Author Archive

Imports of Peruvian Asparagus will be down Due to Weather Problems

By |

U.S. imports of Peruvian asparagus this season have suffered from unfavorable weather in growing regions, industry leaders say.

“The asparagus import industry has seen a month-over-month 40% decline in production,” the Peruvian Asparagus Importers Association said in a news release.

The forecast and anticipated arrivals into the U.S. will continue to be lower than expected through August and possibly September , according to the group, which discussed the asparagus industry’s 2023 production difficulties at the its June 22 board meeting in Miami, the release said.

Peru went over 40 years without a cyclone, but in early March 2023 Cyclone Yaku reached northern Peru and dumped a year’s worth of rainfall on some growing regions, the release said.

In addition, El Niño’s heavy rains have negatively affected asparagus production, harvest and logistics in the north, according to the release. Extreme precipitation has rendered about 40% or more of the fields to “regrowth” and delayed the harvest, according to the release. This weather phenomenon of heavy rains has destroyed roads and created mudslides and floods making transportation impossible, the release said.

El Niño weather conditions have increased growing temperatures to 80-95 F in some areas, well above historical average temperatures ranging from 65-70 F, the release said. High temperatures stress production and trigger lower-than-expected harvests.

The release said the Peruvian Asparagus Importers Association believes it will have a promising fourth quarter as production moves to the south, which has not been affected.

USDA statistics from 2022 show that Peru shipped asparagus to the U.S. in every month, with total shipments of 217 million pounds, second only to Mexico’s 361 million pounds among global asparagus suppliers to the U.S.

The USDA reports that through late June, U.S. imports of Peruvian asparagus were off nearly 40% compared with the same time a year ago.

Read more »

Peruvian Mandarin/Tangerine Exports to U.S. Expected to be Similar to Last Year

By |

Peruvian mandarin/tangerine production is forecast down slightly at 550,000 metric tons in the marketing year 2023-24 (March 2023 to February 2024), with exports expected to increase by 1% to reach 222,000 metric tons in the marketing year, the USDA Foreign Agricultural Service said in its semi-annual report on Peruvian citrus. This volume would be similar to the previous season.

“Despite a late start to the harvest season due to unusually warm weather, producers expect a solid crop later in the year,” the report said.

Citrus exports to the U.S. are expected to fall slightly to 122,000 metric tons but will likely remain Peru’s top market, the report said.

USDA shipment data indicated the top volume month for U.S. imports of Peruvian tangerines/mandarins was August, when 40% of Peru’s 2022 volume arrived in the U.S. Other top volume months were July (14%), September (20%), June (11%) and October (6%).

Last season, Peru exported 63% of its mandarins/tangerines to the U.S., with 8% shipped to the United Kingdom and 8% to Holland. Peru’s mandarin/tangerine planted area is estimated at 54,360 acres, the report said.

The major mandarin/tangerine production areas in Peru are in the central, semi-tropical coastal regions with good availability of water, of which the regions of Lima, Junín and Ica represent 85% of the country’s production of mandarins and tangerines, the report said.

Approximately 50% of Peru’s overall production achieves the size, color and flavor profile (acidity and sweetness) demanded by the international market, the report said.

Currently, government data indicates there are 379 mandarin/tangerine orchards in Peru, with 30 packing and treatment facilities, according to the report.

Read more »

Mexican Tomato Exports to the U.S. to Continue Rise

By |

Mexican fresh tomato shipments for 2023 are predicted to hit 3.87 million metric tons, a 2% increase over the Mexican government’s official 2022 production estimate of 3.8 million metric tons, according to the USDA.

“Stable U.S. demand and increasing adoption of greenhouse technologies account for the uptick in year-on-year production growth,” the report said.

The USDA also forecasts Mexico’s 2023 fresh tomato exports at 2.06 million metric tons, a 5% increase over 2022, due to expected higher production, stagnant domestic consumption and robust U.S. demand.

Although exports to the U.S. occur year-round and are consistently above 100,000 metric tons per month, the largest volume of exports generally occurs from January to March and from October to December.

In 2022, the report said Mexico exported over 1.81 million metric tons of tomatoes to the U.S. and accounted for about 91% market of tomatoes imported into the U.S.

Sinaloa remains Mexico’s largest tomato-producing state and accounts for 22% of total production, followed by San Luis Potosi, Michoacán, Zacatecas and Jalisco.

Mexico’s tomato exports to the U.S. will remain strong due to robust supplies and flat Mexican consumption.

Mexican tomato production occurs throughout the year with two overlapping production and harvest peaks, the report said. From December to April, the state of Sinaloa — Mexico’s largest open-field and shade house tomato producer — dominates the domestic market and exports over 80% of its crop to the U.S., according to the report.

During the period from May to November, the states of San Luis Potosi followed by Michoacán, Zacatecas, Jalisco, Baja California Sur, Sonora, Morelos, and Puebla become major suppliers, the report said.

According to the Mexican government’s Agrifood and Fisheries Information Service, the official 2022 production estimate reached 3.8 million metric tons.

Sinaloa’s production in 2022 totaled 821,000 metric tons, followed by San Luis Potosi with 475,149 metric tons, Michoacán with 322,153 metric tons, Zacatecas with 244,706 metric tons, Jalisco with 197,946 metric tons and Baja California Sur with 189,659 metric tons.

San Luis Potosi, Michoacán, Zacatecas and Jalisco account for over 55% of national production, but tomatoes are grown throughout the country, the report said.

“While Sinaloa currently remains Mexico’s largest state-level producer, most of the overall production growth is dispersed across San Luis Potosi, Michoacan, Jalisco, as well as other smaller producing states,” the report said.

Mexico exports over half of its annual tomato production, and growers throughout the country use greenhouses, shade houses, high-tunnel systems and other climate-control technologies to supply the U.S. market year-round, the report said. In fact, Mexican government sources reveal that 67% of tomato production is grown under controlled conditions, the report said.

The greatest volume of Mexican tomatoes imported into the U.S. enters through the Laredo (Texas) Customs District, followed by the Nogales (Ariz.) and San Diego Customs Districts, the report said.

The Laredo District has four important ports of entry for fresh tomato shipments, chiefly Pharr, Laredo, Brownsville and Progreso. In comparison, the Nogales and San Diego Customs Districts each have just one port of entry for tomatoes, the report said.

Read more »

Truckload Spot Rates Reach a Low Point in June

By |

BEAVERTON, OR — Truckload freight volumes and spot rates held firm in June while contract rates fell to their lowest points in almost two years, according to DAT Freight & Analytics, operators of the industry’s largest online freight marketplace and DAT iQ data analytics service.

“The gap between spot and contract rates was the narrowest since April 2022,” said Ken Adamo, DAT Chief of Analytics. “Rates for van and refrigerated freight increased for the third straight month, and volumes were almost unchanged from May. These are signs that spot truckload prices have reached the bottom of the current freight cycle.”

The national benchmark contract rate for dry van freight has not increased for 12 consecutive months. At $2.58 per mile, the rate was 70 cents lower than a year ago.

Volumes held steady in June
The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, decreased marginally for van and refrigerated (“reefer”) freight and increased slightly for flatbed loads:

  • Van TVI: 230, down 1% from May
  • Reefer TVI: 167, down 3% from May
  • Flatbed TVI: 267, up 2% from May

Van, reefer rates improved
On the spot market, the national benchmark rates for van and reefer freight rose while the flatbed rate declined compared to May:

  • Spot van rate: $2.08 per mile, up 3 cents, the first increase in five months
  • Spot reefer rate: $2.47 a mile, up 3 cents
  • Spot flatbed rate: $2.61 a mile, down 4 cents

Van line haul rates averaged $1.65 a mile, up 4 cents compared to May, while reefer line haul rates averaged $2.01 a mile, up 5 cents. The flatbed line haul rate dipped 2 cents to $2.10 a mile. Line haul rates subtract an amount equal to an average fuel surcharge. Lower diesel prices in June pushed fuel surcharges to 17-month lows, averaging 43 cents a mile for van freight, 46 cents for reefers, and 51 cents for flatbeds.

Load-to-truck ratios reflected seasonal demand
Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace:

  • The national average van load-to-truck ratio was 2.6, meaning there were 2.6 loads for every van posted to the DAT One marketplace last month. The ratio was 2.5 in May and 3.9 in June 2022.
  • The reefer ratio averaged 3.8, up from 3.6 in May and down from 7.0 in June 2022.
  • The flatbed ratio fell to 9.7, down from 11.7 in May and 37.6 in June 2022.

“Demand for truckload services typically slows at this time of year, but this could change quickly given the threat of strikes in the parcel and less-than-truckload sectors,” Adamo said. “Shippers are putting contingency plans in place and would look to freight brokers and carriers on the spot market to keep their line haul operations moving. Demand for trucks would jump, especially around Louisville, Memphis, Indianapolis, Dallas and other major parcel hubs.”

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. National average spot 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.

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.

Read more »

Keeping Your Product Safe and Fresh

By |

By Bill Bess, ALC

It’s no secret that organized crime, scammers, and thieves are actively working to upset the legitimate flow of freight across the US and Canada. This type of crime has been going on for years, but in the last 12 months thieves have intensified their efforts. Cargo security is a major concern no matter what your role is in the food supply chain. We are all in this together and together we can tighten up our security and make a huge difference.

Allen Lund Company has taken a pro-active approach to identify and eliminate potential security breaches. We have made changes to our on-boarding process, which is closely monitored by our Carrier Resources department. Education and training for brokers has given them the tools to evaluate the potential risk that a carrier might exhibit and react accordingly. Our Accounting department scans thousands of bills of lading and invoices monthly, looking for any inconsistencies. In addition to the internal measures ALC has taken, we share information and best practices with the Transportation Intermediaries Association, CargoNet, Carrier411, and other transportation companies. These policy changes, information sharing, and additional training will continue to make a difference.

What can a shipper or a warehouse do to help prevent your product from being compromised?

  • Prior to loading, have your broker give your shipping department the driver’s name, company name, and trailer number. If the information doesn’t match call the broker.
  • Whenever possible use a temp recorder that has a tracking device built in. These devices have the ability to monitor temps and location.
  • Don’t rely on the pick-up number to verify the carrier.
  • Verify the driver’s name with their license. Insist that the bills are signed legibly by the driver and include their company name. If necessary, have the driver print their name and company name.
  • Driver should arrive with a pre-cooled trailer. Driver should acknowledge that they understand the desired temp and that it is in continuous mode.
  • Most importantly, use a transportation service provider that has the experience and protocols in place that are necessary to protect your product.

We are all in this together with the same basic goal…to deliver the safest and freshest product to our customers.

*****

Bill Bess, Director of Carrier Development, was previously the manager of ALC Orlando, FL, and has been with the Allen Lund Company for 39 years. With over 45 years of experience transporting perishable products, Bess’s expertise includes perishable supply chain protocols, claims resolution, and developing carrier-specific programs for the company.
bill.bess@allenlund.com

Read more »

North Carolina Produce Truck Shipments are Increasing

By |

North Carolina fresh fruit and vegetable shipments rose 6% in 2022 when compared with 2021, according to USDA data.

Total North Carolina truck shipments of fresh produce commodities in 2022 totaled 1.1 billion pounds, up from 1.04 billion pounds the USDA reported in 2021.

The biggest month for North Carolina fresh produce shipments in 2022 was July, when the USDA said state’s shippers moved 305.2 million pounds of fresh fruits and vegetables. February was the lowest month for shipments, with the USDA reporting 43.6 million pounds of produce moved that month.

The biggest fresh commodity in the state is sweet potatoes, and the USDA reported truck shipments of 494.9 million pounds for 2022, down about 6% from 524.7 million pounds in 2021. The biggest month for North Carolina sweet potato truck shipments in 2022 was April, when the state’s shippers moved 52.6 million pounds for the month.

Here are USDA reported annual truck shipments for North Carolina fresh produce items in 2022, with percentage change from 2021:

  • Apples: 7.3 million pounds, up 115%.
  • Beans: 7 million pounds, up 35%.
  • Blueberries: 21.2 million pounds, up 27%.
  • Organic blueberries: 400,000 pounds, unchanged.
  • Broccoli: 3.3 million pounds, up 22%.
  • Cabbage: 37 million pounds, up 17%.
  • Cucumbers: 11.4 million, up 20%.
  • Eggplant: 2.2 million, up 16%.
  • Greens: 15.4 million, up 27%.
  • Miscellaneous berries: 5.1 million pounds, up 19%.
  • Bell peppers: 33.5 million pounds, up 31%.
  • Other peppers: 4.8 million pounds, up 85%.
  • Potatoes: 14.1 million pounds, up 2%.
  • Chipper potatoes: 210.4 million pounds, up 12%.
  • Squash: 4.3 million pounds, up 5%.
  • Strawberries: 4.3 million pounds, down 7%.
  • Sweet potatoes: 494.4 million pounds, down 6%.
  • Tomatoes: 2.4 million pounds, down 8%.
  • Grape tomatoes: 300,000 pounds, down 25%.
  • Plum tomatoes: 500,000 pounds, up 150%.
  • Seeded watermelon: 9.2 million pounds, down 3%.
  • Seedless watermelon: 223.2 million pounds, up 24%.
  • State total: 1.1 billion pounds, up 6%.

Read more »

Dollar General is Expanding Produce in Stores this Year at the Expense of pOpshelf

By |

Dollar General is pulling back on “nice to have” investments in favor of “need to have” as inflation and income pressures its bottom line. The move mirrors many of its customers.

Headquartered in Goodlettsville, TN, the company is cutting its pOpshelf concept in 2023, reducing the number of stores in the pipeline to 90, down from 150. The concept, which is focused more on urban shoppers with higher incomes, currently has more than 160 stores in 16 states.

“We are reevaluating our plans with regards to our timing of reaching 1,000 stores by the end of 2025 and plan to provide an updated expectation at a later date,” said CEO Jeff Owen, during the company’s recent earnings call.

Reductions in SNAP dollars and lower-than-usual tax returns hit Dollar General customers hard, Owen said. That resulted in less discretionary spending, and lower sales in non-consumables.  

“Unfortunately, our customers are saying they’re having to rely more on food banks, savings, and credit cards,” Owen said.  

One area Dollar General continues to focus on is its DG Fresh, and fresh produce initiatives. DG Fresh has enhanced profitability of perishables for the company, and while it continues to focus on frozen and refrigerated foods, fresh produce is still on the radar.  

“While produce is not currently serviced by our internal supply chain, we continue to believe that DG Fresh provides a potential path forward to expanding our produce offering to more than 10,000 stores over time,” Owen said.  

By the end of the first quarter, March 31, Dollar General offered fresh produce in nearly 3,900 of 19,000 stores. Owen said the company is on track to expand that number to 5,000 by the end of 2023. 

 

Read more »

Update: Summer Citrus from South Africa for the 2023 Season

By |

Cape Town, South Africa  Summer Citrus from South Africa entered its 25th shipping season with the support of the MSC Shirley and fruit arrived into the U.S. in late May. Despite recent heavy rainfall in the Western Cape and in Citrusdal, where SCSA’s growers are primarily located, the group is reorganizing after days without electricity, and a lack of access to citrus groves and some roads. The reality is that load shedding is part of their daily lives, and the Western Cape is a winter rainfall area. Despite the challenges and a minor setback with timing, SCSA promises that high-quality fruit is on the way weekly for the rest of the summer.

“We kicked off our 25th season on a positive note and we followed our inaugural vessel, the MSC Shirley, immediately with other vessels that are now en route to the Port of Philadelphia as we gained momentum through the month June,” said Suhanra Conradie, CEO of Summer Citrus from South Africa. “Our business is all about managing our challenges and utilizing our opportunities collectively. The news highlighting conditions in the Western Cape has certainly raised concerns about the season ahead and I’m here to confirm, fruit for the summer is on the way.”

New to its 25th shipping season, the group from SCSA has gained access to deliver fruit to both sides of the Delaware River at the Port of Philadelphia confirming a steady and plentiful weekly supply of citrus from the Western Cape of South Africa, both with conventional and container vessels.  This new approach to citrus shipments provides a significant advantage for the group, in providing sustained long term shipping opportunities, for the planned growth of the program in the near future.

“Supply is up to expectations and ready to satisfy the demand for citrus in the U.S. throughout the summer. I can confirm weekly arrivals of either conventional or containers or both, will arrive at the Port of Philadelphia from July onwards for the remainder of the season.” said Conradie. “Our unique model of collaboration has proven successful yet again, and we have not only forecasted a healthy supply of citrus, but we’re also committed to delivering fruit to satisfy the U.S. market with the finest summer citrus available in the world. This is why SCSA remains the preferred supplier of citrus in the U.S. during the summer months.”

SCSA operates in an area with a Mediterranean climate where winter rainfall forms an essential part of the planned sustained growth for future years. A video is available to illustrate SCSA’s plan and includes messages from the group’s Board of Directors to kick off its 25th season of shipping fresh citrus to the U.S.

About Summer Citrus from South Africa (SCSA)

Summer Citrus from South Africa represents a group of South African citrus growers who consolidate their logistics, marketing, and sales efforts to bring the finest citrus fruit to market during the U.S. summer season. Established in 1999 and re-branded for expanded marketing efforts in 2016, the group provides Navels, Midknights, East Peelers, Star Ruby Grapefruit and Cara-Cara oranges for the U.S. market. For more information about Summer Citrus from South Africa, visitwww.summercitrus.com and visit the brand’sFacebook,Instagram andTwitter pages.

Read more »

California Shippers Increasing Avocado Shipments Due to Weather and Demand

By |

Mexican avocado volumes have plunged resulting in greater demand California product, according to a weekly update by California Avocado Society.

The Ventura-based non-profit reported a 15% increase in California avocado yields two weeks ago, with field quotes rising about 25% in the past two weeks.

With this, California avocado field prices are the highest they’ve been all season. 

Higher temperatures are urging producers in southern California to harvest more heavily, and the organization projected a 13-14 million pound harvest for the first week of July.

Late season Mexican avocado imports amounted to only 25 million pounds, and the more ripe fruit quality shortens its shelf-life. 

This has left the U.S. market needing more, but shipments from California and Peru remain too low to supply the growing demand.

As theFourth of July approached, the industry had low inventories, which were below 50 million pounds. 

The imbalance in the market may require several weeks to right itself, the non-profit says.

“The…crop was unable to fill the gap left by the Mexican sector, because it wasn’t released for export to the U.S. until this week. Jalisco’s Mendez crop also was released for export this week,” California Avocado Society said in a release. 

As for varieties, GEM-brand from Westfalia has slowed as its season winds down. Lamb Hass is catching this good pricing window just as harvest ramps up. 

Mexico’s supplies are expected to bounce back in a few weeks.

Read more »

Volume Increase is Forecast for Chilean Citrus

By |

Following the recent frosts and rains in Chile, the Citrus Committee of the Chilean Fruit Exporters Association (ASOEX) has revised its export projections for the 2023/24 season. The Committee estimates that Chile will export 348,000 tons of citrus, 30% more than last year, but three percent lower than the previous estimate made in May of 2023. 

Comments Juan Enrique Ortúzar, president of the Chilean Citrus Committee, “The frost damage to citrus was quite limited, but there are some sectors of orchards that suffered damage, mainly in the O’Higgins region.”

Regarding the rains, Ortúzar assures that the effect on citrus, in general, is positive. “Even though harvesting had to be stopped for a few days, we now have a guarantee of some water supply for this winter when irrigation canals must be cleaned. There were some orchards that suffered flooding because they were in low-lying areas, but nothing major.”

The first estimates this April indicated an export volume for Clementines of 55,000 tons, 125,000 tons for mandarins, 95,000 tons for oranges, and 75,000 tons for lemons.  In May, the Mandarin volume estimate was updated to 135,000 tons. The latest projection indicates a small increase in Clementine volume to 58,000 tons and a decrease for mandarins to 125,000 tons. The orange estimate remains unchanged, while lemons have decreased to 70,000 tons.

Manager of the Chilean Citrus Committee, Monserrat Valenzuela, points out that “the estimated volumes will always have some fluctuations due to external factors such as weather conditions, freight costs, logistics, market issues, etc.” She also emphasizes that the Citrus Committee is committed to “updating estimates throughout the season so that customers around the world can receive accurate, timely information and adjust their programs accordingly.”

The Committee has a work plan (frost action manual) to prevent the export of frost-damaged fruit. This includes the installation of thermographs in the orchards and the temporary suspension of harvesting in the affected orchards or sectors until the fruit is checked and it is confirmed that it complies with the corresponding export tolerances, says Valenzuela.

Volumes through week 25

As of Week 25, (Week of June 19), clementine exports had reached 51,474 tons, which is 76% more than the same period of the 2022 season. Mandarin shipments are just starting, with 59 tons exported so far this season. Chile has shipped 11,014 tons of oranges, 45% more than the same period last season. Lemons are the only category with a slight decrease in season-to-date shipments, with an exported volume of 14,287 tons, a five percent decrease from last year.  

Read more »