Archive For The “News” Category
California is a big force in the U.S. onion market.
According to a report from University of California, Davis, California is the largest onion producer (including fresh and processed) in the U.S. and is the only state to produce both spring and summer-harvested onions.
In 2015, the report said California produced 31% of the nation’s total onion crop.
About 16% of California onions are spring harvested, and the state produces 42% of the nation’s spring harvested onion crop.
About half of California onions are grown for the fresh market, and about half for processing, according to the report.
The proportion of spring, summer, fresh and processing onions tends to be stable, according to the report.
Onions are grown throughout California.
In a recent census, the counties with the top onion acreage were Fresno, Imperial, Kern, Siskiyou, and San Joaquin, with over a third of the state’s acreage located in Fresno County, according to the report.
The high desert region of Antelope Valley in Los Angeles County and the Salinas Valley also include some fresh market onion acreage, the report said.
In 2020, truck onion shipments from California’s Central Valley totaled 339.9 million pounds, up 2% from 33 million pounds in 2019 and up 12% from 304.8 million pounds in 2015. Shipments were recorded in every month in 2020 from California’s Central Valley, with peak shipments in June, July and August.
In 2019, shipments of California’s Central Valley onion truck shipments accounted for 7.5% of total U.S. onion truck volume. That was up slightly from 7.4% in 2019 and down slightly from 7.7% of total U.S. onion truck shipments in 2015.
Truck onion shipments from California’s Imperial Valley totaled 144.9 million pounds in 2020, up 5% from 138 million pounds in 2019 and up 22% from 119.1 million pounds in 2015. May was the peak onion shipment month for California’s Imperial Valley, with shipments starting in May and ending in June.
In the season-to-date truck shipment report through May 15 this year, the U.S. Department of Agriculture reported 66.8 million pounds shipped, down slightly from 68.1 million pounds the same time a year ago.
Imperial Valley onion shipments accounted for 3.2% of total U.S. onion truck shipments, up from 2.9% in 2019 and 3% in 2015.
Southern California’s onion truck shipments in 2020 totaled 16.1 million pounds, down 43% compared with 27.9 million pounds in 2019 and down 85% from 110.5 million pounds in 2015.
Truck shipments from the region were active from January through May, with peak shipments in January. Southern California onion truck shipments accounted for 0.3% of total U.S. onion truck shipments, down from 0.6% in 2019 and lower than 2.8% in 2015, according to the USDA.
Hemp is getting a lot of attention from growers in Florida.
The Sunshine state started issuing licenses for growing hemp in April 2020, and by February 2021 there were 35,000 acres registered, with $270 million in income projected for the coming year, according to WCJB News in Gainesville.
Within the next few years, hemp farming in Florida is projected to grow to about half the size of the state’s citrus industry,” writes Regan McCarthy on the website of Miami’s WFSU Public Media, part of Florida State University. “Much of that growth is driven by CBD production.”
McCarthy quotes Florida agricultural commissioner Nikki Fried, who said, “At this moment Florida has 22,078 licensed acres of hemp cultivation after just seven months.
This acreage is very similar to three of Florida’s key crops—tomatoes, watermelon, and snap peas—and is double of what the state has in production for strawberries. (Note that acreage rose from 22,078 to 35,000 in about a month.)
In many cases, hemp has replaced permanent crops in Florida, including citrus and blueberries.
“We’re talking about citrus groves that weren’t producing,” says Florida cannabis director Holly Bell, “so those are being dug up and the land is being repurposed to bring in revenue and create new jobs.”
Some blueberry growers who were struggling as a result of increased competition from Mexico have also turned to hemp.
Hemp has an enormous number of uses, such as for textiles and even for paper, but markets are limited by a lack of facilities for producing these products.
“Textiles and fiber can be made from the pith,” says Frederick Schilling, a partner in Klersun, LLC, a company that specializes in hemp-derived extracts.
“That will eventually increase once the infrastructure is built out to support those products.”
He foresees this occurring in three to five years.
Infrastructure will, in part, determine the future of the cannabis industry. So will legislation. The third factor is business acumen and integrity.
“As with any emergent industry, there were bad actors doing things that were giving the industry a bad name,” says Chris Bourne, Schilling’s partner. “Fortunately, a lot of those folks have been weeded out.”
Some analysts also believe the industry has lost much of its “wildcat” mentality and is now more comparable to mature packaged-goods companies.
Possibly the most modern wholesale produce market in the U.S., the Philadelphia Wholesale Produce Market recently celebrated 10 years in business.
In 2011, the market opened the doors at 6700 Essington Ave., welcoming buyers to its fully enclosed, fully refrigerated 686,000-square-foot facility, according to a news release.
The market is home to 19 wholesale produce businesses that employ hundreds of people in both union and non-union positions and donate more than 2 million pounds of fresh produce to local charities every year.
“We are proud to pave the way as a leader in cold chain management, product safety, staging, loading, security and recycling,” market general manager Mark Smith said in the release. “In addition to establishing the highest global standards for distributing produce, our goal is to divert as much waste from the landfill as we possibly can. Through anaerobic digestion and other environmentally friendly practices, we’ve reduced our waste stream by about 80% and continue to focus on that last 20%.”
Three market business leaders weighed in on what the market means to them:
- Tracie Levin, general manager of M. Levin & Co. Inc.:
“We couldn’t have asked for a better facility to showcase our produce. The bright, clean (and of course ‘cool’) and spacious market that has become our home has been great for the merchants and all of the customers who shop at the PWPM.”
U.S. food expenditures generally followed several predictable trends over the past 25 years. But 2020 was an exception as people in the U.S. spent approximately $1.56 trillion on food, which was a 5.3 percent reduction from the $1.65 trillion spent in 2019, according to a USDA report.
The disruption of trends in food spending is attributed to the pandemic limiting mobility of U.S. consumers and the economic recession coming with it for most of 2020.
The drop from 2019 to 2020 was only the second time total food expenditures decreased over the last 25 years, with the other time in 2009 during the Great Recession.
The decrease in total food spending in 2020 was driven by an 18.3 percent drop in spending at restaurants and the like. Because of the additional cost of eating away from home, that decrease outweighed an 8.5 percent increase in food-at-home (FAH) spending as consumers shifted to buying more food from retailers.
In April of last year, U.S. consumers spent about two-thirds of their food dollars at FAH retailers, the highest value on record. FAH and food-away-from-home (FAFH) spending increased 7.9 percent and 36.2 percent, respectively, from April to May 2020.
This increase may be due in part to the stimulus checks and increased unemployment benefits that were provided with the enactment of the CARES Act at the end of March 2020. However, FAFH spending in May 2020 was still lover than the previous year, while FAH spending was higher.
The last quarter of 2020 saw monthly increases in FAH spending, an expected outcome of colder weather and holiday meal preparation, which resulted in record-high FAH spending in December.
FAFH spending decreased in November by 10 percent and showed a slight increase in December but remained well below 2019 levels.
While COVID-19 vaccine distribution for select groups began in the United States in December 2020, the post-pandemic landscape of the economy remains unclear.
The USDA, Economic Research Service will continue to monitor the effects of the pandemic on food expenditures as more data become available and will examine possible long-lasting behavioral changes in the way people purchase food.
U.S. organic sales soared to new highs in 2020, jumping by a record 12.4 percent to $61.9 billion.
It marked the first time that total sales of organic food and non-food products have surpassed the $60 billion mark, and reflected a growth rate more than twice the 2019 pace of 5 percent, according to the 2021 Organic Industry Survey released Tuesday by the Organic Trade Association.
Black beans, flour, and chicken broth are not typically out of stock. They were in 2020. In that unprecedented year, organic’s reputation of being better for you and the planet positioned it for dramatic growth.
In almost every organic food aisle, demand jumped by near-record levels, propelling U.S. organic food sales in 2020 up a record 12.8 percent to a new high of $56.4 billion. In 2020, almost 6 percent of the food sold in the United States was certified organic.
The COVID-19 pandemic caused consumer dollars to shift almost overnight from restaurants and carry-out to groceries, with traditional staples and pantry and freezer items flying off the shelves. Consumer habits were upended, online grocery shopping and grocery deliveries exploded, and new products were tried as families ate three meals a day at home.
“The pandemic caused abrupt changes in all of our lives. We’ve been eating at home with our families, and often cooking three meals a day. Good, healthy food has never been more important, and consumers have increasingly sought out the Organic label. Organic purchases have skyrocketed as shoppers choose high-quality organic to feed and nourish their families,” said Laura Batcha, CEO and Executive Director of the Organic Trade Association. Batcha announces the new data Tuesday at Organic Day at Natural Products Expo West.
Stocking the pantry, refrigerator and freezer with organic
Leading the charge for healthy food was the desire for fresh produce. Fresh organic produce sales rose by nearly 11 percent in 2020 to sales of $18.2 million. Frozen and canned fruits and vegetables also jumped with frozen sales alone rising by more than 28 percent. Including frozen, canned and dried products, total sales of organic fruit and vegetables in 2020 were $20.4 billion. More than 15 percent of the fruits and vegetables sold in this country now are organic.
Pantry stocking was overwhelmingly the main growth driver in 2020. As bread making and cookie baking took kitchens across the country by storm, sales of organic flours and baked goods grew by 30 percent.
Consumers also turned to “meal support” products to help them in the kitchen. Sales of sauces and spices pushed the $2.4 billion condiments category to a growth rate of 31 percent, and organic spice sales jumped by 51 percent, more than triple the growth rate of 15 percent in 2019.
Meat, poultry & fish, the smallest of the organic categories at $1.7 billion, had the second-highest growth rate of nearly 25 percent.
Supply constraints
“The only thing that constrained growth in the organic food sector was supply,” said Angela Jagiello, Director of Education & Insights for the Organic Trade Association. “Across all the organic categories, growth was limited by supply, causing producers, distributors, retailers and brands to wonder where numbers would have peaked if supply could have been met!”
Jagiello, who spearheads the coordination of the survey for the association, also noted that because of the pandemic, not only ingredients were taxed, but packaging—bottle lids, pouches, corrugated cardboard, bottles for dietary supplements—was in short supply as were workers and drivers to transport product, making it hard for producers to ramp up processing to meet consumer demand.
Steady growth in non-food sector
The organic non-food category did not see the same exceptional growth in 2020 as organic food, but its growth held steady with prior years. Sales of organic non-food products reached $5.4 billion, up 8.5 percent and only slightly below the 9.2 percent reported in 2019.
Reflecting the pandemic and as in the conventional market, organic sales were driven by personal hygiene, hand sanitizers and cleaning products. Sales of organic household products saw record growth of 20 percent.
Textiles and fibers, the biggest category of the organic non-food sector, saw sales slow as stores closed, and clothes buying dipped. That said, the category fared better than expected given its ties to brick-and-mortar retail and the shutdown of that sales channel for a significant period of time. For the year, U.S. organic fiber (linens, clothing and other textiles) sales grew at a rate of 5 percent, compared to 12 percent in 2019, reaching sales of $2.1 billion.
What’s ahead in the “new normal”
While the growth in organic food sales is not expected to continue at 2020’s fast rate, organic food sales are expected to stay on a strong growth path in 2021. It’s anticipated that the grocery industry at large will get a lasting lift from the pandemic for the foreseeable future as many consumers continue to cook more at home.
“We’ve seen a great many changes during the pandemic, and some of them are here to stay,” said Batcha. “What’s come out of COVID is a renewed awareness of the importance of maintaining our health, and the important role of nutritious food. For more and more consumers, that means organic. We’ll be eating in restaurants again, but many of us will also be eating and cooking more at home. We’ll see more organic everywhere – in the stores and on our plates.”
This year’s survey was conducted early in 2021 from January through March 2021 and was produced on behalf of the Organic Trade Association by Nutrition Business Journal (NBJ). Nearly 200 companies completed a significant portion of the in-depth survey. Executive summaries of the survey are available to the media upon request. The full report can be purchased; online orders can be placed on this page.
“Rates keep going higher and higher, adding difficulty to the already complex produce industry.”
Intergrow Greenhouses, a farming company located in Upstate NY, focusing on the production and sale of greenhouse grown tomatoes, is thankful to have their own private trucking fleet to help service their customers. Stating the primary goal of their own fleet is to give the best possible service to top tier retail customers. Understanding the importance of “On-time, In-Full” is fresh, perishable produce they have taken transportation into their own hands!
“When you contract a load through an outside broker or carrier you lose some of the visibility and control required to really deliver the best service possible. That’s why we’ve invested in our own fleet and in a freight market like this it has really paid off having the ability to run our own loads.” Explains Dirk Biemans, President of Intergrow Greenhouses.
“Although we are close to major markets, there is a lot of freight needing to be moved in this area of the US and there is, and has been more demand than supply in the market. That’s why we are so grateful to be running some of our own trucks.” Says Bill Cook, a 30yr transportation veteran and current Logistics Manger at Intergrow Greenhouses. “During the peak season we have as many as 50+ loads a week shipping out of our facilities, of course our own band of guys can’t handle of that high volume, so they remain on our retail accounts, providing consist and reliable transportation for the business. “ Currently expanding their business with another 10acre greenhouse, Intergrow says they are first and foremost a grower and farmer but saw the need to deliver consistent quality service to their customers in order to grow their business. “Here at Intergrow we’re not only striving for the highest quality product but also reliability. Our customers need to have confidence we can deliver of premium product, reliably and consistently throughout the year.” says Kris Gibson, VP of Sales and Marketing “This last part of the puzzle, transportation, has really helped us grow these past years.”
As rates increase Intergrow has also seen their own fleet benefiting them in other ways… cost control. “Our own transportation costs have increased as well, but in a controlled in regimented manor.” Says Biemans. “We are not at the mercy of the market for some of our most important loads. “Rates keep going higher and higher making it adding difficulty to the already complex produce industry. No matter the freight market you are expected to deliver product under your contracted price.”
Intergrow is currently looking to hire additional drivers to their fleet and asks anyone interested to email Bill Cook at logistics@intergrowgreenhouses.com.
Per capita consumption of avocados in the U.S. avocado could rise from 9 pounds per capita in 2021 to 11 pounds in five years, according to a new avocado market analysis by Rabobank.
Authored by David Magana, senior analyst for fresh produce and tree nuts for Rabobank, the report signals good prospects for both short-term and long-term consumption gains.
For 2021, the report said healthy consumer demand for avocados is fueled by economic recovery, sustained retail sales and increasing foodservice activity.
Increased shipments from Peru and Mexico will offset a lighter California crop in 2021. However, avocado availability in the U.S. may be tight in some weeks later this summer when California’s and Peru’s seasons end and Mexico transitions to the new season.
Per capita avocado consumption, has jumped from 4 pounds in 2010, rising to 8.5 pounds in 2018. Following that trend of per capita gains of about 8% annually, per capita avocado consumption could exceed 11 pounds per year by 2026.
Consumer demand for avocados has been increasing, and one promising element of future demand is changing U.S. demographics, according to the report. Younger generations feature a greater proportion of Hispanic consumers.
About 25% of Gen Z consumers are Hispanic, compared with the 17% share among millennial consumers and 12% among Gen X consumers.
“Hispanic consumers in the U.S. tend to consume more avocados than the average U.S. consumer,” the report said.
Mexico’s per capita consumption, as a point of reference, is 18 pounds, which the report said “shows the headroom that remains” in less mature markets.
About 40% of U.S. households said they purchased avocados in the past 12 months, according to the report. That is lower than fruits such as blueberries, lemons, watermelon, grapes, oranges and strawberries and significantly lower than apples and bananas, which are purchased by about two-thirds of households.
Still-rising production prospects in Mexico, Peru and Colombia point to further increases in shipments to the U.S. and other markets.
Mexico will continue to be the main provider of avocados to the U.S. market, with shipments to the U.S. rising by single-digit percentages in 2021.
Acreage of avocados continues to rise in Mexico, with current acreage near 568,000 and about 50,000 acres of non-bearing groves yet to produce commercial fruit.
California’s avocado production has been flat to declining over the past two decades, but rising imports have allowed U.S. per capita consumption to gain.
Avocado production and exports from Chile have been flat to declining, reflecting tight water availability in some regions and growth in competing markets in Europe and Asia.
Peru has become an increasingly important supplier of avocados to the U.S. market. Avocado planted acreage in Peru is estimated at 106,000 acres in 2021, up from about 72,000 acres in 2016. Exports from Peru in 2021 are expected to reach a new record of 460,000 metric tons, a 26% increase compared with a year ago and almost 160% higher compared to 2016.
Avocado production and exports in Colombia will expand rapidly, the report said, with most shipments directed to European and Asian markets.
North Carolina produce shipments dipped slightly from 2019, U.S. Department of Agriculture statistics show.
Fresh produce shipments in the state totaled 1.09 billion pounds, down 2.3% from 1.11 billion pounds in 2019.
Here are shipment figures by commodity for 2020, compared with 2019 and 2010:
- Sweet potatoes: 532.6 million pounds in 2020, up 1% compared with 525.4 million pounds in 2019 and down 19% from 659.5 million in 2015.
- Seedless watermelon: 143 million pounds in 2020, down 21% compared with 181.5 million pounds in 2019 and down 6% from 152.4 million pounds in 2015.
- Cabbage: 21.3 million pounds in 2020, down 3% compared with 22 million pounds in 2019 and down 40% from 35.1 million pounds in 2015.
- Potatoes: 20.6 million pounds in 2020, up 41% compared with 14.6 million pounds in 2019 and down 2% from 21.1 million pounds in 2015.
- Blueberries: 18.1 million pounds in 2020, down 40% compared with 26.1 million pounds in 2019 and down 48% from 34.3 million pounds in 2015.
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Bell peppers: 16.5 million pounds in 2020, down 33% compared with 24.6 million pounds in 2019 and down 32% from 28.4 million pounds in 2015.
Greens: 11.7 million pounds in 2020, down 18% compared with 14.2 million pounds in 2019 and down 59% compared with 28.4 million pounds in 2015.
Apples: 10.8 million pounds in 2020, up 59% compared with 6.8 million pounds in 2019 and up 11% compared with 9.7 million pounds in 2015.
Cucumbers: 10.9 million pounds in 2020, down 5% compared with 11.2 million pounds in 2019 and down 40% compared with 18.1 million pounds in 2015.
Seeded watermelon: 6.7 million pounds in 2020, up 1.5% compared with 6.6 million pounds in 2019 and down 60% compared with 16.7 million pounds in 2015.
Tomatoes: 3.4 million pounds in 2020, down 18% compared with 4.7 million pounds in 2019 and down 32% from 5 million pounds in 2015.
Beans: 2.6 million pounds in 2020, down 44% compared with 4.6 million pounds in 2019 and 63% compared with 7.1 million pounds in 2015.
The market dynamics that have led to higher transportation costs were a long time coming and won’t quickly be solved.
Industry leaders discussed some strategies to deal with the problems during a recent United Fresh Reimagine webinar on the future of transportation.
“We project this is a multiyear problem, probably 48 months or longer,” said Todd Bernitt, Vice President – Managed Services for Robinson Fresh.
“The driver pool problem may take a decade or longer to play out,” he said about the driver shortage.
He said a normal load-to-truck ration should be 2.5 or 3 loads per truck. Now it’s about 8-1.
“We’ve seen peaks I’ve never seen before,” Bernitt said, citing 30-1 ratios from Florida this spring and 40-1 from Texas during the winter storms earlier this year.
“All of this is market based,” said Brian Kocher, President and CEO of Castellini Company LLC. “All of this fits together. Regional growing will change the strategy, as with urban, greenhouses and vertical farms. We’re building as much flexibility as we can and advise our partners to do that.”
One simple solution to improving driver retention is to treat drivers and transportation companies better, said Jeff Moore, Vice President of Sales for Tom Lange Company Inc.
“Treat carriers like your best supplier or your best customer,” Bernitt said.
Shipments of asparagus from Peru to PortMiami have continued to grow this year after last year’s record.
During the first three months of the year, the Florida port has processed a record number, over 14.1 million of pounds of asparagus.
“Miami-Dade County is a new gateway for asparagus from Peru to Florida, as well as for millions of consumers across the USA and Canada,” the port said in a release.
During 2020, PortMiami imported over 148.7 million pounds of
asparagus, shattering the previous year’s record of 112.9 pounds.
Over the years, the number of asparagus has increased exponentially, from just 26.2 million pounds in 2017.
So far this calendar year, PortMiami has imported 13 percent more than by the same time last year.
The significant increases in asparagus imports via ocean transportation to Miami demonstrate that importers consider PortMiami as their preferred gateway.
“The reason that Miami-Dade County attracts asparagus from Peru is due to the fact that we have an abundance of cold storage warehouses and some of the most experienced fumigation providers in the industry,” the press release said.
Peru contributes the largest share of asparagus that enters into PortMiami. The majority of asparagus varieties imported from Peru to PortMiami are Green Asparagus.
Demand for Imports from Peru have been substantial this year. A major factor for Peruvian growers is that the climate allows two full crops of asparagus a year, providing plenty of vegetables to Miami-Dade County.
According to Max Rodriguez, Director of Peru Trade Office, Miami. (PROMPERU), “Miami, despite the Covid19 crisis, asparagus exports continued to grow in 2020 and will continue to grow in 2021, consolidating Peru as the main supplier of asparagus in Florida and the second supplier in the United States.”
Recently Seaboard has added an express service between Peru and PortMiami that has helped create an exponential increase in asparagus imports, as the express route is only 9 days from Callao, 7 days from Paita and 6 days from Guayaquil.