Archive For The “News” Category
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.
At Freshway Produce, General Manager Ricardo Roggiero has been observing the growth of exotic fruit consumption in the U.S. and Canadian markets. Among the products most poised for growth, he says, is pitaya, known by many U.S. consumers as dragon fruit.
The fruit comes with an eye-catching red or yellow exterior.
“The most popular is the red variety. It is a little more tasteless, but because of its characteristics, it is widely consumed,” Roggiero said. “There are larger displays [of them], which increases consumption.”
He said the price of pitaya has become more accessible for North American consumers, allowing more people to include the fruit in their diets.
“Projections show that in the United States, exotic fruit consumption could grow about 5 to 10% per year,” he said.
Pitaya stands out among the growth projections. He forecast 50% growth in pitaya exports to the U.S. in coming years, followed by more moderate growth.
“In 2023, something very interesting happened with pitaya, with a TikTok campaign by certain influencers who promoted yellow pitaya. It had a very strong impact on consumption,” he said. “I believe that the U.S. market can consume all the hectares we have cultivated in Ecuador, but it will take some time as the consumer gets familiarized with the product.”
Something unique about Ecuadorian pitaya is that it is not irradiated in the United States.
“That is a big difference from products that come from Vietnam, Asia, and Mexico,” he said. “The yellow pitaya has the seal of origin that it is an endemic fruit of Ecuador, in particular the Palora variety, which is larger and has excellent brix degrees between 22 to 24 degrees.”
Increases in U.S. imports of Mexican produce commodities have been led by berries and avocados in the last decade, USDA trade statistics reveal.
From 2014 to 2023, U.S. imports of Mexican berries (excluding strawberries) rose from $648 million in 2014 to 42.64 billion in 2023, a gain of 307%.
For Mexican avocados, the USDA reported U.S. imports rose 215% over the last decade, from $1.27 billion in 2014 to $2.67 billion in 2023.
U.S. imports of Mexican strawberries rose 181% over the past decade, climbing from $480 million in 2014 to $1.35 billion in 2023.
U.S. imports of fresh broccoli and cauliflower jumped 192% in the last decade, from $157 million in 2014 to $459 million in 2023.
Value of 2023 U.S. imports of Mexican produce commodities, with percentage compared with 2014:
- Onions — $410 million, up 69%.
- Melons — $450 million, up 35%.
- Tomatoes — $2.75 billion, up 68%.
- Peppers — $1.56 billion, up 68%.
- Citrus — $853.5 million, 139%.
- Grapes — $832 million, up 144%.
- Cucumbers — $800.8 million, up 76%.
- Lettuce — $534.4 million, up 206%.
- Mangoes — $475.5 million, up 81%.
- Squash — $418 million, up 38%.
- Asparagus — $359.9 million, up 50%.
- Bananas — $207.9 million, 75%.
- Beans — $130.7 million, 117%.
- Celery — $89.4 million, up 352%.
- Eggplant — $81.5 million, up 79%.
- Carrots — $79.8 million, up 174%.
- Cabbage — $62.5 million, up 392%.
- Peas — $47 million, up 38%.
- Pineapples — $44.6 million, up 102%.
- Garlic — $40.2 million, up 340%.
- Radishes — $30.2 million, up 87%.
By USDA ARS
Kiwifruit and their tangy green flesh are routinely purchased and devoured throughout the year by people across the nation. This is no surprise. Kiwis are high in Vitamin C, dietary fiber, and potassium. The subtropical fruit is also a favorite of many southern U.S. producers since the delicious fruit is traditionally grown in warmer climates. California produces the vast majority of kiwis that are sold in our local grocery stores, but due to recent research advancements from U.S. Department of Agriculture scientists, this may no longer be the case.
This was not a snap decision. The research actually began in 1995 when scientists from the Agricultural Research Service’s Appalachian Fruit Research Service (AFRS) planted second-generation seedlings that originated in Rome, Italy. Only two vines survived the cold winter temperatures between 1995 and 2015, with a record low temperature during that period of –5.8 F. Of those two vines, ‘Tango’ (female) and ‘Hombre’ (male) were planted and evaluated in the AFRS’ orchards before a new crop proved that these particular cultivars could grow and thrive in traditional Mid-Atlantic and Northeastern winter climates.
In a recently published study, researchers noted that both vines grew vigorously, and received little pruning before bearing fruit. There was also no need for supplemental irrigation, fertilizer, pesticides, or a warm climate for growth.
“This cultivar isn’t currently found in the grocery store,” said Research Biologist Scientist Chris Dardick. “The flesh and texture are very similar to the kiwifruit that people already enjoy and so is the flavor. It’s easy to grow, extremely pest and disease resistant, and readily available for use by producers and nurseries in colder climate conditions.”
Tango’s fruit yields high quality in terms of size and soluble solids and are comparable to the commercial A. deliciosa cultivar Hayward. It can also remain in cold storage for extended periods of time.
The male pollinizer ‘Hombre’ is not patented and can be publicly made available upon request. The female kiwi ‘Tango’ is patented by the USDA-ARS and can be distributed to nurseries or producers once they obtain a licensing agreement. Both plants (‘Hombre’ and ‘Tango’) are essential to produce the kiwifruit. Limited quantities of budwood and/or plants from ‘Tango’ and ‘Hombre’ are also available upon request for evaluation. For more information, please contact AFRS@usda.gov.The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in U.S. agricultural research results in $20 of economic impact.
The U.S. Federal Trade Commission (FTC), charged with promoting consumer rights, sued to block what could be the largest supermarket merger in U.S. history. A merger of Kroger and Albertsons, the FTC said, would lead to higher prices, store closures, and job losses.
The $25-billion deal, announced in November 2022, has seen opposition from the United Food and Commercial Workers Union, as well as multiple senators and attorneys general. The FTC suit is one of the merger’s greatest challenges so far.
“Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” said Henry Liu, director of the FTC’s Bureau of Competition, in a public statement.
“Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”
As part of the merger plans, the companies intend to divest 413 stores, eight distribution centers, and five private label brands to C&S Wholesale Grocers. The FTC suit has deemed the measures “inadequate”.
“The combined Kroger and Albertsons would have more leverage to impose subpar terms on union grocery workers that slow improvements to wages, worsen benefits, and potentially degrade working conditions,” an FTC statement said.
Kroger responded Monday, stating it would challenge the suit in court and stand behind the merger. Kroger said it would not negatively impact grocery competition and would result in lower prices for consumers and more investments in employee wages.
During 2023, Peruvian mandarin exports totaled 33,878,377 kilos for a FOB value of US$35,847,910. The figures are relatively similar to the 33,563,070 kilos exported in all of 2022 for US$ 37,235,491, Agraria.pe reports.
According to Agrodata’s report, the United Kingdom was the main destination for these shipments in 2023, with purchases totaling US$ 10,186,000.
It was followed by the United States with US$ 7,286,000, Canada with US$ 5,706,000, the Netherlands with US$ 5,361,000, Japan with US$ 2,873,000, Ireland with US$ 1,316,000, and Spain with US$ 427,000.
Among the main exporting companies were Procesadora Laran SAC with sales of US$ 11,720,939, Consorcio de Productores de Fruta SA with US$ 10,583,378, Procesadora Torre Blanca with US$ 2,027,968, Sterling Perú SAC with US$ 1,751,868, Corporación Frutícola de Chincha SAC with US$ 1,264,521 and Agrícola Las Marías SAC with US$ 1,143,403, among others.
A decline in the frequency of online grocery orders drove a 1.2% year-over-year drop in total online sales to $95.8 billion in the U.S. online grocery market in 2023, according to the annual results of the Brick Meets Click/Mercatus Grocery Shopper Survey released Thursday, Supermarket News reports.
It’s the second year in a row that the order frequency of active monthly users (MAUs) declined, according to the report, which surveyed 21,000 shoppers in the U.S. That year-over-year contraction in online orders came in at 6% compared to the prior year, surpassing the 4% year-over-year decline in 2022, the report noted.
The decline in orders was exacerbated by a 300 basis-point increase to 34% in the number of MAUs who said they made only one online grocery purchase per month in 2023.
Despite the drop in online orders for the year, the base of MAUs rose 2% year over year. Shoppers appear to have largely settled on a receiving method with 70% saying they exclusively relied on either pickup, delivery, or ship-to-home, up 172 basis points from the previous year.
Pickup held steady as the most popular way of receiving online orders, growing its share of online sales by a modest 56 basis points to end the year at 46%. The report added that the expanded availability of delivery methods due to increased competition did not appear to help grow the receiving method, which experienced a sales decline of 0.9% for the year and captured 37% of the online sales market. Meanwhile, the ship-to-home method dropped 66 basis points to make up 17% of the market for the year.
“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click, in a statement. “Despite the challenges, pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotions that aided delivery in 2023.”
Mass merchandisers and hard discount grocers expanded their shares of the online grocery market in 2023 by 460 basis points to end the year with 45% due to strong MAU growth. The growth came at the expense of the supermarket format, which dropped 390 basis points to 29% for the year, a result of declining MAUs and order frequency.
Shoppers increasingly chose to place their online purchases through both mass merchandise and supermarket formats for the year as the cross-shopping rate increased by 150 basis points from the previous year. Nearly a third (30%) of shoppers purchased online groceries from both in the same month over the year, the report noted.
The repeat intent rate – the share of MAUs who are very likely to use the same service again – for the pickup and delivery methods of online purchases declined in 2023 by 63 basis points to 61%, a trend driven solely by a decline in repeat intent for grocery services, which fell 311 basis points to 54%. That’s compared to an increase in repeat intent for mass merchandise shoppers, which grew by 48 basis points to 66%.
“As Walmart grabs market share through its price leadership and omnichannel strategies, regional grocers find themselves in a precarious position. To remain competitive, they must intensify their efforts in improving customer engagement, offering tailored personalization, and building loyalty. This strategic shift is not just about weathering the storm of price inflation and intense competition, but about thriving in it,” said Mark Fairhurst, global chief growth officer at Mercatus, in a statement. “By providing a shopping experience that is both seamless and highly personalized, grocery retailers can retain their existing customer base and gradually attract a wider audience.”
Total online grocery spending declined 18 basis points to capture 12.5% of the market for the year. When considering just the pickup and delivery methods – most stores do not offer ship-to-home as a delivery method – the decline was a mere 6 basis points year over year and made up 10.4% of all grocery spending in 2023.
By Scott Fontes ALC Orlando
International logistics plays a crucial role in facilitating global trade and commerce by connecting businesses across continents. The Red Sea, a key maritime route, is currently experiencing significant disruptions that have led to impacts on international logistics. The ongoing geopolitical tensions in the region, coupled with environmental challenges, are reshaping the landscape of maritime transportation. Shipping times and costs have increased, adding significant delays and costs. Oil and gas prices have jumped following news of attacks, and shipping insurance premiums have nearly doubled for some carriers. Even if attacks stopped today, the effects will take a significant time to resolve.
The Red Sea has become a focal point for tensions and conflicts, influencing the safety and efficiency of shipping lanes. By January 2024, only 200,000 standard containers were passing through the waterway per day, compared with around 450,000 in December 2022. Strategic chokepoints, such as the Bab-el-Mandeb and the Suez Canal, are vital passages for vessels navigating between the Mediterranean and the Indian Ocean. Political instability in the surrounding areas can lead to heightened security concerns, affecting the smooth flow of goods. According to the AP, “The governments of Australia, Bahrain, Canada, Denmark, Germany, Netherlands, New Zealand, and South Korea joined the U.S. and U.K. in issuing a statement saying that while the aim is to de-escalate tensions and restore stability in the Red Sea, the allies won’t hesitate to defend lives and protect commerce in the critical waterway.” Instead of sailing through the Red Sea, ships traveling between Asia and Europe are now being re-routed around Africa and the Cape of Good Hope. Stakeholders in international logistics are closely monitoring these developments to assess potential disruptions to supply chains.
Furthermore, environmental factors like extreme temperatures, strong currents, occasional coral reefs, and weather events pose challenges to maritime operations in the Red Sea. Rising sea levels and changing weather patterns can impact navigation, port infrastructure, and overall logistics efficiency. Companies engaged in international trade must adapt to these environmental shifts, incorporating resilience measures into their logistical strategies.
As the Red Sea continues to play a pivotal role in global trade routes, a comprehensive understanding of both geopolitical and environmental dynamics is essential for the sustainable functioning of international logistics networks. By embracing innovation and responsible practices, we can ensure that the Red Sea remains a vital and sustainable lifeline for international trade in the years to come.
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Scott Fontes began working for the Allen Lund Company in 2023 as an international logistics specialist in the Orlando office. Scott joined the company with years of experience in transportation, most recently as a logistics manager for an OTR transportation company.
scott.fontes@allenlund.com
Mexican watermelon shipments hit 1.199 million tons at the end of November 2023, exceeding the annual totals for 2021 and 2022.
If this upward trend continues, it could be among the top 10 producing countries, according to Mexico’s Ministry of Agriculture and Rural Development.
The U.S. is the largest importer, showing the quality reputation obtained in terms of quality, health and safety, coupled with the effort and commitment of the producers, the ministry said.
Data from the Agri-Food and Fisheries Information Service (SIAP) indicate that the volume of the penultimate month of last year represents an increase of 0.4 and 1.8 percent compared to the 1.194 million tons and 1.177 million tons reported in 2021 and 2022, respectively.
Sonora was the largest producing state – of the 27 that cultivate the fruit – contributing 373,084 tons from January to November 2023.
Chihuahua follows, with 143,229 tons; then Jalisco, 102,795 tons; Veracruz, 94,096 tons; and Campeche, with 80,058 tons, the latter entity went from ninth position in 2022, with 36,985 tons, to fifth place.
On the other hand, the ministry indicated that the participation of watermelon amounts to 4.7 percent in national production and annual per capita consumption in the country is 3.5 kilograms.
The above because – according to specialists – watermelon is one of the healthiest fruits as it has water that makes it ideal against dehydration and is very refreshing in hot weather, it has vitamins A, B and C and helps strengthen the immune system.
The federal agency pointed out that, in addition, the greater volume of watermelon has allowed volumes exceeding 700,000 tons per year to be allocated abroad, where the United States is the largest importer, with an amount of $153 million in 2022.
Japan, Canada, Belize, Cuba, Colombia, and the UAE are also among the destination countries for Mexican watermelon, a fruit that belongs to the cucurbit family and is characterized by its red pulp and sweet flavor, he explained.
An 8 percent increase from 2023 is forecast for Mexican blueberry shipments, according to a new USDA report.
The U.S. is the top export market for Mexican blueberries, accounting for about 97% market share.
Mexico’s 2024 blueberry production is pegged at 81,000 metric tons, an increase because of sufficient water access and growing export demand, according to the report.
With more than 71,000 metric tons exported in 2022, Mexico ships more than 95 percent of their blueberries to the U.S. market.
The rate of production growth for Mexican blueberries is projected to be slower in 2024 than it was in 2023 due to competition from Peru, according to the USDA.
In 2023, Mexican blueberry production reached an estimated 74,800 metric tons, a 12 percent increase over the previous year due to production innovations and strong export demand.
Mexico’s blueberry industry has seen rapid growth in the past decade, with rising prices encouraging growers to expand production or switch from other crops to blueberries.
Mexican blueberry volume grew more than 80 percent between 2017 and 2022, with Mexico currently the world’s fifth-largest blueberry producer.
Mexico’s harvest use to start in early October, peaking between late April and early May. In contrast, for the 2024 harvest, producers have taken steps to delay the start of the harvest to early February in response to competition from Peru, which offers a similar product at lower prices during the October to January period, according to the USDA.
Producers are actively switching away from the biloxi blueberry variety to take advantage of the ongoing development of improved varieties that provide higher yields and better taste. 23 percent of the blueberry area is currently planted with the biloxi variety and 74 percent is planted with proprietary varieties.
The vast majority of Mexican blueberries are exported. Mexican blueberry exports totaled 71,509 metric tons in 2022, down about 2 percent compared to 2021.