Archive For The “News” Category
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.
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.
Construction of a south Texas distribution center for Mexico-based GAB Operations, with completion scheduled for October.
The new 45,590-sf facility, when complete, will provide increased cold storage capacity for fresh produce and serve as a hub for the company’s U.S. and Canadian customers.
Founded more than three decades ago in Guanajuato, Mexico, GAB specializes in the production, development, marketing and distribution of fresh and frozen vegetables and fruits.
Items range from broccoli to cauliflower, spinach and other leafy greens, varieties of lettuce, celery, sweet corn, snow peas, pumpkin, sweet mini peppers, berries, among others.
Additionally, the company operates under the brand name Mr. Lucky, which is one of the largest garlic and organic tomato producers in Mexico. It prepares fresh-cut produce for foodservice clients and provides pre-packed salads and private-label products for many U.S.-based produce companies.
GAB’s Laredo distribution center will be located in the Pinnacle Industry Center, which is just minutes from the Rio Grande River and the Laredo International Airport. It is neighbor to Mission Produce’s new 262,000-sf greenfield ripening, processing and distribution center, an A M King project that will be complete this summer.
GAB reports the GAB project will not only house the cold storage warehouse and offices of the GAB Laredo distribution center, but will also feature a trucker dormitory where its fleet drivers may rest before continuing their route.
CINCINNATI and MONROE, OH — The Kroger Co. and Drone Express, a division of TELEGRID Technologies, Inc., recently announced a pilot to offer grocery delivery via autonomous drones, expanding the retailer’s seamless ecosystem and providing customers with anything, anytime, anywhere.
“Kroger’s new drone delivery pilot is part of the evolution of our rapidly growing and innovative e-commerce business – which includes pickup, delivery, and ship and reached more than $10 billion in sales in 2020,” said Kroger’s Jody Kalmbach, group vice president of product experience. “The pilot reinforces the importance of flexibility and immediacy to customers, powered by modern, cost-effective, and efficient last-mile solutions. We’re excited to test drone delivery and gain insights that will inform expansion plans as well as future customer solutions.”
The pilot will offer customers unparalleled flexibility as Drone Express technology allows package delivery to the location of a customer’s smartphone not only to a street address, simply meaning a customer will be able to order delivery of picnic supplies to a park, sunscreen to the beach, or condiments to a backyard cookout, for instance.
Kroger is designing bundled product offerings ideal for meeting customer needs within the current weight limits for drone delivery, which is about five pounds. As an illustration, Kroger will offer a baby care bundle with wipes and formula, a child wellness bundle with over-the-counter medications and fluids, and a S’mores bundle with graham crackers, marshmallows, and chocolate. Using Kroger.com/DroneDelivery, customers can place orders and have eligible orders delivered within as little as 15 minutes.
“Autonomous drones have unlimited potential to improve everyday life, and our technology opens the way to safe, secure, environmentally friendly deliveries for Kroger customers,” said Beth Flippo, Chief Technology Officer, TELEGRID. “The possibilities for customers are endless – we can enable Kroger customers to send chicken soup to a sick friend or get fast delivery of olive oil if they run out while cooking dinner.”
Drone Express commenced test flights in early May near the Kroger Marketplace in Centerville, Ohio (1095 South Main Street). The flights were managed by licensed Drone Express pilots from an on-site trailer with additional off-site monitoring. Customer deliveries are scheduled to begin later this spring, and a second pilot is scheduled to launch this summer at a Ralphs store in California.
LOS ANGELES – The Giumarra Companies recently announced a revolutionary new logistics project in the fresh produce industry, an autonomous trucking test completed in partnership with San Diego-based autonomous trucking leader, TuSimple (Nasdaq: TSP), and the nation’s largest cooperative food wholesaler, Associated Wholesale Grocers, Inc. (AWG).
“Our company continues to travel down a path of innovation, as we have now successfully tested autonomous trucking after our autonomous aircraft transportation test a few months ago,” said Tim Riley, President of the Giumarra Companies. “Autonomous trucking technology is a real game changer for us, as its time efficiencies provide us with an enhanced opportunity to supply fresher fruits and vegetables across the United States – particularly to food deserts and rural communities.”
On May 3, 2021, TuSimple picked up a load of fresh watermelons from Giumarra’s facility in Nogales, Arizona, and transported the produce across four states to AWG’s distribution center in Oklahoma City, Oklahoma, where the fruit was inspected and distributed to Doc’s Country Mart and Homeland grocery stores across the state.
The pick-up and delivery of the produce, commonly referred to as “first mile” and “last mile,” was done manually with a human driver, while the longest portion of the journey from Tucson, Arizona, to Dallas, Texas, also known as the “middle mile,” was done autonomously using TuSimple’s self-driving technology. The autonomous portion of the journey covered more than 900 miles.
“We believe the food industry is one of many that will greatly benefit from the use of TuSimple’s autonomous trucking technology,” said Jim Mullen, Chief Administrative Officer, TuSimple. “Given the fact that autonomous trucks can operate nearly continuously without taking a break means fresh produce can be moved from origin to destination faster, resulting in fresher food and less waste.”
About the Giumarra Companies
The Giumarra Companies is a leading international network of fresh produce growers, distributors, and marketers that encompasses a world of freshness. Since its inception in 1922, the Giumarra group of companies has taken pride in a longstanding commitment and tradition of quality, service, and industry leadership to feed the world in a healthy way. Products packed under the company’s Nature’s Partner label represent some of the highest-quality fruits and vegetables in the marketplace, having met strict standards for food safety, quality control, and flavor. Visit us at www.giumarra.com.
About TuSimple
TuSimple is a global autonomous driving technology company, headquartered in San Diego, California, with operations in Arizona, Texas, China, Japan and Europe. Founded in 2015, TuSimple is developing a commercial-ready Level 4 (SAE) fully autonomous driving solution for long-haul heavy-duty trucks. TuSimple aims to transform the $4 trillion global truck freight industry through the company’s leading proprietary AI technology, which makes it possible for trucks to see 1,000 meters away, operate nearly continuously and consume 10% less fuel than manually driven trucks. Visit us at www.tusimple.com.
VERO BEACH, FL – IMG Citrus, a family-owned, vertically integrated citrus grower, packer, and shipper in Vero Beach, FL, announced the acquisition of a large citrus grove in Charlotte County. The 2,500-acre grove increases their control of citrus land management in Florida by 27%, bringing their total acreage in Florida to 11,387 acres and further securing their position as an established citrus leader in the state of Florida. The grove was originally planted in the 1990s and known as the Chiquita grove. The IMG Citrus family has renamed it the Imagine grove, referencing an existing IMG Citrus brand and their excitement for the opportunities to come in Florida citrus.
The 2,500-acre property IMG Citrus acquired is a mixed-use farm property with citrus, vegetable, and sod land. The varieties of citrus on the property include red grapefruit (Ruby Red, Star, Flame, and Ray), Navel oranges, and Cara Cara oranges. IMG Citrus will be planting an additional 60-acres of grapefruit on the property in Fall 2021 with plans to continue new grove plantings in the future. Over the next three years, IMG Citrus intends to invest over $1.5M in capital expenditure through the addition of equipment and the enhancement of the infrastructure of the property. IMG Citrus is also considering growing watermelons on the property with the available infrastructure.
“There are also a total of 752-acres of wetlands on the property with endless amounts of nature and beautiful wildlife,” says Melanie Ressler, IMG Citrus Co-CEO, “This property showcases what really drives our purpose as a farmer. By sustainably managing producing acres and conserving wetlands, we can grow delicious citrus while also diligently conserving our natural resources.”
The Imagine Grove, located in Charlotte County, increases IMG Citrus’ geographical diversification and footprint in southwest Florida. Prior to the Imagine Grove acquisition, the Avant Grove, a total of 1,086-acres and located in DeSoto County’s Arcadia, was IMG Citrus’ only southwestern Florida grove.
As a diversified company, integrating a landscape business through the sod land on the Imagine Grove property provides an appealing development opportunity for IMG Citrus. 60-acres of sod land are currently in production; however, the company intends to redevelop the sod operation to its full capacity of 219-acres of infrastructure. The sod will most likely be marketed under the Cherrylake brand. Cherrylake, Inc. is IMG Citrus’ sister company and one of the largest wholesale producers of ornamental trees, palms, and shrubs in the Southeast. Cherrylake also has a landscape construction division and landscape maintenance division.
“This property has historically produced very high-quality red grapefruit for which Florida is well known, says Melanie Ressler. “It is exciting to further deepen our offering to our customers and consolidate our position as the leading Florida fresh grapefruit grower.”
The property was acquired from the Packers of Indian River, the same company IMG Citrus previously purchased the Happy Food Grove (3,928-acres) from in 2019 and the Sweet 60 Groves (562-acres) in 2017. The procurement of the Imagine Grove continues the long history and partnership between IMG Citrus and the Packers of Indian River. IMG Citrus will also be onboarding the team of employees, some with 30 years of tenure on the property.
About IMG Citrus:
IMG Citrus is a second-generation citrus grower, packer, marketer, and shipper in Vero Beach, Florida, with over 11,000 acres of productive AGland. Family-owned and operated for over 40 years, IMG Citrus was founded by Michel and Veronique Sallin. Today, a second-generation of family-operators is involved and working alongside the most professional industry leaders that make up the IMG Citrus team. Together, Melanie Ressler, Timothee Sallin, and Chloe Gentry are Co-CEOs of the company, furthering the legacy of their parents’ genuine love for sustainable agriculture and an entrepreneurial spirit that fuels a passion for using the most innovative processes and technologies.
About IMG Enterprises:
IMG Enterprises, the holding company for IMG Citrus and Cherrylake, is a Florida-owned and operated family enterprise with business in citrus, ornamental tree nursery, real estate, mitigation banking, and landscape construction and maintenance. The mission of IMG Enterprises is to manage a sustainable enterprise rooted in the land which benefits its family, employees, and community while having a positive impact on the environment. With over 500 employees, the company ranks 37th on the list of Top Privately Held Companies by the Orlando Business Journal.
Truckload freight activity declined last month but April was still the second busiest month on record for shippers, freight brokers and motor carriers, said DAT Freight & Analytics, which operates the industry’s largest online freight marketplace and DAT iQ data analytics service.
The DAT Truckload Volume Index (TVI) registered 225 in April – down 5% from the all-time high set in March. The index is an aggregated measure of dry van, refrigerated (“reefer”) and flatbed loads moved by truckload carriers. A baseline of 100 reflects freight volume in January 2015.
“It’s not unusual to see a decline from March to April, but truckload freight activity remained at historic levels compared to previous years,” said Ken Adamo, Chief of Analytics at DAT. “The April TVI was 39% higher than it was in April 2020 and April 2018, and 26% higher than in April 2019, indicating unusually strong demand for truckload capacity last month. Trucking companies are in the driver’s seat with respect to pricing power.”
The national average spot rate for van loads on the DAT One load board network was 8 cents lower than the March average at $2.59 per mile, but the second-highest monthly average van rate on record. The national average spot reefer rate was $2.93 per mile, 2 cents lower than in March, while the spot flatbed rate averaged $2.96 per mile, 18 cents higher month over month.
Contract rates for truckload services—scheduled and planned transportation where the rate is negotiated well in advance and part of a larger commitment to move goods—were historically high in April. The average contract van rate was $2.66 per mile and increased for the twelfth consecutive month. In addition, the average contract rate for reefer freight was $2.78 a mile, 15 cents below the average spot reefer rate.
The national average contract rate for flatbed equipment, which is used to haul construction materials, heavy equipment and a variety of other industrial goods, was $2.96 per mile – $1.03 higher than in April 2020. On the spot market, the flatbed load-to-truck ratio averaged 95.7, meaning there were more than 95 loads posted for every available truck last month.
“There’s a feeling among businesses that they are at their ceiling for the price of logistics,” Adamo said. “Spot and contract rates are high as we enter a period when truckload capacity is only going to tighten, as produce and retail goods move ahead of the July 4 holiday and back-to-school shopping season.”
May outlook
- Supply chain imbalances due to commodity shortages for manufacturing and the reopening of long-shuttered offices and service businesses have led to increased use of the spot market. In most years, 12 to 15% of truckload freight moves on the spot market; that figure is closer to 25% today.
- During the first week of May, the volume of load posts on DAT One was 36% higher compared to the same period in 2018, when spot truckload freight activity followed a more typical pattern.
- Expect demand for refrigerated trailers to increase as domestic produce harvests expand north beyond the U.S. southern border.
- The national average price of on-highway diesel was $3.13 a gallon in April. Spot rates include a calculated surcharge that fluctuates with the price of fuel, which is expected to rise following the cyberattack on the Colonial Pipeline.
Coral Gables, FL – Del Monte Fresh Produce N.A., Inc., one of North America’s leading marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, has announced two of its energy efficient container vessels, Del Monte Harvester and Del Monte Valiant, will be moving to the west coast. These two vessels were launched in July 2020 along with four additional energy efficient reefer container vessels.
Each vessel has a full cargo capacity of 1,276 TEU with 634 plugs for 40-foot high cube reefer containers, and given the perishable nature of fresh fruits and vegetables, the air-cooled containers will maintain the cargo at specified temperatures, traveling in reefer mode with multiple temperature variants from -25C to 40C. Moving these vessels to the west coast will not only allow Del Monte Fresh Produce to have full control over its fleet, but will also assist with speeding up shipping times, ensuring that customers receive the freshest products.
“We are excited about the move of these two vessels to the west coast,” said Helmuth Lutty, Senior Vice President of Shipping Operations for Fresh Del Monte Produce. “Providing customers with high quality products in in a timely manner is a top priority of ours and we are proud to be able to do it in a way that helps meet our sustainability goals as a company.”
Equipped with the latest hull design and vertical bow to achieve a service speed of up to 22 knots with a very efficient fuel consumption, both the Del Monte Harvester and Del Monte Valiant meet the most stringent emission control regulations, allowing Del Monte Fresh Produce, N.A to continue fulfilling its commitment to create a positive impact on the environment. Additionally, the vessels’ Hybrid Scrubber system meets all international requirements to reduce pollution and control emissions of noxious substances.
Del Monte Fresh Produce N.A Inc. has been a market leader in growing and shipping premium quality fresh produce for several decades and a recognized authority in the fruit industry.
Produce shippers with foodservice customers see 2021 being a little more sane than last year.
Shippers in the Santa Maria area of California relate the pandemic’s effect on shipments has been profound, but foodservice demand is slowly recovering.
Beachside Produce LLC. of Guadalupe, CA sees improved foodservice shipments approaching pre-pandemic levels, which could happen as early as midsummer.
Mid-July is also the target date for a return to pre-pandemic foodservice demand levels for AB Fresh Inc. of Santa Maria, CA, which has experienced wild swings in demand in 2020 as the virus affected different regions of the country.
Main Street Produce of Santa Maria reports reaching the pre-pandemic level of demand will take time. The company see shipments increase as the country exits the pandemic, but it could be a multi-year process before approaching pre-pandemic levels. Last year’s increased shipments to retailers is carrying over into 2021.
Innovative Produce of Santa Maria described the past year as “a wild ride” with 2021 being “moderately less wild.” Barring another big wave/shutdown, Babé Farms is optimistic foodservice will be close to pre-pandemic levels in late 2021 or early 2022.
Durant Distributing of Santa Maria says “normal” should be back when all restaurants are open 100%.
LOXAHATCHEE, Fla. — J&J Family of Farms (“J&J”), a Florida-based leading national grower, packer and shipper of field-grown vegetable commodities and value-added produce, today announced strategic infrastructure investments and new grower relationships that further expand its capacity to deliver premium quality produce throughout the year to retail and foodservice customers.
With over 10,000 acres of farmland already under management and multiple packing and cooling facilities across North America, J&J has acquired another 1,000 acres of agricultural land near Vero Beach, Florida to support its growth. In addition to being prepared to grow a significant volume of sweet and hot peppers, yellow squash, zucchini, cucumbers and eggplant for commercial distribution, this land will house a new research and development facility and a dedicated area for seed variety trials.
Additionally, J&J also welcomed new dry vegetable and watermelon growers to its network across five states, adding more than 1,000 additional acres to the company’s contracted production capacity.
J&J is a wholly owned subsidiary of Benson Hill, a food tech company unlocking the natural genetic diversity of plants with its cutting-edge food innovation engine, CropOS™. Today’s announcement is a part of Benson Hill’s recently-announced plans to enhance J&J’s operations with breeding and testing sites, expanded processing and distribution capacity and sustainability best practices across J&J’s grower base.
J&J Family of Farms’ transportation subsidiary, Trophy Transport, manages its fleet, and contracts independent, third-party owners and operators to satisfy the demand of produce shipping.
With five J&J locations throughout the eastern US, Trophy Transport has access to over 100,000 square feet of refrigerated produce warehouse space for cross-docking freight.
Cross Docking Locations
- Loxahatchee, FL
- Boca Raton, FL
- Adel, GA
- Homerville, Ga
- Tifton, GA
About J&J Family of Farms
Established in 1983, J&J Family of Farms is a leading grower, packer and shipper of field-grown vegetable commodities. J&J specializes in bell peppers, green beans, cucumbers, squash and eggplant. Within their family of farms, J&J operates packing and cooling facilities in Arizona, Florida, Georgia, Texas and Mexico. J&J’s farm-to-fork approach starts with expertise in farming directly. J&J is a wholly owned subsidiary of Benson Hill. Learn more at www.jjfamilyoffarms.com.