Posts Tagged “feature”
By the time the 2015 Super Bowl reaches the end of the first quarter on Feb. 1, at least 125 million people will have the opportunity to see a fresh produce item advertised along with the top consumer brands in the world.
For the first time ever, a fresh produce item will share the spotlight with nachos, beer, colas and other products that typically fill the advertising space of the National Football League’s annual championship game. This year, a 30-second spot touting Avocados From Mexico will share the limelight. The commercial for Avocados From Mexico, the number-one selling avocado in the United States, is being kept under wraps until it debuts at the end of the first quarter.
Soon after the advertisement airs, Avocados From Mexico will launch an aggressive social media campaign designed to get game-watchers in the Mexico spirit, and will increase awareness that Avocados from Mexico are always in season and pair perfectly with their football celebrations.
In January and February 2015, the amount of avocados imported to the United States is expected to be more than 285 million pounds, with Mexican avocados leading the way as the top importer and the top seller.
Eating guacamole pairs very well with football-watching and there has been promoting of Mexican avocados and guacamole in many different venues including national consumer advertising, in-store displays, in-store radio, in coupons and in public relations efforts. The campaign also is driven by the promotions teams of Avocados From Mexico and the Old El Paso line of consumer product goods, including taco shells and taco-making kits.
My first visit to the Hunts Point Terminal Produce Market was in February 1989. Over the past 25 years I have visited the world’s largest produce wholesale facility more than 50 times.
Having been to most of the nation’s major wholesale produce markets, New York City’s South Bronx mammoth is the most fascinating. Being so large it has the most activity, the largest volume of trucks – and produce – moving in and out of the market.
Whenever possible, I enjoy visiting with owner operators, small fleet owners and company drivers who are at Hunts Point. I’ve heard the stories of excessive long delays waiting to unloading, because a receiver is using their reefer unit as a free warehouse. I’ve been told about the unfair claims truckers face, especially on loads that have lost market value from the time it was bought until it arrives at destination. There also are complaints about the $20 gate fee, however, these are often included anymore as part of the freight rate.
While these problems still exist at Hunts Point, it seems I’m finding fewer trucker complaints. Granted, I am only able to talk with a minute percentage of the 130,000 truckers that go the market each year.
However, as transportation costs increase, and good, dependable service becomes more of a premium, it seems more produce receivers than in the past appreciate receiving a delivery on time and in good condition. In other words, you pay for what you get.
Trucks are in greater demand than ever. You hack off a driver, and he or she has other choices. They don’t have to deliver to Hunts Point or anywhere else. In talks with drivers at truck stops and other places, I used to hear as often as not, they simply would not go to Hunts Point because of traffic, gridlock, tolls and yes – treatment at the docks. I don’t hear it as often as I used to.
Hunts Point only has about one-third the number of wholesalers on the market compared to when it opened in 1967. I like to think that while the consolidations, mergers and acquisitions have resulted in fewer, but larger merchants – hopefully their growth resulted from good, honest businesses practices.
For whatever reasons, Hunts Points is a pretty interesting place to visit. — Bill Martin
(This is the last of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
At the Hunts Point Terminal Produce Market there are four long rows. On the ground floor are the sales offices and docks. Upstairs one can stand at one end of a hallway one-third of a mile long and the other end is so far away the walls, floor and ceiling appear to come together. On each side of the massive hallway are the offices of the wholesalers.
In 1967, the new Hunts Point produce market had 125 wholesalers receiving fruits and vegetables. Today, due to mergers, consolidations and companies falling by the wayside, there are only 40 wholesalers, although their operations tend to be much larger than in the early days.
The largest company on the market is D’Arrigo Bros. Co. of New York Inc., which has 30 units. However, it is even larger when considering the family owned operation also has 30,000 acres of farming in California and Arizona. At the same time D’Arrigo and other wholesalers service thousands of produce buyers from all walks of life on a daily basis.
In some form or another, they all are dependent on the reliable service of the trucking industry to be successful in their own businesses.
I’ve known Matthew D’Arrigo, vice president of D’Arrigo Bros. for nearly 30 years. The company has a great reputation not only in the produce industry, but with produce truckers who have delivered product to the operation. D’Arrigo knows the livelihood of the company depends in part on good, reliable service from produce haulers. His company treats truckers accordingly.
He speaks of the continuing rise in costs of transportation and recalls late June 2014 when some produce rates from California to New York City hit $10,000. Many produce folks who pay the freight rates don’t necessarily like the higher costs, but rationalize their thinking knowing their competitors are pretty much paying the same rate for a truck.
Wholesalers at Hunts Point tend to depend upon truck brokers and logistics companies to handle their transportation needs. Most wholesalers simply don’t have the time, expertise or inclination to arrange the trucks themselves. — Bill Martin
(This is the third of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
One of the most active produce shipping areas in the United States is the Lower Rio Grande Valley in South Texas.
Numerous vegetables and tropical fruits from Mexico are crossing the border at McAllen, Tx and this area is only going to see increasing volume in the years to come. More warehouse space is being build to receive Mexican produce shipments and to act as consolidation and distribution centers.
Perhaps the largest volume item crossing the border – particularly this time of the year – are Mexican avocados, spurred in part by this Sunday’s Super Bowl. It has become a huge snack for people watching this event. This year over 285 million pounds of avocados will be imported to the United States; that’s over 7,125 truck loads!
Another leading item is actually coming out of South Texas. Grapefruit shipments are averaging about 400 truckloads a week, while Texas oranges amount to about half this volume. There are Texas cabbage loads coming out of the Winter Garden District near San Antonio.
Still, most of the produce volume is with Mexican produce shipments crossing the South Texas border. Items range from broccoli to carrots, roma tomatoes, strawberries, raspberries and watermelons, among others.
South Texas produce shipments – grossing about $3200 to Chicago; $2800 to Atlanta.
Here’s an outlook on loading opportunities for imported mangoes and watermelons for the next few months.
Cool weather has slowed watermelon shipments in Mexico crossing the border into the U.S., both at Nogales, AZ and South Texas until the middle of March. The good news is Mexican watermelon shipments could be up 20 percent from last year by the last half of March.
Mango shipments could be light until March, when Mexico and Guatemala start shipping in volume.
Peruvian mango volumes were increasing on a limited basis in the second half of January.
At the same time Ecuadorian mango imports to the U.S. should wind down by the end of January. About 8.9 million boxes of Ecuadorian fruit had shipped to the U.S. as of January. 10th.
Peru is expected to ship about 8.9 million boxes to the U.S. this season Through January 10th, about 1.6 million boxes of Peruvian fruit had been received, 21 percent less than was projected for that date.
Mexican mango exports should start arriving at American ports in mid-February and Guatemalan exports about a week later.
Peruvian mango imports will likely peak in early February at U.S. ports before tapering off. Imported mango loading opportunities won’t likely return to seasonal norms until Mexico and Nicaragua ramp up in the middle of March.
Mexican mixed vegetables and melons crossing at Nogales, AZ – grossing about $4100 to Chicago.
Citrus, mixed vegetables, melons, mangos and tomatoes from South Texas and/or Mexico – grossing about $5200 to New York City.
Here are produce shipping updates for Colorado potatoes, as well as for vegetables from the California and Arizona desert areas.
Colorado potato shipments are steady and averaging about 800 truck loads per week. Potato acreage in the San Luis Valley is up 8 percent in 2014 to 53,700 over 2013’s 49,700 acres.
San Luis Valley potato shipment totals through December 2014 are very similar to the previous year, with 10,579 loads having gone out with the end of the year 2014 compared to 10,529 in 2013. Truck shipments of fresh were at 2,654, up from 2,614 the previous year.
Colorado potato shipments – grossing about $2200 to Chicago.
Desert Vegetable Shipments
A couple of weeks of above-normal temperatures since the middle of January have helped bring on vegetables supplies – and shipments – in the western desert areas of California and Arizona. In fact this week plenty of sunshine and highs mostly in the lower 70s are predicted.
In early- to mid-January, there were very light supplies of Iceberg lettuce as well as most other vegetables. But high temperatures in the 70s in Yuma, AZ, and California’s Imperial Valley brought on fields more quickly and increased shipments.
However, it is still the middle of winter with almost three months of weather yet to play out. Although the harvest is ahead-of-schedule there is the potential for supply and shipping gaps if the weather cools off and growing time takes longer.
Desert vegetables – grossing about $7000 to New York City.
When the Hunts Point Terminal Produce Market opened in the South Bronx of New York City nearly half a century ago, there were high hopes it would be a rail delivery heaven. Even to this day, there are still those who have that dream.
When the 113-acre produce complex opened in 1967 plenty of receivers were anxious to try trains attracted to the lower freight rates. However, within five years, there had been a dramatic drop in rail usage. As late as 1972 Salinas Valley produce companies were shipping vegetables to Hunts Point via rail. Today, no Salinas Valley veggies are transported on tracks.
Hunts Point had become notorious for claims, whether justified, or not. Many of those claims no doubt were justified, because it was taking the rails so long to deliver the highly perishable produce. In reality, wholesalers using rails were shifting heavily towards trucks after WWII and this only excelerated as the interstate highway system development began in the 1950s. The popular so-called unit trains, practically became history.
Some rail tracks on Hunts Point over the years have actually been covered by buildings as lack of space became more critical.
Even today, some New York politicians and some in the private sector are pushing to increase rail usage, primarily based on reducing highway traffic and environmental reasons. For example, there is a push to have long haul trucks deliver produce to New Jersey and they “ferry” it over to New York. However, that would add an extra day before the perishable products are delivered. Each added day reduces quality and the value of produce.
Hunts Point has received a federal grant as well as monies from New York City totaling about $22 million to upgrade rail siding and a transfer dock at the market. Still, trucks will continue to be the main source of transportation. Why?
If nothing else, consider this. Despite Hunts Point receiving between 2,500 and 3,000 rail cars yearly, rail cars often take up to 18 days to arrive at the market from the West. Piggybacks regularly arrive in about six or seven days. A single driver owner operator commonly arrives in five days. — Bill Martin
(This is the second of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
As the world’s largest fresh produce Terminal, the Hunts Point Terminal Produce Market has about 130,000 trucks a year delivering fresh fruits and vegetables to its wholesale distributors.
With nearly $2.5 billion in annual sales, Hunts Point serves as a distribution hub for 20 million people in the New York City metropolitan area that covers about a 50-mile radius. At any one given time there are about 8,000 people on the market, located in the South Bronx. The wholesalers also distribute fresh fruits and vegetables to Canada and as far south as Florida, plus a number of other markets east of the Mississippi River.
The big rigs begin rumbling onto the market when it opens to truck traffic at 9 p.m. on Sundays and closes at 3 p.m. for its daily clean up. The Hunts Point gate fee for big rigs is $20.
Ironically, Hunt Point opened in 1967 primarily as a rail terminal, but now an estimated 75 percent of the produce delivered is by truck, with the balance by piggyback trailers. The majority of that “pig” freight is potatoes, onions and carrots.
Still, it is shipments by truck that allow Hunts Point to operate as efficiently as it does. Yet the volume of produce arriving at the facility continues to increase, and the 48-year-old complex has outgrown its capabilities to handle all the product it needs. As a result, wholesalers on the market own or lease about 1,000 refrigerated trailers for storage purposes. — Bill Martin
(This is the first of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
Apple Shipments
With the arrival of the New Year about 113.5 million bushels of U.S.-grown fresh-market apples had yet to ship, 16 percent more than at the same time last year. The amount of apples remaining in storage is also 26 percent higher than the five-year average.
Washington state accounted for 100.4 million bushels of fresh-market apples still in storage, while Michigan had 4.9 million bushels, New York 4.2 million bushels and Pennsylvania 1.3 million bushels.
The holdings of all major apple varieties were up from Jan. 1, 2014 ranging from red delicious to galas, fujis, granny smiths, golden delicious, Pink Lady and Honeycrisp.
Washington apple shipments are amounting to about 2,500 truck load equivalents a week from the Yakima and Wenatchee valleys, with a much smaller volume in pears.
Washington apples/pears – grossing about $4600 to Chicago.
The state also is shipping about 700 truckloads of onions per week from the Columbia Basin and the adjacent Umatilla Basin in Oregon. The same area also is shipping about one-half this volume in potatoes.
Washington/Oregon potatoes and onions – grossing about $3600 to Chicago.
In Michigan, there is adequate equipment from apple haulers, but shortages of trucks for hauling onions.
Michigan apple shipments grossing about $2600 to Atlanta, while onions are paying about $500 less per load.
An early January freeze has hampered harvest and reduced shipments of Southern Georgia greens. Also, here’s an update on Florida citrus shipments.
Georgia Produce Shipments
Greens in Georgia were damaged by freezes the week of January 4th, with temperatures in the Norman Park shipping region hitting the low 20s. By the week of January 11th, shipments had taken a hard hit. One grower/shipper was picking just 2,000 to 4,000 boxes of greens a day, down from the seasonal norm of 8,000 to 10,000. Some operators were affected more than others.
Harvest was taking much longer because instead of picking greens by the bunch, workers were picking leaf by leaf, sorting out undamaged from damaged product. Georgia greens shipments should be back to normal around January 24 – 28.
South Georgia greens and cabbage – grossing about $3000 to New York City.
The cold weather didn’t reach down to Florida, and damage greens there.
Florida Citrus Shipments
Florida orange shipments continue to decline.
On January 12, the USDA forecast midseason and late season orange production declined 5 percent from the December 10th report and fell 2 percent from the previous season.
Grapefruit and tangerine production remained unchanged.
In the newest report, the USDA forecast Florida non-valencia oranges, which include early, midseason, navel and temple varieties, to decline 4 million equivalent cartons to 48 million cartons and valencias to fall 1 million cartons to 55 million cartons.
Navel production remains unchanged at 1.5 million cartons.
On grapefruit, total production is forecast at 15 million cartons and tangerines are forecast at 2.5 million cartons.
Overall, Florida growers are forecast to harvest 121.3 million equivalent cartons of citrus, down from last season’s 124 million cartons and considerably lower than the 169 million carton 2009-13 average.
While about 96 percent of the state’s oranges ship to processed channels, 65 percent of its navels, 63 percent of its tangerines, 40 percent of its grapefruit and about 10 percent of its overall citrus ship fresh.
Florida citrus shipments – grossing about $2300 to Chicago.