Archive For The “News” Category
by Columbia Marketing International (CMI)
Recently released crop estimates for the 2015 Washington state apple shipments predict a decline of 10.5% from the record harvest in 2014. According to some industry experts, the predicted decline in the overall crop is a reflection of significant changes occurring at the orchard level.
The report released last week estimates significant production increases in Honeycrisp and sharp declines in Red and Golden Delicious—two apples that have been icons of Northwest apple growers for more than 50 years.
The late summer crop estimate is issued each season by the Washington State Tree Fruit Association. This year’s report reveals a total apple shipments estimate of 125,210 million cartons compared to a 140 million box crop last year, a decline of over 10%. The report predicts in the coming year that production of Honeycrisp will leap by 33%, Red Delicious will drop by 26.2% with Goldens declining by 24.5%. Gala is predicted to decline by 3.5%, Fuji will drop 5.8% with Granny Smith production unchanged.
According to Steve Lutz, Vice President of Marketing at CMI, the industry report reflects significant changes growers have made over the last few years in response to market conditions and shifting consumer demand. “Market prices for apples send very clear signals to our growers on what varieties they should expand and which apple trees should be removed,” said Lutz. Lutz says that it is not uncommon to see a decline in total production in the year immediately following a bumper crop like the Washington industry experienced in 2014.
Lutz added that production trends at CMI are consistent with the statewide estimate. “Our growers are reporting they expect production declines in Reds and Goldens to be larger than the state average,” he said. “We will have significant increases in Honeycrisp, particularly from newly planted orchards with high-colored fruit, so we’re really excited to bring these apples to our customers.”
“The hidden news in the 2015 crop report is that newer variety apples continue to make up for the erosion in production of the legacy varieties,” said Lutz. “CMI growers have made huge investments so that we have plenty of high-colored Honeycrisp on the way. To maximize the success of this variety, we’re introducing our new Happy Bee™ Honeycrisp pouch bag program, which will drive retail excitement this Fall. We’ll also have significant increases in production of our popular branded apples like Ambrosia™, KIKU® and Kanzi®.”
Lutz says organic apple and pear production also appear to be a bright spot in the coming year. “CMI leads the organic apple and pear category with our #1 Daisy Girl brand. Our growers estimate that in the coming year our production of our Daisy Girl Organic apples and pears will jump by about 10%.” He added, “That’s great news because organics have been the hottest growth driver in the category.”
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Columbia Marketing International (CMI) is one of Washington State’s largest growers, shippers and packers of premium quality cherries, apples, pears and organics. Based out of Wenatchee, WA, CMI delivers outstanding fruit across the U.S.A. and exports to over 60 countries worldwide.
By Full Tilt Marketing
New York, NY— What began as a grassroots effort to celebrate the nutritional benefits of kale as a trending superfood, has grown into a worldwide movement. This year will mark the third annual National Kay Day, which is today.
In recent years, kale’s popularity has grown in both supermarkets and on restaurant menus. In fact, Whole Foods Market now buys and sells more kale than all other greens combined and other retailers have reported triple digit sales increases. This growing interest in kale has growers and manufacturers excited about the opportunity to promote not just kale, but all leafy greens.
This year’s celebration will include online and offline events, including signature events in New York City. The day will kick off with the kale army making an appearance on the Today Show plaza and hosting a kale tasting for media influencers. The day will continue with the founders celebrating a kale lunch with students at a local NYC Public Elementary School, then joining sponsor San Miguel Produce to kick off a Cooking with Kale series at Manhattan’s Food & Finance High School and end with the signature kale party.
In addition, to consumer events, National Kale Day has touched 10 countries, retailers, restaurants and schools with some of the largest school districts in the country including New York Public Schools and Los Angeles Public Schools planning to serve up kale. Dr. Ramsey remarked, “I have been a proponent of brain foods like kale in my practice for years, and there is nothing more exciting than seeing the potential to reach kids early on in their lives and teach them about healthy foods in a fun way.”
National Kale Day is a public event of grassroots volunteers established for the celebration and promotion of the health benefits and culinary versatility of kale.
Full Tilt Marketing is a consulting firm with offices in the Southeast and Midwest. The firm specializes in produce and food marketing. Working with commodity boards and grower/shippers, Full Tilt assists clients with new product development, brand management, retail promotions, online marketing, social media and marketing communications.
The popularity of organic products with consumers has reached an all-time high, according to the Organic Trade Association, in Washington, D.C. The group issues an annual survey on organic sales trends.
The industry is expecting growth to continue, as organic becomes “more mainstream and conventional grocers continue to increase their interest in the industry.
In 2014, traditionally conventional grocers not only increased their interest in organic but they also indicated they would continue to carry organic products. For example, Safeway was mentioned as having established itself a veteran with its O organic line. Major retailers, such as Kroger, Target, Wal-Mart, and Costco have declared their interest in organic as a part of their future growth strategies.
“Obviously, the numbers show tremendous growth, with consumers driving organics as a whole, and that’s not going to change,” said Laura Batcha, CEO and executive director of the OTA.
Batcha emphasized the only restraint on the category is supply.
“We hear from folks across the supply chain that the limiting factor is the availability of product, and we’re seeing so many retailers not only getting into organics but making it a strategic priority,” she said.
That includes regions in which organics had not been big sellers in the past, including the Midwest and Southeast, Batcha said.
“Our expanding customer and grower base goes to prove that organics is not going away,” said Cherie France, marketing manager with Porterville, Calif.-based Homegrown Organic Farms.
Batcha pointed to markets in the Southeast, in which 68% of households are purchasing organics, as showing unprecedented sales of organics.
Recently aboard the International Space Station, astronauts got a rare treat: fresh lettuce. In space, food is freeze-dried, prepackaged, and often not very tasty.
NASA’s Veggie Project had on goals – to bring salad to space. The result was red romaine lettuce.
“It’s just one of those things that we have to learn if we’re going to step into the solar system and go to Mars,” says Trent Smith, the Veggie project manager. “How will you grow your plants?”
It turns out, farming in space is not as simple as you’d think. First, there’s the problem of water. On Earth, gravity pulls it down toward the roots, but in space, it can ball up in the corner of a pot and leave the roots high and dry. Smith’s team has developed a solution: a “pillow” of aerated clay, to which you add water. The clay provides structure for the roots to spread out in zero G.
Second, plants also need fresh air to breathe. On Earth, wind keeps fresh air coming, but inside the space station, there is no wind. So fans must constantly circulate air.
Finally there’s the issue of light. The space station is whipping around the Earth fast: “Every 90 minutes there’s a new sunrise, so for a plant, that would be extremely confusing,” Smith says. The Veggie team added some artificial lights to keep the orbiting lettuce on an Earthly schedule.
The system took years for engineers on Earth to develop. But growing Monday’s salad on the space station didn’t take long at all.
“July 8 it started. We had 33 days of growth, and the plants were just fantastic, I mean, big, large leaves,” Smith says.
The astronauts went with a simple balsamic dressing and reported that the space salad tasted out of this world.
This wasn’t the first time astronauts had grown lettuce in space. Last year, astronauts grew an equal amount of tasty greens. They were frozen and returned to Earth for careful analysis — though Smith suspects the crew at the time may have sneaked a bite: “I am fairly certain we didn’t get all the lettuce home last time,” he says.
This lettuce could be just the tip of the iceberg. There are plans for cabbage, cherry tomatoes and even potatoes. As we leaf into the final frontier.
About 12% of all produce sold in the U.S. is organic, according to a new study — almost double the amount found in another study.
SPINS, a market research firm for the organic and natural foods industry, arrived at the 12% figure through analysis of IRI Shopper Network bar code data from 100,000 U.S. households, according to a news release from the Washington, D.C.-based Organic Trade Association.
The SPINS figure is significantly higher than FreshLook Marketing retail scan data, which found that organic accounts for 6.9% of total produce sales.
Dick Spezzano, president of Monrovia, CA.-based Spezzano Consulting, said he’s never heard a number as high as 12%.
At some of the specialty retailers Spezzano works with, up to 15% of their produce is organic, but at more conventional retailers the numbers are lower.
“Safeway’s goal is 10% — some of their stores are 8%, some 12%. Kroger is about 8% or 9%, and I’m guessing Wal-Mart is lower than that.”
But double-digit annual growth in organic produce sales is real, Spezzano said, and within about two years, the 12% share could be reality. Growers are getting better at growing organic, he said, and as a result, the price gap between organic and conventional is shrinking.
Earl Herrick, owner and president of Earl’s Organic Produce, San Francisco, can only guess at organic’s share of total produce sales, but he does know business is booming.
“Eight percent, 10%, 12% — what do I know? But we definitely agree that the market is vital, strong and continues to grow.”
Earl’s has enjoyed 15% annual growth in recent years, Herrick said.
New SPINS data also claims that all categories of organic food accounted for nearly 5% of total U.S. food sales.
Organic produce sales account for more than 36% of all organic food sales, according to SPINS. Organics’ share of all produce sales has more than doubled in the past 10 years, according to SPINS.
Organic food sales totaled $35.9 billion in 2014, 11% more than the year before, according to a new Organic Trade Association survey conducted by Nutrition Business Journal.
Between 68% and 80% of households in U.S. southern states and almost 90% of households on the West Coast and in New England purchased organic in 2014, according to the survey.
More than 200 companies responded to the survey, according to the association.
It’s common knowledge and has been for decades that the majority of truckers, especially long haul truckers oppose have higher weight limits since the last weight increase from about 73,280 pounds to 80,000 pounds occurred 30 years ago. The primary reasons drivers are against putting more weight in their trailers are pretty obvious.
First of all, the added weight results in greater wear and tear on their equipment. Added weight also results in increased consumption of diesel fuel and less miles per gallon. Equally important is the guys and gals behind the wheel of big rigs realized hauling more weight with the negatives just mentioned, certainly doesn’t mean they will be receiving more money in the form of higher freight rates.
This said, the rest of the information below is mostly what is coming from the other side of this issue.
New federal legislation that would give states the option to raise the Interstate system truck weight limit to 91,000 pounds for vehicles with six axles is supported by 32 organization such as United Fresh Produce Association, the National Potato Council and groups representing other industries such as food, manufacturing, beverage and forestry industries.
The group sent a letter in support of heavier trucks to Chmn. Bill Shuster (R-Pa.) and Ranking Member Peter DeFazio (D-Ore.) of the U.S. House Transportation and Infrastructure Committee.
The legislation was introduced by U.S. Rep. Reid Ribble, R-Wis., and is called the Safe and Efficient Transportation Act (H.R. 3488, known as SETA). Supporters claim the bill that is consistent with safety concerns and say heavier trucks won’t harm highways and bridges. They also state the legislation would result in fewer trucks to move more product in a safe way, thus reducing truck traffic.
With nearly 70% of all U.S. freight moved by trucks and total freight tonnage expected to grow nearly 25% over the next 10 years. This legislation claims it will increase truck capacity by 13% without adding more vehicles and ultimately reduce energy use and greenhouse gas emissions.
They also state the higher weight limit would reduce transportation costs for fresh produce.
“With trucking being the overwhelmingly dominant mode of domestic transport for fresh fruits and vegetables, it is imperative that our industry be able to move commodities by promoting efficiency and cost-savings, as well as safety and maintaining infrastructure as much as possible,” read a statement issued by the United Fresh Produce Association.
This will be a key component of the transportation message that United Fresh will deliver to Congress at the Sept. 28-30 Washington, D.C. Conference by United Fresh.
The letter previously mentioned referenced a recent study revealing a 91,000 pound truck with six axles can stop at the same distance traveling at 60 miles per hour as its 80,000 pound counterpart with five axles. NPC believes the study proves that truck weight reform is a commonsense and safe approach to lower the number of truck miles driven, improve highway safety and reduce wear to pavement. Rep. Ribble plans to offer H.R. 3488 as an amendment to the transportation act for highway funding.
Fresh produce price inflation will be low again in 2015 as it resists California’s drought, the USDA’s Economic Research Service has forecast.
The agency recently reported fresh fruit prices will increase just 2.5% to 3.5% this year, and fresh vegetable prices will rise 2% to 3%.
In May, the USDA said fresh fruit prices rose 1.7% compared with April, but were down 5.7% from May 2014. Fresh vegetable prices were 0.2% lower in May compared with April but up 1% compared with a year ago, according to the USDA.
For all food items, the Consumer Price Index for food was unchanged from April to May but 1.6% above year-ago levels.
In 2014, food price inflation was close to the 20-year historical average of 2.6%, despite the effect of the drought in the Southwest and California.
While the ongoing California drought could have “large and lasting effects on fruit, vegetable, dairy and egg prices,” the USDA at this time projects overall food-at-home inflation of about 1.75% to 2.7%.
If oil prices continue to fall or remain low this year, projected decreases in production and transportation costs may be passed along at the retail level, according to the USDA.
Since the opening of the Mexican superhighway that basically connects the Pacific Ocean produce growing areas with the Lower Rio Grande Valley of Texas, refrigerated truck traffic has gradually increased and more fruits and vegetables are crossing the border into the U.S. at Pharr/McAllen than at Nogales, AZ.
Both truck and auto traffic from central and western Mexico can reach the Pharr International Bridge and enter the U.S. five to seven hours faster than prior to the super highway being completed. lt took 15 years to construct the Mazatlan-Durango highway that has 115 bridges and 61 tunnels.
South Texans love to brag about how the new highway has allowed them to compete with Nogales and point out that within the past year more fresh produce is crossing the border at Pharr/McAllen than at Nogales. South Texas is now the number one point of entry for fresh produce entering the U.S., accounting for 60 percent of the imports. Leading the crossings are avocados followed by tomatoes.
This apparently is just the beginning as some observers are predicting in the next three to five years, produce volume from Mexico crossing the border in the Lower Rio Grande Valley will increase 40 to 45 percent. Besides saving time on shipments originating in Mexico, substantial savings on diesel fuel is cited for shipments destined from markets in the eastern half of the United States.
To accommodate the increasing traffic at the Pharr/McAllen border crossing, new warehousing is being constructed, as well as an expedited lane to the estimated 2,200 trucks crossing the border daily. Truckers pay a toll at the point of entry amounting to up to $23, depending upon the number of axles. Within a few years, truck traffic is predicted to hit 3,000 per day.
Mexican fruits and vegetables crossing the border into South Texas – grossing about $2400 to Chicago; $3800 to New York City.
Price inflation has slowed to a crawl in 2015 for retail fresh produce.
Little or no inflation this year is expected for retail fresh fruit prices, while the top end of retail fresh vegetable price inflation is just 1.5%.
The USDA’s Economic Research Service reported in late July that the agency’s updated forecast for retail price inflation for fruit is now in a range 0% to 1% for 2015, rising to 2.5% to 3.5% next year. For fresh vegetables, the USDA predicts retail prices will increase from 0.5% to 1.5% and rising 2% to 3% next year.
Retail price inflation for fresh fruits in 2014 was 4.8%, while fresh vegetable retail prices were off 1.3% compared with 2013. The 20-year average inflation rate for retail fresh fruits is 3% and 3.2% for vegetables.
Fresh produce prices will increase at a lower rate than the overall food price index. The agency predicts overall supermarket food prices will increase 1.75% to 2.75% this year, with higher inflation for beef and eggs. In 2016, the USDA predicts retail food prices will increase from 2% to 3%, in line with the 20-year average of 2.6%.
Though the California drought has not caused fresh produce inflation this year, the USDA said it could play a role in food prices next year.
“The ongoing drought in California could have large and lasting effects on fruit, vegetable, dairy, and egg prices,” the USDA said in the forecast. On the other hand, the agency said lower trending oil prices could cause lower production and transportation costs to be passed on to consumers.
The USDA said farm-level prices for growers are down compared with a year ago. The agency predicts farm level prices for vegetables will decline 4% to 5% this year, while farm-level fruit prices will sink between 5% and 6%. For 2016, the USDA predicts grower prices for fresh fruits will rise 1.5% to 2.5%, while grower prices for fresh vegetables will increase 1% to 2%.
by Organics Unlimited
Organics Unlimited is pleased to announce the 10th anniversary of its nonprofit program, GROW. Throughout the month of September, Organics Unlimited will execute a special GROW Month campaign in order to raise awareness of the social responsibility program and inspire more distributors, retailers and consumers to become involved.
Since 2005, GROW has raised nearly $2 million to advance the rural Mexican and Ecuadorian communities surrounding its organic banana farms. With each box of GROW organic bananas sold to retailers and distributors, a portion of the proceeds go to the GROW fund. These donations are managed and distributed by the International Community Foundation and are used for youth educational scholarships in Mexico, clean water programs in Ecuador, dental and vision care in Mexico, micro-loans for small businesses and more.
Mayra Velazquez de Leon
“In celebration of the 10th anniversary of GROW organic bananas, we have released a new GROW banana label that features the special hashtag #GROWTURNS10,” said Organics Unlimited President and CEO Mayra Velazquez de Leon. “We hope this limited-time GROW label will inspire consumers to become more involved with the social responsibility campaign and share how their GROW purchases are making a difference in the lives of others.”
Consumers can join in GROW Month throughout September and help raise awareness of the humanitarian work of GROW by purchasing GROW organic bananas and sharing the hashtag on Facebook, Twitter and Instagram. Tips for how to share the #GROWTURNS10 message – such as organic banana recipes, inspirational stories of GROW scholars, crafts for children and more – are available at GROWbananas.org.