Posts Tagged “feature”
Following a number of years where intermodal and rail shipments of fresh produce have been down, some observers think volume will be increasing at the expense of trucking.
Rising fuel prices and increasing truck rates should make refrigerated shipments by intermodal and rail more competitive, according to a new USDA report.
The first quarter 2018 edition of the USDA’s Agricultural Refrigerated Truck Quarterly, issued in July, reported 2017 investments in refrigerated facilities and technology have increased the long-haul capacity for shipping fresh fruits and vegetables by intermodal and rail.
“Furthermore, increasing fuel costs and a driver shortage for trucks may further increase demand for shipping fresh produce by intermodal and rail,” the publication said.
Rising fuel rates figure to make intermodal and rail more competitive. Diesel prices rose from $2.47 per gallon at the end of 2016 to $2.87 per gallon by the end of 2017. On July 23, the U.S. Energy Information Administration reported the average price for a gallon of on-highway diesel in the U.S. was $3.22 a gallon.
The publication cited Tiger Cool Express who feels rising diesel prices make trucks a less competitive option to intermodal and rail since diesel fuel makes up a higher percentage of the variable costs associated with truck operating costs.
Diesel fuel averaged close to $4 per gallon in 2012, the USDA said, which was the peak year for shipments by intermodal and rail.
Later fuel price declines led to decline in intermodal and rail shipments of fruits and vegetables.
Now rising fuel prices could be good news for intermodal and rail, the USDA said.
In addition, strong economic growth in 2017 increased demand for shipments by truck, putting upward pressure on truck rates while decreasing capacity.
2017 availability ranged from adequate to shortage conditions, which potentially will cause some shippers to consider seeking shipments of fresh produce via intermodal or rail, the USDA said.
The USDA said that since 2012, the overall trend for intermodal and rail shipments of fresh fruit and vegetables has been decreasing for shipments originating in California and the Pacific Northwest, registering a 42 percent decrease between 2012 and 2017.
Combined rail and intermodal shipments decreased from 1.6 million tons in 2012 to 937,265 tons in 2017. Between 2016 and 2017, rail shipments decreased 22,055 tons and intermodal shipments decreased 3,230 tons.
The report said the 2014 demise of Cold Train — a major provider of refrigerated railcar service through its partnership with BNSF Railway — cut the availability of intermodal and rail service for fresh produce.
Still, the USDA said the January 2017 announcement by Union Pacific that it had acquired Railex LLC’s refrigerated railcar and cold storage distribution facilities in Delano, CA, Wallula, WA, and Rotterdam, N.Y. could signal more volume for that service.
The report noted that Union Pacific said it would increase the frequency from 3 to 5 days per week for Cold Connect on east-bound departures from California and Washington.
In 2017, the USDA reported intermodal shipments of iceberg and romaine lettuce increased from the previous year. Reported shipments increased 24 percent (10,125 tons) for iceberg lettuce and 28 percent (7,280) for romaine lettuce. On the other hand, shipments of lemons decreased 50 percent (112,230 tons).
Reported rail shipments increased 5 percent (8,925 tons) for potatoes in 2017.
While trucks will always be the most economical option for some shippers, the report said improvements in the refrigerated supply chain for intermodal and rail could make it a more attractive option, particularly for long-haul routes.
“Even if shipments by rail typically take several days longer than by truck, shippers may be willing to trade time for capacity and lower costs if the truck capacity crunch and rising diesel prices persist,” according to the report.
Washington onion shippers have accounted in recent years for over 20 percent of the nation’s onion loads, and this season should continue that trend. As a result, the Northwest onion shipping outlook, which also includes Oregon and Idaho, is strong for the upcoming season. Acreage planted is similar this season and volume is expected to be in line with recent years.
In other words a pretty normal season for yields and size profile is seen for Idaho-eastern Oregon onions.
Washington planted onion acreage in 2017 was about 24,000 acres, down from 25,000 acres in 2016, according to the U.S. Department of Agriculture.
Total Oregon planted onion acreage in 2017 was 19,900 acres, up from 19,100 acres the previous season.
Idaho planted acreage in 2017 was 8,100 in 2017, compared with 9,400 acres in 2016.
Together Washington, Oregon and Idaho onion acreage of about 52,000 accounted for about 36% of total U.S. onion acreage in 2017.
Of the total U.S. onion shipments, the USDA reported 4.3 million cwt. was for the fresh market and 878,951 tons for processing.
Central Produce Distributing Inc. of Payette, ID has just started harvesting onion and will be shipping product from storage through the end of March. Some other shippers will get underway throughout August and in early September.
The operation expects acreage to be similar to 2017, with a few more acres of reds and yellow onion acreage remaining the same. Yellow onions account for about 80 percent of the company’s crop,
New Mexico onion shipments are finishing up about the time the Northwest gets underway.
River Point Farms LLC, Hermiston of OR reports an ideal growing season thanks to the weather. Unlike a year ago, growers in the Treasure Valley had nice spring weather and were able to get their onion crop planted on normal schedules.
Storage onions will be shipped from September through May.
Early season onion quality is expected to be very good and the storage varieties store well all season.
Looking ahead to the up coming season, Wisconsin potatoes shipments are expected to be average….In California, grape shipments should end up with another big time shipping season.
We’re still a few weeks away from the beginning of harvest for Wisconsin potatoes, which will continue through October. As the nation’s third largest shippers of potatoes behind Idaho and Colorado, the Badger States has about 110 potato farmers, who together grow about 63,000 acres of spuds. From season to season Wisconsin typically ships around 25 million to 28 million cwt., depending on the yields.
The USDA reports fresh shipments of Wisconsin potatoes in calendar year 2017 totaled 7.3 million cwt., while chipper potato shipments were 6.69 million cwt. and seed potato shipments were 1.635 million cwt.
Wisconsin organic fresh potato shipments totaled 45,000 cwt., reports the USDA.
California Grape Shipments
California grape shipments continue to increase each year as its popularity among consumers continue to grow. Total shipments this season are expected to once again exceed 100 million boxes.
Early season grapes from the San Joaquin Valley has brought a significant increase in several newer table grape varieties and an overall increase in volume compared to a year ago, according to The California Table Grape Commission, based in Fresno, CA. However, grape shipments from the Coachella Valley, which final figures come out, are expected to show a decrease. Coachella shipments ended over a month ago.
The Commission’s 2018 crop estimate, which was released in late April, projected it would have 115 million 19-pound-equivillent boxes thanks to an increase in those grown in the San Joaquin Valley.
At the same time, the Coachella Valley is expected to have approximately 4.5 million boxes, down from nearly 5 million cases a year earlier.
It remains to be seen how the July heat wave in California will affect grape shipments.
California is home to more than 85 grape varieties, with red, green and black all available from May through early January. Last year, the state saw more than 109 million boxes shipped, headed to approximately 55 countries with a crop value of nearly $1.81 billion.
by NatureSweet®
San Antonio — Tomato industry leaders Lipman Family Farms and NatureSweet are joining forces to better serve customers and quick service restaurants by ensuring year‐round premium, high‐quality, high‐flavor slicing and salad tomatoes. NatureSweet brings to the table years of greenhouse growing expertise, while field grown tomato leader Lipman brings deep experience serving food service customers.
As the better burger, quick service and fast casual restaurant industry continues to grow in the United States, changing consumer taste demands high‐quality and exceptionally tasting ingredients, and Lipman Family Farms and NatureSweet help deliver on that promise.
“We’re pleased we’ll be able to assure a 52‐week supply of exceptional slicing and salad tomatoes to our valued clients,” said Lipman Family Farms CEO Kent Shoemaker. “NatureSweet is known for their successful snacking tomatoes and innovative packaging, and we’re glad to share our strengths and expertise in a partnership. Our goal is to bring the high flavor, high color, high density characteristics of our field grown Crimson variety to the greenhouse product we create with NatureSweet. Our food service customers need access to premium product on a year‐round basis. They also need greenhouse and field grown options.”
It’s a 100 percent joint venture between both companies with equal investments. The tomatoes will be cobranded and distributed under the Lipman name.
This is a first‐of‐its kind initiative to bring together the biggest food service names and the industry‐leading tomato suppliers. The partnership is planned to launch in October 2018.
About Lipman Family Farms:
Lipman Family Farms is a full service tomato and vegetable company operating in both open field and protected agriculture. Lipman is the largest open field tomato grower in North America. Lipman’s seed to shelf supply chain control – research & development, farming, processing, repacking, logistics and marketing – delivers the consistency and quality that has made Lipman Family Farms North America’s most dependable source of fresh tomatoes and vegetables.
About NatureSweet®:
NatureSweet® Tomatoes is the leading grower of premium, branded, best‐tasting fresh tomatoes in North America. Always vine‐ripened and hand‐picked at the peak of freshness, only NatureSweet® tomatoes guarantee great taste all year round. NatureSweet® tomatoes are carefully grown, harvested and packaged by more than 9,000 full‐time Associates, and are sold at major grocers, mass retailers, club stores and food service operators in the United States, Canada and Mexico.
by Stemilt Growers
WENATCHEE, Wash. – The Northwest pear crop is looking promising this year, with about 20 million boxes expected to be packed and shipped. Stemilt, an industry leader in both conventional and organic varieties expects to shipper around 12 percent of the crop.
“Harvest is trending a week ahead of last year, with increased crop volumes over last season,” said Brianna Shales, communications manager at Stemilt.
Shipments of Tosca and Bartlett pears get underway the week of August 20, followed by Starkrimson the following week. The majority of Stemilt’s Tosca pears are certified organic and available under the Artisan Organics™ brand. Tosca is an early variety with a short season and will be sized well for Stemilt’s kid-size pear program, Lil Snappers®.
Northwest pear volume will hit good stride in late August.
“It’s been an ideal growing season for pears, with a long spring and great summer weather for growing sizeable pears,” states Shales. “Stemilt has been a leader in the pear category for years, and looks forward to another season of top quality, flavorful pears.”
“Jet cooling is essential to the quality of pears harvested in August, and our cooling process is designed to back the high flavor, ready-to-eat pear process,” says Shales. “Our teams use a Stemilt-specific sequence that is designed for the best airflow and cooling patterns, giving our pears the exact things they need to ensure a ready-to-eat experience right out of the box.”
Stemilt has also built two Thermal Tech Tarpless® ripening rooms in the Fresh Cube to ripen Anjou and Red d’Anjou pears.
“Trust goes a long way in the pear category,” states Shales. “We have seen a decrease in the pear category over the last decade and Stemilt is working hard to reverse that trend through programs like Operation Flavor and our Rushing Rivers® pear brand.”
Stemilt partners with Peshastin Hi-Up Growers to produce Rushing Rivers® pears, which grow in the two best pear locales in the world – the Wenatchee River Valley and the Entiat River Valley – by multi-generational pear farmers who come with a world of knowledge and expertise. These growing districts are located right next to packing, ripening and shipping facilities, which supports Stemilt’s mission of flavor-first focus.
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About Stemilt
Stemilt Growers is a leading tree fruit growing, packing and shipping company based in Wenatchee, WA. Owned and operated by the Mathison family, Stemilt is the leading shipper of sweet cherries and one of the nation’s largest suppliers of organic tree fruits.
It’s no surprise Hispanics are avocado buyers, but a recent Hass Avocado Board study shows that even as consumption of the fruit has risen in many demographic groups, Hispanic consumers continue to outpace others in many areas.
The study, Hispanic Avocado Shopper Trends, and a companion document giving retailers ideas on how to capitalize on the findings, Hispanic Avocado Shoppers Trends Action Guide, is based on retail data from the IRI Consumer Network, according to a news release.
Hispanic household purchase trends of avocados outpace non-Hispanic households in these areas:
- The percentage of total U.S. households that buy avocados
- The average avocado spend per household; and
- The percentage of households that buy avocados at the “super” level ($25.36 and more a year)
“Hass avocados are continuing to gain widespread popularity,” Emiliano Escobedo, executive director of the Hass Avocado Board, said in the release. “And this study shows that Hispanic households are particularly involved in the avocado category and play an important role in its growth.”
In 2017, Hispanic household avocado purchases averaged $33, 45 percent more than the $22.69 spent by non-Hispanic households, according to the release, and average per-trip purchases were $4.46, compared to $3.83 for non-Hispanic households.
The Hispanic “super households” (the HAB breaks down purchase levels into super, heavy, medium and light) are the main reason for the gap between their purchases and non-Hispanic households, with 36 percent of them in the super category, versus 24 percent of non-Hispanic households meeting that level.
Hass Avocado Board
HassAvocadoBoard.com is the essential online resource for the Hass Avocado industry providing timely relevant data and research for the domestic producers and importers it represents.
California avocados are dropping from the trees because of triple digit temperatures that have been common since early July….Meanwhile, imported Chilean mandarin volume has have increased nearly five-fold during the past six years.
Some temperatures have hit 115 degrees F. For example, Del Rey Avocado Co. Inc. of Fallbrook, CA reports avocado groves in San Diego County’s Pauma Valley and Temecula have suffered from the heat. As a result, fruit drop resulting from the heat is expected to cut avocado shipments and possibly increase the price of California avocados in late summer marketed in August, particularly after Labor Day.
The 2019 avocado season could also suffer from this year’s weather, particularly with potential tree damage.
In the southern growing regions of San Diego and Riverside counties, the harvest was about 85 percent finished when the early July heat hit groves. To date, California growers have harvested about 300 million pounds of fruit. Most of the remaining crop is in cooler areas, north and toward the coast.
California’s avocado shipments this season was originally estimated to be 350 million pounds, but some observers have lowered their estimate to 320 million or less.
Shipments of about 13 million pounds per week in early July faded to 10 million pounds by mid-July. California avocado shipments are now dropping sharply.
Imports of Peruvian avocados began arriving in peak volumes in early August and supplies from Mexico are also available.
Chilean Mandarins
The first shipments of Chilean mandarins arrived by boat at U.S. ports in late July with 64 tons on the East Coast and 21 tons for Canada.
Although this season got off to a slower start than last year, Chile expects to ship a record 101,000 tons of mandarins to North America this year, a 32 percent over last year. In 2012 Chile exported 22,000 tons of mandarins. Today, the Chilean mandarin industry has become the main supplier of easy peelers to North America.
California and Texas orange shipping estimates have been lowered by the USDA….Meanwhile California garlic loadings are off to a good start.
The California shipments are pegged at 44 million boxes, down 1 percent from the USDA’s June projection. Texas orange shipments of 1.88 million boxes, are down 11 percent from June.
The California valencias shipping forecast has been lowered 5 percent to 9 million boxes, on par with last season.
The forecast for California navel shipments remain steady at 35 million boxes, which is down 11 percent from the 2016-17 season.
While USDA lowered its estimate for Texas orange shipments, 1.88 million boxes still represents a 37 percent gain from last season.
The Florida orange shipping forecast of 44.95 million boxes was unchanged from the previous month, as June was the final update of the year.
In September, Hurricane Irma devastated citrus groves throughout the state. In the 2016-17 season, Florida shipped 68.85 million boxes of oranges.
The estimate for early, midseason and navel varieties was 18.95 million boxes, down 43 percent from the 2016-17 season.
The Florida valencia shipping forecast was 26 million boxes, down 27 percent from 2016-17.
Grapefruit
USDA estimates 2017-18 grapefruit shipments at 12.86 million boxes, down 7 percent from last month and down 26 percent from 2016-17.
Texas shipments are projected at 4.8 million boxes, 16 percent lower than the June estimate, but on par with last season.
Estimates for Florida and California were 3.88 million boxes and 4 million boxes, respectively. The projections have not changed since June, but the numbers represent a 9 percent drop from 2016-17 for California and a 50 percent drop for Florida.
Other Citrus
California is expected to ship 20 million boxes of mandarins and tangerines, down 5 percent from the June estimate and down 16 percent from the 2016-17 season.
The volume forecast for Florida is unchanged from last month — at 750,000 boxes — but down 54 percent from last year.
USDA estimates total lemon shipments at 21.8 million boxes, the same as June but down 2 percent from 2017-18.
Garlic Shipments
The domestic garlic crop has gotten off to a good start, and expectations are high for the 2018 season. Christopher Rancy of Gilroy, CA expects to ship over 100 million pounds of garlic this season. I it the largest crop the shipper has had in decades.
Historically, the produce industry gives truck transportation and trucking rates little thought, unless they are having a problem getting their product loaded, or rates are on the rise. Well, both are happening.
For example, several Northwest potato shippers have recently expressed concerns over what it cost to ship their potatoes. They say the situation has become enough of a concern in various parts of the country that more regional potato crops are being plants. Being closer to major markets means less transportation costs.
Valley Pride Sales LLC of Burlington, WA recently complained about short truck supplies and is concerned the situation will not be improving anytime soon. They also hear about a shortage of drivers. The company has seen freight rates to East Coast for russet potatoes costing $9 per 50-pound carton. This is seen as given potato shippers on the East Coast an advantage in the marketplace since they pay less for trucks.
New York Trucking Concerns
As with most companies in the produce industry, New York produce operations have seen escalating truck rates since 2017. However, shippers there are complaining less than shippers elsewhere. This is due to their location of being much closer to major Eastern metropolitan regions than Western and Midwest produce shipper.
For example, Torrey Farms Inc., of Elba, N.Y. observes the proximity to Eastern markets places their operation with many within five to six hours drive time. The company believes transportation will be a battle all summer long N.Y. While Torrey Farms typically has adequate trucks during June and July, by the start of July truck supplies already were tight this year.
New regulations that implemented electronic logging device mandates has made it harder for truckers reports Paul Marshall Produce Inc. of Batavia, N.Y. The trucking company notes two years ago the trucking lane from Elba to Chicago was pretty steady at $1,000 per load. In the summer of 2017, those rates escalated to $1,600.
At Turek Farms of King Ferry, N.Y., truck rates during the July Fourth holiday period were up 20 to 25 percent compared with a year ago. The company notes the new electronic logging device mandate rules mean adding another day to any trucking route more than 500 or 600 miles.
Significant increases in clementines from Chile are being reported….Meanwhile, tamarind imports also are on the rise.
Through the middle of July Chile had exported nearly 50,000 metric tons of clementines to the U.S., representing a 42.9 percent increase over the previous year. Of that volume, 57 percent was shipped to the East Coast.
During the same period, South Africa loaded 6,000 metric tons of easy peelers, all sent to the East Coast. By comparison, Peru has exported over 16,000 metric tons of soft citrus to the East Coast, marking a 48 pecent increase over the previous season.
Peru has also exported nearly 2,000 metric tons of easy peelers to the West Coast – a 17 percent rise.
Heavy Chilean clementine arrivals on the East Coast in late June and early July complemented 2,000 metric tons of fruit from South African and 2,600 metric tons from Peru.
Tamarind (in photo)
Tamarin is popular in Latin and Asian cooking, the ingredient has drawn broader interest lately. Tart tamarind also is an everyday item in Hispanic market areas.
Both ‘agua fresca’ and ‘tamarind’ have been trending up steadily in Google trends, especially during the summer months. This is in line with what is being seen with consumer trends on Indian flavors and fruit-infused or flavored water.
Frieda’s markets the fruit in a clamshell that informs consumers how to use it. The fruit has been included in sauces, glazes and cocktails.
Latin American candies, popsicles and the beverage agua de tamarindo also is used with the fruit. Retailers sometimes merchandise tamarind with items like ginger and turmeric or with tropical fruit.