Archive For The “News” Category
At the Hunts Point Terminal Produce Market there are four long rows. On the ground floor are the sales offices and docks. Upstairs one can stand at one end of a hallway one-third of a mile long and the other end is so far away the walls, floor and ceiling appear to come together. On each side of the massive hallway are the offices of the wholesalers.
In 1967, the new Hunts Point produce market had 125 wholesalers receiving fruits and vegetables. Today, due to mergers, consolidations and companies falling by the wayside, there are only 40 wholesalers, although their operations tend to be much larger than in the early days.
The largest company on the market is D’Arrigo Bros. Co. of New York Inc., which has 30 units. However, it is even larger when considering the family owned operation also has 30,000 acres of farming in California and Arizona. At the same time D’Arrigo and other wholesalers service thousands of produce buyers from all walks of life on a daily basis.
In some form or another, they all are dependent on the reliable service of the trucking industry to be successful in their own businesses.
I’ve known Matthew D’Arrigo, vice president of D’Arrigo Bros. for nearly 30 years. The company has a great reputation not only in the produce industry, but with produce truckers who have delivered product to the operation. D’Arrigo knows the livelihood of the company depends in part on good, reliable service from produce haulers. His company treats truckers accordingly.
He speaks of the continuing rise in costs of transportation and recalls late June 2014 when some produce rates from California to New York City hit $10,000. Many produce folks who pay the freight rates don’t necessarily like the higher costs, but rationalize their thinking knowing their competitors are pretty much paying the same rate for a truck.
Wholesalers at Hunts Point tend to depend upon truck brokers and logistics companies to handle their transportation needs. Most wholesalers simply don’t have the time, expertise or inclination to arrange the trucks themselves. — Bill Martin
(This is the third of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
When the Hunts Point Terminal Produce Market opened in the South Bronx of New York City nearly half a century ago, there were high hopes it would be a rail delivery heaven. Even to this day, there are still those who have that dream.
When the 113-acre produce complex opened in 1967 plenty of receivers were anxious to try trains attracted to the lower freight rates. However, within five years, there had been a dramatic drop in rail usage. As late as 1972 Salinas Valley produce companies were shipping vegetables to Hunts Point via rail. Today, no Salinas Valley veggies are transported on tracks.
Hunts Point had become notorious for claims, whether justified, or not. Many of those claims no doubt were justified, because it was taking the rails so long to deliver the highly perishable produce. In reality, wholesalers using rails were shifting heavily towards trucks after WWII and this only excelerated as the interstate highway system development began in the 1950s. The popular so-called unit trains, practically became history.
Some rail tracks on Hunts Point over the years have actually been covered by buildings as lack of space became more critical.
Even today, some New York politicians and some in the private sector are pushing to increase rail usage, primarily based on reducing highway traffic and environmental reasons. For example, there is a push to have long haul trucks deliver produce to New Jersey and they “ferry” it over to New York. However, that would add an extra day before the perishable products are delivered. Each added day reduces quality and the value of produce.
Hunts Point has received a federal grant as well as monies from New York City totaling about $22 million to upgrade rail siding and a transfer dock at the market. Still, trucks will continue to be the main source of transportation. Why?
If nothing else, consider this. Despite Hunts Point receiving between 2,500 and 3,000 rail cars yearly, rail cars often take up to 18 days to arrive at the market from the West. Piggybacks regularly arrive in about six or seven days. A single driver owner operator commonly arrives in five days. — Bill Martin
(This is the second of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
As the world’s largest fresh produce Terminal, the Hunts Point Terminal Produce Market has about 130,000 trucks a year delivering fresh fruits and vegetables to its wholesale distributors.
With nearly $2.5 billion in annual sales, Hunts Point serves as a distribution hub for 20 million people in the New York City metropolitan area that covers about a 50-mile radius. At any one given time there are about 8,000 people on the market, located in the South Bronx. The wholesalers also distribute fresh fruits and vegetables to Canada and as far south as Florida, plus a number of other markets east of the Mississippi River.
The big rigs begin rumbling onto the market when it opens to truck traffic at 9 p.m. on Sundays and closes at 3 p.m. for its daily clean up. The Hunts Point gate fee for big rigs is $20.
Ironically, Hunt Point opened in 1967 primarily as a rail terminal, but now an estimated 75 percent of the produce delivered is by truck, with the balance by piggyback trailers. The majority of that “pig” freight is potatoes, onions and carrots.
Still, it is shipments by truck that allow Hunts Point to operate as efficiently as it does. Yet the volume of produce arriving at the facility continues to increase, and the 48-year-old complex has outgrown its capabilities to handle all the product it needs. As a result, wholesalers on the market own or lease about 1,000 refrigerated trailers for storage purposes. — Bill Martin
(This is the first of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
By Fresh Solutions Network
Each year Produce Marketing Association’s Impact Award recognizes companies that bring innovation and excellence in packaging to supercharge the selling of fresh produce. Fresh Solutions Network was among only five winning companies recognized for excellence in packaging with their Side Delights Gourmet Petite potato line.
Fresh Solutions Network’s entry was one of 67 submitted by 56 companies. PMA judges narrowed the field to a group of 20 finalists, which were announced in September; at the recently-concluded PMA Fresh Summit in Anaheim, five overall winners were crowned.
According to PMA, “This notable award recognizes trendsetters that create and deliver bold new concepts into the industry.” Judges were tasked with ranking entrants against the following criteria; Marketing, Sustainability, Consumer Convenience, Supply Chain Efficiency/Functionality and Food Safety. Each entry had to identify how packaging innovation made the product more convenient for consumers or more easily merchandised by their store partners.
“The Gourmet Petite potato line was introduced in 2014 with the goal of providing a fresh new way to make every meal a little more interesting and enjoyable” stated Kathleen Triou, President & CEO for Fresh Solutions Network. “With Side Delights Gourmet Petite potatoes, consumers can enjoy the flavor, color and excitement of the specialty potatoes they find in fine-dining restaurants or see on their favorite cooking shows with the meals they make at home.”
“Consumers are looking for new ways to serve their favorite side dish – potatoes! – and growth of the Petite potato segment is leading the category at more than 16% year over year” continued Triou. “The Side Delights packaging is visually exciting and features contemporary, bold graphics and appetizing photography that grabs shoppers’ attention. And the stand-up pouch bag enhances shop-ability and convenience to spur incremental purchases.”
“We are thrilled to be recognized by the PMA Impact Awards. We see packaging as a vital component for increasing shopper engagement in the potato category, especially when packaging is often the only way for shoppers to judge the quality of the product inside. High marks for our packaging validates that we’ll create stronger sales on the potato table shelf,” added Triou. “Finally, we wish to congratulate the other award winners which were CMI for its Go-Go fresh cherry snacking pouch, Earthbound Farm for its PowerMeal Bowls, Mucci Farms for its New Pint tomato packaging and Wholly Guacamole for its grab n’ guac box.”
About Fresh Solutions Network, LLC:
Fresh Solutions Network is where potato growers work together for individual growth and category success. Fresh Solutions Network helps the most sophisticated potato and onion buyers grow their categories, fill product gaps, maximize category investment, and increase sales. We reinvented the procurement model by introducing a direct-supply “dream team.” Our approach gives you unprecedented access to competitive insights, collaborative innovation and optimal potato and onion assortment. Fresh Solutions Network Partners grow, pack, sell and deliver potatoes and onions directly to their retail and foodservice customers, providing seamless, transparent product supply and service. Fresh Solutions Network, LLC partners are: Sterman Masser, Inc. (Masser Potato Farms and Keystone Potato Products in Sacramento and Hegins, PA), Michael Family Farms, Inc. (Urbana, OH), Basin Gold Cooperative, Inc. (Pasco, WA), Green Thumb Farms, Inc. (Fryeburg, ME), Red Isle Potato Growers, Ltd. (Prince Edward Island, Canada), NoKota Packers, Inc. (Buxton, ND), and Sun-Glo of Idaho, Inc. (Sugar City, ID).
Cherries posted the highest growth in the fruit category, with dollar sales increasing 16.9 percent and volume increasing 36.7 percent, according to United Fresh Produce Association Q3 2014 edition of the FreshFacts on Retail report, which examines overall retail trends in produce. Overall findings show fruit and vegetable volume remaining steady compared to the previous year, while dollar sales increased slightly due to a small increase in average retail price, during the quarter. Produced in partnership with the Nielsen Perishables Group and sponsored by Del Monte Fresh Produce, FreshFacts on Retail measures retail price and sales trends for the top 10 fruit and vegetable commodities, as well as value-added, organic and other produce categories. The Q3 2014 report also features a more detailed look at the berries, citrus and packaged salad categories, as well as produce in the deli. Highlights of Q3 FreshFacts on Retail In addition to cherries posting the highest growth in the fruit category, the report’s other key findings revealed:
- Packaged salad posted the highest growth in the vegetable category, with a 9.1 percent increase in dollar sales and volume increasing 6.8 percent.
- Value-added fruits posted average weekly dollar and volume sales growth of 10.5 percent and 3.1 percent, respectively.
- Average weekly dollar and volume sales for snacking vegetables both increased by double digits compared to Q3 2013.
- Shoppers continued to seek out organic produce, resulting in significant dollar and volume sales increases for organic fruits and vegetables.
The Q3 quarterly FreshFacts report also features a spotlight on consumer demand of value-added convenience produce items. Multiple convenience items experienced double-digit growth, including fresh-cut fruits, mixed melons, snacking vegetables and value-added vegetable side dishes.
The Castellini Group of Cos., a leading distributor of fresh produce based in Cincinnati, recently announced plans to construct a vegetable processing and distribution center in Conley, GA, a suburb of Atlanta.
The location in Georgia strengthens Castellini’s presence in the Southeast, enabling it to reach 80 percent of the U.S. market within a single day by truck. “Our expansion in the Southeast will allow us to better serve current customers and continue our growth strategy by opening up new markets,” Bill Schuler, president and chief executive officer of Castellini, said in a press release.
“By working together with the state of Georgia and Clayton County, we’re able to further grow our business while bringing much-needed jobs and economic growth to the region. We appreciate all the assistance they’ve provided to help make this initiative a reality.”
Castellini offers a full line of fresh produce and value-added services, which include a complete line of organic produce, fresh-cut processing, tomato repacking and transportation, for its retail, foodservice and wholesale customers. Last year Castellini purchased General Produce Co., located on the Atlanta State Farmers market. How General Produce will fit into the scheme of things with the construction of the new facility in Conley, was not addressed in the news release.
In January HaulProduce.com marks it 4th anniversary. During this month we will have posted on the website 1,000 produce trucking reports and other news items and features.
This sojourn began in September 1974 as I began learning all I could about the produce and trucking industries and combining those two interests with what eventually led to creating the Produce Truckers Network. During its 20-years on the air it was broadcast on over 60 radio stations across the U.S. and Canada, before becoming a part of satellite radio for four years.
The essence of those radio reports continues to be viable to this day, as it re-emerged as HaulProduce.com.
It is very encouraging receiving the regular phone calls and e-mails saying the website is providing informative, useful information, whether it comes from owner operators, small fleet owners, carriers, or third parties.
Ironically, when I entered this industry it was a period leading up t0 the deregulation of the trucking industry. Unfortunately, this “deregulated” industry has to deal with more stifling regulations than ever.
After four decades of relationships established in both the trucking and produce industries, and collecting a wealth of information scattered throughout the internet, providing information you can use in your business continues to be a priority.
A special thank you goes to TransFresh Corp. that provides the Techtrol CO2 process that extends shelf live of berries and other items in-transit, thus reducing the chances for claims or rejected loads at destination.
Another special thank you to truck brokerage Cool Runnings.
I have known Rich Macleod of TransFresh and Fred Plotsky at Cool Runnings for decades and deeply appreciate their sponsorship since day one of this venture. Both companies represent the finest in business ethics and practices.
We are looking forward to more companies are coming aboard in the New Year.
However, without you, our readers and subscribers, none of this would be possible. Thank you so much for your continued support.
As we embark on 2015, this is wishing you a Happy, Healthy and Prosperous New Year filled with safe travels.
— Bill Martin
The Q3 2014 edition of the FreshFacts on Retail report, which examines overall retail trends in produce, has been released by The United Fresh Produce Association.
The study shows that during this quarter, fruit and vegetable volume remained steady compared to the previous year, while dollar sales increased slightly due to a small increase in average retail price. The report, produced in partnership with the Nielsen Perishables Group and sponsored by Del Monte Fresh Produce, measures retail price and sales trends for the top 10 fruit and vegetable commodities, as well as value-added, organic and other produce categories.
It also features a more detailed look at the berries, citrus and packaged salad categories, as well as produce in the deli. Highlights of this quarter’s report include the following:
•Cherries posted the highest growth in the fruit category, with dollar sales increasing 16.9 percent and volume increasing 36.7 percent
•Packaged salad posted the highest growth in the vegetable category, with increased dollar sales 9.1 percent and volume increasing 6.8 percent
•Value-added fruits posted average weekly dollar and volume sales growth of 10.5 percent and 3.1 percent, respectively
•Average weekly dollar and volume sales for snacking vegetables both increased by double digits compared to Q3 2013
•Shoppers continued to seek out organic produce, resulting in significant dollar and volume sales increases for organic fruits and vegetables.
This quarter’s FreshFacts report also features a spotlight on consumer demand of value-added convenience produce items. Multiple convenience items experienced double-digit growth, including fresh-cut fruits, mixed melons, snacking vegetables and value-added vegetable side dishes.
One of my favorite Christmas gifts as a kid was an electric football game. It was simply a metal (not plastic) green colored field with all the stripes, yard markers etc. Each team had its plastic players with the down linemen, receivers, backs, etc. One team was red, the other was white. You lined the defense and offense up and flipped the switch, which vibrated the field making the players move.
Today, I suppose my old football game would be like comparing a 78 rpm vinyl record to an ipod, or a trailer with block ice for refrigeration versus today’s computerized reefers units.
Many fond memories remain of my youth; the holidays with Mom and Dad, and other relatives, who are no longer with us. Then you become the Dad, and the grandpa.
There is so much to be thankful for anytime of the year, but at Christmas, reminders are so prevelent.
The only gifts I really want anymore, I already have – a loving family – and some close friends. There will be a donation to the John 3:16 Mission, and a helping hand to a family is less fortunate.
I remain so thankful for the men and women who serve and have served our nation – and their scarifices. I still consider America the greatest place on earth to live and am thankful for freedom we have here.
To those in trucking, no private industry provides a more important service to our country. It requires experise, professionalism and hard work, delivering to Americans virutally everything found in our homes.
I’ll close by providing you with part of the lyrics to a wonderful Christmas song you probably never heard by musician Don White from Tulsa, OK. I have also posted the video of Don performing the song below . God Bless, and wishing you a very Merry Christmas. — Bill Martin
IT’S CHRISTMAS TIME, I’M COMING HOME – by Don White
Far away, I’m feeling so lonely
Hi Mom, just calling to say
This year I’m coming home
I know I won’t forget
the reason we celebrate the season
But it’s Christmas
I’m coming home
With the USDA forecasting imports into the United States will exceed exports, that is good news for produce haulers. Imported produce continues to grow, especially during the winter months. U.S. ports, particularly in the Southeastern USA are handling more imported fresh perishables than ever.
The USDA is projecting stronger growth for U.S. imports of fresh fruits and vegetables. Fresh fruit imports in FY 2015 will total $10.3 billion, 8.9 percent higher than 2014 and 23 percent above fiscal year 2013. Fresh vegetable imports are forecast at $7.1 billion in 2015, 7 percent above FY 2014 and 8 percent above fiscal year 2013. The top imported fresh commodity in 2014 was Mexican tomatoes at $1.6 billion, 1 percent above 2013. U.S. imports of Mexican avocados surged in value in 2014, rising from $920 million to $1.23 billion.
U.S. imports of fruits and vegetables will continue to outpace exports. U.S. fresh fruit and vegetable exports will reach $7.9 billion in fiscal year 2015. Strong exports of fresh fruits and vegetables will help total U.S. horticultural exports reach record levels. At $7.9 billion, fresh fruit and vegetable exports for fiscal year 2015 (October 2014 through September 2015) are forecast 6.4 percent ahead of fiscal year 2014’s total of $7.42 billion.
The U.S. exported $600 million in fresh berries to Canada in FY 2014, representing the biggest commodity export value to any country. U.S. berry exports to Canada were 2 percent down from 2013, but 5 percent above 2012. U.S. exports of lettuce to Canada topped $400 million, and both grapes and apples tallied more than $200 million in export sales to Canada. The top export to Mexico was apples at $257 million, down about 25 percent compared with 2013.
Imports from distribution centers near South Florida ports – grossing about $2300 to Chicago.