MELBOURNE, AUSTRAILIA - If there was any doubt that El Niño was here before, perhaps the addition of the Australian Bureau of Meteorology to the list of organizations confirming the weather system will put that doubt to rest.
The Australian Bureau of Meteorology joined the U.S. Climate Prediction Center, Japan Meteorological Agency, the National Weather Service, and the National Oceanic and Atmospheric Administration in declaring that conditions are strong enough to officially declare El Niño. The Australian Bureau of Meteorology is also reporting that this year, El Niño may exacerbate the country's already substantial drought conditions and cause winter frosts to be harsher than average.
As we’ve previously reported, El Niño is a warming of a certain patch of the central Pacific that changes weather patterns worldwide, associated with flooding in some places, droughts elsewhere, a generally warmer globe, and fewer Atlantic hurricanes.
While experts were previously reporting that this year’s El Niño will be weak, some are now changing their tune, declaring a more moderate weather system.
"Certainly the models aren't predicting a weak event. They are predicting a moderate-to-strong El Niño event. So this is a proper El Niño event, this is not a weak one or a near miss as we saw last year," David Jones, Manager of Australia’s Climate Monitoring and Prediction at the Australian Bureau of Meteorology, said. “A significant or substantial event is likely.”
Chief Meteorologist Todd Crawford at WSI in Andover, Massachusetts, had similar findings.
“This will be a strong event, perhaps on the magnitude of the last really strong event in 1997-98,” said Crawford.
We had previously quoted Mike Halpert, Deputy Director for NOAA's Climate Prediction Center, as saying El Niño will be weak this year, but in an interview with CBC News in May he said, ”it's getting close to what we would term moderate," adding that Australia's threshold is 0.3 degrees higher.
Adam Scaife, Head of Long-Range Forecasting at the UK’s Met Office, adds, “The latest forecasts suggest that at least a moderate event is likely and there is a risk of a substantial event.”
While these predictions are strong and come from reliable sources across the board, most experts realize that Mother Nature is unpredictable, and forecasts could likely change drastically over time.
Many forecasters still aren’t convinced of the strength of this year’s weather system, but they can all agree on the potential effects a strong El Niño might cause.
The El Niño that occurred during the 1982-83 season was the partial cause of droughts and flooding from South America to Australia, costing $8 billion and killing nearly 2,000 people, according to the National Oceanic and Atmospheric Administration. The agency estimated the U.S. economic cost of the 1997-98 El Nino alone was $10 billion, with crops wilting or drowning in the fields and consumers spending $2.2 billion less on heating fuels.
Stay tuned to AndNowUKnow as we continue our coverage of this weather event.
CHICAGO, IL - IFCO, along with California Polytechnic State University, has developed a proprietary economic modeling tool, freshIMPACT, that quantifies the economic benefits of Reusable Plastic Containers (RPCs) versus one-way packaging for the fresh produce supply chain.
Daniel Walsh, President of IFCO Systems North America, released this information at a gathering of industry executives at the Reusable Packaging Association Forum.
“RPCs continue to be the packaging of choice for fresh food transport. The freshIMPACT tool demonstrates how increased use of RPCs in the retail supply chain results in increased cost savings and reduced product damage,” said Walsh. “Thanks to researchers at Cal Poly, we now have a reliable method for quantifying the cost-effectiveness of RPCs versus one-way packaging and the results speak for themselves. RPCs save retailers time and reduce supply chain costs when compared to one-way packaging, and result in a much lower product damage rate than other packaging options.”
The freshIMPACT economic modeling tool was developed by Drs. Jay Singh and Koushik Saha at Cal Poly. The economic analysis used data collected via direct observations at distribution center and store level at one national retailer and one regional retailer.
According to a press release, results showed the following:
- RPCs Are Efficient: At Distribution Centers, RPCs are processed between 9% and 226% faster than one-way packaging. RPCs are more efficient when it comes to slotting, order picking, stretch wrapping and loading than one-way packaging.
- RPCs Are Store-Friendly: At retail locations, RPCs are more efficient by 5% to 53% over one-way packaging in stocking, order picking, transport to shelf and folding, stacking and baling. RPCs are more space efficient, both packed and empty, helping better utilize limited space in the back room and on carts.
- RPCs Are Easy to Handle: During disposal and sorting activities, RPCs are more efficient by 16% for unloading and 154% more efficient for sorting and securing. Folded RPCs were easier to handle than one-way packaging that frequently broke and required re-strapping after use.
- RPCs Are Effective: RPC use results showed less than 0.5% packaging damage rate, while one-way packaging was over 4% damage rate due to structural integrity limitations and/or improper stacking.
Walsh concluded his speech by saying that IFCO is looking forward to working with retailers to assess their individual supply chain costs and to determine the viability of RPCs replacing one-way packaging as a strategy to maximize efficiency and drive growth.
SUNNYVALE, CA - HarvestMark, the food traceability solution adopted by companies such as Driscoll’s, Kroger, and Coleman Natural, has been acquired by tracking and positioning company Trimble.
"Trimble's acquisition of HarvestMark enables us to provide further benefits to producers and adds new value to distribution centers and food retailers by providing a powerful tool for tracking goods in the food industry," Mark Harrington, Vice President of Trimble, said in a press release. "By combining HarvestMark with our Connected Farm and Transportation and Logistics solutions, we can enable producers, distributors, and retailers to coordinate their activities to deliver the best quality foods to consumers. We are also giving our customers unique solutions to help control costs and increase profits in the food production, processing, distribution and retailing industries."
Trimble’s interest in HarvestMark, according to the release, is to strengthen its presence in the agriculture, logistics, and transport segments of the food supply chain. The acquisition comes with all of HarvestMark’s assets, including its software-as-a-service products.
Trimble stated that there are four such products, which gives producers the resources to make decisions concerning product safety and quality in real-time:
- PTI & Item Level Traceability: An affordable software that enables food producers, retailers, and foodservice companies to comply with the Produce Traceability Initiative while creating visibility throughout the supply chain. According to the company, the software provides an easy way to create rich analytics to improve performance from a product's source to the end consumer.
- DC Insights: An ERP agnostic mobile application meant for flexibility that prioritizes and guides quality inspections, provides analytics intended for improved buying and gross margin, and creates visibility in real-time with automated performance reports and supplier notifications.
- Retail Insights: A lightweight, mobile application that allows retailers, food service companies, and food producers to collect and synthesize food data, prioritize companies' initiatives, and ensure execution of priorities with real “time-and-trended” information.
- Connect: This is a platform that HarvestMark says allows retailers and food producers to engage their customers, share details about particular products and buying practices, suggest recipes and complimentary products, and receive customer feedback.
The global food traceability market is reportedly forecasted to see about $14.3 billion in total sales by fiscal year 2019, with about 9 percent in annual compound growth rate each year until that time, according to Companies and Markets. With a higher demand in food transparency and new technologies, such as biometrics and softwares like those listed above, the overall food traceability market is also reportedly open for significant growth in the coming years.
Keep checking in with AndNowUKnow for all the latest in the industry.
YAKIMA, WA - Borton Fruit is gearing up for its Washington cherry season in the Tri-Cities/Pasco area on the Snake River, the lower Yakima Valley, and the Upper Yakima Valley. With harvest quickly approaching, Borton is putting the finishing touches on its updated cherry packing line.
“During the offseason we have updated our cherry packing line. For the 2015 season we will have fully computerized optical sizers, with the latest technology in color and defect sorting capability. Borton Fruit is continuing its commitment to be a premier packer of Northwest Cherries,” Eric Borton, VP of International Sales & Marketing, tells me. “With these updates to our packing equipment and technology, our state-of-the-art Rainier and Red Cherry packing lines give us a greater ability to deliver a consistent pack of outstanding quality cherries to our customers.”
Borton is slated to have premium Northwest cherries to market the last week in May, with light volume to start and building volume beginning in June. In addition to its Red Cherry program, Borton Fruit has a very strong Rainier Cherry program as well. Rainier Cherries are continuing to gain momentum and popularity with retailers and consumers, Eric notes.
Like most growers on the U.S. West Coast, Borton’s harvest is a bit ahead of schedule, with its Northwest cherry season running about 10-14 days ahead compared to last year.
“Based on the progression of the crop right now, it appears that there could be an overlap between California and NW cherry regions,” Eric continues. “There is a very active market right now for cherries. Demand is strong for the category and anticipation is high. As harvest moves from California into Washington, we should see the market stabilize as more supplies come on.”
As we previously reported, bloom timing was somewhat compressed and there was not as much separation between bloom in early, mid, and late districts as usual. This signals a crop that could be more compressed than the last couple cherry seasons.
So far Borton Fruit has not experienced any weather related issues that the company expects to affect the quality of the cherries overall. Weather events during harvest can have a big impact on quality, but at this point Borton appears to be in the clear.
Eric anticipates strong volumes on dark cherries through the complete month of June and carrying through mid-July. The company will also have promotional volume on Rainier Cherries by the second week of June through mid-July.
Stay tuned to AndNowUKnow as we follow the Northwest cherry season.
ST. LOUIS, MO - Schnuck Markets Inc. has confirmed it will begin construction on a new distribution center, estimated to cost $100 million.
“As we continue to grow, our goal is to offer customers an even larger selection and variety of quality foods, and the new NorthPark facility allows us to do just that. This expansion nearly doubles our distribution and warehousing capabilities,” said Todd Schnuck, Chairman and CEO of Schnucks.
Schnucks said in a release it expects the facility to be complete by the summer of 2016.
The company plans to build the 915,000-square-foot facility at the NorthPark business park in Kinloch, MO, a suburb of St. Louis, and would employ an estimated 400 people. The new facility will join Schnuck Market's other 570,000-square-foot grocery warehouse in Bridgeton, MO. The facility was built in 1971, and has gone through several expansions to accommodate company growth. The company is using design-build firm Clayco to lead construction on the project, according to a Schnucks spokesman.
St. Louis County Executive Steve Stenger said, “On behalf of St. Louis County, we were proud to assist in making this investment in North County a reality. I commend Schnucks' commitment to building this facility in Kinloch. Its projects like this that will help revitalize our community.”
According to the St. Louis Business Journal, if Schnuck Markets can meet certain job creation requirements, it may also be eligible to receive up to $3.7 million in incentives through a Missouri Works Program, according to a spokeswoman for the Missouri Department of Economic Development.
Schnuck Markets, one of the largest private companies in the region, has more than 10,800 employees in the St. Louis area and reported $2.6 billion in revenue for 2014.
LA CAÑADA FLINTRIDGE, CA - The Allen Lund Company’s Portland office has promoted company veteran Lisa Towner to the branch’s Assistant Manager.
"I am very proud to have been chosen as the Assistant Manager of the Portland office and I look forward to all the new challenges the position holds,” said Towner. “For the past 12 years I have been a member of an exceptional team of brokers and I am proud to step up and assist our office to not only meet, but exceed our goals."
Lisa Towner has been a transportation broker with the Portland office since 2002. Prior to joining the Allen Lund Company, Towner worked for a national LTL company. She will assume her new role of Assistant Manager this month, according to a press release.
Steve Hull, Manager of the Portland office added "I'm very happy for Lisa to receive this promotion. Her excellent work ethic, great customer service skills, and enthusiasm for growing our business will help steer our office forward. Lisa is a true professional."
David Lund, VP of Sales and Branch Operations, is also pleased with Lisa’s promotion.
"Lisa has always stepped up to any challenge and I am pleased that she has accepted this opportunity to become our newest Assistant Manager. Lisa has over a decade of industry knowledge and has always provided excellent customer service," he said.
Lund continued that he believes Lisa can provide leadership in our Portland office, and great transportation service to the company’s shipping and carrier customers.
CALIFORNIA - As the California citrus season begins to move through May, growers are reporting very good demand and a growing interest across all categories. While the state has had its host of challenges, citrus growers are rising to the occasion and mitigating lighter supplies with excellent quality fruit.
Paul Huckabay, Western Citrus Sales Manager, Duda Farm Fresh Foods, tells me, “Flavor is great this year and sales have been very good. Supplies of lemons and navels, as we expected, have been tight and currently demand definitely exceeds supplies. This could continue for the next several weeks, until the end of the season. We are done with our Murcott season and have a few weeks left in our Gold Nugget mandarin season.”
As an industry, Paul tells me that while Murcotts are all but done, Gold nuggets should carry on through the end of May. Late navels could go through June and a couple of very large marketers may go through July. Lemons will go all summer. Duda is also gearing up for its summer import program with Chilean clementines starting at the end of May, Chilean Navel oranges and New Zealand Meyer lemons expected to begin in early July.
I also spoke with Jason Sadoian, Sales for Bee Sweet Citrus, who agreed that demand is exceeding supply and that this dynamic market should continue all summer long.
“Without a doubt, the lemon market is at an all-time high again with no signs of slowing down. We haven’t seen it this hot so early like this, and we’re only in May. Clementines from Chile will be another popular item when they start arriving this month as their early volume is down for the second consecutive year due to drought conditions in their Northern growing region,” Jason notes.
Across the board it seems that usage for citrus spikes when the weather warms up. As Jason puts it, kids are out of school and tearing up the pantry looking for food, more people are out and about barbecuing, people are juicing citrus at home for drinking pleasure… the versatility makes citrus a staple in the kitchen.
“The challenges this year have been our water situation and the heavy costs associated with it, along the massive port strike that challenged sidelined our export business this season,” he says. “The heartbeat of our industry is its growers, we need to always make sure they’re taken care of."
Bee Sweet is currently gearing up for the import season and kicking off with mandarins this month, navels and lemons in July. Right now the company is shipping domestic lemons, grapefruit, and finishing up its navel oranges (ends early July) out of Bee Sweet’s shed in Fowler, CA.
Joan Wickham, Manager, Advertising and Public Relations for Sunkist Growers, tells me, “With growing consumer interest in easy peeling fruit, Gold Nugget variety mandarins and Ojai Pixie tangerines, and smaller citrus varieties are helping to drive the demand for citrus and offer consumers the convenience they love with the distinct taste profiles that pique interest.”
California Star Ruby grapefruit is also in season for Sunkist and the company offers the variety year-round to meet growing demand. Grapefruit is a trending flavor, and Sunkist is glad to be able to offer quality grapefruit year-round to meet growing demand.
“For instance, Technomic released their Flavor Life Cycle Trend Report earlier this year, and grapefruit is trending as an introductory flavor across multiple meal parts,” Joan notes.
Stay tuned to AndNowUKnow as the warm weather heats up, and demand for California produce continues to rise.
QUINCY, MA - Ahold has announced that a few of its executive positions have undergone some restructuring in order to simplify operations, speed up its decision-making process, as well as support stores more effectively.
The company stated that the changes will go into effect on June 22, 2015.
The restructuring involves three executives:
- Current Senior Vice President of Store Strategy & Execution Nick Bertram.
- Current Senior Vice President of Merchandising Services & Support Marissa Nelson.
- Current Senior Vice President and Deputy General Counsel Steve Rowell.
Nick Bertram will now go into the role of Senior Vice President of Merchandising Strategy & Support, a new position intended to simplify the organization and improve the company’s ability to serve customers. Bertram’s position will provide core merchandising teams with comprehensive support on product assortment, pricing, and promotions.
Dean Wilkinson, current Vice President of Sales & Marketing for Giant Landover, will assume Bertram's former position.
Marissa Nelson will now lead an expanded focus on healthy living across Ahold USA’s companies as Senior Vice President of Responsible Retailing & Healthy Living, an expansion of Ahold USA’s current Responsible Retailing function.
Steve Rowell will retain his current title and responsibilities, but also take on additional responsibilities such as overseeing external communications, including media relations, government relations, and community affairs.
“With a clear and constant focus on serving the evolving needs of customers and stores, we are making significant, rapid progress in turning Ahold USA into an even faster, stronger and more responsive organization,” James McCann, Chief Operating Officer of Ahold USA, said in a press release. “While there are still important decisions to make over the next few weeks, we now have a new organizational framework in place –ahead of schedule – that reduces management layers, increases the number of direct reports for many managers and brings important decisions closer to the stores that serve local shoppers each day.”
Ahold and the Delhaize Group also announced confirmation of the rumors that we previously reported about higher company levels being in talks for a potential merger. While both commented in separate press releases that “these discussions may or may not result in a future transaction,” both did say they were exploring the option of combining the two companies.
Both releases stated they would communicate material updates, if any, in accordance with regulatory requirements. AndNowUKnow will continue to keep you up to date on this story as it develops.
WESTMINSTER, CA - FreshSource, a West Coast produce brokerage, is welcoming Marylou Ureta to its Northern California team and Leith Anderson to its Pacific Northwest team.
Marylou, a seasoned produce professional of over 18 years, will join Co-Founder Shawn Dagen at FreshSource North as the company’s new Director of Sales. She has previously held positions at Mann Packing, Azumaya, Del Monte, and POM Wonderful.
Shawn Dagen, President, said he was excited to have Marylou join the company, praising her for determination and strong ambition in the industry. “I have always admired Marylou’s passion for this business, her high energy, and unwavering positive attitude towards the retail trade,” said Dagen. “She will undoubtedly play a key role in the success of this company moving forward.”
Leith Anderson is joining FreshSource in the Pacific Northwest as the company’s Vice President of Sales where he will lead the Seattle and Portland markets. Prior to joining FreshSource, Leith was formerly a Fresh Business Manager for Acosta Sales & Marketing. His experience, which ranges from roles with Fresh & Easy Neighborhood Markets, John Morrell Food Group, Daymon Worldwide, Coffee Bean International, and Coca-Cola, will help boost FreshSource’s expansion into the Pacific Northwest.
“We are extremely excited about this fantastic combination of events,” said Robert Thomspon, FreshSource Founder. “As a company, we’re flattered that our work ethic and reputation continues to attract tremendous talent from the industry. This long-awaited expansion into the Pacific Northwest is perfectly complemented by the acquisition of Leith Anderson, a solid well-respected professional."
Thanks to Leith’s addition in the Pacific Northwest, FreshSource has now secured itself as a complete West Coast broker.
WASHINGTON, D.C. - In federal court Monday, US Foods Executive Vice President David Schreibman admitted that the company will walk away from the Sysco merger if the court decides to further delay the companies’ plans.
The Wall Street Journal reports that Schreibman told U.S. District Judge Amit Mehta his company will not endure any continued uncertainty about the merger while engaging in this legal fight with U.S. antitrust enforcers.
As we’ve previously reported, the Federal Trade Commission has sued both Sysco and US Foods over the proposed merger, citing concerns that the combined companies would create a monopoly.
Also during Monday’s proceedings, top executives from both companies testified in an attempt to rebut the FTC’s case, including Sysco CEO Bill DeLaney. DeLaney spoke for two hours, disputing the FTC’s claims that Sysco could target customers for price increases if it is allowed to acquire US Foods, The Wall Street Journal reports.
“It would be a very stupid thing to contemplate,” DeLaney argued to Judge Mehta.
DeLaney continued that the company’s acquisition of US Foods would, if anything, help cut costs by hundreds of millions of dollars and allow it to compete more effectively. If the newly merged company rose prices, the company would feel backlash from customers.
Testimony in the case is expected to continue through Wednesday, so stay tuned to AndNowUKnow for continued updates.