovative ideas out there – but I certainly think it is part of and is an innovative approach to trying to find our way to a solution.”

Read more »