Posts Tagged “feature”

A Shipping Update on MI Apples and Red River Valley Spuds

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DSCN4388Loading opportunities for Michigan apples this season, as well as Red River Valley potatoes, were expected to be good.  However, more shipments than originally thought, should occur from both shipping areas.

Michigan apple shipments two years ago were the worst on record because of an early freeze.  However, in the fall of 2013, it was the best crop on record.  This season, shipments were expected to be good, but are turning out even better.

The Michigan apple crop now stands at 25 million bushels, about three million more than originally predicted.  The state is now averaging about 300 truck loads per week.  Michigan is the third-largest apple producer, behind New York and Washington state.

Michigan apple shipments – grossing about $3200 to Oklahoma City.

Red River Valley

Trucks remain in short suppply for RRV potatoes.

There should more Red River Valley potato shipments this season for red potatoes than originally thought, primarily due to better yields in North Dakota.  The average potato yield in the state jumped 25 hundredweight (cwt.) per acre compared to last year, to a record 315, which shattered the 300 cwt. per acre record set in 2012.   The expected higher shipments come despite the harvested acres estimate dropping from 86,000 in June to 79,000 in November; a plunge of 8 percent. Despite the big drop in harvested acres, the 2014 crop still topped the 2013 crop by 1.7 million cwt. (7 percent), producing a 24.3 million cwt. crop.

 Minnesota’s Red River Valley portion also has fewer acres, but like North Dakota, had higher yields, 400 cwt. per acre.  Minnesota’s June acreage estimate was 49,000 acres, but the November 1 estimate came in at 42,000 acres, a 14.3 percent drop.
Red River Valley red potatoes – grossing about $2000 to Chicago.

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West Coast Port Delays Increases Trucker’s Chances for Produce Claims

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DSCN3254+1If you haul imported produce at ports ranging from Washington state to Long Beach on the West Coast, your chances of claims are increasing as delays in getting product out of the ports are increasing, due to a labor dispute.

Imported perishables coming through West Coast ports have been delayed two to three day late on average.

This is resulting in a domino effect through distribution procedures and with timely deliveries.   These delays effect overall shelf life of the imported fruit and in the end trickles down to less time for consumers to eat the product.

The Pacific Maritime Association said recently a slowdown by the International Longshore and Warehouse Union (ILWU) in Seattle and Tacoma, Wash., had spread to Los Angeles and Long Beach. The two California ports handle about 64 percent of containerized cargo on the West Coast.  The union has denied a slowdown is taking place in either state, blaming the problems on a business model that  interferes with on-time delivery of chassis systems.

 Congestion has been occurring since at least last September in Los Angeles and Long Beach, where management lays blame on a variety of causes including a shortage of chassis, rail cars, surging cargo volume and a shortage of truck drivers. Labor strife will aggravate that, they said.

“Although the existing congestion has had ripple effects throughout the supply chain, it is the ILWU slowdowns that now have the potential to bring the port complex to the brink of gridlock,” Pacific Maritime Association spokesman Wade Gates said in a news release.

 In Seattle and Tacoma terminals that typically move 25 to 35 containers hourly, were moving just 10 to 18, according to the Pacific Maritime Association.

The two sides have been in negotiations since July 1, when the last contract expired.

 

 

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The Mark of Good Leadership

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IMG_6364By Larry Oscar

There has been a lot of interest, comments, and attention paid to the subject of leadership recently. Oddly enough about nine years ago I had a series of articles and on the subject. I guess the articles must have been ahead of its time.

The military has been very interested in the subject for over 238 years. They have a great field manual on the subject. It dates back to the Revolutionary War. Funny, that when your life is on the line one tends to pay attention to the subject more than normal. Leadership is something that most of our CEO’s and politicians never took a course in. And believe me it shows.

Larry Oscar                                                                     Every Saturday we have sporting events such as baseball, football, hockey, soccer, and golf. Most of us are so caught up in the action of the game that we fail to note one of the more important points of the sport, the end of the game hand shake. Did you ever notice at the end of the competition how the teams congratulate each other on their efforts? They shake hands, embrace, pat each other on the back, and depart as friends. The loser congratulates the winner and the winner congratulates the loser for their valiant effort. This is how it should be.

To be a gracious winner and loser is highly important. It is a mark of class. Good leaders know how to win and lose with classy dignity.  We have seen very poor leadership by our politicians in the past few decades. You are not very smart when you tell your opponents, “We don’t mind you coming along for the ride, but you got to get in back,” and then ask them for their help in passing legislation in the very next sentence.

Wise leaders get out in front of the issue instead of letting it become a crisis and then trying to clean up the mess after the fact. Good leaders respect their opponents, and they use humor to ease tense situations. Poor leadership takes some time before it becomes obvious to their supporters what the problem is. Nobody wants to see who they voted for fail. It would be a reflection of their poor judgment in voting for that person.

On the other hand, we are a product of the choices we make in life. All of your choices have consequences. Recently one of our more famous politicians was stumping in the great state of Arkansas and encouraging voters to “vote with your heart.” Are you kidding me. Voting with our hearts is what got us into this mess in the first place.

I also seem to recall that his misbehaving with his heart and his cigar got him into a lot of trouble when he was in the White

House.  One would have thought that he would have learned something, but politicians seldom do.

Larry Oscar is a graduate from the University of Tulsa and holds a degree in electrical engineering. He is retired and lives with his wife on a lake in Oklahoma where he brews his own beer, sails, and is a member of numerous clubs and organizations.

 

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Produce For Kids Reaches $5 Million In Donations

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DSCN4640By Produce for Kids

ORLANDO, Fla.  – After the close of the 2014 Produce for Kids campaigns, the organization reached a milestone donation of more than $5 million raised to support local children’s charities. Through in-store campaigns, the digital Power Your Lunchbox Pledge, and with the help of retail and produce partners, Produce for Kids is making a substantial impact in local communities.

During Produce for Kids’ 12th year, campaigns were supported by 17 grocery store chains and more than 40 fresh produce companies, raising $453,000 to support children’s charities in retail partners’ local markets.

“It gives me great pleasure to announce that Produce for Kids has surpassed the $5 million mark in total donations raised,” said John Shuman, president, Produce for Kids. “When we started Produce for Kids 12 years ago, we never imagined that it would turn into such a year-round healthy eating resource for families or make the impact it has had in local communities throughout the country.”

New in 2014, Produce for Kids launched the first Power Your Lunchbox Pledge, a digital campaign encouraging families to pack healthier lunchboxes. Through a dedicated microsite, media and blogger outreach, and social media efforts, more than $5,000 was raised to support health and wellness classroom projects through DonorsChoose.org. The campaign resulted in nearly 15 million media impressions and more than 20 million social media impressions. The second annual Power Your Lunchbox Pledge will run from August 3 to September 18, 2015.

Moving into its 13th year, Produce for Kids’ flagship in-store campaign welcomes on several new retail partners. Partnership opportunities are open for produce companies at the following retailers: ACME Markets, Ahold’s GIANT and Martin’s Food Stores, Giant Landover, and Stop & Shop divisions; Associated Wholesale Grocers’ Major Savings, Advantage, Independent, Country Mart, Homeland and United divisions; Meijer Stores; Price Chopper; Publix Super Markets; and Roundy’s Supermarkets, Inc.’s Pick n’ Save, Copps Food Center and Metro Market divisions.

In addition, Produce for Kids will be launching a new longer-term kids club loyalty program at Associated Wholesalers, Inc. and Niemann Foods. The full marketing program will include in-store signage, shopper coupon booklets and promo item shipments.

If you’re interested in finding out more about a campaign or how Produce for Kids can support you with your healthy eating initiatives, please contact Mallory Hartz at mallory@produceforkids.com.

About Produce for Kids®

Produce for Kids® is a philanthropically based organization that brings the produce industry together to educate consumers about healthy eating with fresh produce and raises funds for local children’s non-profit organizations. Since its creation in 2002 by Shuman Produce Inc., Produce for Kids has raised more than $5 million to benefit kids. To learn more about Produce for Kids and healthy eating, visit www.produceforkids.com, Facebook, Twitter, Pinterest or Instagram.

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Truck Demand Rises for Washington Apples with Monster Crop

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DSCN4533While the Washington State bumper apple harvest is nearly finished, a monster sized crop may be getting even bigger – increasing your loading opportunities for the season.

The initial estimate for Washington apple shipments was about 140 million boxes, however, some growers believe it could now hit 150 million boxes.

In fact, the Washington apple crop is so huge some growers are already mentioning sending some of the fruit originally intended for the fresh market,  to the processed market, or being used for cow feed.  We expect to hear this talk coming from Idaho potato farmers, who are notorious for over production, but not the apple folks!

There also are concerns by apple growers and shippers about the availability of transportation in the midst of large volumes.

One shipper recently stated, “We have needed almost 300-400 more trucks each week out of the state of Washington to deliver this product.  And that’s been difficult especially this time of year as the Northwest begins shipping Christmas trees, so trucks are much more difficult to obtain.”

Under these circumstance one would expect produce freight rates for apple hauls to be stronger this year – something we will  find out in the weeks and months ahead.

Washington state apples from the Yakima and Wenatchee Valleys – grossing about $6800 to Orlando.

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Florida Citrus Shipments are Spiking; Onion Shipments Abound

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DSCN0563+1HAPPY VETERAN’S DAY – WE APPRECIATE YOUR SERVICE!!!

Florida grapefruit shipments have went from practically nothing to good volume almost over night entering the month of November….Additionally, there’s an over abundance of onions, both domestically and from Peru.

Overall, Florida citrus hauls are ranging from grapefruit, to tangerines and oranges  This citrus is said to have good maturities and good eating quality, and that should translate into fewer claims for produce haulers.

Central Florida citrus – grossing about $2500 to New York City.

Onion Shipments

There are big onion volumes from Peru and the Western United States, which is expected to continue at least through the end of the year.

Through October, 2,100 loads of Peruvian onions had been shipped by boat to the United States, up from 1,800 loads last year during this same period.  Additionally it is reported about 1,000 loads were in sheds or on the water in early November, up from 600 last year.   Ample loading  opportunities of Peruvian sweets from American ports are seen through mid-February.

On the domestic front for onion shipments an oversupply appears to be the case, ranging everywhere from Colorado to Utah, Washington and other West Coast states.  Overall, volumes are up both from Peru and in the Western United States this fall.   With retail sales off about 15 percent industry-wide as of early November,  the main problem for onion haulers will be finding a load because shippers may not have a place to deliver them.

Idaho and Malhuer County Oregon onions – grossing about $3650 to Dallas.

Washington’s Columbia Basin potatoes and onions – grossing about $6000 to Philadelphia.

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California Seasonal Shipping Areas are Now in Transition

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 DSCN4528This isn’t one of the better times of the year for hauling produce from California as seasonal shifts to different growing areas or varieties are underway, with items ranging from lettuce to citrus and strawberries.

California Produce Shipments

Lettuce shipments continue from Huron in California’s San Joaquin Valley, but a shift is slowly taking place to the desert of Yuma, AZ to be followed shortly by the nearby Imperial Valley in California.

Yuma lettuce shipments should hit decent volume within about a week.  Shipments have been light out of California and Arizona for weeks and could very well remain lighter than normal through Thanksgiving, if not the end of the year.

Romaine volume is particularly light and you should use caution hauling this product coming out of Huron.    Warmer than normal weather during October is resulting in romaine growing too fast, leading to some quality issues – particularly with the product going to seed.

Lettuce shipments shifted from Salinas to Huron the last half of October.  Now the shift is from the short Huron harvest to Yuma and the Imperial Valley.

California Citrus Shipments

Valencia shipments are coming to a seasonal end, while light loadings of navel oranges have started from Central and Southern California, as well as Arizona.

California Strawberry Shipments

While Salinas and Santa Maria strawberry shipments are nearly finished for the season, light, but increasing volume is taking place from Ventura County.

California Grape Shipments

Meanwhile, grapes continue to provide some of the heaviest volume out the San Joaquin Valley.  Loadings are averaging over 1,700 truck loads per week.

Central San Joaquin Valley grapes, other items – grossing about $5400 to Atlanta.

 

 

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San Franciso Produce Market Celebrates Expansion

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DSCN4624The completion of the first phase of the San Francisco Wholesale Produce Market’s expansion was recently celebrated by produce merchants, city leaders and members of the community.

Located on the east end of the market at 901 Rankin St., the new building adds 82,000 square feet of produce distribution and warehouse space to the market’s existing 300,000 square feet.  The building provides office space as well as 20 refrigerated dock doors. It sits on about 3 acres.

Approximately 25,000 square feet of the new facility already has been leased to Mollie Stone’s Markets, Mill Valley, Calif.  It will serve as the central produce distribution center for all nine of Mollie Stone’s stores in the region. The retailer of organic and natural foods plans to build out the space to meet its needs and move there in early spring.,  Mollie Stone’s had been part of the market for several years but had outgrown its existing space. 

The wholesale market is finalizing a lease on the other space and hopes to make an announcement shortly.  Prior to 2013,  3 acres of space wasn’t even in the market until city land became part of the property.

The completion of this facility is the first phase of the wholesale produce market’s $100 million investment and expansion plan, providing a modern and efficient home from which to deliver fresh fruits and vegetables to restaurants and local grocers in the city  The new facility is part of a much larger long-term “reinvestment plan” made possible when the city of San Francisco, which owns the land on which the market sits, signed a 60-year least with the market in September 2013.

 

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Lemon Prices Have Nearly Doubled in the Past Year

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Many consumers have noticed U.S. lemon prices have reached record highs this year.

USDA data shows that for the year ending July 31, lemon prices increased the value of the crop by 62 percent to $647.7 million.  It also means you’re paying a lot more for them at the store.

Lemons received a big boost this year froDSCN2969+1m several different factors. The prices of limes tripled by May for some buyers after crop damage in Mexico led to tight supplies and varying effects on supply from drought conditions in California were both key contributors, according to Bloomberg.

The Bureau of Labor Statistics reports that wholesale lemon prices almost doubled from the previous year, and retail lemons are up 36 percent to $2.327 per pound in August.  According to Bloomberg, that is the highest since the Bureau began tracking them in 1980.

This price increase has been good to the California lemon growers who harvest lemons almost year-round and accounted for 91 percent of the U.S. lemon crop this year.

Harold Edwards, Limoneira CEO Harold Edwards, Limoneira’s Chief Executive Officer, told Bloomberg, “This has been by far our most profitable lemon year.”  Edwards added that Limoneira, which farms 4,000 acres of lemons in California and Arizona, received about $24 on average for each 40lb carton sold in the fiscal year that ends next month.  This is a 50 percent increase from a year earlier.

Sunkist Growers tells Bloomberg that consumers, restaurants and beverage makers have all boosted lemon demand to an all-time high due to growing popularity.  Mintel Group Ltd’s Menu Insights database shows that lemon-flavored ingredients on food-service menus climbed approximately 1 percent between the second quarters of 2011 and 2014.

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Second New Perishables Rail Service Closes its Door in 2014

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DSCN4334In sort of a flashback to the ’70s it seems history is repeating itself as a lot of hoopla is taking place about the rail industry getting more serious about hauling fresh produce – and competing with trucks.  In the short run it seems not to have worked out that well — at least for some.

The latest example is McKay TransCold of Minneapolis, which closed its doors November 1st, after launching a new refrigerated boxcar service last June.  Known as Transcold Express, it had weekly runs between Selma, CA and Wilmington, IL.  However, the company had problems with its cross dock operation in Wilmington, where it had spent monies on significant upgrades of the facility.  Unable to find additional investors to continue operations, the company decided to call it quits.

Another short lived example of a foray into the rail perishables business is the Cold Train Express Intermodal service that suspended service last summer.  Cold Train saw its on time service on BNSF’s Northern Corridor plummet from 90 percent in November 2013 to only 5% percent last April.   Cold Train said the reason relates to soaring oil and coal shipments by rail.  For example, the Northern Corridor of BNSF saw tank car shipments increase from 20,000 three years to over 400,000 this year.  Unlike it’s southern routes, which has two sets of tracks, the northern route has only one set of rail tracks.

Meanwhile, Railex, which started a rail service a few years ago, seems to be doing better than anyone, with it’s coast-to-coast service.  Another service, Tiger Cool Express LLC, also remains in business, but we hear little about it.

Produce is viewed by some in the rail industry as the last long-haul, $100 billion market that intermodal has yet to penetrate.  Still, over 95 percent  of fresh produce is delivered by truck in the U.S..   Rail officials are counting on trucks supplies tightening, with the driver shortage continuing to worsen and increasing government regulations on the trucking industry – which in theory is supposed to be deregulated.

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