Archive For The “News” Category

Chiquita Banana to Ship Bananas Via Florida’s Port Manatee

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As Port Manatee’s newest non-aggregate customer, Chiquita will begin cargo delivery of their bananas to Port Manatee on a bi-weekly schedule. Previously, Chiquita Bananas arrived at local grocers by truck delivery after cargo delivery to Port Everglades.

During a Port Authority meeting recently, Port Manatee Executive Director Carlos Buqueras announced a new customer to Port Manatee – Chiquita.

After thanking the port authority and port staff for their support and efforts, Buqueras called the accomplishment a “big deal” citing the arrangement with a world-renowned customer, Chiquita Banana.

“These bananas can be delivered directly to your local supermarkets instead of being trucked for hours from other parts of Florida,” Buqueras explained.

The direct import to Port Manatee will not only spare the bananas a several-hour commute by truck for distribution to Manatee supermarkets but the import is also expected to cut back on pollution and fuel consumption previously expended for their highway delivery to the region. 

The newly announced arrangement with Chiquita Banana comes after the October 2021 announcement that Port Manatee had reached an extended lease agreement with decades-long customer, Florida-based Del Monte unit in Coral Gables, through at least 2026.

Port Manatee reported a 53.3 percent year-over-year increase in the number of 20-foot-equivalent container units crossing its docks, reaching 135,660 twenty-foot equivalents (TEUs) in the fiscal year ending Sept. 30, 2021.

Chiquita is already chartering space on Del Monte vessels that are arriving at the port, and Chiquita Banana containers have already begun to move across the docks at Port Manatee. 

Port Manatee is a county-owned deepwater seaport located in the eastern Gulf of Mexico at the entrance to Tampa Bay in northern Manatee County, Florida. It is one of Florida’s largest deepwater seaports and also regarded as the closest U.S. deepwater seaport to the Panama Canal. The port handles a variety of bulk, breakbulk, containerized, and heavy-lift project cargoes.

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Report: Inflation Causing Shoppers to Buy Less as Produce Prices Rise

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Consumers are more concerned about inflation than COVID-19 these days, according to the monthly primary shopper survey series by IRI in partnership with Anne-Marie Roerink, president of 210 Analytics.

“In January, 38% of the population were extremely concerned over COVID-19, which was down sharply from 66% in April 2020,” Jonna Parker, team lead for IRI Fresh, said in a news release. “Shoppers are very aware of food inflation (89%) and the vast majority (95%) worry about it.

“In total, 42% of shoppers are extremely concerned about the price increases they are seeing across the store — which means food inflation has more people on high alert than COVID-19 as of January 2022,” Parker said.

Like the inflated prices of products overall, fresh produce prices are also higher than last year.

The combined effect of concerns over COVID-19, inflation and supply chain challenges explains why shopper demand remains in flux as we enter the third pandemic year, Roerink said. In 2022, IRI, 210 Analytics and the International Fresh Produce Association continue to team up to document the dynamic marketplace’s impact on fresh produce sales.

The January survey showed several in-depth findings about fresh produce sales, volume, prices and shopper behavior.

In January 2022, the price per pound for total fresh produce increased by 9.0% over January 2021. The latest 52-week look is milder, at 7.1% increase, given the much milder inflation in the second quarter of 2021. Vegetable inflation is far below average, but fruit prices increased by nearly 14%.

“Consumers are aware and concerned about the inflation they are seeing,” Joe Watson, vice president of retail, foodservice and wholesale for the IFPA, said in the release. “And as a volume-driven business, the industry is concerned, as well, and doing everything in its power to get adequate supply to the stores and keeping prices down.”

The consumer price index increased 7.5% for the 12 months ending January 2022, the highest increase in 40 years, according to the Bureau of Labor Statistics.

IRI-measured price per unit for all food and beverages in multioutlet stores, including supermarkets, club, mass, supercenter, drug, military and other retail food stores, also shows that prices continued to rise over and above their elevated 2020 and 2021 levels.

Perishables, including produce, seafood, meat, bakery and deli, had the highest year-over-year sales growth in 2021, at +6.2% out of all food and beverages. However, fresh produce sales gains were below average, at +4.4%. Frozen foods had the highest increase versus 2020, at +26.0%.

From a dollar sales perspective, January 2022 was another great month for fresh produce, surpassing the records set in 2020 and 2021.

However, dollar gains were inflation-boosted while units and volume sales declined year on year.

“The risk in the current levels of inflation is volume pressure,” Watson said in the release. “At the same time, it is hard to measure the effect of supply chain disruption, several winter storms affecting the Northeast and the impact of frozen and canned purchases on fresh produce sales. In all, January 2022 sales still tracked ahead of January 2020, which was not yet affected by the pandemic purchase patterns.” 

Each of the five January weeks generated $1.3 billion or more for the fresh produce department, with the week ending January 16 being the biggest, at $1.43 billion. While year-on-year dollar sales were higher each week, volume sales were down. Year-on-year decreases varied from -1.7% the week ending January 16th to -6.2% the first week of the year.

“Our monthly shopper surveys are finding that consumers are hyperaware of inflation and are trying to mitigate the increases as much as possible,” Parker said in the release. “And that is exactly what we are seeing in recent trip baskets. On average, people are spending roughly the same amount of money per trip, but they have many fewer items in their baskets.

Saving by buying less is typically one of the later money-saving measures during periods of high inflation, but with the lack of promotions and already cooking a lot more at home, consumers are drawing on the lessons they learned and fine-turned during the Great Recession,” she said. “For many, that means buying less quantity and we are seeing that very clearly in fresh produce.”

January 2022 gains were down from the fourth quarter growth numbers across the board. Year on year, vegetables dropped into the negative.

Despite above-average inflation for fresh produce, its share of dollars remained below average in January 2022. Shelf-stable fruits had a very strong January, with year-on-year sales gains of 7.5%. Both frozen and shelf-stable are heavily impacted by supply chain disruptions and assortment, and inventory levels have been down significantly over recent months.

January Fresh Fruit Sales

“On the fruit side, all top 10 sellers gained versus a year ago with the exception of bananas,” Parker said in the release.

In a change from 2021’s reporting methods, this year’s reports will show the increase in dollars and the increase in volume versus a year ago.

“The difference between the two percentages is a close match for inflation on a per-pound basis, though lower promotional levels also play into higher dollar gains,” she said.

For instance, while January 2022 avocado dollar sales were up 13.3%, pound sales were down 12.4%, which would translate into inflation of about 26% on a per-pound basis, Parker said. In looking at the actual numbers, the average price per pound for avocados in January 2022 was up 29.4% versus a year ago, while promotional levels were down by 15.4%.

“This new reporting will help provide a better look at the effects of inflation, plus less promoting, on the dollar performance,” she said.

January Fresh Vegetables Sales

“The top 10 sellers on the vegetable side had a mixed performance in terms of dollar sales growth but has been very consistent in makeup,” Watson said in the release. “Tomatoes, potatoes and packaged salads have been the top three sellers for many months running. The importance of salads is further underscored by lettuce sales, in fourth place.”

Carrots had the strongest volume growth performance, pulling even with year-ago levels.  

What’s next?

The marketplace disruption caused by inflation, supply chain challenges and COVID-19 is not showing signs of letting up any time soon, the report shows.

Shoppers are reacting several ways:

  • At 82.4%, the at-home share of all meals reached its highest level in a year, which favors spending at food retail;
  • At the same time, the inflationary levels in retail have two-thirds of shoppers looking for one or more money-saving measures. Inflation will likely continue to drive dollar gains for most categories in the foreseeable future but is pressuring unit and volume sales;
  • For the first time since the onset of the pandemic, a greater share of shoppers (29%) feel their financial situation a year from now will be worse versus better (23%). About half, 48%, think it will be unchanged. This outlook may prompt a greater focus on money-saving measures beyond the current marketplace behaviors alone; and
  • Continued rising inflation and shortages are driving stock-up behaviors among 42% of shoppers. While 58% do not buy more than they need, 14% stocked up on one or more items out of concerns for continued price increases and 19% stocked up out of fear that the item will be out of stock next time. 

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Port of Savannah to Grow Capacity by 60%

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Griff Lynch, Georgia Ports Authority’s (GPA) executive director has unveiled plans to expand the port’s container capacity by 60 percent. The enhancements will bring the Port of Savannah’s annual capacity from 6 million twenty-foot equivalent container units to 9.5 million TEUs by 2025.

“Our expansion is being matched by incredible growth in both warehouse space and workforce,” Lynch said. “The public and private investment that we’re seeing, as well as the number of people being drawn to the business, make Savannah the hottest market in the country for transportation and logistics.”

Projects now under way will add 1.7 million TEUs of annual capacity in four months. GPA’s Peak Capacity project has already added 400,000 TEUs in container handling space to the Garden City Terminal and will make room for another 820,000 TEUs by June. In the same month, a new container yard just upriver will add another 500,000 TEUs of capacity. Separately, the Garden City Terminal West project will add up to 1 million TEUs in phases by 2024.

“GPA’s role facilitating commerce – even in difficult times – is key to Georgia’s long-term economic success, and I am proud of the can-do spirit that sets our ports apart from the rest of the nation,” said Georgia Gov. Brian Kemp. “The Ports of Savannah and Brunswick together play a major role in positioning Georgia as the go-to state for economic development, and I am thankful for all the hardworking men and women who have hunkered down to move Georgia forward over the past year.”

During Lynch’s presentation, he showed how Savannah has become a national leader in supply chain solutions and effectively eliminated its backlog, while accommodating 18 consecutive months of growth. In Calendar Year 2021 alone, the GPA moved a record 5.6 million TEUs, for an unprecedented expansion of nearly a million TEUs, or 20 percent, compared to 2020.

In his comments before a capacity crowd, Lynch addressed a series of key logistics solutions, including the role six pop-up container yards – which add 500,000 TEUs of annual container space – are playing as a supply chain relief valve. He also spoke to the nation’s trucker shortage, and how Savannah has reversed that trend by registering 80 new drivers a week to serve Garden City Terminal, or a total of 1,200 new drivers and 370 new trucking companies just since November. Lynch also detailed GPA’s workforce development effort, the YES+ program. Now, in addition to hiring new high school graduates to work in maintenance and container operations, GPA has broadened the program to include career opportunities for young workers in other departments.

“Higher demand for our services is the reason we have expedited major expansions at the Port of Savannah,” said GPA Board Chairman Joel Wooten. “Georgia’s growing manufacturing, distribution and retail sectors will mean additional cargo through the Port of Savannah, driving the need for increased container handling capacity.”

The Savannah market added 6.5 million square feet of industrial space in 2021, for a total of 84 million, according to Colliers International. Savannah led the nation in terms of net absorption of overall inventory, so the vacancy rate remains at 2.3 percent. Another 17 million square feet are now under construction, lifting the market beyond 100 million square feet to better accommodate heightened cargo volumes.

Lynch thanked the 1,200 guests for coming to the first live State of the Port since 2019, and congratulated them on persevering through the previous, challenging year. The unprecedented level of trade crossing GPA’s docks is expected to continue well into 2022, Lynch said.

To ensure Savannah’s ability to handle these volumes, GPA is super-sizing its Berth 1, increasing on-dock capacity by 25 percent. In the spring of 2023, the expanded berth will allow Savannah to simultaneously serve four 16,000-TEU vessels as well as three additional ships. The renovations will add an estimated 1.5 million TEUs per year of berth capacity.

Another game changer for the GPA is the Savannah Harbor Expansion Project, which will come online in March. The deeper river channel will allow 16,000+ TEU vessels to take on heavier loads and transit the river with greater scheduling flexibility.

“This project has been more than 20 years in the making,” Lynch said. “Through it all, there has been strong support across several administrations, from the General Assembly and our congressional delegation. A special debt of gratitude goes to the late Senator Johnny Isakson, who shepherded our harbor deepening efforts through the federal process.”

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Peru Becomes World’s 3rd Largest Exporter of Ginger

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Peru is now the world’s third largest exporter of ginger, according to the Center for Research on Global Economy and Business of the Association of Exporters (Cian-Adex).

In 2020 China was the world’s leading exporter of ginger with $718.5 million, accounting for 52.9 percent of the total. China was followed by the Netherlands with $155.6 million and Peru with $105.6 million, as reported by Andina.

Peru mainly exports fresh ginger (91.9 percent) followed by dehydrated ginger (3.8 percent), juice (3.6 percent), and powdered ginger (.7 percent). Exports of puree, candied ginger, and infusions jointly represented .03 percent.

In 2020, organic exports grew 206.4 percent and conventional 102.5 percent. From January to November 2021, shipments of Peruvian ginger totaled $81.2 million, 13.4 percent lower when compared to the same time period in 2020.

The ginger produced in Peru reached 42 nations, led by the U.S. with $39.1 million, representing 48 percent.

The U.S. was the world’s leading importer of ginger with $173.4 million (12.2 percent of the total), followed by the Netherlands with $150.2 million (10.5 percent), and Japan with $106.8 million (7.5 percent).

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Double-Digit Inflation for Produce Shows No Signs of Slowing Down

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Fresh produce prices are up, and the majority of consumers are concerned about the rising cost of their food and beverage bill, including fruits and vegetables.

That’s according to the March 2022 fresh produce report titled “Inflation Remained the Big Story for Fresh Produce in February 2022,” from IRI and 210 Analytics.

The report, covering the four weeks ending Feb. 27, shows that, while dollar sales are “looking good,” the “volume pressure is real,” 210 Analytics President Anne-Marie Roerink told The Packer in an email. “Combined fruit/vegetable inflation is now trending in the double digits with no signs of slowing down any time soon.”

Measuring multi-outlet stores in the U.S., including supermarkets, club, mass, supercenter, drug, military and other retail food stores in February, market research company IRI found continued grocery price inflation over and above the elevated 2020 and 2021 levels. In February 2022, the average price per unit across all foods and beverages was up 10.3% versus the same weeks in 2021, and up 16.8% versus February 2020.

“In our February IRI shopper survey, we found that 90% of shoppers have noticed the price increases across the various grocery departments and a whopping 96% of those consumers are concerned about it,” Jonna Parker, team lead for IRI, said in the report. “In response, 75% of consumers have already made one or more changes to their grocery shopping, up considerably from 64% in January 2022.”

Fresh produce prices are elevated over last year and at a slightly higher rate than total food and beverages, reported Roerink, noting that in February 2022, the price per pound for total fresh produce increased by 10.9% over February 2021. “The latest 52-week look was lower, at 7.6%, given the much milder inflation in the second quarter of 2021,” she reported.

While fruit inflation reached its highest level yet (up 16.1%) in February, fresh vegetable inflation was far below average (up 6.2%), according to IRI data.

“Fresh produce inflation reached double digits and consumers’ concern over these kinds of price increases is shared by the industry,” said Joe Watson, vice president of retail, foodservice and wholesale for the International Fresh Produce Association. “Consumers are focused on finding good prices and promotions and minimizing waste at home, which puts great emphasis on freshness and shelf life in the store. At the same time, consumers balance their spending across canned, frozen and fresh purchases, and many simply buy less to stick to their budgets. Many of the measures pressure volume sales.”

Fresh produce sales reached $5.6 billion in February 2022, and while this figure surpasses the record set in 2021, dollar gains were inflation-boosted and units and volume sales declined year on year, reported Roerink.

“We certainly have to acknowledge that big price increases tend to pressure volume sales,” said Watson. “But it is also important to note that it is hard to measure the effect of supply chain disruption: we cannot sell what we do not have. Out-of-stocks have been a severe problem for departments across the store since the start of the pandemic and fresh produce has also been affected by the labor, transportation and other supply chain issues. Actively communicating and providing recommendations for alternatives are important best practices in case of out-of-stocks.” 

A deeper dive into dollar versus volume sales shows that fresh produce pound sales trailed behind year-ago levels all throughout 2021, according to the report. “In January 2022, pound growth dropped to its lowest level since the second quarter of 2021, and the performance worsened in February,” noted Roerink. “While dollars increased by 4.6%, volume dropped by 5.7%, creating a 10.3 percentage point gap between volume and dollars due to inflation, as well as lower levels of promoting.”

A look at the top 10 fresh produce items in terms of dollar gains further reveals rising inflationary pressure.

“The top 10 in absolute dollar gains showed that smaller sellers, limes and mixed fruit, can still be big contributors to department growth,” said Parker. “But more than anything, it shows the impact of inflation. With the exception of mixed fruit and salad kits, all top 10 growth areas had double-digit inflation, led by much higher prices year over year for limes and avocados.

“Meanwhile, salad kits continue to be strong sellers, and I think at-home lunch is an important part of that,” Parker continued. “We still have a lot more people working from home today than we did pre-pandemic and our February survey showed that salads are among the top five things people make for lunch when at home.”


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Keeping It Fresh: The Importance of Avocado Imports

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By Brandon Demack, ALC McAllen

On the Saturday before Super Bowl Sunday, avocado imports from Mexico into America were put to a complete halt after threatening messages were sent to a United States plant safety inspector’s official phone.

The avocado industry is another victim of the turf battle between the cartels in the western parts of Michoacán and will put a strain on avocado imports into the United States for the foreseeable future. The U.S. health inspector was carrying out inspections in Michoacán when the threat was received, but luckily for consumers, it was the day before the Super Bowl so all shipments of avocados for Super Bowl parties and restaurants were already shipped and weren’t affected.

Avocados are considered “green gold” in Mexico, as it is a multibillion-dollar business and the industry even broke records in 2020 to become the world’s largest producer of “green gold.” Unfortunately, however, as the growth continues to rise, so does the threats from the nine identified cartels operating in the area.

In response to the issues going on with cartels, farmers have been starting to arm themselves and establish self-defense groups to combat this to the reluctance of Mexican President Andrés Manuel López Obrador. This violence and issues in Michoacán will hopefully subside sooner than later.

The U.S. responded to the threatening messages by putting more security measures in place for inspectors. On February 18, 2022, it was announced that the inspection of avocados in Michoacán would resume. The rapid response to the threat shows the importance of a working supply chain between Mexico and the U.S.

It would have been hard to fill the large gap left by the lack of avocados coming from Mexico. Mexico provides around 80% of avocados consumed in the U.S. and a longer ban would have drastically impacted the supply of avocados in the U.S. With the resumption of imports, consumers do not have to worry about a shortage or price hikes and can continue to enjoy avocados.

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Brandon Demack has been with the Allen Lund Company since July 2011. He first started in the Dallas office and in March of 2019 he transferred to the McAllen office becoming the operations manager of produce. Demack attended the University of North Texas with a Bachelor of Science in Logistics and Supply Chain Management.

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Chilean Fruit Export Volume Increases in 2021

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Chilean fresh fruit export volume totaled 2.62 million tons, equivalent to $5.05 billion FOB, during the calendar year 2021, according to
The Chilean office of Agricultural Studies and Policies (Odepa) and reported by Portal Portuario.

Exports registered an increase in volume of 2 percent while its value dropped by 1.9 percent compared to the same period the previous year.

The main commodity exported were cherries, registering a volume of 336,000 tons equivalent to $1.589 billion FOB, reflecting an increase of 49 percent in volume and 1 percent in value compared to the same period the previous year. The main destination was China with 89 percent of the total value of cherry shipments.

Tables grapes are next in line, registering 525,000 tons equivalent to $927 million FOB, registering a decrease of 13 percent in volume and a drop of 10 percent in value compared to the same time period the previous year. The main destinations were the U.S. with 47 percent and China with 15 percent.

Apples came in third, with 643,700 tons equivalent to $617.2 million FOB registering a decrease of 2.5 percent in volume and 5 percent in value when compared to the same time period the previous year. The main buyers were Colombia with 12 percent, the U.S. 11 percent, the Netherlands 8.3 percent, and India 7.8 percent.

Blueberries came in fourth with sales of 113,000 tons equivalent to $573 million FOB. They mainly shipped to the U.S. with 48 percent, the Netherlands 19 percent, and the UKL 9 percent.

These four commodities along with kiwifruit and avocados account for 83 percent of the total value of fresh fruit exported during the analyzed period.

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Imported Peruvian Produce, Grain Soar by 58% in 5 Years

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In the past five years, imports of Peruvian ag products have soared from seventh place in the ranking in 2017, to third place in 2021, a position that it retains for the third consecutive year.

At the same time, the demand for food in the U.S. has shown a steady rise. This was reflected in the increase in imports, going from $53.2 billion in 2017 to $63.5 billion in 2021, reflecting a growth of 19 percent.

During this period, one of the most favored countries with the highest U.S. demand was Peru. Purchases of fruits, vegetables, and grains went from $2.04 billion in 2017 to an estimated $3.23 billion in 2021, reflecting a growth of 58 percent, as reported by Agraria.

In 2021, grape imports in the U.S. totaled 680,162 tons for $2.073 billion, 2 percent more in volume and 10 percent more in value compared to the previous year. The main suppliers were Chile with a 38 percent share (3 percent less than the previous year), Peru with 32 percent (4 percent more), and Mexico with 27 percent (3 percent less).

Blueberry imports in the U.S. in 2021 reached 310,097 tons for $1.904 billion, 14 percent more in volume and 22 percent more in value compared to the previous year. The largest suppliers were Peru with 34 percent (3 percent more than the previous year), Canada with 26 percent (2 percent less), and Mexico with 21 percent (3 percent more).

Asparagus imports to the North American market totaled 294,364 tons for $751 million, 11 percent more in volume and 4 percent more in value compared to the previous year. The main suppliers in the U.S. were Mexico with 67 percent (3 percent more than the previous year), and Peru 32 percent (3 percent less).

In 2021, avocado imports in the U.S. totaled 1.19 million tons for $3.003 billion, 7 percent more in volume and 18 percent more in value compared to the previous year. The main suppliers were Mexico with 89 percent (1 percent less than the previous year), Peru with 7 percent (similar to the previous year), and the Dominican Republic with 3 percent (similar to the previous year).

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U.S. Imports of Organic Produce Surges

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U.S. organic fresh produce imports are surging, according to USDA import statistics.

Mexico is a leading source of imported organic produce, according to the USDA, and top organic produce imports tracked by the agency include avocados, blueberries, greenhouse peppers, bananas and mangoes. 

Value of U.S. imports of Mexican produce, for the December 2020 through November 2021 period, were:

  • Avocados: $171.4 million, up 44% from 2020 and 2019;
  • Blueberries: $138.7 million, up 40% from 2020 and up 133% from 2019;
  • Greenhouse peppers: $85.2 million, up 18% from 2020 and up 31% from 2019;
  • Bananas: $84.4 million, up 5% from 2020 and up 44% from 2019;
  • Mangoes (September through May): $22.8 million, up 51% from 2020 and up 96% from 2019;
  • Mangoes (June through August): $22.8 million, up 60% from 2020 and up 180% from 2019;
  • Squash: $20.2 million, down 17% from 2020 and up 3% from 2019;
  • Bell peppers (field): $18.5 million, up 64% from 2020 and up 186% from 2019;
  • Raspberries: $15.9 million, no comparison available;
  • Strawberries: $9.78 million, no comparison available; and 
  • Blackberries: $8.55 million, no comparison available.

U.S. imports of Peruvian organic produce are increasing fast, according to USDA statistics

Value of U.S. imports of Peruvian produce for the December 2020 through November 2021 period, were:

  • Blueberries: $134.1 million, up 125% from 2020 and up 185% from 2019;
  • Bananas: $40.8 million, up 4% from 2020 and down 4% from 2019;
  • Ginger: $29.02 million, up 27% from 2020 and up 131%;
  • Avocados: $15.9 million, down 4% from 2020 and down 7% from 2019; and
  • Mangoes (September through May): $6.2 million, up 3% from 2020 and up 20% from 2019;

Ecuador is a leading supplier of organic bananas to the U.S. market.
Value of U.S. imports of Ecuador produce, for the December 2020 through November 2021 period, were:

  • Bananas: $122.7 million, up 4% from 2020 and down 4% from 2019; and
  • Mangoes: $2.5 million, down 15% from 2020 and down 30% from 2019.

Chile is a significant supplier of organic blueberries and apples to the U.S. 

Value of U.S. imports of Chilean produce for the December 2020 through November 2021 period were:

  • Blueberries: $84.8 million, up 26% from 2020 and up 44% from 2019; and 
  • Apples: $21.1 million, up 4% from 2020 and down 36% from 2019.

Imports of organic bananas to the U.S. from Colombia totaled $76.7 million in 2021, up 24% from 2020 and up 28% from 2019.

U.S. imports of organic pears from Argentina totaled $9.2 million in 2021, up 19% from 2020 and down 2% from 2019. U.S. imports of organic lemons from Argentina totaled $1 million in 2020, up 374% from 2020 and up 281% from 2019.

New Zealand organic apple shipments to the U.S. totaled $22.7 million in 2021, up 14% from 2020 and down 9% compared with 2019.

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C.H. Robinson Enters into Autonomous Driving Tech Partnership

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Global logistics company C.H. Robinson of Eden Prairie, MN and Waymo Via of Mountain View, CA, the trucking and local delivery unit of autonomous driving technology company Waymo, have formed a long-term strategic partnership to mutually explore the practical application of autonomous driving technology in logistics and supply chains.

The partnership combines the benefits of Waymo’s innovative autonomous driving technology, the Waymo Driver, with C.H. Robinson’s Navisphere technology, which is the world’s most-connected logistics platform.

The collaboration will focus, initially, on running multiple pilots in the Dallas-Houston transportation lane, with Waymo Via autonomous trucks hauling C.H. Robinson’s customer freight. During and after the pilots, the companies will collaborate to shape the future development and expansion of autonomous driving technology as an additional transportation solution. This will provide much-needed capacity, help improve the carrier and driver experience and address the business challenges posed by long-term driver shortages.

“We are excited to partner with Waymo Via to explore how autonomous driving technology can help bring increased capacity and sustainability into our logistics strategies. Together, we are going to harness this emerging freight technology and its potential on behalf of customers and carriers,” said Chris O’Brien, Chief Commercial Officer at C.H. Robinson. “We believe there is a real opportunity to bring our scale and information advantage to bear to help develop transportation solutions for them and their ability to participate in and benefit from AV. C.H. Robinson is also best positioned to represent the role of drivers and small and mid-size carriers in a more autonomous future.”

“We look forward to this collaboration with C.H. Robinson, both for their deep roots and experience in logistics and transportation, but also as a company that shares our vision of how technology and autonomous trucking can change our industry for the better,” said Charlie Jatt, Head of Commercialization for Trucking at Waymo. “C.H. Robinson’s size, scale and platform gives us access to rich and unique transportation data along with customer relationships and pilot opportunities to help bring our Waymo Via solution to the market.”

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