Archive For The “News” Category
Florida’s citrus, vegetable and melon production suffered the greatest financial losses in Hurricane Ian, according to Christa Court, director of the program and assistant professor in the UF/IFAS food and resource economics department. IFAS is the Institute of Food and Agricultural Sciences at the University of Florida.
Court spoke recently on a virtual press conference. At the same time, IFAS released a new document, “Preliminary Assessment of Agricultural Losses and Damages resulting from Hurricane Ian,” from the UF/IFAS Economic Impact Analysis Program. This summarizes losses from Ian, which struck Florida’s southwest coast on Sept. 29, then slowly crossed the peninsula, with winds as high category 4 and 20 or more inches of rainfall in some areas.
University of Florida economists predict the combination of seasonal crops, livestock, nursery and aquaculture products potentially lost as a result of category 4 Hurricane Ian will likely be valued between $787 million and $1.56 billion.
Preliminary IFAS estimates are that losses to Florida citrus due to Ian will be in the range of $147- to $304 million. The variance depends on the level of fruit drop, damage to branches, and impacts due to heavy precipitation and flooding.
Vegetable and melon losses are estimated to sustain significant production total between $208- and $394 million. Vegetable and melon impacts are heavily dependent on the ability (or inability) to replant damaged or destroyed crops.
Horticultural crop losses may fall in the range of $154- to $297 million. Field and row crops face as much as $160 million in losses and animals and animal products losses could be as high as $222 million. The estimated top level of cumulative losses for these categories is $1.56 billion.
“Even though the coast – an area with comparatively less agricultural production than inland areas – bore some of the worst impacts of the storm, the strong winds and heavy rains battered a wide swath of the peninsula that includes over five million acres of agricultural land,” IFAS’ Court indicates. “This estimate only accounts for production losses, or changes in expected revenues for the current calendar or market year; citrus, for example, had not yet begun harvesting, and some fall vegetables, like tomatoes and peppers, were already planted.”
Some commodities were already looking at lower expected production due to a hard freeze event in January that affected much of the same acreage, she added.
“Southwest counties that got hit the hardest by Hurricane Ian have remained in rescue and recovery mode; we anticipate our assessments will not be complete for several weeks,” Court indicates in IFAS’ release. “Our preliminary estimate is a range, a wide range, to account for many of these unknowns. What isn’t destroyed might have diminished yield or quality, which will not be apparent for weeks or months, and then even more effects can appear in the long-term.”
Court said the survey will remain open for an undefined amount of time. The program will release a full report once analyses are completed.
In response to an announcement of a merger between national grocery chains, Kroger and Albertsons, the National Grocers Association (NGA) of Washington, D.C. has released the following statement:
“A merger of the nation’s top two grocery chains should raise serious questions about a single supermarket giant gaining unprecedented dominance over the nation’s food supply chain,” said Greg Ferrara, NGA president and CEO.
“A merger would not only put smaller competitors at an unfair disadvantage, but also increase anticompetitive buyer power over grocery suppliers, which ultimately would harm consumers. It is our expectation that this deal will receive rigorous scrutiny from federal antitrust enforcers.”
NGA filed comments in April of this year to the U.S. Department of Justice Antitrust Division and U.S. Federal Trade Commission’s January 18, 2022 Request for Information on Merger Enforcement. NGA issued a White Paper in March of 2021 about the anticompetitive impacts of buyer power on the grocery supply chain.
About NGA
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
Duane Hansen set a new world record to commemorate his 60th trip around the sun.
The Syracuse, Neb. resident grew a pumpkin that clocked in at 846 lb. (and appropriately named it Berta). He hollowed it out to create a makeshift boat.
Hansen jumped in his pumpkin and launched from the Missouri River boat ramp in Bellevue, Neb. at 7:30 a.m. on August 27. Eleven hours and 38 miles later, he docked in Nebraska City, Neb. Hansen’s 38 miles afloat in his orange vessel eclipses the previous record of 25.5 miles, which was set in 2018 by a man who paddled from North Dakota to Minnesota, according to Guinness World Record.
Hansen say he ad been dreaming of this feat and worked for five-years to grow a pumpkin that was large enough.
When it comes to “Fresh for Everyone,” Kroger is poised to significantly extend its reach. The Cincinnati-based supermarket chain entered a definitive agreement with Albertsons Cos., Oct. 14, to purchase the Boise, Idaho-based competitor for approximately $24.6 billion.
The merger will expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households with a premier omnichannel experience, according to a release.
Together, Albertsons and Kroger currently employ more than 710,000 associates and operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers. The combination creates a “premier seamless ecosystem” across 48 states and the District of Columbia, providing customers with a “best-in-class shopping experience” across both stores and digital channels, said the release.
Amid a climate of rising food inflation, Kroger said its “long track record of lowering prices” in combination with efficiencies gained from the merger, will help the company to lower prices for customers. Kroger said it expects to reinvest approximately half a billion dollars of cost savings from synergies to reduce prices for customers, as well as invest an incremental $1.3 billion into Albertsons stores to enhance the customer experience.
“We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders,” said Rodney McMullen, Kroger chairman and CEO, who will continue serving as chairman and CEO of the combined company, in the release. “Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors.
“As a combined entity, we will be better positioned to advance Kroger’s successful go-to-market strategy by providing an incredible seamless shopping experience, expanding Our Brands portfolio, and delivering personalized value and savings,” McMullen continued. “We’ll also be able to further enhance technology and innovation, promote healthier lifestyles, extend our health care and pharmacy network and grow our alternative profit businesses. We believe this transaction will lead to faster and more profitable growth and generate greater returns for our shareholders.”
Albertsons agrees the merger will result in greater access to fresh food across the country.
“At Albertsons Cos., we are guided by an ambition to create customers for life,” said Vivek Sankaran, CEO of Albertsons. “Together with Kroger, our combined iconic banners will be able to provide customers with even more value and greater access to fresh food and essential pharmacy services. Given the similarities in the culture and values at Kroger and Albertsons Cos., I am confident that the combination will also have a positive impact on our associates and the communities we are proud to serve. We look forward to working together with Kroger to capture the compelling opportunities ahead.”
The transaction is expected to close in early 2024, subject to the receipt of required regulatory clearance and other customary closing conditions, including receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, according to the release.
By Dave Comber, ALC Madison
Most of us have enjoyed cranberries one way or another. Whether drinking one of the varieties of cranberry juice, as a salad topping, as an ingredient in a dessert, or as the cranberry sauce staple in the holiday season meal in the U.S. We have all at least tried cranberries in one form or another. Have you ever thought about all it takes to get cranberries from the farm to our households? The season to harvest cranberries is upon us now in full swing to get them to us for the holiday and the remainder of the year in all varieties, we enjoy them on a regular basis.
Cranberries are one of the few types of berries native to the U.S, with Wisconsin and Massachusetts producing more than 90% of the cranberries grown in the country. As most in the transportation industry are aware, shipping produce is no easy feat, and
transporting cranberries is no exception. Cranberries need to be handled with care.
The cranberry harvest begins in mid-September for most cranberry-producing states and runs through mid-November. Harvesting dry and wet cranberries are accomplished in two ways. Dry harvesting is a popular way for many small farmers as it doesn’t require as much coordination and machinery as wet harvesting. A device similar to a lawn mower pulls the berries off of the vines and into burlap sacks. While this is an easier method, a greater percentage of cranberries do get damaged. Wet harvesting is a method used by
large farms that work with major juice companies like Ocean Spray. Bogs are closed off and flooded with about 18 inches of water. Water reels are sent off on the water to stir up the plants and knock the berries off the vine. Cranberries have little pockets of air in them, so they float to the surface of the water. Nets and floating barricades are then used to move the berries to where they can be collected.
Before cranberries can be shipped they need to be carefully packaged for their journey. Cranberries have tougher skin than most other berries, but they still need to be handled with care. There are a couple of methods used to package them. They can be packaged in plastic bags with holes to vent out excess moisture, or in clamshell packaging. They then need to be placed in sturdier boxes that can support the weight of them being palletized. If shipping cranberries in bulk, they are put in plastic or fiberboard bulk bins to be placed in the truck.
Cranberries do not typically require any temperature regulation if they are being transported short distances. Frequently cranberries are transported only short distances from the farm to where they are being processed. However, if transporting cranberries in very cold or hot temperatures, or if shipping directly to stores at greater distances from the farm, then cranberries need to be transported in a refrigerated (reefer) trailer. Cranberries transported in a reefer should be kept at a temperature of 36 to 39 degrees Fahrenheit. Cranberries generally can be stored for up to three to four months if kept at this temperature. Outside of these temperatures, cranberries can become damaged. If cranberries are kept too warm they will deteriorate and begin to rot within a few hours. If cranberries get too cold, they will turn brown and the inside will become tough and rubbery. It’s important that the temperature remains at the proper temperature to avoid any damage upon delivery.
As we get closer to the holiday season in the U.S., we think about all the good food we are going to enjoy with family and friends. More than likely, we will have cranberries in one form or another at the holiday meals. Enjoy and remember all it took to get cranberries from the farm to your dinner table.
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Dave Comber is the manager of ALC Madison and has been with the Allen Lund Company for eight years. He worked for three years as the assistant manager, before being promoted to his current role. Comber brought with him over 20 years of management and customer service experience within the transportation industry from Northern Freight Service, Inc. and Schneider National, Inc. Comber attended Lawrence Univercity in Appleton, WI and earned a B.A. in Liberal Arts with a Major in History.
The worst congestion is plaguing U.S. seaports “since the age of containerization”, according to Logistics Management.
The publication credits backlogs of imports coming into the country, a shortage of equipment, and inland blocks as the main causes for this situation.
“U.S. seaports face the unprecedented situation where they’re now in their 17th straight month of record container import volume,” says Chris Jones, executive VP of industry and service at Descartes Datamyne.
“Consequently, continuous and shifting congestion and delays, and unpredictable lead times for importers has resulted”, Jones shared.
Presently, the ports of Los Angeles (POLA) and Long Beach (POLB) handle approximately 40% of U.S. imports. On the other hand, the port of New York and New Jersey processed 4,651,094 TEUs in 2021, ranking in third.
Consistent problems
Schedule reliability remains a significant problem for carriers, the outlet states. During 2021, West Coast ports reported long delays, with the East and Gulf coast ports now experiencing the same.
Meanwhile, seaports remain flooded with containers as labor negotiations on the West Coast are ongoing. Discussions have significantly affected shippers who remain concerned about slowdowns and potential strikes, Logistics Management reports.
Delaware River Valley seaports should reach an all-time high this fall and winter with fresh fruit and vegetable imports.
Peru and Chile are driving the key growth with increased volume and more varied production from growers.
Chilean imports at Philadelphia started 50 years ago.
The port’s reefer container cargo has grown by an average of 12 percent since 2012.
PhilaPort is the brand used by the Philadelphia Regional Port Authority, a Pennsylvania agency located in Philadelphia.
Nomenclature and statistical references for the Delaware River are complex because there are major port facilities in three neighboring states.
Thirty miles south of Philadelphia, the Port of Wilmington, Delaware, offers a huge and expanding fresh produce import trade. In Gloucester City, NJ, facing Pennsylvania from across the wide river, are massive dock and warehouse facilities owned by Holt Logistics Corp.
Countless businesses along the river and scattered throughout this sprawling metropolitan area coordinate with state and federal agencies to build their fruit business.
Family businesses owned by the Holt’s, Manfredi’s, Procacci’s and Kopke’s, and other families, have invested countless millions of dollars to boost port cold storage and other infrastructure.
Americold, Lineage, and other cold warehouses are also expanding to meet demand.
Manfredi Cos., Inc., of Kennett Square, PA offers extensive cold storage space, as well as transportation, logistics, and repacking services to all Delaware Valley docks.
Manfredi used to used imports from the area to fill seasonal gaps of domestic products, but now is importing the year-round. The company also notes offshore growers are making significant investments for volume growth for the next 15 years.
Summer citrus imports historically preceded a market void before Peru filled the market. Now for Manfredi, imported citrus is in its warehouse12 months a year, creating a different approach to warehouse planning.
Peruvian fruit production has been arriving earlier and earlier into the Delaware River, with the first ships of 2022 arriving in July. Peruvian grapes came into the market this September as a precursor to the Chilean deal.
Grapes and blueberries are Manfredi’s largest-volume Peruvian products. Avocados rank third. Peruvian citrus and mangos are also up for the cold storage.
Moroccan Clementines arrive in the fall and winter. For this season, Manfredi awaits Moroccan growers’ projections, although they are expected to be similar to last season.
Manfredi has recently been working with Brazilian mango growers to have a new program into the Delaware River. Refrigerated containers of Brazilian grapes began arriving here late last summer.
PhilaPort notes Brazil, South Africa’s Western Cape, North Africa, Spain, and Portugal, are all looking to increase volumes for delivery in the Delaware River.
PhilaPort on April 27 announced the maiden call of a new MSC service to the Port of Philadelphia. Running the route named “Indus 2” is the 6,730-TEU (20-foot Equivalent Unit) container vessel MSC Michaela.
Indus 2 embarks from Mundra, India. Subsequent calls are Nhava Sheva, India, and after the Suez Canal, there are stops in Gioia Tauro, Italy; Barcelona, Spain; Sines, Portugal; and then on to Halifax, ending at Philadelphia’s Packer Avenue Marine Terminal.
PhilaPort credits Packer Avenue Terminal operator, Holt Logistics, with doing a great job with the customer base and made Indus 2 a reality.
Indus 2 offers opportunities for cold chain produce volume increases from Mediterranean countries. These may include frozen Egyptian vegetables and Italian gourmet meats.
A big part of the U.S. onion shipments originate from Idaho and Oregon.
Idaho harvest onion acreage in 2021 was reported at 10,900 acres, the same as 2020 but up from 8,400 acres in 2018.
Oregon’s harvested onion acreage in 2021 was reported at 21,800 acres by the USDA, up 7% from 20,300 acres in 2020 and up 13% from 19,300 acres in 2018.
In 2021, Idaho onions accounted for 15% of all U.S. onion shipments reported by the USDA, while Oregon commanded a 13% share of all U.S. shipments.
Idaho onion shipments were reported in all months during 2021, but the heaviest shipments were reported from September through April.
Domestic truck shipments of Idaho onions totaled 11.24 million 50-pound bag equivalents in 2021, with export truck shipments reported at 478,000 bags.
Idaho’a piggyback onion shipments were reported at 4,000 50-pound bags, while rail shipments of Idaho onions totaled 1.98 million 50-pound bags.
Oregon’s domestic truck shipments of onions totaled 9 million bags in 2021, while export truck shipments of Oregon onions were reported at 904,000 bags. As with Idaho, Oregon onion suppliers shipped during every month of 2021, with the heaviest volume from September through April.
Oregon’s piggyback shipments of onions in 2021 totaled 70,000 bags, while rail shipments of Oregon onions tallied 1.87 million bags, according to the USDA.
The United States is by far the largest importer of fresh fruit and vegetables worldwide and imports continue to grow, according to this analysis by Fruit & Vegetable Facts. Including in the first half of this year. In 2021, the United States imported 21.5 million tons of fresh fruit and vegetables. Germany is the 2nd largest importer worldwide with a quantity of about 9 million tons. In the first half of this year, imports from the United States grew by 3%.
More than half of the imports come from neighboring Mexico. In the first half of this year, however, imports from this country lagged slightly behind those in the first half of last year. The top 3 of imports from Mexico consists of tomatoes, peppers and avocados.
Other important suppliers to the United States are Guatemala (especially bananas), Costa Rica (pineapples and bananas), Canada (cucumbers, tomatoes and peppers) and Ecuador (especially
bananas).
Imports from Peru and Chile
Peru and Chile are respectively the 5th and 7th suppliers of fresh fruit and vegetables to the United States. Imports from Peru continue to grow. This year in the first half the amount was 18% more than last year and will exceed the 1 million ton mark on an annual basis.
Grapes and onions are the main products imported from Peru. Blueberries take third place. Last year, for the first time, they exceeded 100,000 tons. Asparagus, avocados, bananas and mandarins are the other main imports from Peru.
Imports from Chile seemed to have passed their peak, but in the first half of this year they still grew by more than 10%. Grapes are by far the most important product. Until a few years ago, some 20,000 tons of peppers were imported from the Netherlands, but last year that was only 1,400 tons. Onions (6,100 tons) and beetroot (5,300 tons) were more important last year.
Exports
The United States is also a major exporter. Annually it exports about 6 million tons. Exports are decreasing with mainly the export of home grown products. The re-export was increasing, but stagnated in the first half of the year. The re-export mainly concerns bananas to Canada. Canada is also by far the most important customer for the export of home-grown products in the United States. Mexico is number two and far behind Korea, Japan, Taiwan and Hong Kong. The Netherlands and the United Kingdom follow. This mainly concerns sweet potatoes.
ATHENS, GA – With significantly reduced global warming potential (GWP), new-generation refrigerant R-452A will become the standard for new Carrier Transicold transport refrigeration units in North America beginning later this year, helping customers improve sustainability profiles and achieve regulatory compliance.
“Carrier Transicold truck and trailer refrigeration units have been qualified for R‑452A since 2017, and it has been available as a customer-specified option for several years,” said Bill Maddox, Senior Manager, Product Management, Carrier Transicold. “R‑452A is already standard with some of our newer units, and we’re pleased to expand this standardization to the broader array of Carrier Transicold products, effectively halving the refrigerant GWP of our transport refrigeration offerings.”
Beginning in October, R-452A with a GWP of 2,140, will become the standard refrigerant for all Carrier Transicold models that currently use R-404A, which has a GWP of 3,922.
The timing of the transition will help California customers placing orders for 2023. The California Air Resources Board (CARB) this year approved a measure requiring all new transport refrigeration units placed into service in 2023 to use a refrigerant with a GWP of less than 2,200.
In 2025, Canada will require refrigerants with a GWP of less than 2,200 in new transport refrigeration units, to reduce greenhouse gas emissions in accordance with the Kigali Agreement of the Montreal Protocol.
Previously, there was a significant cost differential between the new and traditional refrigerants, however over the last several years that has diminished with changing demand and refrigerant production trends, helping to encourage adoption of the more sustainable R-452A.
Maddox added some customers may consider switching refrigerants for units already in service, noting that with relative ease, Carrier Transicold customers can transition newer existing equipment from R-404A to R-452A. Unlike some competitive systems that require replacement of a thermal expansion valve when converting, late-model Carrier Transicold systems – those with an electronic expansion valve – simply require a software upgrade along with purging the R-404A and replacing it with R-452A. On Carrier Transicold truck units and older trailer units that use a mechanical expansion valve, the valve will require a manual adjustment or, in some cases, replacement based on the age of the model.
Standardizing on lower GWP refrigerants is part of Carrier’s commitment to 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 more information about R-452A for transport refrigeration applications, turn to the experts within 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.