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A new report from the USDA predicts Chilean mandarins and lemon exports will increase for the 2023-24 season.
The USDA forecasts that Chilean lemon production will grow by 6.7% in 2023-24, while exports are expected to grow by 8.8%.
While Chilean orange production is expected to dip slightly, Chile’s mandarin area planted has grown rapidly over the past 10 marketing years due to high profits, the USDA report said. As a result, Chilean mandarin exports in 2023-24 are forecast to grow by 7.3%.
Chilean exporters are attempting to diversify their export markets beyond the U.S. In March 2023, Chile gained access to the Mexican market for lemons, clementines and mandarins under an inspection system that avoids fumigation, improving the quality conditions and increasing shelf life.
The report said Chilean lemon acreage for 2023-24 is forecast at 20,139 acres, up 1% from the previous season.
Lemon area planted in Chile grew from 14,606 acres in the marketing year 2016-17 to 19,968 acres in the marketing year 2022-23.
“In the Valparaiso and Coquimbo regions, citrus became a viable alternative to other crops such as avocado because of its high price and low water requirement,” the report said. “According to Post sources, Chilean lemon producers are currently focused on increasing productivity and yields by better managing water use and disease.”
The USDA forecasts Chilean lemon output to grow by 6.7% to 175,000 metric tons in 2023-24 due to the increase in area planted.
Most Chilean lemon exports occur between June and September, typically peaking in July or August, to Northern Hemisphere markets. The lemon production area spans from the Coquimbo region, in the north of the country, to the O’Higgins region in the central south, the report said. The Metropolitana region, in the central part of Chile, holds 41.1% of the lemon area planted, making it the top-producing region.
For the marketing year 2023-24, Chilean lemon exports will grow 8.8% and total 74,000 metric tons.
The USDA said more than 60% of Chilean lemon exports go to the U.S., making it the top market among export destinations.
Chilean orange production will dip by 2.2% and total 175,000 metric tons in 2023-24, the report said. Planted area for oranges in Chile declined 1% in the last year to 15,567 acres, according to the report.
Orange planted area has declined 15% from 18,258 acres in 2011-12 as producers shifted to mandarins and lemons because of their higher profitability, the report said. Chile’s Metropolitana region is still the top orange-producing region in Chile, holding 39.3% of the orange area planted, followed by the O’Higgins region, which holds 31.3% of the area planted.
Chilean orange exports will decrease by 5.5% and total 90,000 metric tons in 2023-24 compared with the previous year.
In Chile, the orange marketing year starts April with the beginning of the harvest season, with the report noting that the bulk of Chilean orange exports is between July and September each year and peaks around August.
The largest market for Chilean oranges is the U.S., which represented 93% of total exports in 2022-23, the report said.
Chilean mandarin/tangerine production in 2023-24 will increase by 7.1% and total 287,000 metric tons.
The USDA said the mandarin area planted has increased by nearly 2,500 acres per year and will reach nearly 30,000 acres in 2023-24.
“Due to high profits, mandarin area planted grew significantly in the past ten marketing years,” the report said. “Specifically, the W. Murcott variety became a viable alternative to replace other crops such as oranges or table grapes.”
The Coquimbo region is the top mandarin production region in Chile, holding 47.4% of the total acreage. The O’Higgins and the Valparaiso regions, in the central part of the country, hold 21.9% and 20.7% of the area planted, respectively.
Area planted in all mandarin-producing regions grew in the past three marketing years.
For 2023-24, the USDA projects that Chilean mandarin/tangerine exports will increase by 7.3% to 250,000 metric tons.
Chile exports mandarins from April until December, peaking around September.
The top export market for mandarins is the U.S., which receives 95% of Chilean mandarin exports.
Export volumes from Peru, Ecuador and Brazil rose 24% between the week ending Dec. 9, 2023, and the previous week, according to a report from the National Mango Board of Orlando, FL. was over 1.2 boxes.
Brazil
Brazil reached over 12 million boxes for the season, with approximately 265,798 for the week of Dec. 9.
During the same week last year, volume shipped from Brazil was 111,612 boxes for a total of nearly 9.4 boxes.
Ecuador
Ecuador is currently shipping the highest volumes out of the three countries with nearly 810,000 shipped during the week.
That week’s volume is about 45.2% higher than what was shipped the previous week.
The country has shipped over 4 million boxes for the season.
Perú
The volume shipped from Peru was approximately 91,212 boxes for a total of 419,508 boxes for the season. The week’s volume is about 42% higher than what was shipped the previous week.
During the same week last year, volume shipped from Peru was 1.1 million boxes for a total of nearly 2.5 boxes
Trade numbers through October show little change in U.S. fresh produce export shipments compared with a year ago, while U.S. imports of fresh fruits and vegetables had a modest increase in the last 12 months.
The USDA reported total exports of fresh produce from November 2022 through October 2023 totaled $6.9 billion, up 1% compared with a year ago but down 4% from 2018.
U.S. vegetable exports were rated at $2.8 billion for the period, down 1% for the period but up 9% from 2018; fresh fruit exports totaled $4.2 billion, up 2% compared with a year ago but down 11% compared with 2018.
U.S. imports of fresh produce totaled $32 billion from November 2022 through October 2023, up 5% from a year ago and 43% higher than 2018.
U.S. fresh fruit imports were pegged at $19.5 billion, up 1% from the previous year and up 40% from 2018; imports of fresh vegetables were valued at $12.5 billion, up 12% from a year a ago and 50% higher than 2018.
Top U.S. exports for November 2022 through October 2023, compared with 2022 and 2018.
- Apples — $869.1 million, down 1% from 2018 and down 18% from 2018.
- Berries — $798.8 million, down 3% from 2022 but 12% above 2018.
- Grapes — $622.6 million, down 4% from 2022 but down 18% from 2018.
- Oranges — $593.2, up 8% from 2022 but down 16% from 2018.
- Lettuce — $592.1 million, up 1% from a year ago and up 23% from 2018.
Top U.S. imports for November 2022 through October 2023, compared with 2022 and 2018.
- Berries (excluding strawberries) — $4.2. billion, down 1% from 2022 but up 74% from 2018.
- Tomatoes — $3.2 billion, up 15% from 2022 and up 34% from 2018.
- Avocados — $2.88 billion, down 17% from 2022 but up 20% from 2018.
- Bananas — $2.75 billion, up 10% from 2022 and 12% higher than 2018.
- Grapes — $2.3 billion, up 7% from 2022 and up 46% from 2018.
DAT’s 2024 Freight Rate Focus report notes pandemic-sparked disruptions of 2020 and 2021 stretched routing guides beyond their threshold and pushed truckload rates to record highs. The high rates attracted a record number of new carriers, with the number of for-hire interstate carriers nearly doubling.
While truck rates are expected to rise to some degree, the DAT report said it may not be until the middle of 2024.
“The truckload market cycle is bottoming out as carriers continue to exit the industry,” the report said. “However, without any significant change in truckload demand expected before the second quarter of 2024, the market may remain in its current state for quite some time – likely until at least midway through 2024.”
Other shocks to the global supply chain, including war, could change pricing quickly, the DAT report said.
DAT’s prediction is current market conditions will continue until late Q2 when the market should finally find equilibrium.
“The truckload market should revert with spot rates rising over contract rates sometime in the first half of the year, and demand will normalize as the supply chain disruptions that began during the pandemic work their way out of the system,” the report said.
Average U.S. refrigerated truck rates (per mile)
- Jan. 3 — $3.88.
- Feb. 7 — $3.72.
- March 7 — $3.48.
- April 4 — $3.43.
- May 2 — $3.37.
- June 6 — $3.58.
- July 4 — $3.59.
- Aug. 1 — $3.57.
- Sept. 5 — $3.69.
- Oct. 3 — $3.41.
- Nov. 7 — $3.33.
- Dec. 5 — $3.21.
(Source: USDA)
Freight costs for produce shippers declined during 2023, but the rate dip may be setting up a return to firmer pricing in 2024.
In January 2022 for a load of refrigerated produce out of California to the East Coast averaged $5.19 per mile, according to the USDA. By late July, the rate declined to $3.55.
U.S. fresh apples remaining in storage totaled 124.4 million bushels in a Dec. 1 report from the U.S. Apple Association (USApple). That figure is up 33% more than inventories reported this same time last year and 20% more than the five-year average for December, the association said.
USApple also said that processing apples totaled 48.5 million bushels, which is up 19% over the same reporting time last year. The 48.5-million-bushel figure is 17% more than the five-year average for the month.
Washington leads the states in apple holdings, according to the report, with 23,399,776 42-pound bushels of fresh apples in regular storage and 81,986,890 42-pound bushels of fresh apples in controlled atmosphere storage, according to the association.
USApple reports gala leads all varieties in fresh apples in controlled storage with 18,758,807 42-pound bushels, while red delicious comes in second with 17,853,167 42-pound bushels of fresh apples in controlled atmosphere storage. Pink Lady/cripps pink tops all varieties in fresh apple holdings in regular storage with 3,893,710 42-pound bushels, and Honeycrisp is second with 3,580,764 42-pound bushels of fresh apples in regular storage.
According to the association, Honeycrisp leads all processing apples in controlled-atmosphere storage with 7,482,773 42-pound bushels, and golden delicious comes is second with 3,711,724 42-pound bushels in controlled-atmosphere storage. Golden delicious also leads processing apples in regular storage with 1,809,405 42-pound bushels, and assorted other varieties are secon with 1,803,082 42-pound bushels in regular storage.
A series of winter cold fronts are expected over the next week in the Arizona-California desert growing region, bringing a pattern of light rain followed by cool temperatures and lettuce ice conditions, according to a press release by Markon Cooperative of Salinas, CA.
Light rain is forecast for Sunday, January 7, but less than .10 inches of rain is expected.
Temperatures will cool significantly through most of next week, starting on Monday, January 8. Morning lows will drop below freezing, and widespread lettuce ice is forecast across all desert valleys.
Significant production and loading delays will occur next week. Markon will work with suppliers to build inventory leading into these weather challenges in order to minimize disruptions.
Markon inspectors will continue to monitor weather forecasts closely and will update further as needed.
After what’s been a complicated year for Florida citrus growers, with very low productive levels due to hurricane damage and the ever-present citrus greening disease, a recent estimate by the USDA Agricultural Statistics Board is projecting an increase in both grapefruit and tangerine production.
The forecast for all grapefruit production is 2.40 million boxes, up 500,000 boxes from the October forecast. If realized, this would be 33% more than last season’s final production.
Red grapefruit, now at 2.1 million boxes, up by 450,000 boxes from the October forecast. Fruit size is projected to be above average.
White grapefruit volumes are forecasted up 50,000 boxes and are now at 300,000 boxes. Projected fruit size at harvest is slightly above average while projected droppage is below average.
Tangerine and tangelo production is estimated at 550,000 boxes, up 50,000 boxes from the October forecast.
The USDA’s forecast for all orange varieties remains unchanged for the October forecast at 20.5 million boxes.
Research from John Hopkins Medicine states that blackberries are second only to black raspberries when it comes to overall nutrition. Blackberries are vitamin and nutrient-dense with a high amount of fiber and antioxidants and less sugar than other berries, says a press release from Berry Farms of Compton, CA.
Sweet Karoline is a blackberry variety co-owned by Berry Fresh that is known for its sweet flavor and resistance to red cells, according to the release. Berry Fresh says it is a year-round grower and marketer of premium blueberries, blackberries and raspberries to customers in the Americas.
As the Peruvian sweet onion season draws to a close, Keystone Fruit Marketing of Greencastle, PA, a division of Progressive Produce of Los Angeles, is gearing up to transition from Peruvian Mayan Sweets to Mexican Mayan Sweets.
Keystone’s Mayan Sweets are well-recognized as a respected and established brand with a long history. The company’s foray into sweet onions began in the early 1990s when it became the first company to grow sweet onions in Peru.
The founders of Keystone wanted to have a year-round sweet onion program, and that meant going to various regions across North and South America to ensure a high-quality sweet onions available throughout the year.
Today, Keystone Fruit Marketing remains one of the largest importers of sweet onions from Peru into the United States and now has grower partners in multiple regions, including Washington, California, Mexico, Texas and Georgia.
The Peruvian sweet onion season, a cornerstone of Keystone’s year-round program, typically runs from late July through March, with peak supply from September to December.
As the Peruvian sweet onion season nears its conclusion, Keystone anticipates the start of the Mexican sweet onion season, set to kick off in mid-January. Early indications suggest an excellent crop.
Keystone expects goos supplies of Mexican sweet onions available through April, along with a full line of onion varieties, including red, white, yellow and it flat sweet onions for 2024.
Following drought restrictions imposed in May, which saw daily transits and vessel capacity reduced, the Panama Canal Authority (ACP) announced Dec. 15 that it will increase the number of daily transits to 24 starting in January.
This comes as rainfall and lake levels for November proved to be better than expected, coupled with the positive outcomes from the Canal’s water-saving measures.
Additionally, the Panama Canal will allow one booking slot per customer per date, with some exceptions for quotas offered to vessels competing through the reservation system.
These measures allow the majority of vessels that want to transit the Canal to have a better chance of obtaining a reservation.
Currently, 22 vessels transit daily, divided into 6 Neopanamax and 16 Panamax. This restriction is in response to the challenges posed by the current state of Gatun Lake, which is experiencing unusually low water levels for this time of the year due to the drought induced by the El Niño phenomenon.
The canal is supplied by two nearby lakes which received 50% less rain than usual between February and April.
With this, 2023 became the second driest year in recorded history of the Panama Canal watershed, which led to the implementation of an operational strategy focused on water conservation and transit reliability.
Approximately 3% of global maritime trade volumes traverse the Panama Canal. Over 50% of the tonnage navigating through the maritime passageway originates from the trade lane connecting the East Coast of the U.S. to Asia, followed by South and Central America’s routes. Agricultural products are among the key commodities transported through the canal.