Author: Tina Gourley

Supplies of nectarines out of California are solid currently.

“Nectarines are exceptional right now in terms of volume, flavor and color. It’s all looking very good,” says George Papangellin of Prima Wawona based in Cutler, CA. “This is a good time, now through August that, if you want good nectarines, start buying them now.”
Papangellin adds that nectarine volume this year is similar to last year at this time.

Demand for the stone fruit is also good and as with many commodities currently, Papangellin is seeing shifts in how the fruit is being packaged and bought. “We had good communication with our customer base during pre-season meetings, and many indicated consideration of other pack styles. This would accommodate the change in buying practices by the consumers,” he says. “Whether it’s a quick trip in and out of the store for a grab-and-go situation or a curbside pick up or even home delivery. There were also perceived safety attributes.” He adds that before the stone fruit season began, these kinds of trends were emerging with other commodities such as mandarin oranges and potatoes and carried over into summer stone fruit.

Similar pricing?
Meanwhile all of these factors mean that pricing on nectarines is solid. “Pricing is about the same, depending on the pack style and sizing of fruit,” says Papangellin. “Smaller sizes such as your 70s and 80s are a little lower than last year. But the large sizes are holding steady on price.”

Looking ahead, Papangellin anticipates the market will continue into its normal period of stability this summer. “I see it just being very smooth,” he says.

By Fresh Plaza

Imported fruits face customs clearance delays due to new Covid-19 testing measures on shipments following Xinfadi Market outbreak

China’s fresh fruit imports are facing disruption as customs authorities at ports across the country begin testing incoming shipments for Covid-19.

The new measures come in the wake of the closure of Beijing’s Xinfadi Market following a coronavirus (Covid-19) outbreak last week, which has been linked by market authorities to the chopping board used by a seller of imported salmon.

China’s customs authorities have not issued any official notice or formal instruction to test imported fresh fruit for Covid-19, Asiafruit understands. Neither is there any evidence to suggest Covid-19 can be transmitted through fresh produce or other foods, but new inspection measures have been undertaken by customs officers at Shanghai, Tianjin and other ports across the country.

Customs authorities in Shanghai have reportedly adopted some of the most stringent testing measures.

“Customs has begun testing for Covid-19 on the packaging and surface of the fruits entering the port,” an in-market source at Shanghai Huizhan Fruit & Vegetable Wholesale market told Asiafruit. “Ports in other regions have similar measures but they’re not as strict as Shanghai.

“The testing rate is not 100 per cent but it is quite high, especially for fruit arriving from the US and other countries with high Covid case numbers.

“And Australian imports are also being tested at quite a high rate, despite the low number of cases in the country.” 

Products held for testing take an extra two days to clear, the Huizhan market source said. This is a major concern for arrivals of time-sensitive cherries from the US and other key Northern Hemisphere supply origins, which are getting into full swing now.

“Other products can endure the long clearance time, but only in terms of the fruit quality holding up,” said the market source. “The longer the product takes to arrive in the market, the more chance the price will be impacted.”

At Jiaxing Market, a major wholesale hub for domestically-grown and imported fresh fruit 100km west of Shanghai, a local market source told Asiafruit that products had also been tested for Covid-19.

“It’s not clear whether a testing regime has been implemented at Chinese ports or not, but two groups of local officers from the Disease Control and Prevention Centre and the local government have already visited Jiaxing Market to conduct random testing of fruits,” said the market source. “The fruits included citrus from the US (Sunkist), South Africa and Egypt and US apples.”

According to Chinese media reports, customs authorities at many ports across the country have increased their inspection measures on imported food following the Xindafi Market outbreak. While their initial focus was on testing seafood products, it has since been extended to meat and fresh fruit.

By Fruitnet

Watching the growing threat to global trade from the stranded-crew crisis is like watching a train wreck in slow motion — and the governments of the world still don’t see it coming.

A June 15 deadline was set by the union representing seafarers, the International Transport Workers’ Federation (ITF), to resolve the crew-repatriation issue, get many thousands of seafarers stranded by COVID-19 travel restrictions back home, and designate all seafarers “key workers” who can travel unrestricted.

That deadline has predictably come and gone, and fallout for the global shipping industry and world trade now appears virtually certain. In the most extreme scenario, ships would be forcibly idled, tanker and bulk spot rates would rise, and container liner schedules would be thrown into disarray.

The ITF has just adopted a new strategy that it explicitly states “could be highly disruptive to global trade.”

Between mid-March and mid-June, the ITF and affiliated unions did not fight contract extensions for crew who were unable to be repatriated due to the pandemic. No longer.

According to ITF President Paddy Crumlin, “We have drawn a line in the sand and today is the day we make it crystal clear to governments that from June 16, seafarers are going to start enforcing their right to stop working and return home. No more contract extensions.”

What happens next

Crew contracts last multiple months but cannot extend beyond one year under normal circumstances. Crew whose contracts had expired between February and mid-June have signed extensions and kept working, because they have been blocked by travel restrictions from getting home. The ITF estimates that there are around 200,000 crew working on coronavirus-induced contract extensions, including some who have been on board for over a year.

Seafarers are now being told: If your contract expires, or your extension expires, and you want off the ship, don’t sign another extension. The ITF will do its best to get you off.

“If you do not want to sign a new contract you are entitled not to do so, and the company cannot force you,” the ITF asserted to seafarers. “If the contract is imposed on you, you must report this immediately.”

If a seafarer’s employment contract expires when a vessel is at sea, the ITF told crew to continue working until the ship is at its next port, then stop working but always remain available for safety and emergency situations.

The ITF and its affiliates will focus on getting these seafarers off the ships when they get to port, through talks with relevant authorities in the port state (the country of the port of call). If it’s impossible to get the uncontracted crewmember off the ship before it sails again, the ITF said that the seafarer should not work, but “remain onboard as a passenger.”

That assumes the ship is even permitted to sail, as a commercial vessel is supposed to have a minimum number of active crew for safety reasons.

FreightWaves sought clarifications on how this new strategy would work in practice from Fabrizio Barcellona, assistant secretary of the seafarer section of the ITF.

Barcellona, who acknowledged that “we are in full crisis mode,” explained that if the number of active crew “falls below the number prescribed by the minimum manning certificate of the flag state, it will be the responsibility of the flag state or port-state control [PSC, the authority of the port state, such as the U.S. Coast Guard in America] to agree to allow the ship to sail.”

Barcellona said that allowing the ship to sail with below the mandated active crew “may have repercussions on safety, which may affect the charter party [charter agreement] and the insurance policies for the ship.”

If flag states and/or PSC authorities allow ships to sail under what the ITF deems to be unsafe conditions, “it is something that cannot be ignored and we will highlight situations we deem to be dangerous,” he affirmed.

The big question is how many of the crew currently working past their original contract expirations want to stop working, given bonus pay that’s being offered. Asked by FreightWaves, Barcellona revealed, “We have received thousands of messages that unequivocally indicate that seafarers want to leave the ships.”

In mid-May, when FreightWaves asked Barcellona whether the ITF was considering a labor strike by crew covered under collective-bargaining agreements, he demurred and said the ITF was still considering options.

The new policy beginning June 16 does not explicitly tell union members to stop signing contract extensions; rather, it emphasizes that the union doesn’t support extensions, that seafarers have no obligation to sign extensions, and that the ITF will do its best to help crew get home if they don’t.

Asked on Tuesday whether a future seafarer strike was still possible, Barcellona responded, “We cannot foresee the medium-term impact of the situation. Seafarers have rights, which have been disregarded.”

Extreme scenario

The logjam for crew repatriation is travel restrictions in countries the crew need to pass through to reach airports, as well as in two of the three top countries where most crew are from: India and the Philippines. The problem is less acute in the other top crew source, China, where turnovers of Chinese crew are being conducted at Chinese ports.

What comes next? Under the most extreme scenario, the number of active crew on ships would diminish over time as contracts and contract extensions expire and more and more crew transform into passengers. Even if some ships are allowed to initially sail with fewer than the mandated number of active crew, port states and/or flag states would eventually have to declare ships unable to sail.

Theoretically, the number of ships forced to sit idle would continue to increase until consequences for world trade become so severe that governments are finally compelled to lift restrictions on crew travel.

Until that breakthrough, it would be highly negative for the owners of tankers and bulkers rendered idle, as those ships would not be earning but would still be accruing costs. It would also be negative for bulk cargo shippers and traders, as fewer vessels would be available for spot voyages, meaning spot rates would rise.

The winners would be Chinese shipowners, who do not face the same level of crew-repatriation constraints, as well as non-Chinese owners whose ships are not idled and are in position to obtain higher spot rates. Investors in public companies whose ships are not idled would also benefit.

Forced ship idling would create particularly costly complications in the container sector, disrupting scheduled liner services. If a loaded container ship in port was ordered not to sail and its active crew could not be increased above the required minimum, its container cargo would have to be transferred to another ship.

“If getting seafarers off these ships causes chaos in supply chains, if ports back up from Singapore to San Francisco, and if this causes ship insurance providers to pull their coverage and global trade to grind to a halt, then that is on the heads of the politicians, not the world’s seafarers,” said ITF General Secretary Steve Cotton. 

By Freight Waves

While in previous years there have sometimes been reports of price pressure on the market, this year’s situation is very different. Spain has supplied a much smaller volume than usual due to the weather conditions and a shortage of labor due to the measures enforced to stop the coronavirus. Italy is managing to fill the gap between Spain and Poland. In the United States, the domestic season has started, but in the east of the country, growers fear competition from Canada and Peru, which will hit the market later this summer. South Africa is now further expanding its exports.

The Netherlands: Lower production expected due to night frost
The blueberry market in the Netherlands is currently almost empty. The Spanish blueberry season is coming to an end and the volumes and quality are not very good. There are still a few weeks to go before the kick-off of the Dutch blueberry season. “In week 26, most companies in the south of the Netherlands will start harvesting,” says a grower. He foresees a significantly lower production. “As a result of the night frosts, especially after mid-May, the production here in the region is expected to be 30 to 40% lower. The temperature has dropped to around -2ºC, which has been disastrous. A lot of fruit has been frozen. The differences between companies will be considerable. Some firms report no damage at all, while others have lost up to 70% of the production. This same situation has been observed in Northern Germany and in Poland. As a result, we won’t have an easy start. We don’t have to to be afraid of prices falling; we’ll have to look at things from a European point of view. There will be enough production available, but there will be less fruit on the shelves and the packaging units will become smaller. In the peak season, the fruit is usually packed in 500 gram formats. This time, the weight will perhaps be cut to 250 grams.”

Germany: Balance between supply and demand
The demand for blueberries on the German market is currently relatively small, reports a retail supplier. Compared to other years, the demand has been lower for months. Due to the lack of laborers and the weather situation in the main Spanish growing areas, the volume is significantly smaller than usual. The total production is about 30-40 percent smaller than usual.

However, this exceptional situation has a positive impact on the market. Normally, during the European season, there is chronic oversupply and ditto pressure on prices. “Now the supply and demand are in balance and we see relatively high, but certainly no astronomical prices.”

Given the exceptional situation and the small harvest in Spain, the season there is ending earlier than usual. The focus is now shifting to higher cultivation areas, such as the south of France. The first blueberries have now been harvested in France, about 10 days earlier than usual. The first German blueberries won’t arrive until mid-July.

According to the latest figures from the Agricultural Market Information Company (AMI), the main suppliers of German blueberries are Lower Saxony, North Rhine-Westphalia and Brandenburg (in this order).

France: Harvest started two weeks ago
The French blueberry harvest has been underway for over two weeks. The growers have nothing to complain about, but the demand is not high. Nevertheless, France, Spain and Portugal have supplied considerable volumes. In general, blueberry consumption in France is rising year after year. The level is not the same as in most northern European countries, but there is certainly a market for the blueberries.

Spain: “Blueberries are the flagship berry this year”
This year’s blueberry season in Spain has turned out quite differently from what was initially expected, especially given last year’s disastrous season, when the sector lost a lot of money. “Blueberries are undoubtedly the flagship berry this year,” says a grower. Prices have remained stable thanks, in part, to the cold and rainy weather in April. This ensured a more spread out and stable cultivation, without overlapping varieties. Growers in Huelva are currently working with the late blueberry varieties and hope to continue until the end of June. The countries to which Spain exports don’t expect to be able to supply large volumes of blueberries on their own markets, so Spain could fill that gap.

Italy: Piedmont fills market gap with the Duke
The blueberry season has just started in the province of Piedmont. The demand for blueberries is strong and the product quality is good, better than in previous years. Compared to the previous season, the yield per hectare is somewhat lower, probably due to the mild winter. The main and most cultivated variety is the Duke. It has a good taste, shelf life and size, and it ripens around the time that Spain’s season is ending and Poland’s has yet to start, so the Italian product can fill that gap. The main destination for the blueberries is the UK, with 60% of the total. The other 40% goes to the domestic market, Germany and Switzerland.

A wholesaler in northern Italy says blueberry prices are good. Almost all blueberries are of Italian origin. The demand is not stable; as a result, the market shows ups-and-downs. Prices oscillate between 8 and 10 € / kg. The supermarket trends are more solid and stabilized after the introduction of the toughest measures against the coronavirus. Sales to the catering industry are still affected by the lack of tourism in the country.

China: Blueberries on the vine are popular
In general, the market has not yet fully recovered from the impact of the coronavirus, certainly not for reasonably expensive fruits such as blueberries. Sales are fairly slow. At the moment, there is still a great volume from Yunnan, even though the season is over. Blueberries are also supplied by Liaoning, with highly competitive figures, and by greenhouses in Shandong. The product’s price is 15% lower than last year. Open field blueberries have also hit the market, with prices amounting to around 30 RMB / 500 gram (3.73 € / 500 gram). There is an emerging trend in China, with blueberries sold on the vine, just like grapes. This is popular among consumers because it conveys the idea of freshness.

South Africa: Exports up by 50%
The South African blueberry sector is growing. Exports in the 2019/2020 season have increased by 50% compared to last year, with 12,282 tons, compared to 8,000 tons in the 2018/2019 campaign. For the 2021 season, another strong increase is expected, with the prospect of reaching 17,000 tons in blueberry exports. This figure will then increase to 25,000 tons in 2022. In 5 years’ time, this strong growth is expected to level off somewhat.

The new Joint Marketing Forum for the South African Berry Producers’ Association recently held a meeting to discuss the marketing and logistics of the blueberries. According to some experts, this is a sign that the sector is maturing. The South African harvest will start in the north of the country within a month.

United States: Average volumes expected across the country
The blueberry supply is good, but the demand in the US market is peaking and falling, mainly due to the coronavirus. A grower says that “March was a good month for blueberries, April was dramatic and May was not as good as March, but certainly better than April.” In April, many blueberries also arrived from Mexico, and Georgia and Florida also had a good harvest. The buying behavior of consumers was also very different due to the coronavirus and there has been strong competition from strawberries.

California’s growing season is currently at its peak and it will continue for about two weeks. Growers say that this season has been one of the best in a long time and that blueberries are in high demand. The volume is comparable to last year’s. North Carolina and Georgia are now also at their peak with the supply of the later varieties. Despite the coronavirus, the demand for blueberries remains strong and the use of packaging (clamshells) also contributes to consumers buying blueberries. A higher price than average has been recorded in the last four weeks, which entails a reversal of the trend observed in the weeks before that.

After California, the harvest will start in Oregon, where there are also great prospects for this year’s production. The growers hope for better prices, given that production costs have risen and the Canadian dollar has dropped in value. The harvest will then also start in New Jersey and Michigan, but there they fear lower prices on the market due to the imports from Canada and Peru to the East coast of the US. Peru is also expected to hit the market with its blueberries earlier than last year and that will put some extra pressure.

Australia: Sector taking measures against drop in sale value
Due to the economic impact of the coronavirus in Australia, Berries Australia expects a deficit of AUD 30 million (EUR 18.3 million) in the sale value of blueberries. In order to tackle this, the sector is introducing a voluntary levy targeted to large buyers of blueberries, and efforts are being made to protect the market domestically. Blueberries are grown all year round in different regions. In the winter, the production shifts to New South Wales. The production increased by 13% in 2019 compared to 2018 and reached 19,008 tons. The value increased by 10%. Blueberry exports fell by 9%, to 201 tons, but the value increased by 8%. Some 1,555 tons are imported, mainly from New Zealand.

By Fresh Plaza

Northwest Cherry Growers’ latest 2020 crop estimate has reduced by 2m boxes but still remains very promotable

In its third crop estimate for the 2020 season Northwest Cherry Growers (NWCG) has reduced its forecast by 2m boxes to 18.8m boxes.

Poor weather in the early weeks of the season have played a role in delaying the crop and reducing volume, however, the season still holds plenty of promise according to a NWCG release.

“Though 2020 will be a slower and smaller harvest than the past few seasons, all indications still point to a very promotable crop which should go a long way towards satisfying the high demand we’ve seen around the world,” NWCG said.

Late-May rains delayed the start of the harvest for early growers and a trend of poor weather had replicated results in other Northwest growing regions. The same weather has also reduced some of the early fruit, with a drop in both dark sweet and yellow tonnage contributing to the 18.8m box forecast and affecting early shipments.

The industry has shipped just under 750,000 boxes total as of 9 June, much less than forecasted before the weather.

NWCG said these conditions have also resulted in reports of fruit being picked one-half to one full row size larger than normal.

NWCG said this will aid in ensuring a high-quality crop, a key factor in repeat purchases, something particularly important given data showing Covid-19 has reduced the number of shopping trips consumers make every week.

By Fruitnet

China registered a lower volume of fruit imports during the first quarter of 2020 amid the Covid-19 outbreak, but the value of imports managed to notch a rise.

The volume of fruit imports fell by 12% year-on-year to 1.61m metric tons (MT), but the value rose by 7% to US$3.01bn, according to figures from China’s Chamber of Commerce for Import and Export of Foodstuffs.

Cherries were the main drivers of the value growth of the period, rising by 34% to US$1.19bn, and representing 40% of total fruit imports.

Also contributing towards the growth were: peaches and nectarines, up 30% at $800m; durians, up 7% at $220m; dragon fruit, up 77% at $165m; and cranberries and blueberries, up 17% at $90m.

There were declines for grapes, down 13% at $240m; bananas, down 15% at $165m; and plums, down 27% at $100m.

Chile was the main fruit exporter to China over the three months, followed by Thailand, Vietnam, the Philippines and Peru.

Over the same period, China’s fruit exports fell by 9% in volume to 800,000MT and 15% in value to US$1.15bn.

By Fresh Fruit Portal

After months of decisive measures enacted by authorities, the COVID-19 epidemic in China has finally been brought under control. Although production is more or less returning to its normal pace, overall market demand is still taking some time to recover. Starting at the end of last year, China’s fruit market went through a four-month “static period” during which market demand plummeted. After several golden years for fruit importers and distributors, this came as an unexpected shock.

FRUIT IMPORTS: EVEN WITH SLASHED PRICES, FRUITS ARE NOT SELLING. IS THIS BECAUSE CONSUMERS DO NOT HAVE AS MUCH PURCHASING FREEDOM ANYMORE?

Over the past ten years, China’s fruit import volume has increased by more than sixfold, from a value of $1.63 billion in 2009 to $10.3 billion in 2019. China’s fruit imports grew by 23.2% in 2019, and the country is now a net importer of fruits. Cherries and avocados in particular have become a favorite of China’s emerging middle class. However, the economic slowdown brought on by the pandemic also pushed the “stop” button on this rapid growth.

The total fruit import value for the first quarter of this year reached $3.16 billion, an increase of only 5%. In the past four months, China imported 2.45 million tons of fruits and nuts, a decrease of 10.5% compared with the same period of 2019.

Last year, Guangzhou’s Jiangnan Fruit and Vegetable Wholesale Market, the largest distribution point for imported fruits in China, was able to go through 60–80 shipping containers of oranges per day. Now, in the aftermath of the pandemic, the market only processes approximately 15 containers per day and prices have fallen by almost 50%. One example is Egyptian oranges, which were priced at 100 Chinese yuan ($14) for 15 kilograms (33 pounds) this time last year but have now fallen to 70 yuan ($9.80). According to distributors, Egyptian oranges are particularly juicy, sweet and flavorful and are primarily sold to hotels, bars, restaurants and other food service establishments to make orange juice. Despite the fact that the domestic food service industry is slowly returning to normal, the situation is not looking promising from an ingredients acquisition point of view.

Once a favorite on e-commerce platforms, the price of New Zealand apples soared from 15 yuan ($2.10) per kilogram in January and February last year to 24 yuan ($3.36) at the same time this year. Going into April, while import prices fell back down to normal, the apples could only be sold at a wholesale price of approximately 12 yuan ($1.70) per kilogram, much to the disappointment of importers and wholesalers.

Grapes are another imported fruit facing a price drop amid low sales. Prior to the pandemic, wholesale prices averaged about 22.5 yuan ($3.15) per kilogram. Now that it is ripening season in the Southern Hemisphere, shipping has started to pick up again and import prices for grapes have fallen to 17–18 yuan ($2.37–2.52) per kilogram. When the fruits reach distributors, even if they can be sold for 10–12.5 yuan ($1.40–1.75) per kilogram, sales have not been astounding.

According to data released in April by the National Bureau of Statistics, China’s GDP for the first quarter of 2020 fell by 6.8% compared to last year, marking the first time since 1992 that China’s economy has witnessed quarterly shrinkage. As consumers cut back on spending, imported fruits have become less and less of a must-have item. Although there are still some high-powered consumers, in the face of suddenly unstable incomes and life pressures, young people, once always keen to get their hands on the latest and freshest items, are now reigning in their spending habits. As the primary consumers of imported fruits, young people have finally experienced the freedom to purchase almost any fruit they desire, yet now their wallets are not so free.

DOMESTIC FRUIT: A CROSSROADS BETWEEN FALLING PRICES AND FARMERS WHO CANNOT WAIT ANY LONGER

As importers face difficulties while consumers reign in their spending, how have domestic farmers been faring? It turns out that Chinese farmers have also suffered serious losses during the pandemic. Owing to the closing off of village roads, farmers have been almost unable to continue production. Management also took a hit due to labor shortages and delays, which had a direct impact on the final quality and volume of fruits. Meanwhile, farmers faced the double problem of not being able to receive supplies or send out fruits as a result of tight transportation restrictions. On the market side, distributors have not been able to sell and order volume has slumped, both of which have directly impacted the income of farmers.

To make a bad situation even worse, some parts of China have also witnessed abnormal weather this year. In April, some areas experienced prolonged wintry conditions in the midst of spring. Hubei province, a major peach-growing region, experienced snowstorms and hail while fruits were growing, as well as dry, arid weather while fruits were ripening, both of which led to the peaches reaching the market 10 days later than last year. Now the market supply is relatively low, and sales have been extremely slow to pick up momentum again. Northern cherries have not fared much better, with warm weather in March causing Hebei province’s cherry trees to bloom earlier than usual and low temperatures in April resulting in significant losses.

As low-risk economic activities gradually resume, the fruit market seemingly has some hope once more. In their struggle to survive, farmers and distributors have engaged in a race to the bottom in terms of prices, although this is unlikely to help mitigate growers’ losses. According to data released by China’s Ministry of Agriculture, wholesale prices for the five domestic fruits surveyed fell by 11.7% compared to last year. What worries farmers even more is that despite the substantial fall in prices, consumer demand remains stagnant.

WITH DEMAND SO SLOW TO RECOVER, WILL E-COMMERCE SAVE THE FRUIT MARKET?

During the height of the epidemic, options for fruit sales were severely limited. In reaction to this, many fruit sellers delivered and promoted their goods via new avenues such as community-level e-commerce enterprises and even live streaming. Community-level e-commerce products directly reach certain areas via contactless delivery, allowing consumers to continue enjoying fresh, safe produce at good prices. Express delivery services resumed business early, while large-scale e-commerce operations also took action under the slogan “Show love for our farmers.” Local government leaders themselves even joined in on live-streaming deliveries.

These new retail approaches certainly saved some highly perishable fruits and helped some farmers minimize their losses. However, the vast majority of farmers have never utilized such Internet channels, be it directly or through intermediaries, resulting in a delay while they become accustomed to such methods. Furthermore, e-commerce logistics for fruit are heavily reliant on cold-chain systems; it is difficult to reduce the spoilage rate sufficiently to sell high-quality fruits nationwide, and China’s current cold chain conditions can make it difficult to satisfy the freshness demands of e-commerce consumers.

With summer quickly approaching, and with it the high season for fruits going on the market, how long will this stagnation persist for? As the economy stabilizes and people’s lives begin to return to normal, will farmers and distributors finally be able to see the light at the end of the tunnel?

By Produce Report

The South American table grape supplies have mostly been cleaned out of the market, and US supplies are currently coming from Mexico and Coachella, though the volumes coming out of Mexico haven’t been as high as they should be in the past weeks.

Ira Greenstein of Direct Source Marketing says: “Lack of sugar on green seedless and color on Flames have set the table for strong spot market FOB’s, but we are likely to see significantly more fruit crossing by the end of the week. It certainly looks as if we are heading to a repeat of last season with compressed volumes arriving in June and July. I would expect marketers to try and hold onto the last high spot market sales early in the week but with aggressive retail programs in place and 17 million boxes to sell, we should see pricing drop below $20 by the 8th of June.

Mexican Flame crop 2 weeks behind
Excessive heat in Hermosillo has caused a delay on the Mexican Flame crop, which is currently about two weeks behind schedule. “Marketers have been scrambling to fulfill their program commitments, and for the second year in a row Chilean supplies of Crimson, Allison and Scarlotta filled the gap while waiting on Mexico to get started. Interestingly, spot market FOB’s for Chilean fruit in May never saw the spike that we would have expected. Clearly our current health and economic crisis has had an impact on the table grape industry,” says Greenstein.

While the spot prices are currently quite high for the red seedless grapes, they’ll like decrease in the coming week because many programs are locked in at lower prices. Greenstein explains: “Mexican Flames currently range from $24.95-$28.95. Some growers had good volumes of Sweet Celebrations last week and fruit moved pretty easily at $28.95. With so many programs locked in ranging from $18.95 – $22.95, marketers will certainly start dropping the spot market to be more in line. If volumes still hanging come as compressed as we expect, we’ll look for FOB’s to drop well below $18.95 by the 15th of June.”

Slow start to green seedless
The amount of green seedless in the market is currently at quite low levels, which has kept pricing high. “We saw steady crossings of Early Sweets, Primes and Perlettes last week but it was not enough to cover spot market demand and committed programs. As growers continue to fight sugar, FOB’s have remained elevated. Typically, during the first week of June, green seedless pricing would be ranging between $16.95-$20.95, but with such a slow start we won’t see those levels for another 7-10 days. Programmed pricing is still lower than the daily spot market, but marketers will have to find a balance very soon as production begins to ramp up.”

“Spot market pricing on Mexican Perlettes ranges from $18.95-$22.95, and Primes and Early Sweets range from $22.95-$26.95. This week, the FOB’s will likely adjust a bit lower on premium fruit as more product should become available. As the temperatures in Hermosillo could continue to have an impact, the market could be kept at close to these current levels,” Greenstein adds.

Flat market for black seedless
While the supplies of black seedless grapes such as the Mexican Summer Royal have been steady, the demand hasn’t been very high, which has left the market relatively flat. “Overall condition and quality have been very good but there seems to be a wide range of sizing available. Spot market FOB’s range from $18.95 – $20.05 on large fruit and $20.95 – $22.95 on premium extra-large lots. As retailers look to more high-profile commodities to promote, we should see overall pricing adjust lower over the next two weeks. Even as we get to $16.95 it is unlikely to see any significant promotional activity on black seedless,” Greenstein concludes.

By Fresh Plaza

Supplies of onions are strong currently.

“South Texas is finished production and they’re moving more into West Texas. And California is finished in the Imperial Valley and they’re moving into mid-state California. And New Mexico is just starting,” says Steve Smith of National Onion, Inc. based in Las Cruces, NM. “There are plenty of supplies right now.”

Smith says that while volumes are similar to last year, white onions are especially plentiful. “Mexico has a very low market so they’re sending all of the white onions to the U.S. that they can. White onions are a bit oversupplied right now,” says Smith.

Demand meanwhile is interesting, says Smith. “A month ago, we had no idea where we were going to sell these onions because retail was all we had,” he says. “It was steady. And then the restaurant business came back. But it’s not 100 percent back—it’s more like 30-40 percent of the restaurant business coming back.” He adds that other initiatives such as government food boxes are purchasing onions as well. “So, there’s business coming from more angles.”

Average pricing
All of this leaves pricing as mediocre, however. Smith notes that medium and jumbo yellow onions are $9 while white onions are $8-$9 and red onions are $6-$7, depending on size. “When the stores were the only thing going in March and April and coming into May, jumbos were depressed because that’s what foodservice buys,” says Smith. “They were a lot lower than the medium sizes which is what the stores buy. That’s crept up to catch up to the medium at $9.”

Looking ahead, restaurant openings may be the tipping point for onion sales this summer. “June through August, California and New Mexico are pretty much the biggest suppliers and they have a pretty standard amount of volume because they planted not knowing any of this was going to happen,” says Smith. “Demand could be very slow if all you have is the retail and the restaurants with lower demand. If it stays like that, prices will probably stay pretty depressed and the growers will fight for every sale. If restaurants come back full speed, then they could take everything that everyone’s producing and keep it a bit better than it is.”

By Fresh Plaza

SALINAS, CA – When a new salad variety hits the wire, it’s cause for celebration here in the office of AndNowUKnow. (Or, more realistically, the remote home couch of a certain Andrea Allen.) But nevertheless, this new salad offering from Church Brothers Farms is going to knock the socks off of me, consumers, and buyers. The Tuscan™ Tender Leaves—which are a blend of European style lettuces, including oaks and tangos and lolarossa—provides all an aesthetically pleasing offering while being scrumptious to boot.

Rick Russo, Senior Vice President of Sales and Marketing, Church Brothers Farms“We are growing and blending this new mix of lettuce leaves to provide more benefits and value to end users,” said Rick Russo, Senior Vice President of Sales and Marketing. “This is a superior product to a traditional spring mix; we established this new mix after extensive reviews with multiple seed companies and seed trials. We selected the best varieties based on shape, color, and taste.”

According to a press release, the Tuscan Tender Leaves are unlike other baby lettuces in that they are grown to full maturity. This provides a sturdy leaf structure and strong shelf life. The crop is mechanically harvested, meaning that less labor is required. Once they are harvested, they are blended together, triple washed, packed, and shipped to their final destination.

“Tuscan Tender Leaves look like an unprocessed mix that could be found at a farmers market,” Russo said. “Our tests show that these particular leaves hold up to hot proteins and dressings, which significantly cuts back on kitchen prep time in banquet/catering applications, and gives any salad a fuller plate appearance.”

On the plate, Tuscan Tender Leaves has a higher loft than spring mixes, creating higher portion yields and more servings per pound than spring mixes. The flavor is sweet, and has more body, crunch, and texture than baby leaves. Church Brothers is now shipping this product to its customers nationwide.

A new must-have in the salad aisle? Seems that way to me!

By AndNowUKnow

Secretary of State Mike Pompeo declared this week that Hong Kong is no longer sufficiently autonomous from China “to warrant treatment under United States laws in the same manner as U.S. laws were applied to Hong Kong before July 1997.” The decision followed Beijing’s announcement that it would draft sweeping national security legislation for the former British colony, sidestepping the city’s own legislature to outlaw secession, subversion and terrorism.

WORLD

‘No Reasonable Person Can Assert’ Hong Kong Has Autonomy From China, Pompeo Says

Here are some key points about what the latest moves by Beijing and Washington may mean for the city.

What is Hong Kong’s special status?

Five years before Britain handed control of Hong Kong to China on July 1, 1997, U.S. policymakers agreed to continue to effectively treat the territory as a separate entity from China beyond that date.

Under the United States-Hong Kong Policy Act of 1992, the U.S. affords Hong Kong special status as a part of China and agreements governing a range of interactions including commerce between the U.S. and Hong Kong that predated the handover would remain in effect.

From the U.S. perspective, perhaps the biggest way in which Hong Kong is treated as separate from China has been in trade and economics. The U.S. recognizes Hong Kong as a unique customs territory, which means it has been largely spared the upheaval of the U.S.-China trade war. Hong Kong is one of the United States’ biggest export markets and it has a zero tariff rate on U.S. imports.

Hong Kong is also a key global financial center, a status it earned through decades of an open economy and rule of law. It’s been a critical conduit for investment flows into and out of China.

What may change?

The United States government has not revoked Hong Kong’s special status — yet.

Under a 2019 amendment to the U.S.-Hong Kong Policy Act, the secretary of state is required to report to Congress at least once a year on the status of Hong Kong. Pompeo’s decertification of Hong Kong as sufficiently autonomous from Beijing opens the door to concrete action by the administration, including possible sanctions.

According to U.S. law, Hong Kong’s special treatment since July 1997 has always been contingent on China abiding by its promise to let the territory remain largely autonomous. That promise was codified in Hong Kong’s mini-constitution, the Basic Law, which allows Hong Kong to manage its affairs in all areas except national defense and foreign policyunder an arrangement called “one country, two systems.”

The Basic Law requires the Hong Kong government to enact laws “on its own” to prohibit treason, secession, sedition, subversion, theft of state secrets, and to ban foreign political organizations from conducting political activities in Hong Kong.

The Hong Kong government tried to do so in 2003, but failed due to widespread public opposition. Critics fear such laws could be used to silence dissent or curtail civil liberties. So China’s ruling Communist Party has taken matters into its own hands, and with its drafting of national security legislation will unilaterally imposesuch laws on Hong Kong, circumventing Hong Kong’s own legislature.

Pompeo saw that move as part of an “escalating assault on the territory,” marked by the erosion of liberties at the hands of Beijing. In 2019, he certified that Hong Kong maintained “a sufficient — although diminished — degree of autonomy.” China’s actions since then, including this week’s, pushed it over the line, he said.

What are the implications?

Assistant Secretary of State for East Asian and Pacific Affairs David Stillwell said on Wednesday the U.S would try to “thread the needle” when it comes to action.

“We’re going to do this in a smart way, in a way that takes care of the things and the people we care about, while at the same time letting Beijing know that what they’re doing … contravenes what they agreed to do back in ’97,” he told reporters.

That may be a challenge.

Hong Kong has long been a regional hub for American businesses drawn by Hong Kong’s free-market traditions, the rule of law and civil liberties. Close to 1,400 U.S. firms have operations there, according to the U.S. Consulate. Bilateral trade was nearly $67 billion in 2018, according to the United States Trade Representative, and the stock of U.S. foreign direct investment totaled more than $82 billion in 2017.

“Nearly every major U.S. financial firm maintained a presence in Hong Kong, with hundreds of billions of dollars in assets under management,” according to the State Department’s 2019 Hong Kong policy report.

The U.S. is not alone. Australia, Canada and Britain joined the United States in a public statement on Hong Kong on Thursday, expressing deep concern over China’s decision to impose the national security law and saying Beijing’s action jeopardized Hong Kong’s stability and prosperity.

Beijing’s increasingly heavy hand in Hong Kong affairs has made many businesses nervous, particularly when it comes to questions around the potential erosion of liberties and judicial independence. But equally, huge and sometimes violent street protests in recent years — in reaction to Beijing’s encroachments on Hong Kong affairs — have also dented the territory’s image as a stable place to conduct business.

A decision by the U.S. to revoke all or parts of Hong Kong’s trade status could add to strains on businesses operating there — and those actions would undoubtedly be met by retaliation from an angry Beijing.

For Hong Kong’s 7 million people, it’s a more complicated story. Some activists have welcomed Pompeo’s remarks, and see foreign help as the only way now to push back against Beijing.

Others — in line with the thinking of the Chinese government — feel the U.S. has no say in what they consider an internal affair. Either way, their hometown appears to be in for some monumental changes.

By NPR

The European production of apricots, peaches and nectarines is estimated to be lower than last season. This is due, on the one hand, to long-term developments, and on the other hand, to the weather conditions ahead of the harvest, including a mild winter (which is not very good for the apricots) and a late frost in Aragon, Catalonia, the Rhone Valley and northern Italy.

In the US, California has also had to deal with such weather conditions. Italy in particular was affected by frost, and compared to last year, Emilia-Romagna (Europêch 2020) expects an 80% reduction in the harvest. The Italian volume is therefore expected to fall below 1 million tons, which is something that has not happened in 25 years. The issue that the sector is most concerned about is the coronavirus crisis and its future development. Will borders within Europe reopen for tourists or will they remain closed? In any case, the demand from supermarkets is keeping the overall demand high. Australian products were more affected by the coronavirus when many of the export products were stuck in the ports and could not be taken out from the reefers.

The Netherlands: High demand, limited availability of stone fruit
There is currently a high demand for nectarines on the Dutch market, but there is little product available. Importers expect prices to remain at high levels until northern Spain hits the market. The supply of Paraguayo peaches is growing steadily. Their sale is also going well, with prices at a fairly high level. The demand for peaches is mainly for large sizes, as the small sizes are more readily available. The prospect is that as the supply on the market increases, prices will drop slightly.

Germany: Large-sized nectarines are in great demand
The stone fruit season is currently in full swing. Last week, the first Paraguayo peaches from Spain arrived in the German market, so now the entire stone fruit range is available. “The demand for stone fruit is quite good across the board,” said an importer. “The larger-sized nectarines are particularly popular with consumers at the moment. Peaches are also doing well, although nectarines have generally generated more sales in recent years.”

At the beginning of the season – which started just before Easter – the storms in Spain raised the concerns of the stone fruit sector. Due to the amount of rainfall, the harvest of the first apricots of the season had to be delayed. Despite the difficult start, the supply now seems to be going back to normal. Now we have to wait for the first French apricots. Small volumes are already available on some German wholesale markets, but most importers are still waiting for the first deliveries.

France: Smaller apricot harvest due to weather conditions
The apricot harvest started in south western France last week, a week earlier than last year; however, rain and hail have damaged much of the production. The volumes coming from the field are therefore smaller, while the demand for stone fruit is good and prices are high. The arrival of the first peaches and nectarines is scheduled for next week, with better quality expected for peaches than for nectarines. There have been some problems with diseases and the weather conditions, but good volumes are expected.

Spain: High prices for stone fruit
The situation for Spanish stone fruit is completely different compared to last year. That is actually a good thing, since if nothing had changed, this year’s would have been a disaster. Stocks are more limited compared to last year. The demand was good at the start of the season, which kicked off two weeks earlier than last year.

Record temperatures and warm weather in several Northern European countries are also giving a boost to the demand for stone fruit. Because of the coronavirus, people are also more concerned about healthy eating. Although the sector initially suffered from the lockdown and the measures in various countries, the demand from supermarkets has kept sales high and cold stores have been left empty at the end of the day. The demand is also expected to continue increasing as a result of the reopening of the catering industry in Europe. The loss of tourism in Spain was still a concern at first, but the demand in the countries where these tourists often come from is increasing and that is keeping things in balance.

The reduction in the production volumes in Spain and other Mediterranean countries is having a direct impact on prices, which are higher than last year. A total of 1,414,913 tons of nectarines and peaches are expected, which is 12% less than last year. Nectarines in particular have been affected by low yields per hectare and some quality problems, so their production is 20% smaller than last year. Still, this fruit’s demand has increased the most. Peaches and Paraguayo peaches have seen a rise in both the demand and prices.

Apricots are also quite scarce in the market, but there is more speculation regarding the sale price. This year there is more demand and a higher price (depending on the quality). The demand is higher because many traders who normally get their goods from France and Italy have also been looking in Spain. The volume of apricots is estimated at 93,740 tons (15% less than last season). This reduction is mostly a consequence of the cold winter and frost in Catalonia and Aragon and the hail storms in Castile-La Mancha in early April. Catalonia has lost 26% of its production due to frost in Tarragona and Lleida. The high prices for peaches, nectarines and apricots are expected to stay at that level throughout the season. The harvest in Aragon, Catalonia and Extremadura will be hampered by a shortage of field workers due to the border restrictions introduced to prevent the spread of the coronavirus.

Italy: Further decline in stone fruit volumes
The volume of stone fruit is low this year. This is due to structural problems that have been going on for years, but also because it has been difficult to find workers this year due to the coronavirus and the late frost, recorded between late March and early April. The total volume of apricots is estimated at 136,000 tons; 56% less than last year and 40% less than the average between 2014 and 2018. After years of expansion, the acreage has not changed this year. For peaches and nectarines, the volume has been predicted to reach almost 820,000 tons (28% less than last year). This drop is not only due to this year’s circumstances, but also to a reduction in the acreage, which is down by about 5% each year. For the Pavia, the reduction reaches up to 44% compared to last year.

The harvest of apricots in Emilia-Romagna started on May 10 with good market demand. The stone fruit harvest has also started in Apulia (Patagonia nectarine) and Basilicata (Mogador and Pricia apricot, and later also the Flopria, Orange Rubis, Kiota, Faralia and Farbela). In Calabria, the Mikado apricots are currently being picked and handled immediately for their sale to supermarkets in Italy and Austria. In Sicily, the production is in line with last year’s. The focus is on the early varieties and there has been a 10% increase in the average price. The price at origin amounts to around 0.40 and 0.70 Euro / kg. Foreign competition from Spain and Greece is also strong this year.

Greece: 10% lower production this season
Out of all European production countries, Greece is the largest Pavia producer, with an estimated 415,000 tons this year (8.17% less than last season). Looking at the total stone fruit production, the volume is expected to fall by 9.6% compared to last year. Frosts in Macedonia, where the bulk of the stone fruit is grown, is one of the causes. Still, the volume expected is 3% higher than the average for 2014-2018.

Turkey: Uncertainty about the demand for stone fruit
In Turkey, the sector has noticed that the demand for nectarines is a little slower than last year. Customers aren’t as keen as usual to buy the fruit because of its shorter shelf life. Nevertheless, the situation is expected to improve somewhat, so the country could still increase its exports. “The quality is good, the volumes are good, but the demand is lagging somewhat behind,” said a Turkish exporter. “The shelf life is a little shorter than that of the Spanish competition.” However, the country’s exports consist mostly of peaches and apricots, and these fruits record growth every year. The volumes in 2019 were smaller than in 2018. The Turkish season runs from May to September; it starts in the southeast and continues in the Mediterranean coast and then the north. Turkish stone fruit is mainly intended for markets like Russia, Ukraine, Romania, the Balkans, Germany and Iraq. Small quantities also go to Belarus, the UK, Latvia and Lithuania.

China: Reduction of exports expected due to declining demand in Southeast Asia
The stone fruit season has started in China. The first early peach varieties are now coming from Hubei, a large production area with a focus on peach cultivation. The market is still a bit stiff and sales are therefore slow; however, there is still demand from the Chinese stone fruit market, so sales continue. This year, several areas suffered the impact of severe hail in April, which took a toll on the stone fruit supply as a whole. In some cases, half of the harvest or more was lost. The varieties now hitting the shelves are early ones. In June, the total production will quickly increase.

Besides the domestic market, a part of the volume is exported to countries in Southeast Asia. Here, however, the demand has fallen considerably and it remains to be seen how the situation will develop. China also imports a lot of stone fruit. This year, the season of Chilean sugar plums went very well. Some stone fruit also arrives from Australia every season.

North America: Smaller stone fruit sizes
The volume of stone fruit on the North American market is expected to grow in the near future. The prospect among growers in California is that the fruit’s sizes will also improve, because these are currently on the small side. A shorter period between the flowering and the harvest and extreme temperature swings in California are thought to be the cause of the smaller sizes. Growers are satisfied with the quality of the fruit, which is better than in previous years.

The season started a week later compared to last year and was then delayed. As a result, the stone fruit season is expected to last for longer in California. In June, producers expect to be able to supply larger sizes; nevertheless, the demand from retailers remains good and prices have not changed significantly compared to last year.

The state of Georgia expects a large volume of peaches, although it won’t be reaching last year’s figures, which were record-breaking. Despite the fact that peaches don’t have a long shelf life, the demand for the product is very good. Peach prices are also comparable to last year’s.

Australia: A lot of stone fruit stranded in ports due to the coronavirus
The Australian sector is mostly satisfied with the 2019/2020 season, and the fruit’s rising value. Although there have already been quite a few challenges at both national and international level, the actual impact of the coronavirus crisis on the market remains unclear, as the virus started spreading strongly during the export season. For example, part of the production was stranded in the ports and the fruit could not be taken out from the reefers. In terms of cultivation, some regions had to deal with hail or high water costs. In the 2018/2019 season, increases have been achieved by both apricots (+17%, to 9,027 tons) and nectarines / peaches (+4%, to 119,775 tons).

New Zealand: Focus on 2020/2021 season
In New Zealand, apricot exports rose by 50% and other fruits also saw their exports increase. In fact, Hawke’s Bay in New Zealand had one of the best production seasons in years. The country’s focus is now on the 2020/2021 season.


By Fresh Plaza

Blueberry growers in Oregon are gearing up for harvest. “We are expecting to start harvest in two weeks, on June 11,” says Catherine Gipe-Stewart with Domex Superfresh Growers. It’s the company’s second year of growing and marketing blueberries and Gipe-Stewart is anticipating a slightly larger volume compared to last year with a nice promotable crop. “This crop year, weather has been in our favor. We’ve been having cool nights recently, which helped increase fruit sizing, create a more uniform size, and increased the brix levels of the fruit,” she added. Harvest is expected to go into mid-September, making for a smooth transition into kiwi berry harvest.

All of the company’s blueberry fields are located in Oregon, in the Umpqua Valley. “The mild, dry climate is ideal for producing delicious, large, high-quality blueberries over a long season,” said Gipe-Stewart. “The climate is cooler than eastern Washington State, reducing heat-induced condition concerns.”

Blueberries complement product range
Last year around this time, Domex Superfresh Growers announced its expansion into the blueberry segment through a partnership with Norris Farms. When asked how the first year went, Gipe-Stewart mentioned it was a smart move for both companies. “As both family-owned companies, we have similar values and work well together. Our collective farming, sales, and logistical expertise, combined with mutual multi-generations farming knowledge, have created a great match.” In addition to a great partnership, blueberries complement Superfresh’ other product offerings well. “They can be conveniently included with cherry, apple and pear loads,” she commented. “Our internal logistics team, DSG Logistics, can combine trucks with Northwest vegetables as well.”

Certified heart-healthy food
The company is expecting high demand for blueberries this summer. “We think families will forego traditional vacations and stay close to home with small groups of family and friends. Blueberries will be a popular way to add excitement to backyard picnics and grilling. They are an ideal picnic food and we have plenty of recipes and ideas to help encourage picnicking,” said Gipe-Stewart. Not only are blueberries a convenient snack, their health benefits make them even more appealing. They are certified as a heart-healthy food by the American Heart Association as they carry four essential nutrients, including fiber, vitamin C, vitamin K, and manganese. One cup of blueberries contains only about 80 calories.

Exports
In addition to distribution in the domestic market, Domex Superfresh Growers also has a blueberry export program. “We are very optimistic about the export market, especially with China and the Philippines open for blueberries from the United States. Our main export markets outside North America will be Taiwan, Singapore, Malaysia, and Vietnam.”

By Fresh Plaza

The results of a survey intended to better understand how Covid-19 has impacted Monterey County agriculture was released May 4 by Agricultural Commissioner Henry Gonzales. Survey results showed a total of 2,093 acres lost or not planted.

“The survey is a preliminary look at what is happening and provides information to forecast the future,” Gonzales said. “A final tally of losses will not be possible until the Covid-19 pandemic passes.”

The Agricultural Commissioner’s Office conducted the survey between April 20 and 24. In the survey, 186 vegetable and berry growers were contacted, with an overall response rate of 62 percent, meaning 116 growers responded. Of those, 44 growers reported losses.

Of the growers who responded, 39 percent advised of losses ranging from 5 percent to 90 percent, and nearly 20 percent said they had crops that were ploughed under, such as lettuce, broccoli, spinach, cauliflower, wine grapes, artichokes and lemons. Berry growers did not report losses as the season has yet to start in earnest.

Of the participants, 60 percent indicated there has been low demand from the food service industry. In light of all the food that has been reported as destroyed, five coolers and one grower indicated they had donated produce to area food banks.

Marketing issues were reported by 70 of the growers, which include low demand in general, low demand from the food service industry, a saturated market, and contract orders being reduced.

“Changes to the marketplace since the Covid-19 shelter-in-place orders has jeopardized the ability of many farms to remain financially stable, and to date, federal relief programs have offered little in assistance,” said Farm Bureau Executive Director Norm Groot. “Specialty crops have been hit hard by changing consumer choices and reductions in restaurant food supply services.”

By Fresh Plaza

Most ocean container carriers have divested their ownership of wheeled chassis to third-party service providers, but American shippers and their draymen say they continue to wield considerable commercial influence over the cost to use this equipment.

“The chassis situation is one of the most complex and contentious components in our international supply chain, which is why we assembled all the players, making this a spirited topic at our virtual 32nd Annual Meeting,” Peter Friedmann, executive director of the Agriculture Transportation Coalition, told American Shipper.

In the U.S., most container chassis are owned by three leasing companies — Direct ChassisLink Inc. (DCLI), Flexi-Van Leasing and TRAC Intermodal — or by the North American Chassis Pool Cooperative (NACPC), which was formed by a group of 12 motor carriers.

The draymen, who are represented by the American Trucking Associations’ Intermodal Motor Carriers Conference (IMCC), earlier this month warned that they are willing to take regulatory and legal action against the ocean carriers, who are represented primarily by the Ocean Carrier Equipment Management Association (OCEMA), if they don’t change their chassis-leasing practices.

IMCC Executive Director Tyler Rushford said shipper-employed draymen have been overcharged to the tune of $1.8 billion over the past three years as a result of the chassis-leasing companies offering better deals to the ocean carriers.

“We want a fair system. We want a system that works,” Rushford said during the Agriculture Transportation Coalition’s virtual conference on May 20.

Rushford warned if the current commercial situation for chassis does not improve, the IMCC is prepared to file legal action.

Ryan Houfek, chief commercial officer for DCLI, fired back at the IMCC’s claims, saying that “a third to a half” of all container movements in the U.S. today move on chassis owned or leased by trucking companies. He said these operations are growing and have been “taking share” from the chassis pools for years.

Houfek said a national gray chassis pool operation would be akin to a “Democratic People’s Republic of Chassis,” a reference to China’s state ownership of certain industries, adding that the concept “flies in the face of open-market solutions in this country.”

He further warned that a government-influenced neutral chassis pool would lack incentives to invest the tens of millions of dollars a year to maintain chassis equipment.

Houfek described the current chassis arrangements as “market choice in action.” He said if the chassis-leasing business were not already competitive and up to date, the business would come under the trucking companies’ control.

Jennifer Polli, TRAC’s president and CEO, said “choice and competition [for chassis] are alive and well” in the U.S. but acknowledged that each chassis pool throughout the country may have slightly different operations due to the local shipper markets.

In May 2019, Federal Maritime Commissioner Rebecca Dye said a “supply chain innovation team” of industry representatives found that the most critical need for improvement in freight velocity and fluidity in and out of the rail ramps in Memphis is for a “single interoperable gray pool.”

Michael Symonanis, a longtime Agriculture Transportation Coalition board member and chairman of the American Cotton Shippers Association’s Transportation, Documentation, and Insurance Committee, said cotton shippers support an interoperable gray chassis pool for the Memphis area after back-to-back years of equipment shortcomings in the region.

U.S. cotton shippers rely on merchant haulage with their truckers to move container loads of cotton to intermodal railheads and the seaports.

“We’re going to face volatility because of COVID-19 and that will identify the weak points in respect to supply chains and geographies as we move forward,” he said. “We’re fully supportive of industry-led solutions” to improving chassis management.

One industry expert said it is time for the ocean carriers to get out of chassis altogether. “I think it’s creating artificial market rates and inefficiencies in the market,” said James Ford-Hutchinson, director of sea freight at freight forwarder Flexport.

Ford-Hutchison recommended that the industry begin working with the railroads and other industrial property operators to create gray chassis pool solutions. “Let’s do this before a [government] solution is thrust upon the industry,” he said.


By Freightwaves

In recent weeks, China updated its lists of US facilities eligible to export. This means that more US agricultural products are eligible for export to China than ever before. The USDA and the Office of the US Trade Representative (USTR) today announced additional progress in the implementation of the US-China phase one trade deal, entered into force February 14, 2020.

“China is a market of tremendous potential for US agriculture and these actions will help US exporters expand their sales there,” said US Secretary of Agriculture Sonny Perdue. “We look forward to continued cooperative work with China on implementation of Phase One commitments, and immediate increases in US exports of all manner of agricultural products.”

“China has worked with the United States to implement measures that will provide greater access for US producers and exporters to China’s growing food and agricultural markets,” said USTR Robert Lighthizer. “Under President Trump’s leadership, we fully expect this agreement to be a success.”

US blueberries and California Hass avocados can now be exported to China as well. In 2019, China imported a record volume of fresh fruits and vegetables exceeding $8.6 billion.

By Fresh Plaza

PRESS RELEASE: South San Francisco – In this age of change, uncertainty and financial loss, two Bay Area companies have partnered and answered the call by the USDA to supply pre-packaged consumer-ready produce food boxes to Northern California food banks, religious organizations, community support groups and other charities.

The USDA Farmers to Families food box program has committed $461 million in fresh fruit & vegetable purchases under the Families First Coronavirus Response Act. Because of the change in business conditions related to Covid-19, the program is designed to assist farmers and wholesalers move excess product caused by bringing fresh fruits & vegetables to consumers in need. The first phase of the program runs through June, with two extensions in place until the end of the year.

CDS Distributing, Inc., BB #:113987 a South San Francisco produce distributor was one of the companies chosen to participate in the program after competing with numerous companies nationwide, earning a $1.5 million contract. CDS has partnered with Produce Express BB #:137231 in Sacramento to combine their unique strengths in the industry to create a 20-pound produce food box containing various seasonal produce items for distribution.

Distribution will encompass the entire Bay Area region from the North Bay to Monterey, and the Central Valley from Sacramento to Fresno.

The need for a single box with different items is great as food banks & community support organizations are experiencing difficulties in finding volunteers to build boxes for distribution and provide warehouse areas to store fresh fruits & vegetables. This program delivers a complete box with 6 different items.

“It is the perfect box for these organizations as it not only helps growers move excess supplies, but gets fresh food to the neediest”, says Alberto Navarro of CDS. “We began deliveries Monday, ranging from full truckloads to single pallets of 70 boxes. Many of these organizations do not have resources such as pallet jacks & forklifts to offload product. While visiting the neighborhood I grew up in, my nephew and I jumped in and helped offload the truck & arranged for them to keep a pallet jack on loan.”

CDS Distributing, Inc. has been in business is the Bay Area for 43 years with a satellite office in Tieton Washington. They specialize in Northwest tree fruit, potatoes and onions. The partners have up to 4 generations experience in the growing, wholesale and retail side of the produce business.

By Produce Blue Book

The North American Blueberry Council expressed appreciation for progress made in ongoing U.S. trade negotiations with China in phase 1 of the trade agreement disclosed earlier this year. Among the new tenets of the agreement is expanded market access for fresh U.S. highbush blueberries. Previously, China only permitted imports of dried and frozen U.S. highbush blueberries. Additionally, the Philippines will formally open its market to fresh U.S. highbush blueberries, making the U.S. the only country with official access to the Philippine market for fresh blueberries.

China Market Access
The potential the Chinese market holds for the U.S. highbush blueberry industry is enormous, but more work remains to be done, including addressing the 75% tariff imposed on blueberries exported from the U.S. 

The Chinese market represents a significant opportunity for the U.S. highbush blueberry industry, as an increasing number of Chinese consumers prefer imported fruits due to their superior taste, nutrition and appearance. Consumers also are demonstrating clear interest in blueberries specifically. From 2014 to 2018, the volume of per capita fresh blueberry consumption in China increased by more than 400%.

“USHBC is in a position to help U.S. growers sell more blueberries in China, which represents significant growth potential for the industry,” said David Arena, chair of the USHBC Export Committee and president of Frank Donio Inc. based in New Jersey. “Opening the Chinese market for fresh blueberries will help grow demand, ultimately supporting USHBC’s strategic goal of doubling exports by 2025, with a focus on high-opportunity markets in North and Southeast Asia.” 

Key updates to the phase 1 trade agreement relevant to blueberries include:

• Fresh blueberries must be commercially produced from the states of California, Florida, Georgia, Indiana, Louisiana, Michigan, Mississippi, New Jersey, North Carolina, Oregon and Washington.
• Blueberries must come from packing houses registered and approved by USDA, and the registered packing houses must have a system to ensure all fruit can be traced back to the supplying orchards. 
• Each packing house must retain a list of registered supplying orchards that can be made available at the request of the USDA or GACC, the agency in China that corresponds with the USDA’s Animal and Plant Health Inspection Service.
• APHIS will supply the list of approved packing houses to GACC annually.
  
  

Philippines Market Access
The USDA reports that annual U.S. sales to the Philippines have averaged $150,000 over the last five years, but trade experts project that sales could reach $500,000 this season, and as much as $1 million annually in the future.

Licensed U.S. highbush blueberry importers will need to follow the Philippine Department of Agriculture’s usual regulations for fresh fruit importation:

• Importers must secure a Sanitary and Phytosanitary Import Clearance from the DA’s Bureau of Plant Industry.
• Products must not load for export before their issuance.
• All products must be shipped within 20 days following their issuance and must arrive in the Philippines within 60 days from the must ship-out date.
  
  By Fresh Plaza

Following a rainy early start to the week, California cherry growers are assessing how much damage the rain has caused to its cherry crop.

At Delta Packing Co. in Lodi, CA, Nick Lucich was watching the weather as of Saturday already. “At first they said it would hit Sunday morning but then it seemed more like Sunday afternoon,” he says. “Fortunately, it didn’t hit until Sunday evening, so we were able to harvest Sunday under the threat of clouds and rain. It never really started coming in until 4:30-5:00 pm.”

When the rain did hit, it ranged from isolated showers landing on some spots to full but quick downpours in others. “Those are always kind of scary because you don’t know who’s going to get hit,” says Lucich.

Sunday evening continued to see rain through to early Monday morning which prevented any further harvesting in the Stockton and Lodi, CA areas. “But we also have cherries in Hollister and Gilroy and those were rained on as well,” says Lucich. “We aren’t harvesting over there yet. But everything that’s supposed to be harvested in the next couple of weeks is at risk of being damaged from the rain.”

^{Pickers at Delta Packing Co. try to get ahead of the rain on Sunday afternoon.}

Watching and waiting
Fully assessing the damage should take a few days, though Lucich says early reports from the field say the damage looks minimal. “Rain causes cracking on these cherries so that’s the main problem. You might get some softer cherries with the rain,” he says, noting that his early estimate is that 10-25 percent of the crop has been affected. “Anything that’s going to be harvested in the next couple of weeks may be more vulnerable because that’s when cherries are doing their biggest growth.”

For Delta Packing, aggressively picking cherries was how it was battling the rain. “But you can’t pick unripened cherries,” says Lucich. “You don’t want any white shoulder cherries or pink or fire-engine red ones.” Some growers, he notes, ran tractors through the orchards to blow water off the cherries, but that was only to be met with more rain.

This impact will be felt on what Lucich describes as a good, not overset crop. “This is a lighter than average crop in general, which isn’t bad,” he says. “When they’re set like this, the crop grows really big cherries in healthy orchards. But you put rain on a crop like that, it’s going to have a bigger impact on the overall percentage of what we’re going to have taken away from us.”

By Fresh Plaza