Archive For The “News” Category

Wilmington Port Improvements will be Good for Bananas

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DSCN3240+1+1North America’s leader in banana imports and other fresh fruits and juice concentrates, is doubling its contingent of ship-to-shore gantry cranes and renovating antiquated berths near the mouth of the Christina River.   The Port of Wilmington  also is examining long-term prospects for new terminal development on the Delaware River.

AECOM has been contracted by The Delaware State Port Corp. (DSCP) to develop a master plan including examination of potential future port development along the Delaware River.  The primary site currently under consideration is located  just south of the Delaware Memorial Bridge, the twin spans that carries Interstate 295 over the river.

A $24 million contract has been signed by DSPC to have two new rail-mounted gantries in operation by the end of 2016, to join the two cranes already on rails that are to be extended to serve Christina River berths 1 through 5.  The port’s 100-ton-capacity Gottwald mobile harbor crane would then be able to be moved to Berth 7.

Additionally, a $10 million grant via the USDOT’s Transportation Investment Generating Economic Recovery competitive grant program is being used to kick-start rebuilding of berths 5 and 6, which date back to the founding of the Port of Wilmington back in 1923.

The depth at the Christina River berths is nearly maxed out at 38 feet, even with twice-a-year dredging.

Thus, although fruit operations benefit from the industry-leading 800,000 square feet of on-dock temperature-controlled warehouse space at the Christina River terminal plus additional nearby nonunion chilled facilities.  Future plans call for  development along the Delaware River, where a project for channel deepening to 45 feet is nearing completion.

 

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What Does Locally Grown Produce Really Mean?

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IMG_6812Grocery chains and the supercenters promote locally grown produce, exactly what do they mean?  Retailers are aggressively expanding their locally grown offerings, but there are concerns regarding what consumers are getting when they buy “local.”

The popularity of locally grown foods are exploding.  Overall, local foods generated $11.7 billion in sales in 2014, and will climb to $20.2 billion by 2019, according to Packaged Facts, a market research firm.

Not only has there been huge growth in the number of farm-to-table restaurants and farmers’ markets, but grocery chains and big box retailers, including Wal-Mart, are elbowing their way in, aggressively expanding and marketing their locally grown offerings for sale.

Wal-Mart sells $749.6 million of “locally grown” produce annually, while Supervalu, owner of the Jewel-Osco, Albertsons, and Lucky chains, buys between 25 and 40% of its produce locally.

“We’ve reached a tipping point for local foods,” Packaged Facts research director David Sprinkle said in a release, noting sales of local foods could eclipse organic food sales.

But in the midst of this boom, questions are being raised about what exactly “local” means. Just as controversy has dogged the labels, “all natural” and organic, there are real concerns that consumers may not be getting what they think when they “buy local” at the local supermarket. The label “local” is too often part marketing hype.

In fact, the Packaged Facts report notes, nearly half of people surveyed said they are willing to pay up to 10% more for locally grown or produced foods, and almost one in three said they are willing to pay up to 25% more. “Local has become a shorthand descriptor that makes food sound high quality, fresher, more authentic, trustworthy, environmentally friendly, and supportive of the local community,” the report notes.

But is it?  Not exactly. There’s no agreed upon definition of “locally-grown,” meaning no consensus on the distance from farm to shelf or whether local means it necessarily comes from small farms — and not a big ag farm.  Sometimes there’s clear stretching of the spirit of the term, or even outright fraud (as when a few California restaurants were found to be have falsely claiming to use locally produced food.)

For example, what about “locally grown in California” if in this huge state product is shipped hundreds of miles from the El Centro in the southern part of the state to cities in Northern California?  Would product grown in Nevada, which is much closer, be considered locally grown?

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Wishing You a Happy New Year!

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Happy New Year and welcome to 2016!

It has been a memorable year for HaulProduce.com   We’ll be noting, if not celebrating our 4th anniversary on January 12th, of providing you the most up to date information on hauling fresh fruits and vegetables as well as issues surrounding fresh produce that may affect you.

We posted our 1300th item on December 18th.  Those taking advantage of our free subscription continues to grow.  This is where you are automatically notified of new postings.  We have now surpassed 350 subscribers.

I want to thank my sponsors, all of whom I’ve personally known 20 years or more.  All of them represent the highest standards of honesty and integrity, and truly care not only about their customers, but the men and women behind the wheel of the big rigs that keep this nation moving.

There is Allen Lund and Kenny Lund (Allen Lund Company), Fred Plotsky (Cool Runnings) and Jimmy DeMatteis (Des Moines Truck Brokers).  If you are an owner operator, small fleet owner or some other type of long haul carrier, you are in good hands with these folks.

TransFresh is another sponsor, but of a different nature.  When you click on their ad it can open a lot of doors to valuable information for those involved with transporting perishables.  Rich Macleod of TransFresh has a soft spot for the hard work ethic and the issues facing produce truckers, and he understands and appareciates the vital role they play.

The challenge of not only finding produce loads, but being paid a fair freight rate, is just the start.  Delivering that perishable product from point A to point B in a timely fashion, and in good condition can be equally as challenging.  Hopefully, through HaulProduce.com we can play a small part in making your business more successful.

In the meantime, here is wishing you a healthy, happy, and prosperous 2016 – and of course, safe travels.  God Bless. —Bill Martin

 

 

 

 

 

 

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Record Apple Shipments vs. Sales

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Apples sold at retail increased only slightly and sales were down, despite a record U.S. apple crop in 2014-15.

That indicates that while consumer preferences are shifting, it’s not translating into increases in total consumption, according to Nielsen data cited in a news release from Wenatchee, Wash.-based Columbia Marketing International.

From Sept. 1, 2014, to Aug. 28,2015, retail apple volume sales climbed 1.9 percent, according to Nielsen. The average retail price fell 3.9 percent, pulling overall sales down 2 percent.

The Nielsen report covers about 19,000 supermarkets and 67% of U.S. supermarket sales.

Honeycrisp sales continued to rise in 2014-15. The average retail price of the variety jumped 25 percent. The average price of red delicious, however, fell 15 percent.

Gala, Honeycrisp, fuji, red delicious and granny smith accounted for 75 percent of all sales in 2014-15.

The average price of Ambrosia apples climbed 47 percent in 2014-15, the strongest performance of any variety, according to CMI.  Ambrosias vaulted into the varietal top-10 last season, replacing braeburns.

Category growth is being driven by consumers shifting to premium varietals, Katharine Grove, marketing specialist at CMI, said in the release.

“Every retailer should take note that despite a record crop and cheap prices last year, category sales actually declined,” Grove said in the release.  “Retailers that identified the opportunity to maximize performance of Honeycrisp, Ambrosia and some of the key emerging branded apples like Kanzi and Kiku probably had a pretty good year while their competitors lost market share.”

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Potato Cartel Settles Lawsuits for $25 Million

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IMG_6909+1A federal judge approved a $25 million settlement that completes one chapter of a five-year long antitrust battle over the nation’s potato market being manipulated by a potato cartel.

Consumers will get $5.5 million and grocers $19.5 million.  Chief U.S. District Judge B. Lynn Winmill granted final approval of the settlement on December 14.

Potato buyer Brigiotta’s Farmland Produce and Garden Center of Jamestown, NY filed the class action against the United Potato Growers of America (UPGA), United Potato Growers of Idaho (UPGI) and a long list of member and nonmember growers in 2010.  The lawsuit, and another filed by Associated Wholesale Grocers in 2013, claims the defendants conspired to inflate the price of potatoes “in classic cartel behavior,” that the cartel used physical and nonphysical intimidation to get independent growers to join, that it used high-tech methods of surveillance and physical “flyovers” to monitor members, and that the successful campaign led to an 80 percent control of the market.

Idaho grower Albert Wada, of Wada Farms Group, allegedly spearheaded the campaign, founding the United Fresh Potato Growers of Idaho in 2004, later renaming it the United Potato Growers of Idaho.  The organization’s purpose, as stated in its articles of incorporation, is to “stabilize potato prices and supplies in the state of Idaho and to work with similar cooperatives in other states having similar purposes,” according to the third amended complaint, a 107-page monster filed on Jan. 24, 2014.

United Potato Growers of America was founded in 2005 and is headquartered in Salt Lake City.  Members pay dues from $10,000 to $500,000 based on acreage, according to the complaint.  The “cooperatives” were formed in response to declining prices. Growers reduced the supply of potatoes, in part, by changing their contracts with customers, basing orders on a specific number of acres of potatoes to be grown instead of a specific quantity of potatoes.

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Apple app for weighing fruit; Eating Produce and Heart Disease

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DSCN4900Apple has announced a less known, but essential capability of the iPhone 6s, the Plum-O-Meter, an application created by Simon Gladman.
The Plum-O-Meter allows fruit shoppers to weigh their plums by placing them on the screen of the application.   Gladman says that Plum-O-Meter uses the advanced technology in the pressure-sensitive screen to act as a scale: the app signals which of the objects placed on the display is heavier.
This application can also weigh apples, lemons, coconuts or anything else relatively heavy.  Gladman originally wanted to make the application for grapes but they were too light to activate the 3D Touch.

Preventing Heart Disease

It has been discovered that eating fruits and vegetables as a young adult will help prevent heart disease and coronary artery plaque 20 years later.

The researchers divided data from 2,506 study participants into three groups, based on their daily consumption of fruits and vegetables. Women in the top third ate an average of nearly nine servings of daily fruits and vegetables and men averaged more than seven daily servings. In the bottom third, women consumed an average 3.3 daily servings and men 2.6 daily servings. All servings were based on a 2,000-calorie-a-day diet.

Researchers found that people who ate the most fruit and vegetable at the start of the study had 26 percent lower odds of developing calcified plaque 20 years later, compared to those who ate the least amount of fruits and vegetables.

 

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Avocado Consumers Spend More Money, Study Claims

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015Keys to the Cart: Driving Hass Avocado Sales at Retail, unveils how avocado purchases impact the value of the retail market basket, and identifies key shoppers and purchase behaviors driving these results, according to a new study by the Hass Avocado Board.

For example, the retail market basket analysis shows that shoppers spend 65 percent more in-store overall when avocados are in the basket; and millennial shoppers spend 73 percent more in-store overall when avocados are in the basket.

“The study, based on IRI household panel data, yields actionable insights into how high-value shoppers, such as millennials, are driving the category by purchasing avocados more frequently and spending more each time,” Emiliano Escobedo, executive director of the Hass Avocado Board, said in a press release. “Equally as interesting is how regional segmentation sheds light on areas that may be poised to deliver the next big wave of category growth.”

When viewing information on total U.S. households, the study found that over half of U.S. households purchase avocados with an average of 33 days between purchases. On average, shoppers purchase avocados six times per year and spend $3.49 per purchase. This equates to an annual avocado dollar spend of $20.76 per household.

The study offers in-depth insight into various consumer groups and geographic regions:

  • Millennial Avocado Buyers — Millennial households are more likely to buy avocados and spend more on avocados than non-millennials. Millennials spend 22 percent more per occasion. Millennial baskets with avocados are $76.36, which is $8.74 above the average basket with avocados and $10.08 greater than non-millennial baskets with avocados.
  • Bulk and Bagged Avocado Buyers — Buyers who purchase both bulk and bagged avocados spend more each year and purchase more frequently than bulk-only and bagged-only buyers. Bagged-only buyers have the highest avocado market basket at $137.93; both buyers also drive a higher-than-average avocado basket at $81.22; and the avocado market basket for bulk-only buyers is slightly below the average at $61.57.
  • Avocado Buyers in Geographic Regions — The retail market basket with avocados in Emerging Regions (Aggregate of Midsouth, Great Lakes, Northeast, Plains and Southeast) is higher than in Developed Regions (Aggregate of California, West and South Central). Emerging Region baskets with avocados are $69.11, which is $1.49 above the national average for baskets with avocados and $2.92 greater than Developed Regions. However, the annual avocado spend is increasing at a faster rate in the Emerging Regions.

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Allen Lund Co. Celebrates 10th Season Supporting Charity Drive

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DSCN4660By Allen Lund Company

La Cañada Flintridge Calif. – The Allen Lund Company (ALC) will be participating in Navidad en el Barrio for the 10th consecutive year.  Working together with growers, shippers, and carriers Navidad is able to provide food baskets to over 15,000 families-in-need during the holiday season.

This year ALC worked with companies such as Wada Farms, Dayka+Hackett, Rainier Fruit Company, Wonderful Citrus, and Grimmway Farms to provide food donations. “We are thrilled with the great response our customers and shippers have given to Navidad this year,” stated Nora Trueblood, Director of Marketing and Communications. “Adding fresh produce to the dinner baskets is of huge value to the families.”

This year ALC also had the privilege of running a shoe drive in the Corporate office. We were able to collect 130 pairs of brand new shoes ranging in all sizes from toddler to teen. On December 12th the shoes will be handed out at St. Vincent de Paul’s annual shoe and toy drive to hundreds of families that wait in line for hours.

This will make the second year that with the Allen Lund Company’s coordination, Navidad Christmas dinners will also be given to 500 families at St. Vincent de Paul during their annual toy and shoe drive.

About Allen Lund Company:

Specializing as a national third-party transportation broker with nationwide offices and over 400 employees, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated (specializing in produce), and flatbed freight; additionally, the Allen Lund Company has a logistics and software division, ALC Logistics, and an International Division licensed by the FMC as an OTI-NVOCC #019872NF.

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Profits vs. Drought When it Comes to Figs and Almonds

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Figs require very little water.  Even amid long-term forecasts of limited rain and higher temperatures, Kevin Herman believes the trees are likely to produce a good living for the Madera County, CA farmer.

However, the landscape around Herman has changed over the past 20 years.  Fig trees still sprawl for miles across the sweltering flatlands near Fresno, but the orchards in the area have been shrinking for decades.  During the 1990s, there were more than 20,000 acres of figs here — mostly of the black mission and Calimyrna varieties.  Ten years ago, there were 12,000 acres. Now, just 7,000 acres remain, and the problem isn’t going away.

Pragmatic farmers know there are better ways than growing figs to get rich.  Herman is just one of many growers who have traded figs for almonds.  More than a million acres of almonds now grow in California, and the orchards are still expanding.   Herman is convinced there is a financial incentive to grow nuts, including pistachios and walnuts. A n exceptional fig orchard can generate $5,000 per acre, though most don’t do nearly that well.  On the other hand, one can expect $10,000 from an acre of almonds.

Still, Herman plans to keep most of his 4,000 acres of figs; about a million trees.  The reason is water.  Figs need very little — just two feet or so. That’s less than half what it takes to keep most almond trees healthy and productive.  The profits on almonds still offset the cost of giving them more water, but Herman believes that in the future there simply might not be enough water to sustain so many almond groves.  And the California drought continues.

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Cold Train Lawsuit Against Railroad is Amended

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DSCN5413Former Cold Train LLC executives have file an amended complaint for damages against Burlington Northern Sante Fe Railway (BNSF).

An original $41 million lawsuit was filed in April 2015 against BNSF by Cold Train’s former President/CEO Steve Lawson and Managing Member Mike Lerner.  The amended complaint was filed November 20th in U.S. District Court, Spokane, WA.  It details even more significant issues about BNSF actions, which allegedly caused Cold Train Express Intermodal Service’s failure.

In particular, the amended lawsuit states that BNSF engaged in unfair and deceptive trade practices and violated the Washington Consumer Protection Act by wrongfully requiring Lerner, Lawson, and Cold Train, LLC to agree to a 95 percent  carriage requirement, which effectively prohibited Cold Train from using other rail carriers.  BNSF allegedly refused to revise its wrongful 95 percent carriage requirement despite promises to the contrary, and by refusing to allow the Cold Train to ship more than five percent of its traffic on other railroads.

BNSF’s unfair and deceptive trade practices were conducted in the course of its railroad business and caused significant harm to Lerner, Lawson, and Cold Train, LLC

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