Archive For The “News” Category
DALLAS — Imports of Mexican Hass avocados continue to make substantial contributions to the U.S. and Mexican economies according to the latest economic contribution analysis conducted by Texas A&M University1 during the 2021-2022 growing season. Since 1997, the avocado supply from Mexico in the U.S. has jumped to more than 2 billion pounds annually1, and more than 4 billion pounds in the last two years alone2 – fueled by consumers’ love of the healthful fruit while also positively benefiting U.S. national and state economies.
The economic analysis1 identifies numerous contributions from U.S. imports of Mexican Hass avocados to the U.S. economy as avocado trades move through the food supply chain and stimulate various market activities. The contributions include:
- $11.2 billion in economic output
- $6.1 billion to the U.S. GDP (value-added)
- 58,299 U.S. jobs
- $3.9 billion in labor income
- $1.3 billion in taxes
“The new data is a testimony to the positive impact the trade relationship between the two countries can have on the overall economies,” said Ron Campbell, Executive Director of the Mexican Hass Avocado Importers Association (MHAIA). “The analysis by Texas A&M University clearly shows how the collaboration between the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and MHAIA is contributing not only to the economic growth of both nations, but also to a localized impact within communities through added jobs, labor income and taxes.”
When comparing results from previous years, this new report reveals the persistent growth and importance of Mexican avocado imports to the U.S. economy. The contribution to total U.S. output increased nearly 560% from $1.7 billion in 2012 to $11.2 billion in 2022. At the same time, the contribution to U.S. GDP (value added) has increased by nearly 410% from $1.2 billion in 2012 to $6.1 billion in FY 2022. The contributions to U.S. labor income, U.S. tax revenues, and employment from 2012 to FY 2022 have also registered dramatic increases3 (465%, 665%, and 418%, respectively).
“The avocado import growth is attributed to two factors – dramatic growth in U.S. demand for avocados and equally dramatic growth in U.S. import supply,” said Dr. Gary Williams, Emeritus Professor at Texas A&M University. “U.S. per capita consumption of avocado fruit has grown to more than 9 pounds1 and promotion programs like Avocados From Mexico have been instrumental in increasing avocado consumption in the U.S.”
The growth of Mexican avocado imports has also had a positive impact on growers in the U.S. and Mexico. The Texas A&M University analysis shows domestic avocado growers have benefited from higher price points and a larger market for their products. In Mexico, avocado farming continues to be a feasible and reliable business venture as the Mexican avocado industry creates approximately 78,000 direct and permanent jobs and more than 300,000 indirect and seasonal jobs, with more than 30,000 growers and 74 packers.
“It’s rewarding to see the economic impact Mexico’s strong partnership with the U.S. has had in meeting the ever-increasing demand for Avocados From Mexico. This partnership has become an economic engine that supplies the growing demand for avocados in the U.S. and opens opportunities for small avocado farmers in Mexico that allows them and their families to thrive,” said Alvaro Luque, CEO of Avocados From Mexico (AFM).
Avocados From Mexico represents a unique collaboration between the two countries: AFM is a non-profit marketing organization that brings together the Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) to promote the consumption of Mexican avocados in the U.S. This has helped fuel the United States’ love for the avocado fruit and builds a bond which benefits both countries economically.
This partnership also benefits consumers. Through AFM, consumers receive healthful avocados that are the freshest, arriving from Mexico in three to five days, and are the highest quality product, with every avocado exported to the U.S. meeting strict dry matter testing requirements. The dry matter test ensures avocados in the U.S. have an adequate oil percentage, which provides the fruit with optimal consistency and delicious taste. The microclimate, volcanic soil and timely rainfall of Michoacán, Mexico, allows avocado trees to bloom year-round in Michoacán, the only region sending Hass avocados to the U.S. 365 days a year. Now, with the recent addition of avocados from the Mexican state of Jalisco, the industry’s ability to meet year-round demand of avocados in the U.S. is further enhancing. Hass avocados now comprise about 95% of all U.S. avocado consumption and are the most widely available1.
A deep dive into all facets of the Mexican avocado industry is available at the Avocado Institute. The one-stop digital resource was created by the parent organizations of AFM, the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and Mexican Hass Avocado Importers Association (MHAIA).
About Avocados From Mexico
Avocados From Mexico (AFM) is a wholly-owned subsidiary of the Mexican Hass Avocado Importers Association (MHAIA), formed for the purpose of advertising, promotion, public relations and research for all stakeholders of Avocados From Mexico. Under agreements, MHAIA and the Association of Avocado Exporting Producers & Packers of Mexico (APEAM) have combined resources to fund and manage AFM, with the intent to provide a focused, highly- effective and efficient marketing program in the United States. AFM is headquartered in Irving, Texas.
1 2022 Update: The Economic Benefits of U.S. Avocado Imports from Mexico
This analysis utilizes the Impact Analysis and Planning Model (IMPLAN) to measure the jobs, revenues, wages and taxes generated by the imports along the value chain on the national and state economies. IMPLAN is an input-output model of the entire U.S. economy that captures the relationships between industries and estimates the economic effects (direct, indirect, and induced). The IMPLAN model reports on four specific types of economic effects: employment contribution, labor income, value-added, and output or gross sales contribution.
2 Hass Avocado Board Volume Data
3 Economic Benefits of the Expansion of Avocado Imports from Mexico, February 2014
By Kenneth Cavallaro, Jr., ALC Boston
Trucking recession? According to a recent Bank of America survey, demand for trucks is actually down 58%. Consumers are spending less money on material items such as televisions and clothing and instead funneling more of their hard-earned funds towards services, reports the U.S. Bureau of Economic Analysis. Kantar’s Entertainment On Demand streaming analytics reveal streaming subscriptions are up 88% since the beginning of 2022. More people are using companies like DoorDash and Grubhub for food delivery. Meanwhile, electricity prices are expected to climb on an average of 20% across the United States this winter and natural gas costs are predicted to increase 36% according to the U.S. Energy Information Administration, presumably further leading to less discretionary spending on material items. What does this mean for the trucking industry?
Our industry is all about supply and demand. The latest data from S&P Global Market Intelligence shows freight rates have continued to fall as global trade volumes slow due to shrinking demand for goods. Freight rate forecasters utilizing the Cass Index have indicated that “freight rates are leveling off and set to slow sharply in the months to come.” So yes folks, we are truly in a trucking recession. Thankfully, with 70% of all goods in the United States moved by the trucking industry, this will eventually resolve. The last recession hit in 2007 and lasted almost two years.
So where do we go from here? Federal investment in our country’s roads, highways, and bridges over the next four years will make it easier for trucks to make on-time deliveries. Drivers will likely see their lives improved by programs like our innovative ALC tracking app, which creates an easier flow of information and allows better estimating on loading and unloading times once they reach shippers or receivers. In addition, our app supports better tracking and provides us with an easily accessible timeline of how the customer’s load is progressing.
Transportation of produce and other refrigerated items leads to even higher rates, partially because of increased fuel usage during wait times for loading and offloading, as the load must be kept at a precise and constant temperature. In addition, wait times are frequently increased when produce coming fresh from the field needs time to cool or produce coming off the truck must undergo quality inspections. Situations such as these increase the amount of fuel the truck requires to keep the reefer running, causing the rates for produce transportation to soar higher than rates to transport non-perishable goods.
With many trucking companies struggling due to the harsh conditions of the current market, company mergers are coming more into play. More trucking companies will likely move in this direction in 2023 if the market does not improve. This would allow more companies to stay afloat, instead of lessening the amount of trucks on the road. Continued urbanization will also allow truckers to traverse parts of the country that were previously off-limits, allowing deliveries to reach more people in less time. There will always be peaks and valleys as we ride this trucking rollercoaster, so buckle up, pull down the lap bar, and hang on for dear life because it is going to be a bumpy ride.
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Kenneth Cavallaro, Jr. is a Senior Transportation Broker in the Boston office. He began his career at the Allen Lund Company in February of 2019. Kenneth has been in the transportation industry since May of 1999. He holds a Bachelor of Arts in Communications from Salem State University.
The port of New York and New Jersey, following a historic flux during August, jumped to the first place as the U.S. busiest shipping port, CNBC reports.
The publication notes that container processing totalled a combined volume of 843,191 TEUs between imports and exports. However, the East Coast gains have led to congestion in Savannah, Houston and NY/NJ.
Kevin O’Toole, chairman of the Port Authority, told the outlet: “We are exceeding pre-Covid numbers. Our planning with rail to complement the actual infrastructure and the dredging are allowing this added capacity that would not have happened four or five years ago.”
This comes as the flow of trade continues to move away from the West Coast with logistics managers worried about a labor strike or lockout.
“While volumes are up, the congestion at the East Coast ports may be at an inflection point after months of record-breaking import levels,” Josh Brazil, vice president of supply chain insights for Project44, toldCNBC.
The Port of Los Angeles ranked third in August, moving 805,314 total containers. That was 37,877 less than the Port of New York and New Jersey, which moved 843,191. The Port of Long Beach came in second, moving 806,940 export and import containers.
Blueberries were the most exported agricultural food in Mexico
during the first quarter of this year, producing over 70,000 tons and representing 15 percent of Mexican berry exports, according to Horticultivos.
The crop has shown growth exceeding 20 percent in recent years, both in growing area and in production.
Currently, about 97 percent of production is exported, or 68,300 tons, to 31 destinations. The main market is the U.S., but it includes important developing countries such as Japan, Hong Kong, and the UAE, among others.
Organic production has taken great relevance globally, with a 15 percent of the blueberry area in Mexico (around 3,360 acres) currently produced organically. About 10,500 tons of organic blueberries have been exported during the current season.
By Shelby Perez, ALC San Francisco
Guam is a small island territory, 3,950 miles away from the nearest American state, 5,806 miles away from my office in San Francisco, and the place I call home. I was born and raised on Guam knowing that food was expensive and that if there were supposed to be six variations of one product, we’d only have two of them on the shelves, always marked up 31% or more. I never understood why romaine lettuce was $10 for a bag of three heads or why “real milk” from California was $9 a gallon. I knew fuel for the giant ships that brought them into the port was probably expensive, but I never considered what it took to get that food onto the ships in the first place.
I am brand new to this industry. I’ve been at ALC for only about five months now and I’ve jumped in headfirst working on one of the company’s largest accounts. This has completely shifted my perspective on what it takes, not only to get goods across the country, but whatit must take to get goods 5,000+ miles across the ocean.
Since my first in-person interview, I have been told many times that farmers and truck drivers are the backbone of America. The more time I spend learning about the industry and working with the many people that help move goods across the country, the more I’m discovering just how true that statement is and how many other people it takes to support them, including us here at ALC. During the height of COVID-19, while everyone was panic buying toilet paper and all the flour and sugar off the shelves to support our newfound baking hobbies; farmers, production line workers, truck drivers, and grocery store employees were working hard to keep the shelves stocked at the cost of their health and safety. I’ve heard so many stories about how my co-workers were working hard to find trucks
Whether it was buying pizza for their carriers, or sending candy and thank you cards, anything to show their appreciation for great service during a time when you would expect most people to be looking out for themselves and their families. ALC and their carriers and customers not only survived,
| but they also thrived, enough that they could hire me this year! I’m proud that I am now a part of this team. I’m proud to know that the people I work with were a part of the network that helped keep America in business, and helped me perfect my banana bread recipe last year too. I’m proud to know that ALC, our carriers, and our customers were able to pivot and adapt to the circumstances of our world. They’ve proven more than ever that they are smart and hardworking people who are ready to take on tomorrow’s challenges and I am fortunate enough that I get to learn from their experiences and carry them with me towards the future as well. Guam is a faraway land for a mainlander and it’s beginning to make sense why that one bag of romaine and one gallon of milk might set me back $20. But who knows, with the experience I continue to gain at ALC, maybe I could be the one to figure out how to get the romaine and milk for $9 on Guam- or maybe all 15 flavors of Cheerios! | . |
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Shelby Perez graduated from Saint Mary’s College in 2020 with a degree in Business and East Asian Studies. She started at ALC San Francisco in May 2022 as a Broker’s Assistant with the national retail store team.
SWORDS, Ireland–(BUSINESS WIRE)–Thermo King®, a leader in transport temperature control solutions and a brand of Trane Technologies (NYSE: TT), has completed initial testing of its innovative evolve™ electric trailer with retailers Walmart and Loblaws, and Martin Brower, a leading supply chain solutions provider for restaurants around the world. During more than 2,500 hours of operation, the battery-powered refrigerated trailer unit delivered excellent performance, ensuring high quality climate control to keep food and other goods fresh. With zero direct emissions, Thermo King’s electric trailer technology can help to significantly decarbonize the cold chain.
“By partnering with our customers, we can help accelerate the industry’s transformation to electrification by applying valuable insights from data collected during these trials,” said Karin De Bondt, president of Thermo King Americas. “With more than 2,500 hours of operation, the learnings bring us closer to a commercialized all-electric trailer unit, help our customers prepare their operations, an ultimately, together we can advance the industry forward.”
“With thousands of refrigerated trailers using diesel fuel today, we have the ability to make a meaningful difference when it comes to reducing greenhouse gas emissions,” said Fernando Cortes, senior vice president of transportation, Walmart U.S. “We were pleased to work with Thermo King on the testing of our first-ever refrigerated trailer operated primarily on battery electricity in the U.S. as we look for solutions to achieve zero emissions by 2040.”
“Our goal is to deliver innovative and meaningful solutions that help restaurants and our business create a more globally sustainable, ethical, and responsible future,”, said Danny Fahey, Martin Brower’s vice president of US strategy and sustainability. “Piloting the Thermo King® electric trailer allows us to support new technologies, which is an essential step toward achieving our ambitious, long-term goal — significantly reducing our carbon emissions per ton and limiting our environmental impact.”
Leveraging Thermo King TracKing® telematics, customer operations data and learnings have been documented with each evolve™ trailer demonstration, directly contributing to future product optimization and innovation. In addition to its current portfolio of products, Thermo King has committed to delivering all-electric, zero-emission solutions for every segment of the end-to-end cold chain by 2023 in Europe and 2025 in the Americas. Through its evolve™ all-electric portfolio, the business will help advance Trane Technologies’ 2030 Sustainability Commitments, including its Gigaton Challenge to reduce customer greenhouse gas emissions by 1 billion metric tons.
About Trane Technologies
Trane Technologies is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our environmentally responsible portfolio of products and services, we bring efficient and sustainable climate solutions to buildings, homes, and transportation. Learn more at tranetechologies.com.
About Thermo King
Thermo King – by Trane Technologies (NYSE: TT), a global climate innovator – is a worldwide leader in sustainable transport temperature control solutions. Thermo King has been providing transport temperature control solutions for a variety of applications, including trailers, truck bodies, buses, air, shipboard containers, and railway cars since 1938. For more information, visit www.thermoking.com or www.europe.thermoking.com.
This news release includes “forward-looking statements” which are statements that are not historical facts, including statements that relate to our commitment to deliver fully electric products in every segment of the cold chain and our other sustainability commitments and the impact of these commitments. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, changes in laws and regulation, global economic conditions, the outcome of any litigation, our ability to develop new products and services and the acceptance of these products in the markets that we serve. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2021, as well as our
The USDA reports citrus volume for the 2021-22 season totaled 5.61 million tons, down 19% from the 2020-21 season.
California accounted for 62% of total U.S. citrus production; Florida totaled 36%, and Texas and Arizona produced the remaining 2%.
Utilized citrus production in California was down 16% from the 2020-21 season.
California’s all orange production, at 40.4 million boxes, is 18% lower than the previous season. Grapefruit production is down 2% from the 2020-21 season and tangerine and mandarin production is down 40%.
Florida’s orange production, at 41.1 million boxes, is down 22% from the previous season, the report said. Grapefruit utilization in Florida, at 3.33 million boxes, is down 19% from last season’s utilization. Florida’s total citrus utilization was down 22% from the previous season.
Utilized production of citrus in Texas is down 46% from the 2020-21 season.
Orange production is down 81% from the previous season and grapefruit production is down 29%. Arizona’s production of lemon up 27%.
The value of the 2021-22 U.S. citrus crop was down 13% from last season, to 2.91 billion packinghouse-door equivalent. Orange value of production decreased 9% from last season and grapefruit value is down 27%.
Tangerine and mandarin value of production is down 18% from last season and lemon value of production is down 13% from last season.
Eggplant also is known as aubergine, or guinea squash, while the berry fruit, scientifically referred to as Solanum melongena, is a staple in cuisines around the world (via Brittanica). It is one of the most diverse fruiting plant families there are, and eggplants come in a range of colors and sizes — from deep purple to white or striped; and from 4 ounces to 1 ½ pounds (via Daily Record) — their diversity matches in variety to the many ways in which the fruit is prepared around the globe.
French ratatouille, Italian eggplant parmigiana, Middle Eastern baba ghanoush, Greek moussaka, Chinese spicy garlic eggplant, and South Asian eggplant curries are just a few examples of eggplant’s worldly reputation. So it may come as a surprise to learn that, of all the places the eggplants are enjoyed far and wide, the place that grows the most of them is much closer than you may think — located right in the USA.
According to Harvesting History, eggplants have been cultivated for thousands of years. Originally harvested in China and India, the fruit gained popularity when it was first introduced to people in Southern and Eastern Europe. However, when eggplants made their way to the Americas during the 1500s, they didn’t catch on quite as quickly. This was because, as members of the Solanaceae family, eggplants are closely related to the belladonna, a plant that has been nicknamed the “deadly nightshade” for its poisonous berries.
For Americans, the eggplant and all of its family members — including tomatoes, potatoes, and bell peppers — were considered guilty by association. It wasn’t until the latter part of the 19th century that the population started to embrace the fruit’s extensive varieties. In the beginning, there was only one type of eggplant: The white eggplant; the color of it is where the Daily Record says it got its name. However, the fruit’s variety was widened when hybridizers started to develop eggplants that wouldn’t bruise during shipment, creating the large, deep purple eggplants that are commonly found today, along with the Indian, Italian, Japanese and Chinese varieties.W
Being tropical plants, eggplants are very sensitive to cold weather — even more so than their infamously finicky cousins, tomatoes. For this reason, eggplants are typically grown as annuals, which Britannica defines as any plant whose life cycle is completed in one growing season. For eggplants, this is during the warm months of the year — making their peak season between July and October.
Eggplants are widely grown across the United States. However, there are less than 7,000 acres dedicated to the fruit’s production each year in places like California, Florida, and Georgia. While yields vary depending on temperature and growing conditions, per the New Jersey Department of Agriculture, producers average about 28,000 pounds of eggplants per acre — generating an average gross income of more than $17 thousand per acre and providing more than enough to support the one pound of eggplant each U.S. citizens consumes on average every year.
Nicknamed “The Garden State,” New Jersey’s reputation for its vast farmland can be legitimized in the state’s production of eggplants alone. According to the Daily Record, New Jersey is responsible for providing 66% of the world’s eggplants, making it the top producer of eggplants in the world. Harvesting 849 acres each year, New Jersey stands ahead of other leading producers like California, Florida, and Georgia.
The state’s well-draining sandy-loam soil — a gardening soil made up of sand, silt, and clay, according to Southern Mulch – and warm summers provide the perfect conditions for eggplants to thrive. With harvests reaching 900 or more bushels a day during peak season, New Jersey yields about 16 million pounds of eggplant, valued at $6 million (via New Jersey Spotlight News). With the majority grown in South New Jersey, most of the state’s eggplants are shipped to the rest of the U.S. and Canada. Varieties include Italian, regular, Sicilian, Indian, striped, white, and fairy tale eggplants for all to enjoy in many different eggplant recipes.
By Yanni Mathelier, Transportation Broker, ALC Orlando
On Wednesday, September 28, 2022, Hurricane Ian made landfall in Florida as a powerful Category 4 storm. Maximum sustained winds were around 150 mph as it hit the Southwest coast. Bringing in close to 20 inches of rain to the state with tons of flooding which ruined many homes, infrastructure, and farm fields. The Orlando office deals with many produce customers shipping out of Florida. The impact of Hurricane Ian has caused many customers to either lose crops and deal with flooded fields or have to replant for the next season. Missing a season in the farming industry can be devastating, detrimental to the farmer, and takes a hit on the transportation industry, therefore affecting consumers.
Ian mainly hit farms across Southwest Florida, and the trickle-down may be felt in grocery stores across the nation, as Florida is a critical spot for farming in the winter when other places are too cold for operations. Florida is one of the world’s largest producers of citrus. The issue most farmers are having down south when it comes to these fruits, is that the trees were badly damaged during the hurricane. This creates a time frame issue that can affect Florida’s economy as the industry already faces increased labor costs and competition from foreign imports. These crops will take a minimum of two seasons for the groves to recover to pre-hurricane production levels.
The question that follows: Is Florida’s citrus industry on a ticking clock? We will soon start to see a rise in citrus prices and lower production numbers. This is something in transportation we must follow as it could negatively affect the capacity in Florida, and as discussed before, the trickle-down to the customer would be inevitable.
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Yanni Mathelier is a Transportation Broker and began his career at the Allen Lund Company in March of 2022. Yanni has been in the transportation industry since January of 2021. He graduated from the University of Central Florida with a Bachelor’s in Business Administration.