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MONTEREY, CA — Organic fresh produce sales grew by 3 percent in 2022, while volume declined by –3.7 percent, as total sales topped $9.4 billion for the year, according to the 2022 Organic Produce Performance Report released today by Organic Produce Network and Category Partners.
The organic fresh berry category (which includes strawberries, blueberries, raspberries, and blackberries) was the top organic produce category, holding more than 16 percent of organic fresh produce dollars in 2022. Overall fresh berry sales topped 1.6 billion for the year, with organic packaged salads a close second at $1.55 billion.
Total fresh produce sales gained 7.3 percent in dollars for the year but experienced a –1.3 percent decline in volume. Organic fresh produce made up 12 percent of all fresh produce sales and accounted for 7 percent of all fresh produce volume.
“In an inflationary time like this, we expect to see the growth of sales dollars and volume declines repeated for the majority of organic and conventional fresh produce items,” said Tom Barnes, President of Category Partners. “The average conventional price per pound grew by 9.2 percent compared to 2021 while organic produce price per pound rose by 7 percent. With rising prices, we may see more selective organic shopping from consumers as they substitute higher-priced organic items for conventional ones.”
Organic apples were the largest example of substitution as their price per pound increased by more than double the amount of conventional, resulting in a volume decline of –10.3 percent.
For 2022, 13 of the top 20 organic produce categories (by total sales) posted increases in dollars, with organic onions generating the largest increase (15.4 percent), followed by cucumbers, potatoes, and avocados. Conversely, green beans posted the largest drop in dollars (–5 percent), and lettuce and bell peppers also posted noticeable declines in dollars for the year.
Additionally, 14 of the top 20 organic produce sales categories posted declines in volume, with only 10 of those categories showing positive dollar growth. Organic bananas continued to be the biggest volume mover despite a –1.2 percent volume decline in 2022 and showed a modest 3.9 percent increase in sales from the previous year.
Of note, potatoes and cabbage, typically regarded as inflation busters, showed a 10 percent increase in dollar sales and a nominal 1 percent growth in volume. Organic grapes had a stellar year, with a 6.9 percent increase in volume and an 8.3 percent increase in sales.
Organic performance in 2022 was consistent among all regions of the nation—dollars grew and volume declined. The Northeast saw the lowest dollar growth and highest volume decline, while the South continues to show the most year-over-year improvement.
Organic fresh produce prices in aggregate remained substantially higher than conventional, with 2022 showing the price gap between conventional and organics the largest it has been in the past four years at $1.55 per pound. “In an inflationary time period, it is important for organic producers to understand how their pricing impacts behavior among various consumer segments and to reach those consumers with the health and value benefits associated with organics,” said Barnes.
The fourth quarter of 2022 saw the twelfth consecutive quarter of organic sales growth, with a modest 1.4 percent increase from the same period last year. Organic produce sales for the fourth quarter topped $2.1 billion, with the grape category leading the way in year-over-year dollar and volume growth.
The 2022 Organic Produce Performance Report utilized Nielsen retail scan data covering total food sales and outlets in the US from January through December 2022. A complete version of this report, including information on the top 20 organic fresh produce categories, will be made available on the Organic Produce Network website in mid-February.
OPN is a marketing organization that serves as the go-to resource for the organic fresh produce industry. The company’s mission is to inform and educate through a strong digital presence with an emphasis on original content and complemented by engaging live events that bring together various components of the organic produce community. OPN’s target audience includes organic producers, handlers, distributors, processors, wholesalers, foodservice operators, and retailers. www.organicproducenetwork.com
New York – The number of U.S. restaurants – including chain franchises and independent stores – has not yet rebounded to pre-pandemic levels, and is still meaningfully lower than what it was before the advent of COVID-19, according to Nick Cole, Head of Restaurant and Hospitality Finance at Mitsubishi UFJ Financial Group (NYSE: MUFG).
With the end of 2022, Cole shares several viewpoints on the restaurant industry.
Restaurant supply remains low
“The number of restaurants per capita is at its lowest point in 25 years against a backdrop of population growth,” Cole notes. “This supply/demand imbalance bodes well for restaurant chains even in the face of potential softening demand as we head into 2023.”
Although restaurant supply is down, Cole does not expect a significant increase in new developments in the near future as construction costs and building supply availability remain prohibitive factors.
Customers have been resilient in the face of economic strain
Cole adds that the decline in restaurant capacity due to the pandemic explains why restaurants have been able to pass on higher operating costs and rising inflation to the customer in the form of price increases, even as customers themselves endure the financial pressures of inflation with greater household expenses.
“Throughout much of the year, we have seen consistently higher sales figures due to rising menu prices and stable foot traffic. However, in the last month or two there are signs that foot traffic might be slowing,” Cole says. “If foot traffic continues to decline significantly, even an offset in prices might not be able to sustain revenue.”
Cole explains that demand starts to slow down when the impact on household budgets makes customers reevaluate their spending patterns, and he expects this trend to continue into 2023 as customers absorb the significant hike in the cost of living.
Margin compression and low M&A
As Cole and his team anticipated in November 2021, M&A has been constrained in 2022 because of margin pressures due to rising commodity prices, workforce shortages, and the need for higher expenditures to attract labor. “The current inflationary environment and resulting margin compression has hurt business results and is therefore driving M&A activity down,” Cole says. He anticipates business performance in the first half of 2023 to be better than in 2022 and potentially spur a pick-up in M&A.
Labor pressures continue to ease
Compared with this time last year, labor pressure has eased significantly within the restaurant sector, Cole says. “Most restaurants report that they are fully staffed now, however it is costing them more to do it. Ultimately, while it is still not easy to staff, pressure has been relieved across the board.”
About MUFG and MUFG Americas
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries. MUFG has nearly 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.
MUFG’s Americas operations, including its offices in the U.S., Latin America, and Canada, are primarily organized under MUFG Bank, Ltd. and subsidiaries, and are focused on Global Corporate and Investment Banking, Japanese Corporate Banking, and Global Markets. MUFG is one of the largest foreign banking organizations in the Americas. For locations, banking capabilities and services, career opportunities, and more, visit www.mufgamericas.com.
Orlando, FL. — The National Mango Board is celebrating mangos breaking the top ten in whole fruit volume velocity. In 2017, Mango held the number 17 spot. Mango’s movement to mainstream, along with support from the mango industry and retail partners has contributed to this growth throughout the last 5 years.
Adding to mango’s success, mango volume grew +0.7% in volume velocity versus a year ago while the fruit category as a whole decreased in volume by -3.5%. We know mango as the world’s most versatile and flavorful superfruit. We are thrilled to see that more and more people are inclined to agree while embracing the joy of mango.
Many resources, education, and hard work went into achieving this substantial growth. Congratulations to the retailers and entire mango industry that contributed to this achievement.
About the National Mango Board
The National Mango Board is an agriculture promotion group supported by assessments from both domestic and imported fresh mangos. The board’s vision, for mangos to move from being an exotic fruit to a daily necessity in every U.S. household, was designed to drive awareness and consumption of mangos in the U.S. marketplace. One serving or ¾ cup of the superfruit mango contains 70 calories, 50% of daily value of vitamin C, 15% of daily value of folate, 15% of daily value of copper, 8% of daily value o
The National Football League’s Buffalo Bills and SnapDragon apple have formed a partnership to raise awareness of the fruit in Eastern markets, according to Crunch Time Apple Growers, Lockport, NY.
“Our partnership with the Buffalo Bills has really been the highlight of our marketing efforts this season,” Jessica Wells of the grower/shipper said. “SnapDragon being the official apple of the team has presented lots of opportunities for promotion and partnership, bringing great awareness to the brand.”
Crunch Time Apple Growers’ 150 growers produce SnapDragon and RubyFrost apples in New York state. The growers’ cooperative is supported by 11 sales organizations in New York, Pennsylvania and Michigan, and fruit is marketed across the country, Wells said.
“Our fruit is primarily conventional, though there is a very small amount of acreage being grown organically,” she said.
This marketing season so far has seen strong movement of SnapDragon apples, Wells said.
Despite inflation and a weakening economy, Wells said the variety has experienced good demand this season.
“We have been pleasantly surprised by the strong movement of SnapDragon since the beginning of the season,” she said. “While production was up significantly over last season, sales growth has outpaced that growth in production. SnapDragon is considered a premium, high-flavor variety and it is selling better than ever!”
RubyFrost sales were just beginning for the season by late December, so Wells said it is too early to say how sales will compare.
“The quality of both SnapDragon and RubyFrost has been great this year and movement is strong so far, which has led to a general optimism,” Wells said.
Crunch Time Apple Growers represents 60% of New York state’s apple production.
A study by the Colombian American Chamber of Commerce (AmCham Colombia), has found that agricultural exports to the U.S. could grow up to 250% over the next 10 years.
This comes as more than 20 products of the agroindustrial sector have obtained sanitary approval, thanks to the free trade agreement shared by both countries.
Colombia’s agricultural exports have become the most important item within non-mining-energy exports in trade with the U.S. The sector experienceda 59% increase in sales, reaching $3,433.6 million between January and September 2022.
The free trade agreement entered into force 10 years ago, boosting agricultural sales to the North American country by nearly four-fold, according to AmCham Colombia.
Fruits, food preparations, sugars and confectionery products, fish, vegetable preparations, vegetable fats and oils and bakery products are among the products with the highest growth in exports.
Colombia currently exports 244 agricultural products to the U.S., including those with phytosanitary approval. However, there is a potential of 433 more products for a total of 677 products that Colombia can sell to that country.
This is “an important fact within the country’s purpose of strengthening non-mining energy exports and generating resources that will help fight poverty and generate formal employment,” according to María Claudia Lacouture, president of AmCham Colombia
“The agricultural and agro-industrial sector is a major driver of Colombian exports,” Lacouture said.
U.S. imports of Mexican vegetables and fruit through Arizona’s Nogales district ports totaled more than $3.86 billion in 2021, up 1% from $3.82 billion in 2020 and up 7% from $3.6 billion in 2019.
According to U.S. trade statistics from the Census Bureau, the value of Mexican produce moving through Nogales in 2021, by commodity, compared with 2020 and 2019:
- Imports of Mexican tomatoes totaled $671.3 million in 2021, down 11% from $756.3 million but up 17% from $573.2 million in 2019.
- Imports of Mexican onions totaled $29.2 million, up 29% from $22.6 million in 2020 but down 43% from $51.2 million in 2019.
- Imports of Mexican cucumbers totaled $330.4 million, down 1% from $333.9 million in 2020 but up 2% from $323.1 million in 2019.
- Imports of Mexican head lettuce totaled $16.5 million in 2021, up 14% from $14.5 million in 2020 and up 63% from $10.1 million in 2019.
- Imports of Mexican lettuce (except head lettuce) were $116.8 million, up 27% from $92.3 million in 2020 and up 156% from $45.7 million in 2019.
- Imports of Mexican Brussels sprouts were $18.9 million, up 27% from $14.9 million in 2020 and up 69% in $11.2 million
- Imports of Mexican asparagus were $81.1 million, down 10% from $89.7 million and down 23% from $105.8 million in 2019.
- U.S. imports of Mexican strawberries were $21.9 million in 2021, up 1% from $21.8 million in 2020 but down 22% from $27.9 million in 2019.
- U.S. imports of Mexican watermelons totaled $259.9 million, up 6% from $245.4 million in 2020 but down 4% from $271.2 million in 2019.
- U.S. imports of Mexican grapes totaled $539.1 million in 2021, up 8% from $500.5 million in 2020 but down 8% from $587.4 million in 2019.
- Imports of Mexican blueberries totaled $42.6 million in 2021, down 4% from $44.4 million in 2020 and down 16% from $50.9 million in 2019.
- U.S. imports of Mexican citrus totaled $50.7 million in 2021, up 10% from $46.3 million in 2020 and up 29% from $39.3 million in 2019.
- U.S. imports of Mexican guavas, mangoes and mangosteens totaled $145.5 million in 2021, down 2% from $147.9 million in 2020 and down 10% from $161.2 million in 2019.
- U.S. imports of Mexican avocados totaled $47.9 million in 2021, up 64% from $29.3 million in 2020 and up 30% from $36.8 million in 2019.
- U.S. imports of eggplant totaled $45.7 million in 2021, down 12% from $52.1 million in 2020 and down 1% from $46 million in 2019.
Peru will continue to be the world’s main exporter of blueberries in 2022 for the fourth year in a row, as reported by Andina, based on projections by the Association of Peruvian Exporters (Adex).
In 2021, Peruvian blueberry exports reached $1.221 billion, reflecting a 172 percent increase of the previous year.
Expectations for the current year are based on good performance in the season thus far and the distance created from the second largest blueberry exporter (Spain), whose share is half of what Peru has recorded.
Since 2004, the Allen Lund Company has supported the efforts of Navidad en el Barrio, an organization dedicated to helping the underserved communities of Los Angeles. Started by former NFL player, Danny Villanueva, and students from UCLA, their mission was to provide a robust Christmas dinner to families in Southern California. The past couple of years have proven to be quite challenging for most, but with great efforts, Navidad en el Barrio has been able to succeed with amazing donors.
“Every year, we look forward to working with Navidad en el Barrio to collect, organize, and distribute groceries for families to make a healthy Christmas dinner. We also rely on our network of truck drivers to move the donations,” said Nora Trueblood, Director of Marketing at ALC, “This year we had help from Jose Roberto Gonzalez of JRG Trucking, who donated his time and truck, Nicolas of County Line Transport Corp., and Taffy of Dreamland Trucking. A&E Arias Transport assists with many loads each year.”
ALC employees volunteered to secure dry goods, produce, and perishables as well as, assist with the transportation of the goods to California for distribution via Navidad en el Barrio.
“More than ever, there is a need for good food for families in need all around Southern California. Once again, Navidad en el Barrio stepped up to provide bags of groceries to more than 15,000 families. Allen Lund Company and ALC Logistics played a crucial role in securing and delivering fresh produce and other grocery items to this program. In addition, we worked directly with Catholic Charities and St. Vincent De Paul to be onsite with the families to facilitate a better Christmas. We are blessed to share our blessings,” stated Executive Vice President, Kenny Lund.
The Allen Lund Company appreciates our Navidad donors immensely and we thank you for your generosity in helping a great cause.
