Archive For The “News” Category
An estimated that around 20,000 acres of banana plantations have been lost in Honduras due to flooding from Hurricane Eta. The estimate would represent about half of the total acres in the Central American country, which bore much of the brunt of the recent storm.
The storm came amid one of the most severe Atlantic hurricane seasons on record and caused widespread damage to the region. One banana grower estimated it was the largest damage in history for bananas. It is estimated at least 16,000 direct jobs are at risk in the Honduran banana industry and the volume of fruit exported will decrease. The most affected areas in the country is Olanchito, which sits along the Aguán River.
One of the banks of the river overflowed and resulted in a total loss for the Standard Fruit Company of 4950 acres of bananas. The Agriculture Ministry said that there was also severe damage to the production of corn, sugar, and rice. With dropping flood waters hundreds of thousands of households, businesses and farmers across the country are beginning to count the damage.
Between September 2019 through August U.S. imports of fresh vegetables were up 11 percent, according to the USDA.
While fresh vegetable imports were up by double-digit percentages, the USDA reported fresh and frozen fruit imports gained just 2 percent compared with the previous year.
Among vegetables with big import gains, the USDA noted fresh garlic imports for the year ending in August were up 58 percent — the result of a COVID-19 immunity buying frenzy. Other double digit gains were noted for tomatoes, squash, cucumbers, potatoes and beans.
Fast-rising imports of fruit commodities were noted for mangoes (up 15 percent) and kiwifruit (up 19 percent),
By fresh commodities (except as noted), U.S. imports from September 2019 through August, with percent change compared with the previous year, are:
- Berries: $2.93 billion, up 5%;
- Tomatoes: $2.68 billion, up 17%;
- Avocados: $2.59 billion, down 2%;
- Fresh or frozen bananas/plantains: $2.45 billion, up 2%;
- Peppers: $1.73 billion, up 4%;
- Grapes: $1.67 billion: up 4%;
- Citrus: $1.30 billion, up 6%;
- Fresh or frozen strawberries: $1.05 billion, up 5%;
- Cucumbers: $894.9 million, up 10%;
- Fresh or frozen pineapples: $661.2 million, up 3%;
- Asparagus: $653 million, down 5%;
- Mangoes: $633.4 million, up 15%;
- Melons: $608.3 million, down 10%;
- Squash: $473.99 million, up 27%;
- Onions: $456.4 million, up 4%;
- Lettuce: $374.4 million, up 9%;
- Cauliflower and broccoli: $351.7 million, up 6%;
- Potatoes: $259.1 million, up 31%;
- Garlic: $234.8 million, up 58%;
- Beans: $165.45 million, up 15%;
- Kiwifruit: $159.88 million, up 19%;
- Apples: $153.6 million: down 27%; and
- Pears: $109.3 million, down 6%.
By Steve Hull, Manager, ALC, Portland
What a strange year it’s been so far in 2020, with so many changes and challenges in the perishables space! One item, that could greatly affect the business models and proprietary information of grower/shippers, has gone under the radar.
In a nutshell, a minority of motor carriers and carrier trade associations (such as OOIDA) are pushing the Federal Motor Carrier Safety Administration (FMCSA) to update the terms and enforcement of an existing section of federal code relating to freight costs paid between grower/shippers, brokers, and carriers. 49 CFR 371.3(c) was initially written back in the days of deregulation in 1980, and requires brokers to allow carriers to view the rates paid by the transportation buyer to the broker.
In practical terms, however, carriers have rarely asked to view that information. The majority of renewed interest in the regulation came about in Q2 of this year. Coinciding with historically low shipping volumes nationwide, normal supply and demand market forces caused a sharp fall in freight rates to carriers. Basically, a lack of supply (not as many available loads) caused a decrease in demand (lower freight rates). Carriers in turn, wrongly accused brokers of price gouging and other unscrupulous business tactics.
How does this all apply to grower/shippers? Just like forklifts, pallets, and packing material – the linehaul freight cost of getting your goods to your customer is something you purchase out of your operational budget. When the code was written back in the 80’s, it was more normal for carriers to pay a ‘commission’ to the broker. But now, the way most freight transactions occur has changed.
Per an article about this topic on Overdrive Online, Jason Craig, of C.H. Robinson stated on a recent listening session with the FMCSA, many brokers treat the contracts with shippers and carriers, as “separate transactions” and that “the price paid by the shipper does not affect the price paid to the carrier any longer.”
If changes are made to the code, the proprietary pricing you pay to a broker could be mandated to be given to a motor carrier. For every load. In essence, your buying power and negotiated pricing would be laid bare for all to see.
An important point as well, you could be barred from inserting language into any shipper-broker contract to keep your pricing from being disclosed. A dire scenario would be one that causes you to change your business practices.
You could even decide to end yearly, or quarterly, RFPs to brokers! All because a few carriers didn’t like the rates they were being offered by some brokers for a few weeks in early 2020. (And to get you up to speed on rates in Q3 and Q4, per DAT, there are many lanes that are seeing record high truck rates being paid to carriers.)
What can you do? You can read up on these broker carrier issues here. And more importantly, FMCSA is still accepting comments from anyone interested in voicing their opinion. The comment period is open until November 18, 2020.
You can use this link to submit your thoughts, comments, and concerns. You can also reach out to your freight broker, to discuss how any changes would affect your specific business.
Steve Hull is manager of the Portland office and has been with the Allen Lund Company for 24 years. Hull is a graduate of the University of Southern California completing a dual major in political science and U.S. history.
Mushroom grower South Mill Champs of Kennett Square, PA has purchased a new distribution center in Lakeland, Fla.
The 30,000-square-foot-plus food-grade facility will get the upgrades necessary for mushroom processing and then start commissioning it in November, according to a news release.
South Mill Champs operates a network of distribution centers, including Atlanta, New Orleans, Dallas, Houston and Los Angeles.
The centers provide onsite, fresh-sliced, high-quality mushrooms directly from the company’s Pennsylvania and British Columbia farms. Also, the distribution centers provide seasonal produce items to the local foodservice and retail markets.
“Our expansion into Florida is in line with our mission as we meet the increasing demand from our customers, many of which have a significant presence in this key market,” CEO Lewis Macleod.
National mushroom retail sales are more than 20 percent ahead of last year in dollars and 17 percent ahead in pounds, according to an analysis of retail data through September 6, published by the Mushroom Council.
The retail insights also show that mushrooms have placed in the top 10 of fruits and vegetables with the highest year-over-year absolute dollar gains for 26 straight weeks.
“We expect that market demand for mushrooms will continue to increase,” Macleod said, “as mainstream consumers become increasingly educated on the health and environmental benefits of mushrooms.”
A joint project has been announced by Guimarra Companies with Reliable Robotics Corporation of Mountain View, CA to test shipments of produce utilizing autonomous aircraft technology, developed by the latter company.
Created to help address supply chain and delivery challenges within the fresh produce industry, the test flight program had its successful inaugural flight on August 7.
Giumarria Companies, based in Los Angeles said simply calling the project groundbreaking would be an understatement. The company believes autonomous aircraft will transform the future of the fresh produce industry. It further noted the technology will evolve the way products are delivered to market by allowing the delivery of fresher, riper fruit anywhere in the country, including remote food deserts, at speeds never before seen.
An automated Cessna 172 Skyhawk, with an engineer and pilot on board for safety assurance, completed a 200-mile journey from Reedley Municipal Airport to Whiteman Airport in Los Angeles. Giumarra previously announced an air freight shipment, completed in partnership with Reliable Robotics on August 7, to deliver peaches grown in the San Joaquin Valley to Southern California grocery retail via a pilot-operated Cessna 208.
In 2019, Reliable Robotics achieved a fully autonomous flight on the Cessna 172 Skyhawk without an onboard pilot. The company has also demonstrated automated landing of the larger Cessna 208 Caravan and is in the process of certifying its automation platform for use on the Caravan, a popular cargo plane ideal for air shipments of produce.
The program provides proof automation can improve speed and quality for the entire fresh produce supply chain: Utilizing autonomous aircraft, growers and suppliers can quickly and more efficiently deliver farm fresh produce to stores in less time, resulting in less shrink.
Retailers, particularly those in smaller or more remote markets, can offer consumers fresh produce available at stores within 24-48 hours of being picked. Growers can produce varieties optimized for flavor and texture versus long-haul transportation methods.
“Giumarra is a forward-thinking company and we’re proud to partner with them to show how automated cargo flights can greatly improve fresh food distribution,” said Robert Rose, Co-founder and CEO of Reliable Robotics. “We believe autonomous aviation is going to change the way we experience food, for the better.” Reliable Robotics is currently working with the Federal Aviation Administration and in 2017 was founded by SpaceX and Tesla veterans, who have raised $33.5 million in two funding rounds.
Bananas remain America’s favorite fruit, but growth is slow at the top.
U.S. banana imports from August 2019 to July were 5.12 million metric tons, up less than 1% compared with the previous year.
By value, the U.S. Department of Agriculture reports banana imports totaled $2.46 billion in 2019-20, up 1.2% compared with 2018-19.
The USDA per capita availability consumption of bananas rated 28.3 pounds in 2018, down slightly from 28.7 pounds in 2017 and up slightly from 28 pounds in 2015, up 10.5% from 25.6 pounds in 2010 and virtually unchanged from 28.4 pounds in 2000.
Modest growth
According to the USDA, the annual percent of volume growth of banana/plantains imports:
- 2011: 7.1%
- 2012: 2.2%
- 2013: 6.1%
- 2014: 2.9%
- 2015: 2.9%
- 2016: 1.1%
- 2017: 2.6%
- 2018: 2.6%
- 2019: -2.9%
- 2020: NC.
A Guinness World record for the Ozblu blueberry variety has again been set, breaking a record for an Ozblu berry 2 ½ years ago.
The 16.2-gram (0.57-ounce) berry breaks the previous record of 12.39 grams, according to a news release, and was grown by Dave and Leasa Mazzardis, founder of Natures Select breeding program in Wibinga, Australia.
The Mazzardis work to produce low-chill evergreen blueberry genetics that are viable for growers and offer consumers juicier, crunchier and tastier berries, according to the release.
“While larger blueberries are a result of this natural selection process, and although some markets do prefer ‘jumbo’ size berries, our focus amongst other agronomical traits remains delivering a consistent and quality eating experience to the consumer,” Dave Mazzardis said in the release.
The record was officially recorded by the Guinness organization on Sept. 20.
At 36.3 millimeters, the record-setting berry is more than twice the diameter of the average 18 millimeters of an average Ozblu.
Berry size is not the most important attribute, said Roger Horak, founder of United Exports, which licenses the Ozblu variety.
“We are intent on growing the best blueberries on the market and this means that taste, crunch and flavor are our priorities,” he said in the release. “Dave and Leasa just happen to grow record-sized.”
By Veronica Marshall
Broker’s Assistant, ALC Boston
Everyday there are millions of drivers on the road in the U.S. Unfortunately many of these drivers see or experience the dangers of driving while fatigued.
We have to take responsibility for our own actions. If we feel tired but think we could go another five miles or so, don’t do it. Some people are unaware of how tired they are and begin to fall asleep behind the wheel.
Truck drivers do not sleep enough for the amount of work that they do, making them more likely to have accidents late at night or early in the morning. That is why it is best for all drivers to get adequate rest and be aware of their lethargies.
Truck driving is a popular industry and can become competitive. It is important for us to remember that the safety of everyone on the road is our top priority.
Can you imagine if all our truck drivers were tired, set the wrong temperature or crashed and never made it to their destinations? Not only is being alert important for driving but you also need to be attentive to temperature controls, especially with refrigerated freight.
The produce cannot be too cold or hot during the trip. Every product, especially produce, is different when it comes to temperature requirements. The products have a limited time to stay fresh in our trucks, which is why we must be vigilant.
If deliveries are late, the integrity of the produce could begin to deteriorate. With everything going on in the world today we need our produce delivered in the shape that it was picked up in. This is why truck drivers need to be alert and attentive when transporting produce.
Here are some tips on how to remain alert and attentive while driving:
- Ensure you are getting adequate sleep on a daily basis.
- Avoid alcohol and drugs.
- Avoid taking medications that may cause drowsiness.
- Be aware of warning signs to know when you should take a break. Warning signs can include frequent yawning, eyelids feeling heavy, blurred vision, inability to concentrate, feeling your head start to tilt or fall to one side.
Overall, its is important for all truck drivers to sleep well before long hauls, follow hours of service regulations, and recognize and acknowledge feelings of fatigue. If needed, find a rest stop or safe place to pull over and rest. The safety of truck drivers and other drivers on the road is a top priority.
Veronica Marshall began working for the Allen Lund Company in April of 2019, as a broker’s assistant for the Boston office. Marshall earned a degree in accounting from the University of Massachusetts Boston.
Up to $1 million for a solution to the 50,000 tons of pomegranate husks is being offered by The Wonderful Co. of Los Angeles. Each year this amount of husks are for the production of Pom Wonderful juice.
ReFED, a nonprofit working to end food loss and waste, is an advisor and managing partner for the challenge, according to a news release.
Dubbed the Wonderful Innovation Challenge, the program offers up to $1 million in funding and development resources for environmentally friendly solutions to the rind, pith and seeds left from the juicing process.
“The Wonderful Innovation Challenge was born out of our mission to continually push the boundaries of sustainability by embracing bold, innovative ideas,” Steve Swartz, vice president of strategy at The Wonderful Co., said in the release. “This competition will provide a select group of winners the resources they need to grow their business, make a positive impact, and help us fulfill our environmental mission.”
Registration is open through Dec. 7 to apply for the program, which has four review stages:
“The Wonderful Innovation Challenge was born out of our mission to continually push the boundaries of sustainability by embracing bold, innovative ideas,” Steve Swartz, vice president of strategy at The Wonderful Co., said in the release. “This competition will provide a select group of winners the resources they need to grow their business, make a positive impact, and help us fulfill our environmental mission.”
Registration is open through Dec. 7 to apply for the program, which has four review stages:
- Submission of a short application with a proposal;
- Qualified applicants will submit a detailed plan;
- Semi-finalists will participate in a virtual interview; and
- Finalists will pitch their solutions virtually to judges.
The finalist will compete for the $1 million award pool and request the amount needed for their proposal, according to the news release.
The competition will generate ideas for the company to help it solve other sustainability issues, according to the release.
“Innovation can play a critical role in driving efficiency and value, as well as in addressing environmental challenges,” Alexandria Coari, director of capital and innovation at ReFED, said in the release. “The Wonderful Innovation Challenge is a call for inventive solutions that can create value from this byproduct.”
The Wonderful Co. has invested more than $1 billion in environmental sustainability and climate change projects, including $400 million in water-efficient irrigation, cutting energy use and $60 million in solar energy projects.
A year ago, The Wonderful Co. owners Stewart and Lynda Resnick pledged $750 million to Caltech to support its environmental sustainability research.
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By Potatoes USA
Since public health restrictions for COVID-19 were put in place, potato sales at retail have been well above historical levels. This has continued throughout the summer, even as some of these restrictions have been relaxed. For the period from March 16 – September 6, 2020, sales of potatoes have been up every week, and the total value and volume are up 22 percent over the same period in 2019.
All categories, except prepared sides at the deli (many of which have been closed or refigured), have shown increases but the largest gains were for canned, dehydrated, and frozen potatoes. Fresh potatoes have also fared very well, with a 24 percent increase in volume and a 33 percent increase in value. Potato chips, the largest category at retail, has also performed well; up 8 percent in volume and 15 percent in value.
The greater increases in the dollar sales over volume reflects significant increases in the price per pound through the summer. The largest increases in price per pound were refrigerated and fresh potatoes, up 7.6 percent and 7 percent compared to the same timeframe in 2019.