Posts Tagged “feature”
Refrigerated truck rates on the spot market for fresh produce reached 40-year highs at the end of 2017 and early 2018. At the same time fruit and vegetable tonnage approached record levels. Meanwhile, the spike in rates may not be over, according to the USDA’s Agricultural Refrigerated Truck Quarterly, a 31-page report published in March. Continued economic growth may also encourage the upward push on rates.
All sectors of the trucking industry were affected in a similar fashion by the driver shortage, capacity issues and higher rates, which squeezed the transportation for fruit and vegetables. Because of less truck capacity, many are concerted about widespread disruptions in the supply chain.
Trucks account for around 70 percent of domestic freight tonnage, and trends showed the sector was heating up with the U.S. economy in the fourth quarter.
The American Trucking Associations (ATA) reports fourth-quarter 2017 tonnage of all truck freight, was up 3.7 percent from the previous quarter and 8.1 percent higher than the fourth quarter of 2016. Total tonnage for 2017 was up 3.8 percent from 2016, which was the biggest annual increase since 2013.
Diesel fuel rates in the fourth quarter were $2.87 per gallon, up 9 percent from the previous quarter and 16 percent above the fourth quarter of 2016.
Additionally, the USDA reported refrigerated fruit and vegetable shipments in the fourth quarter of 2017, at 7.72 million tons, were the third-highest on record. The quarter trailed only the 2016 mark of 8.05 million tons and 7.99 million tons in 2011.
Total refrigerated fruit and vegetable shipments for all of 2017 were a record 33.6 million tons, up 0.5 percent from33.4 million tons in 2016.
Driver Shortage
The ATA estimates if current trends continue the driver shortage of 48,000 positions in 2015 could grow to 175,000 positions by 2025.
The electronic logging device mandate has been disruptive for many carriers, with many shipping point districts reporting shortages immediately after the December 18 ELD deadline.
Fourth-quarter fruit and vegetable truck rates of $2.55 per mile for routes from 500 to 1,500 miles were up 25 percent over year-ago levels, and rates of $2.52 per mile for routes of 1,500 miles to 2,500 miles were up 24 percent over the fourth quarter of 2016.
Coast-to-coast reefer truck rates on January 10th exceeded $10,000 per truck from several Western districts. For example, January rates from Idaho to Miami were as high as $10,200 per truck, up from $6,800 the previous year.
Truck rates in late March were down from January historic highs, but were still higher than in 2017.
At Nogales, AZ, imported Mexican produce rates were in the $5,800 to $6,800 range to New York City on March 27, down from $6,000 to $7,000 on March 8 and well off the rates of $9,000 to $9,800 reported in mid-January.
March produce trucking rates were still above the same time a year ago, when trucks from Nogales to New York City were in the $5,000 to $5,200 range.
The next quarterly report will be issued in late May for refrigerated trucks hauling fresh produce.
The start date has been set and Vidalia Onion shipments get underway in a couple of weeks. Meanwhile, here’s an update on California avocado and strawberry shipments.
The Vidalia onion season will officially start on April 20th, which was recently announced by the Georgia Department of Agriculture and the Vidalia Onion Committee.
A starting date was implemented several years at as some shippers were concerned about immature or low-quality onions hitting the market early in the season. In 2017, April 12 was the start date, and in 2016 it was April 25. The packing date is based on soil and weather conditions in the 20-county area approved to market onions as Vidalias.
In 2017 Vidalia onions were grown on more than 11,000 acres.
California Avocado Shipments
This year’s avocado forecast is set at 374.6 million pounds, which is significantly higher than last year’s 215.8 million pounds. There was the normal light volume in February, but significant volume increase are seen in coming weeks as there will be avocados coming out of both California and Mexico.
With the close of February, 2 million to 4 million pounds per week were being shipped and volume increases of March are expected to continue April until movement eventually hits about 10 million pounds per week.
Ventura County avocados, strawberries and vegetables – grossing about $3900 to Dallas.
California Shipper’s Strawberry Outlook
by California Giant Berry Farms
Watsonville, CA – Spring conditions have finally arrived in California to help bring on the new strawberry crop for California Giant. Unfortunately, the company missed the chance to take advantage of the early Easter holiday which provides opportunity to build demand and lay the groundwork for a strong spring season. However, conditions have changed significantly and now California Giant is now looking ahead to the next chance with Mother’s Day.
What initially looked like an early season for the company’s California strawberry crop, didn’t quite happen as growers thought it would. . Additionally, the company had weather issues in their two other regions, Mexico and Florida, which typically helps fill the early season gaps.
“…In Watsonville and Salinas we expect big beautiful fruit next week bypassing the typical mud crop” says JT Tipton, District Manager for Salinas and Watsonville. Barring any unexpected return of winter conditions, the sales team is looking forward to Mother’s Day ahead and promotable volume to support their key customers.”
By J&J Family of Farms
Westlake, FL: J&J Family of Farms is pleased to announce a new, one of a kind pepper variety: Sunny Sweet™ Peppers.
Like no other sweet pepper in its category, Sunny Sweet™ Peppers have a much sweeter taste than mini sweet peppers due to their higher BRIX1. The unique proprietary field-grown variety pepper also has a very small seed cavity located at the very top of pod, making it easier to enjoy as a bite size snack, easily stuffed, or cut up in a salad.
“We really wanted the packaging to reflect the true uniqueness of this pepper by creating a fun brand that will make an impact among our customers and their consumers,” said Angela Gamiotea, Marketing Manager. “We are excited to introduce this new Sunny Sweet™ brand, as this is just a glimpse of what’s to come in terms of product innovation at J&J Family of Farms.”
Sunny SweetTM Peppers are currently grown only in Florida and J&J is harvesting through the entire Florida growing season. The peppers are currently all yellow, but next year J&J is looking to provide other colors such as red and orange. Sunny Sweet™ Peppers are available in a 1lb. resealable bag.
“With the mini sweet pepper category growing in retail, we are thrilled to offer a product that isn’t in the marketplace yet,” said Lynn Rundle, Chairman and CEO. “Our growers also love it, because it has a great yield and grows beautifully on the plant. We are confident that once consumers taste this pepper, they will want to get their hands on it.”
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About J&J Family of Farms: Established in 1983, J&J Family of Farms specializes in growing cucumbers, bell peppers, squash, tomatoes and eggplant. J&J manages over 14,000 acres of production from its own farms and partners and has operations in Florida, Georgia, Tennessee, North Carolina, Texas, Arizona and Mexico. For more information, visit www.jjfamilyoffarms.com or SunnySweetPeppers.com
Larger volume shipments are being reported for bananas, limes and Brussel sprouts.
Imported bananas have been light in recent months because of inclement weather and other unfavorable conditions in numerous banana producing countries.
However, supplies are expected to improve in coming weeks, although the first quarter of 2018 has presented serious challenges.
About 85 percent of bananas shipped to the U.S. in 2017 came from Guatemala, Costa Rica, Ecuador and Honduras. American importers have reported issues affecting production in three of those four countries as well as in others.
Temperatures have been as much as 10 degrees below normal for several weeks in Guatemala, Honduras and Mexico, slowing fruit growth, production and yield.
There also has been excess rainfall and flooding in Costa Rica and Panama that have damaged plantations, infrastructure, roads and bridges. There also has been high winds and waves causing delays in shipping. Combine these factors with national instability and supply interruptions in Honduras, and the result supplies being much tighter than normal.
Lime Imports
Rain in Mexico’s Veracruz growing region reduced lime imports by the U.S., but observers expect improved shipments by the middle of April. The f.o.b. price on limes had doubled from mid February to mid March. Erratic weather in Mexico often makes March a difficult time of year for the lime shipments and so far in 2018 it hasn’t been any different.
Mexico provided 93 percent of total U.S. lime imports in mid-March, with the remaining light volume from Colombia, Guatemala, Honduras and Peru. Lime volume should return to normal levels by May.
Brussel Sprouts
It seems Brussels sprouts may be the latest trendy vegetable in America and that has led to increased production and shipments.
The volume of fresh Brussels sprouts shipped hit 78.9 million pounds, up 9 percent during the past year. Domestic fresh Brussels sprout shipments totaled 3.03 million 25-pound cartons in 2016, up from 752,000 cartons in 2010. Imported fresh Brussels sprouts totaled 4.5 million (25-pound) cartons, up from 1.06 million cartons in 2010.
In California, 2016 USDA statistics show peak shipments of Brussels sprouts occurred in November, when 22 percent of the state’s crop was shipped. The four-month period of September through December accounted for 68 percent of the state’s total Brussels sprouts shipments.
by Earth Source
Constellation Brands, the No. 1 import beer company in the U.S., has granted Earth Source, an international and domestic fresh produce grower representative, the right to source and distribute Corona Extra branded limes under an agreement brokered by The Joester Loria Group.
Earth Source, an industry leader skilled in providing premium fresh produce, will oversee the procurement, packaging, and distribution of the limes, which will be available in both Corona six-packs and bulk boxes. Earth Source’s Corona Extra – branded limes will be specially selected for size and quality, providing consumers with the perfect limes to complement the #1 imported beer brand in the United States.
“Corona Beer and Corona Limes are the perfect couple for any beach, slope or party,” said William Ison, Director of Business Development of Earth Source. “We are delighted that Constellation Brands and the Earth Source team will be working to together to provide Corona Extra consumers with perfect limes to accompany their favorite beer.”
About Earth Source
Established in 2006, Earth Source is a grower representative and part of the Four Seasons Family of Companies. Earth Source has cultivated strong, long-term relationships with key grower partners across North America and globally to bring the freshest and highest quality produce to their customer base throughout the United States. They are an industry leader in providing a premium selection and variety of fresh produce with full traceability and transparency for seamless year-round availability.
Four Seasons Family of Companies has been in business for over 41 years and is located near Lancaster, PA. At their state-of-the-art facility, Four Seasons supplies reliable solutions for fresh produce distribution through a spectrum of services. The Family of Companies supply and support their customers with logistics and transportation capabilities, Sunrise Logistics and Sunrise Transport, with a fleet of over 150 owned trucks delivering across the U.S. daily.
About Constellation Brands
Constellation Brands (NYSE: STZ and STZ.B), a Fortune 500® company, is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada. Constellation is the No. 3 beer company in the U.S. with high-end, iconic imported brands such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. The company’s beer portfolio also includes Ballast Point, one of the most awarded craft brewers in the U.S. In addition, Constellation is the world leader in premium wine, selling great brands that people love, including Robert Mondavi, Clos du Bois, Kim Crawford,
Sweet corn shipments will be having a significant increase in volume beginning the week of April 9th in the U.S.
The rise in shipments is just a prelude to the major peak shipping periods related to the big four summer holidays — Memorial Day (May 28th) , Father’s Day (June 17th), Fourth of July (a Wednesday) and Labor Day (September 3rd).
Sweet corn shipper A Family of Farms, based in South Bay, FL is seeing sweet corn shipments picking up this week with steady volume through the months of April and May. The company’s bicolor corn will start shipping in late April and continue through the Fourth of July. The shipper has a similar situation to one of its Florida competitors, Duda Farm Fresh Foods of Ovideo, FL, which had lower sweet corn volume than normal through Easter, due to rain and cooler weather during the planting season. Sweet corn shipments also are expected to remain consistent for the transition to loadings taking place out of Georgia around Memorial Day.
On the West Coast, sweet corn shipper Five Crowns Marketing of Tracy, CA, experienced a late freeze in the Imperial Valley which reduced supplies during April. Volume shipments will arrive in May. However, there may be a bit of roller coaster ride with shipments because of rain and cooler weather during the planting season.
During the past five years, shipments of sweet corn have peaked in late June leading up to the Fourth of July, according to the U.S. Department of Agriculture’s Retail Report.
In 2017, sweet corn was promoted in an average of 4,600 stores per week. The peak weeks, however, showed significantly more promotions, with sweet corn on ad in 18,500 stores the week ending June 30; 17,200 stores the week ending May 26; and 16,400 stores the week ending September 1.
The leading states for sweet corn shipments are California, Florida, Georgia, Illinois, Michigan, New York, Texas and Washington.
Plentiful grape shipments crossing the border from Mexico will be starting in a few weeks, plus here’s a shipping update on sweet potatoes.
Mexican Grapes
Mexican grape shipments will get underway in late April, with peak loadings occurring between the last week of May and the third week of June. A majority of the Mexican grapes will be crossing the border at Nogales, AZ.
The Mexican state of Caborca will come into its major production in early June, after shipping its first box in late May. The first crop estimate is expected about April 19-20, but good volume is predicted.
This 2018 crop is expected to be similar to 2016, which yielded a normal volume of about 16 million boxes. In Mexico in 2017, there was a record-breaking fresh grape crop of 21 million boxes exported to the U.S. An additional 4 million boxes were sold in the domestic (Mexican) market.
Nearly all of Mexico’s table grape vineyards are in the state of Sonora. Sonora’s three basic grape-growing regions are Hermosillo, Caborca and Guaymas. Guaymas is the farthest south and ships the earliest Sonoran grapes. The Hermosillo growing district has production to the west of town, in the La Costa area — near the relatively warm waters of the Sea of Cortez — and to the north in Pesqueria. Generally speaking, Caborca supplies the end of Mexico’s fast and short May-June deal.
Sweet Potato Shipments
American sweet potato growers harvested 159,300 acres in 2017, down from 163,300 acres the previous year. From 2010-14, that number had remained between 115,000 and 130,000 acres. As acreage and yields have increased, farmers have seen lower markets, leading one to wonder if supply isn’t finally exceeding demand. Meanwhile, moderate volume of sweets potatoes are being shipping from North Carolina, with much lighter volume from other areas.
Louisiana Sweet Potatoes
Louisiana will continue shipping sweet potatoes into June, ranking a distant fourth in volume nationwide behind North Carolina, California and Mississippi. Cajun country is shipping about 25 truck loads of sweet potatoes a week. Loads are grossing about $1800 to Chicago.
By Sunonions
PARMA, ID – It’s official: Sunions are a phenomenon. It’s a rave. America’s first tearless and sweet onion hit retail shelves across the United States last December to accolades from consumer media nationwide. In just the first two months of what is the first season in wide distribution, Sunions reached more than one billion media impressions and counting in print, radio, web and television media including appearances on ABC’s The Chew and Good Morning America.
Consumers are responding to the buzz all across the country and visiting their local stores looking for Sunions. Along with dozens of questions regarding availability fielded through the Sunions website, messages streaming in from shoppers who put Sunions to the test demonstrate an overwhelmingly positive response.
“Just tried your onions. They are the best – I’m so surprised,” said one shopper. “I have bought ‘sweet onions’ before and was always disappointed. I couldn’t believe the taste! I hope I can always get them.”
“Just bought some and the statements are true,” said another shopper. “I sliced it up and there was a very strong onion odor but no tears and no bite! I buy a lot of onions and these will be on my list – good product.”
A game-changing product of more than three decades of research, development and natural hybridization by Bayer Crop Science, Sunions are a long-day sweet onion variety grown in the USA. But unlike other long-day onions, Sunions actually become sweeter and more tearless in storage.
It all comes down to the levels of volatile compounds responsible for pungency and tearing in onions. The levels of those compounds in other onions remain stable or increase during storage. In Sunions, these compounds do the exact opposite and decrease in prevalence to create a milder, sweeter and tearless onion over time. This natural process also promotes a strong level of consistency from bulb to bulb.
Unlike any other onion variety, a sensory panel with full authority and power to determine ship dates follows a tightly-controlled protocol that includes both flavor and tearlessness. Sunions will ship only once they are certified ready by this panel of tasting experts and with the support of a food lab test determining the proper levels of volatile compounds.
Sunions are marketed and distributed exclusively by Generation Farms, Onions 52 and Peri & Sons Farms.
Here is the outlook for loadings of Florida blueberries, peaches and Valencia oranges.
Florida blueberry shipments are now moving in decent volume and will continue until the middle of May.
Wish Farms of Plant City, FL should have about 250,000 pounds of organic fruit from Florida this year, compared to 100,000 pounds a year ago. Strawberries are Wish Farms’ largest crop, accounting for about 60percent of its volume, compared to 30 percent for blueberries. The company will wind up its strawberry season any day now.
In all, Florida blueberry production consists of about 7,000 acres and 1,000 growers. Florida shipped about 20 million pounds of blueberries in 2017, and a similar volume is expected this year.
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New Florida Blueberry Shipper
MIAMI, FLA. – Crystal Valley Foods (Crystal Valley) has announced that it will begin shipping conventional and organic Florida blueberries under the Crystal Valley label this season. The first shipments will begin at the end of March and they will be available through the end of May.
The company has an exclusive partnership with a grower/packer in Hawthorne, Fla. and they expect a good Florida season as weather in the region has been conducive to good volume and quality.
With the acquisition of Team Produce last year, Crystal Valley has been able to successfully enter into the berry category, supplying imported blueberries from September through April. The transition into Florida is the first step in offering their customers year-round blueberries.
About Crystal Valley Foods
Founded in 1994, Crystal Valley Foods is a leading grower and importer of produce from Central and South America. With offices and facilities in Miami and Los Angeles, the company is one of the largest importers and distributors of asparagus in the USA. Its extensive product line also includes baby vegetables, peas, beans, berries, baby lettuces, peppers and other specialty crops.
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Florida Citrus
The Dundee (FL) Citrus Growers Association reports Florida grapefruit shipments are winding down, but valencia oranges will continue through April. with storage crop available into June.
Florida Peaches
Florida peach shipments are just getting started will continue until the middle of May. with peak loadings mostly occurring during April. Traditionally, Florida peaches start as Chile exits the marketplace and before California, South Carolina or Georgia being shipments of new season fruit.
By Lipman Family Farms
IMMOKALEE, FL — Lipman Family Farms – North America’s largest open field tomato grower has entered into a definitive agreement to acquire Ontario, Canada based Huron Produce, a greenhouse grower and distributor of tomatoes and vegetables with operations in Canada, the U.S. and Mexico. Huron Produce packs under the Suntastic® brand. The expansion into greenhouse product will allow Lipman Family Farms to offer its customers hothouse and field grown tomatoes and vegetables on a year-round basis.
“The Huron Produce acquisition is truly transformative,” said Darren Micelle, COO of Lipman Family Farms. “We look forward to the opportunities resulting from the introduction of our proprietary varieties into the protected agriculture space. We have innovative new products planned that will create value for our customers. Likewise, Huron Produce can now expand their customer offering to include field grown product. This is a classic win-win transaction. The addition of Huron gives us extraordinary product depth, expands our collective capabilities and broadens our distribution footprint, allowing us to better serve our customers with a single, year-round solution for tomatoes and vegetables. We’re excited to welcome the Huron team to the Lipman family.”
Huron Produce is a multigenerational, family owned company with over 50 years in the produce business. Commenting on the acquisition, Jeff Kints, President of Huron Produce said, “The transaction with Lipman will allow Huron to build on our years of success, accelerate our business strategies and enhance our service and product offering to our customers.”
As part of the acquisition, Lipman plans to expand operations with new facilities in Canada, Nebraska, a second location in Denver and a warehouse in McAllen, Texas. The acquisition is expected to close in April 2018.
About Lipman Family Farms
Lipman Family Farms is the largest field tomato grower in North America. From seed to shelf, Lipman’s total supply chain control – research & development, farming, processing, repacking, logistics to marketing – delivers the consistency and quality that has made Lipman Family Farms North America’s most dependable source of fresh tomatoes and vegetables.