Archive For The “News” Category
Once again tenants at the Hunts Point Wholesale Produce Terminal are talking with the New York City about construction of entirely new warehouses to accommodate the market’s growing space needs.
A previous $400 million plan has been eliminated that would have added capacity on the city-owned site — while keeping about 1 million square feet of existing warehouses. More recent negotiations with the NYC’s Economic Development Corp. focus on new buildings being constructed in stages. Each of members of the 38-member cooperative would have the old warehouses torn down.
Strict standards for water and soil testing are now in place from new FDA safety regulations. The regulations require labels identifying the originating farm on every food box.
The 113-acre market, which sits on a peninsula between the South Bronx and East rivers, is the world’s largest supplier of fresh fruits and vegetables. It serves the region’s wholesale and retail businesses, including supermarkets, produce stands and mom-and-pop stores.
The co-op merchants have long complained about the site’s shortcomings — cramped quarters and vehicle congestion. At one point Hunts Point wholesalers threatened to pull up stakes and move to New Jersey.
Food both arriving and departing the market is handled by air, rail and truck. T here are 13 miles of interior rail track along with 120,000 tractor-trailers and a million buyers with small vans and trucks all types vying for space.
Because there is not enough cold storage in the warehouses, hundreds of parked refrigerated trailers operate on the market’s fenced-in site. These trailers run primarily on diesel fuel contributing to pollution.
Another problem is Hunts Point lacks the electrical capacity to support the infrastructure.
The city is reported to be working with the market to fund $10.5 million worth of capital improvement projects over a seven-year period, including lighting and electrical upgrades.
Additionally, $8.5 million in city capital has been committed for rail upgrades. The city also will be working with the market on the long-term redevelopment plan.
Even so, a new facility will almost certainly cost more to develop than the plan fleshed out just a few years ago, when the co-op owners balked at sharing half the cost.
Hunts Point is in the last five years of the seven-year lease option with NYC.
Excellent loading opportunities for California grapes are continuing into the fall shipping season, while strawberries also are moving in good volume. Meanwhile, here’s an update on Georgia fall vegetable shipments.
California Grape Shipments
California grape shipments are above of those of a year ago. About 82.9 million million of grapes were loaded in the San Joaquin Valley in the week ending September 26, up from 70.7 million pounds in the same week last year. However, this was down from 88.1 million pounds the previous week.
Season-to-date, about 2.1 billion pounds of grapes had shipped in the U.S., down from 2.2 billion pounds last year at the same time.
San Joaquin Valley grapes and melons – grossing about $4200 to Chicago.
California Strawberry Shipments
California strawberry volumes should continue heavy as fall loadings increase. Weekly volumes shipping in September were at record levels for that time of year, with the trade shipping over 5.5 million trays a week during the month.
During the second half of September, there were volumes from both the Salinas/Watsonville area and the Santa Maria growing district. Higher-yielding varieties were coming into production in from both areas, with being a factor behind the shipping surge. The week of September 19 some Oxnard growers were already shipping some fall strawberries.
By the first or second week of October, loadings from Oxnard should be going good, although fall acreage is down slightly from last year.
Salinas Valley vegetables and Watsonville strawberries – grossing about $6600 to New York City,
Georgia Vegetable Shipments
Late-summer growing conditions have been good for production of southern Georgia cabbage, cucumbers and greens. There will be very light loadings of cabbage in late October. However, volume will pick up significantly in early to mid-November. Good loading opportunities are seen for the holidays, including Thanksgiving, Christmas and New Years.
Cucumber shipments started in south Georgia a couple of weeks ago, with loadings expected to continue into the first half of November.
In mid-September, Georgia growers typically begin harvesting leafy greens, including kale, collard greens, turnip roots and mustard greens. and ramp up larger volume in mid-October.
Affiliated Foods Midwest Cooperative Inc. members have voted 410-2 to combine their cooperative with the Kansas City, Kan.-based cooperative Associated Whole Grocers Inc. of Kansas City, KS.
Approval from the members of AFM based in Norfolk, NE was the last hurdle for the unification of the two groups. A vote on the issue took place at AFM’s annual shareholders meeting in Omaha, NE.
“While we were anticipating tremendous support for the unification by AFM’s members, I was humbled by the virtually unanimous vote in favor and by the enthusiasm and standing ovation the members demonstrated at AFM’s shareholders meeting,” David Smith, president and CEO of AWG, said in the release. “AWG will indeed be stronger together by joining forces with this amazing group of like-minded retailers.”
AFM president and CEO Martin Arter will move into the role of senior vice president and manager of the northern region of AWG under the new structure. He will oversee operations for the Nebraska and Great Lakes divisions.
Arter indicated the combination of the cooperatives should be beneficial for both.
“Before our members voted to unify, they learned how they would benefit from a lower cost of goods and an expanded array of services,” Arter said in the release. “Our boards knew that unifying the cooperatives would produce substantial financial rewards for the retailer-members and would produce long-term growth.”
The unification is set to take effect in October.
The expanded AWG will serve more than 3,500 member stores in 35 states from nine wholesale divisions.
Affiliated Foods Midwest is a retailers’ co-op serving the states of Oklahoma, Kansas, Colorado, Wyoming, Nebraska, Missouri, Illinois, Wisconsin, Iowa, South Dakota, North Dakota, Minnesota, and Michigan. Affiliated Foods Midwest has announced construction has begun on a new distribution center in Kenosha, Wisconsin, to be complete in early 2009.
It distributes Shurfine products, and is affiliated with IGA (supermarkets).
It was founded in 1931 in Plainview, Nebraska, it took the name General Wholesale in 1936, and the name Affiliated Foods in 1977.
It is a member of Retailer Owned Food Distributors & Associates and a member-owner of Topco.
by National Watermelon Promotion Board
Nearly 1,000 consumers voted for their favorite entry in this year’s Watermelon Carving Contest, hosted by National Watermelon Promotion Board (NWPB). The annual contest, which takes place every July to honor National Watermelon Month, encourages watermelon fans everywhere to create and carve watermelon works of art.
Each carving submitted in the contest could be viewed at an online gallery at watermelon.org. NWPB encouraged fans to vote for their favorite overall carving from one of five categories.
“The Pop Culture category, which was new for 2016, included entries of watermelons used as serving bowls, beverage kegs, a wedding cake, and even two different Prince portraits!” said Stephanie Barlow, NWPB Senior Director of Communications. “The submissions really highlighted watermelon’s uniqueness in its versatility.”
While several of the entries were submitted by professional fruit carvers, the Judge’s Choice Award and First Place Award in the Basket Category was given to a beginner carver, showing that creativity and ingenuity is just as important as technical skill. Staging and category fit were also carefully considered by judges of the contest.
In addition to Pop Culture and Basket, other categories for this year’s carving contest included Elegant, Etched and Event/Occasion. Two entrants were also honored for “Judge’s Choice” and “People’s Choice” carvings. Winners from the five different categories received more than $1,000 in Amazon gift cards. Additionally, four carvers were awarded “Honorable Mention” prizes, also Amazon gift cards.
View the complete list of entries, as well as the winning carvings at http://www.watermelon.org/TheSlice/2016-Watermelon-Carving-Contest-Winners. For more watermelon carving inspiration, tips and tricks, visit Watermelon Board’s Pinterest Board or the “Carvings” page on watermelon.org where new carvings are regularly added.
About National Watermelon Promotion Board
The National Watermelon Promotion Board (NWPB), based in Winter Springs, Florida, was established in 1989 as an agricultural promotion group to promote watermelon in the United States and in various markets abroad. Funded through a self-mandated industry assessment paid by more than 1,500 watermelon producers, handlers and importers, NWPB mission is to increase consumer demand for watermelon through promotion, research and education programs.
Watermelon, the produce leader in lycopene, is a multivitamin unto itself, with each serving providing an excellent source of Vitamins A and C and a good source of Vitamin B6 with only 80 calories. Watermelon consumption per capita in the United States was an estimated 14.8 pounds in 2015. Watermelon volume in the United States was approximately 4.7 billion pounds in 2015. For additional information, visit www.watermelon.org.
Lyons, GA – L.G. Herndon, Jr. Farms, Inc. is announcing the release of its newest line of packaged greens, SuperFit Greens. The launch of SuperFit Greens introduces an innovative concept for Herndon, offering healthy traditional greens in a convenient new package.
Herndon Farms has been the leader in produce categories including Vidalia onions, sweet corn, sweet potatoes, and bunch leafy greens for more than 30 years. As owner Bo Herndon has watched the leafy greens category change recently, he has envisioned creating a line of packaged greens that would engage consumers. “Since we started the farm in the late 70s, we’ve always grown southern, cooking greens. With the rise of items like kale and with consumers looking for more convenience with their greens, we knew it was time to create the right brand for today’s consumers.
The name SuperFit Greens was born out of a passion to inspire consumers to think healthy when deciding what to eat. “‘Eat your greens’ isn’t a passing fad,” remarks John Williams, Sales and Marketing Director for Herndon Farms, “Consumers are more health conscious and we want to support that with our products, to support Americans who are returning to a more nutrient-rich diet.”
The company recently expanded their operation with the construction on a state-of-the-art 44,000 square foot processing plant on their farm in southeast Georgia, to accommodate SuperFit Greens packaging. Williams states that freshness and shelf life were at the forefront of their decision to pack on-site. “The entire process from harvest to packaging will occur at the farm. We’re very confident the quality of our product will stand out because of this,” confirms Williams.
All of Herndon’s items are Primus GFS certified and the new facility will follow these same guidelines. Herndon added, “food safety is an extremely important part of what we do every day and our plans for our company’s future. We have a food safety team in place to help handle all the requirements an operation like ours requires.”
Williams is also confident that their innovative packaging, the SuperFit Greens website, social media channels, and direct marketing efforts will appeal to consumers. “We are focused on inspiring consumers through engagement, education and with the high quality of greens they will see offered under the SuperFit Greens brand,” adds Williams.
The company will begin shipping SuperFit Greens this October from their farm in Lyons, Ga.
About L.G. Herndon Farms, Inc.:
L. G. Herndon Jr. Farms is a family owned and operated business with over 30 years of experience growing Vidalia® sweet onions, Peruvian and Mexican sweet onions, Lil’ Bo’s Petite sweet Vidalia onions, sweet corn, green leafy vegetables, and most recently, sweet potatoes. Herndon Farms strives to maintain a reputation of high-quality and consistency that has come to define the Herndon name. For more information, visit vidaliasfinest.com.
By The Idaho Potato Commission
EAGLE, IDAHO — The world’s largest potato on wheels traded its tires for buoys in celebration of the 2016 Idaho® Potato Harvest. On Wednesday, August 24, the giant spud embarked on her maiden voyage through the New York Harbor – beginning in Brooklyn and passing all the major landmarks in South Manhattan including the Brooklyn Bridge, Statue of Liberty and Freedom Tower.
Over the next several weeks 320,000 acres in Idaho will be harvested and yield more than 13 billion pounds of Idaho® potatoes. New York is the largest consumer of Idaho® potatoes, and two iconic New York-based restaurants, Macy’s and Toffenetti’s, were instrumental in establishing Idaho® baked potatoes as a premium menu item back in the 1930’s.
New Yorkers consume more potatoes than any other state. To show its appreciation, the Idaho Potato Commission (IPC) donated 12,000 pounds of Idaho® potatoes (equivalent to the weight of the Big Idaho® Potato on the Truck) to Holy Apostles Soup Kitchen, New York’s largest emergency food program. They’ve consistently served 1,000 homeless and hungry people every weekday for the past 30 years.
“New Yorkers have played a major role in building the Idaho® potato brand and making the baked Idaho® potato one of the most sought after side dishes on the menu,” explained Frank Muir, President & CEO of the IPC. “It was a privilege for us to spend time at Holy Apostles Soup Kitchen and provide and serve healthy Idaho® potatoes to those who are less fortunate.”
The Big Idaho® Potato Truck was built five years ago to celebrate the IPC’s 75th anniversary. The organization wanted to celebrate the milestone in a big way, and more importantly, include the entire country in the celebration. The idea for the Truck was born from a vintage postcard depicting a giant potato on a flatbed trailer with the quote, “We Grow ‘Em Big in Idaho.” To date, the Truck has traveled over 100,000 miles promoting the heart-healthy benefits of the Idaho® potato and donating to local charities through its “A Big Helping” program.
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About The Idaho Potato Commission
Established in 1937, the IPC is a state agency responsible for promoting and protecting the famous “Grown in Idaho®” seal, a federally registered certification mark that assures consumers 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, which differentiates them from potatoes grown in other states.
The Big Idaho® Potato Truck travels across the country carrying the world’s largest potato on wheels — a 28 foot long, 12 foot wide, 11.5 foot tall, 6 ton spud. It was built to celebrate the Idaho Potato Commission’s 75th anniversary in 2012 and was intended to be on the road for one year. But it was such a hit the journey continued and today it’s more popular than ever. For more information visit www.bigidahopotato.com.
Specialized carts designed to keep employees out on the floor culling produce and reducing wastage, is being implemented by Wal Mart Stores Inc., the latest step in a push to improve its fresh food offerings and revive sales growth, according to a recent news story by Reuters.
“Quality carts”, as they are being called by the world’s largest retailer, are being deloyed at 500 stores. There are plans to have them in all of its nearly 5,000 U.S. outlets by the end of the third quarter, Vice President for Central Operations Shana DeSmit told Reuters in an interview.
Equipped with weighing scales and a box to collect the discarded produce, the carts are being equipped weighing scales and a box to help employees carry out tasks that were typically carried out in the back room. With the carts, employees can sort fresh produce by removing items nearing expiration and weighing them to manage inventory counts and help with replenishment.
Wal-Mart’s service levels have suffered due to fewer employees in store interacting with consumers.
The retailer is introducing one such cart per store and will eventually add more, said DeSmit. The produce collected through the carts is either donated or sold through markdowns.
A renewed emphasis on fresh food, which includes produce, deli items, meat and baked goods, has been a crucial turnaround strategy under U.S Chief Executive Officer Greg Foran. Wal-Mart is the largest grocer in the United States, with nationwide sales of $167 billion in 2015.
Wal-Mart has started revamping the layout of the food section at 3,000 stores, in recent months, including supercenters and its smaller Neighborhood Market stores. It has taken steps such as lowering display cases and opening up floor space so that shoppers can see more clearly across the food area. It has replaced black plastic crates with ones that look like wood to give the store more of a farmer’s market feel.
In February, the retailer said it would hire hundreds of fresh food managers to improve its offerings. The company is on schedule to have such managers in a third of its stores nationwide by the end of the year, Wal-Mart spokesman Lorenzo Lopez said.
by Legion Logistics, LLC
Florence, KY – Legion Logistics, one of the region’s fastest growing third-party logistics providers, announced recently that they placed #513 on the Inc. 5000 list. This is the third straight year Legion has appeared on the Inc. 5000 list, and this year, they are the #1 company for growth in both Kentucky and the Cincinnati Region.
“I remember counting down the days until we could be eligible to be considered for the Inc. 5000 list.” Antony Coutsoftides, CEO and co-founder, says of this honor, “But now we have been ranked three years in a row and I continue to dream of ways we can improve our ranking in the nation and within our industry.”
The Inc. 500 is an annual list that began in 1982 ranking private companies that are booking the biggest sales growth throughout the year in their region. For 34 years, the Inc. 5000 list, an expansion of the Inc. 500, has been introducing and honoring the fastest growing privately held companies in the U.S. and Legion has made the list three years in a row. This year, the magazine will formally congratulate all of the honorees at the Inc. 5000 Conference and Awards Ceremony in San Antonio, Texas in October.
Legion Logistics, LLC is a service disabled veteran-owned third-party logistics provider (3PL) based in Florence, Kentucky. What all those hyphens don’t tell you is that Legion is committed to exceptional customer service, fair dealings with trucking companies and an outstanding, veteran-friendly work environment. Founded in 2009, the Legion specializes in full truckload, less-than-truckload, government freight, hazardous materials and produce shipping. Learn more at jointhelegion.com.
Merchants in the Hunts Point Terminal Market continue talking about new and modern facilities, but in reality they are going nowhere. Realistically, construction of such a facility will never happen.
For example, look at the 20014 agreement signed by market officials and the city’s Economic Development Corporation, which renewed the wholesale market’s lease for seven years.
There also have been major improvements by large produce wholesalers such as Nathel & Nathel Inc., S. Katzman Produce Inc., and E. Armata Inc., which operates from 24.5 market units and has made large investments into its facilities.
These wholesale distributors are not wasting their monies. When you see companies spending this kind of money, you know Hunts Point isn’t going anywhere.
The historic Hunts Point neighborhood location in the South Bronx, provides an ideal location for the facility because it is close to New York City’s area metropolitan boroughs.
There has been talk about a new market in New York for more than a decade.
How would you get all of these merchants into the new market over time or at the same time? I don’t foresee any change.”
“There’s been a lot of talk about this market moving or rebuilding,” said Sheldon Nathel, vice president of Nathel & Nathel recently. “This has been going on for 13-14 years. A lot of the people on the market seem to be putting a lot more money into their stores lately. We followed suit. Who knows where this market will be in five years?”
Federal government monies are being actively pursed by Hunts Point leaders to upgrade the world’s largest fresh produce terminal. There are 22 million people in the Tri-State area that Hunts Point serves.
The facilities at Hunts Point are antiquated and everything from old plumbing to grid lock is constantly causing problems. There often are electrical lines reported exploding and transformers breaking for lack of capacity.
Supermarkets remain a “powerhouse in fresh,” despite an ever-growing variety of food shopping outlets, especially fresh produce, which resides as a “supermarket stronghold” among 68 percent of shoppers.
According to Anne-Marie Roerink, who reviewed the results of the Food Marketing Institute’s second annual Power of Produce report, Supercenters (16 percent) are the second most popular outlet for fresh produce purchases, followed next by warehouse clubs (5 percent).
Highlights of this year’s produce shopper study found nearly 25 percent of shoppers switch outlets when purchasing fresh produce versus the bulk of groceries, primarily to full-service supermarkets, farmers’ markets/produce stands and specialty organic stores.
Roerink, principal of 210 Analytics, which prepared the “mega trends” produce study, warned that younger generations are drawn to alternative channels. She sees this as “a red flag for traditional retailers, as losing the produce basket may result in losing additional spending in center store.”
Ringing up a whopping $61 billion in annual sales, fresh produce is in hot demand with no signs of a slow down. Powered by a 4 percent growth rate, the category is a lucrative and influential element for grocery baskets, which average nearly $30 more with fresh produce than one without.
Beyond price, the most successful incremental produce purchase drivers, per the Power of Produce study, include:
- Eye-catching displays, which are extremely influential
- Produce cross-merchandised in other parts of the store
- Impulse through ideation, including recipes, serving ideas and sampling
- Education/information, especially nutrition call-outs that are relevant to the audience
Notably, consumers are placing increased value on transparency – how and where the crop was grown – as evidenced by how support for the local farmers/economy overtook perceived freshness as the top reason for buying locally-grown. This sentiment also applies double-digit sales gains for organic fresh produce and an expressed need for “free-from” products. Still, organic remains a niche segment to date, according to the Power of Produce consumer research study, reflecting 8 percent of total produce sales, with usage skewing to the more affluent shoppers and families with children.