Archive For The “News” Category
By Paul Nesbit, Account Manager, ALC Des Moines
Why are the rates so high? Where are all the trucks? When will it go back to normal?
All modes of transportation have been struggling to find these answers, the light at the end of the tunnel so to say. But the reality is we don’t have these answers. The last year has been challenging for obvious reasons, and as the containment of the COVID-19 outbreak continues to progress, so does the demand for transportation capacity.
How do we continue to service our customers, source capacity, and stay profitable all at the same time? Is that even possible? Yes, it is. And it boils down to a better understanding of the market, drivers, and communication.
The usual conversations between brokers and customers are focused on load details, commodities, quantities, temps, ready dates, and so forth. But, why not also discuss the market conditions related to bigger picture items? Information is a powerful tool for productive decision making and for educating our fellow supply chain members. We can work together to share insights and forecasts too!
As the gap between truck supply and freight demand continues to spread, most of us can attest it’s the tightest truck market in decades. Couple that with a driver pool which continues to age due to more drivers retiring while fewer drivers enter the workforce, and we all face an extremely fragile market.
Carriers are doing anything possible to help combat this issue and get drivers in the seat. We hear of this from our carrier partners every day. We also find that the small to midsize carriers are more successful in growing their fleets than the larger players as it’s easier to go from 5 trucks to 10 than it is from 50 to a 1,000.
At Allen Lund we are blessed that our core carriers fall into this category as it allows us to keep up with our customer demand in a way their asset pools cannot. All too often we find ourselves in a position of wanting to fulfill a buyer’s need for transportation and an obvious lack of supply that fits all of their freight parameters. Whether that be finding capacity within their vendor’s allowance, or finding a truck within the allotted freight spend that’s also able to deliver the load by the desired arrival time. This is a great time for honest communication and education about how to work together in this challenging market.
Maybe the buyer is willing to sacrifice price in order to keep a timeline or vice versa. Maybe there’s an ad and we need to make it happen, or maybe there is enough inventory on hand to tide them over until next week while we shop for better pricing. Unfortunately, with perishable shipments, time is of the essence. If we can’t find flexibility on load dates, maybe next time we can increase the lead time.
Anticipating continued driver shortages and elevated consumer demand as the world opens back up from the coronavirus will be key to staying ahead of the always hectic produce season. Buyers, brokers, and transportation managers will all benefit by being more comfortable talking about freight spend and capacity restraints. A wise man once said that there’s no hill for a climber.
We are all in this game together. Communication on market trends and drilling down to prioritize our freight will help us get through this as we establish the new norm in transportation.
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Paul Nesbit began working for the Allen Lund Company in February of 2020, when they acquired Des Moines Truck Brokers (DMTB) in Norwalk, IA. He has been working in transportation brokerage since graduating from Grand View University in 2012. He first started as an admin for TMC Transportation completing carrier setups and billing. Nesbit later obtained his CTB and was hired at DMTB. He has been an account manager in the Des Moines office for the last eight years.
Plant City, FL – International grower and year-round marketer of strawberries, blueberries, blackberries and raspberries, Wish Farms, is pleased to announce the ribbon cutting on its new headquarters in Plant City, FL. The ceremony commemorated the official move in to Wish Farms’ new 24,000 square foot office on its 36-acre campus.
“Our company has a one-hundred-year relationship with the community of Plant City. Our connection goes back to our days on the State Farmers Market and beyond,” said Wish Farms’ owner Gary Wishnatzki. “This is a strawberry town, so keeping our new address here means a lot to our company, employees and growers.”
The land on which the campus is built has a strong connection to agriculture dating back generations before Wish Farms’ purchase. Proceeds from its sale in 2018 were placed into a charitable trust benefiting local FFA and agriculture education by the previous owner, Joe Kuhn.
In addition to the office built by construction company Barr and Barr, the campus features a blueberry farm, 125,000 square foot warehouse/cooling facility with a 20,000 square foot solar array, digital billboard, a treehouse, walking trails and lake. According to the Florida Department of Transportation, approximately 115,000 vehicles drive past the Wish Farms’ headquarters every day.
About Wish Farms:
Founded in 1922, Wish Farms is a fourth-generation, family operated company. As a year-round supplier of strawberries, blueberries, blackberries and raspberries, it grows both conventional and organic varieties.
The owners of Habelman Bros. Co. in Tomah, WI., and L&S Cranberry LP in St. Lucien, Quebec, recentiy formed the Cranberry Cooperative of the Americas.
These fresh cranberry suppliers have united to leverage their experience and knowledge in the growing, handling and packaging of fresh cranberries to best serve retailers worldwide, according to a news release.
“As a cooperative committed to and focused on the fresh cranberry segment, we believe that the CCA model will bring an entirely new level of value to our buyers as well as to the farm,” president and CEO Mike Dubuc said in the release. “Ultimately, fresh is the reason our members farm cranberries.”
The cooperative has commissioned The Cranberry Network LLC of Wisconsin Rapids, WI., and Graystone LLC of East Wareham, MA., to serve as its marketing team and managers of the cooperative. The owners of these two marketing teams have more than 50 years of combined experience in the fresh cranberry space.
“In combining the Habelman family’s resources and experience with those of the L&S team, we now represent the geographically diverse supply solution for the fresh cranberry market,” Bob Wilson, vice president of sales and chief operating officer, said in the release.
“These two vertically integrated players now provide complimentary services to one another with multiple and diverse packaging capabilities.”
Total U.S. fruit imports rose by 9 percent last February compared to February 2020 and were largely driven by fresh berries.
USDA figures show the growth in fruit imports – which includes fresh, frozen, processed and juice – at $2 billion, came amid strong increases in fresh strawberries and blueberries and was partially offset by a big drop in avocado imports.
Strawberries rose by 23 percent to $208 million, with Mexico supplying almost all the volumes.
Imports of conventional blueberries saw an increase of 63 percent to $140 million, with the U.S.’s three main supplying countries all showing big increases. Imports from Chile rose by 33 percent to $75 million, and from Mexico and Peru they slightly more than doubled to $52 million and $13 million respectively.
Organic blueberry imports also showed significant growth, rising by 69 percent to $61 million.
The two other berry categories also performed well. Raspberry imports grew by 30 percent to 90 million, while blackberry imports rose by 9 percent to 44 million. In both cases, Mexico was virtually the sole supplier.
Other double-digit increases came in mango and pineapple imports, which rose by 21 and 19 percent respectively to total $48 million each. Limes also rose by 73 percent to $45 million.
There was a significant drop in avocado imports, which fell by 22 percent to 174 million, with almost all supplies coming from Mexico. Table grape imports saw a small drop of 4 percent to $288 million, with the decrease driven by Chile and partially offset by growth from Peru.
Outside of the fresh fruits, total U.S. fruit imports were also spurred on by a 29 percent increase in fruit juices to $182 million and a 31 percent rise in frozen fruit to $94 million.
The fruit import rise in February follows a slower month in January when imports saw a slight dip of percent, USDA data shows.
In 2020, U.S. fruit import growth ground to a halt.
Exports of agricultural and fishing products from Mexico increased 5 percent in March compared to the previous year, totaling over $2.1 billion.
Mexico’s Ministry of Agriculture and Rural Development reports the most biggest increases were fresh strawberries with almost 70 percent, citrus with 50 percent, raw coffee beans at 31 percent, pepper and edible fruits and nuts with 28 percent and 19 percent, respectively.
There were reductions, however, with avocados by 15 percent and tomatoes declining nearly 13 percent decrease compared to the previous year.
The association said during the first quarter of 2021, agricultural exports totaled over $5.5 billion, which is similar to last year which was more than $5.4 billion.
Livestock and fishing showed a 6.3 percent increase in February year-on-year, according to the National Institute of Statistics and Geography’s Global Indicator of Economic Activity (IGAE).
During the first two months of 2021, the country’s agricultural and agro-industrial balance (agri-food balance) showed a surplus of over $1.7 billion.
Agri-food exports grew over 2.6 percent year-on-year by adding more than $6.7 billion, while agricultural and agribusiness imports increased 7.3 percent, increasing $5 billion year-on-year.
Mexico’s total agri-food trade reached over $11.7 billion in the first two months of 2021.
In the agroindustrial sector, exports totaled $3.4 billion, showing annual growth of 9.5 percent.
Smoky Mountain Family Farms (SMFF) premium tomato farming operation announces strategic plan for expansion and the acquisition of Triple C Family Farms of Midway, TN.
Since beginning their partnership in SMFF in Spring 2020, the Pappas, Esformes and Hellers, three fourth-generation tomato farming and distribution families, have created a unique opportunity to showcase eastern Tennessee agriculture. Executing on one part of their strategic expansion, they have purchased Triple C Family Farms.
Together, their expertise in the tomato industry brings an unwavering commitment to food safety, product quality and reliability. In addition, with a dedication to equitable treatment of workers, SMFF is the first and only Tennessee farm to be certified by the Fair Food Program in partnership with the Coalition of Immokalee Workers (CIW). This SMFF farming expansion includes an expansion of the programs reach for fair treatment of farm workers into Tennessee.
Aris Pappas and Jon Esformes, Co-Managing Partners of Smoky Mountain Family Farms, say in a joint statement:
We had a vision for a regionally local summer and fall fresh tomato farming operation. This acquisition of Triple C, is one part of our strategic plan to provide the Northeast, Southeast, Mid-Atlantic, Appalachian Mountain and Midwest regions with the absolute finest in outdoor-grown tomatoes. We are honored to have the opportunity to continue to build upon the legacy of the Chandley family in our expansion from Newport into Midway and beyond.
Production has tripled heading into the 2021 season with the acquisition.
SMFF now operates out of Newport, TN and Midway, TN locations. This strategy consolidates Pacific Tomato Growers’ Virginia operation, which was closed in late 2020, as part of their plan and in anticipation of this Tennessee farming expansion.
Additional farmland purchases in the offseason will support further growth into the 2022 season and the future.
SMFF will be “Following the Sun, Leading in Quality”® and packing premium outdoor-grown rounds, romas, snacking tomatoes and organics under the renowned Sunripe Certified and Suncoast Certified brand names.
For more information about Smoky Mountain Family Farms contact sales@smffllc.com, or reach out to Aris or Jon directly.
Aris Pappas
Managing Partner SMFF/Co-CEO Pete Pappas & Sons Inc
Aris.Pappas@petepappasinc.com
Office: (443) 296-7880
Jon Esformes
Managing Partner SMFF/CEO Sunripe Certified Brands
Jon@sunripecertified.com
Office: (941) 722-3291
Stemilt of Wenatchee, WA is primed for good volume shipments of California cherry to arrive at retail supermarkets in time for the Memorial Day weekend at the end of May.
Memorial Day is May 31st and California cherry shipments are expected to exceed the small crop of last year.
Stemilt’s World Famous cherry season started off with strong qualities, classic ruby colors, and medium-sized fruits. The company will move into harvesting varieties like Tulares, Hazels, and Coral in the coming weeks to load for Memorial Day.
Stemilt’s cherry season started off with strong qualities, classic ruby colors, and medium-sized fruits. The company will move into harvesting varieties like Tulares, Hazels, and Coral in the coming weeks to load for Memorial Day.
Depending on location, retailers should start loading as early as May 14. However, the heaviest loading period will begin on May 18 through May 22. With the way things are currently going, the supply and demand almost lines up perfectly with Memorial Day availability.
Volumes are projected to continue past Memorial Day for Stemilt in California, with the latest orchards that deliver 5 River Islands® hand-picked cherries coming off the tree around June 8. This will coincide with Stemilt’s cherry harvest start in Washington State, making the weeks following Memorial Day a big time for cherries at retail.
By Del Monte Fresh Produce N.A. Inc.
Coral Gables, FL – Del Monte Fresh Produce N.A., Inc., marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, has announced through a partnership with Apeel, a company fighting the global food waste crisis with its sustainable approach to keeping produce fresh longer, it will now be able to offer its customers longer lasting avocados.
When paired with Fresh Del Monte’s high-quality avocados, Apeel’s innovation will allow them to stay fresher two times longer, helping to reduce food waste. With an infrastructure already in place to help support growth in the category, Fresh Del Monte’s new and existing customers will now be able to partner with the brand on their Apeel application.
Derived from plants, Apeel’s edible coating doubles the shelf life of fresh produce by slowing the rate of water loss and oxidation – the main factors that lead to spoilage. Made of materials found in the peels, seeds, and pulp of fruits and vegetables, Apeel’s coating helps maintain just-harvested quality, flavor and freshness longer than produce without Apeel.
As the only plant-based, end-to-end solution allowing a 2X longer shelf life for avocados, Apeel will help bring a new wave of benefits to Fresh Del Monte’s growers, packers, distributors and retailers and will offer shoppers and their families premium quality avocados that retain their flavor and ripeness for longer.
“As one of the top three suppliers of avocados in the U.S., we are excited to offer our customers the option to work with Apeel,” said Kirk Marquardt, Vice President, Avocado Sales. “At Fresh Del Monte, sustainability is a top priority and we know that Apeel’s sustainable approach to reducing food waste will help to build a more resilient food system for the future. We are confident that our strong avocado program will continue to grow from this exciting partnership.”
With over 100 years of brand recognition and one of the newest and largest state of the art packing facilities in Mexico, Fresh Del Monte remains committed to offering its customers the freshest and most convenient produce options. The innovation of Apeel will help to provide new and more sustainable options for them for years to come.
The vast majority of Mexican fresh fruit and vegetable exports are to the United States.
Last season Mexico exported $7.5 billion of vegetables and $7.4 billion of fruit, with 96 percent and 84 percent going to the U.S., respectively.
For vegetables, tomatoes were big leader at about $2.1 billion with most of the exports going to the U.S., with bell peppers at around $600 million, followed by other peppers and cucumbers.
Avocados were the most exported fruit at about $1.9 billion followed by walnuts at a little below $600 million, then limes.
This information was documented in a webinar hosted by Veggies From Mexico to show Mexican exports have grown in the past decade, with the focus on tomatoes.
“In 2002, Mexico was exporting $360 million in tomatoes and now it is way above $2.1 billion,” Georgius Gotsis, CEO of Veggies From Mexico said.
The growth can be accredited to the creation of what was NAFTA at the time and also improving technology specifically in greenhouses and shade houses.
The Mexican state Sinaloa has about 19,768 acres of protected agriculture and is one of the most important production regions, with about 10 percent of Mexico’s total produce production coming from the area.
“During the 2019-20 season, almost 3,000 hectares (7,413 acres) of tomatoes were grown in Sinaloa’s protected agriculture,” Gotsis said.
Tomato seedling production starts in August, moving to field and greenhouse seeding in September and harvesting beginning in December and finishing by May.
Peruvian citrus exports grew 37 percent in 2020 compared to 2019, with shipments of 244,000 metric tons (MT) valued at US$262 million, according to The Foreign Trade Research and Development Institute of the Lima Chamber of Commerce (Idexcam).
Local website La Camara reports a record-breaking year, given that exports have been growing year after year since 2017.
Indexcam points out a growing demand for citrus, due to the pandemic, especially with mandarins, due to their antioxidant properties and high content of vitamin C which strengthens the immune system, creating a rebound of global commercialization.
In 2020, mandarin exports totaled $250.4 million, showing a growth of 36 percent compared to the previous year at $184 million.
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Mandarin shipments increased with the U.S. leading and reporting a 54 percent growth.
The Netherlands followed with a 19 percent increase to $15 million, Canada at 15 percent with $17.8 million, China with 40 percent to $15.7 million and Russia increased 90 percent to $13.2 million.
Ireland, Hong Kong, Spain, Mexico, Panama and Japan also experienced growth.
The export of oranges also increased to $12.1 million for a 46 percent growth.
Production in Peru
Mandarin production in Peru reached 525,000MT, in 2020 with Lima being the main producing region with 44 percent of the total; followed by Junín at 24 percent, Ica with 17 percent and Puno with 6 percent.
Orange production totaled 553,000MT with Junín as the main producing region at 45 percent of the total, followed by San Martín with 14 percent, Puno with 9 percent and Cusco at 5 percent.