Archive For The “News” Category

Port of Wilmington will Continue to be Huge Banana Importer; Inks Deal with Chiquita

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DSCN3734+1+1If you like hauling bananas out of the Port of Wilmington (Del), The Diamond State Port Corp., and Chiquita Brands have agreed that Chiquita will continue to use the  complex as its mid-Atlantic distribution hub for the next five years.

The agreement includes two five-year renewal options, which could extend Chiquita’s stay at Wilmington until 2029, according to a news release.

Chiquita’s business means Wilmington will continue to handle more bananas than any other port in North America.

In 1988, Chiquita consolidated mid-Atlantic supply chain operations to Wilmington, which is now its largest port operation in North America.

Chiquita brings bananas, pineapples and other tropical fruits and vegetables into North America through the port from Central America.

“We are extremely pleased that Chiquita has decided to sign a new lease with the port and continue our long and fruitful relationship,” Gene Bailey, executive director of Diamond State, said in the release. “Chiquita is a most important customer and responsible for hundreds of jobs and … significant economic impact to our port, state and region.”

“The Port of Wilmington is an important destination for Chiquita and our customers,” Mario Pacheco, Chiquita’s senior vice president of global logistics, said in the release. “We are pleased that we have reached an agreement that will enable us to continue to call Wilmington home for many years to come.”

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California Drought is Causing Produce Prices to Increase

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DSCN3893California’s ongoing drought continues to hit price tags in grocery stores across the country including fresh fruits and vegetable prices, which will go up an estimated 6 percent in the coming months, the federal government said recently.

“You’re probably going to see the biggest produce price increases on avocados, berries, broccoli, grapes, lettuce, melons, peppers, tomatoes and packaged salads,” said Timothy Richards, a chair  at the Morrison School of Agribusiness at Arizona State University.

In its monthly report on the food price outlook, the U.S. Department of Agriculture said the price of fruit and vegetables will continue to rise.

The USDA’s Economic Research Service reported that the California drought has the potential to increase food price inflation above the historical average in coming years as farmers continue to battle for water in the summer months.

Although the department is sticking with its overall forecast that U.S. food prices will increase by up to 3.5% this year over last, it cautioned that the cost of meat, dairy, fruit and vegetables will jump.

California farmers produce about half of the nation’s fruits and vegetables, and most of its high-value crops such as broccoli, tomatoes and artichokes.

But the rising cost of water has forced farmers to idle about 500,000 acres of land and produce less, making certain foods more expensive.

Fresh produce has increased the most and that’s a direct result of the California drought,” said Annemarie Kuhns, an economist with the USDA.  Almost 70 percent of the nation’s lettuce is grown in California.

The department now expects 2014 U.S. fresh fruit prices to jump by up to 6 percent, up from its May projection of about 4 percent.  A devastating citrus disease in Florida also sent citrus prices up 22.5 percent this year.

Consumers will also see a bump in dairy prices due to increased demand.

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Per Capita Use of Fresh Vegetables in U.S. Shows a Decline

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DSCN3922New USDA estimates say U.S. per capita use of fresh vegetables dipped 5 percent in 2013 and imports claimed a record share of the total supply.

Preliminary numbers show per-capita use of fresh vegetables (excluding potatoes and melons) in the U.S. totaled 138.8 pounds in 2013, down 5 percent from 145.5 pounds in 2012 and off 5 percent from 146.8 pounds in 2000, according to the USDA’s Economic Research Service.  That preliminary number is the lowest per-capita use of fresh vegetables since 1998’s tally of 136.1 pounds.

Imports accounted for a record 27.3 percent of fresh vegetable use in the U.S. in 2013, up from 25.1 percent in 2012 and double the import share of 13.2 percent in 2000. U.S. vegetable exports accounted for 7.1 percent of the domestic supply, up from 7 percent in 2012, but down from 7.8 percent in 2000.

The report reflects a decline in most of the major fresh vegetables tracked in 2013 compared with the previous year, including tomatoes (-3 percent to 19.6 pounds), head lettuce (-12 percent to 12.5 pounds), carrots (-4 percent to 7.6 pounds), bell peppers (-10 percent to 10.3 pounds) and sweet corn (-4 percent to 7.4 pounds). Other less consumed vegetables also showed declines, including asparagus (-5 percent to 1.6 pounds) and snap/green beans (-5 percent to 1.7 pounds).

Fresh vegetables that showed stable per-capita use included cabbage (7.1 pounds) and cauliflower (1.2 pounds).

Fresh potato and broccoli per-capita use was higher in 2013, according to the USDA.

Broccoli rose 8 percent from 6.3 pounds in 2012 to 6.8 pounds in 2013, while potato per-capita use in 2013 rose 5 percent to 36.1 pounds.

The change in per-capita use doesn’t mean that much for a single year, said Desmond O’Rourke, president of Belrose Inc., Pullman, Wash.  Weather events and yield differences can create swings, he said. O’Rourke said USDA Agricultural Marketing Service shipment data shows 2013 vegetable volume was flat compared with 2012, though the USDA includes pumpkins in their total volume numbers for vegetables.

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Hours of Service, Stricter CARB Rules Blamed for Higher Freight Rates

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IMG_6482Changes in federal hours of service regulations, along with stricter rules by the California Air Resources Board (CARB) are two primary reason refrigerated produce loads have increased this year by as much as 10 percent, according to DAT Solutions, a load board network based in Beaverton, OR.

Over 99 million transactions annually and bases rate estimates on $24 billion of freight bills, according the DAT website, and bases rate estimates on $24 billion of freight bills.

The hours-of-service changes require drivers to stop for rest breaks more often, meaning it takes longer to reach destinations such as distribution centers, many of which were located years ago based on drive times allowed under the old regulations.

Some (truckers) have gone to a relay system where the first one drives so far, then another driver picks up the trailer and takes it on. The downside, particularly with temperature-sensitive loads like produce, is that you don’t have the continuity of one driver taking care of the load for the whole trip,” Montague said.

Higher rates also are attributed to the tightening rates emissions regulations by CARB, which apply not only to trucks picking up and delivering produce in the state, but those merely driving through California.

Montague said as of early June, many of the highest rates in the nation were for trucks going into California. The DAT data for the week ending May 31 showed per mile rates of $2.44 in California for reefers. “At least 90% of the fleets that haul fresh produce have 10 trucks or less,” Montague said, adding that many produce haulers are individual owner-operators with only one truck. “The changes in regulations really make it hard for the smaller operators because of the costs for upgrades. The overall message is a lot of smaller truckers are having trouble.”

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Report: U.S. organic sales see biggest jump in 5 years

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DSCN3765The U.S. organic market has hit new heights of $35.1 billion in sales last year, according to a survey from the Organic Trade Association (OTA).

The survey shows the organic industry recorded 11.5 percent year-on-year growth in 2013, which was the fastest growth rate in five years.

“The U.S. organic market is experiencing strong expansion, with organic food and farming continuing to gain in popularity. Consumers are making the correlation between what we eat and our health, and that knowledge is spurring heightened consumer interest in organic products,” OTA CEO Laura Batcha said in a news release.

The Organic Industry Survey, conducted and produced by the Nutrition Business Journal, showed the fruit and vegetable category continued to lead the sector with $11.6 billion in sales, up 15%.

The OTA highlighted that with organics now making up more than 10 percent of the fruits and vegetables sold in the U.S., the US$1.5 billion in new produce sales represented 46% of the organic sector’s $3.3 billion in new dollars.

The relatively small organic condiments category posted the strongest growth at 17 percent, reaching $830 million.

“The entire organic industry needs to rally around helping consumers better understand and appreciate all the values that certified organic brings to the table,” Batcha said.

“Consumer education is critical to grow the organic industry.”

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Restaurants are Increasing Use of Blueberries in Menus

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DSCN3903FOLSOM, CA — Customer interest in healthy dining options is pushing colorful fruits onto restaurant menus, according to Technomic, which surveyed more than 300 foodservice professionals. 

 Though they are normally found in breakfast items, blueberries are showing up in dished served all throughout the day.  They are reported as the third most-purchased fruit, trailing only strawberries and apples, according to a press release.

“We learned from a top 500 chain menu survey earlier this year that blueberry mentions on menus boomed 97 percent between 2007 and 2013,” says Mark Villata, executive director for the U.S. Highbush Blueberry Council (USHBC). “Now, this usage and attitude study gives us insight into why. That is, what are the drivers influencing decision makers to increase their use of blueberries?”

When asked why they like using blueberries, the survey reports that chefs and operators say:

*Blueberries are a healthy option for customers (82 percent)

*Blueberries are low-labor and easy to use (82 percent)

*Blueberries give the entire operation a health halo (58 percent)

*Menu prices can be higher for items that include blueberries (42 percent)

“Blueberries are delicious, healthy and versatile, and add to our menu,” says David Goldstein, executive chef at Los Angeles-based Sharky’s Woodfired Mexican Grill. “Our menu is loaded with fresh, healthy foods so when we put together our Harvest Quinoa Superfood Salad, we added dried blueberries. These days, I think customers expect to find blueberries in the healthiest options.” In addition, Sharky’s offers handmade, freshly prepared lemonades; one of their newest is Blueberry Mint made with fresh blueberries.

A survey conducted by Hebert Research in 2013 showed that 99% of Americans believe blueberries are healthy, according to a press release.  With demand for healthy menu items increasing, it will be interesting to see what dishes start showing up on menus.

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Loading Opportunities from California to Arkansas, the Northwest and in Jersey

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DSCN3993Here’s a shipping update from various areas across the country, where there should be some loading opportunities.  Here’s also a cautionary note about some splitting of Oregon cherries due to recent rains.

California Tomato Shipments

Vine ripe tomato shipments from the Oceanside, CA area have started, with romas to get underway in August.  Both types of tomato shipments will continue through November.

Arkansas Tomato Shipments

A lot of tomato shipping areas around the country claim to ship home grown quality tomatoes, but consumers certainly know the difference. This season, there’s certainly an exception. Haul Produce is referring to vine ripe tomatoes from Arkansas. This beautiful, tasty product is currently being shipped from the Hermitage area and will continue through July.

Peach Shipments

New Jersey peach shipments get underway within the next week or so and should yield 30,000 tons to 35,000 tons of fruit from the state’s 5,500 acres of trees. Peach loadings will remain available through most of September.

Northwest Cherry Shipments

A monthly record of 10.3 million boxes of cherries were shipped from the region in June.   The volume was more than double the June 2012 tally of 4.7 million boxes — part of that year’s record crop….Rainfall in the last week of June has resulted in some splitting of Oregon cherries, but damage varied by grower. So use caution and pay attention to what is being loaded on your truck.  It could save you a claim or rejected load.  The amount of damage to cherries is estimated a about 10 percent of the fruit being lost.

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2014 Dog Days of Summer Coming Soon!

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DSCN0536By Bully Dog

American Falls, ID -July 18th at the Bannock County Fairgrounds, SCT/Bully Dog will look for the perfect blend of speed, raw power and unmatched performance. With $20,000 available in cash and prizes, it’s well worth the time to register as a participant in multiple events!

For instance, if the Dyno isn’t your style, maybe your true calling lies in the racing lanes with all the other drag racers, or maybe you can find that sweet spot between traction, speed and power when you hook up in the pulling class. Out there somewhere, we believe there could be a truck and driver that will win every event, and bring home the ultimate Triple Crown prize of $5000 cash!!

We hope that this is the year of the Dog Days Champion. Could it be you? Aside from the outrageous performance drivers looking to make their mark on the track, SCT/Bully Dog is sponsoring many more events for everyone else to enjoy. The whole family can look forward to rides on the Monster Truck, given out all afternoon.

Throughout the day, there are booths set up selling SCT/Bully Dog merchandize, giving out product information and plenty of opportunity to immerse yourself in the world of diesel racing. SCT/Bully Dog is the industry leader in developing full-featured aftermarket enhancements for an unprecedented number of vehicle applications. Founded in 1999 and guided by the idea that every vehicle possesses untapped potential, Bully Dog equips gas, diesel and heavy duty drivers with the tools to unlock their rides’ potential power and economy gains. Visit us online at www.bullydog.com

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Giumarra Nogales Ships First Watermelon Load Via Rail

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DSCN2127 by Giumarra Companies

LOS ANGELES – As part of its effort to explore alternate transportation methods, Giumarra announces its first load of product delivered by railroad: watermelons.

Giumarra Nogales shipped watermelons grown in Hermosillo, Sonora, Mexico to Jessup, Maryland by 50-foot refrigerated railcar in May. This marks the first time in decades produce grown in Mexico was shipped via train.

By working with Nogales-based Pacific Brokerage, Giumarra coordinated a full shipment of the melons, which arrived at their destination in good condition. One railcar will fit up to three truckloads of product.

“Although our delivery had a few challenges, we feel the overall success of the trip demonstrates that watermelons are sturdy enough to handle rail shipment, and it may be a viable option for us in the future,” says Gil Munguia, division manager of Giumarra Nogales.

Giumarra’s Cesar Pacheco, sales manager of Giumarra Nogales, worked with J.B. Manson of Pacific Brokerage for over three years to seek a railroad company that wanted to be involved with the project. Their efforts found traction with the state of Arizona’s “Arizona/Mexico Commission” and the Port of Tucson.

Through the efforts of Mr. Pacheco and Mr. Manson, Union Pacific and CSX Corporation agreed to participate in a pilot program with Giumarra.

“With the success of our first run, we hope to push skepticism to the side and grab the attention of the railroads for future projects,” says Mr. Pacheco. “We can move one ton of cargo more than 500 miles on a single gallon of diesel using rail. We believe this will help minimize the carbon footprint of long-haul shipping.”

Giumarra plans to ship honeydew melons, winter squash, and cucumbers within the rail pilot program. The next planned shipment is headed for Chicago, Illinois on a 64-foot railcar.

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U.S. Potato Loads Destined for Mexico Hit a Road Block

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DSCN3771

(Below is a press release from 2 potato organizations.  However, since it was released, Mexican potato growers filed a lawsuit to stop U.S. spuds from entering Mexico and an injunction preventing such action was implemented.  So for now, if you are planning to haul US potatoes to the Mexican border, it isn’t going to happen, at least for now.)

By National Potato Council and United States Potato Board

Washington, D.C./Denver, CO — The National Potato Council (NPC) and the United States Potato Board (USPB) are pleased that effective May 19, 2014; the Mexican government has implemented its final rule allowing U.S. fresh potatoes to enter all of Mexico. This action is part of a bi-lateral agreement that facilitates trade in fresh potatoes between the two countries.

The NPC and USPB support this bi-lateral trade agreement as it will benefit potato growers in Mexico and the United States, as well as the processing industries and consumers in both countries. Per capita potato consumption in Mexico is lower than the United States, so there is room for this market to grow.  The USPB will conduct market development programs in Mexico which will be designed to increase consumption of all potatoes in Mexico.

Questions on the requirements for shipping to Mexico should be directed to the NPC or USPB.

The National Potato Council is the advocate for the economic well-being of U.S. potato growers on federal legislative, regulatory, environmental, and trade issues.

The mission of the United States Potato Board is to increase demand for potatoes and potato products through an integrated promotion program, thereby providing US producers with expanding markets for their production. For complete information about the programs, visit www.uspotatoes.com.

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