Posts Tagged “feature”
Hang in there, spring may be a little closer than you think, although the official beginning of the season is March 20th. This is good news if you are looking to haul Florida vegetables.
Florida Produce Shipments
Winter vegetable harvests and loadings had been delayed because of the cold dating back to November. However, a warmer December is expected to result in some south Florida vegetable shipments occurring earlier than normal.
As a result, spring vegetable loadings in South Florida which normally get underway in early March could very well start in late February. South Florida produce volume has been lower than normal for several weeks now for items ranging from bell peppers to chili peppers, squash and eggplant. Florida never is that good for produce haulers this time of the year, and loading opportunities have been compounded by horrendous winter weather in the Northeast and upper Midwest. Consumers get out less to grocery shop, which reduces demand for vegetables.
South Florida red potato shipments have recently started.
Plant City, FL area strawberry growers are picking everything in sight as they wrap up their pre-Valentine Day’s shipments.
South Florida vegetables – grossing about $3200 to Boston.
Central Florida strawberries, vegetables – grossing about $2300 Chicago.
Florida Commissioner of Agriculture Adam H. Putnam called for increased funding to fight citrus greening, which is threatening to decimate Florida’s famed citrus crop. The U.S. Department of Agriculture revised its estimate recently for the 2014-15 harvest season to 103 million boxes of oranges, a decline from the forecast released in 2014.
“Now is the time to put all the resources we can toward fighting citrus greening,” said Commissioner Putnam. “We must do what we can to save Florida’s signature crop, an industry that generates $9 billion in annual economic impact and supports 76,000 jobs for Floridians.”
The USDA announcement estimates 103 million boxes of oranges will be harvested this season, down from the forecast of 108 million boxes announced in 2014 and also a decline from the 104 million boxes produced in 2014, the lowest on record. This represents a total decline of 60 percent since the peak of citrus production at 254 million boxes in 1997-98.
“State and federal governments, along with Florida’s citrus growers, have dedicated more than $230 million to support research over the past decade, and there are some promising leads,” Commissioner Putnam said. “I’ve requested an additional $18 million from the state this year to continue in-depth research, grow clean citrus stock, and replant where diseased trees have been removed.”
Nearly three months ago Haulproduce.com reported that refrigerated rail service McKay TransCold LLC of Eden, MN had closed its doors. Now it has been learned TransCold Logistics LLC, parent company McKay TransCold LLC has filed for Chapter 7 bankruptcy liquidation with debts of about $7 million.
The refrigerated rail service was launched in May 2014.
McKay TransCold worked with BNSF Railway to operate the TransCold Logistics hub-to-hub, dedicated refrigerated boxcar train between Selma, CA and Wilmington, IL. The operation began with two trains pulling 50 refrigerated boxcars in each direction, making the trip in four days.
It offered cold storage in California and as of September 2014 was still planning to add cold storage services in Illinois.
The company posted $2.47 million in gross revenue for 2012, according to court documents. In 2013 gross revenue dropped to about $533,000. In 2014 they climbed back to $5.23 million.
The company has a total of secured claims of $865,533, all owed to Marquette Transportation Finance, Minneapolis. Its total unsecured debt is about $5.9 million.
The top five unsecured debts are:
**** BNSF Railway Co., Chicago, $3.37 million;
**** KLLM Transport Services LLC, Birmingham, Ala., $735,486;
**** National Carriers Inc., Kansas City, Mo., $519,918;
**** Werner Enterprises Inc., Chicago, $384,830;
****NLCS-Wilmington, Ill., $235,945.
The first produce train service to fold in 2014 was 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.
By Fresh Solutions Network
The NPD Group just released their 29th annual Eating Patterns in America report, and finds that an increase in meals from home is one of the single biggest changes in eating patterns in Americans in the last five years.
“We are eating more meals in our homes, but not cooking more dishes,” says Harry Balzer, vice president of The NPD Group and author of the report. Nowhere is this more apparent than in the fresh potato category, where the white-hot microwaveable/steamable segment has seen dollar sales shooting up a scorching 31 percent for the latest 52-week period ending 9/27/14, according to data from Nielsen FreshFacts®.
One potato brand is uniquely positioned to take advantage of these trends to satisfy Americans who want fresh, nutritious food fast and with a minimum of fuss. Side Delightsâ Steamables™ are triple washed, fresh, whole, small potatoes in a microwave safe package that is ready to serve in just 8 minutes. And Steamables are the ONLY microwave-ready potato brand that uses light-blocker packaging technology to keep potatoes fresher and protected from greening due to harsh store lighting.
Side Delights Steamables come in 7 delicious potato varieties – Russet, Red, Golden, White, Purple, Fingerling and Sweet Potatoes – the most expansive lineup in the steamable segment. And the inclusion of Purples, Fingerlings and Sweet Potatoes brings together these rapidly growing specialty potato types with the on-trend convenience of microwave cooking.
“Retailers have a tremendous opportunity with offering their shoppers more quick and convenient ways to enjoy fresh potatoes” said Kathleen Triou, President and CEO of Fresh Solutions Network. “Side Delights Steamables gives them a complete lineup of gourmet potatoes that appeal to time-starved families as well as Millennial shoppers, all packaged using the latest technology to protect their premium quality.” While Triou recommends merchandising Side Delights Steamables in the produce department with other fresh potatoes on an everyday basis, she notes that the big volume opportunities come from displaying these high-impulse potatoes near rotisserie chicken in the service deli or adjacent to the ready-to-heat entrees in the meat department.
Side Delights Steamables are perfectly positioned for today’s busy consumer – the fast, easy, delicious way to serve fresh potatoes with any meal!
About Fresh Solutions Network, LLC: Fresh Solutions Network is where potato growers work together for individual growth and category success. Fresh Solutions Network helps the most sophisticated potato and onion buyers grow their categories, fill product gaps, maximize category investment, and increase sales. We reinvented the procurement model by introducing a direct-supply “dream team.” Our approach gives you unprecedented access to competitive insights, collaborative innovation and optimal potato and onion assortment. Fresh Solutions Network Partners grow, pack, sell and deliver potatoes and onions directly to their retail and foodservice customers, providing seamless, transparent product supply and service. Fresh Solutions Network, LLC partners are: Sterman Masser, Inc. (Masser Potato Farms and Keystone Potato Products in Sacramento and Hegins, PA), Michael Family Farms, Inc. (Urbana, OH), Basin Gold Cooperative, Inc. (Pasco, WA), Green Thumb Farms, Inc. (Fryeburg, ME), Red Isle Potato Growers, Ltd. (Prince Edward Island, Canada), NoKota Packers, Inc. (Buxton, ND), and Sun-Glo of Idaho, Inc. (Sugar City, ID).
Here’s a round up of major active potato and sweet potato shipping areas around the U.S.
Sweet Potato Shipments
Louisiana sweet potato shipments are expected to continue through June. The fresh crop is larger this year due to an increase in acreage and higher yields. Nearby Mississippi has a similar situation. Both states are loading anywhere from 375 to 500 truck loads weekly….In California, a little less volume is coming out of the Atwater/Livingston district….However, as usual, Eastern North Carolina continues to be the big player, averaging more volume than the other three states combined.
Louisiana sweet potatoes – grossing about $1800 to Chicago.
Eastern North Carolina sweet potatoes – grossing about $2500 to New York City.
Potato Shipments
Idaho is to potatoes what North Carolina is to sweet potatoes. Idaho is averaging around 1,750 truck load equivalents a week, although rail plays a larger role than with most commodities and shipping areas….Colorado potato shipments rank second at about 750 truck loads a week, with all of it being by truck….Central Wisconsin potato shipments come in third with volume…. Surprisingly, Nebraska is loading about 200 truck loads weekly, although volume is divided between two shipping areas — Imperial in the southwestern part of the state, and O’Neill in the northeastern region.
Western Michigan potato shipments, as well as spuds originating out of Presque Isle, Me are providing light, but steady volume.
Idaho potatoes – grossing about $5800 to Orlando.
San Luis Valley, CO potatoes – grossing about $2900 to Atlanta.
Valentine’s Day (February 14th) is the one of the most popular days of the year for strawberries and shipments soon will be ramping up for the occasion.
Florida strawberry shipments are steady with adequate volume expected. About 90 percent of some shipper’s supplies from the Plant City, FL have already been pre-sold.
Still, the strawberry industry says there are never enough berries for Valentine’s Day, especially stem berries. These are always popular as a Valentine’s Day gift. Both Florida, as well as Mexican strawberry shipments are running ahead of last year’s totals, while California strawberry shipments are down a bit. Mexican strawberries are crossing the border in south Texas, as well as border crossings into California.
California reached the 1 million tray-per-week level in mid-January, but by the end of the month supplies had dropped below that threshold. However, California berry loadings are expected to increase each week in February as volume builds from Orange and Ventura counties.
Meanwhile, Southern California also has lettuce shipments as well as some other vegetables from the Coachella and Imperial valleys, plus from the nearby Yuma (AZ) district.
In south Texas, besides Mexican strawberries, there are a number of other items available ranging from vegetables, tomatoes, citrus and tropical fruit.
While Florida strawberries are coming out of the growing area just west of Tampa, Central Florida also is shipping in light volume vegetables, tomatoes and citrus.
Southern California berries – grossing about $4000 to Dallas.
South Texas/Mexican produce – grossing about $2400 to Atlanta.
Central Florida berries, veggies – grossing about $2200 to Chicago.
Mexico produce shipments are crossing the U.S. border at Nogales, AZ in good volume – at least with several items.
The heaviest amount of product is with cucumbers, bell peppers, squash and tomatoes. Cucumbers are averaging around 675 truck loads per week. However, keep in mind most of these items are shipped as mixers, instead of straight loads of product. In fact, a lot of trucks arrive at Nogales to fill out a load, after multiple picks up California and other parts of Arizona.
Tomatoes are biggest volume right now, averaging nearly 1,000 truck loads per week. The biggest tonnage is with vine ripes and plum tomatoes, with much lesser amounts of grape and cherry tomatoes.
There also are decent crossings of Mexican bell peppers (600 truck loads weekly) and nearly as much volume with squash. Much lighter crossings exist with Mexican watermelons, beans, eggplant and other types of peppers than bell peppers.
With the completion of the Mariposa Land Port of Entry at Nogales last year, arrivals of Mexican vegetables has been more predictable. Because of the finish of the eight-year-long construction project, fewer delays are being experienced by produce haulers picking up product one of the dozens of warehouses in Nogales.
The upgraded port of entry was designed to increase traffic flow at the border because of better facilities, new Customs and Border Protection and inspection procedures. The port now is able to inspect about 4000 trucks per day through eight primary commercial booths and 56 secondary commercial inspection bays.
Nogales produce shipments – grossing about $1300 to L.A.; $5600 to New York City.
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)