Archive For The “News” Category
By Isabella Silva, ALC Marcom
A harsh reality of climate and economic twists is unfolding in the heartland of Mexico, where a colorful abundance of strawberries and avocados usually flourish. The country is painted with the struggles of a severe drought, hurricane surprises, and a resilient agricultural community striving to adapt to the shifting circumstances. I had the opportunity to interview Mark Santos, Manager of Santos International and TransKool Solutions, to hear firsthand how the economic climate in Mexico is affecting the year-round supply of produce coming into the United States.
“Mexico as a whole has been struggling with severe drought. Water shortages affected many commodities greatly across the board. The state of Michoacán, where the majority of strawberries and avocados come from, has felt the brunt of this,” stated Santos. “Then comes the irony of Hurricane Otis that went from a Category 1 to a Category 4 hurricane in less than 48 hours.” While the Zamora area, a significant agricultural region, escaped direct impact, other vital areas suffered, leaving a trail of damaged crops and economic uncertainty.
During these climatic challenges, Mexico faces an intriguing economic landscape. Despite the hardships, Santos shares that the peso stands strong against the dollar, maintaining a formidable exchange rate of 17-18 MXN, compared to previous fluctuations of 25 -27 MXN. “A stronger dollar encourages Mexican exports to the United States as Mexican growers strive to recover their investment in dollars. A weaker dollar has had growers questioning whether they should take on additional expenses such as freight and transmit times to get their product to the U.S.” With its predictable payment upon delivery terms, the Mexican market presents a tempting alternative. Adding to the complexities, Santos said, “Mexico is also struggling with labor shortages, forcing the industry to import labor from southern regions to fill the gaps.”
The Pharr International Bridge, a port of entry for the U.S.-Mexico border, reported the lowest crossing number of agricultural loads in the last quarter in comparison to the same time frame in the past five years. Santos gives an example, “we have a customer that would traditionally move about 180 loads of berries in October, and this year moved 110 loads.” However, in the grand scheme of things, every climate has its season, and while challenges persist, there are brighter days ahead. “Mexico continues to see an increase in planted acreage, especially in high-end commodities such as berries and avocados. Geographically, it is still in the best position than any other country to export to the U.S.”
Mark Santos has been a longtime friend with Allen Lund Company and the Lund family. Given the alignment in company culture and shared values with Santos International, the decision to collaborate six years ago was a natural progression. ALC takes pride in the partnership with the Santos family and draws upon their great insight, expertise, and local knowledge in McAllen, Texas, which is essential with Mexico being the United States largest trading partner.
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Isabella Silva graduated from St. Edward’s University in 2022 with a BA in Communication and minors in Psychology and Health Communication. She started working at the Allen Lund Company in July 2022 in the Marketing department.
isabella.silva@allenlund.com
Interviewee: Mark Santos, TransKool Solutions
In 2017, Allen Lund Company and Santos International came together and announced a new company, TransKool Solutions. This joint venture delivers top-tier warehousing solutions, specializing in LTL and FTL services, load consolidations, and Customs brokerage.
Peruvian onions imported by the U.S. have increased from 130,807 metric tons in 2018 to 164,734 metric tons in 2022, according to statistics from the USDA.
The total value of U.S. imports of Peruvian onions rose from $52.3 million in 2018 to $67 million in 2022, the USDA said.
The value of U.S. imports of Peruvian onions topped $412.30 per metric ton in 2022, up from $406.50 in 2021 but down from $446 per metric ton in 2020, according to trade numbers from USDA.
Peru accounted for 12% of total U.S. onion imports in 2022, the same share as in 2018.
In 2022, Peru shipped onions to the U.S. in every month but June, according to the USDA. The top shipment months were October through December, accounting for more than half of Peru’s total onion shipments to U.S.
However, Peru shipped a significant volume of onions to the U.S. from September through March.
Chilean blueberries imported by the U.S. totaled 45,982 metric tons in 2022, up from 42,458 metric tons in 2021 and up from 42,608 metric tons in 2020, according to the USDA.
U.S. imports of Chilean blueberries in 2020 were reported from August through April, with peak supplies in January and February.
The value of U.S. imports of Chilean blueberries totaled $4,605 per metric ton in 2022, down slightly from $4,675 per metric ton in 2021 but up from $4,533 per metric ton in 2020.
Chile provided 19% by volume of U.S. imports of fresh blueberries in 2022, down from 20% in 2021 and down from 23% in 2020, according to the USDA.
U.S. imports of Chilean blueberries (metric tons):
- 2018: 62,185 metric tons;
- 2019: 51,701 metric tons;
- 2020: 42,608 metric tons;
- 2021: 42,458 metric tons; and
- 2022: 45,982 metric tons.
Costa Rica is the primary exporter of fresh pineapple in the world, according to the Foreign Trade Promoter of Costa Rica (Procomer). Also, the United States is the main destination for the fruit.
The National Chamber of Pineapple Producers and Exporters (CANAPEP) reports pineapple contributes 1.90% of the country’s GDP, and about 34% of the country’s agricultural exports.
CANAPEP reflects U.S. per capita consumption of pineapple used to be low because most of the fruit that came from Mexico which had quality issues.
When Costa Rica entered the U.S. market with the Golden mb-2 pineapple, it was so well received that today Costa Rica supplies 84% of the fruit.
The United States also receives pineapple from Mexico, Ecuador, Honduras, and Panama.
Costa Rica’s pineapple production level has reached a peak, now producing about 48,000 120,000 acres, generating a volume of more than 160,000 containers per year of fresh pineapple. On a weekly weekly basis, the country averages 2,300 containers being exports to various markets.
Presidential Thanksgiving proclamations and speeches have been popular throughout American history. Within the federal government, the tradition pre-dates the U.S. Constitution adopted in 1789, and was observed by the Continental Congress.
President George Washington issued the first presidential Thanksgiving proclamation but that was not officially observed as a concurrent tradition by every president until Abraham Lincoln proclaimed a national day of Thanksgiving to be observed on Thursday, November 26, 1863.
Before Lincoln, Thanksgiving was generally promoted in government at the state level.
President Franklin Delano Roosevelt officially made the holiday the fourth Thursday in November in 1942.
Frutura of Reedley, CA, a gobal sales and marketing company has announced agreements to acquire two major produce companies – Giddings Fruit and Sun Belle.
Frutura described the planned acquisition as the most the company has made to date.
Giddings Fruit, headquartered in Santiago, Chile, is a global supplier of organic and conventional berries and cherries.
Sun Belle, based by Chicago’s O’Hare Airport, is a year-round marketer of a full line of conventional and organic berries, sold under the Sun Belle and Green Belle brands.
Frutura says it anticipates a smooth integration as Sun Belle and Giddings have enjoyed a deep, decades-long relationship. The companies have worked closely together on distribution, marketing and logistics, with Sun Belle serving as the exclusive sales agent for Giddings’ berries grown in Mexico.
Founder Janice Honigberg will continue as chief executive officer of Sun Belle and founder Julio Giddings will become chair emeritus of Giddings Fruit. Both will join Frutura’s board of directors.
What is the largest citrus fruit?
One might think the Sumo citrus, as its name suggests. Or could it be the pink, white or ruby red grapefruit?
It’s the pummelo. Here are some fast facts about this super-sized fruit.
Pummelos are:
- Originally from Southeast Asia.
- Harvested in Florida from December to April.
- About the size of a cantaloupe, 5 to 10 inches in diameter and 2 to 5 pounds
- Also called pomelo and Chinese grapefruit
- Fairly round and may have a slight point on one end
- Covered in yellow to green skin that’s slightly bumpy, with flesh that ranges from pink to rose and a thick rind
- Tart and sweeter than grapefruit with hardly any bitterness
By Michael Patrick, ALC Corp.
Transportation and analytics go together like peas and carrots. As technology continues on an upward trajectory with the implementation of artificial intelligence and machine learning, transportation companies will have to continue to adapt their environments to use this technology to their benefit. We currently use basic metrics to help our customers, managers, and brokers be as effective and efficient as possible. We combine our data with multiple data sources to get an overall market picture.
As a third-party transportation company, we use business intelligence and analytics in a multitude of areas. Market trends are used to help us bid spot market freight and rate prediction engines to help forecast rates on customer bids. Executives and managers use data and analytics to conduct customer, carrier, and employee reviews on a quarterly basis.
Customers and carriers benefit from Allen Lund Company conducting business reviews that show them not only trends in the overall marketplace, but also identify areas where they may reduce costs and thoroughly streamline their transportation. We use things like loads, customer spend, weight and pallet analysis, lane and cost analysis to create a great story for our customers and carriers.
One example comes to mind of ALC using data and analytics to help a customer reduce costs within their transportation department. We were asked to help this customer with a market analysis on their lane set. We ran the customers rates and market rates and showed them which areas to reach out to the incumbent carrier in order to adjust their rates to market levels. Some of these rates went up, and some went down. Overall, the customer felt like they not only got better rates, but also better service from their carrier. Win-win for everyone involved.
As technology continues to grow, we will have to stay ahead and evolve quickly in order to keep up with our customer and carrier demands. Allen Lund Company is committed to keeping up with the markets and to keep our customers, carriers, and employees up-to-date on all current market trends. The Business Intelligence team here at ALC will continue to push the envelope on what is possible with analytics.
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Michael Patrick is the Director of Business Intelligence and has been with Allen Lund Company since January 2018. He graduated from Winthrop University with a BS in Marketing in 1998 and earned his MBA from The Citadel in 2002.
michael.patrick@allenlund.com
IMMOKALEE, FL – Lipman Family Farms is proud to announce significant investments in vegetable production that will revolutionize their operations and bolster the quality and output of their products.
In a dynamic industry landscape where consumer preferences continually evolve, Lipman Family Farms remains steadfast in its commitment to meeting the ever-changing demands and increasing consumption of fresh vegetables.
“We recognize when it’s time to invest into more resources so that our team can meet the needs of our customers and consumers alike,” Elyse Lipman, CEO of Lipman Family Farms stated. “With these investments, we will be able to meet consumer demands, enhance our operations, and enforce our position as a reliable partner in the industry.”
The key investments made by Lipman Family Farms include:
Increased Vegetable Acreage in Florida: Lipman has significantly expanded its vegetable and watermelon acreage in Florida, ensuring a consistent supply of high-quality vegetables year-round. This expansion enhances their ability to meet consumer demands for fresh produce, no matter the season.
Acquisition of Chapman Fruit Co.: Lipman Family Farms has purchased Chapman Fruit Co., a reputable vegetable packer in Southwest Florida. This strategic move creates additional capacity to accommodate the growing volume of vegetables produced by Lipman in the region, ultimately increasing cooling and packing capabilities to ensure the freshest produce reaches consumers.
Located in Immokalee, Florida, this acquisition provides a 65,000 square-foot packing facility that is conveniently situated near Lipman’s farms in Southwest Florida, allowing for short and efficient local transit. The facility is equipped to handle and store the increased volume of watermelon and vegetables produced by Lipman.
12-Lane AWETA Pepper Packing Machine: Lipman Family Farms has invested in a cutting-edge 12-lane AWETA machine for packing peppers in Florida. This machine expands the vegetable packing capabilities at Lipman’s existing facilities and significantly improves automation efficiencies. It can sort and pack approximately 5,200 cases of peppers per hour and offers various packing capabilities, including DRCs, PLU labeling, and bagging.
“The acquisition of Chapman Produce and the implementation of cutting-edge equipment, such as the AWETA machine, allow us to continue to streamline our operations and improve efficiency,” said Toby Purse, Chief Operating Officer of Lipman Family Farms. “These investments allow us to continue to enhance our operations, become more efficient, and deliver the same quality to our retailers and consumers alike.”
“With the new investments in acreage, equipment and facilities, our team can continue to meet our standard for producing and delivering quality fruits and vegetables,” Purse added.
Lipman Family Farms is excited to embark on this new phase of growth and innovation, as they continue to meet the evolving needs of their consumers.
Prima Wawona of Cutler, CA, the largest stone fruit producer in California’s Central Valley, filed for Chapter 11 bankruptcy protection recently, hoping to facilitate the sale of the company.
The company pointed the filing at “significant headwinds, including increased costs and weather-related impacts, that have combined to make our existing capital structure unsustainable.”
Reuters reports that the company, owned by private equity firm Paine Schwartz Partners, has about $679 million in debt, and plans to sell its business in bankruptcy, according to bankruptcy court documents.
Prima farms peaches, nectarines, plums, and apricots on its 18,000 acres in California’s San Joaquin Valley.
If no buyer emerges, Prima will pivot to a debt restructuring or a liquidation of its business, according to court documents.
The company was formed from a 2019 merger of Gerawan Farming Inc. and Wawona Packing Company. The company had over $300 million in sales revenue in 2022, with 60% of that coming from the sale of peaches, according to court documents.