Archive For The “News” Category

Ayco Farms and Fisher Ranch Join Forces to Ship Melons Year-Round

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Ayco Farms and Fisher Ranch, prominent players in the seasonal melon industry, have recently announced a significant collaboration. The alliance is aimed at supplying a year-round assortment of melons, including cantaloupe, honeydew, along with various mixed melons. Targeting retail, food service, and fresh-cut segments, this alliance guarantees their clientele a steady provision of premium-quality melons.

Ayco, with a home office in Pompano Beach, FL, is a multinational, premier supplier of various offshore fruits and vegetables, including cantaloupes, watermelons, honeydews, pineapples, and asparagus, operates extensively across Central and South America and Mexico. Fisher Ranch of Blythe, CA supplies melons throughout North America and is renowned for producing sweet, flavorful vine-ripe melons. Fisher Ranch operates in Arizona and California, bringing domestic operational support and more than 6 decades of expertise and dedication to the industry.

Bart Fisher, principal shareholder of Fisher Ranch, highlighted the synergistic potential of this initiative with Ayco. “This alliance is a natural progression for Fisher and our growth strategy. We bring a combined legacy of quality, innovation, and customer-focused operations. This new venture is more than just a business arrangement; it’s a commitment to excellence.”

“The creation of this program with Fisher Ranch marks a significant milestone for Ayco,” said Avi Nir, CEO and President of Ayco. “It represents our promise to provide our customers with top-quality melons all year round. We’re excited about the opportunities for this alliance and the benefits it will offer our customers.”

Both Ayco and Fisher Ranch are renowned for their stringent control over every stage of their operations, from cultivation and harvesting to packaging, quality control, and distribution. This meticulous attention to detail ensures that only the finest melons reach their customers.

Ayco will transition to Fisher Ranch with melon production in AZ and California beginning from late May and continuing through October. The collaboration will leverage Guatemalan melons from November to June, guaranteeing a year-round supply.

For additional information, please contact Fisher Ranch at www.fisherranch.com and Ayco Farms at www.aycofarms.com.

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Dollar General Passes 5,000 Stores Offering Fresh Produce

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GOODLETTSVILLE, TN – Dollar General has exceeded its latest milestone, now offering fresh produce options in more than 5,000 stores across the country.

The retailer now has more individual points of produce distribution than any other U.S. mass retailer or grocer. DG stores that carry produce provide consumers with a curated assortment of fresh fruits and vegetables, including tomatoes, onions, apples, strawberries, potatoes, sweet potatoes, lemons, limes, salad mixes, and more.

First announced in the Company’s Q4 2022 earnings last March, DG has continued to make strides toward reaching this milestone and now, more than 5,000 DG stores also carry the top 20 items typically sold in traditional grocery stores which cover approximately 80 percent of the produce categories most grocery stores traditionally provide.

“We are constantly looking for ways to better serve our customers and one of our top priorities is to ensure the communities we call home have access to fresh, affordable, and convenient food options,” said Emily Taylor, executive vice president and chief merchandising officer at Dollar General. “We have exceeded our goal of having 5,000 total stores with fresh produce by January 2024. We’re proud to leverage our footprint to meet the need for healthy food options in more communities than any other retailer across the U.S.”

The Company has also recently invested in a partnership with Shelf Engine, an AI company providing retailers with technology to improve perishable food forecasting and ordering.

The partnership will evolve Dollar General’s process to optimize in-stock produce levels, helping automate the ordering process while providing customers with the freshest food possible. As this tool continues to roll out, it will support the Company on its meaningful produce growth journey while improving operational efficiency.

Approximately 80 percent of Dollar General stores serve communities of 20,000 or fewer people, and residents in these communities often rely on the retailer for their everyday essentials including components of a nutritious meal. Every Dollar General provides customers with healthy food options such as milk, eggs, bread, cheese, frozen and canned vegetables, grains, lean proteins and more, including Dollar General’s exclusive Good & Smart® private brand.

As part of the Company’s commitment to provide convenient and affordable access to foods, in 2023 it announced its “Food First” initiative, which includes the customer feedback-driven expansion of its private label brand, Clover Valley, welcoming over 100 new items to shelves including a wide range of entrees, sides, sauces, condiments, snacks and more at affordable price points.

Additionally, Dollar General partners with local and national nonprofit organizations, including food banks, as part of its on-going efforts to help alleviate food insecurity. DG’s operational partnership with Feeding America, the nation’s largest hunger-relief organization, provides in-kind food donations from stores and distribution centers across the country with a goal to contribute up to 20 million meals each year. To date, Dollar General has donated more than 23 million meals and over $3 million to Feeding America.

Explore local stories of how Dollar General has brought fresh produce to underserved communities here. To learn more about Dollar General’s produce and healthy food options, including recipes using ingredients sourced from DG stores, visit https://www.dollargeneral.com/c/food-beverage. Find a store with produce near you by filtering for fresh produce on the online store locator.

About Dollar General Corporation

Dollar General Corporation (NYSE: DG) is proud to serve as America’s neighborhood general store. Founded in 1939, Dollar General lives its mission of Serving Others every day by providing access to affordable products and services for its customers, career opportunities for its employees, and literacy and education support for its hometown communities. As of November 3, 2023, the company’s 19,726 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico provide everyday essentials including food, health and wellness products, cleaning and laundry supplies, self-care and beauty items, and seasonal décor from our high-quality private brands alongside many of the world’s most trusted brands such as Coca Cola, PepsiCo/Frito-Lay, General Mills, Hershey, J.M. Smucker, Kraft, Mars, Nestlé, Procter & Gamble and Unilever. Learn more at DollarGeneral.com

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Potatoes are the 2nd Largest Specialty Crop Grown in Michigan

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The Michigan Potato Industry Commission in a new report and press release shows the economic benefits the Michigan potato industry has on the state’s economy.

The commission notes the state’s potato industry contributes more than $2.5 billion to the state’s gross domestic product and supports 21,700 jobs in the state, generating around $832 million in wages.

“In 2022 alone, this contribution, which stems from both direct and indirect economic activity, includes nearly $1.5 billion in direct economic activity resulting from growing, processing wholesaling and retailing potatoes and potato products,” Ryan Norton, chair of the Michigan Potato Industry Commission and farm manager at Walther Farms in Three Rivers MI, said. “It also factors an additional $1 billion in indirect activity from the food service industry and through the household consumption of Michigan-grown potatoes.”

The commission said the study found potatoes are the second-largest specialty crop grown in the state, adding that Michigan produces about 1.9 billion pounds of potatoes for seed, fresh, frozen, dehydrated and processing industries. More than 70% of potatoes grown in Michigan go to the chip industry.

Apples are the leading specialty crop grown in the state.

The study says 1 in 4 bags of potato chips in the U.S. contains Michigan-grown potatoes.

“The sales of these potatoes generated more than $246 million [in 2022] alone. This puts Michigan as the eighth-largest state in the nation in terms of potato production and sixth in terms of sales,” said Phil Gusmano, vice president of purchasing of Detroit-based Better Made Snack Foods and commissioner on the Michigan Potato Industry Commission.

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Dragon Fruit Eyed as Part of U.S. Exotic Fruit Growth

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At Freshway Produce, General Manager Ricardo Roggiero has been observing the growth of exotic fruit consumption in the U.S. and Canadian markets. Among the products most poised for growth, he says, is pitaya, known by many U.S. consumers as dragon fruit.

The fruit comes with an eye-catching red or yellow exterior.

“The most popular is the red variety. It is a little more tasteless, but because of its characteristics, it is widely consumed,” Roggiero said. “There are larger displays [of them], which increases consumption.”

He said the price of pitaya has become more accessible for North American consumers, allowing more people to include the fruit in their diets. 

“Projections show that in the United States, exotic fruit consumption could grow about 5 to 10% per year,” he said.

Pitaya stands out among the growth projections. He forecast 50% growth in pitaya exports to the U.S. in coming years, followed by more moderate growth.

“In 2023, something very interesting happened with pitaya, with a TikTok campaign by certain influencers who promoted yellow pitaya. It had a very strong impact on consumption,” he said. “I believe that the U.S. market can consume all the hectares we have cultivated in Ecuador, but it will take some time as the consumer gets familiarized with the product.”

Something unique about Ecuadorian pitaya is that it is not irradiated in the United States.

 “That is a big difference from products that come from Vietnam, Asia, and Mexico,” he said. “The yellow pitaya has the seal of origin that it is an endemic fruit of Ecuador, in particular the Palora variety, which is larger and has excellent brix degrees between 22 to 24 degrees.”

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Mexican Berries and Avocados Led Growth in U.S. Imports

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Increases in U.S. imports of Mexican produce commodities have been led by berries and avocados in the last decade, USDA trade statistics reveal.

From 2014 to 2023, U.S. imports of Mexican berries (excluding strawberries) rose from $648 million in 2014 to 42.64 billion in 2023, a gain of 307%.

For Mexican avocados, the USDA reported U.S. imports rose 215% over the last decade, from $1.27 billion in 2014 to $2.67 billion in 2023.

U.S. imports of Mexican strawberries rose 181% over the past decade, climbing from $480 million in 2014 to $1.35 billion in 2023.

U.S. imports of fresh broccoli and cauliflower jumped 192% in the last decade, from $157 million in 2014 to $459 million in 2023.

Value of 2023 U.S. imports of Mexican produce commodities, with percentage compared with 2014:

  • Onions — $410 million, up 69%.
  • Melons — $450 million, up 35%.
  • Tomatoes — $2.75 billion, up 68%.
  • Peppers — $1.56 billion, up 68%.
  • Citrus — $853.5 million, 139%.
  • Grapes — $832 million, up 144%.
  • Cucumbers — $800.8 million, up 76%.
  • Lettuce — $534.4 million, up 206%.
  • Mangoes — $475.5 million, up 81%.
  • Squash — $418 million, up 38%.
  • Asparagus — $359.9 million, up 50%.
  • Bananas — $207.9 million, 75%.
  • Beans — $130.7 million, 117%.
  • Celery — $89.4 million, up 352%.
  • Eggplant — $81.5 million, up 79%.
  • Carrots — $79.8 million, up 174%.
  • Cabbage — $62.5 million, up 392%.
  • Peas — $47 million, up 38%.
  • Pineapples — $44.6 million, up 102%.
  • Garlic — $40.2 million, up 340%.
  • Radishes — $30.2 million, up 87%.

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USDA Develops Cold-Hardiness Kiwifruit for Immediate Release to Public

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By USDA ARS

Kiwifruit and their tangy green flesh are routinely purchased and devoured throughout the year by people across the nation. This is no surprise. Kiwis are high in Vitamin C, dietary fiber, and potassium. The subtropical fruit is also a favorite of many southern U.S. producers since the delicious fruit is traditionally grown in warmer climates. California produces the vast majority of kiwis that are sold in our local grocery stores, but due to recent research advancements from U.S. Department of Agriculture scientists, this may no longer be the case.

This was not a snap decision. The research actually began in 1995 when scientists from the Agricultural Research Service’s Appalachian Fruit Research Service (AFRS) planted second-generation seedlings that originated in Rome, Italy. Only two vines survived the cold winter temperatures between 1995 and 2015, with a record low temperature during that period of –5.8 F. Of those two vines, ‘Tango’ (female) and ‘Hombre’ (male) were planted and evaluated in the AFRS’ orchards before a new crop proved that these particular cultivars could grow and thrive in traditional Mid-Atlantic and Northeastern winter climates.

In a recently published study, researchers noted that both vines grew vigorously, and received little pruning before bearing fruit. There was also no need for supplemental irrigation, fertilizer, pesticides, or a warm climate for growth.

“This cultivar isn’t currently found in the grocery store,” said Research Biologist Scientist Chris Dardick. “The flesh and texture are very similar to the kiwifruit that people already enjoy and so is the flavor. It’s easy to grow, extremely pest and disease resistant, and readily available for use by producers and nurseries in colder climate conditions.”

Tango’s fruit yields high quality in terms of size and soluble solids and are comparable to the commercial A. deliciosa cultivar Hayward.  It can also remain in cold storage for extended periods of time.

The male pollinizer ‘Hombre’ is not patented and can be publicly made available upon request. The female kiwi ‘Tango’ is patented by the USDA-ARS and can be distributed to nurseries or producers once they obtain a licensing agreement. Both plants (‘Hombre’ and ‘Tango’) are essential to produce the kiwifruit. Limited quantities of budwood and/or plants from ‘Tango’ and ‘Hombre’ are also available upon request for evaluation. For more information, please contact AFRS@usda.gov.The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in U.S. agricultural research results in $20 of economic impact.

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Federal Trade Commission Sues to Block Kroger-Albertsons Merger

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The U.S. Federal Trade Commission (FTC), charged with promoting consumer rights, sued to block what could be the largest supermarket merger in U.S. history. A merger of Kroger and Albertsons, the FTC said, would lead to higher prices, store closures, and job losses.

The $25-billion deal, announced in November 2022, has seen opposition from the United Food and Commercial Workers Union, as well as multiple senators and attorneys general. The FTC suit is one of the merger’s greatest challenges so far.

“Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” said Henry Liu, director of the FTC’s Bureau of Competition, in a public statement. 

“Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.” 

As part of the merger plans, the companies intend to divest 413 stores, eight distribution centers, and five private label brands to C&S Wholesale Grocers. The FTC suit has deemed the measures “inadequate”. 

“The combined Kroger and Albertsons would have more leverage to impose subpar terms on union grocery workers that slow improvements to wages, worsen benefits, and potentially degrade working conditions,” an FTC statement said.

Kroger responded Monday, stating it would challenge the suit in court and stand behind the merger. Kroger said it would not negatively impact grocery competition and would result in lower prices for consumers and more investments in employee wages. 

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The U.S. and U.K. are the Primary Export Markets for Peruvian Mandarin

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During 2023, Peruvian mandarin exports totaled 33,878,377 kilos for a FOB value of US$35,847,910. The figures are relatively similar to the 33,563,070 kilos exported in all of 2022 for US$ 37,235,491, Agraria.pe reports.

According to Agrodata’s report, the United Kingdom was the main destination for these shipments in 2023, with purchases totaling US$ 10,186,000.

It was followed by the United States with US$ 7,286,000, Canada with US$ 5,706,000, the Netherlands with US$ 5,361,000, Japan with US$ 2,873,000, Ireland with US$ 1,316,000, and Spain with US$ 427,000.

Among the main exporting companies were Procesadora Laran SAC with sales of US$ 11,720,939, Consorcio de Productores de Fruta SA with US$ 10,583,378, Procesadora Torre Blanca with US$ 2,027,968, Sterling Perú SAC with US$ 1,751,868, Corporación Frutícola de Chincha SAC with US$ 1,264,521 and Agrícola Las Marías SAC with US$ 1,143,403, among others.

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U.S. Online Grocery Sales Experience Another Drop

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A decline in the frequency of online grocery orders drove a 1.2% year-over-year drop in total online sales to $95.8 billion in the U.S. online grocery market in 2023, according to the annual results of the Brick Meets Click/Mercatus Grocery Shopper Survey released Thursday, Supermarket News reports. 

It’s the second year in a row that the order frequency of active monthly users (MAUs) declined, according to the report, which surveyed 21,000 shoppers in the U.S. That year-over-year contraction in online orders came in at 6% compared to the prior year, surpassing the 4% year-over-year decline in 2022, the report noted. 

The decline in orders was exacerbated by a 300 basis-point increase to 34% in the number of MAUs who said they made only one online grocery purchase per month in 2023. 

Despite the drop in online orders for the year, the base of MAUs rose 2% year over year. Shoppers appear to have largely settled on a receiving method with 70% saying they exclusively relied on either pickup, delivery, or ship-to-home, up 172 basis points from the previous year. 

Pickup held steady as the most popular way of receiving online orders, growing its share of online sales by a modest 56 basis points to end the year at 46%. The report added that the expanded availability of delivery methods due to increased competition did not appear to help grow the receiving method, which experienced a sales decline of 0.9% for the year and captured 37% of the online sales market. Meanwhile, the ship-to-home method dropped 66 basis points to make up 17% of the market for the year. 

“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click, in a statement. “Despite the challenges, pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotions that aided delivery in 2023.” 

Mass merchandisers and hard discount grocers expanded their shares of the online grocery market in 2023 by 460 basis points to end the year with 45% due to strong MAU growth. The growth came at the expense of the supermarket format, which dropped 390 basis points to 29% for the year, a result of declining MAUs and order frequency. 

Shoppers increasingly chose to place their online purchases through both mass merchandise and supermarket formats for the year as the cross-shopping rate increased by 150 basis points from the previous year. Nearly a third (30%) of shoppers purchased online groceries from both in the same month over the year, the report noted. 

The repeat intent rate – the share of MAUs who are very likely to use the same service again – for the pickup and delivery methods of online purchases declined in 2023 by 63 basis points to 61%, a trend driven solely by a decline in repeat intent for grocery services, which fell 311 basis points to 54%. That’s compared to an increase in repeat intent for mass merchandise shoppers, which grew by 48 basis points to 66%. 

“As Walmart grabs market share through its price leadership and omnichannel strategies, regional grocers find themselves in a precarious position. To remain competitive, they must intensify their efforts in improving customer engagement, offering tailored personalization, and building loyalty. This strategic shift is not just about weathering the storm of price inflation and intense competition, but about thriving in it,” said Mark Fairhurst, global chief growth officer at Mercatus, in a statement. “By providing a shopping experience that is both seamless and highly personalized, grocery retailers can retain their existing customer base and gradually attract a wider audience.” 

Total online grocery spending declined 18 basis points to capture 12.5% of the market for the year. When considering just the pickup and delivery methods – most stores do not offer ship-to-home as a delivery method – the decline was a mere 6 basis points year over year and made up 10.4% of all grocery spending in 2023. 

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International Logistics in the Red Sea

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By Scott Fontes ALC Orlando

International logistics plays a crucial role in facilitating global trade and commerce by connecting businesses across continents. The Red Sea, a key maritime route, is currently experiencing significant disruptions that have led to impacts on international logistics. The ongoing geopolitical tensions in the region, coupled with environmental challenges, are reshaping the landscape of maritime transportation. Shipping times and costs have increased, adding significant delays and costs. Oil and gas prices have jumped following news of attacks, and shipping insurance premiums have nearly doubled for some carriers. Even if attacks stopped today, the effects will take a significant time to resolve.

The Red Sea has become a focal point for tensions and conflicts, influencing the safety and efficiency of shipping lanes. By January 2024, only 200,000 standard containers were passing through the waterway per day, compared with around 450,000 in December 2022. Strategic chokepoints, such as the Bab-el-Mandeb and the Suez Canal, are vital passages for vessels navigating between the Mediterranean and the Indian Ocean. Political instability in the surrounding areas can lead to heightened security concerns, affecting the smooth flow of goods. According to the AP, “The governments of Australia, Bahrain, Canada, Denmark, Germany, Netherlands, New Zealand, and South Korea joined the U.S. and U.K. in issuing a statement saying that while the aim is to de-escalate tensions and restore stability in the Red Sea, the allies won’t hesitate to defend lives and protect commerce in the critical waterway.” Instead of sailing through the Red Sea, ships traveling between Asia and Europe are now being re-routed around Africa and the Cape of Good Hope. Stakeholders in international logistics are closely monitoring these developments to assess potential disruptions to supply chains.

Furthermore, environmental factors like extreme temperatures, strong currents, occasional coral reefs, and weather events pose challenges to maritime operations in the Red Sea. Rising sea levels and changing weather patterns can impact navigation, port infrastructure, and overall logistics efficiency. Companies engaged in international trade must adapt to these environmental shifts, incorporating resilience measures into their logistical strategies.

As the Red Sea continues to play a pivotal role in global trade routes, a comprehensive understanding of both geopolitical and environmental dynamics is essential for the sustainable functioning of international logistics networks. By embracing innovation and responsible practices, we can ensure that the Red Sea remains a vital and sustainable lifeline for international trade in the years to come.

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Scott Fontes began working for the Allen Lund Company in 2023 as an international logistics specialist in the Orlando office. Scott joined the company with years of experience in transportation, most recently as a logistics manager for an OTR transportation company.

scott.fontes@allenlund.com

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