Posts Tagged “feature”
Mexican fresh produce volume will be down well into March because of fewer plantings, the shift to other vegetables and bad weather. And by this late in the winter shipping season, volume tends to gradually wind down anyway.
Foul weather and cold temperatures have plagued major Mexican growing areas since late last year.
Sun Fed of Rio Rico, AZ has no doubt there will be less volume in the coming weeks. The company has many crops in the Guaymas Sonora area being affected by the cold.
Sonora is a Mexican state, in the northwestern Mexico region. Sonora borders the states of Chihuahua to the east, Sinaloa to the south, and Baja California to the northwest.
Some growers lost entire crops. As a result, shortages many be felt well into April. Products most affected at Sun Fed by weather include soft squashes, cucumbers and green bell peppers.
Likewise, Ciruli Bros. of Rio Rico relates volume is “way, way down with no short term recovery in sight.
In early February, for example, Ciruli Bros. usually has seven coolers running, but only had four in operation. Vegetables that normally would be ready for harvest the first week of March, we up to two weeks behind in growth.
Items affected in the northern part of Mexico include zucchini, yellow squash, green beans, cucumbers, tomatoes and romas.
Divine Flavor LLC of Nogales, AZ described January as “rough,” but was still hopeful for good volume with conventional and organic mini peppers as well as bell peppers, grape tomatoes and roma tomatoes.
The company grows a lot of its vegetables in greenhouses or high-tech hothouses, most of it in the Culican, Sinaola area of West Mexico. The operation also has squash and mini peppers in Sonora and bell peppers and grape tomatoes in Jalisco.
However, Divine Flavor reports the cold weather in Sinaloa and Sonora has even adversely affected its greenhouse production.
Fresh Farms of Rio Rico reports the Sinaloa region received 10 to 12 inches of rain around Christmas, resulting in a “disaster” for crops.
Calavo Growers Inc. of Nogales noted even before the weather challenges, many growers planted fewer romas and round tomatoes because of uncertainty about the tomato suspension agreement last summer and not knowing if they would have to pay tariffs. This resulted in a lot of growers shifting to bell peppers and cucumbers.
Small-box retailers such as dollar stores are being required by more and more communities with no grocery stores to carry some fresh foods.
In Oklahoma City, the Wall Street Journal reports the city council is considering a plan requiring new retailers in the area to designate at least 500 square feet of space to fresh food.
CNN Business published a story recently called “Dollar stores are everywhere. That’s a problem for poor Americans.”
The article notes rising numbers of dollar stores upset some politicans who believe the discount chains “stifle local competition and limit poor communities’ access to healthy food.
Dollar General and Dollar Tree combine for more than 30,000 stores throughout the U.S. and company officials believe there is room in the market for many thousands more. By way of contrast, Walmart has a paltry 4,700 stores, according to the article.
The USDA offers a visualization of food deserts online in a tool known as the Food Environment Atlas. The Wall Street Journal reports the USDA estimates that 39 million people, or 12.8 percent of the population live in food deserts, with few fresh food choices close by and access to transportation is limited.
As a way to counter the effect of food deserts, the USDA also is involves the Healthy Food Finacing Initiative, which distributes some grants to improve fresh food access in under-served communities.
Recent publicity about dollar stores adding fresh produce may be overstated. The Wall Street Journal notes that soon, 650 Dollar General locations will sell produce. However, this is still only just 4.1 percent of the company’s 16,000 stores.
States have been engaged with the issue as well but have tended toward the carrot more than the stick:
- Nevada lawmakers last year supported legislation providing providing for tax credits for businesses investing in certain fresh food retailers based in underserved communities and similar areas;
- A Mississippi bill was passed and signed by the governor last year known as the Small Business and Grocer Investment Act” aiming to provide “dedicated source of financing for healthy food retailers operating in underserved communities in Mississippi, in both urban and rural areas, to increase access to affordable healthy food so as to improve diets and health; to promote the sale and consumption of fresh fruits and vegetables, in natural and/or frozen form, particularly those that are Mississippi grown and to support expanded economic opportunities in low-income and rural communities.”
- New Jersey has a similar bill encouraging more fresh produce consumption. A summary of the legislation titled The Healthy Small Food Retailer Acts seeks to provide support to small food retailers operating in the Garden State, in both urban and rural areas, to sell more fresh fruits and vegetables and other healthy foods at affordable prices to neighborhood residents in an effort to improve the health and wellness of all New Jerseyans.
Finally, CNN Business had an opinion piece by Darya Minovi called “Dollar General isn’t doing enough to bring healthy food to low-income Americans.”
Minovi, a policy associate at the Center for Science in the Public Interest focusing on healthy retail policies, sums up her piece in this way:
“To make a meaningful difference for consumers, Dollar General will need to prioritize fresh produce and more nutritious options. If not, communities will continue to follow the example of places like Tulsa, OK; New Orleans; and Mesquite, TX, which have instituted policies to limit the rapid expansion of dollar stores, given their anticompetitive impacts. The success of America’s fastest-growing food retailer should not come at the expense of Americans’ health.”
It certainly isn’t that good, but here are your best bets for fresh produce loading opportunities in the Eastern Time Zone.
Florida
It is Florida hands down, but even here you are looking at multiple pickups and multiple drops in most cases.
Nearly 750 truckload equivalents of Florida tomatoes are being shipped weekly. This is mostly the mature greens, with much smaller volumes found with grape (cherry) and plum tomatoes.
Strawberries from the Plant City, FL area are averaging about 575 truckload equivalents a week. There are modest amounts of fresh grapefruit and oranges, with even smaller amounts of other citrus amounting to around 475 truckload equivalents weekly.
There also are lesser amounts of cabbage, sweet corn as well as a new crop of red potatoes just getting underway.
Florida produce shipments primarily from central and southern areas – grossing about $3200 to New York City.
Port of Philadelphia
Chilean fruit arrivals by boat at Philadelphia are averaging around 750 truckloads a week. This consists mostly of table grapes although there are some peaches, plums and nectarines.
Michigan
Not much here except apples from the Grand Rapids area in the western part of the state, as well as some onions.
North Carolina
Sweet potatoes by shippers mostly in the Eastern part of the state are averaging over 200 truckloads a week.
California avocado shipments should hit 369 million pounds, a 70 percent increase over last season.
Unlike a year ago when shipments were limited primarily to the Western states, much wider distribution is possible, according to the California Avocado Commission.
The forecast for the big increase in shipments is attributed increased rains resulting in improved health of the trees and a better fruit set.
California avocado shipments remain relatively light, but will be increasing through March, with peak volume continuing from April through the summer, with smaller supplies lasting into September.
Despite a much larger crop, California avocado shipments will be going mainly to markets in California and the Western states. California avocado volume pales in comparison to shipments from Mexico, which is the primary supplier to two thirds of the U.S.
Global shipping company Hapag-Lloyd is using logistics and digital supply chain solutions from Blume Global for all motor carrier partners.
The transition to Blume Logistics began in North America in January.
Blume Logistics digitally connects Hapag-Lloyd’s network of motor-carrier partners, according to a news release. It covers everything from dispatch work orders to live tracking, invoicing and proof of delivery.
Hapag-Lloyd operates 231 container ships with a container capacity of 2.6 million TEUs (20-foot equivalent units), according to the release.
“Blume Logistics will help improve the quality of our door service for our customers including first- and last-mile visibility while enhancing the efficiencies of our motor carrier partners,” Uffe Ostergaard, president of Hapag-Lloyd’s North America Region, said in the release. “Our North American customers are asking for enhanced end-to-end shipment visibility to better manage their supply chains and by implementing this integrated cloud-based solution we will be able to offer that value-added service.”
While there is a strong labor market shoppers are looking to spend wisely, even though U.S. consumer confidence is high. These are some finding by McKinsey & Company.
The company found in its annual US Sentiment Survey of over 22,000 people that unemployment is at a historical low, wages are rising at their fastest rate since the onset of the recession, and consumption continues to grow at a steady pace.
To gain a clearer idea of how consumers in the region are thinking, September 2019 data from the survey, covering more than 4,500 consumers, was analyzed by McKinsey.
“U.S. results show that feelings of financial pressure are at their lowest levels since the recession, and few consumers cut back on spending,” the survey noted.
“Only 39 percent of consumers feel financial pressure today, compared with 77 percent in 2009; just 27 percent are cutting back on spending today, versus 63 percent during the recession.”
Additionally, even though consumers have no plans to cut back on spending, they are still price-sensitive and use multiple strategies—such as using coupons and shopping around to save money.
While thrifty, consumers are more often willing to trade up to more expensive, often premium, products: 11 percent of respondents today are willing to trade up, as opposed to just 7 percent in 2016.
In food, consumers are inclined to trade up in the fresh and ready-made-meal categories, such as dairy-free milk, fresh produce, and chilled meals.
In good news for premium brands, these consumers are happy with their choice, as 81 percent of respondents prefer the higher-priced product and believe it to be worth the extra money.
Millennials are particularly prone to trade up when considering all types of consumers. Strikingly, they are 2.5 times more likely than baby boomers to do so.
Good news for the produce industry is that another continuing trend is consumers’ increasing preference for healthier products. This trend is especially strong among top-tier consumers, with 20 pecent of them reporting buying more natural or organic products in the past 12 months, and 15 percent report buying more locally sourced products in that time period.
The survey also found that there is strong distrust of big-brand names where 70 percent of respondents believe large food companies put their own financial interests ahead of consumers’ interests, while only 46 percent believe this to be true of smaller food companies.
Also, consumers are taking an interest in the environmental impact of product packaging. Millennials tend to give this more this consideration as 71 percent take sustainable packaging attributes into account in their purchasing decisions, as opposed to just 57 pecent of baby boomers.
We are trudging through February as it is still weeks away before signs of spring produce volume starts to increase. However, you might finding some loading opportunities in the middle of the country. These states are in the Central Time Zone, except for Colorado (MST).
South Texas/Mexico
By far the most volume in this third of the country is the Lower Rio Grande Valley of south Texas with crossings from Mexico. While there is some domestically grown product here such as grapefruit (about 60 truck loads a week) and oranges, there is little else except maybe some partial loads of cabbage in the Winter Garden District.
Otherwise, your best bet is with the distribution houses near the Texas/Mexico border.
Mexican tomatoes, easily led by vine ripes, are averaging nearly 1,100 truckload equivalents a week. Avocados are amounting to about 1,125 loads each week.
After this, volume is much lower with other commodities by comparison. There are about 650 truck loads of Mexican limes crossing the border each week. Other leading vegetables are bell peppers, strawberries, watermelons, cucumbers and broccoli, plus countless other products in much smaller volume.
South Texas produce -grossing about $3400 to Atlanta; $5700 to New York City.
Colorado
Colorado ranks second to Idaho in potato shipments with most volume coming out of the San Luis Valley, currently averaging over 700 truckloads per week.
San Luis Valley potatoes – grossing about $4300 to New York City.
Wisconsin
Central Wisconsin in the Stevens Point area ranks third in potato loadings and is now averaging close to 300 truck loads a week.
Wisconsin potatoes – grossing about $3400 to Houston.
Organic fruits and vegetables grew twice as fast as sales of conventional produce, according to a new study on 2019 retail organic sales.
With growth over 5 percent last year, retail organic produce sales compared with 2 percent growth for conventional fruits and vegetables. The study is a result of the 2019 Organic Produce Performance Report released by the Organic Produce Network and Category Partners.
Retail volume growth in 2019 of organic fruits and vegetables amounted to 4.6 percent, according to a news release, compared with less than 1 percent volume growth for conventional produce.
The report was created using Nielsen retail scan data covering total food sales and outlets in the U.S.
“Organic growth in retail produce departments continues to be strong,” Matt Seeley, CEO of the Organic Produce Network, said in the release. “Last year, sales of organic fruits and vegetables established a new record, hitting $5.8 billion in retail sales. The rate of growth has slowed slightly from previous years, but there is every reason to believe that the growth of organic fruits and vegetables will continue to outpace conventional products.”
The report showed that Northeast U.S. retail sales grew 6.3 percent, tops among all regions. At 5.7 percent, the West region showed the second best growth, followed by 4.7 percent growth in the South and 3 percent growth in the Midwest region.
A key to creating bigger future retail sales is broadening the range of organic commodities, Steve Lutz, senior vice president of Insights and Innovation at Category Partners, said in the release.
“What we see in the Nielsen data is that organic produce at retail is concentrated within fewer categories than conventional produce,“ Lutz said in the release. “The top 10 organic categories in produce drive nearly 70 percent of volume. These same categories contribute only 53 percent to total volume in conventional.”
The scan data indicated top performers for generating organic sales in 2019 were packaged salads and berries, with packaged salads accounting for almost 20 percent of total retail organic sales and the combined berry category (strawberry, blueberry, raspberry, blackberry) adding another 15 percent.
Bananas, carrots and apples accounted for 41 percent of total organic volume.
“The top 10 organic categories drive 61 percent of total dollars versus only 38 percent percent in conventional,” Lutz said.
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BrightFarmsopened is largest operation recently, kicking off the first harvest of a 280,000-square-foot facility in Selinsgrove, Pa., with a capacity of two million pounds of fresh produce annually.
Giant stores stock BrightFarms lettucee and other leafy greens.
BrightFarms is donating the first harvest from the facility to the Central Pennsylvania Food Bank in Harrisburg, according to the release.
HaulProduce.com note: Two million pounds of fresh produce a year may be a drop in the bucket considering the total amount of fresh produce shipped annually. It equals about 50 trucks loads per year from this one operation. Over a million truck loads of fresh fruits and vegetables are shipped a year in the U.S. But greenhouse growing continues to expand in the U.S., as well as Mexico, Canada and elsewhere.
Canadian and U.S. greenhouse operations may have a slight negative affect on long haul trucking since these types of growing operation tend to ship locally, if not regionally. Mexican greenhouse operations on the other hand tend to be a part of load consolidations headed to the U.S. Many greenhouse facilities south of the border are U.S. company owned or financed.
Perhaps the biggest plus is greenhouses are much less susceptible to the whims of Mother Nature, thus providing more consistent, quality products.
January and February are two of the slowest months for fresh produce shipments, and while March begins to give hope of things to come it often is not much better.
Still, here is a round up of some of the best loading opportunities from the western states.
Arizona
West Mexico vegetable shipments through Nogales, AZ are typically one of the best locations for produce loads in the winter, but this year it’s not quite up to speed, thanks to weather factors in growing areas south of the border. Produce trucking rates are down 8 to 10 percent to most destinations, at least in part to the lower volume.
Multiple rains in November followed by another round about New Year’s hit vegetables such as cucumbers, squash, tomatoes and green bell peppers pretty hard. These weather events are reported to be more serious than damaging freezes in 2011-12-13. Currently around 850 truckload equivalents of cukes are being shipped weekly and nearly 600 truckload equivalents of bell peppers.
In the Yuma area of western Arizona, most of the nation’s lettuce is coming from here now. There are about 375 truckload equivalents of head lettuce and romaine a week being shipped from Yuma.
Mexican vegetables crossing through Nogales – grossing about $3600 to Chicago.
Lettuce and other veggies from Yuma as well as the nearby Imperial Valley and Coachella Valley (the later two in the California desert) – grossing about $6200 to New York City.
California
California certainly is less than exciting from a produce hauling stand point right now. There is the previously mentioned desert areas, plus Oxnard is shipping some veggies, most notably celery, averaging about 400 truckload equivalents per week. The Bakersfield area is led by carrots with around 450 truckload equivalents a week.
Perhaps the most promising loads in the weeks ahead are with strawberries. South California volume now is very light, but there is the potential for record setting shipments from Easter (April 12) through the Fourth of July. Right now the primary strawberry loads are from Mexico through South Texas which are double the volume of California .
Carrots from the Bakersfield area – grossing about $3700 to Dallas.
Washington
Heaviest volume from the Pacific Time Zone is easily with apples, averaging about 2,750 truckloads each week. Storage sheds are mostly in the Yakima and Wenatchee valleys. Otherwise, there are onions and potatoes from Washington’s Columbia Basin and the adjacent Umatilla Basin in Oregon. There are over 800 truckloads of onions and about 360 truckloads of potatoes moving weekly from this area.
Yakima Valley apples – grossing about $6600 to New York City.
Idaho
The state’s upper valley and Twin Falls areas are shipping about 1,750 truckloads of potatoes a week.
Idaho potatoes grossing – about $4500 to Atlanta.