Archive For The “News” Category
Retailers are asking shipping companies to push back deliveries, which may drag global container shipments down as much as 30 percent in the next few months. The reason is warehouses are filling with goods ranging from refrigerators to washing machines.
The International Chamber of Shipping reports shipments have fallen an estimated 15 percent so far this year amid the coronavirus pandemic.
Second-quarter declines, compared with a year ago, will depend on how much governments reopen economies. Inventories of goods such as apparel, textiles, white goods, are full, and receivers of these goods asking shipping lines whether they can store these goods for a period of time or slow their ships down or basically delay taking delivery.
The slump is a setback for shipping giants such as Cosco Shipping Holdings Co. and Ocean Network Express Holdings Ltd., which started the year strong as healthy trade volumes allowed the industry to boost rates. That optimism has now evaporated as the virus outbreak is forcing shoppers to stay home, crimping retail sales in the biggest consumer markets.
Ocean Network Express notes forward bookings for shipments from Asia to North America and Europe have slowed for April and into May. Shipments of products from North and Latin America, Europe and Oceania to Asia are still strong. Ocean Network Express is Japan’s largest container-shipping operator.
In addition to lower volumes, the industry has been hit by restrictions aimed at containing the outbreak. Ensuring that seafarers can board and transfer onto ships amid port curbs and canceled flights remains a major challenge.
Fresh produce retail sales were up 22 percent for the week ending April 26, compared to the same time a year ago.
The market research company IRI reports demand for fresh produce is here to stay, at least for the foreseeable future. During the last week of April fresh vegetable sales were up 30.4 percent, while fresh fruit sales jumped 16.2 percent.
The numbers represent a substantial jump over the previous week, which was competing with the week of Easter in 2019. It also means the highest figures since the end of the demand peak in the middle of March.
A report by 210 Analytics, IRI and the Produce Marketing Association also points out sales of frozen and shelf-stable produce remain highly elevated, being up 57.6 percent and 46.3 percent respectively.
IRI reports the numbers very clearly show higher everyday demand is being driven by in-home consumption and it is here to stay for the foreseeable future.
As the market is adjusting to the new era of COVID-19, some lingering issues remain with the supply chain. Then there is the totally new shopping arena affecting everything from the demand for products to having to find new ways to drive impulse buying.
The top three growth items in the U.S. in terms of absolute dollar gains over the same week in 2019 were berries (+$35 million), lettuce (+$29 million) and potatoes, (+$24 million).
However, at the category level, significant differences continue existing between dollars and volume, driven by deflationary pressure. With fruit, there were big decreases in price per volume for items such as avocados (-16.1 percent), grapes (-12.5 percent) and tangelos (-9.9 percent) the week ending April 26.
Concerning vegetables, onions had a strong 37.3 percent increase in dollars. However volume sales were up 55.1 percent, with the retail price per volume down more than 11 percent.
Other produce items with large decreases in the price per volume were celery (-24.8 percent), peppers (-12.6 percent) and Brussels sprouts (-6.6 percent).
There was an opposite affect for other items, especially potatoes, with dollar sales still going strong, at +50.8 percent, and volume up 38.7 percent. Retail potato prices were 8.8 percent higher versus the same week a year ago.
As for fruit, the top 10 items in terms of dollar sales saw flat sales for two items (grapes and melons) but double-digit increases for seven.
Oranges continue a hot streak with another terrific 71 percent gain versus year ago. Highlighting nutritional benefits, particularly Vitamin C, in many other fruits and vegetables may benefit sales in weeks to come.
During the uncertainty caused by the COVID-19 Pandemic, the food supply chain has been called upon to create stability for the country. As the largest agricultural employer in the country, California strawberry farms were among the first to implement CDC guidance. Strawberry farms are committed to protecting farm worker health, maintaining farm jobs and harvesting every box for American consumers.
For consumers, strawberries have a special role, as one of the top two fruits designated as high in vitamin C. During the spring (April 15-June 1) strawberries are the second most consumed, high in vitamin C, fresh fruit, after oranges.
Now, strawberry supplies are threatened by the COVID-19 peak in April and downward trend into May – which has already brought food service to a standstill and stores to regulate consumer access.
Perishable items will be most affected by the COVID-19 peak, especially crops such as berries that will be in full production during the same period of April through May. Blueberry farms in Florida, Georgia, and California, as well as California strawberry farms project more than 30% of the crop will be disrupted – threatening the loss of thousands of jobs and hundreds of millions of dollars. For comparison, fresh strawberry retail sales were over $953 million during the 13 weeks ending June 16, 2019.
Our options are few: leave the crop to rot in the field or pick every box and have faith in our supply chain partners to get this important source of vitamins and nutrients into the hands of consumers, through supermarkets, food banks, online, and every other channel available.
Our choice is clear – harvest every box. We have asked the US Department of Agriculture for assistance and call upon every link in the supply chain to restock shelves and help us preserve over 70,000 jobs related to delivering healthy, nutritious strawberries to consumers, and for all to stay safe.
Sincerely,
Hector Gutierrez, Farmer & Chairman
Rick Tomlinson, President
WENATCHEE, WA: Furthering its dedication to being a leading fruit grower, packer and shipper in Washington State, CMI Orchards, LLC, is pleased to announce a new strategic partnership with Yakima Fruit and Cold Storage Co.
This partnership will significantly expand CMI Orchards’ manifest by adding over 3 million boxes of exceptional quality apples to CMI’s diverse sales portfolio. CMI President Bob Mast shared, “With this partnership comes tremendous opportunity to increase our daily shipping capacity with the expansion of packing facilities and high-density acreage. This added volume will enable significant growth for both companies and provides a robust portfolio to carry CMI and Yakima Fruit into the future.”
“This is all a part of a long-range plan for strategic growth to better serve our growers as well as our expanding customer base,” said Mast. “The design began to unfold back in 2018 when CMI Orchards added Pine Canyon Growers as a grower, packer and shipper. Pine Canyon Growers has been a fantastic addition to our manifest and now our progress has enabled us to team up with another great partner in Yakima Fruit.”
“Yakima Fruit has a highly desirable manifest that we are excited to add to our offerings, including exceptional early Honeycrisp among other key varieties,” said Mast. According to Mast, the partnership was executed on March 20, 2020, and has immediately added additional core varieties to CMI’s selling power. Varieties include Honeycrisp, Granny Smith, Cosmic Crisp®, Red Delicious, Pink Lady®, Gala, Fuji and Golden Delicious apples.
Mike Wilcox, President of Yakima Fruit, is excited that the partnership has been completed and said his company had considered many sales and marketing teams to team up with. “At the end of the day, there was no better choice than CMI,” Wilcox said. “CMI has proven time and time again they are innovation leaders, paving the way with many of the top-selling branded apple varieties in the U.S.A.” Wilcox added that he has always had tremendous respect for the CMI group, and the points of difference that CMI brings to the table to help retailers drive sales. “Having a strong core manifest is equally important, which is the value that Yakima Fruit adds to this partnership, as you have to be able to take care of customers’ everyday needs as well as bring something new and exciting to the table to keep apples exciting,” he said.
Mast reports that in addition to high production orchards, the Yakima Fruit partnership brings an opportunity to strategize on future plantings with available unplanted acreage to best meet the needs of CMI’s retailer and consumer preferences for both apples and cherries. “CMI is thrilled with the opportunity this blank slate provides and is eager to look into early cherry varieties, licensed branded apples and cherries, as well as high flavor, high quality core apple varietals.”
“This partnership will greatly increase CMI’s ability to service our customer base with fruit on a year- round basis. We are excited to have additional premium fruit to offer our customers and to continue to supply the highest quality fruit that we can, serving the needs of the market,” said Mast. “CMI is already known within the industry as being an innovator and leader for new branded items and organics, and this partnership will enable us to continue to pioneer advancements in these areas while expanding our fruit supply, meeting the needs of all of our customers. “We are very proud to welcome the Yakima Fruit team to the CMI Orchards Family and look forward to a long-lasting partnership,” Mast said.
CMI Orchards, founded in 1989, is the sales and marketing arm of McDougall and Sons, Columbia Fruit Packers, Double Diamond Fruit Company, Highland Fruit Company and Pine Canyon Growers. With 9 warehouses locations throughout the State of Washington, this new partnership will add one additional packing shed, greatly increasing CMI’s production capacity and efficiencies.
Yakima Fruit was incorporated in 1949 by the Cohodas Brothers Company of Michigan, a wholesale produce distribution company with branches throughout Michigan and Wisconsin. Following World War II service with the US Army Corps of Engineers, Herbert L. Frank relocated to Yakima, Washington to assume management of the recently acquired packing and storage facility. Subsequently, Yakima Fruit was managed by Lawrence C. Frank and then Michael C. Wilcox, a third-generation grower with sales and marketing experience. In April 2018, a majority interest in Yakima Fruit was acquired by Pioneer Partners LLP, an investment subsidiary of the Hancock Natural Resources Group.
By Tracy Lewn
Vice President of Sales and Operations
Allen Lund Company
We are living in unprecedented times. It is probably safe to say that in our lifetime, none of us have been faced with a global challenge the likes of COVID-19. It is at times overwhelming – both emotionally and practically speaking. For the better part of nearly eight weeks now, most of us have been inundated with a barrage of mostly negative information and data, coming at us from every angle and every source. In the context of our essential industry, that of arranging and providing transportation and logistics for all kinds of businesses, the reports of impact have varied from doom and gloom, to mixed, to positive.
I am thrilled to report that the Allen Lund Company is bucking the trend of a downturn during this economic anomaly, as our company is realizing some very positive impacts. Where it is reported that others are losing market share, losing customers, cutting their workforce or otherwise struggling, we have consistently grown over the past two months and in fact, are currently looking to hire and looking to expand. We have pivoted, when, where, and how we needed to pivot to meet our customer’s new and unique challenges.
We figured out very quickly how to make working remotely a seamless move. So much so, that even when presented with this particular challenge of having as many as two-thirds of our workforce switch to working from home, our volume has grown tremendously during this time. We are privileged to have such a strong foothold and strong reputation in the perishable and refrigerated transportation segment and with over 44 years in business, our company has a wealth of experience and expertise both at the back of the house as well as the front. We are focused, we are flourishing and we are fortunate.
It is an interesting position to write from; one whereby what we are hearing and reading about mostly contradicts what we are feeling and seeing within our organization. We are facing the daily challenges COVID-19 is bringing to our marketplace, and we are meeting them head-on and with great success.
I’d be remiss if I didn’t tip my hat to our highly reliable and dedicated carrier network, many of whom have been with us for nearly all of our 44 years and who help make our success possible. We are always grateful for these relationships, but even more so these days. It is very rewarding and humbling to know how much good we are doing to help our country’s supply chain and food supply keep moving, in unison with these great carriers of ours.
We wish all of our colleagues, associates, customers, and carriers, health, and safety as we endure this unthinkable situation together. Please let us know how we can help you.
****
Tracey Lewin is VP of Sales and Operations, and has been with the Allen Lund Company 31 years. Lewin started with the Allen Lund Company’s accounting department and in 1991 transferred to the Los Angeles refrigerated division; was promoted to assistant manager in 1997, and promoted to manager in 2011. In 2019, she was promoted to her current position.
By Bolthouse Farms
BAKERSFIELD, Calif. — Building on its 100 plus years of carrot farming heritage, Bolthouse Farms announced it has entered into an agreement to acquire Arizona-based Rousseau Farming Company’s carrot operations. This move, part of Bolthouse Farms long-term growth plans, further demonstrates its vision of Plants Powering People and its mission to feed and nourish people.
“This acquisition will help us scale to serve our customers better by bringing more fresh and healthy, locally grown carrots to them in the Southwest,” said Bolthouse Farms CEO Jeff Dunn. “We’ve had a longstanding relationship with the Rousseau family and are committed to partnering with companies that share our core values of sustainability, product quality and customer service. We look forward to continuing to grow our businesses and support the industry together.”
From a strategic standpoint, the acquisition will allow Bolthouse Farms to focus on providing customers more locally grown carrots as part of their regional strategy and “four corners” growing approach – Washington, Georgia, Eastern Canada and now Arizona, in addition to California. It will also bolster Bolthouse Farms’ plans for innovation in the carrot space. While the Company is already equipped when it comes to automation, processing and packing advancements, the Company plans to refine the product, introduce new varieties and optimize the growth cycle and supply chain.
Bolthouse Farms and Rousseau Farming Company both share rich histories in farming. The Bolthouse family started carrot farming in 1915 in Grant, Michigan and by 1950 established itself as a leading supplier in the Midwest—today, Bolthouse Farms is one of the top carrot producers in the U.S. with a reputation for flavor and quality. Similarly, the Rousseau family has been putting fresh produce on tables since 1892 and remains committed to providing consumers with locally grown produce more than 120 years later.
Will Rousseau, owner of Rousseau Farming Company, and a fourth generation Salt River Valley farmer concluded, “My family has focused on providing fresh produce for the American table for more than 125 years, and I believe partnerships like this are what will help us continue to evolve and certainly see us through another 100 years.”
Rousseau Farming Company’s name for carrot operations is not expected to change as a result of the acquisition. Additionally, Rousseau Farming Company will retain ownership of all other produce operations. The terms of the deal, which has been in development for the past few months, are not disclosed, as both companies are privately held.
About Bolthouse Farms
For more than a century, Bolthouse Farms has been known as the innovation leader in growing and distributing carrots and high-quality, innovative branded products. Employing more than 2,200 people and headquartered in Bakersfield in California’s fertile San Joaquin Valley, Bolthouse Farms is one of the largest carrot growers and distributors in the U.S. Guided by its vision – Plants Powering People – the Company produces and sells super-premium juices, smoothies, café beverages, protein shakes, functional beverages and premium refrigerated dressings, all under the Bolthouse Farms® brand name. Visit Bolthouse Farms or follow us on Instagram, Facebook and Twitter.
By Ted Kreis – Northern Plains Potato Growers Association, Communications
For the first time all year, fresh potato shipments from the Red River Valley are meeting or exceeding last year’s numbers. Shipments had been running at about two-thirds of last year’s pace until the pandemic broke and consumers abandoned restaurants for eating at home.
Because of large crop losses last fall, prices for red and yellow potatoes from the valley have been higher all year which has slowed shipments to extend the shipping season accordingly. But in mid-March fresh shipments from the Red River Valley exceeded last year for the first time all season. This past week shipments were up nearly 20 percent compared to last year, all this as supplies dwindle in the Red River Valley.
Meanwhile, there has been an opposite effect on the frozen potato market which is highly dependent on foodservice business, which includes restaurants. With restaurant business mostly disappearing with the exception of drive-thru business, stockpiles of frozen fries is backing up causing huge cuts in 2020 contracted acres and much uncertainty going forward. This could also have a trickledown effect on the fresh market this fall if russet supplies in the Northwest are diverted to fresh.
In the U.S., processors are cutting, eliminating or delaying contracts but its not just happening here, this is a worldwide problem. In Western Europe, several potato processing units are shutting down totally or partially. Throughout the European northwest, the industry is calling for a reduction in planting areas as it now expects a huge surplus of fries in storage. One estimate is that the Dutch potato sector has 1 million metric tons of surplus processing potatoes at the current time. In France, an estimated 500,000 tons of potatoes cannot be processed.
We have never seen anything happen to the entire world like what is happening now so there is no playbook or roadmap to economic recovery. However one thing is certain, the world will always have to be fed, and potatoes will help lead the way. We just don’t know how that will look.
(This article appeared in Potato Bytes, an online publication by the NPPGA)
A global avocado network with a partnership to market South African fruit to Europe, China and other Asian markets, including China and eventually the U.S., is underway by Mission Produce Inc. of Oxnard, CA.
Mission Produce is partnering with South African exporter Core Fruit and ZZ2, which will “offer its production, packing and ecosystem creation know-how together with its avocado technical knowledge, resource base, local networks, nursery trees, packing facilities and it’s association with Criterion Africa Partners who have access to significant land holdings,” according to a news release from Mission Produce.
The partnership, known as Mission South Africa, plans to establish regional relationships with growers.
“The Mission Produce-ZZ2 relationship is a strong combination and demonstrates our commitment to expanding globally and leading the avocado industry,” Mission Produce President and CEO Steve Barnard said in the release.
“Southern Africa is an ideal source because of the region’s location, fruit quality and access to Europe and Asia,” Barnard said in the release.
The partnership is expected to add value to growers and assist in developing the avocado production potential of the region, according to the release, with a rapid expansion of Mission’s “vertical integration model in an advantageous supply window,” accord to the release.
This appeared in April 2020 10-4 Magazine. Who would think we would end up like this… There is connection between us being lazy and blind and the current state of affair….
—–
We have been told that manufacturing is out of style. We have been told we can import produce from abroad. We have been told our trucks are bad for the air we breathe. We have been told diesel fumes will bring the end of the human race. We have been told that professional drivers, with their blood-shot eyes, are misfits and undesirables. We have been told automated trucks are the only way to go. We have been told all these lies. The truth is this – if it weren’t for this tired and humiliated truck driver (and so many others) that people flip the bird at for staying in the left lane just a little longer so he doesn’t cut off someone’s mother or wife messaging about empty shelves, we would be living in apocalyptic hell already now. But we are not – yet – because his old school (banned) diesel engine relentlessly pulls that cool box back and forth across the country, bringing the Midwest fresh produce from California and then meat back in a 28-hour straight shot. And, that dedicated driver is not even asking for a raise on the rate (even though all truckers deserve it) – he is just asking you to stay positive and strong and watch out for your elderly neighbors. We will be okay if we stick together and do the right thing. We will git ‘er dun because THAT is the Spirit of the American Trucker! God Bless.”
MIAMI, FLA. – Crystal Valley Foods (Crystal Valley) has announced that it has partnered with Superior Berries and will begin shipping Georgia-grown blueberries under both the Crystal Valley and Superior Berries labels beginning this season. The first shipments will begin in April and will be available through the end of May.
Superior Berries, whose parent company is Superior Pine Products, started producing berries in 2003. Today the company has over 200 acres in Fargo, Georgia with plans to expand an estimated 100 acres in the next year. They grow and hand pick primarily Southern Highbush blueberries including Meadowlark, Patricia, Kee Crisp, Indigo Crisp, Farthing and Legacy varieties.
Crystal Valley markets blueberries year-round.
About Crystal Valley Foods
Founded in 1994, Crystal Valley Foods is a leading grower and importer of top quality produce from Central and South America and the United States. With offices and facilities in Miami and Los Angeles, the company is one of the largest importers and distributors of asparagus in the USA. Its extensive product line also includes baby vegetables, peas, beans, berries, baby lettuces, peppers and other specialty crops.