Archive For The “News” Category
MONTEREY, CA — Total organic fresh produce sales for the first quarter of 2022 increased by 4 percent from the same period last year, topping $2.3 billion for the quarter, according to the Q1 2022 Organic Produce Performance Report released exclusively by Organic Produce Network and Category Partners.
While organic fresh produce sales continued to grow in Q1, overall volume declined due to elevated pricing. Conventional produce showed the same pattern, with sales up 7 percent for the quarter (totaling $16.8 billion) and volume declining by 2.7 percent.
Higher average retail pricing in Q1 is responsible for most of the sales gains of produce items, with conventional produce average pricing up more than 10 percent compared to Q1 of last year. By contrast, organic fresh produce pricing rose just below 5 percent, suggesting it has been able to absorb more of the increased costs related to the current inflationary environment.
“There are some strong takeaways from the Q1 data, most notably that overall volumes remain elevated from Q1 2019, before the Covid pandemic drove double-digit sales and volume gains at retail,” said Tom Barnes, CEO of Category Partners. “We believe the second quarter of this year will tell a similar story as we move further away from 2020 when the pandemic shuttered most foodservice, causing supermarket sales to soar.”
Packaged salads continued to dominate in total organic dollars, reaching nearly $400 million for the quarter, a gain of 1.5 percent year-over-year. The berry category (which includes strawberries, raspberries, blueberries, and blackberries) grew 9.3 percent in sales from Q1 2021, with strawberries posting gains in both dollars and volume of more than 16 percent. Blueberries, on the other hand, were down 7 percent in dollars and 19 percent in volume from the previous year.
“While organic fresh produce volume declined for the first time in a long while, organic dollar sales continue to grow even after consecutive years of growth due to higher prices across the entire produce department,” said Matt Seeley, CEO of Organic Produce Network. “There remains room for growth of organic fresh produce as long as suppliers remain aware of not only the rising costs of organic produce but also the opportunity presented by a significantly larger increase in conventional produce prices.”
The southern region of the US continued to show the most year-over-year improvement, with dollar growth rising 8 percent, and volume up 3.6 percent. The Northeast was the weakest region, with dollars declining 1.1 percent and volume down 7.7 percent.
The Q1 2022 Organic Produce Performance Report utilized Nielsen retail scan data covering total food sales and outlets in the US over the months of January, February, and March of this year. The full Q1 2022 Organic Produce Performance Report is available on the Organic Produce Network website here.
OPN is a marketing organization serving 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. The OPN audience includes organic producers, handlers, distributors, processors, wholesalers, foodservice operators, and retailers. www.organicproducenetwork.com
BOGOTA, CO – Goldenberry Farms™ has begun shipping the initial boxes of Sweet Sugar Mangos™, an ultra-sweet and miniature mango variety, trademarked by the company. These naturally grown tree mangos easily fit in the palm of your hand and are unique due to their ability to be eaten with their skin, giving it the nickname of “lunchbox mango.”
The Sweet Sugar Mango has a red, fragrant flesh with a sweet juicy taste and a brix level of 22. Unlike some other exotic mangos, Sweet Sugar Mangos™ do not have a fibrous taste. These miniature mangos are grown naturally, non-GMO, and have a peak harvest season of April through September.
Sweet Sugar Mangos™ are exclusively grown commercially in the Magdalena Region of Colombia, close to Santa Marta on the Caribbean Coast. The tropical environment and unique locale create an ideal microclimate for this specialty fruit. The small fruit is highlighted for its extreme popularity in the region.
“This variety is really special, it is smaller and more sweet and fragrant than the Ataulfo and Honey mango, and much more convenient to eat. It’s very popular with parents and children who really love the fact that they can be eaten without peeling,“ commented brand Development Director Christopher Palumbo.
Sweet Sugar Mangos™ are offered commercially in 2 kilo (4.5 pound) cases, which hold between 18-24 mangos each. Specially branded retail kits and mini boxes are available to merchandise the Sugar Mangos™ in store.
Goldenberry Farms™ expects to offer up to 6,000 cases weekly of Sugar Mangos™ and Sweet Sugar Mangos™. The fruit is available to customers globally, and pending the final permissions for entering the USA market, which is expected for this season.
Several factors are expected in a significant drop in Chilean citrus exports, most of which typically are bound for the U.S. Among the challenges this season because there are the
increasing cost of logistics, which have practically doubled. Added to this are the problems arising from COVID. In the Chinese market there are still many restrictions, and although in other countries they have been decreasing, Chile is still facing the consequences of the pandemic. And last, but not least, is the drought that has been dragging on in Chile for more than a decade.
Clementines will be the most affected, for this season an export volume of 45,000 tons is expected, which represents a 35 percent decrease when compared to 2021, due to the drought in Chile.
The U.S. received 88 percent of all Chilean citrus exports in 2021, with 97 percent of clementines and mandarins shipped to the U.S.
In the case of mandarins that are later, the The Chilean Citrus Committee projects a season not very different from the previous one, and although it is not growing much in volume, there are new plantations, so it is estimated that it will reach 120,000 tons this year, 5 percent less than the previous season.
With lemons, it is a little early to provide precise estimates, however, a volume of 90,000 tons is currently projected, which is equivalent to 11 percent less than the previous season.
For oranges, an export volume of 90,000 tons is projected, which would represent 13 percent less when compared to 2021.
Hunts Point Produce Market, the largest wholesale produce facility of its kind in the US, is receiving $100 million for improvements from New York City. Some describe Hunts Point as the filthiest and most congested produce terminal market in the country. That should change for the 105-acre market with the funding initiative within New York Mayor Eric Adams’ Executive Budget.
The Hunts Point Terminal Produce Market sublets space to private distributors and vendors and transacts $2.3 billion in sales annually, accounting for 60 percent of fresh produce deliveries in New York City. Three thousand people work in the facility, which is part of the Hunts Point Food Distribution Center.
Alas, miles of trash cover the floors of the four warehouses, surrounded by seemingly endless lines of trucks. No one seems to know who is responsible for trash collection. “I have no idea why it’s always so dirty,” said Herman Brave, director of global procurement at Nathel & Nathel, which imports from 23 countries across six continents.
The mayor’s initiative comes after many failed attempts to revitalize Hunts Point’s aging infrastructure, which has remained the same since the 1960s. Joshua Gatcke, general manager for Nathel & Nathel, said that $100 million is not much to support all the necessary changes, but still, it’s a great start.
By Dave Comber, ALC Madison
Many of us like to enjoy a beer at a sporting event, while watching our favorite sports teams on TV, at picnics, or at any other gathering with family and friends. Most of us never think about the fact that beer is considered a perishable product. However, beer is a fragile product that needs care when being transported.
Beer is food. As with most foods, it deteriorates as a result of the action of bacteria, light, and air. To combat this, breweries, prior to bottling, make beer undergo some form of stabilization to extend its shelf life. The two primary forms of stabilization are sterile filtration, where the beer is passed through a microporous filter that will not let through any crunchy bits larger than 0.5 microns, and pasteurization, whereby the beer is heated briefly to kill any microbial wildlife.
The length of time it takes for a beer to become stale is determined by the alcohol strength and hopping level of the beer. Alcohol and hops help preserve beer – stronger beers with more hops keep longer. The freshness for a lager is about four months, five months for stronger craft brewed ales, and about six months to one year for high strength beers such as doppelbocks.
In most cases beer is at its best before it leaves the brewery. The further it travels from the brewery, the more difficult it becomes to maintain quality. Everyone involved in the production, distribution, and service of beer shares a responsibility for familiarizing themselves with, and maintaining product freshness. The sooner the beer can get from the brewery to the consumer, the better. Transportation providers play a large role in ensuring beer gets to the consumer expeditiously to ensure product quality.
When transporting beer, it is critical that carriers understand what it takes to cross state lines. Many states require permits to be able to legally haul beer in and out and through their state. All transportation providers need to ensure they have the proper permits to haul the product. Fines are possible, and delays getting the product to the store can occur if a truck is detained because they do not have the appropriate permits.
Since beer is a food product, the trailer needs to be inspected to ensure that it is clean and free of any odors. Some beer companies require that reefer trailers are used to haul their beer to slow down the oxidation process to keep it fresh longer. The temperature of beer hauled in reefers is generally around 40 to 45 degrees Fahrenheit. Keeping the beer at the proper temperature keeps beer fresh longer. Also, in the winter, if hauling beer in a dry van trailer, it is imperative that beer is not kept outside too long depending on the outside temperature. Beer will not freeze at 32 degrees Fahrenheit due to the alcohol and sugar in beer. However, if beer is being transported on a dry van in cold temperatures in winter months, it should be delivered straight through to the receiver, or early the next morning. If temps are extreme (15 degrees F. or less) beer loads should only be transported with a reefer trailer, with the reefer running between 40-45 degrees Fahrenheit.
The transportation industry plays a big role in ensuring that beer goes from the brewery to the consumer in a timely manner. When purchasing beer, remember to think about all that the transportation industry does to ensure the freshness of beer. Enjoy and respect beer, and always drink in moderation.
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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 University in Appleton, WI and earned a B.A. in Liberal Arts with a Major in History.
In 2021 U.S. import values for fresh produce commodities from Mexico exceeded double-digit gains for a long list of fruits and vegetables compared with 2020 data, according to USDA trade statistics.
The top U.S. import of fresh produce commodity from Mexico in 2021 was avocados, with trade valued at $2.78 billion, up 25% from 2021 and up 57% from 2016.
The second leading Mexican produce item imported by the U.S. in 2021 was fresh tomatoes, valued at $2.38 billion, unchanged from 2020 but up 22% from 2016.
U.S. imports of Mexican berries (excluding strawberries) totaled $2.17 billion in 2021, up 17% from 2020 and 123% higher than 2016.
U.S. imports of Mexican fresh peppers totaled $1.51 billion in 2021, up 16% from 2020 and up 41% from 2016.
The full list of 2021 U.S. imports of Mexican fresh produce, compared with 2020 and 2016 were:
- Avocados: $2.78 billion, up 25% from 2020 and up 57% from 2016;
- Tomatoes: $2.38 billion, no change from 2020 and up 22% from 2016;
- Berries (excluding strawberries): $2.17 billion, up 17% from 2020 and up 123% from 2016;
- Bell peppers: $1.51 billion, up 16% from 2020 and up 41% from 2016;
- Strawberries (fresh or frozen): $1.26 billion, up 27% from 2020 and up 84% from 2016;
- Citrus: $686 million, up 32% from 2020 and up 58% from 2016;
- Cucumbers: $640.3 million, up 7% from2020 and up 33% from 2016;
- Grapes: $568.5 million, up 10% from 2020 and up 43% from 2016;
- Mangoes: $424 million, up 12% from 2020 and up 30% from 2016;
- Lettuce: $410 million, up 14% from 2020 and up 88% from 2016;
- Asparagus: $407.2 million, up 6% from 2020 and up 16% from 2016;
- Onions: $382.7 million, up 11% from 2020 and up 12% from 2016;
- Melons: $366.8 million, up 8% from 2020 and up 5% from 2016;
- Squash: $351.3 million, down 23% from 2020 and up 1% from 2016;
- Cauliflower and broccoli: $349.5 million, no change from 2020 and up 51% from 2016;
- Bananas/plantain (frozen/fresh): $214.2 million, up 3% from 2020 and up 65% in 2016;
- Beans: $99.45 million, up 4% from 2020 and up 46% from 2016;
- Celery: $71.9 million, up 8% from 2020 and up 178% from 2016;
- Eggplant: $62.2 million, down 7% from 2020 and up 17% from 2016;
- Cabbage: $59.8 million, up 9% from 2020 and up 174% from 2016;
- Carrots: $51.4 million, up 25% from 2020 and up 28 from 2016;
- Pineapples: $41.5 million, up 16% from 2020 and up 18% from 2016;
- Fresh peas: $35.9 million, up 3% from 2020 and up 5% from 2016;
- Garlic: $30.8 million, up 28% from 2020 and up from 102% from 2016;
- Radishes: $24.7 million, up 13% from 2020 and up 36% from 2016; and
- Okra: $12.9 million, up 2% from 2020 and up 49% from 2016.
A recent report from RaboResearch found that despite being a mature market, U.S. strawberry consumption continues to grow, both in terms of household penetration and volume, and driving an increase in imports as well as planted crops in California.
The report was authored by Senior Analyst, Produce, David Magaña; Fresh Produce Analyst Almuhanad Melhim; and Senior Analyst, Farm inputs Samuel Taylor. It found that even though the U.S. market is considered mature, it still shows growth patterns uncanny for a mature market, and will continue to lead the “berry patch” in the near future.
Growth in demand is estimated at around 3% CAGR annually, the report found.
This growth has helped drive an increased level of imports, and also driven multi-year high acreage in the state of California. Together, these trends are expected to improve availability of the fruit for 2022, with prices remaining steady.
This is not to say there is no uncertainty facing the crop, with high input costs the biggest contributing factor in the short term.
This demand also has made the fruit the golden child, at least for fruits, of the Controlled Agricultural Environment (CEA) industry, with vertical strawberry farms being a growing source of interest.
Just recently, Bowery Farming launched a new “discovery” pack that features two vertically grown strawberry cultivars in side-by-side compartments, the first commercial offer of vertically grown fruit. Driscoll’s and Plenty have also committed to controlled, vertical production as well, expanding on an initial test agreement.
The California strawberry harvest is currently hitting its peak season, as California growers have increased the share of early season fruit.
Arlington, VA – FMI—the Food Industry Association recently released its 2022 Power of Produce report, revealing 25% of shoppers ranked price as the number one factor when making fresh produce purchasing decisions, followed by appearance (19%), health benefits (19%) and ripeness (15%). The report also offers insights on consumers’ produce shopping habits related to health and well-being and heightened preference for locally grown and convenience options.
“In the past, the clear number one factor when buying fresh produce was appearance and quality,” says Rick Stein, vice president of fresh foods for FMI. “However, this year’s survey showed that item price is now the number one factor produce consumers consider—on par with appearance and quality. In addition to price, consumers are focusing on items with prolonged shelf-life, buying less or finding substitutes. At the same time, we see more shoppers concentrate on health and well-being when making fresh produce purchasing decisions and a strong desire for convenience.”
Shoppers Link Produce to Health Benefits
For most shoppers (96%), picking from the produce aisle is considered an investment in personal health and well-being. Consumers increasingly associate fresh produce with digestive health, weight management and disease management. In fact, one-third of consumers who pay a lot of attention to health and nutrition tend to see fresh produce as playing a central role in their diet, and six-in-ten shoppers purchase fruits and vegetables to deliver on specific health benefits. This positive association has spurred higher demand for more information about nutrition, health benefits, recommended daily amounts, and other health-centric insights.
Consumers Crave Convenience
From pre-cut and pre-washed options to grab-and-go and ready-to-serve solutions, convenience remains the top value-add for produce shoppers. The report found that nearly half of shoppers frequently purchase convenient vegetable (45%) and fruit (48%) solutions. This popularity among consumers led to value-added fruits and vegetables making up 14.4% of total fresh product sales in 2021. The share of shoppers expecting to purchase more value-added produce remains high at 27%, while only 5% anticipate they will purchase less.
Locally Grown Outperforms All Other Attributes
Fifty-six percent of consumers say they want their produce department to carry more fruits and vegetables that are locally grown, followed by grown in the USA (54%). Such distinctions are most effective when paired with specific locally sourced definitions, like a certain mile radius or state lines. However, the definition of the term differs depending on the area of the country in which the shopper lives and the generation to which they belong.
The 2022 Power of Produce was conducted by 210 Analytics and made possible by the Southeast Produce Council (SEPC), Invafresh and Yerecic Label. The report was presented at SEPC’s 2022 Southern Exposure conference.
About FMI
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org
About SEPC
The Southeast Produce Council (SEPC) is a member-driven, non-profit association of more than 3,000 leaders from all facets of the produce industry. It was formed more than 20 years ago to promote the value of fresh fruits and vegetables in Florida, Georgia, Alabama, Mississippi, Louisiana, Tennessee, North Carolina, South Carolina, Kentucky, and Virginia through networking, innovation, community, and education. Today, SEPC is a thriving organization that continues to share and pursue its vision, mission, values, and goals. Learn more by visiting www.seproducecouncil.com.
Helping the North American refrigerated trucking industry reap the benefits of telematics to improve operational efficiencies, expand cold chain compliance and add value for its customers, Carrier Transicold is now making telematics a standard feature on its most popular trailer refrigeration units. 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.
“Each year since its introduction, our telematics solution has been helping a rapidly increasing number of refrigerated fleets manage and monitor mission-critical data from their trailer assets,” said David Brondum, Director of Telematics, Carrier Transicold. “By offering telematics as standard for our X4™ series and Vector™ 8000 series trailer and rail refrigeration units, it is easier than ever for customers in the United States and Canada to benefit from the considerable advantages provided by the industry’s premier IoT solution.”
The innovative web-based interface of the telematics solution provides continuous visibility of cold chain assets via a centralized data stream that shows trailer temperatures, location and movement. The platform can also enable remote control of refrigeration unit settings.
Connected fleets can improve operations by optimizing refrigeration equipment usage, achieving greater efficiency and helping to manage refrigeration unit maintenance. Depending on configuration and service plan, customer benefits include:
• Trailer temperature monitoring and control for compliance and accountability.
• Automatic notifications as trailers arrive and depart from geofenced areas.
• Real-time alerts if a warning condition occurs on a unit in service.
• Refrigeration unit performance monitoring for fuel efficiency and product protection.
• Labor-saving wireless data transfer for remote setpoint management, pre-trip diagnostic routines, hands-free trailer precooling and more.
• Fuel level monitoring, helping to avoid low-fuel incidents requiring emergency callout service.
• Door switch monitoring to track deliveries and identify potential theft situations.
• Improved refrigeration unit uptime made possible by continuous analytic and diagnostic information about refrigeration units.
“The system’s unit analytics provide a unique advantage for Carrier customers,” Brondum said. “No other telematics solution provides as much insight about Carrier Transicold units, because it was developed and qualified specifically for Carrier Transicold equipment.”
For fleets to take advantage of their built-in telematics systems, commissioning by an authorized Carrier Transicold dealer is required along with selection of a data plan.
Three plans are available: 1) Monitor, 2) Two-way Monitor and Control and 3) Monitor and Enhanced Control, adding exclusive capabilities for data downloads, remote software updates and adjustments to Carrier Transicold IntelliSet™ control configurations.
Standard hardware includes the 4G LTE communications module, antenna and wiring harness. Optional peripheral components such as fuel sensors, temperature probes, door switches and solar panels can be specified as needed. Customers who take advantage of Carrier Transicold’s telematics system will benefit from value-added data insights that come from future releases of the company’s Lynx Fleet™ application.
By Harry Balam, ALC Los Angeles
One of the biggest problems the transportation industry is faced with is a truck driver shortage. I have been in this industry for 16 years and this is, by far, the worst I’ve seen it. However, one can argue that this isn’t a new problem. In fact, analysts and industry groups have warned of truck driver shortages for years.
Those of us in the industry have been aware of this problem for a while and have struggled to find drivers to cover loads. But the truck driver shortage has hit the average American much closer to home in the last few years. Empty store shelves caused by pandemic supply chain disruptions are just bringing this ever-growing problem to light and gaining the attention of the American people and lawmakers. No toilet paper = unhappy Americans.
According to the American Trucking Association, the truck driver shortage is currently at 80,000 and could climb to 160,000 by 2030.
It has been argued that the truck driver shortage isn’t exactly a shortage. “It’s a recruitment and retention problem,” said Michael Belzer, a trucking industry expert at Wayne State University.
In the U.S., “there are in fact, millions of truck drivers – people who have commercial driver’s licenses – who are not driving trucks and are not using those commercial driving licenses, more than we would even need,” Belzer said. He argues that it is because people have been initially recruited to the job and maybe even trained and then realize that the job is not for them.
So then, the problem lies in not just how to keep current drivers actively driving, but also, how to recruit new drivers.
One idea is to help pave the way for drivers under 21 years old to enter interstate trucking. I know…sounds scary, right? I’m currently trying to wrap my head around trying to teach my teenage son how to drive. The thought of teen drivers on the interstate pulling an 80,000 pound machine is more than a little alarming. But, the more I read about it, the more I feel like it could be an avenue worth pursuing.
President Biden signed a $1.2 trillion bipartisan infrastructure package into law last November. There is a lot included in that hefty price tag, one of which is the bipartisan DRIVE-Safe Act. The DRIVE-Safe Act focuses on one of the biggest obstacles to recruiting younger drivers, the requirement that they are at least 21 years old to drive in interstate commerce. One can obtain a commercial driver’s license at 18 but federal law has prevented them from crossing state lines.
“The DRIVE-Safe Act addresses our industry’s largest challenge by creating an apprenticeship program that will help train the next generation of safe, skilled drivers,” said Dan Van Alstine, who serves on the board of the ATA. The Act recognizes the fact that teen drivers have higher rates of auto accidents so it included added safety and training standards for newly qualified and current drivers. The new drivers must complete at least 400 hours of on-duty time and 240 hours of driving time in the cab with an experienced driver.
Also, every driver will be required to train on trucks equipped with new safety technology including active braking collision mitigation systems, video event capture, and a speed governor of 65 miles per hour or less and automated manual transmissions.
Also aimed at helping the retention and recruitment problem and is a new proposal to create a new refundable tax credit for truckers. On April 1, Reps. Mike Gallagher (R-WI) and Abigail Spanberger (D-VA) introduced a bipartisan bill that would create a tax credit just for truck drivers as a way to attract and retain more drivers in the industry. The Strengthening Supply Chains Through Truck Driver Incentives Act would create a new refundable tax credit of up to $7,500 for truck drivers holding a valid Class A CDL who drive at least 1,900 hours in the year. This tax credit would last for two years (2022 and 2023). It would also create a new refundable tax credit of up to $10,000 for new truck drivers or individuals enrolled in a registered trucking apprenticeship.
It is too early to know the future of this very newly proposed bill, but one thing is for certain – something needs to change. Just because things have been done a certain way for decades doesn’t mean we should keep doing it that way. Change brings opportunity. Like John F. Kennedy said, “Change is the law of life. And those who look only to the past or present are certain to miss the future.”
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Harry Balam attended Los Angeles Mission College and began working as a transportation broker in the dry division for ALC in 2006. After two years he moved to the refrigerated division. He currently works as an operations supervisor in the ALC Los Angeles office.