FLORIDA - It’s no secret that Florida citrus has not had the easiest of years. Florida growers are faced in particular with citrus greening, or HLB, a bacterial disease transferred by a pest called the “Asian citrus psyllid,” which can kill infected trees within two years time.
Just last week the U.S. Department of Agriculture (USDA) lowered its estimate of the 2015-2016 Florida orange crop by almost 7 percent, or 5 million boxes. Estimates now come in closer to 69 million boxes for the upcoming season, according to Florida Citrus Mutual.
This has translated to tight markets across most citrus categories out of Florida, with higher pricing in response.
“On domestic (Florida) citrus, demand is outpacing supply with a short season projected and another huge decline in volume due to struggles with the citrus greening (HLB) disease,” Seald Sweet’s Florida Citrus Category Manager Dave Brocksmith tells me. “Supply estimates predict this will be Florida’s smallest crop dating to 1958. We expect pricing to continue upward for the remainder of the deal.”
The USDA also lowered their estimate of early-mid varieties, shaving off one million boxes for an estimate of 36 million boxes, and another four million boxes off the Valencia estimate, bringing that total to 33 million boxes.
Duda Farm Fresh Foods also corroborated the fact that supplies and production are down, but on the plus side, the grower expects the pending cooler temperatures to help both tree and fruit health for the near future.
“We knew this year’s crop was going to be the lowest in years but this is a bit surprising,” explained Michael W. Sparks, Executive VP/CEO of Florida Citrus Mutual in a written statement. “The silver lining is that the lower crop should put upward pressure on grower returns which they need to cover ever-increasing production costs.”
The pressure is also on for Florida growers to figure out ways to get around HLB and keep supplies up for future seasons. From my conversations with Florida citrus industry members, I can glean that most are optimistic about what’s to come.
“HLB and Citrus Canker still exists in FL, but we have learned a lot about how to manage it through intense cultural practices and we have come a long way,” another grower told me. “In fact, we have done a lot of replanting of citrus trees in Florida and are very invested in the future of the FL citrus industry.”
The Florida citrus industry in total creates a $10.7 billion annual economic impact, according to Florida Citrus Mutual. For more on how this story will develop in the coming months, check back with AndNowUKnow.
BURLINGTON, MA - The New England Produce Council (NEPC) and Dole have joined forces to donate $5,000 to the Greater Boston Food Bank.
"The Greater Boston Food Bank provides food for so many men, women, families and children, and the NEPC are excited to be a part of this great cause,” Anthony Sattler, NEPC President, said in a press release.
Dole sponsored an NEPC dinner meeting on January 12th, which was hosted at the Greater Boston Food Bank. The check was presented by Sattler and Neil Kessler, North East Region Manager for Dole, together to Greater Boston Food Bank President and CEO Catherine D’Amato.
NEPC members representing all aspects of the produce industry were in attendance to see the generous donation, with both organizations stating that they were proud to support such a worthy organization.
Greater Boston Food Bank is the largest New England distributor to the hungry, having distributed over 54 million pounds of foods last year. 25 percent of that which was handed out was fresh produce.
According to the organization, its goal this year is to provide at least one meal a day to every person in eastern Massachusetts that needs it.
CHINA - Guangzhou Customs authorities have uncovered more than $91 million worth of fruit being smuggled into China from multiple countries, the U.S. included, hitting both its attempt to crack down on food bacteria and pests as well as its economy.
Customs officers have found and confiscated more than 40,000 tons of fruit, including fresh cherries, grapes, and other commodities, world news source Like News reports, valued at about 600 million yuan (about $91,121,000) since cracking down in 2014.
The fruits originated from a multitude of countries, including:
- The United States
- Chile
- South Africa
Sources told Like News that smuggling fruit is becoming an increasing issue. To date, Guangzhou Customs has unraveled three smuggling gangs, arrested 28 suspects, and “informed '520' large smuggling cases of imported fruit.”
Fruit smuggling increases chances for the entry of harmful bacterias and pests into the country, which is already currently combatting “one of the country’s worst invasions.”
Guangzhou Customs reports that it plans to increase the security of imported fruit even more and maintain closer inspection at customs to further buckle down on fruit smuggling in order to promote a safe yet convenient fruit import/export trade.
Currently, the process is already a rigorous one, requiring quality inspection, approval and publication of access by the proper authorities, as well as the establishment of the origin of growing, proof of license to operate, certification of foreign/domestic buyers, and signed purchase contracts.
BENTONVILLE, AR - In what the company is referring to as “sharpened focus on portfolio management,” Walmart will be closing 269 of its locations, including all 102 of its small format Walmart Express stores.
Walmart says instead of its Express stores, it will be renewing its focus on strengthening its Supercenters and Neighborhood Markets, as well as continuing to grow e-commerce business and Pickup services.
“We said in October at our analyst meeting that it's more important now than ever to review our portfolio and close the stores and clubs that should be closed,” said Doug McMillon, President and CEO, of Walmart. “Ultimately, this is in the best interest of our company and reflects the priorities of our growth plan. That plan is focused on winning with stores, deepening our digital relationships with customers and enhancing critical capabilities through technology and data, a next generation supply chain and talent.”
Smaller format stores have been a key focus of other retailers in 2015, including one the company’s biggest competitors Target with its TargetExpress and Target City offerings. Other retailers who have announced small format stores in the past year include Kroger, Raley’s, Ahold, and H-E-B.
In addition to the 102 Walmart Express stores, the retailer is closing 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam’s Clubs, according to a press release. Internationally, the company is closing 115 stores, including 60 in Brazil and 55 in “Latin American markets.”
For a complete list of closing stores, click here.
“We are continuing to grow, and we’re making smart choices in managing our portfolio," McMillon added in a statement. "Even with today’s actions, Walmart will continue to invest in its future, with plans to open more than 300 new stores worldwide over the coming year — in the U.S. Walmart intends to open 50 to 60 Supercenters, 85 to 95 Neighborhood Markets and seven to 10 Sam’s Clubs. We will also open 200 to 240 stores internationally.”
The company estimates 16,000 associates will be impacted by the decision, 10,000 of them in the U.S., who will either be terminated with 60 days of pay or relocated to other nearby locations.
Walmart laid out the financial impact of these closures as approximately $0.20 to $0.22 of diluted earnings per share from continuing operations, with approximately $0.19 to $0.20 expected to impact the fourth quarter of fiscal 2016. The remainder of the impact will fall into the first half of fiscal 2017.
Will Walmart’s shift away from small format locations be a benefit or hold back the retail giant? You can be sure AndNowUKnow will follow the story as it continues.
WEST DES MOINES, IA – Hy-Vee has appointed Jay Marshall, a 34-year company veteran, as its Chief Operating Officer. He will retain his current title of Executive Vice President as he assumes this new role.
Marshall will oversee all retail operations and store development initiatives while assuming responsibility for all merchandising areas in the coming months, according to a press release.
During his career with the retailer, Marshall has been a Store Director, Vice President of Center Store, Senior Vice President of Marketing/Merchandising, and Executive Vice President of Hy-Vee’s eastern region.
Marshall is the fourth person in the company’s history to hold the title as COO.
Hy-Vee also announced its Board of Directors for 2016 at the year-end stockholders’ meeting last month. The 17-member board includes eight new directors who were elected to a yearlong term. The full Board of Directors is as follows:
- Randy Edeker (Chairman, CEO, and President)
- Andy McCann (Vice Chairman, Executive Vice President, Chief Administration Officer)
- Mike Skokan (Executive Vice President, CFO, Treasurer)
- Jon Wednel (Executive Vice President, Chief Merchandising Officer)
- Jay Marshall (Executive Vice President, Chief Operating Officer)
- Sheila Laing (Executive Vice President, Chief Customer Officer)
- Brett Bremser (Executive Vice President, Chief Customer Officer)
- Darren Baty (Executive Vice President of Hy-Vee’s western region)
- Mic Jurgens (Senior Vice President, Secretary, General Counsel)
- Kristin Williams (Senior Vice President, Pharmacy Operations)
- Jamie Franck (District Vice President of Hy-Vee’s eastern district)
- Martin Strokes (Store Director at the Peony Park Hy-Vee in Omaha, Nebraska)
- Matt Schweizer (Store Director at the Muscatine Mainstreet Hy-Vee in Muscatine, Iowa)
- Kevin Mills (Store Director at the Lincoln Center Hy-Vee in Ames, Iowa)
- Jennifer Knesel (Store Director at the Winona Hy-Vee in Winona, Minnesota)
- Todd Wagner (Store Director at the Blue Springs Hy-Vee in Blue Springs, Missouri)
- Dan Vondrak (Store Director at the Hilltop Hy-Vee in Mankato, Minnesota)
Hy-Vee operates more than 235 stores located in eight Midwestern states, including Iowa, Illinois, Missouri, Kansas, Nebraska, South Dakota, Minnesota, and Wisconsin.
LOS ANGELES, CA - If you know anything about actor Danny Trejo, you probably know him as the blade-wielding title character of the blood-soaked action movie Machete. So, like me, you’ll probably have a bit of a jaw drop moment when you hear of his newest venture—a vegan taco joint.
Nestled right in the heart of the Mid-Wilshire district of Los Angeles, Trejo’s aptly named taco restaurant, Trejo’s Tacos, is displaying a giant sign of the actor’s distinctive face. Inside customers can find Mexican-inspired vegan and vegetarian fare, including everything from Austin-style fried avocado tacos and black pepper tofu tacos, to an organic chopped kale salad or quinoa and brown rice combo.
The restaurant will also feature some items with meat, such as a shrimp and red snapper ceviche and a fried jidori chicken taco, but the key here, Trejo says, is to make the more produce-centric eaters just as happy with their meals.
"We have 10 different tacos. It’s just stuff that everybody likes.” Trejo put simply during an interview with the Los Angeles Times. "Here, we wanted to include everybody, so we have a great vegan menu and gluten-free menu.”
With film buffs and foodies alike eagerly awaiting the opening of the restaurant, which Trejo suggests is just a few weeks away, it’s no wonder this wont be the last you hear of the actor’s forays into dining—the Los Angeles times says there are already plans to open a second location in Hollywood.
KINGSVILLE, ON - Red Sun Farms has released a new consumer contest that capitalizes on the tried and true, “New Year, New You” mantra. The company’s new Instagram campaign, the #HealthyPlateChallenge, asks people to snap a picture of their healthiest plates, and upload them to the popular social media outlet.
“We continue to take an active and engaging approach with our online communities,” Red Sun’s Marketing & Public Relations Manager, Sabrina Pokomandy tells me. “Our contests, promotions and online incentives, encourage further engagement within our fans and retail partners. Our #HealthyPlateChallenge is just one more way to connect with them and one more step of increasing the consumption of produce in North America.”
The steps for the initiative are simple:
- Make a healthy plate (lots of veggies a must)
- Snap a pic of your healthy plate
- Share it on Instagram with #HealthyPlateChallenge and tag @ShopRedSun
In return for consumer’s veggie consuming diligence, Red Sun is offering the coveted “Healthy Eating Starter Kit.” The pack features a Red Sun Farms healthy produce pack, a subscription to online cooking classes, a one-month custom registered dietitian-approved meal plan, and a Red Sun Farms water bottle—all making it a snap to keep up with those renewed healthy lifestyle resolutions.
The #HealthyPlateChallenge officially begins today, Friday, 1/15/16, and ends on Friday, 2/19/16, at 11:59 p.m. ET, with winner being notified via Instagram. There is no limit to the number of entries, and consumers can even get one bonus entry by follow @ShopRedSun on Instagram.
For more information on the campaign, visit Red Sun Farms new dedicated landing page at redsunfarms.com/healthy-plate-challenge.
RIVERHEAD, NY - With the new year comes a new look for Hapco Farms. The Long Island-based produce company has launched its new, redesigned website this week.
“The new site not only showcases the variety of produce we can deliver, but also the wide variety of services we can provide our clients,” said Eric Scannelli, VP of Sales and Marketing for Hapco Farms. “We are truly full-service, our customers not only get fresh produce, but services like packing, warehousing, category management, and distribution are available as well.”
According to Scannelli, the goal was to create a site that was not only visually appealing but easy-to-navigate and informative for both customers and prospects.
The company’s new website showcases its entire produce inventory, as well as seasonality and packing spec’s for each specific commodity. One exciting new addition to the site is the “Product Spotlight” section, which features a new category every month.
To see the new website and all it has to offer for yourself, visit www.hapcofarms.com.
STOCKTON, CA - High demands and low supply have banded together to create a tight market and record highs for December and parts of January this asparagus season. Grower Direct’s Asparagus Product Manager and 25+ year asparagus veteran James Paul took the time to tell me more about what retailers should be looking for and what to expect in the coming weeks.
“We are expecting the market to change in the next two to three weeks,” James said, explaining that while supply will continue to be on the lighter side there should be enough to help supplement the high demand by the end of the month.
“I think next week will still be light in supply. Historically the Caborca, Mexico growing region would usually be ramping up at this time, but the cold weather has created a situation in which growers are not getting the heat units to motivate the crowns to push asparagus. But we are anticipating more avenues for production to start opening up the last week of January, and even though they may not be up to full power they will certainly start to relieve this shortness in supply scenario.”
James did caution, however, that while supply will see some relief, he didn’t think it would make a huge impact on the overall market. “The market is going to continue to see very high demand the first week of February, and of course second week of February – everybody wants to do a promotion with asparagus for Valentine’s Day.”
The staggered start in Caborca, he said, will set back the peak about two to three weeks, creating a higher market than what would be the case historically.
To counteract this, he tell me, retailers should not be basing their promotions on previous years, but on the weather.
“It being an El Niño type year, we are going to continue to battle consistent storms throughout the region,” James says. “Where historically we would see Caborca start out strong and high, and maintain that throughout the season into the California season, this year we will see delays and some roller coaster reactions.”
The fields, he says, will be ready to rock n roll as soon as the weather is no longer holding them back.
James adds that he does expect there to be enough supply to meet those February promotions, and the delay should add a stronger spring yield for an even bigger asparagus holiday.
“If we’re three weeks late it doesn’t necessarily mean we go three weeks later in the season, it means with the late start we will see a steep peak in late February, early March and create some fantastic promotional opportunities in time for the Easter holiday, a great holiday for asparagus.”
Grower Direct currently anticipates the season to really take off towards the tail end of February into the front end of March, providing a lot of volume for the market.
BAJA CALIFORNIA - Tight supplies are leading to a high bell pepper market.
The situation that led to this tighter market began before Hurricane Patricia, one of the largest hurricanes on record, made landfall on the Pacific Coast of Mexico last October. While a majority of Mexican growers avoided the impact from the storms in Culiacan, Sinaloa, some farms were soaked with rain.
And as we saw last week, the heavy precipitation fueled in part from El Niño drenched parts of Baja California, but growers are thankful to report that the flooding has not impacted them.
While there have been some ups and downs with the weather, Mike Aiton, Prime Time’s Marketing Director, tells us that the company escaped the brunt of the damage from the floods.
“For a change, we dodged that bullet there this time around,” he explains. “We did suffer some problems several months ago there, but have since worked through them.”
Still, the increased precipitation is not helping matters on the production-side. Cloudy days and cold weather are having an adverse effect on the setting of flowers and pollination for new fruits, other growers share.
“With the cloudy weather and lower temperatures, there is talk that several growers are harvesting colored peppers as green peppers to take advantage of a good market, but if this happens, it just means there will be fewer colored peppers to come,” one grower explains.
The weather isn’t expected to be a problem in the long-term, as temperatures are expected to get back up to 90 degrees in the near future. The increase in temperature should help volumes come on and fill the supply hole that growers have had in the past couple of months.
Stay tuned to AndNowUKnow for any further updates.