UNITED STATES - The bitter West Coast port saga has reached its conclusion.
After nine months of negotiations, U.S. Labor Secretary Thomas Perez and federal mediator Scot Beckenbaugh have brokered a compromise between dockworkers and their employers.
The new five-year contract agreement will “create a new process for the selection of arbitrators” after dockworkers, represented by the International Longshore and Warehouse Union (ILWU), had asked for the removal of a previously designated arbitrator that they viewed as too pro-business, according to Politico.
Additional details of the contract have not yet been made clear by the union and management.
The tentative labor deal marks a huge victory for Perez after he was requested by President Obama to meet with negotiators from the ILWU and the Pacific Maritime Association (PMA) in San Francisco. Without a doubt, the port deadlock has inflicted a great blow to California citrus farmers, whose export losses were estimated to be up to hundreds of millions of dollars per week. FEDEFRUTA and the Chilean Fruit Exporters Association (ASOEX) have also reported that the damages from the port slowdown have reached approximately $50 million, which is higher than previously anticipated.
The White House calls the agreement “great news” for the parties involved in the negotiation and a “huge relief” for the economy. The press statement also commends Perez for his “hard work bringing about a successful resolution” to the dispute. Had Perez not succeeded, a full-scale, extended shutdown of the ports would have cost the U.S. economy about $2 billion a day, according to Reuters.
According to a joint statement made by maritime association President James McKenna and union President Robert McEllrath, the ports can now resume full operations. Reuters reports that port officials estimate it would take approximately six to eight weeks before the immediate backlog of cargo containers would be cleared, and several months before freight traffic returns to its regular rhythm.
The deal has yet to be ratified by both parties, though Perez has expressed his confidence that the rank-and-file will approve the agreement.
Stay tuned to AndNowUKnow for more updates on the situation.
HOUSTON, TX – Sysco’s lawyers have spoken out against the Federal Trade Commission's (FTC) decision to block the Sysco/US Foods merger.
As we previously reported, the FTC voted yesterday 3 to 2 to block the deal along with 11 Attorneys General from California, Illinois, Iowa, Maryland, Minnesota, Nebraska, Ohio, Virginia, Pennsylvania, Tennessee and the District of Columbia.
According to the Chicago Tribune, Sysco lawyers took issue with the FTC’s claim that combined Sysco-US Foods would have a 75% share of the U.S. market for distributing food products with frequent and flexible delivery.
During a news conference, Richard Parker, an attorney representing Sysco from O’Melveny & Myers said, “If you’re in Chicago and you need food delivered, you can look at the broadline suppliers, you can look at local suppliers – there are a lot of them. There is no national market. It is pure mythology.”
Parker went on to say that there are local companies in every market that constrain price and provide options and alternatives. He added, “In challenging the merger of Sysco and US Foods, the Commission simply got it wrong… This transaction is pro-competitive. It’s good for customers, it’s good for the United States and we proceed to court with confidence.”
Sysco attorney Damian Didden of Wachtell, Lipton, Rosen & Katz, also spoke out about the lawsuit. According to the Tribune, he posed the question that if the merger really would create 75% market share, how could two of the five commissioners fail to find reason to believe it was anti-competitive?
The lawyers also noted that Sysco would voluntarily divest 11 distribution centers by selling them to competitor Performance Food Group to ensure competition.
The FTC is planning to try the merger case through its own administrative litigation system and set a trial date of July 21, according to the Wall Street Journal. The commission is also planning on asking a Washington, D.C. federal court to issue a preliminary injunction to block the deal while the case proceeds.
Stay tuned to AndNowUKnow as we continue to follow this developing story.
LIMA, PERU - Camposol Holding has reported its Q4 2014 results and its preliminary year 2014 results.
Though the company saw sales of $73 million in the fourth quarter of 2014, down 10.3% from Q4 2013, the total sales for 2014 reached $267.6 million, up $15.7% from 2013.
“The long-term growth prospects for exotic fruits and vegetables markets are excellent. Avocados and mangos are growing, with headroom for increased per capita consumption in key markets,” the report said. “In the case of asparagus, although consumption is stable, supply is falling due mainly to reduced exports from China. The Company expects good demand for all fresh produce in general and for avocados specifically in both the United States and Europe.”
The company expects to continue its diversification strategy by increasing the production capacity of blueberries and shrimp and other minor related products.
Other notable highlights from the report include:
- Volume sold is down 13.5% from the same period in 2013
- Average price up 3.6% from the same period in 2013
- Sales down 10.3% from Q4 2013
- Average cost of goods sold is up 18.4% from the same period last year.
- EBITDA 59.1% lower than Q4 2013
- EBITDA margin decreased to 9.2% in 2014 from 20.2% in 2013.
- The company maintained a cash balance of $38 million in 2014.
The report also touched on Camposol’s recent acquisition of INY SA and Pesquera ABC S.A.C. in 2014 which together had revenues in the amount of $43.8 million and EBITDA of $4.9 million. After these acquisitions, the company owns approximately 1,300 Has dedicated to shrimp farming, as well as three processing plants.
Stay tuned to AndNowUKnow as we continue to bring you the lastest financial news and analysis from the fresh produce industry.
HEATHROW, FL – After 25 years in the industry, Village Farms has unveiled its new, next generation website.
The site, which has a brand new look and feel, is the result of a year-long team effort combined with consumer driven research, according to a press release.
Check it out for yourself by clicking here.
The new Village Farms website houses innovative features that are geared toward a consumer-centric integration of all of the company’s social media channels.
It also features high impact graphics and videos that focus on the unique full flavor of Village Farms’ products while telling the story of the company’s people and the process from farm to table.
This redesign comes after the company’s 25-year anniversary celebration in 2014 and was inspired by the company’s people, passion and performance.
CARLISLE, PA - Tonya Herring, a 23-year Safeway veteran, is joining Ahold USA as Senior Vice President, Non-Perishable Merchandising, effective February 23.
During her most recent role at Safeway as Vice President, Category Development, Perishables, Herring was responsible for perishable strategy including financial goals, product development, merchandising, pricing, and execution. She successfully led a team of Directors and Managers in 9 different regions to develop and execute retail merchandising processes to optimize new item launch, distribution, merchandising, and execution of marketing and activation programs, according to her LinkedIn profile.
In her new role at Ahold USA, Herring will oversee general merchandise, pet, fuel, dairy, and frozen departments.
“Tonya brings a real passion for the grocery business to her new role with Ahold USA and her strong balance of operations, marketing, and merchandising experience blends well with our team,” Mark McGowan, Executive Vice President of Merchandising, Ahold USA, said in a press release.
With her appointment, Ahold USA has reorganized its non-perishable category into two leadership streams. Jeff Dichele, Senior Vice President, Non-Perishable Merchandising, will continue his role, now with oversight for the beverage, commercial bakery and baking, breakfast, candy, ethnic and specialty, and natural and organic departments.
UNITED STATES - Bill Gates spoke to the Verge on GMOs and what he thinks their contribution will be to the state of world hunger.
Depending on who you ask, genetically modified organisms or GMOs, are either the solution to malnutrition and hunger in the developing world or a threat to food sovereignty. For example, on average, Ugandans eat a pound of bananas daily — more than any other population. But this important resource has been threatened by a bacterial wilt disease, turning the banana plant’s sap into ooze, wilting the leaves, rotting the fruit, and eventually destroying the crop.
Banana wilt was first seen in Uganda in 2001, and neither pesticides nor chemicals have stopped it, according to The Verge. Farmers tried to control the wilt’s spread by burning infected plants and disinfecting tools, but the disease cut Ugandan banana yields by as much as half from 2001 to 2004. In the country’s central region, wilt hit 80% of plants, and sometimes knocked out whole fields, according to a report from The Guardian.
So scientists at Uganda’s National Agricultural Research Organization (NARO), a recipient of funding from the Gates Foundation, created a genetically modified banana by inserting a green pepper gene into the banana’s genome. Evidence shows the new gene triggers a process that kills infected cells, saving the plant. NARO wants to give the seeds away for free, but no regulation exists around GMOs in Uganda, and 2000’s Cartagena protocol ensures Uganda is obligated to take a cautionary approach to GMO technology. According to The Verge, the Ugandan government is looking to passing a law that would allow the introduction of GMOs, including the bacteria-resistant banana. However, some food scientists worry it may open the door to corporate exploitation by multinational companies.
Watch this video by The Verge below for Bill Gates' take on the issue.
This year, the Gates Foundation’s annual letter points to innovations in farming as a revolution that will transform the lives of the poor over the next 15 years, particularly in Africa. The UN’s World Food Programme estimates over 800 million individuals, or one in nine people on the planet, struggle to eat enough food on a regular basis. In places like Sub-Saharan Africa, hunger is a tremendous problem. Ironically, 70 percent of the population in the region are farmers. But the prevalence of hunger there is among the highest in the world, with one in five people being undernourished.
Bill Gates suggests that a new generation of highly productive crops are part of the solution to address global hunger. Seeds that are drought-resistant, disease-resistant, productive, and nutritious could be a huge benefit to farmers, according to The Verge. Some of the crops can be bred through traditional methods, but Gates thinks many African countries will adopt GMOs.
GMOs have been widely publicized as a means to end hunger and malnutrition. Engineering for specific traits, like the wilt-resistant banana in Uganda, could make farmers less vulnerable to crop loss. "GMO-derived seeds will provide far better productivity, better drought tolerance, salinity tolerance, and if the safety is proven, then the African countries will be among the biggest beneficiaries," Bill Gates told The Verge.
The Gates Foundation suggests that by using better fertilizer and more productive crops such as GMOs, African farmers could "theoretically double their yields." (The average yield per acre in Africa is one-fifth of that in the US.) "With the right investments," the Gates letter continues, it may be possible for farmers on the continent to "increase productivity by 50% overall.”
Uganda’s wilt-resistant banana is the best possible scenario for GMO adoption, in some respects. The strain was created by local scientists and because it’s being distributed for free, won’t lead to capital from farmers flowing out of the country, according to The Verge. But some activists are concerned that the banana GMO will open the door to other crops with destructive consequences. "Farmers have been told that the GMOs are almost the same as non-GMOs," Ellady Muyambi, an Environmental Scientist at the Uganda Network on Toxic Free Malaria, told NPR. "But they would have to go to a company to buy the seeds. Many farmers can’t afford expensive seeds. They would have no rights."
Hunger in Uganda is a bigger issue than the impact of one GMO law. Evidence suggests that improving farmer education programs and infrastructure investment can have a bigger impact than increasing productivity alone. Without infrastructure and policy changes, more food won’t eliminate hunger. And while GMOs like the wilt-resistant banana may save critical crops, it’s not clear if they can ensure food security in these hungry communities.
UNITED STATES – The polar vortex has sent temperatures plunging and set hundreds of daily record lows and at least three all-time record lows this week.
According to the National Weather Service, an eddy of the polar vortex is leading to the coldest weather that has hit the eastern half of the country.
The Weather Channel is reporting the Lynchburg, Virginia plummeted to 11 below zero this morning for an all-time record low. Flint, Michigan and Erie, Pennsylvania both tied their record lows of 25 below zero and 18 below zero, respectively.
Record lows for the day were also set in at least 72 cities, including New York, Pittsburgh, Baltimore, Washington, D.C., Atlanta and Miami.
NOAA’s National Climatic Data Center is reporting that from Sunday through Wednesday of this week, 453 record lows were tied or broken. That number is expected to increase exponentially when the data for yesterday and today are published.
The south was not exempt from the cold. Florida saw record lows for the date in Miami (42, tie), Fort Lauderdale (40, tie), West Palm Beach (38), Naples (36), Fort Myers (35), Orlando (33, tie) and Jacksonville (24). Parts of the Florida Panhandle dipped down to 19 degrees this morning. As we previously reported, Florida growers were concerned about the incoming cold front's duration and possible effect on crops.
According to NBC News, this latest winter system has killed at least 15 people, including 11 in Tennessee, where more than half of the deaths were because of hypothermia.
Unfortunately, the next winter storm is already on its way. The Weather Channel reports that 27 million people are under winter storm advisories, watches or warnings.
Sleet and freezing rain is being forecasted for Friday night in Arkansas, then to Tennessee and Kentucky on Saturday, and to Virginia and West Virginia late Saturday night.
As for snow, the system is expected to drop 3 to 6 inches across Pennsylvania, New York and New England, and parts of West Virginia and Virginia could get a foot or more.
Stay tuned to AndNowUKnow as we continue to track these record-breaking winter systems.
SALINAS, CA - The Agricultural Personnel Management Association (APMA) just hosted its 35th Annual Forum, with a record number of over 250 Human Resource and Safety professionals in attendance.
The APMA has been serving its members in agriculture since 1981 when it was founded by some rather recognizable names in the industry including Limoneira, Ocean Mist, Bonita/Betteravia, and Paramount Citrus*.
“One of the main objectives for APMA is to promote networking among members and encourage them to share resources and information to succeed in their jobs,” Julia Belliard, Executive Director of APMA, said.
The Forum presents the opportunity for HR and safety professionals, company representatives, attorneys and others who work in the agricultural industry to come together over the course of a few days and talk about regulations, industry challenges, and potential solutions.
This year’s event was held at the Monterey Plaza in Monterey, CA, from the 28th through the 30th of January. The nonprofit organization is the founder of the first human resources certification course that is specific to agriculture, which was a focal highlight of the conference.
“This year, we will honor the fifth graduating class of Human Resource Professionals in Agriculture (HRPA™) at the Annual Dinner,” Joseph Mallobox, President of APMA and Corporate HR Director for Taylor Fresh Foods, said in his opening speech. “It is also our largest group to date of graduates. Our Board of Directors works diligently throughout the year to expand the scope of this program and to bring to our attendees a wide variety of speakers and topics. Coinciding with the educational experience is an opportunity to network with colleagues, which in and of itself is a valuable asset toward developing professionally and enhancing one’s knowledge.”
The idea for the program was born eight years ago, with the first class of five students graduating in 2011. This year the nonprofit celebrates the graduation of 60 students, its largest class to date.
“I was already part of the board when the certification program started, so I had an opportunity to be a part of it,” Julio Sanchez, APMA Vice President and General Manager for RAMCO Enterprises, said. “Today my involvement continues as an instructor for one of its modules. It’s great to spend some class time with human resource individuals who are starting their careers, or people who have been in the business for years but never had the unique opportunity to be certified from an agricultural aspect.”
The latest perk of attendance is that APMA now offers a human resource certification course while at the forum as a bonus, as well as 23 other educational sessions. “This course allows participants to experience and learn more about the HRPA program, in addition to remaining through the full three days of the Forum,” Sanchez said.
Other key highlights of the forum included an opening by James Houston, Undersecretary for California Department of Food and Agriculture on Outlook for Agriculture for 2015, a luncheon presentation by Philip Taluban, CFO of Ocean Mist on the work they’ve done with Human Resources, and a closing note by Lourdes Gonzalez, HR Director for Gowan Company on Globalization of Agriculture.
Kathleen Thompson, HR Director for Limoneira, and Lourdes Gonzalez also received the first two Visionary Leadership Awards in recognition of their efforts to the development of the Human Resource Professional Program, providing an opportunity for the unique needs of the agricultural industry within Human Resources.
“I just want people to know we are a resource,” Belliard said. “We are a vehicle for agriculture education and information.”
Mallobox personally thanked the Agricultural Safety and Health Council of America (ASHCA) for Health & Safety track, Deason Law and Littler for the Global track in his presentation recognizing the Forum’s very first specific track sponsors, making the quality of the occasion possible.
*Full list of APMA Founders:
UC Ag Extension and several regional Grower-Shipper Associations
JG Boswell Company
Borba Agribusiness
PLEASANTON, CA - The Fresh Produce and Floral Council hosted a membership luncheon at the Castlewood Country Club yesterday, providing an opportunity for industry members and growers to mingle, sample, and share in some of what’s in store for 2015. Key sponsors and speakers included California Avocado Commission, Earthbound Farm, Naturipe, Mastronardi Produce, and the Oppenheimer Group.
The event’s guest speaker Scott Farrell, President of Global Corporate Communications at GolinHarris, introduced new ideas and strategies for businesses in the food industry to combat the panic being incensed by the Food Activist Movement, which employs a shock and fear approach to call attention to the corporate flaws of food and produce.
In a segment entitled Food [React]ivism, Farrell suggested tips such as welcoming an emotional approach when delivering facts to the public, more transparency and willingness to share with consumers in the media, and meeting with activists in an attempt to find common ground.
Several tables offered samples of new products and refreshments before the main event began in the welcoming atmosphere of the Castlewood dining room. A raffle including gift card, rewards, and a football signed by Joe Montana, were awarded by each of the speakers.
Connie Stukenberg, Retail Marketing Director for the California Avocado Commission, emphasized the success of the first avocado commercial to appear during the Super Bowl which is helping the company significantly in reaching its projected 327 million pounds of projected sales. Showing the video available below, Stukenberg also highlighted studies showing over 60 percent of consumers would change labels if it meant access to locally-grown produce.
Brittany Larkin, Territory Business Development Manager for Earthbound Farm shared the company’s plans to make 2015 the “Year of Flavor,” by introducing several new salads for the advancing pallets of consumers. New releases include Kale Caesar, Sun-Washed Mediterranean Salad, and Garden Party Salad as well as new premium all-organic kits launching in March of this year.
Kyla Oberman, Marketing Manager for Naturipe, spoke about the company's ready-to-eat fresh fruit snacks. As well as speaking, she was available with Marketing Coordinator Jesse Curtis to provide samples of the travel-ready fresh produce.
Garland Perkins, Business Development for Oppy, spoke of a new state-of-the-art SunSelect greenhouse being built in California. TOVs, red bell peppers, and cocktail and specialty tomatoes will be grown in the new greenhouse. Oppy saw a 139 percent increase in volume last year with major growth in Zespri SunGold Kiwifruit and are now focusing on late season Lepe and Aguas Blancas Chilean grapes.
AndNowUKnow would like to thank the committee for the opportunity to attend an event in which members and attendees enjoyed the opportunity to mingle and share a comfortable atmosphere.
JACKSONVILLE, FL - Crowley Accord Management Pvt. Ltd. has added another 5 tankers to its fleet of international management, now bringing the company’s total line to more than 70 ships, and they are not done. According to a press release, the company plans to award full technical management to three more in the coming weeks.
“The Crowley Accord partnership continues to be a successful one and this latest onboarding of additional vessels is testament to that,” Mike Golonka, Vice President of Crowley’s Ship Management, said in the release. “Vessel owners are seeking us out because we provide honesty and transparency in our operations and adaptable, safe, and professional solutions for all of our customers.”
Four of the new additions, the MT Dawn Haridwar, MT Dawn Mansarovar, MT Dawn Mathura and MT Dawn Madurai, are owned by Arya Tankers and will operate along the Indian Coast. The fifth new tanker, MT Portland Pearl, is owned by Union Maritime Limited and will operate in the Europe-to-Nigeria trade. All together they represent over 130,000 gross tons in the market.
“Crowley Accord draws on its pool of experienced resources, which are at its disposal both ashore and afloat,” Sanjay Shesh, Managing Director for Crowley Accord, said. “We utilize proven systems based on internationally recognized quality management principles and have the flexibility to meet all owners' needs for periodic technical and accounting reports – all things our new customers indicated were of importance to them.”
Crowley is one of the few U.S. companies that provides third-party international crewing and technical ship management. These latest additions come just short of the anniversary of the company’s acquisition, which took place in April of 2014, that allowed them to expand in the international ship management market.