Posts Tagged “produce shipments”
El Nino is adversely affecting many produce shipments in North America.
Unseasonable heat brought on an early, heavier-than-normal shipments for the Florida strawberry season, which started before Thanksgiving and lasted through Christmas. Now strawberry shipments are in a lull and are not expected reach decent volume by Valentine’s Day, February 14th, which is a popular event for the fruit. Assuming shipments ever get on “normal” track this season, loadings should continue through March.
Changing weather patterns are impacting fruit and vegetable production across North and South America, and it is not just field-grown produce that is being affected.
The El Niño phenomenon has played a major role in the various weather patterns and is affecting production on all items ranging from beefsteak, cluster, heirloom and roma tomatoes as well as grape tomatoes, mini roma grape tomatoes and medley tomatoes. Additionally, there are long sweet peppers, mini sweet peppers, bell peppers, seedless cucumbers, mini seedless cucumbers and baby eggplant, among others.
Lower than normal temperatures in combination with lower light levels reduce yields across the board for greenhouse grown produce during the spring and summer out of Canada, and during the winter in Mexico.
Mexican vegetables through Nogales – grossing about $3000 to Chicago.
While weather related issues continue to adversely affect produce shipments around the country, keep your fingers crossed shipments are getting back towards a more normal track in the deserts of Arizona and California.
The unprecedented run of low shipments and shipping gaps appears to be over, with the possible exception of celery. This means higher volume and more consistent shipments of various types of lettuce, broccoli and cauliflower.
Since the week of January 11 it has been warmer and temperatures are in the mid- to high 40s for lows and the highs are in the high 60s to low 70s. Let’s hope the good desert weather continues.
Meanwhile, much of Central and Northern California have been hit with above-average rain since the beginning of the year, something the desert areas were spared for the most part.
Growers in the coastal California valleys (Santa Maria and Salinas), which will be shipping the majority of the nation’s vegetable crops in the spring are having a few problems getting into the fields to plant. The shift in lettuce production to Santa Maria typically occurs around April 1. Those fields harvested in April need to be planted this month. If the storms continue, that could be an issue.
There’s complaints about a lot of low produce freight rates now. Just look at the desert, which is grossing under $2 per mile.
Desert vegetable shipments – grossing about $5800 to New York City.
Produce shipments should start returning to more normal movement now that we are past the holidays and receivers are starting to replenish their stocks. Here’s a look at produce shipping from several areas around the country.
Western Lettuce Shipments
Lettuce shipments, led by Iceberg and romaine are originating primarily out of the Yuma district of Arizona. Other leading items are celery, broccoli and cauliflower, although cold weather has cut into volume. Loadings are much lighter from the California desert, primarily from the Imperial Valley, Coachella Valley and Palo Verde.
Apple Shipments
Washington’s Yakima and Wenatchee valleys are averaging bout 2500 truckloads per week. New York state, led by the Hudson Valley, is shipping about 250 truckloads weekly. Michigan is third in volume about 175 trucks per week.
Washington apple shipments – grossing about $4500 to Dallas.
Texas Produce Shipments
Overall, it’s still relatively light for produce items here. This is light to moderate shipments of grapefruit and oranges from the Lower Rio Grande Valley. The is better volume of Mexican tropical fruits and vegetables crossing the border.
South Texas citrus and Mexican produce freight rates were up 15 to 20 percent during the holidays, depending on the destination; for example, grossing about $2900 to Atlanta. Rates could drop with the holidays past us.
East Coast Produce Shipments
Pretty slim pickin’s over all. If you’re coming out of Florida with a partial load, there’s very light volume of cabbage and greens being shipped from Southern Georgia…Eastern North Carolinas is loading sweet potatoes in moderate volume….Dry onion shipments are coming out of Orange County, NY. Partial loads of cabbage are coming out of central and western New York. Apples are available from the Hudson Valley, Champlain Valley, plus central and western areas….Aroostrock County, Maine has light volume with potatoes.
North Carolina sweet potato shipments – grossing about $3000 to Boston.
Here’s a round up of produce shipments, ranging from sweet potatoes from the four leading states, to Washington apples, Texas grapefruit and pineapple imports.Due to dry weather Mississippi sweet potato shipments are down this season along with yields of the crop. The state has over 100 sweet potato growers with 23,200 acres of the crop. That is up about 12 percent from acreage planted in 2014. Mississippi, as well as neighboring Louisiana, plus the Atwater, Livingston district in California, are all averaging between 40 and 50 loads of sweet potatoes being shipped weekly. By contrast, the industry leading North Carolina is shipping nearly 300 truck loads a week, primarily from the eastern part the of state.
Washington Apple Shipments
The Washington state apple harvest is virtually finished. Estimates now vary between a low of 110 million bushels and a high of 115 million bushels to be shipped this season. There will still be plenty of opportunities for apple haulers, even with the small crop.
Washington apple shipments – grossing about $4400 to Chicago.
Texas Grapefruit Shipments
The Texas grapefruit harvest, which got underway in late September should continue through April. Normal shipments are seen this season, with heaviest volume occurring during January and February from the Lower Rio Grande Valley. About a 25 percent decrease is expected compared to last year’s record-crop of 150 million bushels.
Texas grapefruit, oranges, as well as numerous imports from Mexico – grossing about $2200 to Atlanta.
Pineapple Imports
El Nino weather conditions had hit Costa Rica pineapple exports, where most pineapple are sourced this time of the year. As a result, shipments of the fruit to the United States and are now about 17 percent below normal. The lower volume is expected until January.
Produce shipments are big business out of the Salinas Valley, according to a new report.
Agriculture pumped $8.1 billion into the economy of California’s Monterey County in 2014. The report, Economic Contributions of Monterey County Agriculture was prepared by Agricultural Impact Associates for Eric Lauritzen, the county’s agricultural commissioner. The last such analysis was for 2011.
California’s drought is now in its fourth year, but has had little effect thus far on total production in the county, compared to the Central San Joaquin Valley and its dependence on federal and state water projects. Agriculture’s share of Monterey’s direct economic output was unchanged from 2011 at 18.5 percent, but rose from $5.1 billion to $5.7 billion.
The $8.1 billion in 2014 impacts amounts to nearly $1 million every hour – $926,757, to be exact – according to the report. Farm production totaled about $7 billion; value-added food processing, $1.1 billion. Wineries accounted for nearly half of value-added.
Crop diversity has slowly declined since 2005, the report finds, making the region more vulnerable to fluctuations in the strawberry market, for one. That’s so even though as many crop types are grown in the area as ever.
“It means that a small number of crops have grown to represent larger pieces of the economic pie,” the report says. “Strawberry shipments for example, accounted for 10.7 percent of the county’s overall production value in 2004, but expanded to 19.9 percent a decade later.”
Nevertheless, Monterey’s diversity was rated higher than three other coastal counties: Santa Cruz, San Luis Obispo and Santa Barbara.
The agriculture industry employed 55,702 in 2014, or 23.7 percent of all local jobs, up from 45,140 and 20 percent.
Salinas Valley vegetables and strawberries – grossing about $5500 to Atlanta.
Texas appears to be gaining ground on California when it comes to fresh produce shipments…..In Georgia, Vidalia onion shipments apparently will be down overall as product is now coming out of storage.
Texas produce shipments are becoming ever more important when it comes to spot rates for refrigerated loads. This appears to be due to increased fruit and vegetable production in the Lower Rio Grande Valley, plus more imports than ever from Mexico, as well as shift in demand from California in part because of the prolonged drought.
Although California had regained the top spot in late June, Texas volumes in the spot refrigerated freight market has surpassed California for the first time in early June, according to Mark Montague, manger of industry pricing for DAT Solutions.
Lower Rio Grande Valley watermelons and Mexican produce crossing the border – grossing about $2700 to Chicago.
Vidalia Onion Shipments
Vidalia onion shipments will be down as much as 40 percent this season for some shippers. Whether the reduction is due to excessive rains, or spring weather having too hot of temperatures, opinions vary. But shipments will be down, it’s just a matter of how much, since some shippers appear to have been hit harder than others. Vidalia onions are now being shipped out of storage, which can be “ify” some years when adverse weather or disease creates quality issues.
Southeastern Georgia Vidalia onions, as well as Southern Georgia bell peppers, sweet corn, eggplant, watermelons and squash – grossing about $3000 to New York City.
Eastern Shore vegetable shipments are underway for the summer from Virginia, Delaware and Maryland.
Fresh produce shipments typically start in early June, but those crops were a little late because of a cooler spring. Growers produce two fresh-crop seasons, except for potatoes which have just one season.
Virginia potato shipments began around June 20, and will be in full swing with good loadings by early July
Although numerous fresh produce items are grown in the Eastern Shore region, Virginia’s main crop is potatoes, which has between 3,000 and 4,000 acres.
Most of the potatoes produced in Virginia are shipped throughout the eastern U.S., as far west as the Mississippi River and include red, white, yellow and russet potatoes. When northern areas are not producing, much of the crop is distributed in those regions. When the Southern states stop producing, shipments are redirected to the South. Some of potatoes are distributed in Canada.
Dublin Farms in Horntown is one of the state’s biggest potato shippers.
The Eastern Shore also has significant acreage in tomatoes and green beans, with C&E Farms in Cheriton being the largest shipper of green beans. The farming operation produces about 750,000 bushels of beans annually off of its 5,000 acres.
The two major tomato operations on the shore are expected to produce about the same volumes of round, Roma, grape, cherry and heirloom tomatoes during this season, which runs from late June through September.
Many folks involved in fresh produce transportation are wondering what is going on in California. Despite the state growing and shipping about one-half of the nation’s fruit and vegetables, rates have remained relatively flat during the heaviest volume period of the year.
In search of answers, we turned to Kenny Lund, vice president of operations for the Allen Lund Company of La Canada, CA, a transportation brokerage and logistics company that has been in business nearly 40 years.
“I think we’re in a historic…incredible shift in produce,” Lund states, “where product is being grown where it hasn’t been grown before. It’s hard to get the numbers, but it’s looking like there’s a 20 percent increase in produce from Mexico.”
He also cites production and shipping increases from Canada, as well as boat arrivals with imported produce from around the globe.
“But there is not an increase from the most fertile land in the world (California); there’s a decrease,” Lund contends. “I think the decrease is more significant than people will say.”
While acknowledging the drought has a lot to do with it, Lund sees an attack by environmentalists on the California agricultural industry as being a factor. He points to cuts in water allocations to agriculture and water going elsewhere due to environmental reasons.
He says there has been somewhere between 400,000 and 800,000 acres of California farm land being placed out of production.
“It is political more than anything,” Lund states. “They build pipelines for everything, but for some reason we can’t do it for water. You keep seeing a reduction of water in California and an increase in people (living here). The drought is more political than the actual drought. There is a lack of water going to the farms. The Columbia River going into the ocean is enough in itself to handle California farming needs. But the environmentalists will not let that happen.”
Similar to a statement Lund has made many times about the over regulation of trucking, he says the excessive regulation of farms is “amazing.” For example he recently talked to someone in charge of compliance with a California farming operation and was told she had to answer to 42 different government agencies.
Lund believes this a contributing factor to Allen Lund Company having more produce loads than ever crossing the border from Mexico into California, Arizona and Texas.
“It’s a contradiction. 50 percent of the nation’s produce is grown in California. That is under attack by a lack of water due to over regulation of farming, as well as trucking,” Lund says. “Government is over regulating diesel engines, farming equipment, pumps; all these things are under severe attack.”
Each of these factors are contributing to what he calls a “historic” shift in produce shipments from California. Lund talks of the Autopista Durango-Mazatlan, a 143-mile highway spanning from the growing regions of west Mexico to Texas ports of entry that opened last year. As a result business in McAllen, Tx is booming.
While California produce trucking rates are remaining rather flat, Lund says rates are up significantly in Texas, New Mexico and Arizona. At the same time, Florida is “mixed” because it has a very similar growing and shipping season to Mexico with which it competes. Still, he notes Florida does not have nearly as many regulations, plus that state has plenty of water.
(This is Part I of a two-part series. The Allen Lund Company was formed in 1976 by its namesake. I have known Mr. Lund almost since the founding of the company. His son Kenny Lund joined the company 26 years ago this month. At that time the operation had 32 employees. Today Allen Lund Company has 500 employees, arranges about 250,000 loads a year, of which about 40 percent is with fresh produce. The company has 30 offices nationwide and will soon break the $500 million mark in annual sales. — Bill Martin)
Mexican table grapes ramp up crossing the border in Arizona, while the Florida heat is starting to take its toll on spring produce shipments.
Mexican grape shipments are forecast to hit 16.05 million boxes this season, slightly less than last year’s final total of 16.27 million boxes. Peak shipments, mostly crossing the border at Nogales, are now in progress. Heavy volume should continue well into June before loadings decline towards the latter part of the month with the end of the season. Overall Mexican produce movement through Nogales is well below what it was in the first quarter of the year, with grapes now leading the pack in volume.
Mexican grapes – grossing about $2200 to San Francisco.
Florida
Florida produce shipments are starting to feel the heat as temperatures rise in the Sunshine State. There’s probably no better example than with sweet corn as shipments could come to a screeching halt this week. That is about two weeks earlier than the last two years.
Since the first week of April, the start of Florida’s spring shipments, packinghouses shipped about a million crates a week and so far have packed 6.2 million crates. This season, shippers should load about 7.5 million crates, similar to last season, which marked record production for the two weeks leading up to Memorial Day,
While Florida corn in coming to an end, Georgia sweet corn shipments are now underway.
Florida trucks have been in tight supply with mixed vegetables, tomatoes and watermelons – grossing about $3700 to Philadelphia.
There have been a lot of opinions expressed about the “Left Coast” and its rules, regulations and politics and what effect it may have on everything from produce truckers willing to do business in California, to produce growers shifting more of their operations to Mexico and other states.
Based on a new report from the U.S Department of Agriculture’s National Agricultural Statistics Service, as looney as our friends on the West Coast may sometimes seem, last year California still accounted for 47 percent of harvested acreage, 52 percent of production and 60 percent of value in 2014. If that’s the case, then there must have been trucks for the most part delivering those agricultural products to markets across North America.
Production of U.S. melons and 24 top vegetables was down one percent in 2014. The overall value of those crops also fell last year.
About 413 million cwt. of leading vegetables and melons were harvested in 2014. Harvested acreage, at 1.58 million acres, also was down, by three percent.
The value of the 2014 crops, at $10.9 billion, was down 5 percent from a year ago.
In terms of production, onions, head lettuce and watermelon were the top three crops, accounting for 36 percent of total production.
Tomatoes, head lettuce and onions were the most valuable, making up 29 percent of total value.
While the vast majority of produce shipments occur by truck, California produce shipments also easily lead the pack in terms of volume over other states.