Archive For The “News” Category
(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.
The 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.
Importers 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.
By Loblaw Companies
BRAMPTON, ON – Smaller misshapen produce that tastes great and is good for you, is now available at Real Canadian Superstore® and select no frills® locations in Ontario and select Maxi® stores in Quebec. Furthering its commitment to offer affordable, quality products to customers, Loblaw Companies is introducing the no name® Naturally Imperfect™ line of fruits and vegetables today. Starting with apples and potatoes, no name Naturally Imperfect produce costs up to 30 per cent less than traditional produce options found in store.
“We often focus too much on the look of produce rather than the taste,” said Ian Gordon, senior vice president, Loblaw Brands, Loblaw Companies Limited. “Once you peel or cut an apple you can’t tell it once had a blemish or was misshapen. no name Naturally Imperfect, is a great example of Loblaw and our vendors coming together to find an innovative way to bring nutritious food options to consumers at a great price.”
Produce involved in the no name Naturally Imperfect program was previously used in juices, sauces or soups, or may not have been harvested due to their small size. With this program, Loblaw Companies is working to ensure farmers have a market for smaller, misshapen fruit ensuring it does not go to waste.
The Tampa (FL) Port Authority plans to construct a refrigerated warehouse, which apparently touched off a battle between another Tampa Bay port over which one would dominate the fruit importing business.
The TPA plans to invest $20.8 million in a cold storage and transload facility at the port of Tampa Bay.
The warehouse would mark the port’s return to the fruit importing business and is viewed as competition by neighboring Port Manatee in Palmetto, FL.
Port Manatee officials expressed concern that the other port would try to dominate fruit handling after the authority voted to authorize construction funding.
The port’s projects to deliver goods directly from ship to market and would include a 50-60 car capacity rail siding that could help the port better serve Midwest customers.
“Port Tampa Bay has the unmatched capacity to build unit trains,” a PTA spokesman said. “Part of the port’s overall growth strategy is to be able to serve shippers in the state of Florida with alternative, cost-efficient transportation solutions, so that they will not have to use out-of-state ports for their shipments.”
The port handles approximately 8 million tons of containerized cargo each year with tropical fruits and vegetables among its biggest items, according to port information.
The port’s 207,000 square feet of refrigerated space is used by Coral Gables, Fla.-based Del Monte Fresh Produce NA Inc., and Fresh Quest Produce Inc., in Plantation, Fla.
Responsible for handing nearly a third of all cargo moving in and out of Florida, the Tampa port port’s yearly 36 million net tons of volume is dominated by dry and liquid bulk items.
At 521,825 million net tons, general and containerized cargo accounts for less than 2% of its business.
The USDA has published its vegetables yearbook and the document updates per capita statistics for fresh vegetables and give other valuable insights. The spreadsheet for fresh market vegetables updates trade and other supply statistics through projected numbers for 2014:Imports supplied 27.9% of U.S. fresh vegetable use, up from 26.7% in 2013 and 24.4% in 2010;
- Exports account for about 6.6% of U.S. domestic production, down from 6.6% in 2013 and 6.7% in 2010;
- Per capita use of fresh vegetables (all per capita stats are farm weight) 141.6 pounds in 2014, up from 140.7 pounds in 2013 but down from 144.3 pounds in 2010;
Some of the bigger gainers in fresh per capita use:
- Asparagus per capita 1.6 pounds, up 14% from 1.4 pounds in 2013;
- Carrot per capita at 8.5 pounds in 2014, up 6% from 8 pounds in 2013
- Cauliflower per capita at 1.5 pounds in 2014, up 15% from 1.3 pounds in 2013;
- Sweet potatoes per capita at 7.5 pounds in 2014, up 12% from 6.7 pounds inn 2013;
- Bell peppers 10.6 pounds in 2014, up 6% from 10 pounds in 2013;
The USDA states:
- Mexico accounts for 69% U.S. fresh vegetable imports by value, compared with 18% for Canada, 4.5% for Peru and 2% for China.
- Mexico provides 76% of hothouse tomato imports, compared with 22% from Canada, 0.88% from Guatemala and 0.24% from the Dominican Republic;
- For onions, Mexico supplies 71% of U.S. imports, followed by 13% for Peru, 9% for Canada and 2% for Chile.
The emergence of such brands as Kroger’s Simple Truth, Supervalu’s Wild Harvest and Aldi’s Simply Nature highlight how the private label category is evolving. Manufacturers and retailers have tried to address consumer concerns about wellness and nutrition with more affordable healthy food options, and several retailers have built private label brands around a position of affordable healthy eating.
“Store brands have moved far beyond cheap generic knock-offs to become trusted, quality lines that can compete effectively with national brands,” said David Sprinkle, research director for Packaged Facts. “They usually have higher profit margins for retailers than name brands, help differentiate a retailer from competition, and help build consumer loyalty.”
Private label accounted for almost a fifth of the $530 billion total food and beverage market dollar sales in 2013. In its report “Private label foods & beverages in the U.S., 8h edition,” Packaged Facts estimated retail dollar sales of private label food and beverages were $102 billion in 2013, up about 2%. Food products accounted for approximately 80% of the private label segment’s sales.
Looking ahead, the market research firm projects retail dollar sales of private label food and beverages will grow by a compound annual growth rate of 4% and reach $122 billion in 2018. The increase is due in part to the segment’s attractiveness to consumers seeking to eat healthy on a budget. Sales of private label food are expected to reach $98 billion.
Natural and organic private label brands have been around for a number of years led by Safeway’s O Organics, Stop & Shop and Giant’s Nature’s Promise, Food Lion and Hannaford’s Nature’s Place, and Supervalu’s Wild Harvest. The brands continue to expand and update with a focus on healthy product attributes.
Other retailers have evolved natural and organic positions to more modern wellness brands that shift focus from product attributes to lifestyle enhancement. Kroger’s Simple Truth, Target’s Simply Balanced, and Aldi’s Simply Nature all attempt to provide consumers with solutions for taking care of themselves and their families. The brands cross many food and beverage categories with affordable, nutritious products that are natural or organic, and free of artificial ingredients. Kroger has invested heavily to build Simple Truth and the company stated in the first quarter of 2014 it expected the brand to reach $1 billion in sales this year.
S. Katzman Produce Inc. is purchasing the unites of Morris Okun Inc.on the Bronx, N.Y.-based Hunts Point Terminal Market.
It continues a trend of fewer but larger wholesalers on the world’s largest produce wholesale terminal market. In 1967 there were 125 wholesalers. Today, there are 40 wholesalers, but it soon will be 39.
Katzman, which also operates Katzman Berry Corp., contracted to buy Okun’s 16 units on Row B after purchasing five units on Row D in late January, said Steve Katzman, president.
The purchase expands Katzman’s market presence from 21 units to 37 units on the 262 unit terminal,
Okun owner Roni Okun has decide to retire. The Okun name will not be retained.
Katzman Produce owns 100 vans storing produce alongside the terminal and Katzman said the purchase should help easy some of the market’s space headaches.
“This will help us tremendously in the expansion of our business,” he said. “We will have more refrigeration space and have plans to modernize the units. This will help us with not having to double-handle product and helps by not breaking the cold chain.”
Distributing a full line of fruit and vegetables to retailers and foodservice purveyors throughout the Tri-State region, Okun began operations in 1926 as a small family-owned venture on the old Washington Market in south Manhattan.
A fourth-generation family company, Katzman sells conventional, organic and specialty produce to retailers, restaurants, distributors and caterers throughout the Northeast as well as to customers in Canada, Europe and the North Atlantic.
Katzman’s produce lineage traces to 1890 when Samuel Katzman sold bunched greens and other vegetables from a horse and wagon.
The Katzman operation is also a partner with Top Banana LLC in Top Katz Brokers LLC.
Scout Logistics Corporation, North America’s leading perishable logistics specialist, is pleased to announce the promotion of Mr. Jamie Klayman to Vice President. Jamie, a 8+ year veteran in the business, will be responsible for continuing to build sales within the North American market with specific focus on interstate loads transitioning from the Western states and Texas, to major international produce hubs throughout North America.
Previously, Mr. Klayman has served as Sales Manager – US Freight, where he led his team to record sales in 2014. Furthermore, Mr. Klayman played an integral part in Scout Logistics’ recent accreditation as one of Canada’s 50 Best managed Companies.
“With Jamie’s promotion, Scout is looking forward to continued growth throughout the North American Market and a renewed focus on interstate freight,” said Lorne Swartz, President of Scout Logistics Corporation. “He is well known and respected in the industry and his outstanding ability to manage both client and carrier needs seamlessly, only strengthens our position in this market. His promotion is well deserved and is a result of his hard work and outstanding contributions to Scout’s exceptional growth.”
Jamie has almost a decade of produce logistics experience managing ground shipments for some of North America’s largest chains. “I am excited to take on this opportunity and increase Scout’s presence in the US market”, said Jamie.
About Scout Logistics Corporation
Scout Logistics is one of Canada’s largest non-asset based transportation providers. Founded in 2011, Scout has built a reputation for providing customers with best-in-class customer service, superior on-time delivery, and transformative technological applications. Scout transports over 500 million pounds of refrigerated goods each year, and has quadrupled its revenue since inception. To learn more about Scout, visit www.scoutlogistics.com.
If you end up in jail in this town, you better like being a vegetarian. One of America’s toughest – and best sheriff’s, Joe Arpaio has a say when it comes to the decision to change Maricopa County’s prison menu to a much more produce-conducive diet.
“They may not like the food, but if they don’t, the other alternative is to not go to jail,” Sheriff Arpaio said in a Phoenix Business Journal report.
And if that doesn’t work, bring in PETA spokeswoman and celebrity Pamela Anderson to dish the food. The Bay Watch star and animal advocate stopped by to serve lunches and promote the change, expressing her hope that other facilities would follow Mariposa’s example.
“We’re saving a lot of lives and I think it’s very helpful and encouraging to get people to eat compassionately and make non-violent choices,” Anderson said, according to the Kansas City Star.
From the business aspect, Sheriff Arpaio told the Phoenix Business Journal that the produce-charged vegan menu is not only a healthier option, it saves the county an additional $200,000 a year in food cost.
The jail system began the shift in diet provisions in 2013 with a focus on vegetarian, however the county contract still permits meat purchases, according to a Yahoo report from the time. Those contracts will expire in May of 2017, and whether or not they will be renewed is still a debate that continues.
While there appears to be local controversy with the county’s food suppliers and those advocating on behalf of inmates who do not necessarily want to be vegan, one thing is for sure; being served by the Baywatch star certainly helped the inmates eat their veggies.