Archive For The “Trucking Reports” Category
A California heatwave in 2018 did a “number” on the California avocado crop, which is expecting its smallest volume in a decade. The heat hit some of the state’s key growing regions, and most shipments this season will be limited to the Western states. Meanwhile, there was significant increase in avocado imports last year.
Current estimates are for production of 175 million pounds (79,000 metric tons), which would be 48 percent lower than last year’s 338 million pounds (153,000MT), according to The California Avocado Committee.
There hasn’t been this small of a crop since the 2009 season, when 174.5 million pounds were produced. Between then and the previous season production has fluctuated greatly, ranging from a high of 534.5 million pounds in 2010 to a low of 216 million pounds in 2017.
Two other major players in the global avocado market during the same period – Peru and South Africa – are expected to have back-to-back seasonal declines in production.
There are areas that should have had much better production which were hit hard by heat that went well over 100 degrees, with some areas reaching 116 or 117 degrees for a short period of time.
Adding to the problem was cold temperatures in the prior months, along with wildfires the previous year.
The duration of the season is set to be shorter than last year, with peak avocado shipments occurring from late March through July, as opposed to last year when volume continued into September.
Imported Avocados
There was a 15 percent increase in U.S. imported avocado volume during 2018, while crop value plunged 11 percent.
Trade statistics from the USDA indicate the total value of U.S. avocado imports totaled $2.35 billion, down from $2.64 billion in 2017. By volume, U.S. imports of avocados reached 1.04 million metric tons, up 15 percent from 900,200 metric tons in 2017.
The USDA reported Mexico accounted for 87 percent of the total volume and 88 percent of the total value of U.S. avocado imports.
U.S. imports of Mexican avocado grew 17 percent by volume but shrunk 11 percent in value in 2018, according to the USDA.
Peru was the second leading avocado supplier to the U.S., accounting for 8 percent of the value and volume of U.S. imports.
Chile ranked as the third most important avocado supplier, representing 3 percent of both volume and value of U.S. imports.
Early season imported grapes from South America have been lower, although with the arrival of March volume is improving.
To date, Chilean grapes imported through early March were down 32 percent compared to last year, reports the USDA, with imported Peruvian grapes being down 46 percent compared to the same time a year ago.
A Pro*Act market report dated March 6th notes imported grape supplies from Chile and Peru were increasing and quality was good in early March. A consistent volume of imported grapes is expected through early April, when the transition of Mexican grapes starts crossing the U.S. border in mid-April.
On March 6th the USDA’s Market News Service reported prices for extra large Chilean red seedless grapes at $20 to $24 per carton, up from $16 to $20 per carton the same day a year ago.
The early March market was under downward pressure with increasing volume and prices may decline with ample volume in the near term, according to the report.
A range of retail prices for red seedless grapes in selected U.S. cities, ranged from a low ad price of $1.28 per pound in Detroit to a high of $3.99 per pound in Seattle and New York.
Retail promotions of red seedless grapes were reported by the USDA in 7,637 U.S. stores for the week of March 1st with an average price of $2.48 per pound. That compares 8,186 stores promoting red seedless grapes a year ago at an average price of $3.07 per pound.
Bee Sweet Citrus Inc. of Fowler, CA is now shipping its Star Ruby grapefruit from the Central San Joaquin Valley and will continue to do so for the next few months. Georgia carrot loadings from Grimmway Farms also has started.
“Every year, Star Ruby grapefruit continue to grow in popularity and take the produce industry by storm,” said Bee Sweet Citrus Sales Representative Joe Berberian. “This variety is less acidic than other grapefruit varieties and has many health benefits.”
Low in calories and a nutritional powerhouse, Star Ruby grapefruit is the reddest of all grapefruit varieties. An excellent source of vitamin C and fiber, one serving can provide you with over half the recommended daily intake of vitamin C and can also help promote a healthy digestive system.
A grower, packer and shipper of California citrus, Bee Sweet Citrus was founded in 1987. It is a family owned and operated company, and ships over 15 different varieties of citrus.
Georgia Carrot Shipments
Grimmway Farms, headquartered in Bakersfield, CA, who is the world’s largest producer of carrots, has activated its Sparks, GA carrot packing facility and will be providing regional shipments through mid-May.
The company is offering conventional cello and jumbo carrots grown in the Southeast and packed under the Grimmway Farms, Bunny Luv and Premier labels.
“Sourcing carrots from our Sparks, GA facility is a great option for customers and distribution centers in the Northeast, Southeast and Midwest,” says Mike Anspach, Vice President of Sales at Grimmway Farms.
Grimmway is loading carrots from the Southeast facility Monday through Friday from 10 a.m. to 6 p.m. and Saturdays from 10 a.m. to 5 p.m . (EST) by appointment only. To book a loading appointment, please call 1-866-328-6867.
About Grimmway Farms
Family-owned and headquartered in Bakersfield, California, Grimmway Farms traces its roots to a produce stand opened by the Grimm brothers in the early 1960s. Grimmway is a global produce leader and the world’s largest producer of carrots. Grimmway supplies more than 65 organic, USA-grown crops and brands include Cal-Organic Farms and Bunny-Luv.
A small increase in Mexican citrus shipments to the U.S. is expected this year, a new report predicts. Nearly all of Mexico’s fresh oranges are exported to the U.S., originating from Sonora.
The U.S. Department of Agriculture Foreign Agricultural Service report said Mexican fresh orange and lime production is forecast to continue to grow for marketing year 2018-19.
According to the report, growers in the northern states of Mexico have said that fresh fruit exports to the U.S. for processing purposes have increased due to the decrease in Florida orange production.
The report forecasts that Mexican fresh orange exports will increase slightly to 78,000 metric tons in marketing year 2018-19.
Nearly all fresh orange exports go to the U.S., and most oranges exported to the U.S. are navel oranges grown in Sonora, according to the report.
Meanwhile, the report said Mexican Persian and key lime exports for 2018-19 are expected to be strong and are pegged at 725,000 metric tons.
The spring Persian lime harvest begins in early April, the report said. Depending on prices, the Persian limes are typically shipped to European markets before being shipped to the U.S.
Lime exporters continue to expand into the European and Japanese markets, but still supply about 40 percent of the U.S. and Canadian markets.
International prices for Persian limes began at U.S. $16 to $18 per 40-pound box in October and November; prices during April and May 2018 were as high as $63 per box, the report said.
Mexican grapefruit exports are projected at 20,000 metric tons, with strong European prices pulling volume there over the U.S. market.
Mexican produce crossing at Nogales, AZ, grossing about $3400 to Chicago.
A trend of fewer apple shipments this season continues. There were 78.9 million (42-pound) bushels of apples remaining in storage for the fresh market as of February 1st. This is 12 percent lower than at the same time last year, and 7 percent lower than the 5-year average.
The apple industry had 78.9 million (42-pound) bushels of fresh-market apples in storage as of Feb. 1, 12% less than the same time in 2018, and 7% off the five-year average.
Apples headed to the processing market are seeing similar drops, with 14 percent less fruit on February 1st than at the same time in 2018, with a drop of 13 percent compared to the 5-year average, according to the U.S. Apple Association’s monthly Market News report.
The top fresh-market varieties on February 1st (and unchanged from five-year average), according to the apple association, were:
- Red delicious — 21.65 million bushels (-19 percent);
- Gala — 15.48 million bushels (4 percent);
- Fuji — 10.15 million bushels (12 percent);
- Granny smith — 8.52 million bushels (-20 percent);
- Honeycrisp — 6.54 million bushels (123 percent);
- Cripps pink/Pink Lady — 4.11 million bushels (18 percent); and
- Golden delicious — 3.61 million bushels (-47 percent)
Regional fresh apple holdings for February 1st were (in bushels):
- Northeast — 5.67 million;
- Southeast — 354,000;
- Midwest — 2.96 million;
- Southwest — 168,500; and
- Northwest — 78.87 million.
Washington apples – grossing about $4200 to Chicago.
By John Vena Inc.
PHILADELPHIA – As mandarin production in California starts to slow for the season, shipments of premium-quality Israeli fruit have just begun to arrive on the East Coast for the U.S. market.
The primary Israeli mandarin export is the Orri, a hybrid developed specifically to maintain flavor and integrity through the international supply chain. The first containers of the season arrived to specialty produce importer and wholesaler John Vena Inc. (JVI) in Philadelphia at the end of January.
“We’re very pleased with the quality of our first containers. The fruit is already eating better than any other citrus I have had in recent memory, and I have been handling Orri in particular for some years – more or less since the variety’s notoriety began to spill over from Europe,” reports JVI president John Vena. “We’ve already been getting brix readings as high as 14. Luckily for anyone who loves citrus, shipments are anticipated to continue through May.”
This year was particularly unusual for members of JVI’s grower partner, Granot, a cooperative of 45 agricultural kibbutzim that has roots going back to the early 1940s. For reasons not yet understood, fruit across the country matured much more rapidly than anticipated, leading to a good supply of large fruit early in the season unlike any ever seen. The cooperative was packing fruit as early as mid-December, several weeks prior than projections estimated, and production saw record volumes of larger sizing with limited medium and small fruit in direct contradiction to the bell curve that typically characterizes the harvest.
Despite the atypical start, growers expect a particularly strong Orri crop for 2019 with consistent volumes and excellent quality. Smaller fruit has already begun to arrive and ratios are expected to normalize in the coming weeks, although large fruit packed in a bulk 10-kilogram value case, which is often favored in the ethnic retail segment, is anticipated to remain abundant for the season.
About John Vena Inc.
Established in 1919, John Vena Inc. (JVI) is a fourth-generation, family-owned and -operated specialty produce importer, wholesaler, and distributor providing a full suite of services including custom packing, program ripening, and logistics. JVI handles a wide range of specialty items for foodservice, retail, and processing, including fresh herbs, greenhouse vegetables, gourmet foods, tropical fruits, ethnic produce, wild edibles, microgreens, edible flowers, and baby vegetables.
Consolidation of two recent purchases of Washington state apple growers and packers and other tree fruit highlights a trend that will continue, in the opinion of industry and financial experts.
One of the state’s biggest family-owned and operated apple companies, Broetje Orchards has been sold. Broetje Orchards LLC, FirstFruits Marketing of Washington LLC, and Snake River Housing Inc. were involved in the purchase.
The Tri-City Herald estimated the value of the real estate alone — more than 6,000 acres of fruit orchards — at nearly $300 million, although no purchase details were disclosed.
The business will be operated by three new entities: FirstFruits Farms LLC, FirstFruits Marketing LLC; and FirstFruits Community LLC, according to a news release.
Ralph and Cheryl Broetje founded Broetje Orchards more than 35 years ago, and it now grows, packs and ships close to 7 million boxes of apples a year, according to the release.
The new owner, the Ontario Teachers’ Pension Plan, plans a seamless transition to avoid disruptions for employees and customers.
Jim Hazen, former business manager at Broetje Orchards, is CEO and president of the new company, FirstFruits Farms LLC, and Chuck Zeutenhorst is general manager.
Another large-scale purchase involving Washington apple companies happened about the same time as the Broetje Orchards deal.
International Farming Corp. of North Carolina acquired Legacy Fruit Packers, Valley Fruit, and Larson Fruit, all of Yakima Valley. The combined companies are known as Columbia River Orchards.
The acquisition includes 4,000 acres of orchards and two packing facilities that handle about 4 million boxes of fruit annually. The purchase includes interests in Sage Fruit, Yakima; and Pacific Coast Cherry Packers, Wapato.
The Land Report earlier reported Microsoft co-founder Bill Gates paid $171 million last fall to acquire approximately 14,500 acres of farmland in southern Washington.
Predictions for fresh produce imports compared with a November forecast are increased in the latest fiscal 2019 trade estimates from the U.S. Department of Agriculture. However, it keeps the estimate for fresh produce exports at about the same level.
U.S. imports of fresh fruit in fiscal 2019 (year ending Sept. 30) are projected at $13.7 billion, up $600 million from both the November estimate and fiscal 2018 imports. Trade statistics from the USDA revealed October-November U.S. imports of berries (excluding strawberries) totaled $623 million, up 25 percent from $498 million the same period the previous year.
Imports of fresh vegetables are projected at $8.4 billion for fiscal 2019, up $100 million from the previous estimate and slightly higher than U.S. fresh vegetable imports of $8.36 billion in fiscal 2018. For October and November, the USDA reported U.S. imports of fresh peppers totaled $210 million, up 8 percent from the same period the previous year. Value of fresh tomato imports in October and November totaled $374 million, up 3 percent from year-ago levels.
Meanwhile, fresh fruit and vegetable exports, at $7.4 billion, are forecast unchanged from the November estimate, according to the USDA, and up from $7.29 billion in fiscal 2018.
USDA trade statistics show that U.S. apple exports in October-November 2018 were $151 million, down 26 percent compared with $202 million for the same period the previous year.
Whole and processed tree nut exports are pegged at $9.1 billion, also unchanged from November’s estimate but up from $8.76 billion in fiscal 2018.
Processed fruit and vegetable exports are unchanged from the previous forecast of $7.2 billion and are up from $7.03 billion in fiscal 2018.
Heavy crossings of imported Mexican produce into the leading border areas of Texas’ Lower Rio Grande Valley and Nogales, AZ are continuing before a seasonal decline in volume begins in March.
Wintertime is peak time for Mexico’s fruit and vegetable shipments into the U.S. and Canada that includes a long list of items.
Imported Mexican produce Starts in late January and pretty much continues through September, with biggest volumes coming from avocados, limes, tomatoes, bell peppers, cucumbers, broccoli, cabbage, watermelons, onions, limes, and mangoes.
For example, mostly Mexican vine ripe tomatoes with much lesser amounts of grape and plum tomatoes are currently averaging about 3,450 truck loads crossing at Pharr, TX.
Divemex is a major Mexican grower which partners with The Oppenheimer Group of Vancouver, BC, which handles good volumes of conventional and organic bell peppers, mini peppers and cucumbers. The operations also move a lot avocados in a year around program as well as seasonal berries.
Fresh Farms of Nogales is shipping good volumes of Mexican zucchini, cucumbers, English cucumbers, sweet corn, green bell peppers, colored bell peppers, eggplant, hard squashes and green beans.
At the Port of Nogales, AZ, tomatoes always provide the top volume crossings during the winter. Currently Mexican tomatoes crossing into Nogales are averaging around 4,500 truck loads weekly. Still, there remains good volume with items such as cucumbers, bell peppers, squash, melons and eggplant..
Edinburg, Texas-based Frontera Produce Ltd. looks to Mexico in the winter for several items, said Trevor Stuart, account manager.
“Over the next three months, our main import commodities out of Mexico for Frontera are your full line of chili peppers, bell peppers and limes, and, later, the kick-off to the start of mango season,” he said.
Frontera Produce Ltd. of Edinburg, TX has its biggest winter volume with Mexican chili peppers, bell peppers and limes, followed in April and May by mangoes.
During the fall season the American produce shippers are loading onions from storages. Kicking off the New Year, Mexico is shipping fresh onions, followed closely by sweet onions from the Lower Rio Grande Valley of Texas.
Mexican produce from Nogales, grossing about $3300 to Chicago.
Mexican produce from South Texas, grossing about $4700 to New York City.
Northwest produce shipments this time of the year are pretty much limited to apples, pears, potatoes and onions, with apples easily leading the pack in terms of volume.
Apple shipments, mostly from the Yakima Valley and Wenatchee Valley in Washington are providing most of the Northwest loads, averaging about 2,750 truck load equivalents each week. While the total volume is expected to be down this season, there are still plenty of loading opportunities.
Washington also is shipping pears, although on a much smaller scale. Originating from the same areas apples, about 400 truck loads are being hauled weekly.
Northwest organic pear shipments were about 900,000 boxes last season and is expected to be about 2 million boxes this time around.
Loading of Bartletts are starting to wind down, and shipments are now more focused on green anjou, bosc and red anjou, with plenty of supplies seen on all three types for the rest of the season.
The Northwest pear shipping season runs through June.
The largest volume of onions out of the Northwest are coming out of Washington’s Columbia Basin and the adjacent Umatilla Basin in Oregon. Nearly 350 truck loads are being moved a week from sheds.
As for Northwest potatoes, the biggest volume is originating from Western Idaho and Malheur County, Oregon. Over 8oo truck loads of spuds are being shipped each week.
Washington apple and pears – grossing about $6500 to New York City.
Idaho-Oregon potatoes – grossing about $4700 to Atlanta.