Archive For The “News” Category

Prima Wawona Announces Major Stone Fruit Expansion

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Fresno, CA – Prima Wawona, the world’s leading grower and marketer of conventional and organic peaches, nectarines, plums, and apricots recently announced that it is expanding its acreage by another 2600 acres devoted to growing Stone Fruit.  The new acreage increases the company’s total to almost 15,000 acres, equating to 1.0 million additional Stone Fruit trees, and further establishes Prima Wawona as the leading Stone Fruit grower in the world. 

“As industry leaders, this investment represents an ongoing commitment to the growth and development of the Stone Fruit category and will help us achieve our long-term objectives.  It will allow Prima Wawona to expand its ability to grow, harvest, pack and ship the healthiest, most delicious, highest quality Stone Fruit” said Eric Beringause, Chief Executive Officer of Prima Wawona. 

“We look forward to building our partner relationships with valued retail and wholesale customers across North America and around the world by providing additional product for their shoppers who acknowledge and appreciate Prima brands as the best Stone Fruit available” said Kevin J. Kollock, Chief Commercial Officer.  “Additional Stone Fruit will also provide selling opportunities with new customers who may not have experience with our superior products”.  Kollock added that “our expansion will put Prima Wawona acreage at a total approaching double the peach acreage of all of Georgia, a state known for peaches”. 

Prima Wawona has been involved in breeding & growing Stone Fruit for generations.  The company is known for its unrivaled quality and consistency across multiple varieties.  Prima Wawona is committed to quality control, unwavering attention to food safety, and ongoing research and development.  The 2,600-acre expansion is on top of approximately 1,000 acres that are redeveloped and replanted with new trees every year as older plantings age out of production and further reflects the company’s commitment and investment in Stone Fruit.   

“This expansion is an exciting opportunity for our team, customers, and ultimately consumers” said Mark Murai, Senior Vice President of Agricultural Operations.  “We are the best in the industry in understanding what it takes to deliver the finest Stone Fruit available.  That commitment to excellence includes our extensive proprietary breeding program and development of new, innovative varieties in both conventional and organic fruit that this additional acreage will provide”.  Murai added that “as a company we are focused on sustainable farming practices and will be utilizing cutting-edge water management technology on all of our new & redevelopment acreage”.   

For more information, please email the Prima Wawona Team at info@prima.com

About Prima® Wawona:

Prima® Wawona is the largest producer of stone fruit in the U.S. Based in the heart of California’s central San Joaquin Valley.

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Keeping It Fresh and Balanced

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By Matt Sarko,Transportation Broker, ALC Cleveland

Since the beginning of last year, the increase in the cost of freight has not only impacted the transportation industry but the economy as a whole. Transportation costs are now at an all-time high as drivers and trucks are currently in short supply.

Food prices rose 3.9% in 2020 and the U.S. Department of Agriculture anticipates another 2% to 3% increase for costs in 2021. The increase in transportation prices is primarily due to the shortage in drivers causing trucking companies to increase wages to attract more employees.

Additionally, the market is experiencing a shortage in semi-conductors, which is keeping new trucks from coming on the market and has since exacerbated the issue.  The increase in transportation costs only adds to the supply chain problems for growers, suppliers, and retailers as they are still experiencing the effects of congested ports as well as the winter storm, which both continue to have widespread impacts across the U.S.

Furthermore, the rise in the price of fuel is also a major contributor to the inflated freight costs. As a result of these supply chain complications, retailers have begun raising prices on a number of different goods in order to offset the shortages and transportation costs. “The rise in transportation prices affects everything from the farmer and the tractor, to the fertilizer and even the plastic hamper you put the product in.”

With the supply chain in disorder, we will continue to see a rise in the price of consumer goods. Moreover, the cost of transportation will ultimately affect the prices of publicly traded companies such as Bed Bath & Beyond and General Mills, considering they have alerted investors about these problems on their earnings call.

For transportation brokers like ourselves, taking advantage of the spot market whenever possible might be the best way to combat the losses taken on contractual year round rates as freight prices continue to rise, and to also keep important products, produce, and perishables moving across the country.

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Matt began working fulltime for the Allen Lund Company in August of 2020 as a transportation broker for the Cleveland office. He originally started working his summer breaks during college as a broker’s assistant for the office. Matt joined the company with a degree in Finance from John Carroll University.

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Mexico Surpasses Spain to Becomes World’s Leading Exporter of Strawberries

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Mexico is now the world’s leading strawberry exporter in 2020, having over taken Spain.

The Mexico News Daily reported for over 20 years Spain was led the pack with $646 million in sales in 2020, while Mexico reached over $851 million, an increase of 12.4 percent from 2019.

The U.S. ranks third with $477 million.

Mexican strawberries’ main export destination was the U.S., as it imported 99.3 percent of Mexico’s shipments. Spain mainly exports within Europe.

Mexico overcame difficulties prompted by the current pandemic such as shortage of labor and the collapse of foodservice demand, to which 15 percent of the fruit is sold.

On the other hand, the pandemic contributed to the purchase of foods perceived as healthy, such as berries, according to the USDA.

The Mexican strawberry market surpassed the Belgian market in 2012, the Dutch in 2016, and the U.S. market in 2019.

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Onion Shipments Increase, Although Slowly over Years, USDA Reports

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U.S. onion consumption has increased over the past two decades.

Though the gains have not been dramatic, USDA per capita availability numbers for onions have consistently risen since 2000.

The USDA’s per capita retail availability for fresh onions (edible weight) has increased from 14.4 pounds in 2000 to 16.2 pounds in 2019. Per capita retail availability of onions reached 19.8 pounds in 2017, according to USDA statistics, before falling to 16.2 pounds for both 2018 and 2019.

The import share of the total U.S. onion supply was 14% in 2019, up from 6% in 2000, according to the USDA.

Here is a comparison of onion truck shipments from U.S. sources in 2020, compared with 2015 and 2010.

  • Arizona: 19.1 million pounds, compared with 29.1 million pounds in 2015 and 24.7 million pounds in 2010;
  • Central California: 339.1 million pounds, compared with 304.8 million pounds in 2015 and 328.9 million pounds in 2010;
  • California Imperial Valley: 144.9 million pounds in 2020, compared with 119.1 million pounds in 2015 and 91.6 million pounds in 2010;
  • California South: 16.1 million pounds in 2020, compared with 110.5 million pounds in 2015 and 113.1 million pounds in 2010;
  • Colorado: 106.4 million pounds in 2020, compared with 159.6 million pounds in 2015 and 248.2 million pounds in 2010;
  • Georgia: 180.1 million pounds in 2020, compared with 166.8 million pounds in 2015 and 181.9 million pounds in 2010;
  • Idaho: 690.2 million pounds in 2020, compared with 478.7 million pounds in 2015 and 368.4 million pounds in 2010;
  • Michigan: 47.9 million pounds, compared with 67.4 million pounds in 2015 and 65.2 million pounds in 2010;
  • New Mexico: 415.3 million pounds, compared with 379.9 million pounds in 2015 and 319.5 million pounds in 2010;
  • New York: 154.8 million pounds in 2020, compared with 236.2 million pounds in 2015 and 180.5 million in 2010;
  • Oregon: 526.3 million pounds in 2020, compared with 644 million pounds in 2015 and 502.5 million in 2010;
  • Texas: 299.7 million pounds in 2020, compared with 65 million pounds in 2015 and 273.5 million pounds in 2010;
  • Utah: 74.1 million pounds in 2020, compared with 74.9 million pounds in 2015 and 59.5 million pounds in 2010;
  • Washington: 1.11 billion pounds in 2020, compared with 775.9 million pounds in 2015 and 645.4 million pounds in 2010; and
  • Wisconsin: 57.6 million pounds in 2020, compared with 44 million pounds in 2015 and 41.3 million pounds in 2010.

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Rouge River Farms Buys Green Bean Grower Magnolia Packing in Georgia

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Rouge River Farms of Gormley, ON has acquired of all assets and shares of Magnolia Packing of Americus, GA.

Magnolia is a green bean grower and packer with operations in Florida and Georgia.

Following the agreement with Rouge River Farms, Magnolia will continue to operate with their current management and sales staff to ensure a smooth transition to the new ownership.

The Magnolia green bean packing operation is expected to complement the corn program at Rouge River, and this year the company will be able to offer a year round green bean program with the opening of its new packinghouse in Virginia’s Shenandoah Valley.

Magnolia has 5,000 acres of green beans planted.

About Rouge River Farms
Rouge River Farms is a premiere distributor of sweet corn to grocery chains throughout North America and has farmland and packinghouses in Florida, Georgia, Virginia, and Ontario, providing farm fresh sweet corn year round.

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The 56 Men Who Signed the Declaration of Independence: What Happened to Them?

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4th Of July:

Have you ever wondered what happened to the 56 men who signed the Declaration of Independence?

Five signers were captured by the British as traitors, and tortured before they died. Twelve had their homes ransacked and burned. Two lost their sons serving in the Revolutionary Army; another had two sons captured. Nine of the 56 fought and died from wounds or hardships of the evolutionary War. They signed and they pledged their lives, their fortunes, and their sacred honor.

What kind of men were they?

Twenty-four were lawyers and jurists. Eleven were merchants; nine were farmers and large plantation owners; men of means, well-educated, but they signed the Declaration of Independence knowing full well that the penalty would be death if they were captured.

Carter Braxton of Virginia, a wealthy planter and trader, saw his ships swept from the seas by the British Navy. He sold his home and properties to pay his debts, and died in rags.

Thomas McKeam was so hounded by the British that he was forced to move his family almost constantly. He served in the Congress without pay, and his family was kept in hiding. His possessions were taken from him, and poverty was his reward.

Vandals or soldiers looted the properties of Dillery, Hall, Clymer, Walton, Gwinnett, Heyward, Ruttledge, and Middleton. At the battle of Yorktown, Thomas Nelson Jr., noted that the British General Cornwallis had taken over the Nelson home for his headquarters. He quietly urged General George Washington to open fire. The home was destroyed, and Nelson died bankrupt.

Francis Lewis had his home and properties destroyed. The enemy jailed his wife, and she died within a few months.

John Hart was driven from his wife’s bedside as she was dying. Their 13 children fled for their lives. His fields and his gristmill were laid to waste. For more than a year he lived in forests and caves, returning home to find his wife dead and his children vanished.

Also approximately 1/5th of the colonists fought against the British. So, take a few minutes while enjoying your 4th of July holiday and silently thank these patriots. It’s not much to ask for the price they paid.

It’s time we get the word out that patriotism is NOT a sin, and the Fourth of July has more MEANING to it than beer, fireworks, HOT DOGS, and picnics.

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Dole Selects Port Tampa Bay for New Shipping Route

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Dole pineapples and bananas to the United States will pass through Port Tampa Bay starting in late July, via a new shipper service according to the Tampa Bay newspaper.

In addition to fruit, the direct weekly route linking Tampa, Honduras and Guatemala will also deliver containerized shipping of cargo such as automobiles and other commodities. Two ships, the MV Dole Maya and MV Dole Aztec, will deliver all goods and materials from Central America to Tampa; Gulfport, Miss.; and Freeport, Texas.

One reason Tampa was picked was a 135,000-square-foot refrigerated warehouse that opened in 2018, allowing the port to receive shipments of bananas, pineapples, limes, mangoes and other fruit from Central America.

“Our cold storage and port terminal operations facility is ideally positioned to serve the Tampa/Orlando I-4 corridor, which is Florida’s largest and fastest growing market, and reaching well beyond,” developer Richard Corbett of Port Logistics Refrigerated Services, which operates the warehouse, said in a statement.

John Trummel, vice president and general manager of Dole’s commercial cargo division, said in a statement the new Tampa route would enable the company and its non-agricultural clients new ways to reach their destinations “faster and more competitively.”

While Dole Food Company is the world’s leading commercial producer of pineapples and bananas. Port president and CEO Paul Anderson highlighted the opportunity to import all kinds of commodities.

“This marks a major milestone in our strategic efforts to continue to diversify our cargo mix and expand our container volume, which is now our fastest growing line of business,” Anderson said in a statement.

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Spending on Eating Out Plunges in 2020 Due to COVID-19 Pandemic

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A nearly 20% decline in spending on eating out occasions contributed to a 5% decline in food spending in 2020, according to the USDA.

In a report on food expenditures, the USDA said 2020 U.S. spending on food totaled about $1.56 trillion, 5.3% lower than the $1.65 trillion spent on food in the U.S. in 2019. Last year was only the second time annual total food expenditures decreased over the last 25 years.

The only other time spending decreased, notes the USDA, was in 2009 during the Great Recession. 

The 2020 decrease in total food spending was driven by an 18.3% drop in spending at restaurants, cafeterias, and other eating-out places.

Because of the additional cost of eating away from home, that decrease outweighed an 8.5% jump in food-at-home (FAH) spending.

For the past 25 years, U.S. food annual total expenditures and the share of food-away-from-home showed steady increases, with the highest share of food away from home spending occurring during the summer months.

The coronavirus COVID-19 pandemic limited mobility of U.S. consumers and led to an economic recession for most of 2020, disrupting historical trends in food spending,” the USDA report said.

In April 2020, U.S. consumers spent about two-thirds of their food dollars at food at home retailers (grocery outlets), the highest value on record.

The last quarter of 2020 saw monthly increases in food at home spending, an expected outcome of colder weather and holiday meal preparation, which resulted in record-high food at home spending in December.

On the other hand, food away from home spending decreased in November by 10% 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 food economy remains unclear,” the USDA said.


 

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Lemons and Limes Consumption Continues Upward Trend

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Lemons and limes continue to grow in per capita consumpution, according to USDA figures.

Between 2010 and 2018, per capita lemon availability grew 46%, from 2.8 pounds in 2010 to 4.1 pounds in 2018, the USDA reported.

For limes, the growth is slightly more impressive, rising from 2.6 pounds in 2010 to 3.9 pounds in 2018, an increase of 50%.

U.S. imports of both citrus varieties have been going up. For lemons, imports have grown from 93 million pounds in 2010 to 322 pounds in 2019, a gain of 246%. In the same time period, domestic lemon supply increased from 968 million pounds to 1.41 billion pounds, a gain of 46%.

The import share of the total U.S. lemon supply was 19% in 2019; in 2010, the import share of the total U.S. lemon supply was 9%.

For limes, the USDA does not record any domestic lime production as of 2019. U.S. imports of limes have increased from about 800 million pounds in 2010 to  1.36 billion pounds in 2019.

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Pallet Shortages are Putting the Shipments of Fresh Produce at Risk

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By United Fresh Produce Association

WASHINGTON, D.C. – Although conversations are occurring within the North American (and global) industry relative to the current acute pallet shortages, we believe that many do not yet realize the factors impacting the situation and the potential scope of the issue, including the availability of produce to consumers.

A multitude of issues are impacting pallet availability including:

  • Efforts of wholesalers, distributors and retailers to ensure sufficient inventory of non-perishables given previous pandemic-related impacts.
  • The availability of lumber to repair and build new pallets.
  • The escalating price of lumber when it is available.
  • Non-perishable inventory dwell time increase. 
  • Lack of available trucks to relocate pallets.

The lack of pallets is adding stress to a supply chain that is already facing significant challenges which include a lack of available trucks and shipping containers, ongoing labour challenges, fluctuating fuel costs, pandemic-related challenges and a pending shortage of resin used to make reusable containers and pallets.  At this time expectations are that the pallet shortage will continue for months, perhaps for the balance of 2021 – all at a time when many North American produce items are just beginning seasonal harvests and shipments.  

To give a sample of the scope of the issue, we’ve compiled the following information:

  • The shortage of lumber and wood products has increased the cost of raw lumber 200% to 350% and is making the cost of wood pallets increase incrementally. 
  • In one example, it was noted that over the past few weeks, pallet costs have increased more than 400%, IF the pallets are even available, and often they are not.  
  • One farmer was told by one pallet supplier that they are not taking any new customers due to an inability to fill even existing customer demand.
  • Companies are forced to bring pallets from other jurisdictions thereby incurring border and transportation costs.
  • Pallets are being held in-house due to delayed and cancelled orders from pallet services, leading to higher storage charges and increased congestion within operations.

Working together, the supply chain must balance organizational goals relative to overall availability of goods with availability of food.  If there is not a concerted effort across the supply chain to ensure pallet availability for shipment of produce, there is little doubt that it will be very difficult, if not impossible, for the grower/shipper community to meet buyer, and ultimately consumer, demand for produce.  Simultaneously, growers and shippers are working hard to remain compliant with pallet requirement specifications where they can, but this is proving challenging.  Temporary modifications or exceptions to pallet requirements, as long as they do not jeopardize safety, would prove advantageous until this pallet shortage is resolved.

This letter is intended, in part, to act as a catalyst for industry awareness and should be shared with all stakeholders to ensure a consistent understanding of the issue and to encourage discussions and efforts towards a path forward.  All partners in the supply chain should have regular conversations with their pallet suppliers to understand the situation and pallet inventories/availability.

We welcome the opportunity to work collaboratively with all parties within the supply chain to mitigate the impacts of the current shortages and will reach out to stakeholders to identify a path forward that provides solutions to this increasingly disruptive threat and enables the continued flow of goods.

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