Author Archive

California Strawberry Shipments to Slow Down Due to Cold

By |

Those string of cold nights in California around January 10-15 should not adversely affect strawberry shipments from the state.  That’s the good news.  The bad news for produce haulers is, like so many other crops, strawberry volume is pretty light this time of the year.

Growers in Ventura County and the Santa Maria distrist implemented frost protection measures, keeping the damage to a minimal.  There was use of wind machines, spraying strawberry fields with water and, in some cases, helicopters hovered above the crop to mitigate damage.

One major strawberry shipper, California Giant Inc., reports its shipments could be reduced by 15 percent due to freeze damage to its crop.

Temperatures are expected to return closer to normal in the second half of January.  Meanwhile, the shipping gap on strawberries is expected the week of January 21.

On a higher note, fruit that is scheduled for shipping the busy Valentine’s Day period should benefit from the cold, because of the stage of dormacy the plants were in during the weather.  This should make the plants hardy when it is time for picking.

Growers in Ventura County and the Santa Maria District who did not protect crops and suffered damage will likely be set back up to four weeks.

Southern California strawberries and other produce – grossing about $4700 to Atlanta.

 

Read more »

9% More Potatoes have been Loaded So Far this Season

By |

Potatoes certainly are not the exotic item in the fresh produce industry for hauling, but they are safer to haul than most fruits and vegetables.  Rates can be exceptionally low of potatoes that are competing against many other produce items in high volume farming areas when the competition for trucks is keen.

However, spuds can look pretty darn attractive to a trucker in dire need of a load, or in more remote areas where there is less compettion from other produce items or dry freight.  This “hardware” item” also is more hardy, resulting in less quality issues – at least most of the time.  This time of the year volume on many produce items is lower, if not existant than at some other times.

For those people investing in potatoes to make money at the farming end, it often is feast or famine.  Too many years, overproduction of potatoes leads to low prices and investors losing money.  However, every few years when those folks tire of losing money, the crop acreage is reduced and those remaining potentially hit some big time profits.  The next thing you know, investors see the big profits and figure they can joint the “fun.”

This is one of those year when too many potatoes are out there – which means more loading opportunities for truckers.

The current potato crop is estimated to be at least 12 million hundred weight (cwt) than a year ago.   There have been about nine percent more potatoes already shipped this season compared to the last one.  The biggest percent of increases have come from the Red River Valley of North Dakota and Minnesota, as well as from Oregon and Wisconsin.  However, when talking sheer volume, no one comes close to Idaho, which ahs already shipped 1.5 million more cwt. than a year ago.

Idaho potatoes – grossing about $4200 to Atlanta.

Wisconsin potatoes – about $2850 to Dallas.

Grand Forks, ND potatoes – about $1800 to Chicago.

 

Read more »

California Freeze, Damage, Cold will Reduce Produce Loads

By |

After  five nights of freeze warnings produce truckers will now have to wait and see not if there was damage to citrus they would otherwise haul, but how much damage.   Citrus growers in California’s San Joaquin Valley are starting to assess damage to mandarins and lemons.

It the fourth night of the freeze (Jan. 13) before temperatures plunged into the low- and mid-20s.  That is too cold for wind machines and watering to protect some crops from frost.  The anti-frost action were able to raise the temperature to 29 degrees F, which is high enough to protect navel oranges.  However, a 32-degree freeze can cause freeze damge to mandarins.  The freeze resistance of lemons is between those of mandarins and navels.

At this point, at least it seems the freeze damage will be much less severe compared to frequent freezes last year and in 2007.   Higher sugar levels in the crops,due to a mostly mild winter this season, also should help to protect against the cold.

Citrus groves  in Ventura and Riverside counties should be spared damage because they are closer to the Californias coastline.   While celery loadings from Ventura county are expected to be slowed by the cold weather, no freeze damage is expected.

Overall, no matter where shipments in California originate, expect volume to be lighter than normal, more erratic and somewhat  unpredictable for the next couple of weeks. 

Expect a similar situation from the Arizona desert around Yuma, as well as for Mexican produce crossing the border at Nogales.

San Joaquin Valley produce – grossing about $6000 to New York City.

Read more »

California Freeze Update; Outlook for Other Produce Shipping Areas

By |

 

California’s San Joaquin Valley may have dodged the proverbial bullet relating to freezes that occurred being late last week, before a warm up started on Monday, January 14.   The weather could eventually affect loading opportunities in the valley for produce haulers.

There was a rainstorm that hit parts of the valley, which  created a potential for ice mark on mandarins and  navel oranges, but this will take time before showing up.  San Joaquin Valley navel oranges are about 25 percent  harvested.  There is not word yet on possible damage to lemon, vegetables and other items.

Meanwhile cold weather has slowed shipments of desert vegetables from California’s Coachella and Imperial valleys, as well as from the Yuma district in nearby Arizona.  Also adversely affected are West Mexico vegetables crossing the border at Nogales, AZ.  This product is normally moving into peak volume at this time.

The overall cold temperatures in the West have not only temporarily reduce produce volume, but has resulted in rate decreases as more refrigerated equipment has become available.

Sweet Potato Shipments

The leading states which ship sweet potatoes are North Carolina, California, Mississippi and Louisiana.  Total volume for this season is about 26.5 million hundredweight (cwt), which is down only about two percent from 2011.

While the total USA sweet potato acreage of 126,600 acres is down two percent, higher yields from exisiting acreage actually mean there is one percent more product for hauling.

Southern California produce – grossing about $4200 to Chicago.

Sweet potatoes from Eastern North Carolina – about $1500 to Atlanta.

 

 

Read more »

Apple Loads Remaining are Above Those of a Year Ago

By |

Apples are one of the most consistent produce items for hauling on a year around basis.  It can be storage of many months, allowing shippers to only order a truck when there is a buyer for the product.  Apples are hardy and usually pose fewer problems as far as quality is concerned.  That reduces your chances of claim or load rejection.

During the cold winter months, apples are not subjected to the whims of mother nature such as those faced by vegetable row crops an citrus.  Here is a overview of apple loading opportunties, which is mostly in Washington state.

Despite severe crop losses from weather in Michigan and New York, huge crops in Washington state, and to a lesser degree in Pennslvania means plenty of volume for shipping through the end of the season in late summer.

Shipments of eastern apples were pretty much finished by the New Year, with the exception being in Pennsylvania.  Rice Fruit Co. in  Gardners, PA had a record crop and expects to continue shipping into early summer, which is normal.

As of January 1st about 90 million bushels of fresh-market  apples remained to be shipped, which is 10 percent more than last year at the same time.  That January total is  11 percent higher than the five-year average.

The amount apples remaining to be shipped are all up compared to a year ago for all five major varieties.  Those varieties are fujis, red delicious, galas, golden and granny smiths.

Washington state, Yakima Valley apples – grossing about $5,500 to New York City.

 

Read more »

California Produce Loads Could be Affected by Freeze

By |

If you are looking to load produce out of California’s San Joaquin Valley, you’ll need to pay attention to the weather as a damaging freeze is possible beginning tonight (Friday, January 11th) through Monday night (January 14th) and potentially even into the middle of the week.

The low temperatures are particularly possible from Tulure county southward to Kern County, but might even happen in Madera and Fresno counties.

The freeze could be especially harmful to vegetable items and citrus.

The weather guessers are still doing just that – guessing, but it has produce growers getting out their wind machines in case of a worst case scenario.  Depending upon which weather forecast you believe, temperatures could hit the low to mid 20s.

Damage depends upon how low the temperatures drop and for how many hours those temps stay below freezing.

Anyway, this is a heads up for produce haulers in California looking for loads in the days ahead – particularly in the San Joaquin Valley.

Read more »

Hunts Point Says No Deal Reached To Stay In NY

By |

A story by by Joshua Burd of NJBiz  states  Hunts Point Terminal Produce Market today called a news report wrong that said a tentative deal had been reached for the market to stay in New York City, rather than move to New Jersey.

Thousands of refrigerated big rigs deliver fresh fruits and vegetables to the South Bronx facility each week.

“At our board meeting on Tuesday, January 8th, our board voted to reject an offer from the City of New York to modify the current lease extension terms at our location in the Bronx. A Crains.com story from Tuesday afternoon has incorrectly indicated that the co-op has reached a ‘tentative’ agreement with the city in regards to this offer to modify our lease extension terms. This is not true,” Robert Leonard, a spokesman for the market, wrote in an email to NJBIZ this afternoon.

New Jersey officials also seemed baffled by the news report. “Our understanding is that Hunts Point’s board did not accept New York’s proposal, which means their location decision is still unsettled and New Jersey is still in the game,” said Lt. Gov. Kim Guadagno through a spokesman. “I look forward to continuing to work together with Hunts Point to persuade them New Jersey is a great alternative to their cramped and outdated facilities in the Bronx.”

Crain’s New York Business reported Tuesday that the co-op and the city had reached a tentative deal to keep the market in the Bronx for at least a decade. The story quoted a co-op representative, who apparently spoke before the board meeting, plus unnamed sources. The market’s board of directors still had to vote on the agreement at a formal meeting, the report said.

To read the rest of the story, check out: NJBiz

Read more »

Report States Fresh Fruit Is Top, Fastest Growing Snack In USA

By |

Report States Fresh Fruit Is Top, Fastest Growing Snack In USA

Chicago — Fresh fruit is not only the top snack food consumed in America, it is also one of the fastest growing, according to new snacking research from The NPD Group, a leading global information company.  NPD’s recently released Snacking in America report finds that growing concerns about health and eating right are contributors to the increasing popularity of fruit as a snack.

One of the reasons that fruit holds the top snack position is that it’s eaten throughout the day resulting in its inclusion in more snack occasions than other snack foods, according to NPD’s Snacking in America report, which examines attitudes and behaviors about snacking as well as snack selection drivers.  During the two-year period ending March 2012, fresh fruit was consumed as a snack in 10 more snack occasions a year than chocolate, the next top snack food, and 25 more occasions a year than potato chips, the third most popular snack food.

NPD’s snack research finds that consumption of snack-oriented foods is motivated by different needs:  health and weight, hunger satiety, on-the-go/convenience, routine/habit, cravings, and a treat/reward when watching TV, visiting friends or other social activities. Fresh fruit ranks #1 in five of the six needs states — health and weight, hunger satiety, convenience, routine/habit, and satisfying a craving.

Another factor contributing to the popularity of fresh fruit is that it is a favorite snack among all ages, according to the Snacking in America report. Consumers 65 and older eat the most fruit, followed by children under 12. Teens, ages 13 to 17, eat the least amount of fruit but their consumption increases as they get older.  Another aspect of the fruit consumer, other than their age, is the type of snacker they are. Healthier snack consumers snack more often between meals and eat a wider variety of healthy snacks, and fruit is the top go-to snack for these consumers.

“Taking the who, what, when, and where of fresh fruit consumption into account, the point to be made is that fresh fruit is a top-of-mind snack with most consumers,” says Darren Seifer, NPD food and beverage industry analyst. “Among the opportunities this trend presents to producers and produce retailers to market and merchandise fruit around the activities during which it is most likely to be eaten, usage can be expanded with packaging innovation and promotions for on-the-go activities when it’s least likely to be consumed.” 

About The NPD Group

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, entertainment, fashion, food / foodservice, home, office supplies, sports, technology, toys, video games, and wireless.  For more information, visit npd.com.

Source: The NPD Group

Read more »

National Produce Shipments Returning to Normal After Holidays

By |

Shipments of fresh fruits and vegetables from around the USA are returning more to normal following the Christmas and New Year’s holidays.

Imports Chilean grapes on the east coast, led by ports at Wilmington, NC and at Philadelphia are down 33 percent from this time a year ago.  This is primarily do to the crop running later than last season, plus decreased production.  Imported grapes are increasing slowly, but good volume problably will not occur until the end of January…..January 28th is the date for the end of an extension for negotiations relating to a longshoremen’s strike, which was put on hold.  A strike would hit East Coast ports from Baltimore to the Gulf Coast, accounting for about one-half of the imports into this country…..Meanwhile, Chilean grapes arriving at Long Beach, CA by boat are off nearly 22 percent so far this season.

Looking at Washington state, the best loading opportunities are from the Yakima and Wenatchee valleys with apples and pears.  About 2,000 truckload equivalents of apples are being loaded per week.

Washington’s Columbia Basin and the nearby Umatilla Basin in Oregon are continuing shipments of potatoes and onions, but with much less volume than fruit.

In South Texas, steady loads of grapefruit and oranges are available from the Lower Rio Grand Valley, with cabbage available from the Winter Garden District, just south of San Antonio…..However, the best volume is with Mexican broccoli, carrots, watermelons and other items crossing the border in South Texas.

Texas produce – grossing about $3,000 to Chicago.

Washington state apples and pears – about $6,000 to New York City.

 

 

Read more »

Vegetable Prices Rise Faster Than Other Foods

By |

Vegetable prices have been more than twice as volatile as the average of all other food purchased since 1990, according to a new U.S. Department of Agriculture report.

The December USDA Economic Research Service Vegetable Outlook report said the standard deviation for annual change in vegetable prices is 3.7 percent, compared 1.2 percent for food at home.

Fresh vegetables are particularly volatile and have trended higher than overall food prices since 1990.  Between 1990 and 2011, fresh retail vegetable prices rose by 113 percent, significantly higher then the 71 percent higher prices for the typical grocery shopping basket. The annual average change in retail fresh vegetable priced is 3.8 percent since 1990, compared with 2.8% for all food purchased for home consumption.

For 2012, fresh vegetable volatility has been reflected in sharply lower prices compared with year ago levels. Mild winter weather in Florida and other winter vegetable growing areas created a bumper crop and lower prices in early 2012 and prices since then have stayed reasonable. The latest food price forecast by the USDA projects the 2012 annual change in fresh vegetable prices at up to 5.25 percent lower, compared with a 5.6 percent increase in 2011 and 2 percent higher prices in 2010. The USDA projects 2013 fresh vegetable prices will resume their long term rise and increase 4 to 5 percent.

By comparison, fresh fruit prices are forecast to rise about 1 percent this year, compared with a 3.3 percent rise in 2011 and a 0.6 percent decline in 2010. For 2013, fresh fruit prices are forecast to increase up to 4 percent.

While seasonality, fluctuations in demand, and shifts in production can create volatility, the unpredictability of weather makes forecasting fresh vegetable prices the most prone to error.

Read more »