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Between January and October of 2023, Chile exported over 2.9 million tons of fruit, valued at $6.85 billion FOB.
Compared to the same period in 2022, this is a decrease in exported volume of 5.4 percent and an increase of 9 percent in value, as reported by Odepa.
Of this total in value, 70.7 percent is for fruit, 20.1 percent to processed fruit (juices, oils, preserves, frozen, dehydrated), and 9.1 percent to dried fruits (walnuts, almonds, hazelnuts, among others).
Fresh fruit volume reached 2,254,000 tons, amounting to $4.85 billion FOB for the period. These exports registered a decrease in volume of 6.6 percent, and in value an increase of 13.2 percent compared to the same period of the previous year.
The main commodities exported in the analysis period in this group were cherries, registering a volume of 302,842 tons, equivalent to $1.82 billion FOB, which represents 37.6 percent of the total value of fresh fruit exports in the analysis period. An increase of 6.1 percent in volume and 21.9 percent in value is evident in shipments of this fruit, compared to the same period in 2022. The main destination is China (91.1 percent of the total value of exports of Chilean cherries were sent to that country).
Table grapes are next in volume, with 495,308 tons equivalent to $892.7 million FOB, which represents 18.4 percent of the total value of fresh fruit exports. There was a decrease in shipments of 18 percent in volume and an increase in value of 3.5 percent, compared to the same period of the previous year, with the U.S. standing out as the main buyer in this period (47.7 percent) and China (13.1 percent).
In third place are apples, with shipments of 461,500 tons equivalent to $484 million FOB, which represents 10 percent of the total value of fresh fruit exports. There is a decrease of 20.3 percent in volume shipped and 1.1 percent in value, compared to the same period of the previous year. The main destination country was the U.S. (concentrating 14 percent of the total value of apple shipments), followed by Colombia (concentrating 13 percent), and Brazil (10 percent).
And in fourth place are blueberries, with shipments of 72,992 tons and $327 million FOB, equivalent to 6.7 percent of the total value of fresh fruit exports. There is a decrease of 19.5 percent in volume shipped and 8.8 percent in value compared to the same period of the previous year. The main destinations were the U.S. (48.6 percent) and the Netherlands (19.3 percent).
CJ Buxman, a third generation San Joaquin Valley grower/shipper, and former President of Fruit World Company, has started Sunny Cal Farms in Reedley, CA.
Sunny Cal Farms is offering organic and conventional California-grown specialty and traditional citrus, along with heirloom and novel grapes.
The original Sunny Cal Farms was started in 1981 by CJ’s father, Carl Jasper Buxman, and packed under the Jasper label, which is also being resurrected. CJ, along with his wife and partner Maureen, wanted to use the historic company name and label to rekindle the yearning for fruit that puts quality and flavor above all else.
“It’s great to continue the Sunny Cal legacy,” relates CJ “We’re farmers first, and are committed to providing the highest quality, most flavorful fruit. We’re also focused on listening to our customer needs, and satisfying those needs with the best customer service possible.”
The Buxman’s grow 120 acres of organic and conventional citrus and table grapes, manage another 100 acres, and have long-standing relationships with other foundational California family farmers who share the Buxman’s commitment to providing quality fruit and exceptional customer service.
As curators of specialty and unique products, Sunny Cal Farms can bring program buying consistency to small and mid-sized retailers. Sunny Cal Farms is currently shipping organic and conventional citrus, including specialty varietals, lemons, and navel oranges.
“Our long-standing grower relationships helps us secure a consistent supply of the best quality fruit, and allows us to fill orders,” CJ added. “We’re dedicated to honoring all our commitments and will only sell what we can deliver.”
Trade numbers through October show little change in U.S. fresh produce export shipments compared with a year ago, while U.S. imports of fresh fruits and vegetables had a modest increase in the last 12 months.
The USDA reported total exports of fresh produce from November 2022 through October 2023 totaled $6.9 billion, up 1% compared with a year ago but down 4% from 2018.
U.S. vegetable exports were rated at $2.8 billion for the period, down 1% for the period but up 9% from 2018; fresh fruit exports totaled $4.2 billion, up 2% compared with a year ago but down 11% compared with 2018.
U.S. imports of fresh produce totaled $32 billion from November 2022 through October 2023, up 5% from a year ago and 43% higher than 2018.
U.S. fresh fruit imports were pegged at $19.5 billion, up 1% from the previous year and up 40% from 2018; imports of fresh vegetables were valued at $12.5 billion, up 12% from a year a ago and 50% higher than 2018.
Top U.S. exports for November 2022 through October 2023, compared with 2022 and 2018.
- Apples — $869.1 million, down 1% from 2018 and down 18% from 2018.
- Berries — $798.8 million, down 3% from 2022 but 12% above 2018.
- Grapes — $622.6 million, down 4% from 2022 but down 18% from 2018.
- Oranges — $593.2, up 8% from 2022 but down 16% from 2018.
- Lettuce — $592.1 million, up 1% from a year ago and up 23% from 2018.
Top U.S. imports for November 2022 through October 2023, compared with 2022 and 2018.
- Berries (excluding strawberries) — $4.2. billion, down 1% from 2022 but up 74% from 2018.
- Tomatoes — $3.2 billion, up 15% from 2022 and up 34% from 2018.
- Avocados — $2.88 billion, down 17% from 2022 but up 20% from 2018.
- Bananas — $2.75 billion, up 10% from 2022 and 12% higher than 2018.
- Grapes — $2.3 billion, up 7% from 2022 and up 46% from 2018.
DAT’s 2024 Freight Rate Focus report notes pandemic-sparked disruptions of 2020 and 2021 stretched routing guides beyond their threshold and pushed truckload rates to record highs. The high rates attracted a record number of new carriers, with the number of for-hire interstate carriers nearly doubling.
While truck rates are expected to rise to some degree, the DAT report said it may not be until the middle of 2024.
“The truckload market cycle is bottoming out as carriers continue to exit the industry,” the report said. “However, without any significant change in truckload demand expected before the second quarter of 2024, the market may remain in its current state for quite some time – likely until at least midway through 2024.”
Other shocks to the global supply chain, including war, could change pricing quickly, the DAT report said.
DAT’s prediction is current market conditions will continue until late Q2 when the market should finally find equilibrium.
“The truckload market should revert with spot rates rising over contract rates sometime in the first half of the year, and demand will normalize as the supply chain disruptions that began during the pandemic work their way out of the system,” the report said.
Average U.S. refrigerated truck rates (per mile)
- Jan. 3 — $3.88.
- Feb. 7 — $3.72.
- March 7 — $3.48.
- April 4 — $3.43.
- May 2 — $3.37.
- June 6 — $3.58.
- July 4 — $3.59.
- Aug. 1 — $3.57.
- Sept. 5 — $3.69.
- Oct. 3 — $3.41.
- Nov. 7 — $3.33.
- Dec. 5 — $3.21.
(Source: USDA)
Freight costs for produce shippers declined during 2023, but the rate dip may be setting up a return to firmer pricing in 2024.
In January 2022 for a load of refrigerated produce out of California to the East Coast averaged $5.19 per mile, according to the USDA. By late July, the rate declined to $3.55.
Following drought restrictions imposed in May, which saw daily transits and vessel capacity reduced, the Panama Canal Authority (ACP) announced Dec. 15 that it will increase the number of daily transits to 24 starting in January.
This comes as rainfall and lake levels for November proved to be better than expected, coupled with the positive outcomes from the Canal’s water-saving measures.
Additionally, the Panama Canal will allow one booking slot per customer per date, with some exceptions for quotas offered to vessels competing through the reservation system.
These measures allow the majority of vessels that want to transit the Canal to have a better chance of obtaining a reservation.
Currently, 22 vessels transit daily, divided into 6 Neopanamax and 16 Panamax. This restriction is in response to the challenges posed by the current state of Gatun Lake, which is experiencing unusually low water levels for this time of the year due to the drought induced by the El Niño phenomenon.
The canal is supplied by two nearby lakes which received 50% less rain than usual between February and April.
With this, 2023 became the second driest year in recorded history of the Panama Canal watershed, which led to the implementation of an operational strategy focused on water conservation and transit reliability.
Approximately 3% of global maritime trade volumes traverse the Panama Canal. Over 50% of the tonnage navigating through the maritime passageway originates from the trade lane connecting the East Coast of the U.S. to Asia, followed by South and Central America’s routes. Agricultural products are among the key commodities transported through the canal.
The Hunts Point Produce Market located in New York City’s South Bronx is the world’s largest wholesale produce distribution center supplying fresh fruits and vegetables to 22 million people each year.
The 112-acre complex in the Bronx has approximately 30 merchants, moves over 2.5 billion pounds of produce sourced from 49 states and 55 countries each year.
S. Katzman Produce reports it sells various products the year around because it is produced in different places with different seasons.
Literally hundreds of trucks ranging from 18 wheelers to straight jobs are deliver produce to the market, or distributing it from the facility. Hunts Point also receives about 150 rail cars per month, providing volume that is miniscule to that of trucks.
The giant produce markets employees 2,000 people and has about 7,000 visitors daily.
Hunts Point opened in 1967 and is owned by New York City. It has received three rounds of funding totaling nearly $400 million, but business owners say more is needed to fully modernize.
A major upgrade at the produce center is building adequate refrigerated storage to replace the approximately 1,000 diesel-powered refrigerated trailer units that idle on-site.
Between January and September of 2023, the Peruvian avocados were exported to 36 different countries with a total market value of $953 million. Compared to the previous year, this was a 9% increase from the $874 million reached in 2022, according to The Peruvian Exporters Association (ADEX).
In terms of volume during this period, 594,778 tons were exported, 3.3% more year-on-year.
The industry struggled with challenging weather conditions during August, which reduced the month’s harvest volume year-on-year from 48,401 tons to 45,041 tons. However, regions like Pasco and Ica experienced more than an 85% increase in production volume.
The United States stands as the third main destination of Peruvian avocados this year, with a total import value of $135 million. Only The Netherlands and Spain have a bigger share of the market with $293 million and $185 million in total value, respectively.
Chile and the U.K. finish the top five list of Peruvian avocado importers with a shared import value of $97 million, according to ADEX.
Leading export companies were Avocado Packing Company S.A.C., Westfalia Fruit Perú S.A.C., Camposol S.A., Virú S.A., Sociedad Agrícola Drokasa S.A., Agrícola Cerro Prieto S.A., and Agrícola Pampa Baja S.A.C.
Wishing everyone one of you and those you love a Merry Christmas! Pray for peace in a turbulent world. May the love of Jesus Christ live within all of us.
Sun World International announced the addition of eight importers to its portfolio of North American licensees. These are Canadawide Fruits, Direct Source Marketing, Flavor Farms, Fresh Latina, International Produce Group (IPG), Pandol Bros, Sbrocco International and Sun Fresh International.
The new additions bring the company’s panel of licensed importers to 28 companies.
Each of these companies holds a license to distribute and market Sun World’s full line of proprietary grapes in the United States and Canada from licensed Chilean, Peruvian, Brazilian, European, and South African suppliers.
Additionally, licenses include the right to import fruit from new and existing varieties developed by Sun World, marketed under the company’s leading consumer brands, such as AUTUMNCRISP, MIDNIGHT BEAUTY, SABLE SEEDLESS, ADORA SEEDLESS, and SCARLOTTA SEEDLESS.
“We are pleased to be able to bolster and expand our global footprint through the appointment of these extraordinary importers,” says Petri van der Merwe, global licensing co-director for Sun World.
“As we continue our strategic growth and expand our marketing efforts for our consumer brands, like Autumncrisp, we are ensuring ease of access to our proprietary fruit. Our goal is to maximize the revenue for our licensed growers while increasing consumer exposure to our proprietary table grape varieties and consumer brands,” he adds.
By Jon Manning, ALC Cincinnati
Creighton Abrams once said, “When eating an elephant, take one bite at a time.” AI is that elephant in the logistics space that everyone seems to be talking about. Let’s not kid ourselves here, we humans love the opportunity to have something within our grasp, that ultimately will make our lives less laborious, and can provide boundless information whenever and wherever we need it. Within the past week, I would have loved to have had something tell me how to make a beef Wellington from scratch or provide me with college football picks. That time will come, I’m sure, but even before the time comes the conversation about policy and ethics of AI will certainly be debated in many forums.
Ultimately, the idea is that AI can and will eventually surpass a team of people in breadth and scope of work, in mere seconds, it will become the new standard. I opened ChatGPT recently and typed in, “How will AI help supply chains?” The answer was shocking. In a matter of seconds, it gave me a plethora of ways that AI could be beneficial, such as demand forecasting, inventory management, predictive maintenance, blockchain for transparency, and risk management. For those thought-provoking scholars, that means AI can carve vast efficiencies in any supply chain. In a recent article from Nasdaq, “AI is being used worldwide to improve production times and boost safety in manufacturing plants in what is referred to as the ‘Industry 4.0’ era.” Will the human element still be applicable? The short answer is yes. While AI is revolutionizing the supply chain by optimizing processes, predicting demand, and enhancing efficiency, it will never replace the invaluable human connection, compassion and sensible foresight that supports the industry.
So, where would I guess the logistics industry to be in 5 to 10 years from now? Perhaps we’ll see a litany of providers offering up to customers a comprehensive “AI” program to help manage their supply chain stem to stern, or, most likely, staying the course and navigating the nuances of logistics using the best and brightest talent in the industry, which is none other than human capital. This remains essential for fostering collaboration, resolving complex issues, and navigating the unpredictable challenges inherent in the dynamic world of supply chain management. AI may streamline operations, but the industry’s success will always count on the symbiotic relationship between technological innovation and the irreplaceable human element that is required to cultivate and grow businesses.
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Jon Manning is the general manager of the ALC Cincinnati office. He started in the logistics industry working in transportation sales role in 2002. Manning graduated from Bowling Green State University with a B.A.C. degree in Communications.
jon.manning@allenlund.com