Archive For The “News” Category
The Port of Savannah breaks a record for volume, while a new service has been established at the Port of Pensacola.
Savannah
Savannah set a record last year for annual cargo volume by increasing 11 percent to over 4 million 20-foot equivalent units.
“This is the first time we’ve handled more than 4 million TEUs in a 12-month period, which is an important milestone for Savannah,” said Griff Lynch, Georgia Ports Authority executive director, in a Georgia Ports Authority news release.
The complex is investing in a deepening project called the Savannah Harbor Expansion Project, supported by state and federal funds as part of establishing itself as a regional cargo gateway.
With three dredges currently working in the Savannah River, the project is scheduled for completion by the end of 2021.
The port is set to break ground on the Mason Mega Rail terminal in early spring, which will double Garden City Terminal’s rail lift capacity to 1 million containers per year. That project should be finished by the end of 2020.
“What sets Savannah apart is its ability to grow capacity, increase cargo and do it in an efficient manner without congestion,” Georgia Ports Authority board chairman Jimmy Allgood said in the release.
Another project designed to increase capacity is a $3.5 million upgrade to four of the port’s ship-to-shore cranes. The port also received four Neopanamax cranes in November and is set to receive six more in 2020, for a total of 36 cranes.
Ocean Shipper Adds Route
World Direct Shipping is adding a service to Port of Pensacola, FL. It already has a regular ocean shipping route from Mexico to Port Manatee.
The new route, which started February 1st, includes weekly sailings from Coatzacoalcos, Veracruz, to Pensacola. Another port in the northern region of Mexico’s Gulf Coast will be added.
“With Pensacola and Port Manatee, World Direct Shipping enhances its service network between Mexico and the Southeast United States,” Carlos Diaz, director of World Direct Shipping, in a news release.
Diaz said the Veracruz-Florida connections give more opportunities for exports through Pensacola from the Southeast U.S. Pensacola Port Director Amy Miller said the deal brings a new level of commerce to the port.
“Breaking into the container markets is a big deal for a smaller port like Pensacola,” she said in the release. “While large-scale container operations may be out of reach for us, we’ve always
known that there were smaller, niche container markets out there that made sense.”
The M/V Queen B, at 435 feet long, has the capacity for 657 twenty-foot equivalents. It is one of two ships on the Veracruz, Mexico, to Pensacola route.
Produce industry consolidations seem to be common place these days, with one of the latest being two Georgia peach shippers…Also new distribution centers continue in South Texas, this time from Evergreen Cold Storage.
Over 5,000 acres of peaches will be shipped under the Lane Southern Orchards brand following a merger of perhaps Georgia’s two largest peach shippers.
Lane Southern Orchards of Ft. Collins, GA and Taylor Orchards of nearby Reynolds, GA have merged. Lane Southern Orchards farms 2,000 acres of peaches and 3,500 acres of pecans, while Taylor Orchards farms 3,000 acres of peaches and 950 acres of row crops which include peanuts and soybeans.
The combined company will ship peaches under the Lane Southern Orchards label. Additionally, the new operation plans to increase peach production by 700 acres and pecan production by 1,000 acres.
“This additional supply of peaches allows us to be a better supplier to existing customers and expand our customer base as well,” Duke Lane III, director of sales for Lane Southern Orchards, said in a news release. “From a sales and marketing perspective, you can engage consumers in creative ways with nearly 6,000 acres of Georgia peaches. It is going to be an exciting summer for Georgia peaches.”
New South Texas Distribution Center Coming
By Rio Grande Guardian
PHARR, TX – Pharr city and economic development officials helped Evergreen Cold Storage break ground on a new fresh produce warehouse project on Hi Line Road, not far from the Pharr International Bridge.
Victor Perez, executive director of Pharr Economic Development Corporation, said the groundbreaking kick starts Evergreen’s plans to construct a total of 283,200 square feet of warehouse space in three phases on approximately 16.7 acres.
“The first phase is the construction of a 117,000 square feet warehouse to be completed by December 2018. The second phase includes a 95,600 square-foot warehouse and a 13,000 square-foot commercial area, to be completed by December 2021. The third phase will include the construction of a 57,600 square-foot warehouse to be completed by December 2022,” Perez told the Rio Grande Guardian.
Bananas are always right at the top in surveys listing favorite fruits to eat. But now you can eat the banana peel – at least in Japan….Also, only a moderate increase in food prices is seen this year in the U.S.
Edibile Banana Peel
by Joe Dziemianowicz, NY Daily News
The brainchild of food scientists at a farm in Western Japan, the eat-it-all Mongee (pronounced mon-gay) banana derives from a frigid growing environment.
“Typically bananas only grow in tropical climates, but D&T Farms uses a method called ‘Freeze Thaw Awakening,’”
Mongee banana trees grow at -76 degrees Fahrenheit. Then, they’re thawed and replanted. As a result, fruit grows rapidly and are left with a lettuce-like skin.
The designer banana, reports rocketnews24.com, is “sweeter than regular bananas, with 24.8 grams of sugar, as opposed to the average 18.3 grams.
Retail Food Prices
Retail food prices will rise between 1 and 2 percent in 2018 after dropping 0.2 percent in 2017, predicts the USDA.
The USDA’s January 25 food price outlook report said retail food price inflation has been lower than average because of a stronger U.S. dollar which makes imported foods cheaper.
A high dollar also dampens U.S. exports, which increases domestic supply of food and put pressure on prices. Moderate increases in energy costs and shrinking retailer margins in 2017 may have held down food prices, according to the USDA.
For 2017, the report said retail prices for fresh fruits fell 1.1 percent from November to December but are up 2.1 percent compared with December 2016.
While banana prices rose in December, citrus prices dropped 6.1 percent and apple prices were 2.4 percent lower than in November. The USDA said fresh fruit prices rose 0.5 percent in 2017. For 2018, fresh fruit prices may rise 3 to 4 percent.
Fresh vegetable prices increased 1.3 percent from November to December, and were 3.5 percent higher than in December 2016. For all of 2017, fresh vegetable prices decreased 0.1 percent. For 2018, fresh vegetable prices are expected to change between -0.5 to 0.5 percent.
Delays in Mexican produce crossing the border, which also means in delays for produce haulers picking up product at distribution centers, is occurring at Nogales, AZ…..Also, bananas are now arriving for the first time by boat at Wilmington, NC.
Nogales is a leading port of entry for Mexican fresh vegetables, amounting to $2 billion in 2016, is having delays due in large part from a shortage of officers.
A shortage of as many ad 300 officers is reported a US. Customs and Broker Protection (CBP). The results are long lines delaying produce border crossings.
Citing security reasons the CBP doesn’t reveal exactly how many officers are currently working at the gateway. However, they acknowledge the port is rotating staff by bring in officers from other ports around the U.S. to Nogales for 90-day work assignments. As many as 175 officers have relocated to the Nogales for temporary duty, reports the National Treasury Employees Union.
In 2016 alone, $8.3 billion worth of U.S. exports when from Arizona into Mexico. Also in 2016, $7.4 billion in Mexican goods were imported into Arizona.
Not only is commerce adversely affected by the delays at Nogales, but travelers looking to cross the border are looking at lengthy delays.
Anthony Reardon, president of the Nogales, National Treasury Employees notes CBP’s protracted and complicated hiring process, strict polygraph testing, and extensive training times are all at play when he recently testified before congress. This has resulted in 3700 vacant positions for the agency, simply due to the 12 to 18 month hiring process.
Banana Imports at Wilmington
Bananas imported from Central America recently began arriving at the Port of Wilmington (NC). The inital arrival marks the beginning of a 12-month commitment to bring weekly deliveries of bananas for distribution by truck to distribution centers across North Carolina and South Carolina.
Wilmington is the first South Atlantic port to implement both phases of the Department of Agriculture’s Southeast In-Transit Cold Treatment Pilot program, which allows for more direct imports of produce.
By Jim Prevor’s Perishable Pundit
With relentless pressure on margins in all commodity produce driven by the ever-increasing power of large buyers, the necessity of innovation has never been greater. Fresh Del Monte has invested in innovation, whether varietal — its Del Monte Gold Pineapple was the single greatest leverage tool in the produce industry for a while — or structural — methodically building a network of regional processors. Now Fresh Del Monte decided, in one fell swoop, to buy an innovation factory and scale up its product line to be able to face retailers across a broader spectrum. We speak, of course, of the announcement that Fresh Del Monte will purchase Mann Packing.
From a business perspective, it is hard to think of a more synergistic acquisition. The storied Del Monte brand had its roots in vegetables, with canned green beans and the like creating billions of multi-generational impressions that have sunk into the collective sub-conscious of the nation and the world. Yet the fresh company had its strength in fruit — pineapples and bananas notably, but also fresh-fruit processing. Now, in one fell swoop, Fresh Del Monte has a division that is a leader in fresh-cut vegetables.
No business strategies have been announced, and for the moment, there will be no changes for customers. The Mann management team stays, and the company will operate just as before. But one doesn’t have to have inside information to imagine the Del Monte brand starting to appear on fresh-cut vegetable packs and other innovative products that Mann is known for.
The deal also points to the evolution in the business that is favoring multi-product companies. Once one company starts to broaden its range, others find the necessity to do the same; otherwise competitors, profiting on other lines, can eviscerate margins on the one competitive category and kill a business. Broad diversity of product, geography and customer type makes a company invulnerable to this strategy. So, Del Monte is acquiring not just a source for new product ideas and not just a new business line, but a strategically more defensible position in the industry.
The whole deal reminds us of something that has often been dismissed in recent times: The enormous value of experience. Deals like this involve many people doing many things but, despite its good sense, the deal might never have happened if Fresh Del Monte had not hired Emanuel Lazopoulos, now Senior Vice President of North America Sales, Marketing and Product Management.
Emanuel joined Fresh Del Monte back in 2005 to run its Fresh-Cut operation. His career, though, includes time as the Managing Director of NewStar Fresh Foods, as Vice President of DNA Plant Technology and as Vice President of Dole Fresh Vegetables — in other words, he spent a lot of time in Salinas. There are many companies that are buying other companies today — there is private equity and venture capital funds, for example. But for a family business like Mann, finding a home that will lead to success for grower partners, for employees, for the living embodiment of generations of sweat and tears, these are not trivial matters.
Over and over again, we have heard the same story: a team of super-smart, super-educated private equity analysts march into a business to review the numbers and do the analytics but also say they have no interest in touring the plant, so they turn off the very people they need to get excited about a potential combination. It is no stretch to imagine that decades of familiarity raised the comfort level and facilitated the deal.
There has been an enormous drain of produce experience from important produce companies and their retail customers. But deals like this remind us that though the loss may not always be evident or be easily quantified, it is real. One opportunity, one moment, one connection, can cover a lifetime of salary.
Selling a successful family business is always filled with both excitement and trepidation, hope and a tinge of melancholy. But family businesses are always challenged by the mere passage of time. With each successive generation, ownership gets more diffused, difficult decisions have to be made about how to deal with the differing financial interests of those family members who work in the company and those who do not; estate taxes must be paid with each generation, and shareholders, once bound by love, respect, history, familiarity and propinquity — so often become strangers. If the right situation presents itself at the right time, a sale solves many problems and actually sets the business up for continued growth.
This particular story is a great drama. It includes great loss, but also stands as testament to the extraordinary resilience of the human spirit and the extraordinary importance of the individual.
It has a heroine… Lorri Koster, née Nucci, Chairman and CEO of Mann Packing Co., shepherded Mann through this process. She ran this ball down the field and carried it over the line. But she was not the football player in the family.
The plans once made called for her brother, Joe, to head up the company, who died several ago unexpectedly. When these settled plans were disrupted, nine out of ten companies would have never recovered. But the Nucci’s and the Ramsey’s circled the wagons. Lorri’s father, Don Nucci, and Bill Ramsey jumped in, but Don died shortly thereafter. Lorri, though, always connected to the family business, had left full time employment to try other things, including a stint at a produce dot com, setting up her own marketing agency, buying a local magazine.
But in the aftermath of the passing of both her brother and her father, this baseball Mom, with support of her sisters DeeDee and Gina, would come to guide Mann Packing to its present prosperity. To take a reputation for ethical business conduct, combine it with innovation, position it as Moms selling to Moms and complete the transformation of what was once the largest commodity broccoli shipper in the country into a kind of produce skunkworks that boosts sales and consumption with the quality of ideas well-executed.
Fresh Del Monte is a good home for Mann. The company knows growers, has facilities that can be jointly leveraged — say regional vegetable processing — it won’t run from a food safety issue, and both companies combined can leverage transportation and procurement.
This story, though, tells us that buildings and equipment are just the public manifestation of the story. It is the character of people that matters more than anything. Emanuel had to be seen as a man of good character and integrity; not having been in Salinas would have been a negative. Lorri had to undertake responsibilities when others might not have done so. She had to persevere under tragic circumstances when others would have not been able to. Amidst darkness, she had to broadcast a light that would inspire others to follow —and she did.
In business, everyone will look for opportunities to trade and engage with the new, larger, Fresh Del Monte, but the profit to be derived by watching this deal is the lesson that experience matters, that perseverance matters and the character matters —above all.
By Del Monte Fresh Produce N.A. Inc.
Coral Gables, FL. – Del Monte Fresh Produce N.A., Inc. (“Del Monte”) entered into a definitive agreement on February 5th, to acquire Mann Packing Co., Inc. (“Mann Packing”), an award-winning innovator and leading grower, processor and supplier of a broad variety of fresh and value-added vegetable products in North America. Mann Packing’s annual sales were approximately $535 million in 2017.
Del Monte will acquire Mann Packing for an aggregate consideration of approximately $361 million. The transaction is subject to regulatory approvals and other conditions that are customary for transactions of this type and is expected to close during the first quarter of 2018.
“We are extremely pleased about our acquisition of Mann Packing, a leader in the fresh and value-added vegetable category,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer of Fresh Del Monte. “Mann Packing’s strength in the vegetable category, one of the fastest growing fresh food segments, will provide us with synergies, enhancing our ability to better serve our combined customers and address consumers’ needs for healthier products. This acquisition is a significant step toward our goal to be the world’s leading supplier of healthful, wholesome and nutritious fresh and prepared food and beverages for consumers.”
“Everyone at Mann is excited with this development” said Lorri Koster, Chairman and Chief Executive Officer of Mann Packing. “We share Del Monte’s values and commitment of providing fresh, high-quality produce based foods that are nutritious and delicious. Both our companies have been successful in their own right with their superior quality, service and value to our customers and consumers in all channels throughout North America. This will only be enhanced by combining the business expertise and skills of two of the industry’s premiere organizations.”
About Del Monte Fresh Produce
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.
About Mann Packing Co.
Mann Packing, established in 1939 and based in Salinas, California, is a leading grower and supplier in North America of fresh vegetables, including washed and ready to eat fresh-cut vegetables, snack packs and party trays, and washed and trimmed lettuce products for the food service and retail markets.
 By Okanagan Specialty Fruits Inc.
Summerland, B.C., Canada – Okanagan Specialty Fruits Inc.’s (OSF) third nonbrowning Arctic® apple variety, Arctic® Fuji, has been approved by the Canadian Food Inspection Agency (CFIA) and Health Canada (HC). The CFIA and HC announced recently that the Arctic® Fuji variety “did not pose a greater risk to human health than apples currently available on the Canadian market. In addition, Health Canada also concluded that the Arctic® Fuji apple would have no impact on allergies, and that there are no differences in the nutritional value of the Arctic® Fuji apple compared to other traditional apple varieties available for consumption”. Arctic® Fuji trees will join the growing commercial orchards of Arctic® Golden and Arctic® Granny apples in spring 2018. The company shipped the golden delicious slices to about 400 retail locations in the Midwest last fall. “Canadian approval of the nonbrowning Arctic® Fuji is great news for our company and even more exciting for families looking to add another favorite apple variety to their healthy diets and lifestyles,” explained Neal Carter, President of OSF. “There has been very strong interest from retailers as we launched our first product – fresh, preservative free Arctic® Golden slices – and we look forward to introducing additional Arctic® nonbrowning varieties into Canada and U.S. markets soon.” Arctic® apples have a unique trait that prevents enzymatic browning even when apples are bitten, sliced, or bruised. Through biotechnology, the enzyme in apples responsible for browning has been turned off. The resulting nonbrowning advantage benefits every sector of the supply chain, reducing food waste and boosting product appeal. “It’s an exciting time at OSF. For a very long time, apple lovers have been looking forward to enjoying nonbrowning Arctic® apples as a convenient and healthy snack option. With this past fall’s U.S. launch we were finally able to deliver just that,” stated Carter. “This latest announcement allows us to continue looking ahead toward providing new nonbrowning varieties and additional value-added fruits and vegetables. Arctic® apples are just the beginning for OSF.” The announcement follows approval by the U.S. Department of Agriculture Animal and Plant Health Inspection Service (USDA APHIS) of the Arctic® Fuji variety, granted September 23, 2016. Arctic® apples will be available commercially in select U.S. cities this fall and in additional areas of North America over the coming years as fruit availability increases. About Okanagan Specialty Fruits Inc. Okanagan Specialty Fruits Inc. (OSF) is a dynamic biotechnology company based in Summerland, British Columbia, Canada. Founded in 1996, and acquired by Intrexon Corporation (NYSE: XON) as a wholly owned subsidiary in April 2015, OSF specializes in developing tree fruit varieties with novel attributes that benefit fruit producers and consumers alike. |
by Ti (Tippmann Innovation)
PHARR, Texas — Index Fresh, based out of Riverside, CA, along with Ti (Tippmann Innovation) of Fort Wayne, IN, are proud to announce the ribbon cutting of the new Index Fresh avocado distribution facility in Pharr, TX. The Ceremony, held on January 9th, completes the nearly yearlong project which will continue to help Index Fresh expand their growing market presence both in the U.S. and in Mexico.
The new 60,000+ sf building designed and built by Ti (Tippmann Innovation) is now in full operation with the facility serving all aspects of Index Fresh Avocado business. The fully expandable state-of-the-art plant allows for ripening, storage and distribution all under one roof. The multi temperature facility has varying temperature zones to accommodate fresh perishables which allows Index Fresh to satisfy the growing demand for Fresh Product.
The new Index Fresh facility was built in the city-backed Pharr Produce Park at 1100 W. Capote Central Ave., Pharr, TX 78577. With close access to the border it allows Index Fresh and other companies positioned in the park to more efficiently move product in and out of Mexico.
“Produce is an economic driver for the City of Pharr, especially given our geographical proximity and ideal location near the U.S.-Mexico border,” said Mayor Ambrosio Hernandez, M.D. “Pharr International Bridge has been the leader when it comes to produce trade, accounting for nearly 60 percent of all fresh produce imported from Mexico crossing into the U.S. through our bridge,” Hernandez continued. “We have a long relationship with Index Fresh and are happy to have solidified our partnership through their investment in opening their first facility in Texas, right here in Pharr.”
Ti (Tippmann Innovation), a leader in the planning and building of cold storage facilities, worked with Index Fresh to design a modern, efficient facility that has the capacity and the flexibility to provide refrigerated service as the needs arise, using the most advanced technology in the industry.
About Ti (Tippmann Innovation)
Ti is an award winning, specialty commercial and industrial cold storage contractor that develops buildings around a business plan, ensuring that an investment becomes a profit center. Ti utilizes time-honed expertise and advanced technology solutions to create efficient buildings that scale with a business, and are designed to maximize profitability through fully integrating operations and supply chain, by design. Ti provides a full suite of cold storage construction services, including quick freeze, blast freezing, master site planning and operations, and maintenance guidance. Ti’s innovations include the Patented QuickFreeze in-rack freezing system that takes blast freezing to the next level, QuickTemper in-rack tempering system, and T2 spacer system. Ti has offices in Indiana, Illinois and Florida and operates internationally.
New technology extending okra shelf life should help reduce waste and claims. Also, Shappire grapes from Peru are now arriving at U.S. Ports.
A company specializing in products to enhance the shelf life of fresh produce has a partnership with a company that grows specialty produce in the Dominican Republic and Honduras.
The partnership initially is on a product from Hazel Technologies Inc. to extend the shelf life of okra grown by Agritrade Farms LLC. The postharvest technology, Hazel Okra, will be used on shipments of the vegetable from Honduras shipped to North America and Europe.
Okra is a difficult item to ship at peak quality, according to a news release, but trials with Hazel products and okra shipments have had positive results. The first commercial shipment of okra with the technology was in December.
Hazel Technologies has a line of packaging inserts designed for different items including tomatoes, melons, tree fruit, avocados and some specialty vegetables.
| Sapphire Grapes
by Melissa’s Produce Los Angeles, California – Melissa’s announces the first shipment of the season of fresh Peruvian Sweet Sapphire Grapes! The unusual two-inch tubular shape is not the only unique characteristic of this sweet table grape. Sweet Sapphires have a dark purple, almost black, skin that protects its translucent green and seedless fruit. With a sugar content that exceeds all other fresh grape varieties, the grape has an extremely sweet flavor balance reminiscent of a delicate dessert wine. Surprisingly, each grape is so firm it can be snapped in half and large enough to be stuffed! Through natural cross-pollination, a tedious process done by hand over many generations of grape seasons, the variety offers both taste and versatility like no other. Serve Sweet Sapphire grapes stuffed as an interesting party platter finger food, as the base for a full-bodied reduction sauce or simply as a tasty sweet out-of-hand snack fruit. Available for a short time during the months of late January – March, Sweet Sapphires are great with cheese, crackers and wine. Melissa’s Produce is the leading U.S. variety distributor of specialty and organic fresh produce. The company imports exotic fruits and vegetables from around the world.
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Record Cargo volume in the coming years is projected for the Port of Oakland in Oakland, CA with one of the key projects being construction of a $90 million “Cool Port.”
Officials at the Port of Oakland have several construction projects designed for attracting additional business and reaching record cargo volume starting this year.
Additional containerized cargo in 2018 is predicted and continuing through 2022, a news release states.
“I’m forecasting growth because of the development that’s going on here,” said Maritme director John Driscoll. “It won’t be dramatic, but it will be steady and will result in more cargo volume than we’ve ver had before.”
Driscoll said three international shipping lines are considering making Port of Oakland their first call due to recent port improvements. Any of them making the switch would increase cargo volume, according to the press release.
Projects drawing the most interest, according to the news release:
- Cranes: Four ship-to-shore cranes at the Oakland International Container Terminal are being lifted by 27 feet to accommodate megaship loading and unloading, at a cost of $14 million to $20 million. The second crane was lifted by the end 2017, with work on the other two finishing up in mid-2018;
- Cool Port Oakland: Cool Port will process beef and poultry exports in a 280,000-square-foot refrigerated distribution center that is expected to handle 27,000 20-foot equivalent units of meat each year. The $90 million facility should open next August;
- Seaport Logistics Complex: Construction of a $52 million, 440,000-square-foot transloading facility is expected to start in late 2018; and
- Truck service center: An 8-acre facility with food stops, fueling stations and overnight parking for harbor drivers is still in the negotiation stage.
The Port of Oakland reported total volume of 2.37 million 20-foot equivalent units in 2016, and in 2017earlier this year projected it would handle 2.6 million containers by 2022, according to the news release.