Archive For The “Trucking Reports” Category
by Riveridge Produce Marketing
SPARTA, Mich. – As part of an expanded partnership with Ridgeview Orchards, Riveridge Produce Marketing will market a larger share of Michigan asparagus in 2017.
“We’ve worked with Riveridge for a number of years on the apple side and they’ve always been on the forefront of marketing, food safety and quality,” said Al Dietrich, co-owner Ridgeview Orchards. “They have more than 25 years of produce relationships on the apple side and we knew it would be a natural bridge to add our asparagus marketing to their portfolio.”
With this larger volume, Riveridge has added packaging options, revised current packaging and partnered with a Southwest Michigan packer to capture some of the first harvested asparagus of the season.
Shafer Lake, a Riveridge partner for apple packing, has added an asparagus packing line. Based in Southwest Michigan, Shafer Lake will receive and package asparagus directly from that region which harvests sooner than the bulk of Michigan asparagus grown in the Hart region.
At this time, and contingent on the weather, packing of Michigan asparagus is anticipated between May 5-7.
“We didn’t hesitate when Ridgeview asked us to come aboard with asparagus marketing. It gives us an opportunity to expand our Michigan produce offering and create new options for our customers,” said Don Armock, president, Riveridge Produce Marketing. “Ridgeview Orchards has the best in mind for the end customers and are willing to try new things – we’re looking forward to working with them for years to come on asparagus.”
Real-time inventory will be in place thanks to shared software between Ridgeview and Riveridge. As asparagus is packed, the system will be updated and refreshed automatically every five minutes to Riveridge. Sales staff can then see where there may be opportunities to move extra inventory and be ready when buyers have additional needs.
Additionally, as more consumers like to know more where their food comes from, Riveridge has emphasized Michigan grown on packages with a larger outline of the state and created a Michigan-grown tag for the one-pound bundles. MAAB research shows 76 percent* of consumers are more likely to purchase US-grown asparagus over imports and 55 percent* of them are willing to pay more for that option.
It is only days until the first Mexican grapes of the season start crossing the border through Nogales, AZ. Meanwhile, some California vegetables continue to struggle to make volume with a shipping gap continuing.
We’re about a week from the starting of the table grape shipments from the Mexican state of Sonora with both the Hermosillo and Caborca areas reporting good crops heading into the season. A total volume of 19 million cartons is estimated this season for Mexican grapes.
Generally, the Mexican table grape season starts the first week of May lasting all the way through the first or second week of July, with varieties like Red Globe. However, the vast majority of the total volume is quickly declining by the end of June.
Sonora’s table grape shipments are extremely important for the fresh produce industry as it happens right between the end of the South American season, mainly from Chile and Peru, countries with the highest exports to the United States, and the beginning of the California season, mostly from the San Joaquin Valley.
Mexican vegetables, tomatoes and melons crossing through Nogales – grossing about $3200 to Chicago.
California Lettuce Shipments
Farmers in California have been plagued by drought for several years, but the problem in 2017 is too much rain. That has limited shipments of vegetable items for salads and it may be weeks before shipments show any semblance of normal.
Warmer than usual weather brought an early end to the growing season in Southern California and western Arizona. That was followed by heavy rain, pushing back planting in coastal regions of California, which is the largest U.S. fruit and vegetable producer. The is primarily the Salinas Valley and to a lesser extend the Santa Maria area.
The delays have led to shortfalls of crops including lettuce and broccoli and sent wholesale prices soaring. The cost of a carton of 30 celery heads has almost tripled since early February to $25 f.o.b.
Assuming the California weather cooperates, shipments of lettuce, broccoli, cauliflower and some other items should eventually become more consistent. However, shipping gaps will be occurring and we’ll be well into May before the situation show substantial improvement.
Meanwhile, lettuce from the Huron area in the San Joaquin Valley is about finished.
Salinas Valley vegetables – grossing about $6400 to New York City.
Here’s a spotlight on Georgia with some good and some not so good. A glimpse of the Georgia spring vegetable shipments is made. There’s also news on two auctions of assets of former Vidalia onion shippers
Georgia vegetable shipments are getting underway in very light volume for the summer shipping season. Warm growing conditions is resulting in one of the earliest starts in memory. For example Southern Valley at Norman Park is now loading cabbage, yellow squash and zucchini. These items will be soon be followed by vegetables in the first half of May ranging from eggplant, to cucumbers and peppers and later, sweet corn.
2 Vidalia Bankruptcies Ending in Auctions
Gerrald’s Vidalia Sweet Onions of Stateboro, GA will be for sale in May at a bank-ordered auction, which includes the land, facilities and equipment. Online bidding starts May 11, with bidding on the real estate closing May 25 and bidding on equipment closing May 26.
Included in the auction will be 323 acres of farmland, about 150 acres of which is irrigated. An 85,000-square foot packing facility, late-model John Deere equipment, row crop implements, packing equipment and more than 3,500 produce field bins will also be for sale, according to Weeks Auction Group of Moultrie, GA.
The property was last planted in 2016, though not with onions because it was a rotation year. The land is also suitable for growing carrots, watermelon, cotton, peanuts and other crops. The property also includes a 27-acre pecan orchard. The auction comes as a result of bankruptcy and subsequent foreclosure.
The auction will be the second of a Vidalia onion operation in the span of a month.
Plantation Sweets of Cobbtown, GA will be sold in a bank-ordered auction today, which includes the land, facilities and equipment. Plantation Sweets filed for Chapter 11 bankruptcy in July 2016. In response to a motion to convert to Chapter 7 or dismiss the case, a judge ruled in December to dismiss. The case was terminated March 29.
Assets up for sale in that auction will include about 567 acres of farmland. Equipment and micro-bins used by the operation will be sold April 27 in a separate auction.
Coachella Valley grape shipments start soon, kicking off the domestic grape season for the United States.
Nestled just outside of Palm Springs are California’s first grape shipments each year. Coachella Valley grape loadings will get underway in early May, but it will be at least mid May, if not a little later before there is good volume.
In its prime, the Coachella Valley routinely shipped in excess of 10 million cartons per season. Even a decade ago, volume ranged from 7 million to 9 million cartons for the season. Today, 4 million to 5 million cartons is more typical as acreage has declined over the years for a variety of reasons, with nothing being a greater factor than soaring real estate prices for both commercial and residential demands. But that decline may have reached a plateau, according to some. There are now fewer, but larger growing/shipping operations and new varieties of grapes are being introduced to make the Coachella Valley more competitive, especially with Mexican grapes. The latter now has production about double or more what Coachella used to have in its heyday.
The two regions have very similar grape seasons, although Mexico typically starts shipping a few days to a week or so earlier than Coachella. Both Coachella and Mexico serve as a bridge from the end of the imported Chilean grape season and when Arvin District grapes (Bakersfield) gets underway in late June. Arvin and other production areas in the San Joaquin Valley provide the vast majority of California grape shipments.
There still remain a number of old time, well established grape shippers either based in the Coachella Valley, or which have operations there. For example, there is Anthony Vineyards, Inc., Sun World International LLC.; and Stevco, all in Coachella; Richard Bagdasarian, Inc., and Tudor Ranch, Inc., are both in Mecca.
Mexican mango exports to the U.S. are picking up as the second half of the season should be much better than the first half. Meanwhile, as South Texas onion shipments finish up, a new crop is expected to start a little further to the north.
Mexico is the fifth-largest producer mangos worldwide, and is the largest single exporter of fresh mangoes. About 35 percent of Mexico’s mango production is exported, with 90 percent going to the U.S. In total, Mexico produces an estimated 1.6 million tons of mango each year.
Mexican mango exports are recovering from an initial drought that affected the start of the shipping season. However, during the second half of the 2017 season, industry figures are forecasting an upturn in total production and are comparing it to 2016. Mexican mango exports to the U.S. are picking up after lower volumes during February and March and are expected to overtake last year’s figures.
Guatemala, which is nearing the end of its export window, has also experienced a similar season to Mexico. However, Guatemala certainly benefitted from the slow season start of Mexico, which helped its exports to the U.S. Guatemala has also enjoyed a positive mango export season, with final production volumes expected to total 25 to 30 percent more than last year. Up until the week of March 27, the country had harvested 653,780 boxes, and the total at the season’s close in late May is expected to reach more than 5 million boxes. About 90 percent of Guatemala’s mango exports go the U.S.
Texas Onion Shipments
Mexican onions are finished, while sweet onions off of Lower Rio Grande Farms are quickly finishing, with the last loads expected the week of April 24th. Meanwhile, a few more Texas 1015 sweet onions are about to start out of the Winter Garden District, just south of San Antonio. For example, Southwest Onions of Mission, TX will starting harvesting from the Winter Garden area around May 1-5. The company should continue shipping until the first week of June.
Mexican tropical fruits and vegetables crossing through South Texas – grossing about $2800 to Chicago; $4400 to New York City.
F
rom Nogales to California, the Northwest and Colorado, here are some springtime loading opportunities with fresh fruits and vegetables.
Nogales Crossings
While springtime crossings of imported Mexican vegetables is past its peak, there are about 1500 truck loads of watermelons being loaded per week, with around 500 truck loads of vine ripe tomatoes available. There’s much less volume with squash, peppers and some other vegetables. Mexican grape loadings should be available in very light volume starting next week, with decent loading opportunities not coming until around the second week of May.
Mexican watermelon and tomato shipments – grossing about $3200 to Chicago.
California Produce Shipments
With lettuce volume crashing in the Imperial Valley and the Yuma area, lettuce loadings have made the seasonal shift to the Huron district on the Westside of the San Joaquin Valley. Huron is moving around 650 loads of head lettuce a week, accounting for nearly 87 percent of the state’s lettuce shipments right now. Huron will continue well into May before giving away to California coastal shipping areas.
In fact, Santa Maria Valley has very light loadings of lettuce, celery, cauliflower, broccoli and other vegetables. Heaviest Santa Maria volume is with strawberries, a little over 300 loads per week. Strawberry loadings in California are heaviest out of Ventura County, around 500 loads a week. Santa Maria could be a little frustrating this season. Although new crops are just starting, weather related shipping gaps are seen.
In Kern County around Bakersfield, about 375 truck load equivalents are being loaded weekly. The new crop of stone fruit should have its first pickings the week of April 24th.
Huron lettuce – grossing about $6000 to New York City.
Potato Shipments
As always, Idaho leads potato volume accounting for nearly 1900 truck load equivalents a week, although a substantial amount of this is moving by rail…..Colorado’s San Luis Valley come next in volume averaging around 750 loads a week. The Columbia Basin in southern Washington and adjacent Umatillin Basin in Northern Oregon are shipping about 60 percent of Colorado’s volume.
Twin Falls, ID area potatoes – grossing about $5100 to Atlanta.
The forecast for all Florida orange shipments in April hasn’t changed from the March outlook, at 67 million boxes; but grapefruit shipping volume has been reduced.
Growers are battling citrus greening in the groves, resulting in the smaller crop. Following the revised USDA forecast shows the total orange volume includes 33 million boxes of the non-valencia oranges (early, midseason, and navels) and 34 million boxes of valencia oranges. Florida is the top orange-producing state in the U.S., with California second, at a projected 51 million boxes for 2016-17.
The final numbers for Florida citrus won’t be known until the end of July.
For the previous 10 seasons used in the regressions, the April all-orange forecast has deviated from final production by an average of 3 percent, with five seasons above and five below, and differences ranging from 7 percent below to 5 percent above, USDA reported.
The forecast of non-valencia production was unchanged, at 33 million boxes. The survey, conducted March 29-30, showed 99 percent of the early-midseason rows were harvested. Non-valencia estimated utilization to April 1, with an allocation for non-certified fruit, was 32.9 million boxes.
The navel forecast was lowered by 50,000 boxes at 800,000 boxes, 2 percent of the non-valencia total.
The forecast of valencia production remained at 34 million boxes. Final fruit size was close to the minimum, requiring 242 pieces to fill a 90-pound box. The survey indicated final droppage at 30 percent, slightly below the maximum. A survey showed 28 percent of the valencia rows were harvested.
The forecast of all grapefruit production was lowered 800,000 boxes to 8.10 million, with changes made in both the white and red grapefruit forecasts. The white grapefruit forecast was lowered 200,000 boxes, to 1.5 million, and the red grapefruit forecast was lowered 600,000 boxes, to 6.6 million.
Estimated utilization to April 1, with an allocation for non-certified use, of white grapefruit was 1.42 million boxes and red grapefruit, 6.24 million. Florida leads the U.S. in grapefruit production, with Texas’ projected 4.7 million boxes second.
The forecast of early tangerine varieties — fallglo and sunburst — was finalized, at 600,000 boxes with 225,000 boxes of fallglo and 375,000 boxes of sunburst. Harvest is complete for these varieties this season. The royal tangerine forecast was raised 20,000 boxes to 240,000. The later-maturing honey tangerine forecast was raised 130,000 boxes, to 520,000. California’s projected 22 million boxes of tangerines and tangelos leads the U.S., with Florida second, at 1.64 million.
The tangelo portion of the all tangerine forecast remained at 280,000 boxes. Estimated utilization to April 1 is 277,000 boxes, which included an allocation for non-certified fruit.
Florida spring vegetable shipments appear to be building, and they should be, considering it’s mid-April. With the increasing volume, demand for trucks is picking up, resulting in some modest rate increases.
Now through May should be the best time for obtaining loads out of the Sunshine state. For the immediate future most loads are available out of the Central and Southern portions of the state. Northern Florida has a few blueberries available, but it’s early in the season and volume is increasing. Still, Northern Florida is going to be pretty scarce overall for produce loads until the seasonal migration of watermelons and a few other items start there, which is several weeks away.
South and central Florida mature green tomatoes, along with much smaller volumes of roma (plum), grape and cherry tomatoes are averaging around 950 truck loads per week. However, the single biggest volume item right now is sweet corn, with around 785 truck loads per week. There is still good volume with potatoes (mostly red and other colors) with about 385 truck loads per week.
After this, you’ll find good volume with items ranging from green beans, to cucumbers and bell peppers, each averaging roughly 225 truck loads a week. Aside from the aforementioned items, there’s much lesser volume with such vegetables as eggplant, escarole-endive, radish, spinach, etc.
South Florida watermelons have recently started, but this week accounted for less than 200 truck loads. However, volume will be quickly increasing prior to the harvest gradually moving to central and northern Florida, before migrating up the East Coast. In fact, after the Florida heat ends vegetable shipments, probably sometime in June, watermelons will easily have the biggest volume in Florida.
Currently Florida is the number one destination for volume loads (but that don’t mean you will avoid multiple pick ups). Enjoy it while you can, because it may be “slim pickins” down the road apiece with Georgia vegetables and especially blueberries, that got hit by a March freeze.
South Florida vegetables – grossing about $2400 to Cincinnati; $3000-plus to Brooklyn, NY.
Imported Chilean grapes enter their traditional seasonal decline this month. Entering April, red grapes and green Thompson grapes were dominating Chilean shipments to the United States, although many black grapes seemed to have better quality. Meanwhile, come this fall a big diesel tax increase is coming from California.
California’s Coachella Valley red grapes should get underway about May 10th, two weeks later than a year ago. Imported Mexican grapes typically start several days before Coachella, but Mexico also is behind last year and is not expected to have any shipments until the first week of May.
High prices on Chilean grapes due to light supplies may encourage some growers to “clean up their vineyards” and put everything in the box that they can get their hands on. In other words, if you’re planning to haul late season imported Chilean grapes, use caution when loading and make sure your receiver knows what kind of quality is being put in the truck.
Onion Shipments
Vidalia onions shippers have been loading trucks for weeks, but under Georgia regulations they cannot legally pack and ship those onions as Vidalia onions. This is an attempt to protect the Vidalia name as a sweet onion and early shipments have bigger chances of having onions with high pungency levels – in other words – hot onions. That changed today because April 12th is the official start of the Vidalia sweet onion shipping season……Meanwhile, Texas sweet onions apparently are having some quality issues due to rain. An already short crop is expected to end shipments early, probably by the end of April.
California Passes Fuel Tax Hike
California just gave truckers another reason not to truck there. The California legislature passed a bill last week increasing the excise tax on diesel fuel by 20 cents per gallon to help fund a $52 billion infrastructure plan. Gov. Jerry Brown s expected to sign it into law this week. which becomes effective November 1st.
The increase in the tax rate will bring the state’s excise tax on diesel fuel from 16 cents to 36 cents per gallon over 10 years. It also increases the state sales tax on diesel from 9 percent to 13 percent. The state’s gasoline tax will also increase from 28 cents to 40 cents per gallon during the same time period…..Several other state also are considering increase taxes on fuel.
Northwest cherry shipments should kick off in early June, with peak loading taking place in July, although there should be significant supply in August. This means a more traditional shipping season.An official forecast has yet to be issued but a quality full crop of about 20 million boxes is expected by some observers. In 2016 NW cherry shipments totaled 21 million boxes, and a record volume of 23 million boxes were loaded in 2014.
The Northwest had one of the coldest winters in nearly a quarter of a century and this will lead to a later start to the season than a year ago. Cherry picking should start the first week of June, compared with a May 15 start date in 2016. The 2016 season was the earliest ever for Northwest cherries.
The 2017 shipping season should have peak cherry shipments during July, although good volume of fruit is expected in August. The past two season there has been about 200,000 to 500,000 boxes shipped in August. This season around 2 million or more boxes should be shipped in August.
By comparison, California cherry shipments should be around 7 million to 8 million boxes (see last week’s report), meaning little overlap with Northwest cherry shipments.
Most Northwest cherries originate out of Washington, Oregon, Idaho, Utah and Montana. However, 95 percent of the production comes from Washington and Oregon.
The later start date means there will be more fruit in July this season, along with good volumes in August. While there will a good amount of fruit available for the Fourth of July holidays, volumes would undoubtedly be lower than last year due to the later season. Last year there were 12 million boxes shipped in June, but this year there will probably be 7 or 8 million boxes shipped during June.
About 30 percent of the NW cherry crop will be exported this season, with a majority of the fruit destined for Canada.
Apricot Shipments
Good, fairly normal apricot shipments are expected this season, getting underway around the third week of June out of Washington.
Washington apples and pears – grossing about $4000 to Dallas.