Archive For The “News” Category
There have been a lot of opinions expressed about the “Left Coast” and its rules, regulations and politics and what effect it may have on everything from produce truckers willing to do business in California, to produce growers shifting more of their operations to Mexico and other states.
Based on a new report from the U.S Department of Agriculture’s National Agricultural Statistics Service, as looney as our friends on the West Coast may sometimes seem, last year California still accounted for 47 percent of harvested acreage, 52 percent of production and 60 percent of value in 2014. If that’s the case, then there must have been trucks for the most part delivering those agricultural products to markets across North America.
Production of U.S. melons and 24 top vegetables was down one percent in 2014. The overall value of those crops also fell last year.
About 413 million cwt. of leading vegetables and melons were harvested in 2014. Harvested acreage, at 1.58 million acres, also was down, by three percent.
The value of the 2014 crops, at $10.9 billion, was down 5 percent from a year ago.
In terms of production, onions, head lettuce and watermelon were the top three crops, accounting for 36 percent of total production.
Tomatoes, head lettuce and onions were the most valuable, making up 29 percent of total value.
While the vast majority of produce shipments occur by truck, California produce shipments also easily lead the pack in terms of volume over other states.
by Staff Reporter, University of Montreal
Canadian men’s eating habits are associated with the availability of healthy food sources in their residential neighborhood but women’s are not, according to researchers at the University of Montreal and its affiliated CHUM hospital.
“We found that, for men only, intake of fruit and vegetables was positively associated with the proportion of healthy food outlets around home,” explained Christelle M. Clary of the university’s department of social and preventative medicine, who led the study. Why men Canadian men’s eating habits are associated with the availability of healthy food sources in their residential neighborhood but women’s are not, according to researchers at the University of Montreal and its affiliated CHUM hospital.
“We found that, for men only, intake of fruit and vegetables was positively associated with the proportion of healthy food outlets around home,” explained Christelle M. Clary of the university’s department of social and preventative medicine, who led the study. Why men and not women? “This may be because women, who are in general more nutritionally knowledgeable, may engage in different food shopping strategies than men, and rely on other aspects of the food environment than the proportion of food stores locally available,” suggested Professor Yan Kestens, who directed the study.
The study was based on data from the Canadian Community Health Survey (CCHS), and looked at the eating habits of 49,403 Canadians living in Toronto, Montreal, Vancouver, Calgary and Ottawa (including Gatineau, Quebec). The food outlets of each city were mapped using a database containing information on the type and location of all food businesses. For the purpose of this study, supermarkets, grocery stores, fruit and vegetable stores and natural food stores were considered as potential sources of “healthy foods” (especially fruits and vegetables), while convenience stores and fast-food restaurants were considered less healthy food sources.
Florida Commissioner of Agriculture Adam H. Putnam called for increased funding to fight citrus greening, which is threatening to decimate Florida’s famed citrus crop. The U.S. Department of Agriculture revised its estimate recently for the 2014-15 harvest season to 103 million boxes of oranges, a decline from the forecast released in 2014.
“Now is the time to put all the resources we can toward fighting citrus greening,” said Commissioner Putnam. “We must do what we can to save Florida’s signature crop, an industry that generates $9 billion in annual economic impact and supports 76,000 jobs for Floridians.”
The USDA announcement estimates 103 million boxes of oranges will be harvested this season, down from the forecast of 108 million boxes announced in 2014 and also a decline from the 104 million boxes produced in 2014, the lowest on record. This represents a total decline of 60 percent since the peak of citrus production at 254 million boxes in 1997-98.
“State and federal governments, along with Florida’s citrus growers, have dedicated more than $230 million to support research over the past decade, and there are some promising leads,” Commissioner Putnam said. “I’ve requested an additional $18 million from the state this year to continue in-depth research, grow clean citrus stock, and replant where diseased trees have been removed.”
Nearly three months ago Haulproduce.com reported that refrigerated rail service McKay TransCold LLC of Eden, MN had closed its doors. Now it has been learned TransCold Logistics LLC, parent company McKay TransCold LLC has filed for Chapter 7 bankruptcy liquidation with debts of about $7 million.
The refrigerated rail service was launched in May 2014.
McKay TransCold worked with BNSF Railway to operate the TransCold Logistics hub-to-hub, dedicated refrigerated boxcar train between Selma, CA and Wilmington, IL. The operation began with two trains pulling 50 refrigerated boxcars in each direction, making the trip in four days.
It offered cold storage in California and as of September 2014 was still planning to add cold storage services in Illinois.
The company posted $2.47 million in gross revenue for 2012, according to court documents. In 2013 gross revenue dropped to about $533,000. In 2014 they climbed back to $5.23 million.
The company has a total of secured claims of $865,533, all owed to Marquette Transportation Finance, Minneapolis. Its total unsecured debt is about $5.9 million.
The top five unsecured debts are:
**** BNSF Railway Co., Chicago, $3.37 million;
**** KLLM Transport Services LLC, Birmingham, Ala., $735,486;
**** National Carriers Inc., Kansas City, Mo., $519,918;
**** Werner Enterprises Inc., Chicago, $384,830;
****NLCS-Wilmington, Ill., $235,945.
The first produce train service to fold in 2014 was Cold Train Express Intermodal service that suspended service last summer. Cold Train saw its on time service on BNSF’s Northern Corridor plummet from 90 percent in November 2013 to only 5% percent last April. Cold Train said the reason relates to soaring oil and coal shipments by rail.
By Fresh Solutions Network
The NPD Group just released their 29th annual Eating Patterns in America report, and finds that an increase in meals from home is one of the single biggest changes in eating patterns in Americans in the last five years.
“We are eating more meals in our homes, but not cooking more dishes,” says Harry Balzer, vice president of The NPD Group and author of the report. Nowhere is this more apparent than in the fresh potato category, where the white-hot microwaveable/steamable segment has seen dollar sales shooting up a scorching 31 percent for the latest 52-week period ending 9/27/14, according to data from Nielsen FreshFacts®.
One potato brand is uniquely positioned to take advantage of these trends to satisfy Americans who want fresh, nutritious food fast and with a minimum of fuss. Side Delightsâ Steamables™ are triple washed, fresh, whole, small potatoes in a microwave safe package that is ready to serve in just 8 minutes. And Steamables are the ONLY microwave-ready potato brand that uses light-blocker packaging technology to keep potatoes fresher and protected from greening due to harsh store lighting.
Side Delights Steamables come in 7 delicious potato varieties – Russet, Red, Golden, White, Purple, Fingerling and Sweet Potatoes – the most expansive lineup in the steamable segment. And the inclusion of Purples, Fingerlings and Sweet Potatoes brings together these rapidly growing specialty potato types with the on-trend convenience of microwave cooking.
“Retailers have a tremendous opportunity with offering their shoppers more quick and convenient ways to enjoy fresh potatoes” said Kathleen Triou, President and CEO of Fresh Solutions Network. “Side Delights Steamables gives them a complete lineup of gourmet potatoes that appeal to time-starved families as well as Millennial shoppers, all packaged using the latest technology to protect their premium quality.” While Triou recommends merchandising Side Delights Steamables in the produce department with other fresh potatoes on an everyday basis, she notes that the big volume opportunities come from displaying these high-impulse potatoes near rotisserie chicken in the service deli or adjacent to the ready-to-heat entrees in the meat department.
Side Delights Steamables are perfectly positioned for today’s busy consumer – the fast, easy, delicious way to serve fresh potatoes with any meal!
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).
By the time the 2015 Super Bowl reaches the end of the first quarter on Feb. 1, at least 125 million people will have the opportunity to see a fresh produce item advertised along with the top consumer brands in the world.
For the first time ever, a fresh produce item will share the spotlight with nachos, beer, colas and other products that typically fill the advertising space of the National Football League’s annual championship game. This year, a 30-second spot touting Avocados From Mexico will share the limelight. The commercial for Avocados From Mexico, the number-one selling avocado in the United States, is being kept under wraps until it debuts at the end of the first quarter.
Soon after the advertisement airs, Avocados From Mexico will launch an aggressive social media campaign designed to get game-watchers in the Mexico spirit, and will increase awareness that Avocados from Mexico are always in season and pair perfectly with their football celebrations.
In January and February 2015, the amount of avocados imported to the United States is expected to be more than 285 million pounds, with Mexican avocados leading the way as the top importer and the top seller.
Eating guacamole pairs very well with football-watching and there has been promoting of Mexican avocados and guacamole in many different venues including national consumer advertising, in-store displays, in-store radio, in coupons and in public relations efforts. The campaign also is driven by the promotions teams of Avocados From Mexico and the Old El Paso line of consumer product goods, including taco shells and taco-making kits.
My first visit to the Hunts Point Terminal Produce Market was in February 1989. Over the past 25 years I have visited the world’s largest produce wholesale facility more than 50 times.
Having been to most of the nation’s major wholesale produce markets, New York City’s South Bronx mammoth is the most fascinating. Being so large it has the most activity, the largest volume of trucks – and produce – moving in and out of the market.
Whenever possible, I enjoy visiting with owner operators, small fleet owners and company drivers who are at Hunts Point. I’ve heard the stories of excessive long delays waiting to unloading, because a receiver is using their reefer unit as a free warehouse. I’ve been told about the unfair claims truckers face, especially on loads that have lost market value from the time it was bought until it arrives at destination. There also are complaints about the $20 gate fee, however, these are often included anymore as part of the freight rate.
While these problems still exist at Hunts Point, it seems I’m finding fewer trucker complaints. Granted, I am only able to talk with a minute percentage of the 130,000 truckers that go the market each year.
However, as transportation costs increase, and good, dependable service becomes more of a premium, it seems more produce receivers than in the past appreciate receiving a delivery on time and in good condition. In other words, you pay for what you get.
Trucks are in greater demand than ever. You hack off a driver, and he or she has other choices. They don’t have to deliver to Hunts Point or anywhere else. In talks with drivers at truck stops and other places, I used to hear as often as not, they simply would not go to Hunts Point because of traffic, gridlock, tolls and yes – treatment at the docks. I don’t hear it as often as I used to.
Hunts Point only has about one-third the number of wholesalers on the market compared to when it opened in 1967. I like to think that while the consolidations, mergers and acquisitions have resulted in fewer, but larger merchants – hopefully their growth resulted from good, honest businesses practices.
For whatever reasons, Hunts Points is a pretty interesting place to visit. — Bill Martin
(This is the last of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
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)