Archive For The “News” Category
The Chilean Citrus Fruit Committee has reported that exports totaled 397,417 tons during the 2024 season, slightly down from 399,824 tons in 2023. This represents a moderate 0.6% year-on-year.
“The start of the 2024 season was impacted by drought conditions, especially in the Coquimbo region,” said the committee Executive Director Monserrat Valenzuela. She added that “the rains that came later in the season arrived after the typical start of the clementine harvest, which affected the yield of this variety.”
In Chile, clementines are grown across 9,884 acres with 70% of the total area in the northern Coquimbo Region, according to the Natural Resources Information Center (CIREN).
“There has been a recovery of lemon orchards following the 2022 frost,” Valenzuela noted, “which has contributed to an increase in export volumes.”
Markets and competition
The United States remained the leading market for Chilean citrus, with exports of 50,353 tons of clementines, 60,467 tons of lemons, 128,958 tons of mandarins, and 97,602 tons of oranges during the 2024 season.
Fruit guild Frutas de Chile highlighted Japan as another key destination, particularly for lemon exports.
“The United States is undoubtedly the main market for Chilean citrus. In the 2024 season, it received 98% clementines, 95% of mandarins, 93% of oranges, and 63% of lemons. Lemons also have a growing market in Japan and South Korea, which received 21,000 tons and 10,200 tons, respectively,” said Valenzuela.
Regarding competition, Chile faces strong challenges from South Africa, Australia, Argentina, Peru, and Uruguay.
“South Africa and Australia maintain a steady supply of high-quality oranges, while South Africa and Argentina also offer strong competition in lemons. Peru, with its easy-peeler varieties, is always a significant competitor,” Valenzuela explained.
“The need to explore new markets remains a challenge to prevent the U.S. from becoming a ‘monomarket’ for Chilean citrus,” added the executive director of the Chile Citrus Committee.
By Charlie Fabricant ALC Corporate
The United States has experienced an unprecedented increase in severe weather events, with 2023 accounting for the highest annual total of severe storms and one of the highest financial costs on record. Per the National Oceanic and Atmospheric Administration, regarding severe storms, i.e., storms that cost the country $1B or more, “The 1980–2024 annual average is 9.0 events (CPI-adjusted); the annual average for the most recent 5 years (2020–2024) is 23.0 events (CPI-adjusted).” It is estimated that 23% of all road delays can now be attributed to weather, directly costing the industry between $2 and $3.5 billion dollars annually, not even including rising insurance premiums and maintenance costs. The total economic loss associated with climate risk in supply chains will reach $120 billion annually by 2026. As shippers plan for uncertainty, what kind of logistics partner will they be able to trust to be as adaptable as the times demand? Let’s discuss.
The COVID-19 pandemic, and the supply chain collapse that went with it, emphasized the need for companies to add both resilience and flexibility to their business operations. The same lessons apply to the climate crisis. Traditional supply chains are already being disrupted, whether it’s due to drought conditions causing the Panama Canal to reduce shipments, more frequent and powerful hurricanes damaging both ports and roadways, or fluctuating temperatures and precipitation patterns making winter storms harder to predict. With an uncertain regulatory market and technological changes, the logistics world is looking at a significant shakeup.
Traditional wisdom has long heralded asset-based carriers for reliability and brokers for flexibility. However, as market dynamics change, so do long-held industry advantages. More and more shippers are shortening their bid timelines, acknowledging the increased market volatility over recent years. As mini bids take up a growing amount of total volume, carriers need to be able to adjust to constantly changing lanes and prices. Although brokers work with asset-based carriers to service our customers, they do not have the same large capital expenditures that make rapid operations adjustments difficult. As with everything in the transportation sector, collaboration is crucial, but as climate disruptions and regulations increase, brokers are better positioned to assist customers with sourcing resilient and flexible transportation options.
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Charlie Fabricant graduated from Vanderbilt University in 2021 with a double major in Economics and Human & Organizational Development with a minor in Environmental Sustainability. He joined the Nashville office as an undergraduate intern in 2021 and became a transportation broker along with the company’s Environmental, Social, and Governance (ESG) coordinator. In 2024, he was promoted to ESG programs manager.
charlie.fabricant@allenlund.com
Maersk has said that, even after the ceasefire agreement and the announcement from the Houthi organization to stop attacks on ships, the logistics organization will continue to avoid the Gulf of Aden and the Red Sea.
Although Yemen’s Houthis said they would limit their attacks on the Red Sea corridor to only Israeli-affiliated ships after a ceasefire, uncertainty and tensions remain high.
The Houthis announcement was sent to shipping companies and other organizations last week.
The Danish company said the safety of its crew, vessels, and cargo is an utmost priority and that it will continue to sail around Africa via the Cape of Good Hope.
“Returning to the area without fully ensuring safe passage could result in our networks needing to be adjusted again, which would prove complicated both operationally and indeed for supply chain management,” the company added.
They also announced that the Gemini Cooperation and their East West network started phasing in via the Cape of Good Hope as planned on February 1, 2025.
Mexico is currently experiencing extremely long border crossing delays into the U.S. at most entry points due to a scheduled customs system update this past weekend, according to Markon Cooperative of Salinas, CA.
In a press release, the company reports crossing delays began Monday, February 10, as Mexican customs agents began having problems generating documents as a result of the update. A contingency plan is in place to clear loads and cross shipments; however, the process is very slow going.
The result is long truck lines on Wednesday, February 12, with reports of trucks waiting as long as eight hours at South Texas points of entry. Expect late shipments into the McAllen, Texas, area this week, and in some instances, products arriving into U.S. warehouses a day late.
Outbound produce shipments in major points of entry cities, such as Nogales, AZ, and McAllen, TX, will be delayed for the rest of this week. It’s recommended to notify domestic carriers of potential delays in advance.
2024 began with moderate exports, but fresh mandarins from Peru experienced an increase starting in June, recording several months with results higher than those of 2023, according to Agraria.
Fresh mandarins from Peru reached 33 international markets throughout 2024, with the U.S. as the main buyer, representing 57 percent of exports. It was followed by Mexico, with a 10 percent share and the Netherlands, with 8 percent.
Shipments to the U.S. totaled 129,406 tons for $171 million, which meant an increase of 45 percent in volume and 61 percent in value compared to 2023. Likewise, the average price in this market rose to $1.32 per kilogram, which was 11 percent higher.
Last year, mandarin shipments reached 230,038 tons, for $300 million, which represented a growth of 19 percent in volume and 35 percent in value compared to 2023.
In addition, the average price of the product stood at $1.30 per kilogram, showing an increase of 14 percent compared to the previous year.
Mexico, for its part, stood out as the market with the greatest growth in the last year, with exports of 20,481 tons for $30 million, which represented an increase of 130 percent in volume and value compared to the previous year.
The Netherlands was in third place, acquiring 20,272 tons for $25 million, which represented a decrease of 16 percent in volume and 9 percent in value. However, the average price in this market rose to $1.25 per kilogram, 8 percent higher, partially mitigating the drop in purchases.
On the other hand, throughout 2024, nearly 100 exporters participated, with Consorcio de Productores de Fruta S.A. standing out as the main player (20 percent share). It was followed by Procesadora Laran S.A.C., with 15 percent; and San Miguel Fruits Perú S.A., with 8 percent. For their part, agro-exporters mostly chose DP World for their shipments, concentrating 40 percent of the total; followed by APM Terminals, with 27 percent; the Terminal Portuario General San Martín – Paracas, with 26 percent; and Terminales Portuarios Euroandinos, with 7 percent.
Peruvian fruit exports exceeded $6 billion in 2024, according to Agraria, citing the head of the Ministry of Foreign Trade and Tourism (Mincetur), Desilú León Chempén.
She noted blueberry shipments abroad exceeded $2 billion, while avocado shipments amounted to more than $1.3 billion. Regarding avocados, she pointed out it is a product that is positioning itself in different markets, and there are still more destinations to reach.
A large quantity of Peruvian grapes are being exported to Japan and China. New agreements are expected to be closed soon with Indonesia and India.
Peruvian exports reach the destination markets with very important quality certifications.
With the inauguration of the Chancay megaport, Peru has an enormous opportunity, she said, which considerably reduces travel time.
“The first shipments have already left, which have taken 23 days to reach Asia, that is, a saving of 14 days in the transfer of our fresh products,” she said.
Since its founding in 1986, Agristo has been supplying customers across Europe andbeyond. The company continues to expand within Europe to meet growing demand in the European markets, while also strengthening its European export position through investments in Belgium (Wielsbeke) and France (Escaudoeuvres). The European market for frozen potato products has seen steady growth, but this increase requires a significant boost in production capacity. Given the large consumption volumes in Europe, even small growth percentages in the market demand substantial expansion in production capacities.
The same growth trends are evident in the North American markets of frozen potato products, where demand is rising faster than in Europe, and consumption volumes are higher. In selecting production locations, Agristo has consistently focused on two key criteria: availability of raw materials (potatoes) and sufficient market scale for its private label segment. Seeing strong potential in both potato supply and market growth in North America, Agristo is now ready to invest in its first production facility in the United States, focusing on high-quality products, innovation, and state-of-the-art technology.
After years of extensive potato trials in various U.S. states, Agristo has identified Grand Forks, North Dakota, as the ideal location for its new facility. The company is confident in the region’s high-quality potato farming and is collaborating with local authorities to prepare an industrial plot and enhance logistical connections to reach Agristo’s U.S.-based clients. Once negotiations are finalized, Agristo plans to invest up to $450 million in a cutting-edge production facility. This investment is expected to create 300 to 350 direct jobs in North Dakota and will stimulate indirect investments in agriculture and supply chain, boosting local and regional economies.
Agristo wishes to express its sincere thanks to all those involved in this project, and the company is confident that this investment will positively impact local communities throughout the Midwest, while at the same time strengthening Agristo’s North American and global position.
Negotiations for the plant’s construction are ongoing, with the aim to finalize agreements by mid-2025.
Alico, Inc., of Fort Myers, FL has announced a strategic transformation to become a diversified land company with each of its properties now expected to create profitable agricultural revenue opportunities that are not citrus-related until the Highest and Best Use (“HBU”) for these acres can be realized, according to a press release.
Alico owns approximately 53,371 acres of land across eight counties in Florida, as well as approximately 48,700 acres of oil, gas and mineral rights in the state. Alico Citrus, which holds the Company’s citrus production operations, has faced increasing financial challenges from citrus greening disease and environmental factors for many seasons.
The Company has decided to not spend further capital on its citrus operations after the current crop is harvested in 2025. It will focus its resources on creating new opportunities for profitable growth while also acting prudently on behalf of shareholders.
Alico expects to maintain its commitment to the Florida agriculture industry through diversified farming operations on nearly all its land holdings following this citrus production transition. Alico also expects to entitle certain parcels of its land for commercial and residential development. The Company believes these strategic decisions improve its ability to provide investors with a greater return on capital that includes the benefits and stability of a conventional agriculture investment, with the optionality that comes with active land management.
“For over a century, Alico has been proud to be one of Florida’s leading citrus producers and a dedicated steward of its agricultural land, but we must now reluctantly adapt to changing environmental and economic realities. Our citrus production has declined approximately 73% over the last ten years, despite significant investments in land, trees and citrus disease treatments, and the current harvest will likely be lower in volume than the previous season.
“The impact of Hurricanes Irma in 2017, Ian in 2022 and Milton in 2024 on our trees, already weakened from years of citrus greening disease, has led Alico to conclude that growing citrus is no longer economically viable for us in Florida,” said John Kiernan, Alico’s President and Chief Executive Officer.
“This difficult decision is expected to provide Alico with a more stable future while maintaining our deep roots in agriculture by meaningfully reducing our working capital requirements for annual citrus production, reducing financial volatility and allowing the Company to focus on profitable non-citrus agricultural opportunities and entitlement work to achieve the HBU for all properties in our real estate portfolio.”
Alico plans to wind down Alico Citrus’ primary operations, which will include reducing most of its citrus production workforce effective immediately. The Company expects that approximately 3,460 citrus acres will be managed by third-party caretakers for another season through 2026.
Mr. Kiernan continued, “This strategic transformation is expected to provide Alico with a more stable future while maintaining our deep roots in agriculture. We recognize the personal impact this decision has on our valued employees and the Company is supporting them through this transition. Through these operational changes, Alico will remain a responsible corporate citizen and steward of both our land and communities, just as we have done for more than 125 years. For decades, while maintaining its agriculture leadership, Alico has opportunistically sold land in Florida for responsible purposes that benefit both the local communities and our shareholders, such as the approximately 40,000 acres of the Alico Ranch that were sold to the State of Florida since 2017 and the 760 acres of land donated in 1992 to establish Florida Gulf Coast University. We’ve explored all available options to restore our citrus operations to profitability, but the long term production trend and the cost needed to combat citrus greening disease no longer supports our expectations for a recovery. Alico thanks our entire Alico Citrus team for their unwavering dedication, hard work, and perseverance. Despite our collective efforts, Alico believes that this strategic decision is not only correct but essential. We remain committed to creating opportunities that will maintain our legacy of stewardship while also acting prudently on behalf of our shareholders, including working with local municipalities to develop plans that will benefit their Florida communities.”
Under this new strategy, Alico:
- Expects to recognize positive cash flow for the remainder of the current fiscal year once land sales that have already been negotiated close, severance and restructuring costs are realized, and harvesting activities conclude.
- Anticipates that cash reserves at the end of the 2025 fiscal year will be sufficient to meet future operating expenses for at least two additional years without any additional land sales being required.
- Estimates that approximately 75% of its current land holdings are likely to remain agriculturally focused for the foreseeable future.
- Expects that approximately 25% of its land holdings have near- and long-term potential for commercial and residential development, with approximately 10% of its acres targeted for development within the next five years.
- Management estimates that the value of our current landholdings could be worth approximately $650 million to $750 million, with 75% of these acres valued for agriculture usage.
About Alico
Alico, Inc. currently operates two divisions: Alico Citrus, currently one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. While Alico Citrus will cease operations after the 2024/2025 harvest due to environmental and financial challenges, Alico remains committed to Florida’s agriculture industry, and will focus on its long-term diversified land usage and real estate development strategy. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
The recent California wildfires have left a haunting mark on our communities and hearts. At the Allen Lund Company, headquartered in La Cañada Flintridge, our employees experienced this devastation firsthand. Between the Palisades and Eaton fires, many of our team members (and family and friends) faced mandatory evacuations as the fires blazed through the surrounding cities, threatening homes, beloved restaurants, and landmarks that have long been central to our lives. Entire neighborhoods have been reduced to ash, and the impact is felt in every corner of our community. Families are displaced, cherished memories lost, and the collective sense of security is shaken.
Yet, amid the destruction, we’ve witnessed incredible resilience and humanity. Neighbors helping neighbors, first responders risking everything to save lives, and countless acts of kindness remind us of the strength within our community. The transportation and logistics industry plays a critical role in ensuring resources like food, water, and building materials reach those in need. Together, we are not just moving freight but helping rebuild lives.
As we look to the future, we focus on coming together to heal and rebuild. The fires may have destroyed physical structures, but they cannot extinguish the spirit of our community. At the Allen Lund Company, we are committed to supporting our neighbors, customers, and team members as we navigate this recovery together. Whether through donations or simply showing up for one another, we know that unity is the foundation for rebuilding stronger than ever.
Between January and November of last year, Peruvian fresh blueberry exports set a new record.
Agraria reports for the first time, an agricultural product has surpassed the $2 billion mark in exports. Those exports totaled $2.1 billion in the first eleven months of 2024. This far surpassed the $1.72 billion reached during all of 2023. This signaled a return to the normal trend in the production of “blues” after weather related problems of the previous year.
This year, with stabilized production, the higher prices recorded after the 2023 shortage showed a downward trend, reaching levels closer to 2022.
In November 2024 alone, Peruvian fresh blueberry exports totaled 80,311 tons for $387 million, reflecting an increase of 106 percent in volume and 18 percent in value compared to what was reported in the same month of the previous year, although with a 43 percent drop in the average price, which stood at $4.82 per kilogram.
The Peruvian product reached 31 countries in November, of which the U.S. continued to be the main destination, with 41,269 tons exported for $190 million. This represented 49 percent of the monthly total with a 75 percent increase in volume, but a 10 percent drop in value compared to November 2023, when shipments reached $210 million.
The average price suffered a decrease of 48 percent, going from $8.92 in 2023 to $4.61 this year.
Among the main exporters to this market were Camposol S.A., with a 12 percent share, and Agrovisión Perú S.A.C., with 11 percent. In 2023, the leaders were Agrícola Cerro Prieto S.A. (13 percent) and Hortifrut – Perú S.A.C. (12 percent).
As for shipments, these were mostly sent by sea, where 41 percent of what was exported in November was through Euroandino Port Terminals, followed by DP World (28 percent), APM Terminals (25 percent) and the General San Martín Paracas Port Terminal (5 percent).
The remaining 1 percent was sent through Jorge Chávez International Airport.