Fallback FLV:
https://cdn.andnowuknow.com/fallback-videos/sepc_southern_exposure_2020_-_produce_on_parade_03.mp4?VersionId=5htR5KlvBXcn1pNLUoP4gTqP1xwoXEsG
SEATTLE, WA - Before the proverbial dust had settled after Amazon’s new banner announcement, the e-tailer swooped back into the newswires. While its new banner—set to operate in Los Angeles—is still in the planning stages, Amazon has plans to open cashierless supermarkets as soon as next year.
According to a report from Bloomberg, these new store formats expand upon the Amazon Go technology, tech that could potentially be licensed to other retailers in the future. A person familiar with the project noted to the news source that Amazon is testing the Amazon Go tech in a 10,400-square-foot retail space in Seattle’s Capitol Hill neighborhood.
Amazon’s original plan, the person noted, was for Amazon Go to be a larger format store. The retailer introduced the concept two years ago, which has since expanded to a network of 21 locations. Most of these current locations are roughly 2,000 square feet and stock convenience items like grab-and-go meals. With improved technology, Amazon plans to return to its original vision and launch a 30,000-square-foot location—roughly the typical size of a supermarket.
It is worth noting the incredible effort that goes into making a format like Amazon Go operate. People familiar with the matter explained to Bloomberg that Amazon spent millions of dollars on cameras, networking gear, and servers in the first store alone. Engineers are stress-testing the camera arrays in the Capitol Hill location with large groups of people, ensuring that the Go tech works in larger formats.
Will Amazon’s new banners further cement its position in brick and mortar? AndNowUKnow will continue to report the latest in all things retail.
SALINAS, CA - When you hear Mother Nature knocking at your door, you better answer quickly, because she’s a lady you don’t want to keep waiting. Weather changes can happen at the drop of a hat, and while growers need to duck and weave the whole year ‘round, transitioning crops to new regions can be especially tricky. Like many growers, Church Brothers Farms is transitioning out of Salinas, California, to Yuma, Arizona, and like many, the weather has been a major factor in timing and supply.
“We're not playing in a dome, we're playing with Mother Nature,” Jason Lathos, Manager of Commodities, told me. “Mother Nature is our opponent—we're playing in an outdoor arena. Weather has been a factor for the last four lettuce markets in the last year, and that's exactly what's happening now.”
Church Brothers Farms has seen a gap in its transition between growing areas, where one area finishes early, and another finishes late, which Jason says comes as no surprise, given the mercurial weather this season. The Salinas Valley saw a wave of abnormally warm weather, resulting in an early finish to the grower’s Salinas crop. At the same time, in Yuma two significant storms swept the region, bringing cold weather and unfavorable conditions with them, including rain, hail, and lightning.
Church Brothers Farms had intended to start at the end of October, but that start got pushed back two weeks. Contending with the weather can require some predictive thinking, and with the Salinas crop finishing early, and the Yuma crop starting late, choosing the right varieties is key.
“Iceberg lettuce is basically a three-month crop, and you're planning the varieties based off of normal weather patterns,” Jason explained. “So, if you had a cold-weather variety planted, but when you're getting close to harvest it's hot, you have the wrong variety. Mother Nature is always the key. You never know what those crops are going to do.”
Consumer buying trends are another thing that can wax and wane with changing temperatures, according to Jason, so buyers can expect to see a decrease in short-term demand as 70 percent of the U.S. experiences temperatures of 32 degrees or lower. Keeping one eye on the sky and the other on the market is critical for balancing growing capabilities with demand for products.
“You try to connect all the dots, and the next thing you know, you were right or you were wrong,” Jason commented. “But for the short term, it's been very active. For the long term, to be determined. Keep an eye on Mother Nature.”
For more crop insights, keep reading AndNowUKnow.
CHELAN, WA - ’Tis the season for greens, reds, and golds, which means that the apple display is already festively decorated if you have Honeycrisp and Granny Smith in stock. And, as I hear it from Mac Riggan, Director of Marketing at Chelan Fresh, this is the year among years for these two apples.
“Right now, quality is fantastic and volume is ample when it comes to these two varieties,” Mac shares. “Both have a lot of big sizing and value pricing, Honeycrisp especially, a holiday merchandising dream for retail.”
The retail promotion opportunity is so good that Mac says if someone had told him five years ago the sizing Chelan Fresh is currently seeing would be offered at today’s prices, he would have said “yeah, right.”
“We can currently offer maximum value to where everyone in the supply chain can win, especially as high quality, big size, holiday fever, and value pricing all come together,” he continues.
Chelan Fresh is particularly excited to be able to serve its growers, customers, and the consumers all in one fell swoop, and it shows in its current winter-inspired offerings. If you need a little extra inspiration for your produce department, Chelan Fresh has revived last year’s festive winter merchandiser, including the jolliest snowman you ever did see on pop-ups and shopping bags.
“When it comes to merchandising, everyone has their own strategies. But you can build big displays this time of year without worrying about shrink, and there are all kinds of cross-merchandising opportunities with Granny Smith and Honeycrisp for the holidays. Granny Smiths, specifically, are an amazing apple for baking, and their green color resonates with the holiday season,” Mac advises.
Whether it is holiday festivities or winter baking fever, this is hopefully one key ingredient for your recipe of seasonal success in fresh produce. As we continue to report on all the key categories throughout the industry, keep checking in with AndNowUKnow for the latest.
BERLIN, GERMANY & CINCINNATI, OH - Urban and farming may sound like opposing words but the produce industry is hard at work to make these two seemingly dissonant situations coexist. Kroger recently announced a partnership with Infarm, an urban farming network, stating that both companies will bring modular living produce farms to North America. “Delivering produce picked so fresh you can see the roots,” this partnership between Kroger and Infarm marks the first-of-its-kind in the United States.
"Kroger believes that everyone deserves to have access to fresh, affordable, and delicious food, no matter who you are, how you shop, or what you like to eat," said Suzy Monford, Kroger's Group Vice President of Fresh. "Our partnership with Infarm allows us to innovate by combining ground-breaking in-store farming technology with our passion for fresh, local produce and ecological sourcing. Kroger is excited to be first to market and offer the best of the season, and we're proud to lead the U.S. on this journey."
According to a press release, the living produce farms will launch this month at two of the 15 stores planned at QFC, one of Kroger’s banners, at locations in Bellevue and Kirkland, Washington. Using hydroponic technology, the produce will grow on site at the participating QFC stores, removing the need for extended transportation and storage and producing a more eco-conscious product. The farms are designed to scale and will provide shoppers the freshest and most sustainable living produce options available.
"We want to make fresh, pure, tasty, and nutritious produce available and affordable for everyone," said Erez Galonska, CEO and Co-Founder at Infarm. "Kroger's commitment to innovation, quality, and flavor makes them the perfect partner with which to launch our business in the United States and for the first time in North America."
Through this partnership, the retailer continues to invest in its Zero Hunger | Zero Waste social impact plan, which aims to end hunger in local communities and eliminate waste across the company by 2025.
How will this new partnership impact Kroger's current fresh produce supplier relationships? Stay tuned to AndNowUKnow as we wait for the answers.
NOGALES, AZ - The United States Department of Agriculture (USDA) issued a Federal Order on November 15, 2019 that will go into effect on November 22. This Federal Order will implement new testing protocols and expand visual inspections of tomatoes and peppers shipping to the U.S. from Mexico in order to prevent the spreading of the tomato brown rugose fruit virus (ToBRFV), which has recently been found in tomatoes imported from Mexico. Following the announcement, esteemed members of our industry celebrated the move as a means of safeguarding the United States from the virus and pursuing an integrated protective solution to this threat via a science-centric approach based on verifiable, transparent data and methodology.
“Thankfully authorities at USDA and the corresponding agencies in Mexico and Canada have been coordinating for several weeks on an integrated approach,” said FPAA President Lance Jungmeyer. “USDA said it urgently wants to establish the science, and we agree. Along with the regulatory agencies, the industry looks forward to learning how we all can help stop this plant disease.”
According to a press release from the FPAA, the virus does not affect humans or animals but is an immediate concern to agriculture, which is why the border inspection of seeds, transplants, and fruit by CBP/APHIS will be implemented by the Federal Order until the agency reviews the science and determines how to best address this issue.
The Produce Marketing Association’s Bob Whitaker, Chief Science and Technology Officer, joined Jungmeyer in supporting the USDA’s latest move. He also outlined the new testing protocols and inspections that address three identified pathways for the transmission of the virus, which include the following:
- Seeds: The Federal Order requires testing for all tomato and pepper seeds that are entering the United States from Mexico. The Mexican government agency, Servicio Nacional de Sanidad, Inocidad y Calidad Agroalimentaria (SENASICA) will be testing all shipments of seeds before they are permitted to cross the U.S. border and providing appropriate paperwork to ensure completed testing.
- Transplants: The Federal Order will institute new testing protocols for tomato and pepper transplants being shipped to the U.S. All testing will be performed in Mexico by SENASICA, who will issue paperwork to confirm negative results has been completed. Facilities who receive transplants from Mexico will also perform testing and the order requires the facilities to destroy all positive shipments. Additionally, the USDA will also require Canada to inspect tomatoes and peppers prior to export to the United States.
- Retail: Due to the nature of transmission of the virus, it is unlikely that an infected product at retail will lead to the spread of the disease to greenhouses or fields. For this reason, and because infected fruit is not a public health risk, the USDA has deemed it is not justifiable or practical to regulate the movement of the products. However, due to the volume of tomatoes and peppers that are supplied by Mexico, the Federal Order will expand visual inspections by U.S. Customs and Border Protection (CBP) at ports of entry and CBP agents will test any fruit showing symptoms of the disease. Any shipments with a positive test will be turned away at the border.
The FPAA also affirmed that it is working with the USDA to minimize any delays or negative business impacts from the inspections and anticipates tomato and pepper supplies remaining robust as producers throughout Mexico begin to harvest their winter crops.
For more fresh produce news, keep reading AndNowUKnow.
QUINCY, MA - Ahold Delhaize is adding fresh talent to its leadership team for its New England-based Stop & Shop banner, with a new executive in its finance division. Mary Lynn Phillips has been announced as Stop & Shop’s new Senior Vice President of Finance, effective December 3. Phillips will play an integral role in the retailer’s multi-year initiative to refresh more than 400 of the brand’s stores across the Northeast.
“We are incredibly excited to have Mary Lynn Phillips join the Stop & Shop team as we continue to reposition our brand for the future and build a strong foundation for growth,” Gordon Reid, President of Stop & Shop, commented in a press release. “Phillips’ leadership capabilities along with her broad financial and operational experience in highly competitive markets will help drive Stop & Shop’s financial performance in 2020 and beyond.”
With more than 30 years of experience, Phillips has spent her career developing strong financial disciplines for national retailers. Most recently she served as Chief Financial Officer for Stuart Weitzman in New York, New York. Phillips also held the role of Senior Vice President, Chief Financial Officer for Talbots, Inc. in Hingham, MA, and before that VP Finance and Operations for Coach’s North America Division. Phillips began her career as a Senior Auditor at Ernst and Young.
Congratulations to Phillips on the new role. AndNowUKnow is excited to see the great things she’ll do with the Ahold banner.
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 the latest around all growing regions.
RAIN AND COOLER TEMPERATURES COMING TO LARGE SWATH OF SOUTHWEST U.S. AND NORTHWEST MEXICO
There are two storms converging over Southern California, Arizona, and Northwestern Mexico over the next few days. Remnants of Tropical Storm Raymond coming up from Mexico will drop over 1” of rain in the next few days throughout the greater region of Northwestern Mexico and the southwest of the U.S. This storm will mix with a cold trough coming down from Alaska, bringing colder temperatures to the area.
Many major growing regions will see rain and cooler temperatures from these storms.
In Mexico, the following major areas will see rain today and tomorrow: Culiacán and Los Mochis, Sinaloa. Both are preparing for the start of their winter deal. Ciudad Obregón and Hermosillo, Sonora, are still shipping fall vegetables and melons. In Baja CA, the regions of San Quintín and Ensenada will see rain. San Quintín is still shipping tomatoes and other shade house vegetables while Ensenada is shipping berries. All these regions will see cooler temperatures this week and into next.
In the U.S., Yuma, AZ, will see over 1” of rain between today and tomorrow. The National Weather Service has issued a Flash Flood watch for all Southern Arizona. Yuma is kicking off their winter wet veg crop.
This storm will clear out by Wednesday but then the cooler air coming from Northwest will come through dropping temperatures 10 to 15° overnight.
Expect maximum temperatures in Yuma to go from 80° today to 69° on Thursday with minimum temperatures in the low 50°s.
The coastal California regions of Oxnard, Santa Maria, and Salinas will not see any rain from these storms.
CHILEAN BLUBERRY REGIONS EXPERIENCING HEAT WAVE
Major blueberry growing regions of Chile are currently experiencing above average temperatures. Since last week, maximum tempeartures have been in the upper 80°s and will peak today with maximum temperatures in the mid 90°s. The average high temperature for this of year is 76°. These warm temperatures will continue through this Friday before beginning a cool down on Saturday. Next week, maximum temperatures will be in the mid 70°s with minimum temperatures in the mid 40°s.
Look for a possible uptick in production this week.
These same locations are production areas for peaches, grapes, and nectarines out of Chile which should begin shipping sometime next month.
CALIFORNIA COOLDOWN BEGINS TODAY
California coastal growing regions experienced above average temperatures this past weekend with areas such as Oxnard reaching 93° on Sunday and Santa Maria getting up to 88°. Minimum temperatures were in the mid 50°s. These warmer temperatures should have helped the strawberry production.
Things will change tomorrow as the cooler air moves in and drops maximum temperatures down to 61° and minimum temperatures in the mid 40°s. Look for production from these areas to slow down.
In the San Joaquin Valley, where lettuces and grapes are still be harvested, look for maximum temperatures to drop from the mid 70°s down into the mid 60°s starting tomorrow and minimum temperatures will also drop reaching a low of 37° on Sunday and next Monday.
HURRICANE CENTRAL
Remanence of Tropical Storm Raymond is now dropping rain over the states of Sinaloa, Sonora, and Baja CA, Mexico, as well as Southern Arizona. There is no further activity in the Pacific at this time.
In the Atlantic, there is a disturbance about 500 miles east of Puerto Rico. This disturbance is expected to travel northwest avoiding any islands before turning north out into the Atlantic. We will update you Friday as to any changes.
Thank you as always for your support. We will be back later this week with another report.
MOUNT MAUNGANUI, NEW ZEALAND - Buyers and kiwifruit-crazed consumers can breathe a sigh of relief after hearing the news that Zespri International's European kiwifruit harvest is again set to meet expectations for volume and quality. With strong global kiwifruit demand, Zespri strategically partners with growers across the world to provide steady access to the tastiest fruits they can grow.
“It’s been a tough season for some European growers this year, with a cold wet spring negatively affecting pollination and issues including the presence of the Brown Marmorated Stink Bug and Moira disease affecting kiwifruit and other local produce,” said Sheila McCann-Morrison, Chief International Production Officer.
Contending with natural pests and diseases can prove a challenge, which is why Zespri is involved in a number of trials to help local growers overcome these threats.
“Brown Marmorated Stink Bug is having a huge impact on European crops including kiwifruit and so we’re working with locals to address this threat, as well as continuing to invest significantly with our partners on mitigating the impact of the vine-killing disease Psa,” McCann-Morrison commented in a press release. “Our industry knows first-hand the risks associated with biosecurity and the significant costs associated with an incursion—if we can find ways to reduce the impact then the benefits will be immense.”
Zespri’s Northern Hemisphere harvest is currently underway, and the company is expecting to harvest around 19 million trays, or almost 70 tonnes of kiwifruit from orchards throughout France, Italy, and Greece.
“Despite the challenges, this season’s Northern Hemisphere crop is still expected to be around the same as the record set last year. That’s going to mean we can again provide strong returns to the local industry which is something we’re very proud of,” McCann-Morrison added. “And more broadly, with this fruit being grown and picked by locals and packed in local post-harvest facilities, we're continuing to strengthen our relationships with the local industry and make a positive local impact.”
Around 750 families make up Zespri’s European growers, and they all play a key role in the company’s global supply strategy, which supplies premium Zespri Kiwifruit all year round. Global demand for premium kiwifruit is on the rise, making the relationships that Zespri has formed with its European growers for more than 20 years all the more important.
“It’s a relationship that’s working incredibly well for both Italian growers, post-harvest operators, and distributors, as well as for Zespri and the New Zealand industry,” said McCann-Morrison. “It’s helping deliver greater orchard gate returns, jobs for locals, and is also leading to tens of millions of Euros being invested in orchards and post-harvest facilities. It’s also helping foster further collaboration including technical exchange through R&D, grower workshops and nursery visits in New Zealand, and other general support—all of which are helping boost production.”
Market access is another significant focus for Zespri as it chases growth and expansion.
“We’re committed to helping create access to new markets for European exporters as we have recently with Mexico so we’re ensuring an even greater number of consumers around the world can access our premium kiwifruit. Global supply, or Zespri Kiwifruit grown outside of New Zealand, is currently around 10 percent of all the fruit sold internationally by Zespri, but that will increase significantly along with demand,” continued McCann-Morrison. “At the moment we have around 3,100 hectares in the ground in Europe and that’s set to grow to around 5,000 hectares over the next five years.”
It’s not just the New Zealand-grown kiwifruit that meets Zespri’s strict quality standards, all of the company’s kiwifruit grown around the world have their quality managed through the Zespri System.
“Zespri’s purpose is to help communities around the world thrive through the goodness of kiwifruit,” concluded McCann-Morrison. “European growers are some of the best in the world and it’s great to be sharing our knowledge, systems, and varieties with them, and also to be learning in return.”
For more news on global produce, keep reading AndNowUKnow.
SALINAS, CA - California is currently saying sayonara to its 70-degree days in the sun. That means growers across all regions are gearing up for both the colder winter weather and the demanding holiday season. As a Thanksgiving stuffing essential, celery is slated to experience an uptick in sales. In anticipation of this, Pacific International Marketing is grooming its celery crops for the coming weeks, and Ray Cunanan, the Commodity Manager, took a beat to fill me in.
“We have one month left in Salinas and two months left in Santa Maria. Labor will tighten up in both crops as more product is moved to the desert,” said Ray. “We expect good quality this season.”
Ray also noted that the market is tight with good demand, though Pacific International is expecting a slightly lower volume than last year. Additionally, prices appear to be higher now than they usually are during this time.
“In order to meet our holiday demand, we will be harvesting Sundays and working overtime this season,” Ray added.
The company’s success with its celery crop was written in the stars, as Ray also mentioned that a recent heat spell followed by morning frost has caused Pacific International to be over five days ahead of schedule for its celery harvest.
Get ahead of the celery demand early this year, because those turkeys aren’t going to stuff themselves! And check back with us at AndNowUknow for all things produce.