While the amount of California grapes in storage on the West Coast was significnantly higher than the precious two seasons, the figure has now come down and is much closer to last year.
As of Oct. 31 there were 11.3 million boxes of inventories according to the USDA’s Grape Cold Storage Summary. This is up 8% from the 10.5 million boxes recorded at the same time last year.
The figure is also down 17% from the 13.7 million boxes registered at the end of October in 2020.
By contrast, at the end of September there were there were 10.9 million boxes in storage, which was up 18% over the figure recorded at the same point in the 2021 and 2020 seasons.
DALLAS — Imports of Mexican Hass avocados continue to make substantial contributions to the U.S. and Mexican economies according to the latest economic contribution analysis conducted by Texas A&M University1 during the 2021-2022 growing season. Since 1997, the avocado supply from Mexico in the U.S. has jumped to more than 2 billion pounds annually1, and more than 4 billion pounds in the last two years alone2 – fueled by consumers’ love of the healthful fruit while also positively benefiting U.S. national and state economies.
The economic analysis1 identifies numerous contributions from U.S. imports of Mexican Hass avocados to the U.S. economy as avocado trades move through the food supply chain and stimulate various market activities. The contributions include:
$11.2 billion in economic output
$6.1 billion to the U.S. GDP (value-added)
58,299 U.S. jobs
$3.9 billion in labor income
$1.3 billion in taxes
“The new data is a testimony to the positive impact the trade relationship between the two countries can have on the overall economies,” said Ron Campbell, Executive Director of the Mexican Hass Avocado Importers Association (MHAIA). “The analysis by Texas A&M University clearly shows how the collaboration between the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and MHAIA is contributing not only to the economic growth of both nations, but also to a localized impact within communities through added jobs, labor income and taxes.”
When comparing results from previous years, this new report reveals the persistent growth and importance of Mexican avocado imports to the U.S. economy. The contribution to total U.S. output increased nearly 560% from $1.7 billion in 2012 to $11.2 billion in 2022. At the same time, the contribution to U.S. GDP (value added) has increased by nearly 410% from $1.2 billion in 2012 to $6.1 billion in FY 2022. The contributions to U.S. labor income, U.S. tax revenues, and employment from 2012 to FY 2022 have also registered dramatic increases3 (465%, 665%, and 418%, respectively).
“The avocado import growth is attributed to two factors – dramatic growth in U.S. demand for avocados and equally dramatic growth in U.S. import supply,” said Dr. Gary Williams, Emeritus Professor at Texas A&M University. “U.S. per capita consumption of avocado fruit has grown to more than 9 pounds1 and promotion programs like Avocados From Mexico have been instrumental in increasing avocado consumption in the U.S.”
The growth of Mexican avocado imports has also had a positive impact on growers in the U.S. and Mexico. The Texas A&M University analysis shows domestic avocado growers have benefited from higher price points and a larger market for their products. In Mexico, avocado farming continues to be a feasible and reliable business venture as the Mexican avocado industry creates approximately 78,000 direct and permanent jobs and more than 300,000 indirect and seasonal jobs, with more than 30,000 growers and 74 packers.
“It’s rewarding to see the economic impact Mexico’s strong partnership with the U.S. has had in meeting the ever-increasing demand for Avocados From Mexico. This partnership has become an economic engine that supplies the growing demand for avocados in the U.S. and opens opportunities for small avocado farmers in Mexico that allows them and their families to thrive,” said Alvaro Luque, CEO of Avocados From Mexico (AFM).
Avocados From Mexico represents a unique collaboration between the two countries: AFM is a non-profit marketing organization that brings together the Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) to promote the consumption of Mexican avocados in the U.S. This has helped fuel the United States’ love for the avocado fruit and builds a bond which benefits both countries economically.
This partnership also benefits consumers. Through AFM, consumers receive healthful avocados that are the freshest, arriving from Mexico in three to five days, and are the highest quality product, with every avocado exported to the U.S. meeting strict dry matter testing requirements. The dry matter test ensures avocados in the U.S. have an adequate oil percentage, which provides the fruit with optimal consistency and delicious taste. The microclimate, volcanic soil and timely rainfall of Michoacán, Mexico, allows avocado trees to bloom year-round in Michoacán, the only region sending Hass avocados to the U.S. 365 days a year. Now, with the recent addition of avocados from the Mexican state of Jalisco, the industry’s ability to meet year-round demand of avocados in the U.S. is further enhancing. Hass avocados now comprise about 95% of all U.S. avocado consumption and are the most widely available1.
A deep dive into all facets of the Mexican avocado industry is available at the Avocado Institute. The one-stop digital resource was created by the parent organizations of AFM, the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and Mexican Hass Avocado Importers Association (MHAIA).
About Avocados From Mexico
Avocados From Mexico (AFM) is a wholly-owned subsidiary of the Mexican Hass Avocado Importers Association (MHAIA), formed for the purpose of advertising, promotion, public relations and research for all stakeholders of Avocados From Mexico. Under agreements, MHAIA and the Association of Avocado Exporting Producers & Packers of Mexico (APEAM) have combined resources to fund and manage AFM, with the intent to provide a focused, highly- effective and efficient marketing program in the United States. AFM is headquartered in Irving, Texas.
1 2022 Update: The Economic Benefits of U.S. Avocado Imports from Mexico This analysis utilizes the Impact Analysis and Planning Model (IMPLAN) to measure the jobs, revenues, wages and taxes generated by the imports along the value chain on the national and state economies. IMPLAN is an input-output model of the entire U.S. economy that captures the relationships between industries and estimates the economic effects (direct, indirect, and induced). The IMPLAN model reports on four specific types of economic effects: employment contribution, labor income, value-added, and output or gross sales contribution. 2 Hass Avocado Board Volume Data 3 Economic Benefits of the Expansion of Avocado Imports from Mexico, February 2014
Dutch company Rabobak reports U.S. 2022 cherry imports are set to reach the highest volume in more than a decade. With some of November and December still ahead, and expected increasing volumes from Chile, imports are likely to rise in the fourth quarter.
U.S. imports of fresh cherries increased 50% through August. On that note, imports from Chile “showed an uptick of 131% year-on-year, with record volumes in January and February 2022,” the report said.
On the other hand, cherry shipments from Canada increased by 8%, marking its highest volume since 2015.
The availability of fresh cherries in the U.S. has increased at a compound annual growth rate (CAGR) of about 3% over the past half decade to roughly 1.3 pounds per person per year (589 grams), as per USDA calculations.
According to USDA figures, about 36% of U.S. households have purchased cherries within the past twelve months. The likelihood of purchase increases as the primary household buyer is older and as a household’s annual income is higher.
For example, the estimated likelihood of purchase is 29% for households with an annual income between USD 25,000 and USD 50,000, while it is 43% for households with an annual income over USD 100,000.
In terms of ethnicity, the report stated that the likelihood of purchase is higher for Asian and Hispanic households, at 45% and 41%, respectively. The same source also reports that the probability of purchase tends to be higher in the western and northeastern U.S.
Lower U.S. production
Regarding domestic production, the report states that shipments of U.S. fresh cherries to the domestic market in 2022 were down 36% year-on-year. The primary reason for the decline in production was cold spring weather in the Pacific Northwest, according to the release.
This impacted pollination and the early stages of fruit development. As a result, the season started later than usual, which created a significant gap in U.S. grown cherries, particularly during weeks 22-26 of 2022.
In May, during the California season, exports were within the range of recent years, the report said. June and July, however, saw considerable declines. Thus, through August 2022, U.S. exports were down 45% year-on-year, with significant declines in all major destination markets.
Sweet Valley Citrus Region – A heavy crop of Satsuma mandarins from the Sweet Valley Citrus Region are maturing and will begin shipping about two weeks ahead of the 2021 season. “The 2022 crop looks great,” exclaimed Kim Jones, current president of Cold Hardy Citrus Association. “Color break has been early, brix is already testing as high as 11 which indicates exceptionally sweet, flavorful fruit, and we predict the volume to be higher than anticipated.”
Satsumas are an easy-to-peel, medium to large size mandarin variety, and are seedless. While not always uniform in shape and color (some green tinge is normal), the fruit is always exceptionally fresh, sweet and flavorful.
The Sweet Valley Citrus region covers a tri-state zone throughout North Florida, South Alabama and South Georgia. These growing areas share unique soil and weather that make Sweet Valley Citrus so exceptional. The Sweet Valley Citrus Region represents a resurgence of Southern citrus groves and is a great success story for American agriculture. This area was not effected by recent storms, including hurricane Ian, which had more of an impact on groves in Southwestern Florida.
All Sweet Valley Citrus is grown on local family farms, tree-ripened, and shipped daily from farmer-owned packing facilities. Satsuma labels grown in the area include grower brands such as Southern Sassies, Southern Juicys and Cherokee Jewel. Non-branded packaged and bulk fruit is also available.
“Satsumas are an early winter delight and consumer favorite for the holiday season,” said Mark Clikas Vice-President of the Cold Hardy Citrus Association. “We started shipping in early November, with full production available through December and possibly into January.”
The special growing conditions in the Sweet Valley region are perfect for other varieties of citrus too, and Sweet Valley Cara Cara oranges, along with Tango, Kishu and Shiranui mandarins, will be shipping November to mid-January as well.
About Sweet Valley Citrus The Sweet Valley Citrus region spans a tri-state zone throughout the North Florida, South Alabama and South Georgia. These growing areas share unique soil and weather that make Sweet Valley Citrus sweeter and more flavorful. All citrus varieties, including Sweet Valley’s famous Satsumas, are grown on local family farms, tree-ripened, and shipped daily from farmer-owned packing facilities.
The Sweet Valley Citrus brand was created by the Cold Hardy Citrus Association, a 501(c)(5) organization established in 2017 to ensure all producers in the region have a unified voice in an emerging industry, and to provide education on best farming practices. Members include growe
Trucking recession? According to a recent Bank of America survey, demand for trucks is actually down 58%. Consumers are spending less money on material items such as televisions and clothing and instead funneling more of their hard-earned funds towards services, reports the U.S. Bureau of Economic Analysis. Kantar’s Entertainment On Demand streaming analytics reveal streaming subscriptions are up 88% since the beginning of 2022. More people are using companies like DoorDash and Grubhub for food delivery. Meanwhile, electricity prices are expected to climb on an average of 20% across the United States this winter and natural gas costs are predicted to increase 36% according to the U.S. Energy Information Administration, presumably further leading to less discretionary spending on material items. What does this mean for the trucking industry?
Our industry is all about supply and demand. The latest data from S&P Global Market Intelligence shows freight rates have continued to fall as global trade volumes slow due to shrinking demand for goods. Freight rate forecasters utilizing the Cass Index have indicated that “freight rates are leveling off and set to slow sharply in the months to come.” So yes folks, we are truly in a trucking recession. Thankfully, with 70% of all goods in the United States moved by the trucking industry, this will eventually resolve. The last recession hit in 2007 and lasted almost two years.
So where do we go from here? Federal investment in our country’s roads, highways, and bridges over the next four years will make it easier for trucks to make on-time deliveries. Drivers will likely see their lives improved by programs like our innovative ALC tracking app, which creates an easier flow of information and allows better estimating on loading and unloading times once they reach shippers or receivers. In addition, our app supports better tracking and provides us with an easily accessible timeline of how the customer’s load is progressing.
Transportation of produce and other refrigerated items leads to even higher rates, partially because of increased fuel usage during wait times for loading and offloading, as the load must be kept at a precise and constant temperature. In addition, wait times are frequently increased when produce coming fresh from the field needs time to cool or produce coming off the truck must undergo quality inspections. Situations such as these increase the amount of fuel the truck requires to keep the reefer running, causing the rates for produce transportation to soar higher than rates to transport non-perishable goods.
With many trucking companies struggling due to the harsh conditions of the current market, company mergers are coming more into play. More trucking companies will likely move in this direction in 2023 if the market does not improve. This would allow more companies to stay afloat, instead of lessening the amount of trucks on the road. Continued urbanization will also allow truckers to traverse parts of the country that were previously off-limits, allowing deliveries to reach more people in less time. There will always be peaks and valleys as we ride this trucking rollercoaster, so buckle up, pull down the lap bar, and hang on for dear life because it is going to be a bumpy ride.
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Kenneth Cavallaro, Jr. is a Senior Transportation Broker in the Boston office. He began his career at the Allen Lund Company in February of 2019. Kenneth has been in the transportation industry since May of 1999. He holds a Bachelor of Arts in Communications from Salem State University.
The North American Potato Market News (NAPMN) recently forecasted North Dakota and Washington as the only two states that will have significant increases in potato shipments this fall. The report shows North Dakota’s production to be up 1.8 million hundredweight (cwt.) and Washington’s production to be up about 6 million cwt. Harvested acres are expected to be up significantly in both states.
The national scene is much different however, NAPMN is forecasting U.S. production at 402.1 million cwt. which would be down about 7.7 million cwt. compared to 2021. Idaho is forecast to lead all states with the largest decrease in production; down 11.9 million cwt. compared to last year. Idaho planted 290,000 fewer acres to potatoes this spring.
Wada Farms Marketing Group of Idaho Falls, ID concluded its potato harvest several weeks ago, with quality looking very good for the 2022/23 season.
It has acreage similar to last season, with yields a little higher. Quality is reported very good, although sizing of the crop is a mixed bag depending on what field they came from.
Wada Farms has been a family-run company for over 80 years, and grows more than 30,000 acres, of which about a third of that is in potatoes.
The company started with russets but has added colored potatoes, chippers and other specialty potatoesl as well as organic potatoes.
Wada Farms is monitoring its crop and shipping schedule to have supply until next crop becomes available in August of 2023. With limited supplies, a strong market is seen all season. There will be a lot of outside factors that the potato industry will have to contend with such as fryers and dehydrators and what they may do to upset the market.
The port of New York and New Jersey, following a historic flux during August, jumped to the first place as the U.S. busiest shipping port, CNBC reports.
The publication notes that container processing totalled a combined volume of 843,191 TEUs between imports and exports. However, the East Coast gains have led to congestion in Savannah, Houston and NY/NJ.
Kevin O’Toole, chairman of the Port Authority, told the outlet: “We are exceeding pre-Covid numbers. Our planning with rail to complement the actual infrastructure and the dredging are allowing this added capacity that would not have happened four or five years ago.”
This comes as the flow of trade continues to move away from the West Coast with logistics managers worried about a labor strike or lockout.
“While volumes are up, the congestion at the East Coast ports may be at an inflection point after months of record-breaking import levels,” Josh Brazil, vice president of supply chain insights for Project44, toldCNBC.
The Port of Los Angeles ranked third in August, moving 805,314 total containers. That was 37,877 less than the Port of New York and New Jersey, which moved 843,191. The Port of Long Beach came in second, moving 806,940 export and import containers.
November 2022 has been proclaimed as Arizona Leafy Greens month by Arizona Gov. Doug Ducey, acknowledging the industry’s abundant production in the state.
November also marks the beginning of the lettuce and leafy greens shipments in the state, which considers itself the winter lettuce capital of the U.S., providing lettuce and leafy greens from November to March, according to a news release.
During the 10 years of the annual observance, Arizona farmers have produced more than 90 billion servings of lettuce, the release said. The state’s farmers grow about 25% of the annual U.S. lettuce supply, according to USDA statistics.
Arizona’s leafy greens farming community creates a $2 billion economic impact annually.
The family-owned grower-shipper Fruit World of Reedley, CA has announced several bright spots in their 2022-23 citrus season in a season that has been difficult for many citrus growers,
Fruit World is expecting a large volume of high-quality organic lemons throughout their year-round program, with volumes peaking from mid-October through February. This year’s crop is even stronger than it was in 2021, which was also above average.
To ensure a steady year-round supply, the company grows in California’s desert region through March before transitioning to the Central Valley. This year’s volumes are also supported by several young blocks that kicked into production this season.
Fruit World’s flagship mandarin program started in late October and will continue into early May with organic mandarins available from mid-November through early May.
Conventional and organic mandarin volumes are both up from the 2021 season but are still down from typical yields. Extreme heat and irregular precipitation are the greatest challenges facing the industry this year, and growers have been pivoting as quickly as possible to adapt. Overall quality is strong, and a sizable portion of Fruit World’s conventional crop will be transitioning to organic in the 2023-2024 season.
Stem and leaf mandarins are seeing increasing shipments each year, and Fruit World has been building their program to meet the rush of popularity particularly during the holiday season.
Plentiful supplies are availble including Thanksgiving, Christmas, and Lunar New Year.
The company has also begun shipping the popular organic Rio Red grapefruits, known for their gorgeous interior color, fantastic flavor, and superb quality. Volumes and fruit size are down slightly compared to last season, but supply is still anticipated to be on par with a standard season and able to meet consumer demand into January.
Rounding out the organic specialty citrus program, Fruit World’s Sweet Limes are seeing increased interest.
The classic lime freshness paired with sweetness make this variety perfect for refreshing juices, bright salad dressing, and sweet treats. Good volumes are anticipated through mid-December.
As part of a continued growth strategy for the Fruit World brand, the company has brought several new grower relationships online in the past year, which are expected to make a positive impact on this year’s citrus season.
Navel oranges, which are experiencing 15% to 20% lighter volumes industry-wide will actually end up with an increased supply for Fruit World over last year, thanks to more growers. Likewise, Fruit World welcomed the next generation of growers for Cara Caras from an up-and-coming grower family who are eager to convert the crop to organic.
The brand is also continuing to forge ahead with new product lines—exciting additions like mandarinquats, kumquats, and their newly-planted lemonade lemons.
