Archive For The “News” Category
Global fresh produce marketer Dole plc terminated its agreement to sell its Fresh Vegetable Division to Fresh Express, a wholly-owned subsidiary of Chiquita Holdings Limited (Chiquita).
In a release Thursday morning, the company said the decision resulted from the U.S. Department of Justice’s decision to pursue litigation to prevent the transaction.
The DOJ said Thursday that it had concerns about the deal’s impact on competition in the packaged salad market.
“At a time when food companies are already overcharging Americans for groceries, today’s abandonment preserves lower prices and availability for an essential kitchen staple,” said Assistant Attorney General Jonathan Kanter of the Antitrust Division in a statement.
“This merger would have reduced the number of competitors from three to two and raised grocery prices for food products that are purchased by 85% of American households. I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals, and professional staff who made this result possible.”
In January 2023, the company announced a ‘definitive agreement’ to sell the division for gross proceeds of approximately US$293 million, subject to certain adjustments.
At the time, they said the transaction was subject to regulatory approval and the parties expected the transaction would close after obtaining approval.
This morning, the company put out the following statement regarding the announcement:
“While Dole strongly disagrees with the Department of Justice’s decision and continues to believe that the transaction was pro-competitive and would have unlocked ongoing benefits to customers and consumers, we remain confident that we will have an alternative path forward in the near term that is in the best interests of the Fresh Vegetables Division’s employees, customers, and partners, and the Dole plc shareholders.”
The company’s executive chairman Carl McCann previously said the deal with Fresh Express would improve their offering and service to customers and consumers through increased investments in innovation, efficiencies, and food safety.
Banana import volume and value rose in 2023, according to USDA trade data.
At $2.04 billion, the U.S. import value of bananas in 2023 was up 4% from 2022, up 9% from 2021 and up 8% from 2020.
U.S. import volume of bananas was 5.08 million metric tons in 2023, up 2% from 4.99 million metric tons in 2022. The per metric ton value of banana imports in 2023 was $532.80, up 7% from 2022 and up 11% from 2021.
Guatemala, Costa Rica, Ecuador, Honduras, Colombia and Mexico were the top global suppliers to the U.S. market, according to USDA numbers. By country, 2023 U.S. import value numbers, with percent change from 2022, were:
- World total — $2.04 billion, up 4%.
- Guatemala — $948.9 million, up 2%.
- Costa Rica — $432 million, up 21%.
- Honduras — $228.3 million, down 4%.
- Ecuador — $167.9 million, up 2%.
- Colombia — $123.9 million, up 6%.
- Mexico — $106.1 million, down 13%.
- Panama — $31.1 million, up 68%.
Banana retail per capita availability was 26.9 pounds in 2021, down 1% from 2020 and down 2%. Retail per capita availability data for 2011 to 2021 was:
- 2011 — 25.5 pounds.
- 2012 — 26.9 pounds.
- 2013 — 28 pounds.
- 2014 — 27.9 pounds.
- 2015 — 27.9 pounds.
- 2016 — 27.4 pounds.
- 2017 — 28.6 pounds.
- 2018 — 28.3 pounds.
- 2019 — 27.4 pounds.
- 2020 — 27.2 pounds.
- 2021 — 26.9 pounds.
By Fernando Dominguez ALC San Francisco
The Transportation industry is more than just getting products from point A to point B. There are myriad factors to consider, from the product itself and the agricultural regulations it abides by to the equipment utilized and the laws that govern it. Most importantly, but arguably the most overlooked factor in this industry, are the laws, rules, and regulations that create the foundation under which many products are cultivated. Being part of a national transportation brokerage and working in the San Francisco office, whose main niche is in produce, we are consistently watchful for changes in regulations and shifts in the market. They have the potential to affect both the customers we conduct business with and the carrier companies that relentlessly move product from coast to coast. I am part of a team that must shift and pivot in an industry full of change, but with change comes bountiful opportunities.
There have been numerous occasions where changes in agriculture and consumer spending have led customers and carriers to adjust their daily procedures to keep up with demand. Most recently, the USDA Announced Temporary Suspension of the Continuance Referendum Requirement for California Raisins. This has the potential to change how much grapes are moved throughout the country. Subsequently, other produce products grown in California will be impacted, as this action amends a marketing order affecting growers and handlers of grapes (of whom presently, there are approximately 18 handlers of raisins subject to regulation under the Order and approximately 2,000 raisin producers in the regulated area). Keeping track of regulatory changes is extremely important because they enable multiple entities to regulate the cultivation and distribution processes. Additionally, it’s crucial to understand the financial effects of these changes. Any time there is a change of this magnitude in the transportation industry, it has the potential to change customer buying projections, bids on specific lanes, and carrier shifts in certain geographical regions. It even changes the compliance that drivers must adhere to when loading at specific shippers.
I take pride in contributing to an industry that ensures Americans have access to high-quality goods and efficient resource distribution. Our direct involvement in this dynamic system allows us to continuously sharpen our skills and thrive amidst challenges. These challenges foster team cohesion and offer unparalleled opportunities for career growth. The next time I go to the grocery store and see a display of grapes or raisins, I will know that many people and businesses made a tremendous effort to cultivate, supply, and distribute them even through changing regulations. At ALC, we’re committed to upholding our core values of integrity, dependability, service, honesty, and family while meeting the evolving needs of our industry.
*****
Fernando Dominguez graduated from California State University Chico in 2020. He served as an embarkation logistics specialist in the United States Marine Corps Reserve as a sergeant, while beginning his career at the Allen Lund Company as a transportation broker in training. He was promoted to transportation broker after eight months and subsequently to carrier manager after a year and a half at the ALC San Francisco office.
fernando.dominguez@allenlund.com
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.
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
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.
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.”
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%.
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.
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.