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Fresh Produce Sales Remains a Key Factor at Retail Stores

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 A global survey of consumers shows that shoppers across consider fresh foods a very important component in shopping decision.

A survey of shoppers in 58 countries across the globe revealed that fresh food continues to play an increasingly important role in the shopping decisions of most consumers.

The Nielsen Shopper Trends Survey was conducted in 58 countries around the world covering 54 markets including 87,000 respondents.  The survey was conducted online or with face-to-face follow-up in home interviews.

“Fresh foods continue to maintain healthy sales contributions at retail. In fact, fresh foods can comprise between 30-60 percent of total food, grocery and personal care expenses on average, depending on country and type of fresh product,” the report states

Asian shoppers head consumption while USA. shoppers were at the bottom as fresh foods constitute about 30 percent of grocery sales in America.

Shoppers around the world generally listed “good value” as one of their top three reasons for shopping a specific store for their fresh foods. Over half (52 percent) of respondents to the 2012  survey said that rising food prices affect their purchasing of fresh foods.

Consumers listed a variety of reasons why they shop at a specific retailer, with the top 10 drivers being enjoyable shopper experience; one-stop shopping; well-stocked inventory; good value for the money; pleasant store environment; excellent customer service; wide variety of products; high-quality fresh food; wide range of fruit and vegetables; and high-quality premium brands.

Globally, fresh food is a high-traffic builder as the average shopper heads to a market 2.5 times per week to buy fresh foods. Shopping trips are most frequent for the sub-category fruits and vegetables sector at an average of 3.2 times per week.

The survey found that convenience is the number one reason for shopping at a certain place in the United States. Americans shop for fresh foods less frequently than other respondents, but fresh foods are continuing to gain greater traction.

Fresh produce represents about one-third of all fresh food sales in the United States, surpassed only by meat,  but besting bakery, deli and seafood categories.

Nielsen researchers project by 2016, the traditional grocery store will have a 64 percent market share of fresh food retail sales. That will represent a 2 percent drop from 2012. During that four-year period, market share of fresh food sales for supercenters will rise 1 percent to a total of 15 percent, while warehouse and club stores will see a 2 percent increase in their market share of the category to 12 percent.

Tthe Nielsen report states that “fresh is increasingly growing in non-grocery channels as a greater availability and assortment of fresh products across retail channels respond to consumer demands.  Savvy retailers understand that consumers want the option to choose fresh foods anywhere, and they are fighting for the fresh share of wallet.”

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Northwest Produce Shipments are Significant

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IMG_6909Northwest cherry growers expect a 2013 crop of 18 million boxes to be shipped, well short of last year’s record 23 million boxes.

Shippers from Washington, Oregon, Idaho, Montana and Utah released their crop estimate last week.  Washington is the largest shipper fresh cherries, with an expected crop of 14 million boxes.  A box of cherries weighs 20 pounds.

Shipment of cherries should get underway in early June around the Columbia River, with peak loadings taking place in the Northwest prior to the Fourth of July.

Northwest cherry shipments are expected to be similar to 2011 when the five states shipped about 18 million boxes.

Apples

Before the 2012-13 Washington state apple shipping season ends in July or August, 132,245,000 truckload equivalents of apples should have been hauled.  Sure, some of that fruit will go by rail, but it is trucks carrying the bulk of the loads.

On average, the Yakima and Wentachee Valleys are currently shipping about 3,000 truckload equivalents of apples each week.

Potatoes continue to be a big mover, especially out of Idaho, which has more russet potatoes this season than it knows what to do with.  Idaho is loading around 1,800 truckload equivlents of spuds each week.

Washington’s Columbia Basin and the adjacent Umitilla Basin in Oregon are providing loads of potatoes and onions.  However, both spuds and onions combined, do not come even near the volume of potatoes being shipped out of Idaho.

Idaho potatoes – grossing about $3500 to Cleveland.

Washington apples – about $6300 to Orlando.

 

 

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Feds Issue Exemption for Carriers Helping with Oklahoma Tornado Destruction

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IMG_5935Darrell L. Ruban, Federal Motor Carrier Safety Administration (FMCSA) Field Administrator, declared a regional emergency as of 10 a.m. EDT, May 21, 2013, for the state of Oklahoma following the May 20 tornado that cut a wide swath of destruction through the town of Moore and surrounding areas.

The declaration provides broad regulatory exemptions to CFR Parts 390-399 for truck carriers and operators providing emergency relief materials and services to Oklahoma customers. Drivers for motor carriers operating under the declaration must obtain and keep a copy of the declaration in their possession. Carriers, drivers and vehicles currently under an out-of-service order are not eligible for the exemption.

The declaration will be in effect “for the duration of the emergency or 15 days (June 5, 2013), whichever is less.”

In reply, refer to: MC-EFS-SV

 

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California’s Salinas Valley, Kern County are Providing Loads

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IMG_6576California is now shipping an astounding 7 million trays of strawberries per week, which should set another record for loadings by the time the season ends.  Most loadings are taking place from the Santa Maria area and the Watsonville district.

The Salinas Valley continues to ship a wide variety of vegetables.  Head lettuce loadings are providing the heaviest volume, averaging about 1,500 truckloads per week.  However, there’s lots of other items ranging from various types of lettuce, to cauliflower, broccoli, etc.

Kern County

This week most potato sheds should be hitting full production.   Shipments of fresh potatoes from the southern region of the San Joaquin Valley should continue into early July.

There has been a 10%-plus drop in acreage of reds, whites and yellow spuds.  More specifically:  whites are down 13%;  reds, as well as yellows are off 12%.  The nationally over produced (thanks primarily to Idaho)  russet acreage in Kern County is down a whopping 65 percent.

Russet acreage in Kern County has dropped to about 1,000 acres from a high of 12,000 to 14,000 acres about 20 years ago.

While Kern County shippers are predicting  enough transportation with trucks, rail, intermodal and Railex, they say it will be expensive.

Kern County potatoes and carrots – grossing about $5200 to Chicago.

Salinas Valley veggies – about $7300 to New York City.

 

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Eastern Produce Loadings will Soon Arrive

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While California is the top shipper of peaches, South Carolina and Georgia usually rank second and third, and not necessarily in that order, depending upon the season.

Peach shipments from South Carolina will get started by early June, usually a few days later than nearby Georgia.  However, it won’t be until good shipments come on several weeks later, you’ll have decent loading opporunities.  Peak loadings should come just in time for the Fourth of July.

Florida

An unseasonably cold March and disease could very well slash watermelon shipments from Central and South Florida by 50%.

Michigan

Western Michigan apple shippers apparently dodged the proverbial bullet last week, avoiding significant freeze damage, which would have been a scary repeat of a year ago, when most shipments were wiped out by the cold.  It appears there will be be good apple shipments when movement starts this summer.

Similar to 2012, Michigan growers have 36,500 acres in apple production this season.

Ontario

Asparagus growers in Southern Ontario have taken a hit as freezing temperatures took their toll on the crop recently.  Frozen asparagus has a clear appearance and spears will droop as it warms up and should not be shipped.  However, these plants will grow more spears.

Avocados from Mexic0Produce truckers this season have already picked up a lot of avocado at ports of entry along the Southern border.  Trucks have delivered nearly a million pounds of Mexican avocados to markets across the USA and Canada.  However, this is only the beginning.  Before the season ends later this year, a billion pounds of Mexican avocadoes will have been hauled to markets a cross North America.

 

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Hunts Point, New York City Fighting Continues with Lawsuit

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Last month the produce vendors at the Hunts Point Terminal Wholesale Market sued New York City, naming as a defendant the Business Integrity Commission, a law-enforcement agency that regulates public food markets and haulers and carters, among other industries. Known as BIC, the agency has long been a source of contention for the produce executives, who claim it oversteps its authority, according to Crain’s New York Business.

Hunts Point is the world’s largest produce wholesale market and thousands of 18 wheelers deliver fresh fruits and vegetable to the complex each week.

The lawsuit accuses BIC of defrauding the produce market and of being duplicitous because although the agency’s role is to root out corruption and remove employees who have ties to organized crime, it awarded a consulting contract several years ago to an obscure security firm whose principals had extensive criminal records. BIC required the market to pay the firm, Global Consulting, $100,000 to prepare a report on security procedures at Hunts Point, Crain’s reports.

Two years of negotiations between the city and the Hunts Point Terminal Produce Market over a new 30-year lease and a revamped facility have led to a dead end and a lawsuit. The two sides agree on only one point: They are at an impasse.

The last time any meaningful discussion took place between the market and the city, which owns the land at the 113-acre site, was in January. That’s when the market, operated by 41 merchants who are part of a cooperative, rejected the city’s offer to extend its lease by 10 years while it continued to work on a deal to renovate the 46-year-old facility.

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In-Transit Issues Part III – Trucking a Key Component in Quality Produce

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In this series we have been covering a number of issues and answers coming out of the study Comparison of Pallet Cover Systems to Maintain Strawberry Quality During Transport.

The study was conducted by the University of California, Davis and The University of Florida.

While a primary goal of the study is to find better ways to have produce with better quality and flavor delivered from the field to the kitchen shelf, transportation plays a key role in this.

Rich Macleod of TransFresh Corp. describes this as a “global process” where it must be considered that actions taken during the entire  handling process can influence even the best varieties of product that end up in the hands of the consumer.

“The study confirms my private belief, plus our private research over the years,” he says.  “If you do these processes correctly; cool it, transport correctly with good temperature control, with a CO2 atmosphere, you are going to deliver better fruit to the consumer.”

In the report, it details strawberry shipments with palletized loads covered with bags and carbon dioxide (CO2).  The transcontential shipments compared the modified atmosphere shipments of CO2 West, PEAKfresh, PrimePro and Tectrol (TransFresh).

The results of the study may show why Tectrol is the dominant supplier of bagged, controlled atmosphere shipments out of California.  Macleod says over half of the California harvested strawberries in California are shipped using the Tectrol process by TransFresh.  California also grows and ships the vast majority of the nation’s strawberries.

The summary of the study’s findings probably explains why many strawberries look great when shipped and still are beautiful when displayed in your local supermarket.  However, how many times have you purchased strawberries in the store and no sooner get home and notice quality problems occuring (a common experience with yours truely, the purveyor of this website)?

The study summarizes, “The Tectrol cover was sealed to the pallet base, a partial vacuum was applied, and pressurized CO2 gas was injected inside….CO2 concentrations within pallets at the beginning and end of transport were higher (11% to 16%) in the sealed Tectrol system and relatively low (.06% to .30% in the open CO2 West, PEAKfresh and PrimePro cover systems.”

Continuing, the report states, “The incident of fruit decay was low (1% to 1.4%) after transport, but increased substantially following a 2-day shelf life at 68 degrees.  However, fruit from the Tectrol pallets exhibited significantly less decay (36%) after shelf life than the CO2 West (39%), non covered (pallets)(41%), PrimePro (42%) and PEAKfresh (43%).” 

 (This is Part 3 0f 5, featuring an interview with Rich Macleod, vice president, pallet division North America for TransFresh Corp., Salinas, CA.  He has been with company since 1976, and has a masters degree in post harvest science from the University of California, Davis.)

 

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Food, Farming Alliance Blasts Activists over Pesticides

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Watsonville, CA – Last month the United States Department of Agriculture released its annual Pesticide Data Program Report.  Among the USDA findings– “U.S. food does not pose a safety concern based upon pesticide residues.”  In light of activist groups’ annual release of their re-interpretation of the USDA PDP report findings, the Alliance for Food and Farming (AFF) urges the media and consumers to read the government report to see firsthand what it actually says.

“Under the Obama Administration, the USDA and the Environmental Protection Agency clearly and concisely explain in the PDP report how the government and corresponding regulatory processes and systems are protective of all consumers, including infants and children,” says Marilyn Dolan, Executive Director of the AFF.  “However, some groups take these USDA PDP report findings, manipulate the data and turn a positive report about food safety into a negative one.  All we’re asking is that people actually read the USDA PDP report instead of the re-interpretation from activist groups, like the ‘Shoppers Guide to Pesticides in Produce’ and its ‘Dirty Dozen’ list.”

Further, independent scientists who examined the “Shoppers Guide and Dirty Dozen” list found that the methodology used to re-package the government data did not follow any established scientific procedures, that risk was not examined and therefore this list/guide should not be used when making purchasing decisions.  The most recent peer reviewed analysis of the “Shoppers Guide” methodologies appeared in the Journal of Toxicology.

“Manipulation of government data which unfairly undermines consumer confidence about the safety of produce is a detriment to public health, especially when American’s need to include more fruits and vegetables in their daily diets,” Dolan says.  “Families deserve factual, science based and balanced information about the safety of organic and conventionally grown fruits and vegetables, which the Obama Administration provided in the actual PDP report. Why read a questionable re-interpretation when you could just read the real report?” Dolan says.

The Alliance recommends that consumers who want to improve their health simply follow the advice of health experts everywhere and eat more of both organic and conventionally grown produce.

“For all of us involved in promoting better consumer health, increasing consumption of fruits and vegetables is among our main objectives.  The benefits of consuming plenty of fruits and vegetables are absolutely indisputable. Consumers should eat both organic and conventionally grown produce without worrying about minute levels of pesticide residues,” says Dr. Carl Keen, Professor of Nutrition and Internal Medicine at University of California, Davis.

Consumers who want more information on the safety of organic and conventionally grown fruits and vegetables can visit the safefruitsandveggies.com website.  This website was developed by experts in food safety, toxicology, nutrition, risk analysis and farming.  “We hope consumers visit this site and read, learn and then choose what foods are best for their families,” Dolan explains.

For consumers who may still be concerned about pesticide residues, they should simply wash their fruits and vegetables.  According to the Federal Food and Drug Administration, you can reduce and often eliminate residues if they are present at all on fresh fruits and vegetables simply by washing. “Washing is a healthful habit and should be used before eating either organic or conventional produce,” Dolan says.

The Alliance for Food and Farming is a non-profit organization formed in 1989 which represents organic and conventional farmers and farms of all sizes.  Alliance contributors are limited to farmers of fruits and vegetables, companies that sell, market or ship fruits and vegetables or organizations that represent produce farmers.  Our mission is to deliver credible information to consumers about the safety of all fruits and vegetables.  The Alliance does not engage in any lobbying nor do we accept any money or support from the pesticide industry.

Source: The Alliance for Food and Farming

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Loadings for Apples, Watermelons, Onions and Potatoes

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Apple shipments will remain good through the remainder of the season (late July) as about 36 million bushels of fresh-market apples, mostly in Washington state, remain in storage for shipping.  This is  about  21% more than last year at the same time.

The  21% figure also represents how many more apples remain to be shipped compared to  the 5-year average.  Less than 1 million bushels of apples remain to be hauled from other states besides Washington.

There was more fruit remaining in storages for all major apple varieties to be shipped compared to last year at this time.

Washington state apples – grossing about $6500 to New York City.

Watermelons

While watermelon shipments in Florida got underway in early May, it will be the end of the month before there is decent volume.  Weather and disease factors will reduce Florida melon loading opportunities this season…Both Texas and Arizona are loading watermelons, with good volume not arriving until around the Memorial Day weekend (May 25-27).

Sweet Onions

Looking ahead to the Northwest,  Walla Walla, WA growers have planted approximately 600 acres of the Walla Walla sweet onions this year, down  slightly from the 2012 season.   Sweet onion shipments should get going around  mid-June and running through mid-August.  In total, Washington state last year shipped non-storage onions from about 2,500 acres, up slightly from 2011.

Potatoes

Idaho continues trying to shed itself of another mammoth crop of russet potatoes.  The state is averaging nearly 1,700 truckload equivalents of spud shipments weekly, although a significant amount of this is moving by rail….Second heaviest potato shipments are currently coming out of the San Luis Valley of Colorado, where about 575 truckload equivalents are moving each week.

San Luis Valley potatoes – grossing about $1700 to Dallas.

Idaho potatoes – about $5525 to Boston.

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Produce Hauling from the Salinas Valley, San Joaquin Valley

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Between now and August produce truckers will have the upper hand when it comes to freight rates – assuming you don’t have contract rates (but that’s another story).

Not only are we nearing the peak shipping season from California, which accounts for about half of the nation’s fresh produce, but other areas, particularly in the upper mid-west and east are providing competition for trucks.

Caution Hauling Desert Items

Before I get into the Salinas and San Joaquin Valley shipments, use caution loading desert vegetables such as bell peppers and corn as temperatures well above 100 degrees have been occurring.  It’s been really hot in the Coachella and Imperial valleys, as well as Arizona’s Yuma district.  Little or no report of heat damage has yet been reported but keep your eyes peeled for scalding and other heat symptoms in the days ahead.  Even watermelons can suffer if prolonged heat occurs.

Salinas Valley

Dozens of different kinds of vegetables are being shipped from the Salinas area.  But the big volume items are various types of lettuce, broccoli, cauliflower.  There also is decent volume with brussel sprouts and celery.  Nearby Castroville is the artichoke capital of the world, while nearby Watsonville is ground zero for strawberry shipments.

San Joaquin Valley

This report will focus primarily on summer from from the SJV.  We’ll soon cover the many vegetables coming into volume.

Stone fruit, led by peaches, plums and nectarines, are just getting underway from the southern part of the valley.

The consensus appear to be that around 40 to 43 million boxes of stone fruit will be shipped this year from the San Joaquin Valley, which would be pretty average when looking at the volume for the past five years.

California cherry shipments are building and hitting good volume just prior to the Memorial weekend (May 25-27).  However, winds damaged 40 to 50% of the early variety Rainier cherries around Bakersfield on May 5th.

There also was some wind damage to almond trees in the Bakersfield area.

Last year, California shipped a record 101.5 milion boxes of grapes.  The Coachella Valley, which is shipping now, accounts for 10 percent or less of this volume.  The rest comes from the San Joaquin Valley, starting with the Arvin District in late June.

Apple shipments, which took at 30 percent hit last year, are expected to return to normal this year.  Beginning in July, California apple shipments get underway, but this is minor (2 million boxes) compared to Washington state  (129 million boxes predicted).

Kern District

Located near Bakersfield, Kern County ships a lot carrots and potatoes, althouigh this time of the year you will get a better freight rate hauling more perishable items ranging from lettuce to stone fruit, grapes and berries.

Kern County potatoes shipments started about a week ago.  Due to so much over production of russet potatoes around the country, this variety has been reduced by up to 75 percent.  Russets have been replaced primarily with red, yellow and white potatoes.

When Kern County growers are not planting carrots or potatoes in their fields, they use bell peppers as a rotation crop.  Bell peppers loadings are just starting and building in volume, continuing until November.

Salinas vegetables – grossing about $5200 to Chicago.

California desert vegetables – about $7300 to New York City.

 

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