Archive For The “News” Category
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.
Exports of Chilean avocados to all destinations will rise about 30% in the 2024-25 marketing year, the USDA reports.
In its annual report on Chilean avocados, the USDA Foreign Agricultural Service said due to favorable climatic conditions in the country, avocado production is expected to total 200,000 metric tons in the marketing year from July 2024 to June 2025, a 33.3% increase from the previous season.
The report forecasts Chilean avocado exports in the marketing year 2024-25 at 116,000 metric tons, a 29.8% jump compared with 2023-24.
Chile harvests avocados year-round, but peak export months are typically October and November.
Chile’s avocado area planted in 2024-25 will top 81,000 acres in 2024-25, a 1% gain from 2023-24, according to the USDA. The planted area spans from the Coquimbo region in the northern part of Chile to the O’Higgins region in the central-south part of the country, the report said.
Hass is the main avocado variety produced in Chile, however, hass is sensitive to frost and excessive soil humidity, which limits its cultivation to hillsides and well-drained soils, the report said. Other avocado varieties produced in Chile in smaller quantities include edranol, negra de la cruz, fuerte and bacon.
In 2023-24, Chile’s top export market for avocado was the Netherlands, followed by Spain and the United Kingdom. Buying 4,800 metric tons, the U.S. ranked eighth as a market for Chilean avocados in 2023-24, the report said.
So far in the 2024-25 marketing year, the USDA Market News Service reports that U.S. imports of Chilean avocados topped 5,290 metric tons through early December, up 19% from the same time a year ago.
Peru became the third-largest exporter of Brazil nuts—also known as Amazon nuts—last year, following Bolivia and Germany, according to the Global Economy and Business Research Center of the Exporters Association (CIEN-ADEX).
Peruvian shipments totaled $30 million in 2023, accounting for 12.4% of the global total, despite a 17.8% drop in demand. Bolivia ranked first with a 47.5% share of shipments ($115.4 million), while Germany, acting as a re-exporting country, took second place with 14.8% ($36 million).
The CIEN-ADEX commercial report indicated the global Brazil nut market shrank by 28.8% in 2023, with a total value of $229 million.
Germany solidified its position as the world’s largest importer, accounting for 17.2% of all imports ($39.5 million), followed by the United States ($37.7 million) and the United Kingdom ($21.5 million).
Between 2019 and 2023, shipments decreased by an average of 3.2% due to excess stock in key destinations and changing consumption trends, which led to reduced demand and falling prices.
Claudia Solano Oré, manager of agroexports at the trade association, highlighted the recovery of Peru’s Brazil nut industry, noting that exports totaled $34.6 million between January and October 2024, reflecting a 29% increase compared to the same period in 2023 ($26.8 million).
“As of October, exports have already surpassed the total recorded for the entire previous year,” she added.
Solano also emphasized the importance of signing phytosanitary protocols by the Ministry of Agrarian Development and Irrigation to initiate exports of Brazil nuts and other products to China, a market expected to grow in importance with the opening of the Chancay mega-port.
The commodity reached 46 countries. South Korea led the ranking with $9.66 million, reflecting a 21.8% increase and accounting for 27.9% of the total. The United States followed with $7.78 million, a 23.5% rise, representing 22.5% of total exports.
The top ten destinations also included Spain, Germany, New Zealand, Turkey, Lithuania, the Netherlands, the United Kingdom, and Greece. For the first time, exports were made to Belarus, Croatia, Uruguay, and Guatemala.