Archive For The “News” Category
By Timothy Lanctot ALC Rochester
Vegetable and fruit markets, as well as many other areas of the food industry, have had to tackle a wide range of stressors and supply chain complications over these past two years. Weather-related factors, such as drought, flooding, colder than normal spring temps to name a few, have played a part in low crop production here in the Northeast.
Then of course with the pandemic, labor forces have had to deal with smaller than normal crews / staffs. The cost to the consumer has continued to increase to offset these factors, U.S. consumers paid increased prices for fresh / frozen vegetables and fruits from November 2019 to November 2021. Roughly an increase of 3.5% for frozen vegetables / fruits and approximately a 5.7% increase for fresh vegetables / fruits.
Over that same time period, you can start to see patterns for eating food at home as opposed to eating food away from home or a restaurant. Prices for food items eaten at home has increased by 10.4% overall and prices for food eaten out has increased 9.8%. These price patterns suggest that prices for vegetable and fruits here in the Northeast, have been less unstable, relative to other food sectors.
The Northeast is an economically important region for the production, and certainly the consumption, of many vegetable and fruit products, both fresh and processed. In the nine states that comprise the Northeast region, vegetable crops alone have generated an annual total farm value of approximately $800 million in recent years.
In 2022, as well as for the foreseeable future there are three major factors that will continue to shape the vegetable / fruit industry in the Northeastern United States.
First, at the farm level, the constant supply of productive and qualified labor continues to be the number one issue for all growers. Especially with fresh vegetable / fruit production, labor is the greatest factor in production costs. Of course, ongoing improvements in technology and the substitution of automated, robotic and intelligent machines for workers will continue to occur at the farm level. This change could lead to long run price reductions in production costs and improvements in crop quality.
Second, the consolidation of distribution and related businesses in the middle of the supply chain. There is widespread speculation that we will see additional structural change leading to greater industry concentration. This is part of a trend, but it has also been fueled by COVID-19, which has led to a reduction in the number of produce buyers and increased consolidation among major food retailers given their capacity to adapt to an evolving marketplace, including the expansion into online sales.
Farms in the Northeast will continue to have access to fewer and fewer buyers as more and more mergers and acquisitions occur. This will put added pressure on wholesale and farm-level prices. While at the same time, fewer buyers and increased consolidation among food retailers will increase market power for these food distributors when dealing with consumers. As a result, we could see higher prices for vegetables / fruits in supermarkets, throughout the “fresh” season.
Third, trends in the consumption of vegetables and fruit in the Northeast will be driven largely by income. Recessions and / or pandemics have the capacity to decrease nutritional intake and consumers would resort to more calorie-dense “comfort” foods. Although, some households during COVID-19 have shown to increase the time spent planning and preparing meals at home, there is evidence that this has led to an increase in overall dietary quality and a high vegetable and fruit consumption.
A large share of vegetables (approximately 40%) are typically consumed away from home in the foodservice sector, and any rebound of the foodservice industry is expected to increase overall vegetable consumption. As sited in the 2022 Northeast Vegetable Crop Outlook publication, “Frozen vegetable sales in the food retail market increased dramatically in 2020 and some of that increase was sustained in 2021; this suggests that COVID-19 allowed some consumers to rediscover frozen vegetables and that this category may end up having long run benefits from the pandemic.”
During the pandemic, many consumers became less interested in certain credence attributes (such as how or where the food was grown). It is expected that we will see a resurgence in demand for local and / or organic fresh produce, and this presents a real opportunity for Northeastern producers that are able to supply these markets.
In recent months fresh fruit imports are running higher than expected, and the USDA has upped its import forecast for fiscal year 2022 to reflect higher unit values.
The USDA reported in its May 26 trade forecast U.S. agricultural imports from October 2021 through September 2022 (fiscal year 2022) are expected to increase to a record $180.5 billion, up $8 billion from the February forecast.
The USDA’s May forecast said import values are up more than 20% for the first half of fiscal year 2022 compared the previous year.
The updated fiscal year 2022 forecast for horticultural product imports is $92.2 billion, $3.2 billion above the previous forecast in February.
Fresh and processed fruit imports are expected to rise by $1.2 billion and $1 billion, respectively, as import quantities of these products continue their long-running upward trend and unit values continue to increase, the USDA said.
The May forecast calls for U.S. fresh fruit imports at $17.5 billion, up 7.3% from the February forecast of $16.3 billion and 13% higher than $15.5 billion in fresh imports in fiscal year 2021.
The USDA reported import values of fresh produce commodities for the 12-month period from April 2021 to March 22, with percent change from a year ago:
- Berries (excluding strawberries): $4 billion, up 21%;
- Avocados: $3.22 billion, up 33%;
- Bananas/plantains: $2.46 billion, up 1%;
- Grapes: $1.96 billion, up 14%;
- Citrus: $1.79 billion, up 26%;
- Strawberries: $1.44 billion, up 13%;
- Pineapples: $801.6 million, up 15%;
- Mangoes: $748.5 million, up 15%;
- Melons: $673.8 million, up 17%;
- Kiwifruit: $207.9 million, up 21%;
- Pears: $108.6 million, up 6%;
- Peaches: $64.6 million, down 2%;
- Plums: $27.01 million, down 39%.
Per-capita availability of fresh bell peppers has increased fivefold since 1970, and the long-term rise in consumption doesn’t show signs of stopping, according to statistics from the USDA.
The agency reports farm-level, per-capita availability in 1970 was just 2.16 pounds per person, rising to 2.89 pounds by 1980, 5.88 pounds by 1990, 8.19 pounds by 2000, 10.33 pounds by 2010 and 11.33 pounds in 2019.
The extra bell pepper apparently appear is coming from the U.S. imports since the acreage of bell peppers grown in the U.S. has declined in recent years.
The acreage of bell peppers in the U.S. was 31,200 acres in 2021, down from 34,100 acres in 2020, off from 40,900 acres in 2015 and down from 46,400 acres in 2011.
Instead, imports of bell peppers have helped fuel the growth in consumption, according to USDA trade numbers.
The percentage of the U.S. fresh bell pepper crop accounted for by imports rose from 33.8% in 2000 to 46.92% in 2005, 53.3% in 2010, 59.28% in 2015 and 70.51% in 2020.
U.S. imports of bell peppers rose from $455.7 million in 2000 to $917.4 million in 2010, $1.22 billion in 2015 and topping $1.94 billion in 2021.
Mexico accounted for 74% of total U.S bell pepper imports in 2000, and that share of imports increased to 78% by 2021.
Canada is the second-largest supplier of bell peppers to the U.S. and accounted for 19% of total U.S. imports in 2021, up from 11% in 2000. Other global suppliers of bell peppers to the U.S. market include the Dominican Republic, Honduras, Guatemala, the Netherlands, Israel and El Salvador, according to the USDA.
Walmart is expanding its DroneUp delivery network to 34 sites by the end the year, providing the potential to reach 4 million U.S. households across six states: Arizona, Arkansas, Florida, Texas, Utah and Virginia. This provides the company with the ability to deliver over 1 million packages by drone in a year.
“We continue to expand our delivery operations to help customers get the items they need when they need them, and it’s been an exciting journey,” said David Guggina, senior vice president of innovation and automation. “From Express delivery, where customers can have items delivered to their doorsteps in as little as two hours, to InHome, where they can get those orders placed right into their refrigerators, we’re proud to offer customers multiple options that help them save time and money.”
Between the hours of 8 a.m. and 8 p.m., customers will be able to order from tens of thousands of eligible items for delivery by air in as little as 30 minutes. Customers can order items totaling up to 10 pounds.
After completing hundreds of deliveries within a matter of months across its existing DroneUp hubs, Walmart has seen how drones can offer customers a practical solution for getting certain items, fast. “More importantly, we’ve seen a positive response from our customers that have used the service,” said Guggina. “In fact, while we initially thought customers would use the service for emergency items, we’re finding they use it for its sheer convenience, like a quick fix for a weeknight meal. Case in point: The top-selling item at one of our current hubs is Hamburger Helper.”
Participating stores will house a DroneUp delivery hub inclusive of a team of certified pilots, operating within FAA guidelines, that safely manage flight operations for deliveries. Once a customer places an order, the item is fulfilled from the store, packaged, loaded into the drone and delivered right to their yard using a cable that gently lowers the package.
DroneUp will also offer local businesses and municipalities aerial drone solutions in areas like insurance, emergency response and real estate. For example, a local construction agency can work with DroneUp to monitor on-site job progress through aerial drone photography.
Walmart said the added revenue help offset the cost of delivery and it also serves the entire drone industry by gathering more flight data to expand drone operations in a safe and regulated way.
Guggina said: “Our founder Mr. Sam once said, ‘I have always been driven to buck the system, to innovate, to take things beyond where they’ve been.’ We’re doing just that with drone technology, making it a feasible solution that we know customers and communities will enjoy.”
Easy-peel citrus varieties should increase in popularity which is expected to result in those products surpassing navel oranges in the next few years as the most consumed fresh citrus in the U.S., according to Rabobank research.
In an April report, the company showed South America has greatly increased its exports in the past five years. Since the mid-1990s, U.S. mandarin consumption has surpassed domestic production, and now imports account for about one-third of domestic consumption.
“Availability of mandarins in the U.S. increased at a compound annual growth rate of 6% during the past decade to about 7 pounds per person per year. If the trend continues, in the next few years mandarins will surpass oranges as the most-consumed fresh citrus in the U.S. The attractive combination of convenience, healthfulness, and taste will continue driving consumer demand for mandarins in the U.S.”
Acreage in California has increased more than sixfold in the past 20 years, reaching 67,000 acres in 2021, while acreage in Florida has declined due to phytosanitary pressures, the report said.
At the Advanced Clean Transportation Expo today, Carrier Transicold introduced its eCool family of electric transport refrigeration and cooling products for heavy-duty tractors and trailers, as well as medium- and light-duty trucks. The eCool portfolio encompasses solutions for a wide range of applications to fulfill customer needs for more sustainable solutions that reduce emissions and respond to changes in the regulatory environment. More details are provided in the news release, and a photo is included.
Thank you for giving this your editorial consideration.
Tom Cunningham
For Carrier Transicold
412-486-0076
FOR IMMEDIATE RELEASE
Contact: Mary Udry
706-357-7242
Carrier Transicold’s Electric eCool Series Drives Efficient, Sustainable Transport Refrigeration
LONG BEACH, Calif., May 10, 2022 – Carrier Transicold today showcased a range of electric transport refrigeration and cooling products as part of the eCool™ series, which help lower emissions for customers across the cold chain. Carrier Transicold is a part of Carrier Global Corporation (NYSE: CARR), the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions.
The eCool family, which includes sustainable solutions for heavy-duty tractors and trailers, as well as medium- and light-duty trucks, was featured by Carrier Transicold during the 2022 Advanced Clean Transportation Expo at the Long Beach Convention Center.
“Our eCool portfolio encompasses solutions for a wide range of applications to fulfill our customers’ need for more sustainable solutions that reduce emissions and respond to changes in the regulatory environment,” said Dave Kiefer, Director of Product Management and Sustainability, Carrier Transicold.
“Fundamentally, all eCool products help to push emissions toward zero by using electricity to power the systems, but the technology for each product varies based on what is best for the specific application,” Kiefer continued. “Elimination of the diesel engine also reduces noise, which is especially appreciated when operating in urban and suburban areas.”
The eCool products showcased by Carrier Transicold at the ACT Expo included:
- Vector eCool™ refrigerated trailer system powered by ConMet eMobility – The new system sustainably creates its own power using leading-edge energy recovery and storage to operate an all-electric Vector trailer refrigeration unit. In the Americas, Carrier formed a strategic alliance with ConMet eMobility to offer the PreSet Plus® eHub™ system, which uses innovative in-wheel motor technology to capture and store clean, regenerative energy for the refrigeration unit. Global foodservice distribution leader Sysco is piloting a Vector eCool system to explore ways this new technology can help the company achieve its 2030 climate reduction goals. The Sysco trailer was featured and operable, emissions-free in the Carrier Transicold booth at the ACT Expo.
- Supra eCool™ truck refrigeration unit –An electric complement to Carrier Transicold’s Supra diesel truck refrigeration units, which operates via its own battery module in non-electric truck applications or via the truck’s power supply in battery-electric vehicle applications. When it goes into service in 2023, it will help fleets operating in California that are subject to new regulations requiring adoption of zero-emission systems for truck refrigeration.
- Neos 200e for light-duty vehicles – This latest addition to the Neos platform adds compatibility with battery-electric vehicles, greater operating efficiency and more capacity than the model it succeeds.
- ComfortPro electric auxiliary power unit (APU) – The new lithium-ion battery-powered version of Carrier Transicold’s electric APU outperforms electric systems using conventional absorbent glass mat (AGM) batteries, providing up to 17 hours of continuous air conditioning. Exclusive features include a variable-speed compressor, cabin pre-cool lock and a high-power battery pack that is independent from the tractor’s lead-acid battery.
Carrier Transicold eCool products can also use refrigerants such as R-452A that have a significantly lower global warming potential than R-404A, the longtime standard refrigerant used in most transport refrigeration systems.
Additionally, Carrier Transicold’s telematics platform can be used with transport refrigeration units in the eCool family to provide remote temperature monitoring, unit location and movement details, as well as battery status and system performance.
Energy efficiency is critical to Carrier’s progress in reducing its customers’ carbon footprint by more than one gigaton, while also achieving carbon neutral operations by 2030, as outlined in its bold Environmental, Social and Governance (ESG) Goals.
For additional details about Carrier Transicold’s eCool family of electric products, turn to the experts in Carrier Transicold’s North America dealer network.
About Carrier Transicold
Carrier Transicold helps improve transport and shipping of temperature-controlled cargoes with a complete line of equipment and services for refrigerated transport and cold chain visibility. For more than 50 years, Carrier Transicold has been an industry leader, providing customers around the world with advanced, energy-efficient and environmentally sustainable container refrigeration systems and generator sets, direct-drive and diesel truck units, and trailer refrigeration systems. Carrier Transicold is a part of Carrier Global Corporation, the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions. For more information, visit transicold.carrier.com. Follow Carrier on Twitter: @SmartColdChain, on Facebook at Carrier Transicold Truck/Trailer U.S. & Canada and on LinkedIn at Carrier Transicold Truck Trailer Refrigeration.
By Zach Griebling, ALC Denver
Last year in the summer of 2021, Lake Mead and Lake Powell, two of the largest reservoirs in North America, reached an all-time low. Over time there have been different megadroughts that have occurred throughout history, the one we are currently in has lasted over 22 years. During these unprecedented times ranchers and produce farmers have dealt with water shortages as well as wildfires.
In February 2022, the federal government announced that they would not be deliveringwater to farmers in California’s agricultural belt which provides roughly 25% of our nation’s food. The federal government operates the Central Valley Project in California, a complex system of dams, reservoirs, and canals. This is the fourth time in the last decade that farmers of the San Joaquin-Sacramento River Delta have received no federal aid from the government.
With the uncertainty of the amount of water that will be available to farmers this year, we could see loads out of California drop, creating problems for carriers on the West Coast that depend on produce out of this area to support their business. California growers may need to shift their plans for acreage in the state if they have an option elsewhere. Other growing regions will need to pick up the slack because some crops traditionally grown in California will likely come from more local areas, which will further strain transportation needs. We will be watching to see how Mother Nature may affect rates not only in California but around the country.
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Zach Griebling is a transportation broker in the ALC Denver office.
Per-capita availability of U.S. fresh blueberries and raspberries at the retail level has more than doubled in the past decade, according to USDA data.
From 2010 to 2019, per-capita availability of blueberries at retail has grown from 1 pound to 2.1 pounds, a twofold-plus gain. During the same period, per-capita retail availability of raspberries has also more than doubled, from 0.3 pounds in 2010 to 0.80 pounds in 2019.
Strawberries still represent the most widely consumed fresh berry, with the USDA reporting 5.3 pounds retail per capita in 2019.
However, that number is down about 19% from 6.6 pounds in 2010, the USDA said.
Per-capita consumption of blueberries from 2010 to 2019, in pounds, was:
- 2010: 1.0;
- 2011: 1.2;
- 2012: 1.2;
- 2013: 1.3;
- 2014: 1.4;
- 2015: 1.5;
- 2016: 1.6;
- 2017: 1.6;
- 2018: 1.8; and
- 2019: 2.1.
Per-capita consumption of fresh raspberries from 2010 to 2019, in pounds, was:
- 2010: 0.2;
- 2011: 0.3;
- 2012: 0.3;
- 2013: 0.3;
- 2014: 0.7;
- 2015: 0.8;
- 2016: 0.7;
- 2017: 0.8;
- 2018: 0.7; and
- 2019: 0.8.
Per-capita consumption of strawberries from 2010 to 2019, in pounds, was:
- 2010: 6.6;
- 2011: 6.8;
- 2012: 7.4;
- 2013: 7.4;
- 2014: 7.3;
- 2015: 7.1;
- 2016: 6.8;
- 2017: 6.3;
- 2018: 5.9; and
- 2019: 5.3.
Peruvian fresh asparagus continues to enjoy a prominent place in the U.S. market. In 2021, U.S. imports from Peru increased 9% over the previous year, according to USDA statistics, to 224,871,286 pounds. Ranked as a principal source country for fresh asparagus, Peruvian imports account for almost US $274 million annually.
At the Peruvian Asparagus Importers Association’s (PAIA) May 12, 2022 meeting, members discussed industry topics and other points related to the continued supply from Peru. “As a significant source of fresh asparagus, Peruvian supply contributes to keeping U.S. retail and foodservice stocked with a consistent, quality supply of this fantastic product,” says Walter Yager of Alpine Fresh in Doral, Florida, and Co-Chair of PAIA. “Our upcoming supplies look excellent and should allow for great promotional and sales opportunities.”
Yager and Co-Chair Jay Rodriguez of Crystal Valley Foods in Miami, Florida, will continue leading PAIA during 2022 and 2023, providing consistency for the association’s vision and activities. “Peru is a significant contributor to the U.S. consumer’s table and we want to ensure an uninterrupted supply of this nutritious item,” says Rodriguez. “For over 20 years, our association has been dedicated to improving trade in Peruvian asparagus. It’s such an important vegetable for our customers, both retail and foodservice, and for consumers as well.”
The association will focus efforts in 2022 on working with trade press, supermarkets and consumers to education more about the benefits of fresh asparagus. As U.S. consumers look for alternative, interesting, and healthy products, the association anticipates increasing consumption and demand for fresh asparagus in 2022.
For more information about PAIA, visit:
peruvianasparagusimportersassociation.com
PAIA Mission Statement:
The Peruvian Asparagus Importers Association (PAIA) is an organization of US companies involved in the trade of importing fresh Peruvian asparagus within North America. We are committed to improving the process and present a united forum through which dialogue and progress is achieved. We represent the industry to the trade and focus on issues of political and logistical importance.
By Jenilee Curley, ALC Phoenix
A drought can adversely affect many sides of the supply chain industry, in particular, produce.
In areas that rely on rainfall for agricultural production, a drought can reduce crop harvest numbers and greatly affect farm profitability. Droughts can also affect the amount of snowfall and water flow needed for diversions to transport water to irrigated farmlands. These nfluences can lead to undesirable outcomes across all levels of the economy.
On a local level, farm income is reduced and the food processing sector is negatively impacted. On a national level, produce experiences price increases. The drought the Western U.S. is now experiencing has a lot to do with climate change and has had an enormous bearing on the agricultural industry. In particular, the Southwestern states of California and Arizona, where about two-thirds of the country’s vegetables, fruits and nuts are produced.
According to the California Department of Food & Agriculture, “California alone averages $50 billion in annual revenue in the agriculture industry.” In the past year, the drought has caused a $1.2 billion direct loss in California agriculture.
The snowfall in Nevada and Colorado mountains are a big contributor to the Colorado River, but with hotter weather in recent years, the snow melts a lot sooner in the year. This has consequently led to snowmelt contributing less and less water with each succeeding year.
The Colorado River is the core of the Southwest. Since the 1920s it has been providing water and power to seven states, including the 30 Native American tribes that reside in the Colorado River Basin. Until recently, the river has been running dry due to the severe drought. Lake Powell and Lake Mead are amongst the largest reservoirs in the United States. In 2000 they were full, but today only sit at 30% capacity, according to Brad Udall at Colorado State University.
Out of major concern, the water leaders in Arizona, Nevada and California signed an infamous drought agreement in 2019 that allows states to cut back on water usage. This cut back has been a huge strain on communities in California and Arizona, shrinking water supplies to tens of millions of people and farms that produce 90% of the country’s green leafed vegetables. Cruel evidence can be seen in Pinal County in Arizona, where acres of once planted land now lay unplanted, deserted by their previous farmers. Farmers fear that a decline in farm productivity, as a result of water shortages, will result in less profit for them.
A consequence of higher costs to maintain water supplies, will lead to higher produce prices for consumers across the country.
“This production increase in costs is affecting local governments as well as workers who transport food products.”, said Danny Merkley, director of water resources for the California Farm Bureau. Dwindling wells and dried up canals from less ground water to go around prompted President Joe Biden to sign the bipartisan infrastructure bill in November. The bill will help provide several billion dollars to Arizona and California farms.
With produce season around the corner, only time will tell which direction this year’s produce season should follow. The produce season in the Southwest will depend on the elasticity of supply and demand. What is certain, though, is this drought is harming our farmlands and as a result we need to better conserve our water usage. If we do not, we’ll find ourselves in an even tighter supply chain.
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Jenilee Curley is a transportation broker in the ALC Phoenix office. She attended Arizona State University and received a degree in Supply Chain Management, before obtaining a Master’s in Secondary Education with an emphasis in Mathematics from Grand Canyon University.