Archive For The “News” Category

Annual Roadcheck Inspection Blitz Starting June 2nd

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DSCN0161Here comes the Roadcheck, the annual inspection blitz.  It is a joint effort of the Commercial Vehicle Safety Alliance, Federal Motor Carrier Safety Administration and others, is set to take place starting tomorrow June 2nd and continuing through June 4th.

About 10,000 inspectors from state, local and federal enforcement agencies will  perform nearly 70,000 inspections on trucks and buses over the 72-hour period.  They will be stationed at 1,500 inspection points around North America.

Cargo securement will be this year’s special emphasis, though inspectors will still be primarily performing the full 37-step Level I inspections — the most thorough inspection — throughout the week.

In early June of 2014, the Roadcheck resulted in a vehicle out-of-service rate of 18.7 percent and a driver out-of-service rate of 4.8 percent.   Also last year over 72,000 drivers and vehicles were inspected.

CVSA has on its site resources for owner operators and fleet drivers.  Here are  9 top things inspectors look for:  brakes, coupling devices, lighting, securement of cargo, steering, suspension, plus tires, wheels, rims and hubs.

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Study Shows Meal Preparation, Attitudes Toward Health are Changing

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DSCN4877Attitudes towards health and wellness as well as meal preparation are among the biggest evolving trends in U.S. consumers’ eating habits, according to new research from Acosta Sales & Marketing.

Nine out of 10 shoppers prefer eating at home, driven by a desire for comfort (61 percent), cost (60 percent) and convenience (59 percent), the firm’s The Evolution of Eating survey revealed.

However, more Americans are turning to ready-to-eat and take-and-bake solutions, including “hybrid homemade meals,” such as a grocery store rotisserie chicken with a salad-in-a-bag and homemade potatoes, rather than cooking from scratch.

About 46 percent said they prepared meals at home over the past year, 48 percent when considering only the Millennial generation, who also reported eating prepared foods from grocery stores at home at a much higher rate than total U.S. diners (27 percent vs. 16 percent, respectively).  Millennials also reported enjoying cooking the most compared with their older counterparts.

“The way our society views food has come a long way since the TV dinner heyday of the 1950s.  From sharing recipes and photos of food on social media to a widespread fixation on healthy food and fads, we have seen a seismic shift in consumers’ attitudes toward food,” said Colin Stewart, senior vice president, Acosta. “Eating has evolved right along with society, and consumer brands and retailers must consider the dynamics, demands and preferences of today’s modern family to deliver successful food and meal solutions.”

Acosta finds that consumers are becoming even more educated about the connection between diet and wellness, and are taking efforts to transform their shopping and eating behaviors, as America’s health trend shows no signs of slowing down.

In fact, the majority of shoppers (61 percent) ranked reading food labels as very important to their health and wellness concerns when they grocery shop, and more than half reported trying to eat more fruits and vegetables in the past year. And shoppers across all segments reported eating more whole grains and buying foods with fewer preservatives.

The Evolution of Eating report was compiled using research conducted by Acosta, as well as the company’s experience working with the nation’s largest CPG manufacturers and retailers.

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Lettuce Ladies Dawn Bikinis

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LettuceLady2Has anyone ever accused head lettuce of being sexy?  Probably not, at least not until now.

The activist group Peta recently set up shop at the corner of famed Sunset Boulevard and Ivar Avenue, handling out free boxes of vegan burgers and hotdogs just before the Memorial Day weekend. Lettuce Ladies set up in Tinseltown at noon on Thursday, May 22,  to entice passersby to sample some veggie-centric foods they may not have considered before.

According to an NBC Los Angeles report, the ladies were to bare their bodies and their cause with signs feature produce promotions such as  “let vegetarianism grow on you” and “turn over a new leaf, go vegetarian.”

This isn’t the first time PETA has used this approach to push produce.  According to the association’s blog, the Lettuce Ladies have been to countries like Australia, the Philippines, and Kenya, as well as having made a stand in full lettuce garb on Capitol Hill and the NFL Draft while serving vegetarian spins on hot dogs and wings.

While the Lettuce Ladies usually are volunteers for PETA’s cause, well-known names and spokespeople for the association like actresses Pamela Anderson and Elizabeth Berkley have also sported lettuce bikinis and gowns for the campaign.

We almost forgot to mention – Salinas Valley lettuce is grossing about $1200 to L.A. (Is that to Hollywood, or the L.A. Produce Market?)

 

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Increasing Produce Imports for Produce Truckers

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DSCN4441The U.S. balance of trade for fruits and vegetables is swinging heavily to imports, with avocados and berries seeing huge growth over the past decade, according to the U.S. Department of Agriculture.  While this may not help improve the country’s trade deficite, it means increased loading opportunities for produce haulers.

The USDA in its annual report of trade projections, estimates the trade deficit in fresh fruits and vegetables will grow from about $7.6 billion in 2014 to $16.5 billion by 2024.
The total value of fresh fruit and vegetable exports will grow from $7.3 billion in 2014 to $10.7 billion in 2024, while imports will grow even faster, climbing from $14.9 billion in 2014 to $27.2 billion in 2024.
The projections are built on trade trends over the past 10 years.
The last time the U.S. had a trade surplus in fresh fruits and vegetables was 1980, when the margin of exports over imports was $25 million. By 1990, the trade deficit in fresh fruits and vegetables was $530 million, increasing to $1.8 billion by 2000 and $6.2 billion by 2010.
Imports will supply 53 percent of U.S. fruits and nuts by 2024, up from 45 percent in 2014, while the USDA said the share of vegetables from imports will rise from 19 percent in 2014 to 26 percent in 2024.
Lower trade barriers have boosted U.S. exports and imports.
Climbing imports
“Twenty years ago you never would have thought of having citrus (imports) in the summer or grapes in November,” said Mayda Sotomayor, CEO of Seald Sweet International, Vero Beach, Fla.  “You just had gaps, and consumers lived with gaps.”
Today, Sotomayor said those gaps are now mostly gone, thanks to new varieties, growing areas and storage technology.

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Wegmans, Publix and Trader Joe’s Dominate Ratings

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DSCN0467+1In Consumer Reports’ new supermarket survey, Wegmans, Publix and Trader Joe’s remain at the top of the ratings of 68 of stores nationwide. Also earning high overall satisfaction scores were Fareway Stores, Market Basket (Northeast), Costco and Raley’s. Once again Walmart Supercenter landed at the bottom, along with A&P and Waldbaums, two smaller regional chains.

“Once upon a time, low prices, checkout speed and variety were attributes that mattered most to supermarket shoppers,” Tod Marks, senior project editor at Consumer Reports, said in a press release. “While these aspects are still critical, more and more consumers demand better fresh foods, more organics and a greater variety of locally made and grown foods.”

Many Americans believe that good health starts with a good diet. As a result, consumers have become increasingly savvy label readers, wary of preservatives, chemicals and unpronounceable ingredients and the demand for minimally processed foods and shorter ingredients lists has risen significantly. And supermarkets are taking seriously their new role in the health of their customers. Consumer Reports found that 95 percent of chains have a registered dietician on staff to assist with merchandising and marketing decisions. And, more than 75 percent of stores say they carry more locally grown or made goods than they did in 2012.

The report, “America’s Best, Freshest Supermarkets,” which includes the complete Ratings of grocery stores, is available in the May 2015 issue of Consumer Reports and at www.ConsumerReports.org. The feature also decodes common terms such as “fresh,” “natural” and more.

Consumer Reports National Research Center surveyed 62,917 subscribers about overall satisfaction with their supermarket shopping experiences based on 111,208 visits between March 2013 and July 2014. The top-rated supermarkets also received high scores for overall freshness — quality of produce, meats, poultry, bakery items and store-prepared foods as well as store quality, which included scores for staff courtesy and store cleanliness. Walmart Supercenter, consistently one of Consumer Reports’ lowest-rated grocers since 2005, earned low marks in every category other than price.

In addition to traditional characteristics such as service and cleanliness, Consumer Reports asked subscribers to rate their grocers on the selection of local produce and the price of organics at their stores. Only around six in 10 were completely or very satisfied with the quality of their store’s produce, meat, and poultry offerings, according to Consumer Reports’ survey.

Just three of the chains — Wegmans and national chains The Fresh Market and Whole Foods — earned stellar produce scores. Seventeen were below average. Eighteen retailers received low scores for produce variety, notably two big warehouse clubs — Sam’s Club (part of Walmart) and BJ’s Wholesale Club (in the East) — as well as Target and Target Supercenters.

Consumer Reports also asked subscribers about the prices of organic options available at their stores: Trader Joe’s, Wegmans, Costco, and Sprouts Farmers Market received high marks.  And, to determine the real-world price differences, Consumer Reports conducted a study by shopping for 15 similar organic and conventional goods, including bananas, milk, and chicken, at eight national, regional and online grocers. The organic items cost 47 percent more, on average, although in some cases, some of the organic versions cost the same or less than the conventional ones. For example, organic Grade A maple syrup cost 11 percent less than the conventional version at Price Chopper.

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Independent Trucker Earnings Up; Trucks Hauling 70% of Freight

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ATA1The trucking industry brought in $700.4 billion in revenue in 2014, according to a report released this week by the American Trucking Associations. That’s the highest total revenue in history for the industry and the first time trucking has surpassed the $700 billion mark, ATA says.

The combination of a significant jump in freight volume in the year and tightening capacity spurred the revenue uptick, says ATA Chief Economist Bob Costello.

ATA’s report,its annual American Trucking Trends, also showed the trucking industry moved 68.8 percent of all domestic freight, or 9.96 billion tons, in 2014.

And the $700.4 billion in revenue accounted for 80.3 percent of all freight transporation spending, ATA says.

Owner Operators/Independents

Owner-operators, led by independents and flatbedders, had a record year for net income, according to averages from ATBS, the nation’s largest owner-operator financial services provider. Leased operators and independents together cleared an average $56,167 during 2014. That’s 7 percent above the 2013 average, $52,406. Strong freight demand, a driver shortage and plunging diesel prices contributed to the increase.

The 2014 total “is $2,000 higher than we predicted and most of it comes from the fourth quarter fuel cost reduction,” says Todd Amen, ATBS president and CEO. “All segments had a really good year.” Net income for independents and flatbedders topped $60,000. Independents’ income showed the biggest gain over the year, 8.7 percent. Flatbed haulers, however, experienced virtually no change in income in 2014. That reflects flatbedders experiencing stronger demand and rates a few years before dry van and reefers haulers, says Gordon Klemp, head of the National Transportation Institute. NTI’s National Survey of Driver Wages tracks compensation of drivers at medium-size and large fleets. “Most of the independent contractors operating in the independent and flat markets are on percent of load type programs, so their pay adjusts quicker,” Amen says. “The independents are certainly more in the spot market as well.  So these two segments reflect a really good freight market last year. They have higher highs in good times and lower lows in bad times, more volatile than the other segments.”

2014, net income for the groups tracked by ATBS was:

  • Independents: $60,157
  • Dry van: $54,490
  • Flatbed: $60,510
  • Reefer: $52,064

Klemp says falling fuel prices helped owner-operator earnings in two ways. One is owner-operators receiving less than a 100 percent fuel surcharge pass-through have seen their share of fuel costs dropping proportionately. The other is that because surcharges are adjusted weekly after the U.S. Department of Energy releases its average fuel prices, a surcharge will overcompensate an owner-operator as long as prices continue to fall during the week.

Sign-on bonuses have been stable in recent months, Klemp says. The mid-point is $3,000 to $6,000, with the top tier $6,500 or more. Team bonuses remain very strong, and he has seen them as high as $15,000. Many fleets use bonuses selectively by region, to meet demand, and often keep high bonuses in place only briefly.

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New Apple Variety, Pazazz, Going Nationwide Next Year

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PazazzPazazz, a new apple variety will roll out nationally in 2016.

According to a recent article in Progressive Grocer,  Minneapolis-based Honeybear Marketing has helped leading retailers across North America and Canada boost sales when seasonal apple sales typically slow sharply .

Des Moines, Iowa-based Hy-Vee has been a key retail participant in Honeybear’s varietal development program for the past three years.  Bill Kelley, AVP and director of produce purchasing for the 235-store regional retailer, said that introducing new varieties is fundamental to Hy-Vee’s mission of bringing unique and healthy food items to their customers.

Kelly cites its “great color, firm texture and a burst of flavor that quickly brings customers back into the store for repeat purchases.”

Aside from Hy-Vee, Central Market, Cub Foods and Coborns have also created multi-tier Pazazz apple displays and sampling stations at premium front-of-store locations in order to increase consumer exposure to the new variety.

Pazazz is grown in Minnesota and Washington.  Additional orchards in New York, Washington, Wisconsin and Nova Scotia, Canada will generate more volume to expand the scope of the Pazazz program.  The variety was originally developed by Doug Shefelbine from Holman, WI;

Harvested shipped in late fall with a careful balance of sugars and starches, Pazazz is available from late December onward as the starches convert to sugars, which gives the apple a blend of high brix with a perfect complement of sweet and tart flavors, exceptional crispness and great texture.

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Vidalia Onion Investigation by GA Dept. of Ag is Underway

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DSCN5768

(Onions on the top are from Stanley Farms, Vidalia, GA, and are being investigated.  The onions on the bottom row are marketed and sold by Shuman Produce in Reidsville, GA.)

Georgia Commissioner of Agriculture Gary Black and officials from the Federal-State Inspection Service met May 7 with Vidalia onion growers to hear allegations from growers that Stanley Farms recently processed as many as 400 truckloads of conventional yellow Florida onions at the same facility where it processes Vidalias without separating the two as required by law, an infraction that carries a fine of $5,000 per incident up to $20,000.

Stanley Farms, a Vidalia, GA, onion facility was acquired last year by interests connected to billionaire Bill Gates.

Growers at the meeting also raised allegations that Stanley may have packed those yellow onions as Vidalias. According to statute 2-13-134 of the Vidalia Onion act of 1986, misrepresenting other onions as Vidalias is a felony carrying potential punitive measures consisting of a fine of not less than $1,000 nor more than $5,000 or by imprisonment for not less than one nor more than three years, or both.

“That’s what hurts us, is for anybody to think we would do anything to hurt the Vidalia image,” Brian Stanley, company sales manager, said. “It’s a tough situation and that’s why we’re ready to get all the information out there and let them look at it and be transparent with it. They’ll see that we’d never in any way want to hurt Vidalia’s heritage. We want to get it behind us as quickly as possible. Whenever the department looks through all this, hopefully we can get it behind us very rapidly so we can move on. We’ve just got to get that information to the right people, then we can talk about it soon.”

At issue is the ferociously defended Vidalia trademark. Over two decades ago Vidalia growers were granted a federal marketing order protecting their crop from fraud. Stringent rules apply to the packaging and labeling of Vidalia onions, including prohibitions against comingling Vidalias with other onions in a processing facility or misrepresenting any other onion as a Vidalia.

Vidalia onions – grossing about $3500 to New York City.

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California Drought May Result in Higher Produce Prices

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DSCN5306The California drought, which has prompted emergency conservation efforts in its fourth year, has forced California farmers to abandon thousands of acres or pay more to water them, according to a recent article in the Pittsburg Tribune-Review. Anxious grocers and restaurants are watching closely for impact on the supply and price of berries, walnuts, avocados, tomatoes and other pantry staples.

Over a fifth of all American farms growing fruit, tree nuts and vegetables are in California, according to the USDA.  The Golden State grows more than 200 crops and is the nation’s dominant supplier of nuts and produce including grapes, olives, peaches, raspberries, strawberries and lemons.

Issues on the farms have not reached the produce aisle.  Typically, increases in farm prices for fresh fruit and vegetables show up at the retail level a month later.  But a confluence of factors have counterbalanced the price pressures from water scarcity, the Tribune-Review article states.

A complicated array of transportation and labor costs, the contracts that restaurants and supermarkets have with suppliers, market competition and macro economic trends are among the factors that determine the price of food.  Only 19 cents of every dollar spent on food is tied to farm costs, said Annemarie Kuhns, a USDA economist.

Price inflation has been tamped down so far because the strength of the dollar against foreign currencies made foreign produce cheaper, Kuhns said. Low fuel prices has eased transportation costs.

That could change as fuel prices rebound and the drought extends further into the growing season. Water-intensive crops such as berries and nuts, where California holds an overwhelming share of the market, stand to be the most affected, said Timothy Richards, a business professor at Arizona State University.

“If we don’t have that supply from California during the season, then prices will run up,” he said.

California accounts for 86 percent of avocado production in the United States, and if  unable to replace that supply with avocados from Mexico, it would have to raise menu prices.

Salinas Valley mixed vegetables – grossing about $4200 to Dallas, $7100 to New York City.

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Truck Shortages Has Nogales Looking to Rails

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DSCN4334Importers of Mexican produce at Nogales are frustrated over the lack of adequate truck supplies, high freight rates and are looking to the railroads to solve some of their problems, according to a recent news story in The Packer, a weekly newspaper for the fresh produce industry.

Struggling to acquire enough refrigerated trucks, complaints were common as the holiday season approached in late 2014.  One importer described it as the worst holiday season they ever experienced getting enough trucks.  However, some say the equipment shortages extend well beyond the holidays.  As a result importers are taking a look at rail service.

Rail is conducive to a number of Mexican vegetables crossing the border at Nogales ranging from had shell squash, cucumbers and other hard grown Mexican items.

The Union Pacific Railroad is  currently upgrading 20 miles of rail near the U.S.-Mexican border to make it easier for inspectors to check loads.  There also is development of a rail switching yard in Tucson, which would help rail service.

If rail service is fast enough, items such as bell peppers also would be considered.  One shipper complained of paying up to $6 per box in some cases to ship product from Nogales to the East Coast this past vegetable season.

Nogales is pretty dead this time of the year with the exception of the Mexican grape season which has just got underway.

 

 

 

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