CALIFORNIA & TEXAS - The winter weather may have been keeping pricing high for cabbage supplies out of California and Texas in recent weeks, but now the market is beginning to settle down as supplies finally start to ramp up. With the good demand and consistent quality, growers are still optimistic for the rest of the season.
“We’re just past our first phenomenal New Year’s pull and the season will go until the 10th or 15th of May so long as the weather leaves us alone,” Tonya Hill, Director of Sales at Edinburg, Texas-based Frontera Produce, tells me. “Volume-wise, we’re about halfway through. The next pull is St. Patrick’s Day, which we expect to be a good holiday if the New Year’s pull was any indication.”
California and Texas had their fair share of storms over the past couple weeks, which curtailed harvest during the rainfall and also had an effect on pricing in the past few weeks.
“Since the New Year’s pull was so heavy, pricing ramped up for the season. The cold, wet weather in Texas slowed down production, but we were able to fill what we needed. We’re starting to see the jumbo market climb in pricing now. We are seeing a few jumbos in the field, however, the market is fairly strong,” Hill continued.
Out in Oxnard, California, the cold weather and precipitation from last week’s rain slowed down the harvest and growth. Growers tell us that the reason the markets have been so high is due to the damp weather we have seen in California so far.
“The market has been extremely high - similar to many commodities - in the early part of the winter,” Russ Widerburg, Sales Manager with Boskovich Farms, said late last week. “Still, demand is very good, even with the higher prices. Processed and contract cabbages are still taking up a lot of the volume.”
Overall though, the common theme seems to be that quality has been in-line with expectations.
“Quality on cabbage has been pretty consistent this season,” Widerburg continued. “We’ve dealt with some issues in the late summer and early fall with some die outs from the bagrada beetle, but that just kept yields a little lower and didn’t affect the quality of the product in the box.”
“This year we planted enough cabbage, and we’re seeing fantastic quality on the crop,” Hill said. “The demand matched what we had in the field, if not exceeded it.”
Barring any extreme weather in the near future, growers are looking forward to St. Patrick’s Day for the next big holiday pull.
Stay tuned to AndNowUKnow as we continue keeping track of the cabbage market.
HAMPTON ROADS, VA - Kroger has turned its focus to the produce aisle, revamping and expanding the fresh departments at more than 50 stores.
“We’re excited to welcome shoppers to an inviting, easy-to-navigate space where they can shop for the freshest fruits and vegetables at low Kroger prices,” Noelle Motley, Public Relations Manager at Kroger Co. for the Mid-Atlantic Division, said, according to ABC13. “Capital investment in our stores is one way Kroger is constantly working to maintain the outstanding in-store experience our customers know and love.”
According to the report, the retailer has invested more than $4 million in the improvements and growth of produce departments in 51 Mid-Atlantic Division stores, allowing it to offer a wider selection of organic produce and grow its natural foods inventory.
Stores that have been or are being renovated are located in several states, including:
- North Carolina
- Virginia
- West Virginia
- Tennessee
- Kentucky
- Ohio
Upgrades include, among other things, new refrigerated cases and misting systems, plus market-style slant-top tables to display the fresh produce. It's unclear at this time whether locations across other divisions will receive similar upgrades, but you can expect AndNowUKnow to report on any further updates as they come.
WASHINGTON - As commercial drone technology continues to evolve, Kevin Gould, CEO of Hawk Aerial, is looking to adapt the new resource to the world of agriculture. The company entered the drone market just over a year ago and is working to help established businesses streamline critical processes while minimizing the cost of aerial services to implement drone technology in their own work flows. While still in the education and development phases, Hawk Aerial is looking to make waves in precision ag technology.
“For agriculture, the motivation for companies should be more of an economic play for better quality and more comprehensive information. Whether it's working toward better disease or pest prevention, applying enough fertilizer or water rationing for a better application strategy, we see drones as the next big player in precision ag,” Kevin tells me.
If you are worried about the expertise Kevin brings to the table, we can definitely say that he has aviation in his blood.
Kevin is, at present, an active, instrument-rated pilot who has spent most of his career as an executive in the aircraft industry: Piper Aircraft (CEO), BendixKing/Honeywell Avionics (President), Adam Aircraft (SVP) and Boeing (Director). He holds an MBA from Harvard, an MS from Stanford and a law degree from USC.
Hawk Aerial has developed a system with multi-spectral cameras that takes imagery which is then analyzed by proprietary post-flight software to analyze the data. In the case of mapping, Hawk Aerial uses NDVI maps that use the process of measuring chlorophyll content within the leaves.
“It gives an indication of whether the plants are healthy or not with the help of the NDVI map’s top-down view. This type of mapping has not been optimal in the past because of the expense of equipment, like a helicopter, or because people who do the leg-work means more man-hours, limited availability and coverage,” Kevin adds.
In the case of those that do not want to make that initial investment in a Hawk Aerial drone, the company became FAA-certified on April 8, 2015. The FAA granted Hawk Aerial a section 333 exemption, allowing it to legally fly drones for commercial purposes... including flying drones for other companies or training staff to do so.
Hawk Aerial is currently going after a number of segments, with one project contracted to teach and certify twelve employees within the Jamaica Public Service (JPS) Power Company in how to safely fly, maintain and utilize small Unmanned Aerial Systems for crucial power line inspection. A representative from the Jamaica Civil Aviation Authority (JCAA) also participated in that training. The program included a multiple day excursion that included classroom, group flight instruction, written test and one-on-one flight testing. The end result was the completion of Hawk Aerial’s UAS Training Course. Sophisticated drone systems will be delivered to them this month.
“JPS will now be able to equip its power line inspectors with Hawk Aerial provided drone systems to more quickly, efficiently and safely maintain its country's power grid,” Kevin says.
While Hawk Aerial may still be quite new in a very new game, the company is continuing to prospect for the right clients to fit their mold. Everything is in place to expand in agriculture and as Hawk Aerial continues to gain traction with the company brand and resources, we will keep you posted and up-to-date.
WENATCHEE, WA – West Mathison, Stemilt’s President, is taking on a new undertaking as the latest Board Member to be added to the Federal Reserve’s Seattle branch.
The fifth generation grower “was appointed to provide insights on his respective business sector and offer observations on the economy,” said Steven Fisher of the Federal Reserve Bank of San Francisco, according to the Seattle Times.
The Federal Reserve Bank of San Francisco operates branches in Seattle, Los Angeles, Salt Lake, and Portland. The institution provides wholesale banking services to financial institutions in nine western states, including Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington.
Mathison, who we covered in a previous issue of The Snack magazine, is the son of Kyle Mathison and older brother to Tate Mathison. At the age of 28, he succeeded his grandfather and company founder, Tom Mathison, in 2005.
Under West’s leadership, Stemilt made its mark with new apple varieties such as the Piñata!® and SweeTango®.
The Seattle Times reports that Mathison also serves on the boards of the Washington State Tree Fruit Association, Washington Apple Commission, and the Keep It in the Valley Foundation.
AndNowUKnow would like to wish West continued success in this new endeavor.
SUMMERLAND, BC - The makers of the nonbrowning apple varieties, Arctic® Golden and Arctic® Granny, have a new variety on the horizon. Okanagan Speciality Fruits (OSF) is introducing Arctic® Fuji.
As of December 31st, 2015, OSF formally submitted a petition to the U.S. Department of Agriculture (USDA) requesting Arctic® Fuji be deregulated by the agency.
“The petition being reviewed by the USDA contains substantial data collected over many years that demonstrates the safety and healthfulness of Arctic® Fujis, and we are extremely confident that they will be granted approval in a timely manner,” OSF shared in a press release.
OSF predicts that since both its Arctic® Golden and Arctic® Granny have already been approved and regulatory agencies are more familiar with its method of silencing polyphenol oxidase (the enzyme that initiates browning), the review of Arctic® Fuji will progress rather quickly.
“This advantage is especially beneficial in our Arctic® Fujis, as Fujis are notorious for being among the fastest browning apple varieties,” OSF continued. “Soon, consumers will be able to enjoy their crisp, sweet flavor profile without the variety’s biggest drawback!”
AndNowUKnow and OSF will continue to update you as Arctic® Fuji makes its way through the regulatory processes.
COLLEGE PARK, MD - These stormy El Niño days are not going away anytime soon, experts say. A new forecast from the Climate Prediction Center (CPC) predicts this year’s system to be nearing its peak before it starts to weaken late spring or early summer.
The CPC, which releases an El Niño/Southern Oscillation (ENSO) advisory update every second Thursday of each month, said in its most recent report that well above-average sea surface temperatures and several other oceanic anomalies “reflect the continuation of a strong El Niño episode.”
“Most models indicate that a strong El Niño will weaken with a transition to ENSO-neutral during the late spring or early summer,” the report explains. “The forecasters are in agreement with the model consensus, though the exact timing of the transition is difficult to predict.”
Mike Halpert, Deputy Director of the National Oceanic and Atmospheric Administration’s Climate Prediction Center joined reporters for a conference call following the release of the forecast.
“We just entered the period when we see peak impacts over North America,” Halpert said. "The current El Nino will remain strong through the winter, gradually weakening through the spring.”
While the report did not address what this could mean exactly as far as precipitation, previous El Niños suggest increased stormy weather, which potentially will add to the snowpack to alleviate some of California’s drought conditions.
As El Niño continues to potentially affect the production and transit of fresh produce, AndNowUKnow will continue to update the industry.
LAKELAND, FL – After announcing the retirement of CEO Ed Crenshaw last week, Publix has unveiled more executive changes ahead for the company, effective May 1, 2016.
- David Phillips, Chief Financial Officer, will be promoted to Executive Vice President and CFO.
- Kevin Murphy, Miami Division Vice President, will be promoted to Senior Vice President of Retail Operations.
- Bob Bechtel, Lakeland Division Regional Director, will be promoted to Miami Division Vice President.
- Tom McLaughlin, the newly retiring Lakeland Division Vice President, will hand off his position to Sam Pero, the Jacksonville Division Regional Director. McLaughlin’s retirement is effective April 30, 2016.
CEO Ed Crenshaw said in a press release that he was excited to announce the promotion of these four company leaders, noting that he was confident they would continue developing the Publix culture.
“We are excited to announce the promotion of four company leaders,” said CEO Ed Crenshaw. “In order for our company to have continued growth and success, we need associates who are ready to take the next step in their careers. David, Kevin, Sam, and Bob are dynamic leaders focused on leading successful and diverse teams.”
Phillips, the newly named Executive Vice President and CFO, is a 32-year Publix veteran. He started his career at the retailer as an Internal Auditor, and subsequently rose up the ranks as an Audit Manager in 1986, Controller in 1990, Vice President and Controller in 1996, Vice President of Finance and Treasurer in 1997, and lastly, CFO in 1999.
Murphy, the new Senior Vice President of Retail Operations, is also a 32-year Publix employee, having begun his career as a Front Service Clerk. He was later promoted to Store Manager in 1995, Jacksonville Division District Manager in 2003, Atlanta Division Regional Director in 2009, and Miami Division Vice President in 2014.
Bechtel, who will be replacing Murphy, began his Publix career in 1978 as a Front Service Clerk. He was promoted to Store Manager in 1991, Lakeland Division District Manager in 1995, and Lakeland Division Regional Director in 2008.
Lastly, Tom McLaughlin, who will be retiring on April 30, 2016 after 47 years of service, will pass the torch on to 39-year Publix employee Sam Pero.
“Tom has helped perpetuate our culture by investing in our associates,” said President Todd Jones. “He has been able to identify talented associates and provide the appropriate training in order to prepare them for opportunity. He’s always led with a servant’s heart. We thank him for his strategic contributions to our project teams, most notably our new store design team.”
Publix is privately owned and operated by its 180,000 employees, with 2014 sales of $30.6 billion. The company has 1,113 stores across six states, including Florida, Georgia, Alabama, Tennessee, South Carolina, and North Carolina.
VAUGHAN, ON & WENATCHEE, WA - Longo Brothers Fruit Markets Inc. has long been a fresh forward format, even since its inception back in 1956 when it was a single fruit market in Toronto, Canada. As we make our way into the first part of 2016, Longo’s is keeping with its fresh commitment by highlighting a produce partnership with Wenatchee, Washington’s Stemilt Growers. Stemilt’s Pinata® apples will be offered all season long and is currently being highlighted it Longo’s "Why Not Try" promotion.
“The promo has evolved over the years. Pinata® apples started simply as an item in our ads which we elevated to a feature in our ‘Why Not Try’ ad promotion where we allocate demo hours to sample the apple to our customers,” Mimmo Franzone, Director of Produce and Floral for Longo’s tells me. “Today Stemilt’s Pinata® apple continues to be featured as a ‘Why Not Try’ staple and we have added a display contest component to the program as well. We feel that it's a great eating apple and offers value to our customer when exploring something different within the apple category.”
Longo’s store team really jumps on board these programs, he adds, and gets excited about building big, beautiful, displays that also include Stemilt's Pinata® Lil’ Snappers, organic Pinata® and other varieties.
“Like Stemilt, Longo’s is incredibly focused on the customer. At the end of the day, we can only send more product if the consumer is buying it,” Roger Pepperl, Stemilt’s Director of Marketing, says. “Great promotions help consumers learn about new products but Longo’s takes this to the next level and educates their produce managers and gives them the tools to engage customers at the store level. You can have a great new item, but if the consumer doesn’t know about it, demand will be affected.”
Stemilt’s team also travels out to Longo’s stores to engage customers and talk about the Piñata variety, the growing and harvest process, along with other varieties that they grow.
“Longo’s is great at diversifying the category and hitting it on all sides,” Roger adds.
Pinata® brand apples are a heirloom Pinova cultivar whose parents are Golden Delicious, Cox’s Orange Pippin, and Duchess of Oldenburg. The apple presents and sweet and tangy flavor profile, something that North American customers, and specifically those in Toronto, really seem to enjoy.
“When a great new variety like the Piñata comes along it can be very successful. With the combination of great flavor and a well executed promotional program, specialty varieties can increase sales and traffic as our customers are always looking for new and unique items within our produce departments,” Mimmo says.
The Longo's and Stemilt relationship is a special one. Both companies have similar values - offering the best product possible to consumers and serving them to the fullest, as well as engaging their teams and customers. The love of family and food and working together, really make it all happen.
The Stemilt and Longo’s relationship continues to grow stronger and stronger as the years go on, and the companies look forward to many more promotions to come.
MISSION, TX – The highly-anticipated Viva Fresh Produce Expo is just around the corner, and two new crowd-drawing events have been announced – the first annual 5K Run and 1-Mile Wellness Walk.
Starting at 7:00 am on Saturday, April 2, attendees will have an opportunity to breathe in the fresh air of the Texas Hill Country just outside the doors of the JW Marriott and participate in these active lifestyle events, which are sponsored by DMA Solutions and hosted by Bound Outdoors.
There will be a course for the runners and a separate course for those who prefer to walk. The schedule of events is as follows:
- 6:50am: Arrive at race course starting point
- 7:10am: Stretching exercise led by course guides and course overview provided
- 7:20am: Run and walk begin
- 8:20am: Run and walk races include
“Our goal was to create more activities and events in keeping with our mission of promoting healthier lifestyles by increasing the consumption of fruits and vegetables,” said Jimmy Bassetti, President of J&D Produce and Chairman of the Viva Fresh Expo steering committee.
Bret Erickson, President and CEO of the Texas International Produce Association, said, “This will be a fun event that’s free for all attendees and exhibitors to enjoy the surrounding nature of the San Antonio hill country. The course follows level ground mixed with gentle hills that winds around the resort in a beautiful, springtime setting.”
The event will wrap up at 8:20 am allowing enough time for participants to get back in time to attend the Keynote session, according to a press release. Dr. Drew Ramsey will be speaking on the power of brain food, and the Healthy Living Award recipient will be announced during this session. The session will start at 9:00 am and the expo hall will open at 11:00 am – 4:00 pm on Saturday, April 2.
For more information and to register for the Viva Fresh 5K Run and Wellness Walk Event, click here.
BAJA CALIFORNIA - Rain, high demand, and active markets seem to be a recurring theme this season.
Brussels sprouts prices have been trending in the low to mid-forties for the past several weeks on 25 lb. cartons, growers told us late last week, as a result of the increased demand and lower supplies due to weather-related challenges.
Salinas, California-based Ippolito International is currently sourcing Brussels sprouts from two regions in Baja Mexico, with a few more regions to start in the coming weeks.
"Demand has been very good," said Katie Harreld, Sales Manager with Ippolito. “The supplies have been short for a few months now, and demand has not slowed down at all. The Brussel sprout category has seen tremendous popularity which in turn means increased demand, with the short supplies we have had as an industry we have not been able to keep up with the demand."
The fluctuating weather in Mexico played a huge role in delaying production. During the season's plantings in the summer, periods of warm temperatures followed by cold temperatures and heavy rainfall set production back by a few weeks, and ultimately, more time was needed to size up the sprouts. Castroville, California-based Ocean Mist Farms, which is currently growing Brussels sprouts in several regions of Baja Mexico and in Coachella, California, is also currently seeing a "demand exceeds supply" situation.
"Both regions have had the same weather challenges. During our plantings we had a few cycles of very warm temperatures followed by very cold temperatures then came the heavy rainfall and more cold temperatures," said John Shaw, Ocean Mist Farms' Brussels Sprouts Commodity Manager.
Harreld concurred, saying, “The much needed recent rains have caused harvesting delays from both regions in Baja. The ground is too muddy for crews to attempt to harvest so we have missed full harvest days during the month of January. We are not near our normal budgeted numbers for this time of year, but each week supplies seem to be getting better.”
In spite of these challenges, growers are reporting that quality is meeting expectations.
"The overall quality has been good; there have been some small quality problems with getting new growing regions going, but overall good quality to start the Mexico season," said Harreld.
Similarly, Shaw added, “The overall quality of the finished product has been good. The Brussels sprouts weights and color are good and sprouts are firm. With that being said, we have been culling a larger number of sprouts than in years past due to quality issues caused by this year's weather challenges."
As we continue to keep track of the market prices, stay tuned to AndNowUKnow for any further updates.