FourKites, a Chicago-based transportation visibility company and Food Shippers of America have released the results of a survey of more than 115 industry leaders about logistics challenges in the food and beverage supply chain.
Results, according to a news release, reveal that the three biggest challenges facing the food shipping industry are:
Labor and talent management (49%)
Transportation capacity issues (39%)
Supply and demand planning disruptions (35%)
Shippers indicated that COVID-19’s impact on labor (56%), over-the-road capacity constraints (44%), port delays and congestion (30%) and changes in consumer behavior or buying patterns (22%) have all disrupted operations and created or worsened challenges, the release said.
Since the pandemic began, more than 30% of respondents reported they have seen a drop in customer loyalty, while 55% have seen a sales decline or miss due to product shortages, according to the release.
About three of four who responded to the survey said they are “concerned” or “very concerned” that rising inflation and geopolitical uncertainty will negatively impact sales during the fourth quarter of 2022, according to the release.
According to recent FourKites data, the 28-day average food and beverage shipping volume is down 1% year-over-year, compared to a nearly 10% decline in shipments for all other industries, the release said. The 28-day average percentage of food and beverage deliveries delayed has remained stable throughout the year, hovering around 27.5%.
“Food and beverage shippers have contended with a lot lately, as the industry has been more affected by product and material shortages than most, and for goods that are in demand year-round,” Glenn Koepke, FourKites general manager of network collaboration, said in the release. “Those who have navigated supply chain disruptions the most successfully are companies that have leaned heavily on technology and collaboration to identify and address issues before they snowball into major events.”
The food supply chain is investing in technology and automation, the survey said.
“If we’ve learned anything over the past couple of years, it’s that disruption is going to be continuous, and we need to have visibility throughout our supply chain,” Melissa Wreath, senior director of account management at ArrowStream, a foodservice supply chain technology, said in the release. “FourKites allows us to have a real-time understanding of where things are throughout the entirety of the network. Without it, you’re continuously playing catch-up.”
A whitepaper about the survey is available from the FSA website.
Supplies of some California winter vegetables, lettuces in particular, were tight for Thanksgiving, but availability was good on others, and volume overall should increase by Christmas.
Ocean Mist Farms of Castroville, CA report the lettuce shortage started as the Salinas season was completed.
Salinas was described and being “…a rough end to the season,” with severe virus problems in the Salinas Valley.
F.O.B. prices for 24-count cartons of romaine lettuce were in the $80 range in early November, according to the USDA. A year earlier, they were less than half that.
Ocean Mist began sourcing lettuce out of Yuma, AZ, just prior to Thanksgiving week.
Boskovich Farms of Oxnard, CA report disease problems with California celery as well.
The Nunes Co., of Salinas notes volume for broccoli and cauliflower could be down due to cooler than normal weather. The company transitioned to its Arizona and Mexico desert growing areas in early November.
Despite the gloomy outlook for some items, growers were optimistic about other commodities.
Progressive Produce LLC of Los Angeles has positive news noting there are plenty of holiday staples like potatoes, onions and asparagus available, with good quality.
Progressive Produce sources from Colorado, Washington, California and Idaho during the winter.
The Nunes Co. will ship 40 conventional and 30 organic products this fall and winter. Its core items include organic and conventional romaine, iceberg and leaf lettuces, cauliflower, broccoli and celery. Celery, broccoli and cauliflower shipments are especially good during the holidays.
Coastline Family Farms of Salinas will continue to ship full line of over 25 products this season, including iceberg lettuce, broccoli bunches and crowns, cauliflower, naked and sleeved celery, romaine cartons, romaine hearts, green and red leaf lettuces, green onions and a full line of bunching items.
The company began shipping from the desert in Yuma the first week of November with iceberg and romaine lettuce. Its other vegetable items come of Brawley, CA in the Imperial Valley, which started started right after Thanksgiving.
About 75% of Ocean Mist Farms’ winter volume comes from California’s Coachella Valley, Munger said, and 25% comes from Yuma.
The transition to Coachella from the Salinas area took place by the third week of November for most items.
Ocean Mist is the largest artichoke grower in North America, although the company also ships 30 other items, including broccoli, Brussels sprouts, cauliflower, celery, leaf lettuces: iceberg, romaine, romaine hearts, yellow and green leaf lettuce, spinach; and some specialty items like anise and escarole.
Boskovich Farms of Oxnard is shipping onions, radishes, kale, romaine hearts and beets from Mexico. The company also grows parsley, cilantro, spinach and celery year-round in Oxnard.
During the past three decades Chile was the primary supplier of fruit to the U.S. market, and this success has attracted more competition.
Chile accounted for 41% of U.S. import grape value from September 2021 through August 2022, up from 39% for the same period in 2021 but down from 64% in 2015 and nearly half of its 76% share in 2000.
For berries, excluding strawberries, Chile accounted for 9% of total U.S. imports in 2022, down from 14% in 2021, 21% in 2015 and 11% in 2000.
Chile represents 20% of U.S. citrus imports by value in 2022, unchanged from 2021 and about the same as in 2015.
In 2022, Chile commands big market share advantages for U.S. imports of cherries (53%), plums (91%), peaches (98%) and apples (52%). For pears, Chile accounts for 18% of U.S. import pear value in 2022.
Chile accounts for 24% of U.S. kiwifruit imports, down from 26% in 2021 and off from 41% in 2015.
For the upcoming season, the Chilean Blueberry Committee, with the consulting firm iQonsulting, has estimated export volume of 98,228 tons of fresh blueberries from Chile for the 2022-23 season, down about 8% compared with last year. Shipments to the U.S. began in October and will continue through February.
Chilean cherry shipments to the U.S. began the last week of October and will increase, continuing into February, according the Chilean Fresh Fruit Association.
Chile is the world’s largest exporter of cherries, shipping 77.8 million boxes around the globe last year. The South American country projects cherry exports to the U.S. will have substantial growth in 2021-22, with nearly 13,000 metric tons expected for the U.S. market this season.
Fowler Packing Company of Fresno, CA with backing from Ag Partners Capital, has acquired SunWest Fruit Company, a citrus and tree fruit grower in Parlier, Calif. This acquisition will add over 10,000 acres of premier farmland in coveted water districts to Fowler Packing’s holdings, according to a news release.
“Given the significant headwinds facing California agriculture, we are constantly evaluating how we can better support our retail partners, consumers, and employees,” Justin Parnagian, chief executive officer said in the release. “This is the largest acquisition in Fowler Packing’s history and represents a historic moment for our family-owned company.”
The acquisition of SunWest Fruit is part of Fowler Packing’s long-term strategic plan to strengthen the company’s position in the citrus category and California agriculture by growing total mandarin volume, expanding citrus offerings, and increasing packing capacity. Fowler Packing has thoughtfully grown and expanded over the course of its 72 year history, becoming one of the largest farming companies in the state.
What’s more, since Fowler Packing’s Peelz launch in 2019, the mandarin brand has experienced sustained growth, gained market share and increased sales in the last year by over 60%. The Peelz brand is sold in more than 12,000 stores throughout North America, according to the release.
Following two disappointing years, Texas citrus is expected to rebound this season, although it certainly will not be setting any records.
Texas Citrus Mutual reports for the 2022-23 season, growers are expecting a strong harvest after two years stymied by extreme weather which included a hurricane one year and a freeze another year.
Lone Star Citrus Growers is a family-owned, conventional grapefruit and orange packing shed based in Mission, Texas. The company hopes to have 80 percent of a normal crop a year from now, which would be the 2023-24 season.
While no official numbers are being reported as yet, Texas’ Rio Grande Valley had about 2 million 85-pound boxes of oranges in 2019 and around 1.5 million boxes in 2020. Grapefruit shipments were about 5.7 million 80-pound boxes in 2019 and 4.9 million cartons in 2020. Around 40 percent of both oranges and grapefruit go to the fresh market.
Bakersfield, Calif. – Sun World International LLC (Sun World) announced it has added three importers to its panel of North American licensees. These include GrapeMan Farms, Pacific Trellis Fruit and Sierra Produce. The appointments further expand the company’s panel of licensed importers to 17 companies.
GrapeMan Farms, Pacific Trellis Fruit and Sierra Produce join a select list of Sun World licensed importers in North America, including Camposol Fresh USA, Capespan North America, Dayka & Hackett, Dole Fresh Fruit Co., Divine Flavor International, Fresh Flavor International, Jac. Vandenberg, Southern Fruit Import Co., Star Produce, Summit Produce, North American Produce Buyers, The Oppenheimer Group, Vanguard Direct, and William H. Kopke Jr., Inc. Each of these companies holds a license to distribute and market Sun World’s full line of proprietary grapes in the United States and Canada from licensed Chilean, Peruvian, Brazilian and South African suppliers.
The licenses include the right to import fruit from existing and new varieties developed by Sun World, marketed under the company’s powerful brands, such as AUTUMNCRISP®, MIDNIGHT BEAUTY®, SABLE SEEDLESS®, ADORA SEEDLESS®, and SCARLOTTA SEEDLESS®.
“We are pleased to appoint these extraordinary importers, to further bolster our presence in the global fruit trade,” said Garth Swinburn, Vice President of Licensing for Sun World. “We’re confident that providing further access to our proprietary fruit varieties will allow our licensed growers to maximize their revenues while increasing consumer exposure to our table grapes and related varietal brands,” he added.
Grapeman Farms is a vertically integrated grape grower-marketer based in Bakersfield, California with a proud history of providing premium quality grapes for nearly 50 years. With offices in Arizona, California and New Jersey, the company has established a multinational operation, sourcing the finest quality of product from Chile, Peru, Mexico and California.
Pacific Trellis Fruit established in 1999 and headquarter in Los Angeles, CA with sales offices in Fresno, CA, New Jersey and Arizona is one of North America’s top year-round importers, growers, and marketers of premium fresh fruit, including grapes, peaches, plums, nectarines, cherries, and citrus. The company partners with growers from Peru, Chile, Brazil, Spain, Mexico, and California to provide a 52-week availability of quality grapes to our customers.
Sierra Produce is an importer, marketer, and shipper of fresh fruit products sourced nationally and globally. The company has over 35 years of fruit import experience with long standing and diverse grower/exporter relationships and are committed to providing an assortment of both abundant volume and the latest innovative varieties available.
Sun World International LLC is a global variety development and licensing business. Sun World’s mission is to drive the growth of fruit breeding, varietal development, licensing and agricultural technologies. The California-based company has a network of licensed growers and marketers and maintains offices in the United States, Europe, Australia, South America, Israel, North Africa, and South Africa.
The 2022-23 Michigan apple crop is shattering shipping records.
Riveridge Produce Marketing, Inc., Sparta, MI, reports it has surpassed its all-time production record by 20-25%. The grower/shipper packs more than half of Michigan’s fresh apple crop and has a presence in all but one of Michigan’s apple producing areas.
In August the Michigan Apple Committee announced a crop estimate of a whopping 29.5 million bushels. This is 10 million more bushels than in the 2021-22 season. Michigan apple growers produced 15.6 million bushels last year, according to the USDA. Informal estimates now place 2022-23 volume at about 34-38 million bushels!
Riveridge reports this banner season is especially good news because it follows three consecutive disappointing Michigan apple crops. Part of the reason the 2022-23 crop was so good is that the trees had not been stressed by large crops for a long time. It was a strong bloom and fruit set. This year, Michigan apple trees were tight on maturity, with the fruitlets on the trees ranging in maturity within three to five days. Some years that span can vary by two weeks.
Riveridge’s apple marketing position is stronger because of a short crop in the Pacific Northwest. The company plans on filling those voids.
A strategic move for Riveridge is growing apple varieties and strains wanted by consumers. Galas and Fujis are key varieties for Riveridge. A lot of the apple industry that has focused on expensive, proprietary varieties, which the company believes has confused many consumers.
The USDA formally authorized the export of avocados from the state of Jalisco in Mexico, to the U.S. last July. This is allowing the expansion of operations for some grower-shippers and helping to bolster supplies.
Mexican avocado imports contributed a record $11.2 billion to the U.S. economy in the 2021-22 growing season, according to a recent report from Texas A&M University.
The trade organization Avocados from Mexico of Dallas, TX has said “the sky is the limit” when describing potential growth of the Mexican avocado industry. Avocados grow year-round in the Mexican state of Michoacán, providing a steady supply. And with the addition of the state of Jalisco to the import program, there are even more avocados available for U.S.
Seald Sweet of Vero Beach, FL notes the approval of the Jalisco area has significantly changed its avocado business.
The company has partnered with Las Tarascas, a family-owned company that has grown produce in Mexico for more than 20 years. The two companies have aligned with providing sustainable and high-quality product to the U.S. market with a direct line to the grower and product.
While avocados from Jalisco still represent a modest contribution to the U.S. supply chain, they may help to break records in the future. Seald Sweet projects it will import a record amount of avocados this year.
“Pears are a healthy and nutritious selection for the whole family that can be enjoyed a bit longer, when stored properly,” says Jim Morris, marketing manager at Pear Bureau Northwest. “Simply move your ripe pears to the refrigerator to extend their life 3-5 more days. With food prices on the rise, choosing produce that keeps and that offers a nutritious bang for the buck is all the more important.”
Pears rank higher than almost any other fruit when it comes to dietary fiber, with 6 grams or 21% of the recommended daily value in just one pear. Fiber aids in gut health and supports bowel regularity. Fiber-rich diets can also help in the prevention of various conditions and diseases, such as heart disease and some types of cancer.
Further, pears contain other essential nutrients, such as vitamin C and potassium. These compounds are vital for normal metabolism, tissue repair, proper immune function and protection from infectious diseases.
How to Store and Ripen Pears Pears are among the few fruits that don’t ripen on the tree. Rather, they reach maturity when stored at room temperature. This makes pears a perfect choice for decorative fruit bowls or weekend produce shopping that will last throughout the week. To determine when a pear is at its juiciest, USA Pears suggests to “check the neck.” If a pear yields when gentle pressure is applied with a thumb to its neck near the stem, then it’s ripe and ready to eat. Once ripe, pears can be stored in the refrigerator to slow aging and extend the fruit for a few more days.
To learn more about the health benefits of pears and explore recipes, visit USAPears.org.
About USA Pears The Pear Bureau Northwest, promoted under the brand USA Pears, was established in 1931 as a nonprofit marketing organization to promote and develop markets for top-quality fresh pears grown in Washington and Oregon. The organization represents nearly 900 grower families and 50 packers and shippers. Combined, Washington and Oregon are the nation’s largest pear producing region. They produce approximately 88% of all fresh pears grown in the United States, and more than 96% of all winter pears (non-Bartlett varieties such as Bosc and Anjou). They also account for 92% of America’s fresh pear exports.
California and Arizona citrus growers got off to a strong start in October and forecast a good performance for the 2022/23 season, predicting strong volumes of large fruit this winter.
USDA reports last season was down about 19%, but citrus growers in California and Arizona are optimistic. The California and Arizona citrus crop is anticipated to rebound from 2021/22’s off season.
Sunkist Growers of Valencia, CA reports this past season, California citrus had a shorter crop with most varieties. It is looking forward to a new season. Shipments of California-grown Sunkist Navel Oranges started in November, alongside the exceptionally large pummelo and Sunkist California Mandarins, followed by cara cara oranges, blood oranges and minneola tangelos.
Sunkist anticipates peak citrus volumes by January with all varieties.
At shipper/packer Bee Sweet Citrus of Fowler, CA, the company is citing larger-than-average navel oranges registering higher-than-normal Brix levels for this this time of year. The San Joaquin Valley operation notes citrus volume in California is slightly up compared to the 2021/22 citrus season, while Florida’s harvest is down substantially.
While Florida Department of Agriculture’s early estimates of the total crop damage for the state’s citrus region totaled over 80% of acres impacted, because Florida produces a very small segment of the overall fresh citrus market, Bee Sweet Citrus believes Florida’s hurricane impact will have a minimal effect on the California shipments.
