VALENCIA, CA - At Sunkist Growers’ 125th annual meeting, the citrus cooperative elected its Board of Directors. Russ Hanlin, President and CEO, also reviewed last season’s results and noted that Sunkist saw manageable-sized, high-quality crops that resulted in solid grower returns.
“We are privileged to serve over 2,000 grower members and are proud to provide the high-quality, healthy citrus they produce to customers and consumers around the globe,” Hanlin stated in a recent press release. “Our goal is to provide profitable returns through efficiencies in crop management along with synchronized sales and marketing strategies.”
Gerald Denni, Chairman of Sunkist’s Board of Directors, was re-elected at this meeting, and spoke of the company’s strategy in the years to come.
“Sunkist was founded on the principle that we are stronger together,” he said. “As a cooperative that has been in existence for just over 125 years, we have a wealth of history and knowledge that has been passed down for generations, and we will use those tools to address each season’s unique set of challenges.”
As Sunkist moves into its next season, AndNowUKnow will be here to report.
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.
RAIN COMING TO THE SOUTH
It appears the growing regions of Georgia and Northern Florida will see decent amounts of rain over the next five days.
The growing regions of Blackshear, Homerville, and Jessup in the state of Georgia can expect approximately 1.5” of total rainfall over the next five days. The heaviest rainfall will come today and Monday. Temperatures will be warm with highs in the mid-80°s and lows in the mid-60°s.
These regions are preparing for the start of blueberry harvest.
Further south in the state of Florida, all major growing regions will see rain starting this Sunday and continuing through next Tuesday. Regions from Tampa and north will see approximately 1.25” over the three days. The further south you go into Immokalee and Belle Glade the less the rain totals will be.
The weather should begin to dry out starting Wednesday of next week.
GOOD NEWS FOR CHERRY GROWERS
The big storm I had mentioned to you on Tuesday that was scheduled to hit the Sacramento area of California has been greatly downsized. At this time, the forecast is for rains up only .25” today with only a slight chance for tomorrow and again on Monday. We were not able to get in touch with Chris Zanobini of Cal Cherry, as he is at CPMA this week and was unavailable. Hopefully we can get ahold of him on Monday.
This is the second storm in a row that has been downgraded in California in the last two weeks. Maybe these late season storms are not as reliable to predict as mid-winter storms due to changing seasons. If any weather people have an opinion, please feel free to share.
STRAWBERRY CORRECTION
On Tuesday, I mentioned the strawberry season was winding down in Florida, Mexico, and Oxnard. This information I gathered from the USDA Shipping Points Production Trends, based on production numbers week over week and comments from the USDA. This information concerning Oxnard is not correct, in fact their season will continue into June.
Carolyn O’Donnell, the Communications Director for the California Strawberry Commission, was kind enough to contact us and make us aware of our mistake. Carolyn said although it is true numbers are down this season due to the amount of rains Oxnard has seen this winter, production should begin to climb a bit as the weather warms up and late varieties kick into production. Carolyn said Oxnard will have good volumes and quality for the next two months.
Thank you, Carolyn, for reaching out to us and setting the record straight.
SHORT REPORT THIS WEEK
I apologize for the short report today. I am out of town for personal things and didn’t have time to write more information, but wanted to follow up on a couple of these issues from Tuesday.
Thank you again for reading our articles and have a great weekend. We will have a new report next Tuesday.
RANCHO CORDOVA, CA - After more than 15 years with the company, Phil Fendyan, Renaissance Food Group's (RFG) Senior Vice President of Produce Sales, will retire in April.
“On behalf of Renaissance Food Group, I’d like to express my gratitude to Phil for his many contributions and leadership,” said Jim Gibson, President. “Phil’s expertise and enthusiasm for produce will be greatly missed; however, we wish him all the best in his retirement.”
Fendyan worked as VP of Sales and Marketing during his tenure with RFG before being promoted to his most recent position, SVP of Sales, Produce. According to the company’s press release, he was deeply involved from the beginning, growing RFG’s customer base and influencing many prosperous product line evolutions and creations.
Fendyan has had a long 40-year career, which started in the produce department at Safeway in San Francisco. He was then promoted to Produce Manager. Fendyan grew with the company, holding titles of Buyer, Senior Buyer, Supply and Category Manager, as well as various other management positions.
After 24 years with Safeway, Fendyan joined Webvan—a start-up home delivery grocery business—as the National Produce Director, where he launched and executed national programs. Following his tenure at Webvan, Fendyan worked as VP of Sales at Club Fresh, a supplier of fresh-cut fruit in the Sacramento area. He joined RFG in 2004.
Fendyan received RFG’s prestigious Joe Rohrer Person of the Year award in 2016.
The company said he had the ability to forecast trends, including the fresh-cut processing of fruit and vegetables, the rise in demand for organic produce, and online produce ordering systems. This made Fendyan a “pioneer in many areas of the industry.”
Fendyan’s official date of retirement is April 5th, but he will remain on special assignment until July 19th.
Happy retirement to Phil Fendyan from the AndNowUKnow team!
MONTEREY, CA - It’s time to put organics front-and-center as the produce sales-driving star that it is. That’s why the industry is so excited for the fourth annual The Organic Produce Summit, July 10-11 in Monterey, CA. While there is much to look forward to, one of the standouts is the Retailer Roundtable that will consist of fresh produce leaders from three of the country’s most progressive retail and online grocery operations.
“While the grocery industry continues to evolve to meet the growing needs of consumers, we are excited for OPS attendees to hear from three prominent and progressive leaders offering organic fresh produce to consumers across the nation, “ said Susan Canales, President of the Organic Produce Summit. “The Retailer Roundtable will dive into organic produce category strategies, product mix, and how technology is changing the game. This promises to be an insightful and informative panel discussion from leaders of major East and West Coast retailers and the leading online organic retailer exclusively focused on organic fresh produce and ingredients.”
Tonya Antle, Co-Founder of the Organic Produce Network (OPN) will act as moderator for the Retailer Roundtable that will include panelists Don Barnett, Chief Operating Officer for Sun Basket; Greg Corrigan, Senior Director of Produce and Floral for Raley’s; and Vic Savanello, Vice President of Produce for The Fresh Market.
The roundtable will include candid commentary and thought-provoking discussion, as well as a focus on how each retailer incorporates organic fresh produce in their operations, along with their analysis on the current challenges, opportunities, and future of the multi-billion-dollar organic fresh produce industry.
The Retailer Roundtable is just one part of the extensive education program at OPS 2019. The summit will also feature two keynote presentations with award-winning chef and author Dan Barber, and organic consumer activist Robyn O’Brien. There will also be a series of six educational sessions that will focus on a number of topics and subject matter related to the organic fresh produce industry.
Other educational sessions at OPS 2019 will include:
- Organic Sales Analysis and the Organic Consumer
- What Lies Ahead for Wholesalers of Organic Produce?
- Tackling Food Waste—Good for the Planet and the Bottom Line
- The Future of Organic Meals at Retail
- International Insights and Trends on Organic Produce
- International Organic Produce Supply
And that’s not all—a gala opening night reception, a selection of field tours for retailers and buyers, and a trade show featuring 148 organic fresh produce producers and processors from across the country and the globe.
Registration for OPS 2019 is currently underway at the event's website here.
WASHINGTON, DC - Last week, on March 27, 2019, U.S. Customs and Border Protection (CBP) Commissioner Kevin McAleenan issued a statement detailing plans to reassign as many as 750 CBP officers from ports of entry along the U.S.-Mexico border to assist U.S. Border Patrol with the processing of migrant crossings along the border. The statement also noted the inevitable “slowdown in the processing of trade” that would occur—a slowdown that, many note, will hit fresh produce importers and exporters harshly because of the perishable nature of their products and the complex interconnectivity of the supply chain.
Both the Produce Marketing Association (PMA) and the United Fresh Produce Association issued statements urging the Trump administration to reconsider the move, and dial back the bellicose language with which the President had been warning of a potential total shutdown of the U.S.-Mexico border. This morning, the President announced plans to give Mexico a "one-year warning," delaying any potential border shutdown, but tweets sent late last week have created a sense of uncertainty.
“CBP will be forced to close some processing lanes, potentially in the ports of El Paso, Laredo, Tucson, and San Diego. In addition, officials at the port in Nogales, AZ, have announced closing commercial border traffic on Sundays,” United Fresh’s statement noted. “These steps will cause significant harm to growers, wholesale distributors, transportation companies, grocery stores, restaurants, and most importantly, U.S. consumers. On behalf of the fresh produce industry and the broad cross-section of members we represent, we urge the Administration to reconsider these steps…”
I spoke with Dante Galleazzi, President and CEO of the Texas International Produce Association (TIPA), to learn more about the situation on the ground.
“So far, I have only heard of the El Paso Bridge suspending its weekend service. All the other bridges are open during their normal days and normal hours, but what’s being affected is their capacity to process trucks,” Galleazzi told me. “That’s to say if the average process takes two to three hours, that process is elongated now because there are few agents working to ensure the flow of traffic moves quickly.”
Galleazzi noted that the timing of these slowdowns couldn’t be worse: “This is going to impact us, particularly in fresh produce because we’re coming up on a holiday, with Semana Santa in Mexico and Easter in the U.S. Typically, around this time you start to see volume picking up. As volume picks up due to holiday traffic, typically we see delays in crossing, but as that picks up this year, those delays in crossing are just going to be amplified across the entire border—from Texas all the way to California.”
The real consequences of these delays, though, it seems, will be economical. United Fresh cited the San Diego Association of Governments and California Department of Transportation who “indicated that even an extra 15 minutes of wait time could generate as much as $1 billion in lost productivity and 134,000 lost in jobs annually.”
“Texas crosses seven billion dollars worth of fresh produce every year. That means you’ve got this massive supply chain that is involved with this process,” Galleazzi added. “When you start having these protracted delays, you’re going to have a lot of costs that are going to go from the bottom all the way to the top, and most of the folks at the bottom of the supply chain are going to feel it immediately.”
Produce operators working along the U.S.-Mexico border voiced their displeasure with the reassignment of CBP officers and the subsequent slowdown of commercial traffic.
“Anything that hampers international trade is probably not for the benefit of the country on the whole, regardless of your stated goal. You’re going to be using a hatchet where you need a scalpel, and there will be negative, unintended consequences,” Matt Mandel, VP of Operations for SunFed® told me. “One of those unintended consequences is going to be the deterioration of trade with one of the U.S.’s top three trading partners. Regardless of security outcomes that President Trump is trying to achieve, hampering international trade is just not good business. Realistically, the person that will lose out in the long run is the American consumer. Anything that disrupts the balance between supply and demand is going to harm the consumer. And let’s face it—Mexico is going to feel the sting, but the U.S. is going to feel the sting just as much; to say that Mexico is going to be on the losing end of this is just short-sighted.”
Bret Erickson, SVP Business Affairs for J&D Produce, told me that, as of April 3, J&D had yet to experience significant delays, but anticipated deleterious effects in the future.
“We are very concerned with the reallocation of CBP staff away from their normal cargo processing duties to now being focused on border security efforts," said Bret. "We are closely watching the situation as it develops, communicating with our customers, and leaning on our state and national trade associations and our Texas delegation to not only keep us informed but actively work to prevent a slow down in our business operations. Although we have not yet experienced any crossing delays, we are bracing for potential delays of our imported commodities. We are in constant communication with our customers, keeping them up to date with timelines as we know them as well as briefing our customers on the specifics of what is occurring at the Pharr bridge.”
On April 3, a CPB/Trade meeting update from the Laredo Field Office—the office responsible for overseeing eight ports of entry from Brownsville, TX, to Del Rio, TX—noted that 15-20 percent of the office's staffers had been reassigned. The update outlined the following bullets:
- Due to short staff, some of bridge lanes are closed
- World Trade Bridge – out of 15 lanes, 6 are open for regular cargo and 3 for FAST
- Colombia Bridge – 2 regular and 1 FAST lane are open
- World Trade Bridge – usually processes 8,000 northbound daily, they are currently processing 5,000. 3,000 trailers backed up in Mexico
- Colombia Bridge – usually processes 1,700 northbound daily, they are currently processing 1,000. 700 trailers backed up in Mexico
The report also affirmed that the Mariposa Commercial Facility in the port of Nogales, AZ, and Eagle Pass, TX, have both already decided to close during weekends, and Laredo has considered the option, though it currently has no plans to do so.
“The average time of a truck crossing is four hours from when the trailer arrives at the Mexican toll booth to the CBP primary lane. That does not count the line on the Mexican side, which can be a couple of miles long. This is being measured manually by CBP at all ports” the update notes, adding: “No need to port shop. All southern ports are working the same. They are being consistent; small ports have even less personnel.”
Delays are already taking effect, with serious economic repercussions. And the threat of a complete shutdown bodes even worse ramifications. President Trump has reported backed away from the threat of a complete and immediate shutdown, though he still considers a border closure a viable option.
“I will do it. You know I will do it, I don't play games,” President Trump told reporters at the White House, according to a Washington Examiner report. “So we're doing it to stop people. We'll give them a one-year warning, and if the drugs don't stop or largely stop, we're going to put tariffs on Mexico and products, in particular cars...If that doesn't stop the drugs, we close the border.”
Those in the industry that I spoke with were less sold on the viability of a border closure.
“If the border were to have a full closure it would be absolutely disastrous,” said Galeazzi, noting that Mexico supplies 90 percent of the avocados, mangos, and limes U.S. consumers enjoy, and supply of each of those items would dwindle to nothing in a matter of weeks.
Tommy Wilkins, Director of Sales, Grow Farms Texas, and member of the Fruit and Vegetable Industry Advisory Committee, added: “Closing the border for any time would be incredibly detrimental to everyone. From producers to consumers it is costly. We hope this is not a reality.”
“The concept of closing the border is absurd,” added Erickson. “It would create a wave of economic turbulence across the entire country, and it would undoubtedly result in U.S. business closures and job losses. We are confident that cooler heads will prevail and that the Trump Administration will not put U.S. businesses at risk by shutting down the border. International trade is so critical to the U.S. economy, it’s absolutely critical that our borders remain open and that we are adequately staffing our ports of entry to the point that the flow of trade can continue uninterrupted, the U.S. economy and U.S. consumers depend on it.”
For more on the U.S.-Mexico border as the situation evolves, keep reading AndNowUKnow.
MONTREAL, CANADA - Exciting things are happening at this year’s Canadian Produce Marketing Association (CPMA) Convention and Tradeshow in Montreal, Canada. SUNSET recently announced that its Organic Angel Sweet® won the Best Organic Product Award. Organic Angel Sweet, showcased in SUNSET’s new backyard-compostable packaging, was one of 53 products to compete in the New Product Showcase—which was judged by a panel of industry leaders.
“There has been tremendous customer and retailer response since we launched Organic Angel Sweet in 2018, and we’re honored to receive this recognition from our peers,” said Paul Mastronardi, President, CEO, and fourth-generation family member to lead Mastronardi Produce.
According to a press release, Organic Angel Sweet—which is greenhouse-grown and born from the world’s sweetest grape tomatoes—delivers the same exceptional flavor that consumers expect of SUNSET snacking tomatoes. And like all SUNSET products, Organic Angel Sweet tomatoes are Non-GMO Project Verified.
“SUNSET continues to be the leading driver of growth in the snacking category, and this new offering generates excitement within the growing organic segment,” said Nicole Balderas, Vice President, Marketing.
This award follows in the footsteps of the product’s conventional counterpart, which has received several accolades, including Superior Taste Award form the International Taste and Quality Institute.
Congratulations from all of us here at AndNowUKnow to the SUNSET team!
ORLANDO, FL - Innovation abounds at produce shows; it’s almost as though we as an industry don’t know how to stop being so darn creative! I spoke with Giorgio Fresh’s Vice President of Sales, Northeast Region, Doug Stewart, to learn more about the innovative mushroom products the company is serving up.
“We have a Portabella Jerky, called Savory Wild™ and, as we heard at the luncheon this morning, people are looking for a plant-based item. This is a delicious mushroom jerky, and we have three different flavors, which we’re getting very nice experience with at many different retailers,” Doug said.
Available in Roasted Garlic & Black Pepper, Sesame, Ginger & Korean Chili, and Sweet Balsamic & Golden Fig, this mushroom jerky brings snacking to a whole new level. You may have seen me munching on some out on the show floor!
Giorgio was also showcasing its stuffed line of mushrooms, which come in a microwaveable and ovenable tray. You only have to wrap, heat, and enjoy! The line is available in three flavors: Artichoke, Spinach & Cheese; Fiesta Cheese; and Cheese & Imitation Bacon Bit.
To end, Doug told me that Giorgio also debuted a new label on its organic and conventional mushrooms. So much innovation, so little time!
To see the whole interview, watch our brief video above.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has cited Moza LLC (Moza), Moscow, Pennslyvania, for failing to pay for produce.
According to a press release, the company failed to pay $333,328 to eight sellers for produce that was purchased, received and accepted in interstate and foreign commerce from July 2016 to June 2017. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Moza cannot operate in the produce industry until Nov. 24, 2020, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, David M. Martin, may not be employed by or affiliated with any PACA licensee until Nov. 24, 2019, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. Our experts also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
YAKIMA, WA - No surprise here, but apples and pears continue to reign as one of our favorite snacks here in the States! Following National Snack Month (February), Domex Superfresh Growers® noticed that sales were up for both categories, with positive growth for core varieties and organics across the board. The grower is also celebrating another month of upward momentum for its Autumn Glory® apple, reporting sales were up more than 400 percent.
“The excitement around Autumn Glory growth is intoxicating. We have been fielding consumer call after call asking about Autumn Glory, and ‘where can I find the caramel and cinnamon apples?’ One woman called me last week and said that her grocery store ran out of Autumn Glory. She watched another shopper take the last five bags, and she commented that she should have jumped on her and stolen one herself! The Autumn Glory craze is truly contagious!” said Catherine Gipe-Stewart, Communications Manager.
According to a press release, Autumn Glory apples replaced other varieties on store shelves, rising 327 percent in dollars and 436 percent in volume. This places the apple at #15 in dollar sales.
Other runners up for the month of February included Gala (+2.9%), Honeycrisp (+2.6%), and Granny Smith (+1.8%), all of which maintained category growth. Specifically, Honeycrisp and Gala alone represented nearly half of the apple dollar sales in February, with Gala pulling in the top volume at 51.5 million pounds and dollars up $70.2 million, and Honeycrisp leading apple dollars at $85.7 million (up 2.6% from last year) and volume at 33.7 million pounds (up 7.2%). Other proprietary varieties were in double digit decline.
In addition, organic apple dollars were up 5.2 percent and volume was up 7.6 percent. Gala and Honeycrisp again led the pack, representing more than half of organic apple dollars. Gala led at $13.1 million and Honeycrisp followed at $9 million.
Conventional pears also experienced a good month; the same cannot be said about organic pears, however. Conventional Bartlett pears led the category at $14 million (growing 23.7%), with Anjou and Bosc following suit. Organic pears, on the other hand, dropped 5.4 percent in dollars and 7 percent in volume, with only the organic Anjou variety guiding the category toward growth after accounting for 67 percent of the category and 6 percent of growth.
For more fresh produce news like this, keep checking back with AndNowUKnow.
WATSONVILLE, CA - California Giant Berry Farms is a month out from the deadline to select chef finalists to compete in the 2nd annual Chef Invitational. May 1, 2019 is the deadline, and finalists will be announced May 10, 2019.
The event will take place on June 25, 2019 at the Tehama Golf Club in Monterey, CA. The Chef Invitational will present a Foodie Forum the morning of the event to unite foodservice partners, Chef finalists, California Giant Influencers, and special guests to share their industry experience and spark interactive conversation.
“We’re really looking forward to the addition of the Foodie Forum this year,” said Director of Foodservice, Tom Smith. “Our blogger and brand ambassador Ashley from Fit Mitten Kitchen will bring a relatable, attainable approach to cooking, and can communicate hacks and at-home tips for the everyday consumer to be able to recreate the chef inspired recipes at home.”
According to the company’s press release, the berry company has some fresh, new features it is adding this year, along with asking chefs to bring their very best berry-inspired entrées and desserts. The culinary competition and experience is meant to strengthen relationships and cultivate new partnerships. This will provide a better understanding into how California Giant can continue to build its brand and loyalty with this important audience, fresh trends, and berry trends.
Restaurant owner of Carmel’s Basil Seasonal Dining and Seaside’s Gusto Handcrafted Pasta and Pizza, Denis Boaro, will also be returning to the 2nd annual event as a judge and forum speaker. He will share his industry experience and discuss partnership development.
“The 1st annual Chef Invitational, served as an introduction to Denis' restaurant and his industry expertise which led to the opportunity to hit the ground running, and a joint partnership and friendship," explained Smith. "Denis utilizes California Giant berries on new menu items and at events, incorporates them into creative, savory dishes, and mixes ingredients and flavors that accent our berries in ways consumers have never seen before. Denis’ craft and innovation when it comes to flavor and berry utilization on the menu will surely spark creative collaboration around the room.”
Culinary tastings will be unlimited with bites and samples hand-made by Chef finalists for attendees to look at and appreciate as the Chef Invitational competition commences. The local sponsors will be showcasing and sampling berry-pairing offerings around the room as well. As reported by the press release, guests can savor happy hour courtesy of returning local sponsors Odonata Wines and Alfaro Family Vineyard Wines, Lula’s Chocolates, California Giant mixed berries, a California Giant raspberry beer collaboration with Santa Cruz Mountain Brewery, and a bunch of cheeses and meats to pair for an afternoon of bites, beverages, and entertainment.
Local radio and television personality, executive chef, and owner of Baker’s Bacon, Chef Tony Baker of Montrio Bistro, will emcee the competition this year, accompany the group on field tours and the Foodie Forum, and host the Chef’s Welcome Dinner.
“I’m really excited to be partnering with California Giant and participating in this year’s Chef Invitational event from start to finish,” said Baker. “It’s a great way to collaborate, network, and form new relationships and partnerships within the foodservice industry, and I look forward to spending a few days with the talented team of chef finalists.”
Joining the group during the 3-day event is 2018 Chef Invitational Top Chef Luis Reyes of Sysco West-Coast Florida, who will present the award to the incoming 2019 Chef Invitational Top Chef.
For updates on the 2nd annual Chef Invitational, keep reading AndNowUKnow.