IRVINE, CA - Good morning, AndNowUKnow readers!
Today, I am bringing you some of the category and weather news from around the industry. Check back twice weekly to see where the rain is falling, the sun is shining, and everything in between.
CALIFORNIA RAINS – WHAT WILL BE AFFECTED?
Round one of the California winter storms in May came down pretty good yesterday in the northern part of the SJ Valley. Sacramento received 1.50” while Stockton received 1.00”. We don’t want to speculate about possible damage so please check with shippers to confirm. These regions are big suppliers of cherries and blueberries this time of year. At the southern end of the valley around Bakersfield and Fresno the rain totals were much less, under .10”.
Along the coast Salinas received .50” while Santa Maria received .25”. Strawberries and lettuce come from these regions.
Round two of these May storms will come ashore tomorrow bringing another .75” of rain to the Sacramento area and to the coastal regions while the southern end of the SJ valley will receive approximately .25”.
There is potentially more rain in the forecast next Tuesday and then another possible storm for Friday, May 24. We will keep you posted as things develop.
Another issue with these storms is the cooler weather. Bakersfield this time of year should be experiencing maximum temperatures in the 90°, but yesterday had a high of 67°. This region won’t see a maximum temperature of about 76° until next Saturday, the 25th. Sacramento had a maximum temperature of 58° yesterday, which is 30°s below normal for this time of year. These cooler temperatures might also affect summer crops from this region such as bell peppers, melons, grapes, etc. We will have to wait and see if harvest start dates get pushed back.
4th OF JULY SKIING IN CALIFORNIA
These storms are anticipated to bring several feet of new snow to the Sierra Nevada mountains. The accumulation numbers this season are astronomical. I wouldn’t doubt there will be skiing for the 4th in the mountains of California.
COOLER TEMPS IN THE DESERT SOUTHWEST
The same storms mentioned above are bringing cooler temperatures to the desert growing regions where summer crops are starting to harvest. The Imperial Valley of California will experience maximum temperatures in the upper 70°s and lower 80°s for the next ten days. This region should be in the mid 90°s heading into the second half of May. Look for possible slow down in crops from these regions.
GEORGIA HEATING UP
Georgia is currently experiencing perfect weather and will see a heat wave come through the area by next weekend. Right now, the peach state has high temperatures in the low 90°s, but starting Monday temperatures will begin to rise slightly every day, and by Friday the 24th the region will be above the 100° mark. Expect several days of temperatures above 100°. This same heat wave will extend north into the Carolinas. These temperatures might bring on the volume of blueberries.
PACIFIC NORTHWEST COOLDOWN
The Yakima and Wenatchee Valleys of Washington state are experiencing some rain and cooler temperatures at the moment. Yesterday, the valleys received somewhere between .25-.75” of rain.
Hood River, Oregon, which is a big region for cherries, is also experiencing unseasonably cooler temperatures and rain. The next five days have a good chance of daily rain with maximum temperatures in the 50°s. The normal high temperature for this time of year is 72°.
All this wet and cooler weather out west might make for an interesting season for cherries all the way through the summer.
NEW JERSEY
The Garden State is experiencing great weather for this time of year. Temperatures were a little on the cool side last week, but things have definitely turned around this week. With high temperatures ranging from the mid 70°s to the mid 80°s and low temperatures ranging from the mid 50°s to mid 60°s over the next 10 days, things are setting up nicely for a possible early season out of the region.
MORE LOCATIONS IN THE APP
With more growing locations coming into season every week around the country there is too much to cover in our weekly emails. Please download our free Weathermelon app and follow your commodity to see where weather may affect markets.
Thanks again, and we'll be back next week with another weather report!
FLORIDA - Michael Schadler of The Florida Tomato Exchange, recently put forth a statement on the May 10 proposal for a new Tomato Suspension Agreement.
“Sadly, the Mexican industry rejected the proposed terms and is now complaining that the Commerce Department’s proposal contained unlawful demands,” Schadler stated. “This, of course, is posturing because the Commerce Department doesn’t make unlawful proposals. Mexican tomato growers would be wise to remember that a suspension agreement is a negotiated settlement in exchange for the U.S. government not prosecuting a case in which Mexican exporters were found to be dumping tomatoes.”
The Florida Tomato Exchange believes that the May 10 proposal contained new provisions to eliminate the loopholes in the old agreement that permitted alleged cheating by Mexican exporters.
“We hope the Mexican industry will reconsider its opposition rather than resorting to litigation tactics that run the risk of collapsing the negotiations,” said Schadler.
Below are the The Florida Tomato’s Exchange’s understanding of the provision in question:
- The old agreement only allowed U.S. buyers to adjust prices based on condition defects; not quality defects. The Commerce Department’s proposal would allow price adjustments for both condition and quality, which would actually provide more rights to U.S. buyers of Mexican tomatoes. This would also level the playing field by making Mexican tomatoes subject to the same USDA standards as American tomatoes.
- The old agreement created an incentive for growers and distributors of Mexican tomatoes to game the agreement’s price adjustment system by shipping product they knew would not make USDA good delivery standards on arrival. The Commerce proposal would eliminate this loophole by preventing tomatoes that don’t pass USDA inspection from being used as price deductions against the cost of tomatoes that do pass inspection, thereby lowering the price below the suspension agreement minimums.
- As anyone in the tomato business knows, most U.S. supermarkets have even stricter receiving standards than USDA. It’s incorrect to think that this provision—which would only be applicable during times of significant oversupply—would have any impact on U.S. supermarkets or consumers.
“To reject an agreement based on this provision demonstrates clearly that Mexican growers used the old suspension agreement as cover to continue dumping tomatoes into the U.S. market during times of oversupply,” Schadler aruged.
He also included comments from several growers who hope that a reasonable suspension agreement can be obtained:
“The market window isn’t there like it used to be. This is 100 percent due to supply from Mexico,” stated Fred Leitz, a vine-ripened tomato grower in Michigan. “Our costs are going up and our prices are going down. I sold tomatoes cheaper last year than I’ve sold in probably 10 years.”
Tony DiMare, Vice President of DiMare Fresh, added, “Individual growers and packing operations are leaving the industry in Florida at an alarming rate. This is a result of Mexican tomatoes being dumped in the U.S. market at less than fair value. Grower/Shippers in California are also leaving the industry.”
“As someone who grows tomatoes in both the U.S. and Mexico, I’ve witnessed firsthand the failure of the suspension agreement over the last 20 years,” said Jon Esformes of Sunripe Certified Brands, which grows tomatoes in Virginia, Georgia, Florida, and Mexico. “The circumvention of the agreement hurts domestic farmers and frankly hurts Mexican growers who abide by both the letter and spirit of the law. Any new suspension agreement must have much tougher enforcement and inspection provisions.”
“Tomatoes from Mexico are priced so low that I am unable to price my products at levels that cover my increasing labor costs," stated Priya Singh of West Coast Tomato Growers.“Such a large price gap is stacked against not only us but all farmers in the United States.”
“We have the ability to double or triple our production to meet domestic demand," said Chad Ianneo of SunSelect Produce, a greenhouse grower of tomatoes-on-the-vine in Tehachapi, California. “Unfortunately, we have decided to suspend expansion due to low prices and the impact of increased Mexican imports.”
“Growing tomatoes in the U.S. has become more difficult each year," according to Toby Purse, Chief Farming Officer for Lipman Family Farms. “In Florida alone, we’ve gone from over 100 growers to around 20 in a short time. The smaller growers have been hurt the most. Cheap Mexican imports that are partly fueled by Mexican government subsidies have contributed to the decline of the U.S. tomato industry. We believe in free trade, as long as it is fair. This is not about higher reference prices; we just want an agreement that is honored by all. The lack of compliance by the Mexican growers in the previous agreement was the main reason for these negotiations. The domestic farmers have responded diligently to this process, including last week when the Mexican representatives walked away refusing to negotiate. Hopefully we can work together to get past this soon.”
For the latest developments on the suspension agreement, keep reading us here at AndNowUKnow.
WENATCHEE, WA - CMI Orchards has revealed it is teaming up with Stemilt Growers to grow and market the bi-colored Skylar Rae® brand cherries!
Bob Mast, President of CMI Orchards, says the company is thrilled to add Skylar Rae to its manifest and sees huge potential for continued growth with this high-flavor, exceptionally sweet, branded cherry.
“Stemilt has done an outstanding job developing the brand and market for Skylar Rae,” said Mast. “We wholeheartedly believe that an alliance between two of the industry’s powerhouse growers, CMI and Stemilt, will amplify the retail merchandising possibilities for this incredible cherry.”
According to a press release, in 2004, Skylar Rae cherries were discovered by the Toftness family, growing by chance in a Sweetheart cherry orchard in Wenatchee, Washington. With unknown parentage (DNA) and a distinctively different flavor profile and texture, this new cultivar was granted its own price look-up (PLU) number—only the third cherry variety with its own number—for easy distinction and sales segregation from dark sweet Red and bi-colored Rainier cherries.
“Having a unique PLU number gives retailers a spectacular opportunity to capture substantial sales with an additional value-added segment within the category during the highly profitable, short cherry season,” said Mast.
Owners of the Skylar Rae brand, the Toftness and Van Hoven families, described the process behind adding another sales agency to market their special cherries.
“We thought long and hard about the need to add additional sales power and CMI was absolutely the best choice for us to expand our program and leverage the fantastic work and consumer interest already generated by Stemilt,” said Troy Toftness. “With CMI’s experience marketing some of the very best global apple brands available today, bringing them in to help us meet growing retail demands for Skylar Rae cherries was a logical move.”
Mast expressed the company is honored to become part of a successful program.
“Skylar Rae cherries are not only super sweet, but they have a unique flavor and firmness that truly stands out and leaves customers begging for their return each season,” he said. “We are really excited to work with the Toftness and Van Hoven families, and Stemilt, to expand the market for Skylar Rae cherries.”
Skylar Rae cherries will be available from CMI Orchards starting mid-June 2019.
For updates on CMI Orchards and Stemilt Growers partnership with the Skylar Rae brand cherries program, keep tuning into AndNowUKnow.
OKLAHOMA CITY, OK; SURPRISE, AZ - Costco is doubling down on a commitment to growth, with the announcement of two new store openings. The stores, one in Oklahoma City, OK, and one in Surprise, AZ, are being welcomed with open arms by residents who have scrambled to get their Costco membership cards ahead of the openings. The Oklahoma City store has already opened to great fanfare, while the Surprise location is still in its planning stages.
The Oklahoma CIty location has already opened its doors and approximately 7,500 people have already signed up for memberships, according to Oklahoma News 9. This marks the first Costco in Oklahoma City—previously the closest location was in Tulsa, over 100 miles away.
The Arizona location, in Surprise, is still in its planning stages, though residents are already eager for the store to open. Set to take up 152,904 square feet over 16 acres, the store will feature all of its usual amenities, including a tire center, pharmacy, bakery, photo center, outdoor food court, hearing aid center, and optical center, according to documents obtained by The Arizona Republic. Costco expects to hire 200 to 250 full-time employees to man the store, though the timeline for the project, including the ground breaking or store opening date, has not yet been revealed.
Will the new stores’ profits and bump in membership help propel Costco to the top of the retail pile? AndNowUKnow will continue to report.
CALEXICO, CA - Altar Produce is expanding its sales team on both coasts as it continues to bolster its presence in the U.S. and Canada. Milton Johnson has been named Domestic Sales and will be joining the company’s new sales office in San Diego, California, while Andy Garcia is taking on the East Coast Sales Manager role and will be based out of Altar’s sales office in Miami, Florida.
“We are happy to welcome Milton and Andy to our sales team. They will help contribute to our growing success by gaining market share in the U.S. and Canada,” Chris Ramirez, President, shared with me. “With our 15 to 20 percent yearly growth rate with production out of Mexico in various commodities such as conventional and organic asparagus, green onions, Brussels sprouts, broccoli, blueberries, and more, Milton and Andy will be of great help.”
Milton brings with him to the Altar team over 20 years of purchasing experience from Peru, Chile, Mexico, and Argentina. He is well-versed in domestic and export sales, after working with GDM and CarbAmericas selling asparagus, berries, broccoli, grapes, citrus, and more.
“I am truly looking forward to being a part of this well-known, respected asparagus marketing company as well as becoming a valued contributor to Altar’s continued growth and expansion. Working for Altar is a dream come true,” Milton told me.
Andy has 31 years of experience. Prior to working with Altar Produce, he spent 12 years as Alpine Fresh’s Key Account Manager for USA/Canada Retail Accounts, in which he sold asparagus, blueberries, and other items, and 19 years with Ruskin Packaging and Lowell Distributors.
“I decided to join Altar because I felt like it would be a nice fit, and they showed confidence in me and my abilities,” Andy revealed to me. “My goals are to gain retail customer support and build relationships that I hope will generate sales.”
Altar Produce is one of the original Mexican asparagus grower-owned marketing companies established in the U.S., which Chris noted makes Altar unique because it means customers know they are talking to the grower.
“Our customers trust the Altar brand as the leader in the produce industry for asparagus. We market roughly 40 percent of Mexico’s asparagus production throughout the year and, as a result, we’ve seen continuous growth year after year,” Chris concluded.
Congratulations to Milton and Andy from the entire ANUK team!
PLANT CITY, FL - From demand to supply, it looks as if blackberries are booming. Wish Farms is hunkering down for a bountiful season, with more in the works to feed the growing hunger from consumers.
“From a demand perspective, we see no sign of the berry boom slowing down. Net growth for blackberries and raspberries has been higher compared to strawberries and blueberries because there is more room to grow,” shares Director of Blackberry and Raspberry Operations, Jose Saca.
Wish Farms moved into year-round shipping of the category in 2016. Now, the company grows and markets blackberries from Mexico and the Southeast United States, as well as Santa Maria, California.
“Berries are a major sales driver for retailers. Strawberries are the leader in consumer berry consumption, but now other berries are helping to expand the category. The popularity of strawberries and blueberries has helped propel the growth of the cane berry industry,” Amber Maloney, Director of Marketing, says.
It’s hard to believe that it’s only in the last decade that blackberries have been available at retail 52 weeks a year in our industry, but the Wish Farms team tells me it’s consumer demand that has helped drive production. When I ask about what’s next, Jose is excited to share about one variety in particular.
“Wish Farms is very excited about Primark 45, a primocane variety that produces flower and fruit on canes that grow in the same year allowing for a summer and fall crop. This variety was introduced by the University of Arkansas in 2009 by Dr. John Clark. The fruit has exceptional shipping quality, which is key for retail shelf-life,” he comments.
Primark 45, Jose explains, is consistently sweet, has good size and texture.
“Our Wish Farms blackberry program grows a combination of primocane and floricane varieties both domestically and abroad. We are growing Primark 45 at our company-owned farm in Santa Maria, California, and in the hills of Shelby, North Carolina,” he adds.
In 2018, Wish Farms completed a 7,500-square-foot cooler in Shelby, North Carolina, to manage its NC-Southeast blackberry program. Amber tells me that all Wish Farms blackberries in the region will ship from this facility after a thorough quality control inspection. Wish Farms will also ship from a facility in Homerville, GA, and its headquarters in Plant City, Florida.
“This new construction was essential for our operation as we continuously aim to provide premier products and customer service,” she concludes.
With a promising crop on the horizon, and plans in place for improved means to get them to market, AndNowUKnow will keep you up to date on this and other fresh produce developments.
U.S. & MEXICO - Negotiations continue between the Department of Commerce and Mexico tomato growers—the latter recently rejected the latest proposal from the former, stating that several of the demands from the Florida Tomato Exchange (FTE) are unlawful.
The Fresh Produce Association of the Americas (FPAA) said in a recent press release that it is no surprise to read that the FTE continues to ask for protections outside the scope of existing U.S. law, including asking for major changes that would effectively block imports of Mexican tomatoes by making it economically risky for U.S. buyers.
“The FPAA urges the Department of Commerce to continue to work with the Mexican growers of fresh tomatoes to create an updated Tomato Suspension Agreement that remains within the scope of the law. The FPAA acknowledges the difficult task of balancing an agreement that fairly addresses Florida concerns while not catering to Florida’s pressure to create an agreement that no U.S. supermarket could agree to, and which would effectively prevent supermarkets from purchasing Mexican tomatoes,” the association stated. It added that the livelihood of U.S. businesses across the supply chain hangs in the balance awaiting a return to a sensible, fair, stabilizing agreement.
FPAA members include U.S. importers and distributors of fresh tomatoes, which the association said continue to strive to bring the best tomatoes to the marketplace to meet the demands of consumers. While members work closely with retailers, foodservice companies, and other buyers to supply high-quality tomatoes that drive sales, it said hampered negotiations by “unlawful demands from a small group of politically connected Florida companies” leave U.S. consumers to continue to pay tomato taxes while U.S. companies face uncertainty in the marketplace.
In the interim, the Mexican growers have taken actions which they said seek to protect their legal rights in light of “several disappointing actions taken by the U.S. Commerce Department.”
The Mexican growers file for an injunction from a U.S. court
To stop Commerce's investigation from going forward and stop cash deposits from being imposed, the Mexican growers have taken legal action on the basis that Commerce's termination of the agreement was unlawful.
The Mexican growers shorten cash deposit period by 60 days
If the resumed investigation does go forward, the Department of Commerce must now conclude its dumping determination on July 21, per the press release, and the U.S. International Trade Commission must conclude its injury determination on September 4.
Will the two sides be able to strike a balance that all can walk away from feeling even better than previous Tomato Suspension Agreements? The Mexican growers said they remain committed to a new agreement, while the FPAA said it is confident that rational proposals from Commerce and the Mexican growers can result in an agreement that fairly addresses Florida concerns without unduly harming American shoppers and the entire U.S. tomato industry.
AndNowUKnow will report further as the matter develops.
CASTROVILLE, CA - Ocean Mist® Farms, provider of artichokes, Brussels sprouts, and more, recently announced the promotion of Joe Angelo from Organic Sales Manager to Sales Manager of both Ocean Mist Farms and Ocean Mist Organic brands. In his new role, Angelo will be focused on both daily sales activities and account management.
“Joe has proven himself to be a valuable member of the Ocean Mist Farms sales team,” said Rick Bravo, Vice President of Sales and Marketing, in a recent press release. “His appointment as Sales Manager over the Ocean Mist Farms and Ocean Mist Organic brands reflects his ability to lead teams and drive business growth.”
The press release noted that Angelo is a twelve-year veteran of the fresh produce industry. He joined Ocean Mist Farms in 2015, after prior experience as the District Sales and Commodity Manager for Dole Fresh Vegetables and Dole Berry Company. Over the last three years, Angelo has played an integral role in developing Ocean Mist Farms’ Organic Program, which has grown 300% since 2015. Part of the reason for this accomplishment stems from the company expanding both its organic customer base and product line, which now includes over 20 items.
Congratulations from all of us here at AndNowUKnow to Joe on his new role.
ONTARIO, CA - Cardenas Markets unveiled its new “Next Generation” concept at its new store in Las Vegas, which opened last week. This is the Hispanic grocer’s fifth store in that market and 56th overall. This store opening was the first of four new stores planned for 2019, each located in separate regions: Las Vegas, NV; Concord, CA; Tucson, AZ; and Victorville, CA.
The Next Generation concept, as outlined in a press release, will set the standard for all new stores moving forward. This new design intends to elevate the customer experience and increase its reach across all demographics.
“We are thrilled to introduce our new Keep Life Flavorful design to our customers across all of our existing markets, as well as new markets that we are considering,” said John Gomez, CEO.
The new design will transport customers to a familiar and welcoming place, accompanied by good music, friendly service, and a wide assortment of products ranging from national brands to authentic Mexican and Hispanic foods.
The press release also noted that, under the leadership of Bob Layne, SVP of Real Estate and Construction, Cardenas Markets is poised and prepared to deliver on its aggressive expansion plans.
Is this retailer poised to become the next big name in the game? AndNowUKnow will continue to report.
DEWITT, MI - As asparagus stalks shoot out of the ground like lilliputian trees, it’s clear that the dawn of the season for this popular veg is upon us. With spring quickly transitioning to summer, Michigan Asparagus is at the starting gate, ready for the pistol to go off. Asparagus season is brief—running from early May to the beginning of July—but lucrative, and as consumers clamor for local produce, the popularity of U.S.-grown asparagus only continues to, well, grow.
“Consumers today continue to show high affinity for locally grown products,” John Bakker, Executive Director for the Michigan Asparagus Advisory Board, explained. “This lucrative local foods market is expected to exceed $20 billion this year, according to market research firm Packaged Facts. According to Consumer Reports, nearly eight in ten American consumers would rather purchase products made in America than imported goods, and more than 60 percent of respondents say they would be willing to pay up to 10 percent more for domestic products.”
Only about two percent of U.S.-consumed asparagus is grown in the U.S., with Michigan and Washington as growing leaders, while California-grown asparagus has decreased as a market leader. In this changing growing landscape, Michigan Asparagus growers continue to fight for their place in the asparagus market, to answer the call for locally-grown produce.
Retailers love Michigan Asparagus because of the state’s central location, which ensures a high-quality product with longer shelf-life and less shrink. Asparagus harvested in Michigan is only two to three days old when it arrives at retail, making it fresher, with less food miles and a smaller environmental impact than imported asparagus. In contrast, imported asparagus delivered by boat or plane could be over 21 days old when it arrives in U.S. stores. Recognizing that water is a precious and limited resource, Michigan-grown asparagus is not irrigated in an effort to achieve sustainable farming practices and manage costs.
“Michigan asparagus is grown and shipped by over 100 farm families that make a difference in their local communities and generate an impact of more than 20,000 full- and part-time workers and over $30 million in farmgate dollars with more than $100 million in economic lift to Main Street USA,” said John. “We want to help retail and foodservice buyers understand the importance of buying local, U.S.-grown products when they are in season. Not only do their consumers want it, it’s better for the environment and local economies. We want to remind buyers that during the months of May and June Michigan asparagus is their best buy.”
With asparagus season on the horizon, retailers are encouraged to book their ads now and plan to run them from May 1 to June 30. Michigan Asparagus supports retailers with the “Straight to the Point” marketing campaign that is focused on delivering the facts about Michigan Asparagus—everything from seasonality and importance of locally-grown food, handling and storage, and, of course, cooking information. Retailers will also receive a weekly e-newsletter that details asparagus shipping and condition updates, along with a retail handling guide and social media toolkit for retail communication departments.
“Consumers and buyers tell us locally- and U.S.-grown is important, and we need to make sure they get the message,” John concluded. “We will have a series of consumer videos, heavy social media content, and even a consumer mat release expected to drive millions of print and online impressions.”
John concluded, “There is a place in the market for imported product, but it should never be when U.S. Grown products are fresh and available and make sense for the consumers we aim to please.”
For more fruit and veg news keep reading AndNowUKnow.