Archive For The “News” Category
Berries replaced beer as Mexico’s top agri-food export product in 2022. In the first two months of 2023, the industry confirmed its profitability with a revenue value of $777 million, according to the Bank of Mexico.
This means berries has surpassed other popular crops, such as avocados, and highly demanded products such as beer and tequila.
Berries are produced commercially in 22 of the country’s 32 states, and exported to 38 nations across the globe.
Mexico produces raspberries, blueberries, blackberries and strawberries, with the latter leading the export figures.
The U.S. is the biggest importer of Mexican berries, followed by the Middle East, Southeast Asia and Europe.
During the 10 years, strawberry, blueberry and raspberry production has tripled from 257,000 metric tons (MT) in 2011 to 754,000MT in 2020.
The total value of Mexican berry exports has increased fivefold during this period.
Víctor Manuel Villalobos, secretary of Agriculture and Rural Development of the Government of Mexico, says that, in 2022, Mexico exported 560,000 tons of strawberries, and that the sector provides over 450,000 jobs.
Around 40% of these jobs belong to women in the industry.
Main producing states are Michoacán, where 58% of all berry production takes place, followed by Jalisco and Baja California with a 17% and 12% participation, respectively.
In light of the ongoing dry season and its prolonged effects, the Panama Canal has informed its customers that it will maintain a draft of 44 feet for the next few months.
The measure will be in place for “as long as weather conditions do not vary significantly from our current projections,” the Panama Canal Authority says in a recent release.
This comes as the canal seeks to continue providing reliable and sustainable service for its clients.
An average of 32 vessels per day will be allowed transit with this temporary condition, as changes in precipitation patterns are expected to affect water availability in Panama.
Drought conditions in the canal are part of a global phenomenon, with the World Meteorological Organization warning about a high probability of El Niño setting in before the end of this calendar year.
The Canal has been implementing procedures to improve water efficiency in its operations, while conducting studies to identify long-term solutions to climate variability. However, the severity of the drought, coupled with its recurrence is historically unprecedented.
The Panama Canal remains committed to ensuring safe and reliable operations in the short term and optimal services for years to come.
Peruvian fresh blueberry exports reached 34.7 million kilograms in the first half of 2023, reflecting an increase of 42.7 percent compared to the 24.3 million kilos shipped in the same period last year, according to Agraria.
By the end of the year fresh blueberries will be the main agricultural export crop from Peru, surpassing table grapes.
In the first half of this year, shipments of fresh blueberries from Peru were as follows: January, 15,716,388 kilos (11,982,583 kilos in January 2022); February, 9,655,215 kilos (5,707,546 kilos in February 2022); March, 3,827,527 kilos (2,874,230 kilos in March 2022); April, 1,331,768 kilos (976,997 kilos in April 2022); May, 1,551,628 kilos (762,083 kilos in May 2022); and June, 2,603,737 kilos (2,001,985 kilos in June of last year).
Shipments of fresh blueberries every month of this year have been higher compared to the same months in 2022. In addition, the 2023-2024 campaign (which started in May and whose peak is registered in September and October) it is already predicted it will be greater than the 2022-2023 season, and it is expected to grow in volume by 25-30 percent.
The main destination markets for fresh blueberries from Peru are the U.S., the Netherlands, China, the UK, and Hong Kong, among others.
By Nora Trueblood
Before diving into this very tenuous subject of immigration, I wanted to share some history to bring us to 2023.
The United States has always been considered the great melting pot, welcoming immigrants from all over the world. From the late 1800s until 1965, immigration was just a matter of something we always had, accepted, and were proud of. We welcomed those from all points in Europe and Russia and then more and more from Asia and Latin America. The early immigrants were attracted by jobs in building and manufacturing industries, and as time went on the needs in agriculture became more obvious for immigrant workers.
The U.S. had allowed immigrants at a large pace, admitting an average of 250,000 immigrants a year in the 1950s, and 330,000 in the 1960s.
Beginning in the early 1960s, immigration became more and more of a talking point, and the idea of establishing a policy to monitor and control entry to the U.S. was on the minds of both sides of the aisle – both in Congress and with the Senate. Quotas that had been established based on census information since the 1920s were out of date, and those quotas were challenged as to their fairness. John F. Kennedy took up immigration reform prior to his assassination.
The Immigration and Naturalization Act of 1965
Considered the first legislation of its kind passed after Kennedy’s death, with support and passage by Congress and in the Senate. However, the water-downed version of the legislation was thought to have very little real consequence in immigration reform. In the three decades since its passage, it is estimated that over 18 million legal immigrants entered the U.S., with the highest number from Mexico. The roots of this legislation remain in effect.
The Refugee Act of 1980
This legislation’s focus was on raising the annual admittance of refugees to the U.S. from 17,400 to 50,000. It also created a better process to review and adjust to the huge influx of refugees from war-torn countries where individuals needed to show a “well-founded fear of persecution” if they stayed in their home country. It also provided assistance to immigrants to achieve financial self-sufficiency. This legislation was passed unanimously by the Senate and was signed into law by President Jimmy Carter. Parts of this legislation remain in effect.
The Immigration Reform and Control Act of 1986
The intention was to create a better way of enforcing immigration and the first amnesty programs, creating more chances for legal immigration. It also made it illegal for employers to knowingly hire or recruit illegal immigrants. This was passed and signed into law by President Ronald Reagan. The effect was specific to a new visa process to allow immigrants to work temporarily in mostly agricultural settings, with some non-agricultural visas extended as well. This Act remains in effect.
The 1990 Immigration Act
This legislation amended the Immigration and Naturalization Act of 1965, by raising the total level of immigration. Reportedly 20 million immigrants were permitted over the two decades since its passage to enter the U.S. Additionally, entrants could stay in the U.S. until situations in their home countries improved. A new area addressed in this Act was that employers could contract with foreign laborers to come to the U.S. and pay for their passage in exchange for the worker’s wages (up to one year). What resonates with me specifically about this legislation is the fact that it was introduced by (D) Ted Kennedy and signed into law by (R) President George Herbert Bush. It seems like the last time a bipartisan piece of immigration reform was passed.
There was additional reform passed in 1996, and then after 9/11, the Homeland Security Act of 2002 took over much of the immigration enforcement.
President Biden is trying to push through more immigration reform, however the Republicans currently control the House and the Democrats the Senate. And the divides in this country have never seemed so wide.
Our agricultural businesses need seasonal workers as do other non-agricultural businesses like the hospitality/hotel industry. They rely on immigrants (legal and other) to keep their businesses afloat. I have read and heard the statement “no one wants these low-paying hard-working jobs.” I always thought it would be interesting to require high school students in an agricultural region/state to work in the fields for one week. While I have not done so myself, I understand working in the fields, just as working as a housekeeper at a hotel, is very hard work. So, we Americans won’t fill these jobs? That is another topic altogether to think about.
How do we get our Congress and Senate to work together to bring about humane and fair immigration reform? Where those in the U.S. who are here illegally, but are working and paying taxes have a road to citizenship. Where the Dreamers that are here because their parents wanted a better life for them, may stay and become legal citizens. And the flip side, how do we remove the immigrants that are criminals, prevent entry to those with records of violence and gang affiliations, those that are moving fentanyl through our schools and communities, and those who do not work and expect our government to take care of them?
I do not have answers to all of these questions, but I do know that the transportation and produce industries employ a lot of very smart people. We need to speak up, get involved and be the conduits of change. Let’s have more conversations.
Mexico exports nearly one-half of the world’s avocado exports, amounting to a record of $3.495 billion in 2022. More and more in these exports are going to the U.S. and less in the rest of the world, according to El Economista.
Of all overseas shipments of Mexican avocados in the past year, 86.1 percent went to the U.S. market, in value terms, a share that exceeded the previous all-time high of 80.2 percent in 2014.
The growing avocado exports from Mexico are based on purchases by American consumers, but at the same time this explains the decreasing geographical diversification of Mexican external sales of this fruit.
Of all world avocado exports in the past year, Mexico had a 47.5 percent share in 2022, with sales of $3.008 billion to the U.S.
The market value of the other destinations for avocado exporters from Mexico is substantially lower: Canada ($287 million), Japan ($87 million), Spain ($41 million), El Salvador ($26 million), Honduras ($11 million), and the rest of the nations reach less than $10 million each.
The U.S. began the gradual opening of its market in 1997, after having applied an embargo on Mexican avocados for 83 years. The last stage occurred on January 31, 2007, when it allowed imports to California,
In 2003, the U.S. only represented 30.2 percent of Mexican avocado exports. Then sales were diversified to destinations such as Japan (20.5 percent), France (14.9 percent) and Canada (9.7 percent).
The USDA reports that raspberry retail per capita consumption rose from 0.2 pounds in 2010 to 0.8 pounds in 2021.
The total domestic and imported raspberry supply increased from just 111 million pounds in 2010 to 352 million pounds in 2021.
The share of supply provided by imports also has increased sharply in the past decade. Imports only accounted for 29% of total supply in 2010 but increased to 68% in 2021, according to the USDA.
California was the only source of domestic raspberry truck shipments reported by the USDA. California raspberry shipments are most active from May through October.
The USDA reported raspberry imports in 2022 from Canada, Guatemala and Mexico — with Mexico accounting for more than 99% of total imports.
Percent of raspberries accounted by imports:
- 2010: 29%
- 2011: 29%
- 2012: 38%
- 2013: 40%
- 2014: 32%
- 2015: 45%
- 2016: 45%
- 2017: 46%
- 2018: 59%
- 2019: 57%
- 2020: 60%
- 2021: 64%
Source: USDA
By Jake Diana, ALC San Francisco
When it comes to the rapid advancement of AI and automated technology, there are few topics more controversial than autonomous vehicles. Many states are not only utilizing, but actively encouraging the implementation of autonomous trucking technologies. From Elon Musk’s Tesla line featuring autopilot mode to the seemingly endless supply of Waymo driverless vehicles throughout major California cities like San Francisco and Los Angeles, it seems that autonomous transportation is becoming less and less avoidable in today’s society.
For some folks, it is evidence of the state’s willingness to change with the times and adapt in ways that allow for a more streamlined future. For others, autonomous vehicles represent a threat to the economy, potentially taking the livelihoods of thousands of hard-working industry veterans by eliminating the need for truck drivers.
On May 31, 2023, the California State Assembly voted to ban driverless trucks from operating within state lines, mandating the presence of a safety driver within these vehicles. Should this bill (AB 316) pass in the California State Senate, California would fall further behind in terms of implementing autonomous technology into the trucking logistics industry. Jeff Farrah, executive director of the AVIA (Autonomous Vehicle Industry Association), stated directly after that “AB 316 undermines California’s law enforcement and safety officials as they seek to regulate and conduct oversight over life-saving autonomous trucks” in reference to the often utilized argument that the use of self-driving vehicles actually increases road safety and causes a regression in transportation-related deaths. Industry veterans strongly refute this argument, believing that their experience and human characteristics allow for better results.
Fernando Reyes, Teamster Local 350 member, advocated for trucks needing drivers, stating: “…the thought of it barreling down the highway with no driver is a terrifying thought and it isn’t safe…”. He goes on to elaborate further into the safety risks posed by a lack of drivers, saying, “…I know to look out for people texting while driving, potholes in the middle of the road and folks on the side of the highway…”. Clearly, this is a divisive issue featuring some strong points on both sides, yet how does it affect freight brokerage companies?
The answer is that a potential monopoly on trucking due to utilizing autonomous trucks could be just as devastating for brokerages as the carriers themselves. Automated transportation would have a cascading effect on the industry as a whole, as the need for drivers would be eliminated. If there were no drivers involved, there would be no dispatchers. Therefore, shippers would likely come to the conclusion that they would be better served purchasing automated trucks and their accompanying tracking/logistical management systems. Most, if not all, brokerages would be forced to end operation given that much of the moment-to-moment load management would become obsolete as driver error would be eliminated. Rate negotiations would cease, as shippers would own their own fleets in entirety and therefore have no reason to seek outside guidance or management.
However, the need for truck drivers for produce and perishable products is an entirely different conversation. Most of these loads are multi-pick, where a human is needed, so they will probably not see driverless vehicles in the future. As of now, it seems that fully autonomous freight transportation is still decades away from being viable – seemingly in step with the gradual implementation of autonomous technology across all sectors of the world.
*****
Jake Diana graduated in 2020 from the University of Oregon with a Bachelor of Arts degree in General Social Sciences. Diana joined the ALC San Francisco office in August 2022 as a broker’s assistant, before being promoted to carrier sales representative, and most recently to carrier sales manager. He is a high-energy individual with a passion for competition, teamwork, and tech.
jake.diana@allenlund.com
Celebrating summer with a barbeque event will be costlier this year, a new economic analysis from Rabobank shows.
The 2023 Rabobank BBQ Index reveals a 10-person barbecue will cost nearly $100 this year, according to a news release. In fact, food items listed on the barbecue menu have jumped 31% since 2018, according to Rabobank.
The Russia-Ukraine war, severe drought, higher wages and rising costs of farm inputs, transportation and energy have combined to fuel broad-based inflation throughout the supply chain.
COUNTING THE COST
The 2023 Rabobank BBQ Index, which measures the cost of staple ingredients for a 10-person barbecue, shows that it will cost $97 to host a cookout on Independence Day this year, up from $73 in 2018.
Food prices have shot up 31% in the last four years, the biggest four-year gain since the late 1970s oil crisis, according to Rabobank.
Here are price increases over the last four years, according to Rabobank:
- Soda: 53%.
- White bread: 51%.
- Potato chips: 46%.
- Chicken: 37%.
- Lettuce: 29%.
- Ground beef: 25%.
- Beer: 22%.
Despite the elevated food costs, Rabobank analysts said many consumers — particularly those under 40 — are now prioritizing experiences over goods and are willing to splurge for a special occasion.
“Consumers have taken some heavy punches but they’re still standing,” Tom Bailey, senior consumer foods analyst at Rabobank, said in the report. “They’re being shrewd in areas that don’t enrich experiences, while giving in to the urge to splurge where it matters most. With that mindset, look for spending to heat up this summer on quality meats and drinks — the recipe for a memorable barbecue.”
The trend to value “experience over things” was emerging before COVID-19, but Rabobank analysts said the shift has accelerated, especially for millennials and Generation Z. For baby boomers, spending on travel and food has increased, in part thanks to an 8.7% cost-of-living adjustment to their Social Security benefits this year, according to Rabobank.
A healthy labor market is also keeping consumers willing to spend their money. The May jobs report showed that unemployment sits at 3.7%, down from its pandemic peak of 14.7% just three years ago, Rabobank economists said.
“Steady work makes it easier to justify increased spending when budgets are tight,” Bailey said in the report. “Rather than trading down to soften the blow of stubbornly high inflation, we may see consumers trading up to more premium products.”
The Rabobank BBQ Index, according to the report, assumes an average American barbecue event on the Fourth of July with 10 adults, with each consuming the same amount of food and beverages.
The index assumes each person will consume one cheeseburger with lettuce and tomato, one chicken sandwich with lettuce, tomato and a slice of cheese, two handfuls of chips, a beer, a soda and a few scoops of ice cream.
USDA data shows strawberry consumption continues to surge.
Retail per capita availability of strawberries has grown from 5.3 pounds in 2016 to 6.7 pounds in 2021, according to the USDA.
Both domestic and import supplies of strawberries have increased in the past two decades, but the growth of imports has been much stronger.
The USDA estimates that domestic strawberry output increased from 1.77 billion pounds in 2016 to 2.17 billion pounds in 2021, a gain of 23% in that five-year period.
At the same time, imports of strawberries increased 43% from 2016 to 2021, rising from 365 million pounds in 2016 to 521 million pounds in 2021.
As a percent of the total strawberry supply in the U.S., the USDA reports that imports accounted for 19% of the total supply in 2021, up from 17% in 2016 and up from just 7% in 2000.
The peak month for domestic strawberry availability in 2022 was May, when shipments accounted for 15% of the total annual supply. Other top months for strawberry shipments include June (14%), April (11%), July (11%) and March (9%). The month with the smallest domestic shipments in 2022 was December, when just 3% of the domestic annual volume was shipped, according to USDA truck shipment data for conventional fruit.
Imported strawberry volume, dominated by Mexico, is active year-round. However, the top months for strawberry imports were February (18% of total annual volume), March (18%), January (16%) and April (14%). The smallest import volumes were recorded in August and September, which both accounted for less than 1% of the total imported annual volume.
Mexican fresh tomato shipments for 2023 are predicted to hit 3.87 million metric tons, a 2% increase over the Mexican government’s official 2022 production estimate of 3.8 million metric tons, according to the USDA.
“Stable U.S. demand and increasing adoption of greenhouse technologies account for the uptick in year-on-year production growth,” the report said.
The USDA also forecasts Mexico’s 2023 fresh tomato exports at 2.06 million metric tons, a 5% increase over 2022, due to expected higher production, stagnant domestic consumption and robust U.S. demand.
Although exports to the U.S. occur year-round and are consistently above 100,000 metric tons per month, the largest volume of exports generally occurs from January to March and from October to December.
In 2022, the report said Mexico exported over 1.81 million metric tons of tomatoes to the U.S. and accounted for about 91% market of tomatoes imported into the U.S.
Sinaloa remains Mexico’s largest tomato-producing state and accounts for 22% of total production, followed by San Luis Potosi, Michoacán, Zacatecas and Jalisco.
Mexico’s tomato exports to the U.S. will remain strong due to robust supplies and flat Mexican consumption.
Mexican tomato production occurs throughout the year with two overlapping production and harvest peaks, the report said. From December to April, the state of Sinaloa — Mexico’s largest open-field and shade house tomato producer — dominates the domestic market and exports over 80% of its crop to the U.S., according to the report.
During the period from May to November, the states of San Luis Potosi followed by Michoacán, Zacatecas, Jalisco, Baja California Sur, Sonora, Morelos, and Puebla become major suppliers, the report said.
According to the Mexican government’s Agrifood and Fisheries Information Service, the official 2022 production estimate reached 3.8 million metric tons.
Sinaloa’s production in 2022 totaled 821,000 metric tons, followed by San Luis Potosi with 475,149 metric tons, Michoacán with 322,153 metric tons, Zacatecas with 244,706 metric tons, Jalisco with 197,946 metric tons and Baja California Sur with 189,659 metric tons.
San Luis Potosi, Michoacán, Zacatecas and Jalisco account for over 55% of national production, but tomatoes are grown throughout the country, the report said.
“While Sinaloa currently remains Mexico’s largest state-level producer, most of the overall production growth is dispersed across San Luis Potosi, Michoacan, Jalisco, as well as other smaller producing states,” the report said.
Mexico exports over half of its annual tomato production, and growers throughout the country use greenhouses, shade houses, high-tunnel systems and other climate-control technologies to supply the U.S. market year-round, the report said. In fact, Mexican government sources reveal that 67% of tomato production is grown under controlled conditions, the report said.
The greatest volume of Mexican tomatoes imported into the U.S. enters through the Laredo (Texas) Customs District, followed by the Nogales (Ariz.) and San Diego Customs Districts, the report said.
The Laredo District has four important ports of entry for fresh tomato shipments, chiefly Pharr, Laredo, Brownsville and Progreso. In comparison, the Nogales and San Diego Customs Districts each have just one port of entry for tomatoes, the report said.