Archive For The “News” Category
Records for both truck rates and shipping volumes were broken in the second quarter of 2018, according to a new report from the USDA.
The Agricultural Refrigerated Truck Quarterly, reviewed truck rates from April through June this year and provided an outlook for refrigerated trucks through the end of 2018.
“Indicators point to sustained high rates and tight capacity for the trucking industry, including the refrigerated truck market, through the end of 2018 and possibly beyond,” the report said.
In addition, the report said Hurricane Florence may have effects on the truck market in the months ahead, adding pressure to an already tight market.
“With demand for truck services projected to remain high, these combined factors could keep truck capacity scarce and rates high for the foreseeable future,” the report said.
Hauling the freight
Trucks continue to be the dominant carriers of freight, carrying 70.2 percent of domestic freight in 2017, according to the American Trucking Associations. Strong economic growth kept truckers rolling in the first half of the year, as real gross domestic product increased 4.2 percent in the second quarter of 2018, the USDA reported.
While the economy was heating up, unemployment reached a 10-year low of 3.8 percent in May.
Construction, manufacturing, or local driving positions through ride-sharing services offer competition to long-haul trucking positions.
Some trucking companies have increased drivers’ wages as a result.
Through the first half of 2018, ATA reported the freight tonnage hauled by trucks increased 7.9 percent,up from a 3.8 percent increase in 2017.
The report said DAT Solutions reported strong demand for trucking services caused truckload spot rates to reach a record high in June, topping a 15-month run of spot market rate increases. In the refrigerated truck market, DAT reported the national average spot market truck rate hit the highest point ever recorded, at $2.69 per mile in June, up $0.58 from June 2017, and $0.11 higher than the contract rate. While increases in contract rates typically lag four to six months, after a sustained increase in spot market rates, this year the lag has been only a few weeks.
Refrigerated truck market
Strong demand for trucks and large volumes has mostly affected truck rates for shipments of 500 to 2,500 miles, according to the USDA. The U.S. average refrigerated truck rate reached a record high in the second quarter, for shipments between 501 and 1,500 miles ($2.96 per mile), up 12 percent from the previous quarter ($2.64 per mile).
The U.S. average truck rate for shipments between 1,501 and 2,500 miles was still higher than usual at $2.45 per mile, but was 3 percent lower than the record high of $2.54 per mile, set in the first quarter of 2018. In contrast, average truck rates for shipments less than 500 miles, and over 2,500 miles, have remained within normal ranges.
Fruit and vegetable shipments
Reported U.S. truck shipments of fresh produce during the second quarter of 2018 were a record 9.65 million tons, 21 percent higher than the previous quarter, and 1 percent higher than the same quarter last year.
Shipments from Mexico were the highest in the second quarter, totaling 2.85 million tons and accounting for 30 pecent of the total reported shipments of fresh fruits and vegetables. Loadings from California totaled 2.24 million tons, accounting for 23 percent of the reported shipments. Movements from the Pacific Northwest totaled 1.55 million tons, representing 16 percent of the reported total.
The study noted until 10 years ago, California and Florida were the two biggest suppliers of fresh fruit and vegetables, during the second quarter. In recent years, both states have lost market share to the Pacific Northwest and Mexico, the USDA said.
The volume of shipments from Mexico through Texas reached a new high of 1.30 million tons during the second quarter of 2018, an increase of 8 pecent over the same period last year (1.21 million tons).
Five commodities accounted for 42 percent of the reported truck movements during the second quarter of 2018:
- Watermelons, seedless (11 percent);
- Potatoes (11 pecent);
- Apples (8 percent);
- Onions, dry (7 percent); and
- Strawberries (4 percent).
WP Rawl of Pelion, S.C., a grower/shipper/processor of leafy greens, again participated in Wreaths Across America’ Honor Fleet. The company has participated in the event for the past three years, according to a news release.
Volunteers all over the U.S.honor fallen veterans each December by participating in an annual wreath-laying ceremony. The wreaths, adorned with a red bow, are placed on the graves of fallen veterans.
The annual tribute began in 1992 with Morrill Worcester and his wife Karen Worcester at Arlington National Cemetery. In 2007 Wreaths Across America was formed to honor fallen veterans and since has grown to over 1,400 locations, in 50 states, at sea and abroad. The mission of Wreaths Across America is to ‘Remember, Honor and Teach.’
This year, WP Rawl picked up the wreaths in Columbia Falls, Maine and carried them to Beaufort National Cemetery in South Carolina. The truck’s exterior was displayed with a picture of a national cemetery and included a message of awareness for Wreaths Across America.
“It was very nice to see the turnout this past weekend at the National Cemetery in Beaufort. It was packed. I enjoyed seeing everyone pitching in and helping out,” Darren Gambill, WP Rawl truck driver and a U.S. Army Veteran. The playing of the bagpipes was very moving. It was great to be able to experience this for the first time.”
“Many of our Rawl family members and family of employees are veterans or families of veterans,” Ashley Rawl, vice president of sales, marketing and product development for the company, said in the release. “Participating in Wreaths Across America is a great way to show our gratitude to veterans like Darren as well as honor those who made the ultimate sacrifice for us.”
By The Idaho Potato Commission
Eagle, Idaho – It’s no surprise that during the six week period between Thanksgiving and New Year’s Day more Idaho® potatoes are sold than during any other time of year. From creamy mashed potatoes for Thanksgiving to crispy latkes for Hanukkah to steaming big bakers for New Year’s Day, the versatile vegetable shines during the holiday season! While the preparation options for potatoes are endless, Idaho grows enough potatoes to feed millions of folks in the United States and around the world all year long.
Chew on This…
- Approximately 311,000 acres of Idaho® potatoes (that’s about 13 billions pounds) are harvested each year.
- That’s enough to fill 500 football stadiums 10 feet high!
- Ninety percent of those 311,000 acres will grow russet potatoes like Burbanks, Norkotahs, Rangers and Westerns.
- The remaining 10% will grow niche varieties like golds, reds, fingerlings and more.
- 412 pounds of Idaho potatoes are sold every second!
- Wondering how the potatoes are used?
- 43% are used in processed products (frozen and dehydrated)
- 43% are sold fresh
- 14% are grown for certified seed
- Idaho® potatoes are transported across the country via trucks (70%) and rail (30%).
- What makes Idaho® potatoes different from potatoes grown in other states? It’s a combination of Idaho’s rich volcanic soil, warm days, cool nights and an abundance of clean, fresh water from the majestic mountains.
- Who loves Idaho® potatoes the most? News Yorkers! Followed by folks from Ohio, Florida, Pennsylvania and Texas.
Visit www.idahopotato.com for more fun facts, recipes and cooking tips.
About the Idaho Potato Commission
Established in 1937, the Idaho Potato Commission (IPC) is a state agency that is responsible for promoting and protecting the famous “Grown in Idaho®” seal, a federally registered trademark that assures consumers they are purchasing genuine, top-quality Idaho® potatoes. Idaho’s growing season of warm days and cool nights, ample mountain-fed irrigation and rich volcanic soil, give Idaho® potatoes their unique texture, taste and dependable performance. These ideal growing conditions are what differentiate Idaho® potatoes from potatoes grown in other states. For more information, visit www.idahopotato.com.
BOISE, Idaho – The 22nd Famous Idaho Potato Bowl will feature BYU and Western Michigan, after each team officially accepted invitations Sunday. The Famous Idaho Potato Bowl will be played Friday, Dec. 21 at Albertsons Stadium on the campus of Boise State University. Kickoff is set for 2 p.m. MST, and will air on ESPN.
This will be the sixth all-time meeting between BYU and Western Michigan. The previous five matchups all came between 1962 and 1970, with the Cougars winning three times.
“We’re excited to host BYU for the first time and welcome back a Western Michigan program that was a great participant a few years ago,” said Famous Idaho Potato Bowl Executive Director Kevin McDonald. “This is a fantastic matchup for our community with two teams they will really be able to get behind, along with two young quarterbacks and two up-and-coming coaches.”
BYU (6-6) is making its first appearance in the Famous Idaho Potato Bowl. Western Michigan (7-5) is making its second trip to the game. The Broncos competed in the 2014 edition against Air Force.
The Cougars won two games in November against fellow FBS independent programs UMass and New Mexico State to secure a 6-6 record and solidify their 36th bowl appearance. BYU is back in the postseason after a one-year hiatus in 2017 snapped a streak of 12 consecutive bowl berths.
The Broncos used a late touchdown to beat Northern Illinois in their regular-season finale, snapping a three-game skid and cementing their bowl eligibility with a 7-5 record. This is Western Michigan’s ninth bowl appearance and first since playing in the Cotton Bowl following the 2016 season.
In the past we have known of some Idaho potato shippers that have provided free bowl tickets to truckers. If you happen to have a layover and would be able to attend the game, you might check this out.
Chilean citrus imports by the U.S. grew at double-digit rates in 2018.
The Chilean citrus import season ended with easy-peelers in late October and early November. Navels are imported from June through October or so and lemons are imported by the U.S. from May through October.
This makes for a good match with the citrus season in the U.S., because 90 percent of Chile’s mandarins are shipped to the U.S. market.
Chilean citrus imports are very similar to the same varieties grown in the U.S., so that makes it very in high demand and assures increasing volume in coming years.
Chilean citrus imports to the U.S. this year have been up 30 percent.
Chilean clementine and mandarin exports grew from about 110,000 metric tons in 2017 to about 165,000 metric tons this year.
Chilean navel shipments to the U.S. — representing about 90 percent of all Chile’s navel exports — will show about a 12 percent increase compared with a year ago, and lemon shipments are projected to be 10 percent higher.
The U.S. takes about 50 to 60 percent of Chile’s lemon exports.
Chilean growers are continuing to plant more citrus trees because of strong demand from world markets.
The number of citrus exporters and new exporters, as well as citrus growers in Chile continues to increase. This is different than for crops such as stone fruit and grapes, since there is not as much potential for growth in demand compared with citrus.
Observers believe eventually the Chilean citrus industry begin consolidating. But currently the citrus industry continues attracting new players as it has been for the past decade.
Chile faces a similar challenge to U.S. grower/shippers as growing and labor costs increase and there is less labor availability. This is requiring growers to become more efficient in the future, with more mechanization and increased yields. There also is increasing competition.
Peru continues to increase its mandarin production in similar fashion to Chile. Uruguay is looking to increase citrus exports. Argentina lemons are now being exported to the U.S., and South African navel shipments to the U.S are growing.
This is resulting in more competition in the U.S. market, which is pressuring Chilean growers to open up new markets, diversify and offer new varieties to new markets.
When shipping any produce across borders whether from the USA to Mexico or Canada or the other way around, it is always good to consider the topic of international payments. While this may appear as a miniscule and rather technical area, it is in fact can get very expensive when paying or being paid through foreign currency.
Why can cross-border payments take a bite into a business’ bottom line? The reason for that is the exchange rate you’re getting for your foreign currency. Let’s take the Canadian Dollar to USA rate as an example. For December 13, 2018, the interbank official exchange rate stands at 0.748. If you are due for a payment of US $10,000, it means you should be charging $13,361.85 Canadian. In practice, U.S banks will never exchange foreign currency for the official exchange rate – they offer a much lesser rate than that. So, if your bank currently offers a rate of 0.723 (which is within range for what most U.S banks offer) you would trade that 13,361.85 Canadian to $9,660 US – netting a loss of $340 US against your original goal of $10,000 just because you were willing to accept foreign currency payments.
There’s a better way to deal with inbound and outbound international money transfers, though. The fact some banks may be overly expensive or demonstrate abusive behavior should not deter you from international business. Of course, it is preferable that whomever you engage in business will pay you in US Dollars but in some cases that may just not be possible. There are third party providers who are able to transfer and receive money from abroad in foreign currency and exchange it to dollar for much better rates.
These companies are named money transfer companies or FX providers. There aren’t particularly known or popular in North America, but as many as 50% of the internationally trading small businesses in the UK and Australia use them. In spite of the fact that these companies have limited success to date in the North American markets in comparison with the rest of the world, they maintain a strong presence. Take OFX for example, one of the top rated for online transfers – they have offices in San Francisco with a large staff, while their headquarters are in Sydney, Australia. The firm employees more than 700 employees worldwide and is traded in the Australian stock exchange so you know that not only you are going to get better rates, your money is safe too.
Bringing fresh produce center stage is a goal of discount retailer Aldi, which is in the midst of its $5 billion US expansion program.
The expansion includes building new stores and remodeling existing ones.
The new focus on produce includes a 40 percent expansion in the amount of product lines carried, with the produce department located at the front of the store. Most supermarket chains are investing more in produce departments, which are considered key components in stores.
In a move a couple of decades ago, there was a trend to make produce front and center and the first department shoppers see when entering a supermarket. With produce as an anchor in stores, many chains then look to improve their other in-store departments.
Aldi’s motion to move produce to the front and center suggests the retailer wants to be known as well-stocked store with everything the shopper needs. Additionally, once the fresh produce department is a strong anchor, stores have a tendency to follow through with other departments.
It appears that Aldi with fresh produce, will follow trends of having clean, conventional and organic products that are conveniently packaged. Aldi will likely add even more organic and clean options, in an effort to attract younger shoppers from 18 to 40 years old, who are after more affordable organic options. Whether Aldi will stock more value-added products remains to be seen.
Aldi already offers attractions for Gen X and Millennial shoppers and many of their center-store products have specialty claims, be it free of artificial colors or antibiotic-free meat.
Greater emphasis on fresh often come from higher income households. Will an expanded produce selection beyond basics higher-income shoppers at Aldi? One study shows that 93 percent of Aldi shoppers said pricing/value drove them to the format and 77 percent purchased fresh produce. One-third of shoppers expect to shift much more of their shopping to Aldi.
On price, Aldi will remain a discount retailer, so if the
If other supermarkets want to compete with Aldi, which will remain a discount retailer, those competitors will have to lower their price or invest in other areas of the store to maintain a ‘premium’ on Aldi as well as other discounters by offering a higher level shopping experience.
Studies have shown that 60 percent to 70 percent of markets experienced price declines of 1 to 3 percent when an ALDI opened. Some retailers will also increase service levels, emphasize quality, organic offerings, local items and more choices in general to increase their own competitive advantage.
by Peruvian Avocado Commission
Washington, DC. – This season, Peru reached record-breaking sales numbers by exporting over 726 million pounds of avocados worldwide, of which 182 million pounds were shipped to the United States. Peru is the second largest exporter of avocados in the world, the second largest supplier to the U.S., and the largest supplier to Europe. Avocados from Peru (AFP) supported this significant distribution through various strategic and unique retail, trade and consumer marketing activations that proved to be essential components to this season’s success.
“This was a season of firsts for us,” said Xavier Equihua, President & CEO of the Peruvian Avocado Commission. “We conducted over 10,000 demos nationwide in Walmart, Costco and Sam’s Club in 60 days, launched the first partnership between two superfoods (Peruvian Avocados and California Walnuts), aired the first ever avocado TV spots during the World Cup and Major League Baseball All-Star Games, launched the first “Peru at the Zoo” activation at the Maryland Zoo and introduced Cuzco, Avocados from Peru’s new mascot.”
This season’s robust marketing campaigns spanned across all channels including social, digital, radio, broadcast, mobile, print, retail initiatives and consumer activations –all pointing to the quality, taste, nutritional benefits, and versatility of Peruvian avocados.
Avocados from Peru Completes 10,000 Demos in 60 Days & Participates in Walmart’s Wellness Week
Avocados from Peru completed 10,000 demos in 60 days at Walmart, Costco and Sam’s Club’s nationwide –a record-breaking number for the category. AFP also participated in this year’s Walmart Wellness Week, the largest health event in the world. Peruvian avocados are the only produce items to ever be included in this prestigious event and contributed demos at 997 locations throughout the week and served a consumer favorite recipe –Avocado, Walnut and Peach Salad.
Avocados from Peru and California Walnuts
This season, consumers had the opportunity to taste and see the versatility of both Peruvian Avocados and California Walnuts in a first ever superfood demo collaboration at Costco, Sam’s Club and Walmart. The activations were supported by both demo partners through social, digital, PR, geo-targeting and website landing pages.
First Ever Avocado Sponsorship at World Cup and MLB All Star Games
This year AFP became the first in its category to sponsor two of the world’s most prominent athletic events –The World Cup and the MLB All Star Games. AFP ran TV spots celebrating World Avocado Month during the games as well as on morning and evening news programs. This initiative was also supported through digital and social promotions in partnership with Fox 5.
First Ever Produce Item to Partner with CBS and New York Yankees Baseball
AFP partnered with CBS to bring the ‘Avo-Dog’ promotion to one of the nation’s most iconic baseball parks over Labor Day weekend, offering baseball fans a free topping of Peruvian avocado with the purchase of any food item during the New York Yankees vs. Oakland Athletics games at Yankee Stadium in Bronx, New York.
by The Idaho Potato Commission
Eagle, Idaho – The Idaho Potato Commission (IPC) kicked off another year of marketing activations by launching one of its two new television commercials during ESPN’s live broadcast of the Boise State University (BSU) versus Oklahoma State University (OSU) football game on Saturday, September 15th. The IPC is a longtime sponsor of BSU and has made it a tradition to debut its new commercial during a nationally televised game.
This year marks the first time the IPC has created two commercials in one year for the Big Idaho® Potato Truck series. The spots feature Farmer Mark, the Big Idaho® Potato Truck along with two other fan favorites…the “Spud Hound” and the 1955 Studebaker. The commercials will air concurrently beginning October 22nd through the beginning of April 2019 on national networks including CNN, Fox News, CNN Headline News and the Food Network. Like last year, they will stream on HULU – reaching folks who prefer to watch TV shows and movies online. The commercials will also air for the first time ever on Access Hollywood, Live with Kelly, The Price is Right and CBS All Access.
“Every year we evaluate the effectiveness of our “Missing” advertising campaign, and it’s evident that the popularity of the commercials and the Big Idaho® Potato Truck is still growing exponentially,” said Frank Muir, President and CEO, IPC. “This is an especially unique year for us. We’re launching two new commercials and airing them on programs we’ve never advertised on before allowing us to reach millions of new consumers.”
While both commercials continue to center on the farmer’s ongoing search for the Big Idaho® Potato Truck, they have very different storylines. “First Bite” insightfully recognizes that whenever a meal is served with Idaho® potatoes, the first bite is always the potato. In “Secret Weapon” the farmer uses a Wile E. Coyote-like tactic to try to catch the Big Idaho® Potato Truck.
About The Idaho Potato Commission
Established in 1937, the Idaho Potato Commission (IPC) is a state agency responsible for promoting and protecting the famous “Grown in Idaho” seal, a federally registered certification mark that assures consumers they are purchasing genuine, top-quality Idaho® potatoes. Idaho’s growing season of warm days and cool nights, ample mountain-fed irrigation and rich volcanic soil, give Idaho® potatoes their unique texture, taste and dependable performance, that differentiates Idaho® potatoes from potatoes grown in other states.
It may not be a Magic Bus tour, but how about a CannaBus Tour!
Would you believe a produce industry convention is offering a tour of marijuana growing operations as one its programs.
At the Organic Grower Summit 2018 in Monterey, CA the organization has announced the 2018 CannaBusTour, created in collaboration with the Monterey County Cannabis Industry Association. It will take place on Wednesday, December 12th.
The 2018 OGSCannaBusTour is an opportunity to take a behind-the-scenes look at the Monterey County cannabis industry. This limited tour includes visits to a state-of-the-art, indoor cannabis growing operation and Indus, a vertically integrated cannabis extraction and manufacturing facility. With the growing, production and consumption of cannabis now legal in California, Monterey County is poised to be a leader in the growing and manufacturing of cannabis and cannabis related products. And as California moves to regulated organic growing of cannabis by 2021, OGS wants to be at the forefront of providing attendees with information and education overview of this burgeoning industry.
The 2018 OGSCannaBusTour is described as an opportunity to connect organic growers and allied service providers with all aspects of the cannabis industry. This is a unique opportunity to give OGS attendees a platform to learn about the future of the cannabis industry, according to the Monterey County Cannabis Industry Association.
The 2018 CannaBusTour is $99 per ticket and attendees must be registered for the Organic Grower Summit. Registration is available on a first-come, first serve opportunity for OGS attendees and there are no refunds. OGS will be held Dec. 12-13 at the Monterey Conference Center in Monterey, CA . Attendee registration is $499, with discounts available for CCOF members and government and educational members. Attendees will also have the opportunity to purchase a ticket to the CCOF Foundation Dinner on Wednesday, Dec. 12.
Registration to OGS includes admittance to the opening reception, educational sessions, keynote presentations, breakfast, lunch and trade show floor. Over 40 sponsors have confirmed their support of OGS.