Archive For The “News” Category
by Travis Minor and Agnes Perez, USDA ERS
Fresh fruit availability, production, and imports are increasing. However, rather than seeing increased supply lead to depressed prices, strong consumer demand appears to be supporting healthy growth in the prices of fruit commodities as availability grows, according to ERS’s annual update of the Fruit and Tree Nut Yearbook.
Decade averages show fresh fruit per capita availability increased by 21 percent over the past 40 years, from around 90 pounds in the 1980s to 110 pounds between 2000 and 2016. The opposite trend is seen in processed fruit and fruit-for-juice per capita availability, which has slowly declined over the decades. Since their relative peaks in the 1980s, availabilities for both processed fruit and fruit for juice have declined approximately 26 percent, to 29 and 88 pounds per person, respectively.
Domestic juice, processed, and even fresh-citrus production has been steady or slightly trending down since the 1980s. The growth through the mid-1990s was mainly driven by oranges for processing, traditionally around 50 percent, but falling to 35-40 percent in the most recent years. Citrus bearing acreage, mainly for processing, has been declining in Florida (focused mostly on the citrus processing sector) due to disease pressure (most notably citrus greening) and hurricane impacts.
Over the same period, domestic production of fresh fruits, primarily driven by non-citrus production, has been modestly increasing, suggesting that the market may be shifting from processed to fresh preparations. Citrus bearing acres are also declining in California, which dominates U.S. fresh market citrus production, where some producers are switching to higher value crops, including tree nuts such as almonds.
Trade plays an increasingly important part in both fresh and processed fruit markets. The United States imports more fresh and processed fruit than it exports. In 1980, fresh fruit imports were 27 percent of domestic availability, and processed fruit (excluding wine) imports were about 9 percent of domestic availability. By 2016, the import share of domestic availability nearly doubled, to over 53 percent, for fresh fruits and rose nearly fivefold, to 44 percent, for all processed fruits.
Growth in both markets is partially explained by two phenomena. First, growth in counter-seasonal imports has expanded as southern hemisphere trade partners like Chile have become more export-oriented to satisfy U.S. consumer demand for year-round availability of popular fruits. Second, the North American Free Trade Agreement (NAFTA) opened up trade with Mexico, a significant U.S. supplier of fresh fruit. However, across all markets, strong, steady growth is observed even before the mid-90s, reflecting the long-term global trend of expanded agricultural trade. The export market for fruits, which may have been similarly impacted by NAFTA, has grown at a slower pace.
Strawberry shipments along with mixed vegetables are showing significant increases from the Salinas Valley, including Watsonville, as truck rates to many destinations had double digit increases. Also, consignment loads should be a concern to truckers.
While Ventura County strawberry shipments are just about finished, Santa Maria and Salinas were providing most of the strawberry volume during the past week. However, Santa Maria is entering a seasonal decline, while Salinas is just heating up. For example, between Salinas and Santa Maria this past week over 1700 truck loads of strawberries were shipped. In the weeks ahead it will the Watsonville area that takes over berry volume.
In the coming weeks California truck rates on produce will be interesting to watch. In recent days, some truck rates from Salinas to New York City were hitting $9000.
Strawberry shippers are complaining about too much strawberry volume and low prices at shipping. However, this writer has yet to see significant drops in strawberry prices at his local Wal Mart.
The situation regarding a glut of strawberries is so bad, it could mean trouble for produce truckers hauling the fruit. Some berries are being sold on consignment. In other words, product is being shipped in hopes of finding a buyer while it is in transit. Some product that normally would be sold on the fresh market is going to the processors.
If you are hauling a load of strawberries that are on consignment, be aware you maybe pressured to change your destination if a buyer is found in another city. Too often, extra miles are added to a trip without adequate compensation for the additional miles being offered.
The USDA reports total shipments of strawberries from all origins for the week of May 6 – 12 totaled 77.9 million pounds, up 31 percent from 59.5 million pounds the same week a year ago.
California strawberry shipments accounted for nearly 99 percent of all commercial shipments, with light volume from Mexico and North Carolina.
California’s shipments of 76.8 million pounds the week of May 6-12 were up 31 percent compared with a year ago, when the state shipped 58.6 million cartons. California’s loadings of organic strawberries the week of May 6-12 totaled 6.2 million pounds, up 20 percent from 5.2 million pounds the same week a year ago.
California strawberry volume for the fresh market of 9.568 million trays the week of May 6-May 12 was up from a previous projection of 7 million trays for that week.
Through May 12, season-to-date shipments (conventional and organic) of California strawberries totaled 55.01 million trays, down slightly from 56.7 million trays last year at the same time and 57.7 million two years ago.
Organic fresh produce items reached almost $5 billion in 2017, an 8 percent increase from the previous year, according to data released by the Organic Produce Network and Nielsen. Overall, nearly 2 billion pounds of organic produce were sold in grocery stores last year, a 10 percent volume increase from 2016.
Partnering with Nielsen, OPN’s review of 2017 organic fresh produce sales at retail stores across the United States shows dollar sales of organic fresh vegetables were $2.4 billion, while organic fresh fruit sales topped $1.6 billion. Nearly $1 billion in organic value-added produce items brought total sales to $4.8 billion in 2017.
Sales of organic fruit volume and dollar sales were up 12.6 percent from 2016 to 2017, while organic fresh vegetable sales showed a 4 percent increase in dollar sales and a 6 percent increase in overall volume. Organic packaged salad was again the leading organic fresh produce item sold last year, approaching $1 billion in sales. Packaged salad still accounts for one in five organic dollars, but the 2.3 percent growth rate was below the department average.
Organic fruits led the growth with a 23 percent increase in organic berry volume sales. Not far behind was the growth of bananas and apples. Organic berry sales, which include strawberries, blueberries and blackberries, topped $586 million in 2017, with volume up 22 percent from last year. Organic apple and banana volume increased 11 and 17.5 percent respectively last year, while the average retail prices for each category down 8 and 3 percent.
“What’s most impressive about these two categories is the growth they were able to achieve in organic despite stagnant or declining conventional fresh produce sales. This also highlights that even the most mature categories have opportunity to grow the consumer base and sales through an organic offering,” said Matt Seeley, co-founder and chief executive officer of Organic Produce Network. “Not many product groups can claim double-digit growth in today’s competitive environment, which reinforces the power and importance of organic produce.”
Rounding out the top five was double-digit growth from organic fresh produce beverages and the herb and spices segment.
“Potatoes, grapes and citrus all rank in the top 10 for conventional sales but fail to crack the top 10 in organic sales, which shows that some categories still have opportunity for an increased market presence, said Matt Lally, an associate director at Nielsen. “Understanding and setting pricing strategies between conventional and organic varieties is critical for success. People will pay a premium for organic, but at some point, they will trade to conventional or out of the category all together.”
By L&M
Billy the Kid Produce, LLC in Deming, NM has entered an agreement with L&M to be their exclusive onion marketer. Both Billy the Kid and L&M are family-owned businesses with strong values and a shared focus on excellent quality and customer service.
“We are honored to be working together with Billy and the Franzoy family to service our customers and help them grow their businesses. Over the years, the Franzoys have made impressive investments in their operation. The scale and progressive nature of their culture made it a natural fit for L&M,” said John Oxford, President & CEO of L&M.
Billy the Kid operates a state-of-the-art facility within 20 miles of all of their onion fields. The packing facility boasts over 100,000 square feet with photo optic sizers and robotic palletizers that ensure maximum efficiency and consistency in sizing, sorting, and stacking.
Billy the Kid will grow approximately 700 acres of onions this season, beginning harvest in late May and continuing through mid-August.
“Our new partnership with Billy the Kid fits very well with L&M’s onion program. Our California crop wraps up at the end of May and we begin harvest on our Kansas crop in mid-August. This partnership will allow for a seamless transition and an uninterrupted supply of quality onions for our customers,” said Derek Ennis, L&M’s Potato & Onion Sales Manager.
“We’re excited to be working with L&M and look forward to a long future together,” said Billy Franzoy, Billy the Kid’s founder and a grower for the partnership.
“For the past 30 years I have represented my family to the onion industry. My decision to step out of onion sales was driven by the fact that I need to spend more time focused on the growth of the Hatch Chile Factory,” said Chris Franzoy, President & CEO, Young Guns. “The decision to hand over the onion marketing reins to L&M was an easy one to make. They have a great track record and are leaders in the industry. I’m very excited for both L&M and Billy the Kid, and I know for a fact there is no better company to represent my family,” he continued.
L&M is a grower and shipper of fresh fruits and vegetables with more than 54 years in the industry, specializing in potatoes & onions; Eastern & Mexican vegetables; and apples, pears & cherries. www.lmcompanies.com
Formed by Billy Franzoy, Billy the Kid Produce has been growing onions since the 1970’s. Today – along with his 4 sons – this 4th generation farming family has become a preeminent onion grower in New Mexico.
The San Francisco Wholesale Produce Market has shortened its name to The SF Market. It also is rebranding with a new look to highlight the market’s role in the Bay Area’s food economy. The market’s 31 produce vendors include wholesalers, distributors and online grocery delivery companies, according to a news release.
The rebranding effort comes as the market has signed a 60-year lease with the City of San Francisco and recognition as a historic asset by San Francisco’s Legacy Business Registry. The SF Market name and logo, developed by Trinity Brand Group, will be on the market’s website, on market signage and on merchant trucks, according to the release.
“With its innovative track record of helping food businesses grow at every stage and size, The SF Market has played an instrumental role in how the Bay Area has evolved into a leading food destination,” Matthew Youngblood, co-founder of Trinity Brand Group, said in the release.
“We have been thrilled to have the expertise of Trinity Brand Group behind us as we took this important step to rebrand our organization,” Larry Brucia, president of the board of directors, said in the release. “Through our collaboration with Trinity and the roll-out of our new look, our goal is to increase awareness of the enormous positive impact of The SF Market and to connect with food purveyors and the community in a bigger, better and more meaningful way than ever before.”
The SF Market is currently working on a $96 million reinvestment project to upgrade and expand the facility in Bayview-Hunters Point, including an 80,000-square-foot building, according to the release.
Stone Fruit Shipments
California stone fruit shipments have just got underway, with a later and lighter start.
Giumarra Cos. office in Reedley, CA, started harvesting white and yellow peaches and yellow nectarines this past week. The company plans to begin its white nectarines and apricots new week, followed by plums a few days later.
Simonian Fruit Co. of Fowler, CA kicks off its stone fruit season about May 20th, about a week later than normal.
Optimism abounds at Del Monte Fresh Produce as the domestic blueberry shipments progress. Also, Monsanto is looking to genetically alter strawberry to get a sweet taste and longer shelf life.
Del Monte Fresh
By Del Monte Fresh Produce N.A. Inc.
Coral Gables, FL – Del Monte Fresh Produce N.A., Inc. (Del Monte) is optimistic about the domestic blueberry season that spans between March and September. It began in the south and eastern states, continued to California in April, and later into British Columbia.
Del Monte’s Chilean import blueberry season finished with increased volumes over the prior years and it continues to expand to meet the growing interest from retailers and food service customers.
“The demand for fresh blueberries in the United States has grown steadily over the past decade. Per capita consumption more than tripled since 2005, exceeding 1.5 pounds per person,” said Dennis Christou, VP Marketing N.A. “Del Monte has been a key player in growing and shipping premium blueberries in Chile for more than 25 years and we continue to expand our operations to meet this growing demand. A major advantage we have is our Del Monte Fresh Cut business which these products support.”
The Mexico blueberry season will begin in early fall.
About Del Monte Fresh Produce N.A., Inc. Del Monte Fresh Produce N.A., Inc. is one of North America’s leading marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables. Del Monte Fresh Produce N.A., Inc. markets its products in North America under the Del Monte® brand (as well as other brands), a symbol of product innovation, quality, freshness and reliability for more than 125 years.
Sweeter Strawberries
by Erin Brodwin, Business Insider
In a move aimed at securing a place in the rapidly evolving food technology scene, the agricultural giant Monsanto has invested $125 million in a gene-editing startup called Pairwise.
The alliance could tee up Monsanto, long known for its controversial dealings with farmers and its role in popularizing genetically modified organisms, to introduce some of the first produce made using the blockbuster gene-editing tool Crispr. Sweeter strawberries with a longer shelf life could be among the earliest offerings.
The tool allows scientists to accurately target specific problem areas within the genome of a living thing, opening up the potential to tweak the DNA of everything from row crops like corn and soy to produce like apples and asparagus to make the produce taste sweeter, last longer on the shelf, and even tolerate drought or flooding.
By Green Giant
Salinas, CA – Green Giant™ Fresh has launched a new line of fresh vegetable Meal Bowls with six distinct world flavors. All bowls are microwave-safe and ready in just minutes making them a convenient meal option for time-starved consumers and people who are on the go but don’t want to forego nutrition or flavor for fast foods or quick meals. Just heat, stir in included sauce/seasoning packet and enjoy!
Plans for expanding this line are already in the works, while the original Meal Bowl flavors include:
- Burrito Bowl
- Fried Rice Bowl
- Pad Thai Bowl
- Rancheros Bowl
- Buddha Bowl
- Ramen Bowl
The bowls are comprised of different Green Giant Fresh value-added vegetable mixes and blends including items from their Cauliflower Crumbles® line—the original chopped cauliflower product that kicked off the riced/chopped veggie craze in 2016—and items from their 2017 Vegetable Noodles line.
Each vegan-friendly meal bowl comes with a sauce/seasoning packet that’s full of flavors ranging from sweet and tangy to zesty and savory. Other bowl additives include roasted chickpeas (Buddha Bowl) and dry roasted edamame (Ramen Bowl). Other protein preferences (e.g. chicken, shrimp, beef, tofu, egg) can also be easily added to any of the bowls, delivering the versatility to customize bowls to any palate, or to create a complete rounded meal.
“We know consumers are on the go and looking for healthy and nutritious foods, swaps and meal alternatives,” said Jamie Strachan, chief executive officer, Green Giant Fresh. Continuing, “Our meal bowls line was developed in response to this demand, then refined and perfected with our premium vegetable products, along with desirable flavors that give each bowl its distinctive personality.”
About Green Giant™ Fresh
Green Giant™ Fresh is an industry-leading fresh vegetable brand in the U.S. with a full line of commodity vegetables, as well as many first-to-market products. Their comprehensive line of fresh vegetables – covering every major commodity and vegetable category – is complemented by their extensive line of unique and innovative value-added items.
As the only fresh produce brand featuring Box Tops for Education™ clips, Green Giant Fresh has contributed over $2 million to this worthy cause, which benefits America’s K-8 schools nationwide. Box Tops clips can be found on over 100 of their products. Related website: GreenGiantFresh.com
A new study shows the size of fruit and vegetable farming operations is steadily increasing.
While the report does not address it, does this mean more loading opportunities for produce haulers at fewer locations?
“Three decades of consolidation in U.S. agriculture,” a U.S. Department of Agriculture’s Economic Research Service report said that the midpoint acreage (half of farms are below the midpoint acreage and half the farms are above it) for fruit, nut and berry operations increased in 19 of 20 crops between 1987 and 2012, with the average increase pegged at 110 percent. Except for lemon farms, which declined in size 16 percent from 1987 to 2012, all other fruit operations grew in size, the report reads.
The report was written by James MacDonald, Robert Hoppe and Doris Newton.
There has been evidence that average farm size has been slowing in the last decade, MacDonald said, but he added the long-term trend has been large and persistent across all crops.
For vegetable and melon crops, there has been a “clear slowing” of consolidation from 2007 to 2012 for vegetable and melon crops. Midpoint acreage declined in six of 20 crops, and the average increase was 10 percent over that five-year period, compared with previous five-year gains averaging 20 percent.
Technology has been a driver in larger farm sizes, MacDonald said.
For fruit and vegetable crops, Florida has faced urbanization pressures that have held down average farm sizes. Over the past 30 years, California has seen growers move out of field crops such as grains and into almonds, fruits, vegetables and other specialty crops.
Across all crops, the USDA reported 51 percent of the value of U.S. farm production came from farms with at least $1 million in sales, up from 31 percent in 1991.
Land consolidation in fruits and vegetables and nuts, 1987-2012
Midpoint for harvested acreage (half of operations larger, half of operations smaller)
1987 2012 Change
Almonds 203 547 169 percent
Apples 83 179 116 percent
Asparagus 160 200 44 percent
Avocados 40 50 25 percent
Blueberries 50 100 100 percent
Cantaloupe 400 350 -12 percent
Grapes 205 420 105 percent
Grapefruit 320 573 79 percent
Lettuce 949 1,275 34 percent
Pistachios 465 926 99 percent
Potatoes 350 1,054 21 percent
Strawberries 24 180 650 percent
Tangerines 55 336 511 percent
Tomatoes 400 930 133 percent
In the news, Idaho potato crop value soars, while temperature recorders are introduced at Wal-Mart distribution centers. Finally, the Port of Oakland announces 5-year growth plan.
The value of the 2017 Idaho potato crop was 22 percent more the previous year as it hit a record $1.2 billion, according to the USDA.
However, harvested acreage in the state was down 5 percent and yields were down 1.2 percent. Half those potatoes — whether fresh, frozen or dehydrated — end up on restaurant menus and at other foodservice operations, says the Idaho Potato Commission, which accounts for 13 billion pounds.
“Consumers are demanding a broader variety of creative and ethnic foods that would often be too challenging, costly and time consuming to prepare at home,” Don Odiorne, the commission’s vice president of foodservice/website, said in a release. “A variety of Idaho potatoes products and recipe options help operators meet that demand.”
Temperature Recorders
Cargo Data temperature recorders have been approved by Wal-Mart distribution centers for use by their inspectors and receivers. The instruments are provided in self-hanging protective plastic pouches for protection from moisture and other contaminants. The pouches are also bright orange, which makes it easier for the Inspectors/Receivers to find the instrument within your shipment. Cargo Data’s Wal-Mart approved temperature recorders are $8.50/ea plus shipping, packed in cases of 20.
Port of Oakland has New 5- Year Plan
A new five-year strategic plan has been announced by The Port of Oakland (Calif.) which will serve as a blueprint for expansion.
Dubbed “Growth with Care,” the plan outlines projections for record business volumes for aviation and maritime businesses, capital investments for major projects and an emphasis on sustainability.
“We can grow, but we want our neighbors to grow with us,” Port of Oakland Executive Director Chris Lytle said in a news release about the 21-page document.
Cargo volume should reach 2.6 million 20-foot-equivalent containers (TEUs) by 2022, according to the plan, an increase of 8 percent.
Two projects will help with that increase:
- Cool Port Oakland, a 283,000-square-foot refrigerated distribution center that is set to open this summer, and
- A 440,000-square-foot distribution center planned at the nearby Seaport Logistics Complex.
Curbing diesel emissions is also a part of the strategic plan, and truck emissions at the port have been cut 98 percent since 2009, and vessel emissions have declined 76 percent.
The appeal of big rig electric trucks may be even bigger than thought….Plus, Del Monte completes its acquisition of Mann Packing.
Electric Trucks
Testla Inc. is the maker of the long-distance class-8 electric trucks scheduled to be introduced in 2019. Now some fans of the new truck believe they will pay off the difference between electric and diesel trucks in as little as 18 months. Jim Monkmeyer, president of DHL Supply Chain, who is one of the first to order the electric trucks, recent told Reuters the new trucks could pay for themselves this fast because of energy usage and low maintenance costs. Engines for electric trucks are said to be much simpler in relation to the number of parts and complexities of the parts.
Additionally, based on the assumption diesel fuel costs will remain high, plus costs are projected to decrease for electric trucks, the saving could be even more than originally anticipated. anticipated.
Sysco Corp. of Houston already contracted to by 50 tractor-trailers, while Meijer Inc. of Grand Rapids, MI is set up for an electric truck test drive.
Del Monte/Mann Acquisition
Fresh Del Monte Produce of Coral Gables, FL has finalized its acquisition of Mann Packing Co. Inc. of Salinas, CA for about $361 million.
Del Monte has been for years associated primarily with bananas, but more recently has been diversifying its business. Purchasing Mann accelerates its efforts to become more invested in fresh-cut. Its sales in the segment for 2017 were $607.8 million, up 18 percent from the previous year.
Mann’s product offering is roughly 50-50 between bulk vegetables and fresh-cut. Del Monte recently spelled out some of its plans to incorporate Mann into its operations. It was noted Mann is mainly on the West Coast with much less of a presence in the Northeast, but has little activity in the Southeast and Southwest of the U.S. Thus, Del Monte is looking to develop new business in those regions. It also is looking leverage its infrastructure across the U.S. to improve marketing and distribution of Mann Packing products.