Posts Tagged “feature”
Strong growth with the production of South African citrus, mainly soft citrus, new orange varieties, lemons and limes is estimated to continue in the 2020-21 shipping year, according to a new report from the USDA’s Foreign Agricultural Service.
The expected growth, is based on the increase in area planted, improved yields, high level of new-plantings coming into full production, and the minimal impact of COVID-19 on labor and input supply. The increase is expected to be partially offset by drought conditions in some production areas of the Eastern Cape, and hail damage in some production areas of Mpumalanga, according to the report.
Duty free exports of all citrus types to the United States under the African Growth Opportunity Act reached a peak of 91,402 metric tons in 2020 and are expected to continue their strong annual growth in 2021, as the U.S. is still considered a premium market.
The value of U.S. imports of South Africa citrus totaled $94.9 million, up 72% from $55.3 million in 2019 and up 45% from $65.5 million in 2018.
Citrus in South Africa is grown across the country mainly in the Limpopo, Eastern Cape, Western Cape, Mpumalanga, Kwa Zulu Natal, Northern Cape and North West provinces, according to the report. A total of 233,092 acres was planted to citrus in South Africa in 2020, a 9% increase from 214,507 acres in 2019. This growth trend is estimated to continue in 2021, based on the significant investments and aggressive new plantings of soft citrus, lemons, and new varieties of oranges.
While oranges are the biggest citrus type produced in South Africa and account for 48% of the total citrus area planted, the report said there has been notable growth in the area planted to soft citrus (25%) and lemons/limes (19%). This growth is driven by the attractive investment returns, profit margins from soft citrus and lemon production, and a spike in global demand.
U.S. food expenditures generally followed several predictable trends over the past 25 years. But 2020 was an exception as people in the U.S. spent approximately $1.56 trillion on food, which was a 5.3 percent reduction from the $1.65 trillion spent in 2019, according to a USDA report.
The disruption of trends in food spending is attributed to the pandemic limiting mobility of U.S. consumers and the economic recession coming with it for most of 2020.
The drop from 2019 to 2020 was only the second time total food expenditures decreased over the last 25 years, with the other time in 2009 during the Great Recession.
The decrease in total food spending in 2020 was driven by an 18.3 percent drop in spending at restaurants and the like. Because of the additional cost of eating away from home, that decrease outweighed an 8.5 percent increase in food-at-home (FAH) spending as consumers shifted to buying more food from retailers.
In April of last year, U.S. consumers spent about two-thirds of their food dollars at FAH retailers, the highest value on record. FAH and food-away-from-home (FAFH) spending increased 7.9 percent and 36.2 percent, respectively, from April to May 2020.
This increase may be due in part to the stimulus checks and increased unemployment benefits that were provided with the enactment of the CARES Act at the end of March 2020. However, FAFH spending in May 2020 was still lover than the previous year, while FAH spending was higher.
The last quarter of 2020 saw monthly increases in FAH spending, an expected outcome of colder weather and holiday meal preparation, which resulted in record-high FAH spending in December.
FAFH spending decreased in November by 10 percent and showed a slight increase in December but remained well below 2019 levels.
While COVID-19 vaccine distribution for select groups began in the United States in December 2020, the post-pandemic landscape of the economy remains unclear.
The USDA, Economic Research Service will continue to monitor the effects of the pandemic on food expenditures as more data become available and will examine possible long-lasting behavioral changes in the way people purchase food.
Washington potato acreage has increased this season, but is still short of what it once was.
The Washington State Potato Commission reports nearly 160,000 acres is forecast, up about 5,000 acres from 2020, but down about 5,000 acres from the state’s maximum potato acreage.
Harvest got undeway in the first half of July in the Columbia Basin with red and yellow potatoes, followed by russet potatoes the last week of July.
Washington also ships red potatoes and there has been increasing volume with gold potatoes.
“In a lot of other areas (in the U.S.), there’s been a swapping where red acres are going down and yellow acres are going up, but we’ve been able to maintain our red acres because of the great quality (of the state’s red potatoes),” the commission reports. “We’ve been able to maintain our red acres, but there is a growing interest in yellow potatoes, so we’re starting to see more of more of those grown.”
There are two major potato growing regions in Washington, the biggest consisting of the Columbia Basin, which accounts for about 90% of the state’s potato production. Growers there typically ship potatoes to the fresh market and to processors.
In Northwest Washington’s Skagit Valley, growers raise potatoes strictly for the fresh market.
U.S. organic sales soared to new highs in 2020, jumping by a record 12.4 percent to $61.9 billion.
It marked the first time that total sales of organic food and non-food products have surpassed the $60 billion mark, and reflected a growth rate more than twice the 2019 pace of 5 percent, according to the 2021 Organic Industry Survey released Tuesday by the Organic Trade Association.
Black beans, flour, and chicken broth are not typically out of stock. They were in 2020. In that unprecedented year, organic’s reputation of being better for you and the planet positioned it for dramatic growth.
In almost every organic food aisle, demand jumped by near-record levels, propelling U.S. organic food sales in 2020 up a record 12.8 percent to a new high of $56.4 billion. In 2020, almost 6 percent of the food sold in the United States was certified organic.
The COVID-19 pandemic caused consumer dollars to shift almost overnight from restaurants and carry-out to groceries, with traditional staples and pantry and freezer items flying off the shelves. Consumer habits were upended, online grocery shopping and grocery deliveries exploded, and new products were tried as families ate three meals a day at home.
“The pandemic caused abrupt changes in all of our lives. We’ve been eating at home with our families, and often cooking three meals a day. Good, healthy food has never been more important, and consumers have increasingly sought out the Organic label. Organic purchases have skyrocketed as shoppers choose high-quality organic to feed and nourish their families,” said Laura Batcha, CEO and Executive Director of the Organic Trade Association. Batcha announces the new data Tuesday at Organic Day at Natural Products Expo West.
Stocking the pantry, refrigerator and freezer with organic
Leading the charge for healthy food was the desire for fresh produce. Fresh organic produce sales rose by nearly 11 percent in 2020 to sales of $18.2 million. Frozen and canned fruits and vegetables also jumped with frozen sales alone rising by more than 28 percent. Including frozen, canned and dried products, total sales of organic fruit and vegetables in 2020 were $20.4 billion. More than 15 percent of the fruits and vegetables sold in this country now are organic.
Pantry stocking was overwhelmingly the main growth driver in 2020. As bread making and cookie baking took kitchens across the country by storm, sales of organic flours and baked goods grew by 30 percent.
Consumers also turned to “meal support” products to help them in the kitchen. Sales of sauces and spices pushed the $2.4 billion condiments category to a growth rate of 31 percent, and organic spice sales jumped by 51 percent, more than triple the growth rate of 15 percent in 2019.
Meat, poultry & fish, the smallest of the organic categories at $1.7 billion, had the second-highest growth rate of nearly 25 percent.
Supply constraints
“The only thing that constrained growth in the organic food sector was supply,” said Angela Jagiello, Director of Education & Insights for the Organic Trade Association. “Across all the organic categories, growth was limited by supply, causing producers, distributors, retailers and brands to wonder where numbers would have peaked if supply could have been met!”
Jagiello, who spearheads the coordination of the survey for the association, also noted that because of the pandemic, not only ingredients were taxed, but packaging—bottle lids, pouches, corrugated cardboard, bottles for dietary supplements—was in short supply as were workers and drivers to transport product, making it hard for producers to ramp up processing to meet consumer demand.
Steady growth in non-food sector
The organic non-food category did not see the same exceptional growth in 2020 as organic food, but its growth held steady with prior years. Sales of organic non-food products reached $5.4 billion, up 8.5 percent and only slightly below the 9.2 percent reported in 2019.
Reflecting the pandemic and as in the conventional market, organic sales were driven by personal hygiene, hand sanitizers and cleaning products. Sales of organic household products saw record growth of 20 percent.
Textiles and fibers, the biggest category of the organic non-food sector, saw sales slow as stores closed, and clothes buying dipped. That said, the category fared better than expected given its ties to brick-and-mortar retail and the shutdown of that sales channel for a significant period of time. For the year, U.S. organic fiber (linens, clothing and other textiles) sales grew at a rate of 5 percent, compared to 12 percent in 2019, reaching sales of $2.1 billion.
What’s ahead in the “new normal”
While the growth in organic food sales is not expected to continue at 2020’s fast rate, organic food sales are expected to stay on a strong growth path in 2021. It’s anticipated that the grocery industry at large will get a lasting lift from the pandemic for the foreseeable future as many consumers continue to cook more at home.
“We’ve seen a great many changes during the pandemic, and some of them are here to stay,” said Batcha. “What’s come out of COVID is a renewed awareness of the importance of maintaining our health, and the important role of nutritious food. For more and more consumers, that means organic. We’ll be eating in restaurants again, but many of us will also be eating and cooking more at home. We’ll see more organic everywhere – in the stores and on our plates.”
This year’s survey was conducted early in 2021 from January through March 2021 and was produced on behalf of the Organic Trade Association by Nutrition Business Journal (NBJ). Nearly 200 companies completed a significant portion of the in-depth survey. Executive summaries of the survey are available to the media upon request. The full report can be purchased; online orders can be placed on this page.
“Rates keep going higher and higher, adding difficulty to the already complex produce industry.”
Intergrow Greenhouses, a farming company located in Upstate NY, focusing on the production and sale of greenhouse grown tomatoes, is thankful to have their own private trucking fleet to help service their customers. Stating the primary goal of their own fleet is to give the best possible service to top tier retail customers. Understanding the importance of “On-time, In-Full” is fresh, perishable produce they have taken transportation into their own hands!
“When you contract a load through an outside broker or carrier you lose some of the visibility and control required to really deliver the best service possible. That’s why we’ve invested in our own fleet and in a freight market like this it has really paid off having the ability to run our own loads.” Explains Dirk Biemans, President of Intergrow Greenhouses.
“Although we are close to major markets, there is a lot of freight needing to be moved in this area of the US and there is, and has been more demand than supply in the market. That’s why we are so grateful to be running some of our own trucks.” Says Bill Cook, a 30yr transportation veteran and current Logistics Manger at Intergrow Greenhouses. “During the peak season we have as many as 50+ loads a week shipping out of our facilities, of course our own band of guys can’t handle of that high volume, so they remain on our retail accounts, providing consist and reliable transportation for the business. “ Currently expanding their business with another 10acre greenhouse, Intergrow says they are first and foremost a grower and farmer but saw the need to deliver consistent quality service to their customers in order to grow their business. “Here at Intergrow we’re not only striving for the highest quality product but also reliability. Our customers need to have confidence we can deliver of premium product, reliably and consistently throughout the year.” says Kris Gibson, VP of Sales and Marketing “This last part of the puzzle, transportation, has really helped us grow these past years.”
As rates increase Intergrow has also seen their own fleet benefiting them in other ways… cost control. “Our own transportation costs have increased as well, but in a controlled in regimented manor.” Says Biemans. “We are not at the mercy of the market for some of our most important loads. “Rates keep going higher and higher making it adding difficulty to the already complex produce industry. No matter the freight market you are expected to deliver product under your contracted price.”
Intergrow is currently looking to hire additional drivers to their fleet and asks anyone interested to email Bill Cook at logistics@intergrowgreenhouses.com.
A notable increase in volume of Peruvian mandarin exports is being seen so far this season, rising by at least 25 percent compared to the 2020 season.
Until June 20, Peruvian early variety mandarin exports totaled over 54,000 metric tons (MT) at US$61 million, according to Agraria. This shows a 25 percent increase in volume and a 30 percent rise in value year-on-year.
It’s estimated that in July, mandarin exports could reach over 62,000MT at $71 million, which would mean a growth of 31 percent in volume and 35 percent in value year-on-year, the publication reported.
Early Peruvian mandarin varieties include satsumas and clementines, as well as later hybrids. Early variety mandarins are usually exported between the first week of April and the second week of July. The season normally ends in October.
Peruvian exports of satsuma and clementines to the U.S. totaled over 14,000MT at $19 million with shipments falling eight percent in volume and remaining similar in value. Despite the decrease in exports to the U.S., it remains the main destination for early variety mandarins with a 26 percent share.
The UK is the second most important destination for mandarin exports of early varieties with a 22 percent share. Exports reached over 10,000MT for $12 million, a 15 percent increase in volume and an 18 percent rise in value year-on-year.
Peruvian exports of late variety mandarins to the Netherlands grew 68 percent in volume and 72 percent in value, totaling over 5,000MT for $9 million.
Canada saw a decline in volume and value year-on-year, 22 and 24 percent less, respectively. The country holds a nine percent share of Peruvian satsuma mandarins and clementines, a six percent decline from last year.
After the early mandarin season, the late varieties follow between June and September among which Murcott, Nadorcott and Malvaceo stand out.
Through June 20, late variety mandarin exports totaled almost 14,000MT, a 69 percent increase year-on-year.
The main destinations were China, with a 37 percent share and the U.S. at 34 percent.
Naturipe started shipping its proprietary Seedless Muscadine Vine Drops in the past week or so.
Native to the Southeast, the original Muscadine is a unique grape that is crisp, sweet, tart and packed with nutrients, the company says.
“We’re excited about this year’s Vine Drop crop because we expect to drastically surpass our original anticipated volumes,” says Jim Roberts, President of Sales at Naturipe.
“We’re excited to bring this uniquely seedless variety to market for consumers everywhere to experience the flavor they have always enjoyed, without the seed. We will be packing the Vine Drops in a 1 lb clamshell at a great introductory price to encourage consumers to try this wonderful fruit.”
July marks the start of Naturipe’s harvest for the seedless Muscadine in Georgia. This will continue through the first frost, which is usually in October.
As one of the U.S.’s oldest grape varieties, Muscadines come with a rich history. They were first discovered by Englishmen in 1585 on Roanoke Island, North Carolina where the Mothervine continues to thrive today. Muscadines have been long known for their use to make sweet wine. In fact, the wine industry was largely based on scuppernongs and muscadines in the 1800s and early 1900s until Prohibition.
But the deliciousness and intriguing history of these berries is not the reason they are a star superfruit. Muscadines are Mother Nature’s richest source of polyphenolic antioxidants and are packed with many good-for-you nutrients.
“Muscadines are packed with polyphenols, making them among the most nutritious fruits out there,” says Wendy Reinhardt Kapsak, Registered Dietitian and President and CEO of Produce for Better Health Foundation.
“Polyphenols are naturally-occurring, healthful compounds found in plants. Acting as antioxidants, they promote digestion and brain health; reduce inflammation; protect against heart disease and type 2 diabetes; and even reduce the risk of certain cancers,” she continues. “Add these gems to your breakfast, lunch and dinner or simply eat them as a snack, and they will do wonders for your health – and excite your tastebuds.”
Per capita consumption of avocados in the U.S. avocado could rise from 9 pounds per capita in 2021 to 11 pounds in five years, according to a new avocado market analysis by Rabobank.
Authored by David Magana, senior analyst for fresh produce and tree nuts for Rabobank, the report signals good prospects for both short-term and long-term consumption gains.
For 2021, the report said healthy consumer demand for avocados is fueled by economic recovery, sustained retail sales and increasing foodservice activity.
Increased shipments from Peru and Mexico will offset a lighter California crop in 2021. However, avocado availability in the U.S. may be tight in some weeks later this summer when California’s and Peru’s seasons end and Mexico transitions to the new season.
Per capita avocado consumption, has jumped from 4 pounds in 2010, rising to 8.5 pounds in 2018. Following that trend of per capita gains of about 8% annually, per capita avocado consumption could exceed 11 pounds per year by 2026.
Consumer demand for avocados has been increasing, and one promising element of future demand is changing U.S. demographics, according to the report. Younger generations feature a greater proportion of Hispanic consumers.
About 25% of Gen Z consumers are Hispanic, compared with the 17% share among millennial consumers and 12% among Gen X consumers.
“Hispanic consumers in the U.S. tend to consume more avocados than the average U.S. consumer,” the report said.
Mexico’s per capita consumption, as a point of reference, is 18 pounds, which the report said “shows the headroom that remains” in less mature markets.
About 40% of U.S. households said they purchased avocados in the past 12 months, according to the report. That is lower than fruits such as blueberries, lemons, watermelon, grapes, oranges and strawberries and significantly lower than apples and bananas, which are purchased by about two-thirds of households.
Still-rising production prospects in Mexico, Peru and Colombia point to further increases in shipments to the U.S. and other markets.
Mexico will continue to be the main provider of avocados to the U.S. market, with shipments to the U.S. rising by single-digit percentages in 2021.
Acreage of avocados continues to rise in Mexico, with current acreage near 568,000 and about 50,000 acres of non-bearing groves yet to produce commercial fruit.
California’s avocado production has been flat to declining over the past two decades, but rising imports have allowed U.S. per capita consumption to gain.
Avocado production and exports from Chile have been flat to declining, reflecting tight water availability in some regions and growth in competing markets in Europe and Asia.
Peru has become an increasingly important supplier of avocados to the U.S. market. Avocado planted acreage in Peru is estimated at 106,000 acres in 2021, up from about 72,000 acres in 2016. Exports from Peru in 2021 are expected to reach a new record of 460,000 metric tons, a 26% increase compared with a year ago and almost 160% higher compared to 2016.
Avocado production and exports in Colombia will expand rapidly, the report said, with most shipments directed to European and Asian markets.
There should be increased exports of Argentine lemons to the U.S. this season, despite a reduced export forecast by the USDA.
The USDA said that it now expects the world’s top lemon-growing country to export 180,000 metric tons (MT) of the fruit, down 10,000MT from its earlier estimate. Around 45,000MT are expected to be sent to the U.S., up by around a third from a year ago.
The lower total export projection also comes despite the production outlook improving.
During the spring of 2020, a severe drought during blossom and fruit set in the main lemon growing area of the country was expected to reduce fruit volumes.
However, precipitation during the summer rainy season allowed Argentine lemon trees to recuperate, increasing production above low initial estimates.
Production of 1.15 million MT is now expected, 120,000MT more than the earlier forecast. However, the figure remains below normal, with 1.49 million MT produced last year.
The projected decline in exports largely due to below-normal production, adequate fruit supply in Northern Hemisphere fruit-producing countries, and strong competition by South Africa.
Additionally, although the EU on May 1, 2021, reopened the market to Argentine fresh lemons and oranges after the detection of citrus black spot (CBS) last year, some exporters may need additional investments to ensure their compliance with the EU’s technical requirements, the USDA report said.
The export forecast for this year is also well below the 256,000MT sent abroad last year.
At the beginning of that season, local contacts were optimistic about export prospects due to decreased supply in the northern hemisphere, increased consumer demand and expanded market access.
However, the EU’s detection of CBS in May 2020 saw Argentina voluntarily withdraw from the EU market in mid-July 2020 with approximately 20,000 MT of lemons reoriented to processing and/or exported to non-traditional markets like the U.S., which reopened for Argentine lemons in 2017 after a 17-year hiatus.
“The fresh lemon export business remains profitable, however, with production costs, such as labor, inputs, energy, inland and ocean freight increasing, and high inflation rates, the competitiveness of the lemon sector has been affected,” it said.
“Furthermore, although the continuous depreciation of the Argentine peso and the elimination of export taxes make exports more price-competitive in foreign markets, a decrease in export rebates and high-interest rates, partially offset that advantage.”
During MY 2019/20, the EU remained the largest export market for Argentine fresh lemons with 51 percent of Argentina’s total exports, followed by Russia, with 23 percent, and the U.S., with 13 percent.
After regaining market access to the U.S. in 2017, Argentine lemon exports to the U.S. have shown an upward trend, rising from 10,640MT in 2018 to 33,963MT last year.
For 21, with about forty-five certified exporters, fresh lemon exports to the U.S. are estimated at about 45,000 MT, depending on the recovery of pre-covid consumption patterns in the U.S. and the impact of a 25 percent tariff levied in October 2019 by the US on EU fresh citrus imports, the USDA said.
The analysis of Argentina’s request for market access to the U.S. for sweet citrus is ongoing.
An estimated 20% reduction in cherry shipments compared with earlier expectations is predicted in a new report from the Northwest Cherry Growers.
Expectations and comments from the fourth and last cherry crop estimate indicate about a 20% total crop reduction from the heat.
“That reduction is spread throughout the Northwest but was particularly damaging to the bing and rainier cherry crops, which were in the peak of harvest in many regions when the heat arrived,” the group said. Skeena also was heavily affected by high temperatures and winds, according to the report.
With supermarket ads only second to peaches in mid-July, the group said cherry promotions should line up for a strong showing through the end of July.
“While our latest orchards will continue to deliver a small but steady supply until the end of August, the shipments for the 2021 yellow cherry season have significantly decreased over the past seven days,” the group said.
On July 16 the industry’s daily shipment average for the previous week remained over 350,000 boxes a day, which is still within the normal range of a July crop.
By way of comparison, Northwest Cherry Growers said the shipments for the same week were 377,000 boxes a day in 2020 and 467,000 boxes a day during the 2019 season. As of July 14, Northwest cherry shippers had moved about 13.7 million 20-pound boxes so far this year.