Archive For The “Trucking Reports” Category
Avocado shipments to U.S. markets have been anything but normal this season for a number of reasons. And the bottom line there have been fewer of them.
You may have noticed significantly higher retail prices for avocados and there are reasons why, even though there has been around 63 million pounds being shipping weekly in the U.S.
During the week of April 25, distributors were quoting $75 for a carton of 48-size avocados from Mexico FOB Laredo, TX, which is the crossing point for most of Mexico’s production.
During the week ending April 24, the 62.9 million pounds packed and shipped during the week was the second-largest week of the calendar year, only exceeded by the first week of March when 63.8 million pounds were moved. Looking at total volume for the year compared to 2021 shows through April in 2021, U.S. shipments of avocados topped 967 million pounds. This year, only a little more than 800 million pounds have made it to market in that time frame, a 17 percent drop in volume.
The market price for avocados has been very strong since January, but it received an unintended bump from the USDA in mid-February and has been steadily climbing ever since. During Super Bowl weekend (Feb. 12-13), shipments from Mexico were suspended because of a threat to a USDA inspector who was conducting inspections in a Michoacan packingshed. The week-long suspension impacted shipments for two weeks with Mexico only sending about 40 million pounds to the U.S. market during that period, which was only about 40 percent of what typically would have been shipped.
The high volume 63.8-million-pound week occurred after shipments were once again allowed, but the shortage created heavy demand and prices started rising. In March, it was mostly in the $50s for the largest size while in early April, the FOB was in the $60s. Easter week always results in a significant drop in supplies from Mexico as that heavily Catholic country observes several holy days with no work. During the week ending April 17, Mexico only sent 21.7 million pounds to the United States, its lowest week of the year except for the suspension week.
Projections on volume reveal the market may stay right where it is through May and possibly well into June. This is when Peru starts to move into volume shipments to the U.S. market. The Hass Avocado Board projects, U.S. weekly volume of 50-55 million pounds in each week of May.
In May, Mexico’s volume is expected to decline from about 40 million pounds the first week of the month to about a 30-million-pound pace by the end of the month. California’s volume is expected to increase from an average of less than 9 million pounds per week in April to 13 million pounds a week in May. The current projection calls for Peru’s volume to hit close to 5 million pounds per week at the end of May before ascending to double-digit weekly volumes in June and reaching for 18-19 million pounds on a weekly basis in mid- to late July.
Peruvian avocado exporters are predicting more than 230 million pounds will come to the U.S. market this season, mostly from mid-June through August, but continuing into October.
Del Rey Packing Co. of Fallbrook, CA, is anticipating Peru might get started earlier with volume shipments to the United States because of the very strong market.
The Chilean Citrus Season kicked off in the last week of April as the first shipment of clementines set sail for the U.S. market. As the largest citrus exporter in the Southern Hemisphere, Chile will be supplying clementines, mandarins, navels, and lemons to the U.S. market, with heaviest volume starting in June and continuing through October.
The current total Chilean Citrus forecast across categories is as follows:
- Clementines: 45,000 tons
- Mandarins: 120,000 tons
- Navels: 90,000 tons
- Lemons: 90,000 tons
Logistical and climatic issues have impacted overall volume, resulting in an anticipated 12% decrease from 2021. Nonetheless, Juan Enrique Ortuzar, president of the Chilean Citrus Committee, remains optimistic about the industry’s future. “We are facing a challenging season in many respects, but citrus has grown into an incredibly strong, year-round category. Chilean citrus volume has increased by 25% over the past five years. With our quality proposition, we believe there will continue to be growth opportunities.”
The U.S. received 88% of all Chilean citrus exports in 2021, with 97% of clementines and mandarins shipped to the U.S. Volume will be lower this year (especially for clementines, where a volume decrease of 35% is anticipated), but the U.S. will continue to receive the majority of Chilean citrus exports.
Retail promotions will be the key focus for the Committee. According to Karen Brux, Managing Director of the Chilean Fresh Fruit Association, “This season, perhaps more than ever, it’s crucial that we work closely with the trade on flexible, targeted programs to drive sales. Having encountered numerous logistical issues over the past year, we’ve learned how to implement flexible programs that can be turned on and off quickly. The ability to be fast, nimble and creative will continue to be important during the citrus season.”
To this effect, the Citrus Committee is developing a new branded campaign that will include digital ads, influencer posts and virtual demos, as well as programs with shopping apps like Shopkick. With the return of more and more in-store merchandising opportunities, the Committee will also implement in-store programs that highlight the superior taste, nutrition, and convenience of Chilean Citrus.
Washington State asparagus shipments start this week launching the 2022 season with fresh asparagus available. Primary customers are regional supermarkets, farmers markets and restaurants this week. Shipments will extend into June.
In 2021, about 15 million pounds of asparagus were harvested, with an economic impact of $30 million for growers and packers. Washington State is one of the nation’s leading producers of domestic asparagus.
The Washington Asparagus Commission believes it grower members will produce over 20 million pounds this season. Last season was the first time Washington failed to harvest at least 20 million pounds in more than 50 years. Factors related to import competition and unseasonable weather.
Washington’s organic production of fresh asparagus accounts for approximately eight percent annually.
The health benefits of asparagus are bountiful. Research has found it can protect the body from chronic diseases such as cancer and heart disease. It’s fat-free, cholesterol-free, and its amino acid helps cleanse the body of toxins. It’s rich in fiber, Vitamins A, C, K, E, folate, and glutathione (anti-carcinogen and antioxidant).
Washington Asparagus Commission
Established in 1991, The Washington Asparagus Commission promotes Washington asparagus domestically, monitors and addresses trade issues, and advances environmentally sound production practices through research. The Washington Asparagus Commission represents the growers’ interest in areas and issues relating to the asparagus industry. waasparagus.com.
Florida mature green tomato volume is surging, while vine-ripes and romas from Mexico on in a seasonal decline.
Good growing weather in Florida is resulting in shipments of good volume for tomatoes from the Ruskin/Palmetto, FL region. About 400 truckloads per week are being shipped.
Meanwhile, vine ripe tomatoes will continue to decline this month. Just under 500 truckloads crossed the Mexican border into the Lower Rio Grande Valley of Texas last week. About 250 truckloads of Mexican tomatoes crossed through Nogales, AZ.
In Western Mexico there is a mixture of a new crop coming on with an existing crop. Grape tomato shipments with transition to Baja California during the next month crossing into San Diego.
The California desert region will start limited shipments of round tomatoes in mid-May, with the bulk of the California summer season beginning in mid-June.
Chilean exports of blueberries and table grapes both experienced year-on-year declines in the first quarter of 2022 amid severe logistical issues and higher costs.
Blueberry exports between January and March fell by 5 percent in volume to 89,478 tons and 9 percent in value to $429 million FOB, national association Fedefruta reports.
Meanwhile, table grapes dropped by 2 percent in volume to 253,300 tons and 16 percent in value to $397 million FOB.
In preseason forecasts, blueberry exports for the 2021-22 season had been pegged on par with last season, while table grapes made been expecting a big increase of around a quarter.
Despite the declines for the second and third most exported fruits over the period, growth in the leading category – cherries – was enough to lift overall fruit exports by 4 percent in volume to 933,000 tons and 7 percent in value to $2.7 billion.
“In a season in which we did not have weather problems, this harvest was impacted by the logistical bottleneck in the national ports, and in the delay of journeys and the increase in freight and input costs,” comments the president of Fedefruta, Jorge Valenzuela.
“Without a doubt, we have never had this problem at this level, due to freight costs that have tripled. There is fruit that is not being harvested because it is more expensive to ship than to leave it on the tree.
He added that because of the delay in logistics, about 4,000 containers of Chilean cherries did not arrive on time to the markets in China.
“Before the New Year we had a very good campaign, but the problems were seen after that holiday. We have a perishable product must arrive at the right times, and this season it was very difficult to comply. A lot of fruit was at sea for a long time,” he said.
Regarding blueberries, “I would not like to talk about percentages, but many loads of blueberries have been damaged. We have received information that blueberries have been the fruit most complicated by this logistical crisis. The loss of condition is naturally reflected in no sales and falling prices”.
U.S. total fruit imports by value soared by a quarter to a new record over January and February this year, with fresh, frozen and processed categories all seeing double-digit growth.
USDA data shows imports over the two months rose by 23 percent year-on-year to $4.9 billion.
In the previous four years over the same two months, the import value had always totalled between $3.7 billion and $4 billion.
However, the import volume did not rise at the same pace as the value, growing by just 7 percent year-on-year. But they still hit a record of 2.6 million tons.
Looking at the value, the ‘other fruit category’ – which is by far the largest and includes avocados, berries and bananas – rose by 19 percent to $2.5 billion. The rise was driven primarily by avocados and blueberries.
The citrus category saw the biggest growth, almost doubling to $253 million. That increase was driven by mandarins and limes.
The other categories listed by the USDA – deciduous, juices, processed, frozen, melons, dried and prepared – all experiencing growth ranging from the mid-teens to the mid-twenties.
Of the top-five supplying countries, import growth was largest from Mexico and Peru – at 27 percent each. Next was Chile, up 14 percent, Guatemala, up 11 percent, and Costa Rica, up 6 percent.
Peppers shipments for Prime Time International are winding down from Mexico and transitioning to the Coachella Valley.
For the next two and one-half months the California desert will be primary source of shipments for the company, based in La Quinta, CA.P
Prime Time is growing and shipping green, red, and yellow Bell peppers, along with white and bi-color sweet corn, eggplant and chilies.
The company continues to pack hot house Bell peppers, asparagus and sweet mini peppers in various regions across Mainland and Baja Mexico throughout the summer.
The transition to the Coachella Valley is underway now and will continue to migrate north in early summer to the San Joaquin Valley and Central Coast of California. The California desert’s warm, dry climate allows for peak growing conditions in the springtime.
Volume, quality and size peak in April, May and early June in Coachella.
The Coachella Valley has had a warm winter and early spring, leading Prime Time to expect an earlier start to the season. Sweet corn and Bell peppers are starting nearly two weeks earlier than usual for Prime Time. The company usually begins peak volume for the Memorial Day weekend, and this is expected again this season.
When Texas Gov. Greg Abbott ended longer border inspections he had implemented April 15, it was good news for produce haulers and produce shippers. The policy was started nearly a week earlier. However, some think it may be weeks before the supply chain gets back to normal.
The immigration policy decision came as Texas is trying to stop the open border policies of the Biden administration. It resulted in gridlock and hundreds of millions of lost dollars and delays in shipments including produce items such as avocados and strawberries.
Abbott’s move ultimately created a logjam of trucks between the U.S. and its largest goods trading partner. Vegetable producers say their produce is spoiling in idling trucks and they are losing hundreds of millions of dollars.
Nearly $9 billion of fresh produce crosses the Texas border from Mexico each year, said Dante L. Galeazzi, CEO and president of the Texas International Produce Association. And for the past week, that produce has been held hostage, with businesses and goods “being used as bargaining chips,” Galeazzi was quoted as saying.
What used to be a routine border crossing turned into a 30-hour wait for some trucks. Meanwhile, the fruits and vegetables in those trucks spoiled, leaving some produce department shelves sparse or empty in advance of the holiday weekend, he said.
“It could take a week or longer, up to probably three weeks, before the supply chain realigns,” Galeazzi said.
Losses to fruit and vegetable producers are estimated to be more than $240 million, said Lance Jungmeyer, president of the Fresh Produce Association of the Americas.
Consumers will also pay a price as producers look to recoup some of their losses and supplies run low.
Americans can expect to spend more on strawberries, avocados and asparagus, with the impacts being felt the heaviest in the Midwest and Northeast, Jungmeyer said.
It could ultimately take several weeks for supply chains to recover from the weeklong slowdown at the border, said Matthew Hockenberry, a Fordham University assistant professor who studies supply chains and logistics.
“It’s also just so hard to predict, because there’s so much supply instability right now,” he said, noting that China’s latest wave of lockdowns and the war in Ukraine are causing even more disruptions.
“The amount of supply uncertainty is so high that to add another straw here to the camel’s back is a dangerous proposition.”
Mexican grape shipments for 2022 should reach a new high, surpassing 25 million boxes, a 19.5 percent increase compared to last year, according to the Mexican Table Grapes Growers Association (AALPUM).
In a press confernce, the AALPUM president Marco Antonio Camou, AALPUM and the Fresh Produce Association of Americas (FPAA) reported what is expected for Mexican table grapes.
The largest volume is red seedless varieties at 46.9 percent, followed by white seedless varieties at 41.08 percent, then black seedless varieties at 5.97 percent and cotton candy at 4.70 percent.
The first harvest is expected for the beginning of May, with picking accelerating from May 15th onward. The early season should produce some 7.4 million boxes through May, followed by peak season with 16.59 million boxes in June. Finally the late season, in July, should produce around 1.45 million boxes of table grapes.
The season is expected to extend longer this year, past the U.S. independence day of July 4th into the middle of that month.
It was noted growers have been working with the planted crop to reduce the peak experienced in the past in May and June, and instead offer a more steady constant supply of the fruit.
Also, there are some expectations due to the delayed arrival of Chilean grapes, there will be some overlap between the stock of the two countries.
Shipping will continue from Nogales, AZ and other forward distribution points until mid‐July.
In addition to cotton candy, there are several hundred thousand boxes of exotic flavored varieties. In this estimate these varieties are included in their respective color group.
Gem-Pack Berries LLC of Irvine, CA and and Red Blossom Sales Inc. of Salinas, CA merged last October and combined the companies now has about 5,000 acres of strawberries in Florida, Mexico and California, as well as raspberries, blackberries and blueberries.
Gem-Pack reports the expansion now allows year around shipments of berries with the ability to continue growing.
During the next three months, strawberry shipments will be heavy, creating more opportunities to work on branding with retailers.
The company is a major shipper of strawberries. It will increase strawberry volume by 15 percent this year. Although, it has a few new items.
It is shipping pineberries out of Florida, as well as new blackberry varieties from Mexico. The company also added raspberries to its product line.
The company also offers organic strawberries out of Baja, Mexico, and Watsonville, CA.