WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- K & D Produce Inc., operating out of New York, New York, for failing to pay a $20,985 award in favor of a New York seller. As of the issuance date of the reparation order, Bing Qia Chen was listed as the officer, director and major stockholder of the business.
- Get Fresh Produce Distributors Inc., operating out of Los Angeles, California, for failing to pay a $1,684 award in favor of an Arizona seller. As of the issuance date of the reparation order, Zabdi Reyes was listed as the officer, director and major stockholder of the business.
- E Cortez Corporation, operating out of Nipomo, California, for failing to pay an $11,885 award in favor of a California seller. As of the issuance date of the reparation order, Emilio Cortez was listed as the officer, director and major stockholder of the business.
The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), 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 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
SEATTLE, WA - Amazon has kept up a consistent string of innovative growth, and is pinpointing the realms of freight as its newest focal point for strategy. The online retailer announced that it will invest in a worldwide cargo hub in Kentucky, to further its growing transportation needs.
Amazon’s Hebron, Kentucky-based hub will help support its growing fleet of planes servicing Prime Air. USA Today reported that this move is a $1.49 billion investment into the company’s freight endeavors, and will create over 2,700 jobs.
“As we considered places for the long-term home for our air hub operations, Hebron quickly rose to the top of the list with a large, skilled workforce, centralized location with great connectivity to our nearby fulfillment locations, and an excellent quality of living for employees. We feel strongly that with these qualities as a place to do business, our investments will support Amazon and customers well into the future,” said Dave Clark, Amazon Senior Vice President of Worldwide Operations, according to a press release. “We couldn’t be more excited to add 2,000-plus Amazon employees to join the more than 10,000 who work with us today across our robust operations in Kentucky.”
Amazon chose Cincinnati/Northern Kentucky International Airport over the Wilmington Air Park in Central Ohio, but has not yet stated when it will break ground. The online e-commerce company has entered into a 50-year lease with the airport.
As part of the investment, Amazon will build several facilities on around 920 acres of land. This will include a 3 million-sq.-ft. sorting facility, a 350,000-sq.-ft. loading dock, and enough ramp space to house 100 cargo jets. The company currently leases 40 planes to service Amazon Prime members.
"This is a once-in-a-lifetime deal," Airport CEO Candace McGraw said, according to USA Today. "It's truly transformational.”
The Wall Street Journal reported that the hub will help Amazon increase its own responsibilities for shipping, as its current global capacities are straining its shipping partners. This news comes on the heels of a recent foray into sea freight shipping, as well.
Will these shipping-focused strategies move Amazon and its products further into consumer homes? AndNowUKnow will report as the news unfolds.
MCLEAN, VA - In the world of agriculture, land is lifeblood. And, in these times, the industry landscape is changing, both literally and figuratively. With fewer younger generations entering the trade to take over family farms, and shifting demand, the concept of what to do with land can be challenging for farmers.
Enter Gladstone Land Corporation, the real estate investment trust providing options to farmers looking for a leg up. I connected with David Gladstone, CEO and President, to discuss the options and benefits that the company offers to farmers.
“We just want to buy a good farm, lease it to a good farmer, and hope the farm is leased to the same farmer for the next 20 years,” David tells me. “We are striving to build the premier farmland real estate company focused on the ownership of high-quality farms and farm-related properties. We are not farmers, so we are not in competition with farmers. We want to lease the farms on a triple-net basis to farmer tenants with a strong operating history and deep farming resources. All our farms have abundant water sources and are currently 100% occupied.”
Since David founded Gladstone Land Corporation in 2003, it has been popping up on the industry’s radar through the purchase of millions of dollars in farmland across the nation. With a focus on fresh produce and nut orchards, the company purchases land—giving farmers a cash injection from the sale—then leases it so that the farmer can free up capital.
So what does Gladstone Land Corporation offer to farmers?
- A long-term sale leaseback transaction, allowing farmers to free up capital they have in their farmland to use to improve farming operations with new equipment or buildings.
- Outright buying land that farmers would like to farm, but not own.
- A cash purchase while retaining the existing tenant or finding a new one if needed.
The company is focused on building lasting relationships with tenant farmers. David tells me the goal is to establish tenants who will continue farming the land for a long time, and that the capital from these transactions affords them many opportunities, including the ability to:
- Buy new farms, buildings, and land.
- Purchase new equipment.
- Pay off debts and mortgages.
- Pass an existing farm to the next generation.
- Put the equity value to other uses.
Gladstone’s business model hinges on being able to borrow money at lower rates than it is being leased so that its shareholders get the difference between what they get in from the farmer’s rent and what the company has to pay the lending institution in interest for helping them buy the land. David also mentions that the company can buy farms for stock in a tax-free exchange for those who want to keep the income coming in and not have to pay taxes immediately on any capital gains from selling the farm to Gladstone Land.
“We have built strong relationships with our tenants, sellers, and land brokers,” David tells me. “Many farmers are worried that if they do not own the land they will not be able to farm it, but we want the same farmer to lease our land for very long periods and farm the land as long as they wish. Our acquisitions process is very straightforward, and farmers continue to partner with us for their real estate needs.”
David’s roots are in agriculture, having been the former Chairman of Coastal Berry Company, producing strawberries out of Watsonville, CA. Since launching the company 14 years ago, the company has acquired farms in California, Oregon, Arizona, Colorado, Nebraska, Michigan, and Florida—using a strategic slow-and-steady approach.
What’s on the horizon? The company has its eyes on Georgia, South Carolina, North Carolina, Virginia, Washington, and New Jersey as it continues to expand across the nation.
Continue to check in with AndNowUKnow as we cover farmland acquisitions across the country.
MENLO PARK, CA - The produce industry is getting an injection of innovation at the latest event put on by SVG Partners. Today, the THRIVE AgTech Innovation Forum is bringing together executives to focus on the ways tech is impacting the ways fresh produce is grown, now, and into the future. The event features speakers such as Bruce Taylor, Kevin Murphy, and Michael Teel and is working to forge new partnerships across technology and agriculture.
“California farmers are collaborating to accelerate technology development and deployment. The Thrive AgTech Innovation Forum helps nurture and speed this process of discovery,” said Chairman and CEO, Bruce Taylor, Taylor Farms, according to a press release.
The forum is bringing together entrepreneurs, technologists, investors, corporates, and farmers with featured speakers such as:
- Bruce Taylor, Chairman and CEO, Taylor Farms
- Michael Teel, CEO, Raley’s
- Kevin Murphy, CEO, Driscoll’s Berries
- Mike Macrie, CIO, Land O’Lakes
- Karen Caplan, CEO, Frieda’s Specialty Produce
- Sean O’Sullivan, Managing Partner, SOSV, Food-X
- Saida Ruscitto, Product & New Business Innovation IoT, Verizon Wireless
- George Kellerman, COO, General Partner, Yamaha Motor Ventures & Laboratory Silicon Valley.
The forum features the top 50 most innovative companies exemplifying the best in agriculture focused innovation with 11 companies presenting their solutions ranging across big data & analytics, biotechnology, cloud services, connected devices, robotics & automation, and supply chain & infrastructure:
- Agronomic Technology Corp. | Cloud-based recommendation platform for farmers and agronomists
- BrightFarms | Pioneering the future of local, low-impact farming
- Strider | Precision agriculture platform for pest control
- Resson | Bioinformatics and data analytics company, delivering customized agriculture solutions for large corporate clients
- MagGrow | Magnetic Spraying System
- PrecisionHawk | Fully autonomous UAV performing low altitude aerial data collection and subsequent data management and analysis
- Advanced Animal Diagnostics | Developing diagnostic products to cure on-farm animal diseases
- Granular | Software and analytics platform that helps farmers operate more efficiently and make better business decisions
- AGERpoint | Redefining data acquisition, analysis, and translation for growers
- Soft Robotics Inc. | Opening new markets to automation through the application and commercialization of proprietary soft robotics technology
- Caribou Biosciences | Technology-based biotechnology solutions for cellular engineering and analysis based on the CRISPR-Cas9 technology platform
“The 2017 THRIVE AgTech Forum explores how leaders today across agriculture- from the field through the supply chain to the consumer- are working new technologies into our food system to achieve greater efficiencies, environmental stewardship, and consumer safety,” said John Hartnett, Founder & CEO, SVG Partners.
Since 2014, SVG Partner’s unique agtech accelerator platform, THRIVE, has supported seed and scaling agtech startups by providing well-resourced mentors from leading agriculture and technology companies, deployment, and investment opportunities. What began with the vision of transforming the city of Salinas into a world renowned agtech hub has flourished to become an ecosystem of over 800 agtech startups, mentors and corporate partners.
“The Thrive AgTech Innovation Forum provides the most diverse ecosystem of any AgTech event globally. This event is the only place where all of the strategic stakeholders in AgTech: venture capital, private equity, innovators, universities, startups, established agribusiness companies, corporate farms, distributors and growers can get together and discuss the future of agriculture. Through the fostering of these connections, we are able to very quickly see the progress of innovation, whether it is ready to be applied to our crops and markets, and determine whether we can partner with others to bring these solutions to our member-retailers and America’s farmers in a more expedient way” said Mike Macrie, Chief Information Officer, Land O’Lakes.
The THRIVE AgTech Innovation Forum is presented by SVG Partners in collaboration with partners Taylor Farms, Land O’Lakes, the City of Salinas, Wells Fargo, Western Growers Association, Panasonic, Verizon Wireless, Yamaha Motor Ventures and Laboratory Silicon Valley, Driscoll’s Berries, JV Smith, Raley’s, Softvision and Hahn Winery. Follow along by using the hashtag #THRIVEForum @THRIVEAgTech on Twitter.
YAKIMA, WA - Snacking is key, and as the trend grows considerably across demographics and age groups, companies are answering the call with innovative items for the fresh produce department. Take the ROCKIT™ apple. Grown by Borton Fruit, in partnership with Chelan Fresh, this new and exciting miniature apple variety packs big flavor and a convenient size.
Eric Borton, VP of International Sales & Marketing for Borton Fruit, joins me to share the 411 on the ROCKIT™ apple and how retailers can jump on board with this popular new fruit.
“ROCKIT™ apples are known for their naturally petite stature and distinctively fresh crunch, making ROCKIT™ Apples the perfect snack. The unique small size and incredibly sweet taste makes it the healthy option that children will love, and is equally ideal for busy adults and athletes,” Eric tells me. “We feel we have a real winner with the ROCKIT™ apple. The unique characteristics paired with its innovative and convenient packaging, provide the ability for retailers to tap into a new segment of consumer eating when compared to other traditional apple varieties.”
Retailers can merchandise the ROCKIT™ in a wide variety of ways, even taking it out of the produce department. While Eric tells me that it is a great produce item, it’s much more than that–challenging the traditional thinking for the snack food market and produce market. It also allows for access into the convenient store sector, where fresh whole fruit can be hard to find.
ROCKIT™ was developed in New Zealand and is now commercially licensed to a number of apple growing countries around the globe. In North America, Borton Fruit and Chelan Fresh hold the exclusive licensing to grow market and distribute the ROCKIT™ apple.
This is Borton’s first year of production for ROCKIT™ apples in Washington State. The company began packing this season’s ROCKIT™ production earlier in January.
“We plan to have domestically produced product available into April. With this being our first scalable harvest of ROCKIT™ Apples, we are targeting approximately 100,000 tube units for packing and marketing during this time frame,” Eric says.
While the fruit is from young trees, the eating quality is outstanding and the company is really excited with how well the fruit is eating: crunchy, sweet, and full of flavor. Borton also has an import program in the summer months. The domestically-grown ROCKIT™ apples from Borton Fruit are gown in the Yakima Valley of Washington State. ROCKIT™ apples are also grown by Chelan Fresh in the growing area of Chelan, WA.
“We will also be working with our partners in New Zealand to import ROCKIT™ apples in the off season to complement our USA grown fruit,” he adds.
Looking for some quick highlights of the variety? Here you go:
- Crunchy, sweet, and rich taste
- Grown to be the perfect snack size
- Innovative and convenient packaging and brand design
- Stable shelf life – remains fresh longer
- Presents an opportunity to capture healthy snacking
- Alternative merchandising opportunities to drive apple sales in a non-traditional way.
The ROCKIT™ is currently packaged and marketed in recyclable plastic tube units that range from three to five apples per tube. The packaging protects the fruit and offers a convenient on-the-go snack. The tube packaging is also great for brand positioning of ROCKIT™ and provides for unique ways to merchandise the fruit. Borton ships nationwide and internationally, but is mainly focusing this seasons USA grown crop on distributing in the USA. ROCKIT™ apples are being distributed extensively internationally as well by the Rockit Trading Company of New Zealand and also from other licensed growers from various countries worldwide.
NUNHEIM, THE NETHERLANDS - Looking to supplant cookies and chips and bring fresh produce to snackers everywhere, the vegetable seed division of Bayer recently launched the Minigustos® label—targeting tasty, crunchy, and attractive snack vegetables.
The brand’s first offering, the Minigustos cucumber is shaping up to be an ideal alternative to unhealthy snack options—a superior snack vegetable.
“Our trial growers and category managers of different retailers around the world tell us they have never tasted such a crunchy snack cucumber,” says Anne Jancic, Marketing Specialist Cucumbers at Bayer. “Consumer panels confirm the good taste of our snack cucumbers: 71% of the consumers preferred our variety compared to those of competitors, 76% liked Minigustos appearance and 70% preferred its sweetness.”
While for years, chocolate, chips, and cookies dominated the snacking landscape, today, Bayer noted in a press release, vegetables have recently reached the top three snacking option for consumers. In Europe, the vegetable snack market has grown from €30 million (about $32.2 million) in 2012 to €70 million ($75.1 million) in 2015, while sales of existing vegetables remained stable.
Consumers, it seems, are more and more willing to spend money on healthy, tasty, ready-to-go produce, and Minigustos aim to be just that—a premium brand of tasty, attractive snack vegetables, the perfect “mini gustos” (or tasty minis).
With Minigustos, Bayer is targeting generation X and millennial shoppers, who are, according to the company, known to exercise more, eat smarter, and also to be willing to spend money on food brands that they find compelling.
With its first offering from Minigustos, Bayer aims to fill a void in Northern European, Canadian, and US Markets—where retailers and consumers have increasingly been asking for a tasty and crunchy snack cucumber with a longer shelf-life. The Minigustos snack cucumber is the result of years of research and cultivation by skilled breeders and growers.
Currently, Spanish partners of Bayer are harvesting the first Minigustos snack cucumbers, which are being made available to premium supermarkets throughout Northern Europe. Bayer has already received market requests from customers in Canada, Australia, and China, and will soon be taking its Minigustos cucumbers interncontinental.
Bayer is currently looking into expanding the brand’s offerings to include other vegetables—colored snack carrots and cosberg snack lettuce. Testing among Dutch consumers has yielded very positive results.
For more on this and other exciting brand developments in fresh produce, check in with us at AndNowUKnow.
BENTONVILLE, AR – Already diving deep into his new role, Sam’s Club’s newest CEO is wasting no time setting a strategic course for the company. As the company looks to hone its services in the competitive market, John Furner has used his first day on the job to outline three focuses for the company moving forward.
“I’m going to be focused on simplifying the business and thinking differently,” stated Furner in a post on Walmart’s website. “We have a lot of hard work and new opportunities ahead of us and each associate at Sam’s Club will play a role in getting us there. I’m thinking about it in terms of three big areas.”
With this shift in leadership, comes a new company-wide focus. Starting today, Furner has placed these facets at the forefront of business and given the following reasons, in his own words, for the company's selections:
- 1. People – We need to engage everyone, at all levels of the company, in the fight we’re in. We need to put our members first and have everyone pulling in the same direction.
- 2. Product – The products we sell have to be the hero. People don’t shop our clubs for the beautiful buildings–we have concrete floors and steel racks. They come to us for great items, and we must get that right.
- 3. Digital – I’m committed to accelerating our digital transformation. We saw tremendous growth last year with SamsClub.com, Club Pickup, and Scan & Go. We must continue to move with speed in this space, and use member data and insights to quickly adapt and meet the needs of the increasingly digital consumer.
Furner, who started with Sam’s Club’s parent in 1993, stated that Walmart has always been in his blood. Furner’s father also worked for Walmart, and his family received support from the company when Furner’s mother became ill.
“As I transition into this new role, I’m going to do a lot of listening, especially to the associates closest to our members. Like Sam said, ‘listen to everyone in your company,’” Furner continued.
Furner also credited a stint as Walmart’s Chief Merchandising and Marketing Officer in China for part of the professional gumption that brought him to his current role.
“I feel like I’ve learned the business of Walmart U.S., Sam’s Club, and Walmart International from the bottom up,” said Furner.
As Sam’s Club turns its focus to people, product, and digital endeavors, where will these strategies find the company in the future market? AndNowUKnow will keep you updated.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- OC of Miami Corporation, operating out of Miami, Florida, for failing to pay a $13,060 award in favor of an Idaho seller. As of the issuance date of the reparation order, Oscar Rodriguez, Jr. was listed as the officer, director, and major stockholder of the business.
- Southern Melon Distributors Inc., operating out of Atlanta, Georgia, for failing to pay a $28,500 award in favor of a Florida seller. As of the issuance date of the reparation order, Jonathan D. Letsinger was listed as the officer, director, and major stockholder of the business.
- Chris McKissack, doing business as Tupelo Produce Brokers, Saltillo, Mississippi, for failing to pay a $10,241 award in favor of a California seller. As of the issuance date of the reparation order, Chris McKissack was listed as the sole proprietor of the business.
The PACA Division, which is part of the USDA’s Agricultural Marketing Service (AMS), 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, the USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
CALIFORNIA - Though California has had a small reprieve from the recent winter weather that brought both drought relief and severe weather to the state, precipitation is set to return to the state and surrounding regions starting this Wednesday.
“Another strong West Coast storm system will deliver rounds of coastal flooding for northern and central California, along with heavy snow for the Sierra Nevada and the Cascades of Oregon and Washington,” stated AccuWeather Meteorologist Kevin Gilmore.
In the Sacramento regions, rainfall is expected the most throughout Thursday and Friday, according to the Sacramento Bee. As the low pressure system moves throughout the northern part of the state, precipitous byproducts will be felt over the next seven days. Regions as far south as Los Angeles could also experience rainfall this Thursday and Friday.
During the initial two days, the National Weather Service expects an inch or two of rain in the valley, with a foot or two of snow in the Sierra Nevadas above the 6,000-foot elevation level.
Meteorologists at AccuWeather stated that wind, heavy snow, and flooding will not only affect California, but Washington, Oregon, and Idaho as well. This weather, along with heavy winds, is likely to create transportation problems throughout these regions well into the weekend.
As we recently reported, this type of precipitation has boosted California’s snowpack and prepped the state for a, hopefully, easier summer to come. Meteorologists predict that these storms will contribute in the same manner.
As the West Coast states prepare for another round of wet weather, possible flooding, and transportation issues, AndNowUKnow will be prepared to report on the outcome and impact throughout the industry.
PLEASANT PRAIRIE, WI - Good Foods wants to ensure that there are no game delays when it comes to one of The Big Game’s most popular dishes: guacamole. The company has launched two new ads nationally to remind consumers they can have fresh Tableside® chunky guacamole without the extra prep time.
Jim Garsow, VP of Marketing for Good Foods Group, LLC, took the time to tell me more about why this product is a must-have for your last-minute game day shoppers.
“The Big Game is the second largest promotional event of the year for guacamole, and for avocados in general,” Jim shares with me as we discuss the company’s national campaign. “You wouldn't have a Big Game party without guacamole, and we’re working to make Good Foods the brand of choice for the fresh prepared guac.”
It’s a necessity for the football party menu, but can be a hassle for today’s on-the-move, last-minute-planning consumers. This, Jim explains, is why this campaign is ideal for retailers looking to meet the needs of those last days of shoppers for the big event.
“With folks putting together their party plans, it's a great opportunity for retailers to give consumers an alternative to having to make their own dip when we have great-tasting, fresh, ready-to-eat guacamole. Especially as everyone is doing last-minute plans, our product helps retailers give consumers what they need at the speed of life,” Jim says.
Good Foods Tableside® guacamole offers consumers the opportunity to have fresh-prepared guac without all the work; in fact, it’s often mistaken for homemade.
“A lot of the feedback we receive is that everyone assumes our customers made it themselves, which is exactly what we love to hear,” Jim laughs.
Available nationwide at Costco, Target, Walmart, Publix, Walgreens, and more retailers, key into this product for your promotions of The Big Game and #sharethegoodness.