Archive For The “News” Category
The U.S. national orange forecast is dropped 1% this month in comparison to March, but is still 7% above the 2022-23 season.
The lower forecast results from a decrease in production in just one state, Florida. The USDA’s April citrus forecast attributes Florida’s dip mostly attributed to a decrease in production of Valencia oranges, often referred to as “juice oranges,” and grapefruit.
Florida’s Valencia orange shipments are down to 12,000 boxes, an 8% decrease from the previous month, but up 24% from last season’s numbers. Oranges are the most widely grown citrus in Florida and the Valencia variety makes up most of the industry.
The state’s orange juice production has been in a steady decline due to citrus greening disease, HLB. The disease affects the sweetness and color of oranges, leaving larger portions of Florida’s crop ineligible for juice production. National regulations establish juice oranges must reach a Brix level of 10.5 degrees.
A USDA Row Count survey conducted at the end of March showed that 51% of the Valencia crop has been harvested, and the fruit size was below average.
The state also saw a 9% decrease in grapefruit production, from 2.2 million boxes in March to 2 million in April. Other citrus production remained
unchanged for non-Valencia oranges at 6.8 million boxes, and tangerine and tangelos at 500,000 boxes.
Texas saw a 50,000 box increase in Valencia orange production and 100,000 in non-Valencia oranges. California did not see an increase in its orange production but saw a 300,000 growth in grapefruit and 1,000 in lemon.
PhilaPort is known for being a prime destination for imported fruits and this situation is not expected to be negatively impacted due to the collapse of the Francis Scott Key Bridge in Baltimore after being hit by a ship on March 26. It resulted in the deaths of 6 people, and widespread speculation over its impact on other East Coast ports.
The Port of Baltimore does not handle large produce volumes. However, those ships normally going to Baltimore now have to reroute to other East Coast ports. This raised numerous questions about the capacity to handle the additional cargo.
The Port of Philadelphia is a major destination for produce imports in the U.S., and has already received additional ships and will continue to receive more.
PhilaPort has experience with the type of cargo being diverted and is confident it will be able to handle it, without affecting other operations.
At PhilaPort, 54% of the containers handled are refrigerated, establishing itself as the go-to port for produce.
The Delaware River port community encompasses three separate entities, Pennsylvania, New Jersey, and Delaware. Among the three, they account for $6.6 billion in total food imports, with fruits and vegetables accounting for more than $4 billion of that total.
Both New York and Virginia, have larger ports capable of providing the additional offload service, meaning those imports don’t have to be delivered to Philadelphia.
For the automobile industry, one of the largest categories for the Port of Baltimore, it is not expecting a big flood of additional cars.
The Port of Philly gives priority to fruits and vegetables, receiving large shipments from the west coast of South America.
PhilaPort expects no negative impacts on its produce shipments from any diversion noting it has dealt with cargo surges in the past.
Philadelphia received its largest ship ever, the CMA-CGM Marco Polo, a 16,000 TEU ship recently. The model is the largest type of container ship that can land in the U.S. East Coast.
The ship was scheduled to go through the Suez Canal and pick up clementines in Morocco. However, the conflict in the Red Sea meant the ship had to go south around South Africa.
With the opening of this seasonal service, the port is optimistic it will be receiving a lot more fruit in the future.
Since this route starts in China, it should open opportunities for frozen fruits and vegetables from East Asia in the future.
Additionally, members of the Cosco Shipping Lines company intend to start a new service from the west coast of South America to Philadelphia.
The details of this new route have yet to be revealed , but the port expects the service to start soon.
It very well could ship from Chile, Peru, and Ecuador with fruits up to Philadelphia.
This means now the top 5 global shipping companies will have operations in the Port of Philly.
By Isabella Silva, ALC Marketing Coordinator
Recent storms in California have significantly impacted agricultural operations. However, the U.S. Department of Agriculture (USDA) is ready with technical and financial assistance to aid farmers and livestock producers in recovering from these adverse weather events. California’s agricultural sector has demonstrated remarkable resilience, supported by infrastructure enhancements, crop diversification, government assistance programs, and ongoing research and innovation efforts. It’s fascinating to note that California was in a severe drought just three years ago, highlighting the striking contrast in weather patterns. Nevertheless, both extremes resulted in similar agricultural shifts, noting the industry’s adaptability. This article explores the sector’s recovery from floods and projects California’s demand for refrigerated trucks.
According to the UC Agriculture and Natural Resources, investments in infrastructure, such as levees and irrigation systems, have played a crucial role in mitigating flood damage and protecting agricultural lands. Farmers in California have implemented crop diversification strategies by planting flood-tolerant varieties to minimize losses. Partnering with Full Belly Farm in Yolo County, California, the USDA California Climate Hub conducted an extensive case study emphasizing adaptation planning practices as opportunities to alleviate the impacts of extreme weather conditions. Their focus on building soil organic matter not only improves crop fertility, but also increases soil water retention and holding capacity. Ongoing research endeavors aim to develop flood-resistant crop varieties and innovative farming techniques, further enhancing the industry’s resilience against future flood events. As government-sponsored insurance and assistance programs offer crucial financial support to farmers, it’s important to see how this reflects the transportation industry.
DAT reported citrus, almonds, avocado, and strawberry crops are expected to be impacted and have already contributed to 84% fewer truckloads of produce compared to this time last year. However, there’s still ample time for the 2024 produce season to regain its momentum, even with the national produce volumes down 17% from last year. With more resources, solutions, and research each year, California is continually improving its ability to address flooding challenges. This suggests a potential increase in the demand for refrigerated trucks in California’s agricultural supply chain, a positive sign for the industry’s recovery.
*****
Isabella Silva graduated from St. Edward’s University in 2022 with a BA in Communication, complemented by minors in Psychology and Health Communication. In July of the same year, she began her career at the Allen Lund Company in the Marketing department. Isabella is set to start her MS in Public Relations Innovation, Strategy, and Management at the University of Southern California in May.
isabella.silva@allenlund.com
The Port of Houston is in the midst of numerous upgrades and expansions, while propelling itself into the future.
With strategic investments in new equipment, terminal infrastructure and channel improvements, the port continues to solidify its position as a vital hub for trade in the Gulf region.
“American farmers and ranchers depend on a reliable and efficient transportation system to move their products to market,” Agriculture Secretary Tom Vilsack said in a news release.
According to the USDA, the Port of Houston has faced challenges in handling agricultural exports due to a shortage of chassis, leading to inefficiencies in moving reefers on and off vessels.
“The USDA is pleased to announce the partnership with the Port of Houston and the expanded collaboration with NWSA to further ease port congestion. Through these investments, we continue to deliver on our promise to bolster the supply chain and support American-grown food and fiber,” Vilsack said in the release.
With support from the USDA Agricultural Marketing Service, the port is leasing additional chassis to mitigate these challenges.
“This is an opportunity for new or emerging candidates, or new or emerging commodities to enter the US marketplace. And that’s what makes the Port of Houston so great,” said Dante Galeazzi, CEO and president of the Texas International Produce Association.
Additional improvements at the Port of Houston aim to optimize infrastructure and channel capacity to better serve the region.
This includes widening, deepening and maintaining the Houston Ship Channel, driving the development of landside infrastructure and inland distribution networks, and enhancing efficiency and resilience through innovative technology and other strategies.
“Port of Houston only has room to grow,” Galeazzi said.
The Pro Citrus Network, operating through the Port of Houston, plays a vital role in facilitating the efficient transportation and distribution of citrus products.
Founded in 2004 in California as a grower-shipper, PCN was the first to import lemons into Port Houston in 2008. Since then, PCN has grown throughout Texas and the Midwest.
After outgrowing several leased facilities in Houston, PCN launched sister company Foremost Fresh Direct to service PCN to provide citrus year-round, as well as service other fresh produce and perishable customers needing cold storage, bringing additional commodities including avocados, grapes, melons, pineapples, juice and additional perishable items.
Global fresh produce marketer Dole plc terminated its agreement to sell its Fresh Vegetable Division to Fresh Express, a wholly-owned subsidiary of Chiquita Holdings Limited (Chiquita).
In a release Thursday morning, the company said the decision resulted from the U.S. Department of Justice’s decision to pursue litigation to prevent the transaction.
The DOJ said Thursday that it had concerns about the deal’s impact on competition in the packaged salad market.
“At a time when food companies are already overcharging Americans for groceries, today’s abandonment preserves lower prices and availability for an essential kitchen staple,” said Assistant Attorney General Jonathan Kanter of the Antitrust Division in a statement.
“This merger would have reduced the number of competitors from three to two and raised grocery prices for food products that are purchased by 85% of American households. I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals, and professional staff who made this result possible.”
In January 2023, the company announced a ‘definitive agreement’ to sell the division for gross proceeds of approximately US$293 million, subject to certain adjustments.
At the time, they said the transaction was subject to regulatory approval and the parties expected the transaction would close after obtaining approval.
This morning, the company put out the following statement regarding the announcement:
“While Dole strongly disagrees with the Department of Justice’s decision and continues to believe that the transaction was pro-competitive and would have unlocked ongoing benefits to customers and consumers, we remain confident that we will have an alternative path forward in the near term that is in the best interests of the Fresh Vegetables Division’s employees, customers, and partners, and the Dole plc shareholders.”
The company’s executive chairman Carl McCann previously said the deal with Fresh Express would improve their offering and service to customers and consumers through increased investments in innovation, efficiencies, and food safety.
Banana import volume and value rose in 2023, according to USDA trade data.
At $2.04 billion, the U.S. import value of bananas in 2023 was up 4% from 2022, up 9% from 2021 and up 8% from 2020.
U.S. import volume of bananas was 5.08 million metric tons in 2023, up 2% from 4.99 million metric tons in 2022. The per metric ton value of banana imports in 2023 was $532.80, up 7% from 2022 and up 11% from 2021.
Guatemala, Costa Rica, Ecuador, Honduras, Colombia and Mexico were the top global suppliers to the U.S. market, according to USDA numbers. By country, 2023 U.S. import value numbers, with percent change from 2022, were:
- World total — $2.04 billion, up 4%.
- Guatemala — $948.9 million, up 2%.
- Costa Rica — $432 million, up 21%.
- Honduras — $228.3 million, down 4%.
- Ecuador — $167.9 million, up 2%.
- Colombia — $123.9 million, up 6%.
- Mexico — $106.1 million, down 13%.
- Panama — $31.1 million, up 68%.
Banana retail per capita availability was 26.9 pounds in 2021, down 1% from 2020 and down 2%. Retail per capita availability data for 2011 to 2021 was:
- 2011 — 25.5 pounds.
- 2012 — 26.9 pounds.
- 2013 — 28 pounds.
- 2014 — 27.9 pounds.
- 2015 — 27.9 pounds.
- 2016 — 27.4 pounds.
- 2017 — 28.6 pounds.
- 2018 — 28.3 pounds.
- 2019 — 27.4 pounds.
- 2020 — 27.2 pounds.
- 2021 — 26.9 pounds.
By Fernando Dominguez ALC San Francisco
The Transportation industry is more than just getting products from point A to point B. There are myriad factors to consider, from the product itself and the agricultural regulations it abides by to the equipment utilized and the laws that govern it. Most importantly, but arguably the most overlooked factor in this industry, are the laws, rules, and regulations that create the foundation under which many products are cultivated. Being part of a national transportation brokerage and working in the San Francisco office, whose main niche is in produce, we are consistently watchful for changes in regulations and shifts in the market. They have the potential to affect both the customers we conduct business with and the carrier companies that relentlessly move product from coast to coast. I am part of a team that must shift and pivot in an industry full of change, but with change comes bountiful opportunities.
There have been numerous occasions where changes in agriculture and consumer spending have led customers and carriers to adjust their daily procedures to keep up with demand. Most recently, the USDA Announced Temporary Suspension of the Continuance Referendum Requirement for California Raisins. This has the potential to change how much grapes are moved throughout the country. Subsequently, other produce products grown in California will be impacted, as this action amends a marketing order affecting growers and handlers of grapes (of whom presently, there are approximately 18 handlers of raisins subject to regulation under the Order and approximately 2,000 raisin producers in the regulated area). Keeping track of regulatory changes is extremely important because they enable multiple entities to regulate the cultivation and distribution processes. Additionally, it’s crucial to understand the financial effects of these changes. Any time there is a change of this magnitude in the transportation industry, it has the potential to change customer buying projections, bids on specific lanes, and carrier shifts in certain geographical regions. It even changes the compliance that drivers must adhere to when loading at specific shippers.
I take pride in contributing to an industry that ensures Americans have access to high-quality goods and efficient resource distribution. Our direct involvement in this dynamic system allows us to continuously sharpen our skills and thrive amidst challenges. These challenges foster team cohesion and offer unparalleled opportunities for career growth. The next time I go to the grocery store and see a display of grapes or raisins, I will know that many people and businesses made a tremendous effort to cultivate, supply, and distribute them even through changing regulations. At ALC, we’re committed to upholding our core values of integrity, dependability, service, honesty, and family while meeting the evolving needs of our industry.
*****
Fernando Dominguez graduated from California State University Chico in 2020. He served as an embarkation logistics specialist in the United States Marine Corps Reserve as a sergeant, while beginning his career at the Allen Lund Company as a transportation broker in training. He was promoted to transportation broker after eight months and subsequently to carrier manager after a year and a half at the ALC San Francisco office.
fernando.dominguez@allenlund.com
Ayco Farms and Fisher Ranch, prominent players in the seasonal melon industry, have recently announced a significant collaboration. The alliance is aimed at supplying a year-round assortment of melons, including cantaloupe, honeydew, along with various mixed melons. Targeting retail, food service, and fresh-cut segments, this alliance guarantees their clientele a steady provision of premium-quality melons.
Ayco, with a home office in Pompano Beach, FL, is a multinational, premier supplier of various offshore fruits and vegetables, including cantaloupes, watermelons, honeydews, pineapples, and asparagus, operates extensively across Central and South America and Mexico. Fisher Ranch of Blythe, CA supplies melons throughout North America and is renowned for producing sweet, flavorful vine-ripe melons. Fisher Ranch operates in Arizona and California, bringing domestic operational support and more than 6 decades of expertise and dedication to the industry.
Bart Fisher, principal shareholder of Fisher Ranch, highlighted the synergistic potential of this initiative with Ayco. “This alliance is a natural progression for Fisher and our growth strategy. We bring a combined legacy of quality, innovation, and customer-focused operations. This new venture is more than just a business arrangement; it’s a commitment to excellence.”
“The creation of this program with Fisher Ranch marks a significant milestone for Ayco,” said Avi Nir, CEO and President of Ayco. “It represents our promise to provide our customers with top-quality melons all year round. We’re excited about the opportunities for this alliance and the benefits it will offer our customers.”
Both Ayco and Fisher Ranch are renowned for their stringent control over every stage of their operations, from cultivation and harvesting to packaging, quality control, and distribution. This meticulous attention to detail ensures that only the finest melons reach their customers.
Ayco will transition to Fisher Ranch with melon production in AZ and California beginning from late May and continuing through October. The collaboration will leverage Guatemalan melons from November to June, guaranteeing a year-round supply.
For additional information, please contact Fisher Ranch at www.fisherranch.com and Ayco Farms at www.aycofarms.com.
GOODLETTSVILLE, TN – Dollar General has exceeded its latest milestone, now offering fresh produce options in more than 5,000 stores across the country.
The retailer now has more individual points of produce distribution than any other U.S. mass retailer or grocer. DG stores that carry produce provide consumers with a curated assortment of fresh fruits and vegetables, including tomatoes, onions, apples, strawberries, potatoes, sweet potatoes, lemons, limes, salad mixes, and more.
First announced in the Company’s Q4 2022 earnings last March, DG has continued to make strides toward reaching this milestone and now, more than 5,000 DG stores also carry the top 20 items typically sold in traditional grocery stores which cover approximately 80 percent of the produce categories most grocery stores traditionally provide.
“We are constantly looking for ways to better serve our customers and one of our top priorities is to ensure the communities we call home have access to fresh, affordable, and convenient food options,” said Emily Taylor, executive vice president and chief merchandising officer at Dollar General. “We have exceeded our goal of having 5,000 total stores with fresh produce by January 2024. We’re proud to leverage our footprint to meet the need for healthy food options in more communities than any other retailer across the U.S.”
The Company has also recently invested in a partnership with Shelf Engine, an AI company providing retailers with technology to improve perishable food forecasting and ordering.
The partnership will evolve Dollar General’s process to optimize in-stock produce levels, helping automate the ordering process while providing customers with the freshest food possible. As this tool continues to roll out, it will support the Company on its meaningful produce growth journey while improving operational efficiency.
Approximately 80 percent of Dollar General stores serve communities of 20,000 or fewer people, and residents in these communities often rely on the retailer for their everyday essentials including components of a nutritious meal. Every Dollar General provides customers with healthy food options such as milk, eggs, bread, cheese, frozen and canned vegetables, grains, lean proteins and more, including Dollar General’s exclusive Good & Smart® private brand.
As part of the Company’s commitment to provide convenient and affordable access to foods, in 2023 it announced its “Food First” initiative, which includes the customer feedback-driven expansion of its private label brand, Clover Valley, welcoming over 100 new items to shelves including a wide range of entrees, sides, sauces, condiments, snacks and more at affordable price points.
Additionally, Dollar General partners with local and national nonprofit organizations, including food banks, as part of its on-going efforts to help alleviate food insecurity. DG’s operational partnership with Feeding America, the nation’s largest hunger-relief organization, provides in-kind food donations from stores and distribution centers across the country with a goal to contribute up to 20 million meals each year. To date, Dollar General has donated more than 23 million meals and over $3 million to Feeding America.
Explore local stories of how Dollar General has brought fresh produce to underserved communities here. To learn more about Dollar General’s produce and healthy food options, including recipes using ingredients sourced from DG stores, visit https://www.dollargeneral.com/c/food-beverage. Find a store with produce near you by filtering for fresh produce on the online store locator.
About Dollar General Corporation
Dollar General Corporation (NYSE: DG) is proud to serve as America’s neighborhood general store. Founded in 1939, Dollar General lives its mission of Serving Others every day by providing access to affordable products and services for its customers, career opportunities for its employees, and literacy and education support for its hometown communities. As of November 3, 2023, the company’s 19,726 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico provide everyday essentials including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor from our high-quality private brands alongside many of the world’s most trusted brands such as Coca Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble and Unilever. Learn more at DollarGeneral.com
The Michigan Potato Industry Commission in a new report and press release shows the economic benefits the Michigan potato industry has on the state’s economy.
The commission notes the state’s potato industry contributes more than $2.5 billion to the state’s gross domestic product and supports 21,700 jobs in the state, generating around $832 million in wages.
“In 2022 alone, this contribution, which stems from both direct and indirect economic activity, includes nearly $1.5 billion in direct economic activity resulting from growing, processing wholesaling and retailing potatoes and potato products,” Ryan Norton, chair of the Michigan Potato Industry Commission and farm manager at Walther Farms in Three Rivers MI, said. “It also factors an additional $1 billion in indirect activity from the food service industry and through the household consumption of Michigan-grown potatoes.”
The commission said the study found potatoes are the second-largest specialty crop grown in the state, adding that Michigan produces about 1.9 billion pounds of potatoes for seed, fresh, frozen, dehydrated and processing industries. More than 70% of potatoes grown in Michigan go to the chip industry.
Apples are the leading specialty crop grown in the state.
The study says 1 in 4 bags of potato chips in the U.S. contains Michigan-grown potatoes.
“The sales of these potatoes generated more than $246 million [in 2022] alone. This puts Michigan as the eighth-largest state in the nation in terms of potato production and sixth in terms of sales,” said Phil Gusmano, vice president of purchasing of Detroit-based Better Made Snack Foods and commissioner on the Michigan Potato Industry Commission.