YERINGTON, NV - As we in the fresh produce industry know, making transitions is a key facet of success. Making its annual move, Foxy Organic Vegetables is beginning its production of organic produce in Yerington, Nevada. The Yerington season will takes place from May to mid-October and is expected to lead to a plethora of high-quality offerings.
“This will be our 13th season in Yerington, and the demand for our product continues to grow,” said Foxy Organic Vegetables’ Senior Vice President of Sales and Marketing Mark Crossgrove.
The Yerington region is home to high elevation, mild climate, fertile soil, and an abundance of quality water that makes for great growing conditions. According to a press release, Foxy grows and ships over 25 varieties of organic vegetables out of its Walker River Cooling Facility in the area.
With such high-quality produce, Foxy continues to stand out across Nevada grocery stores, and the location of its facility cuts transportation by a day and half by not having to come into California. This provides the grower’s customers with fresher product and less shrink, creating a win-win situation for both buyers and consumers.
For more crop and season updates from across the world of fresh produce, keep a tab open for AndNowUKnow.
CHELAN, WA - Summer is coming, and the heat has certainly been on for much of the Western region, though anyone will tell you that the temperatures depend on the week thus far! The bait-and-switch between cooler and warmer days has not tempered cherry demand, however—this fruit remains a premium category as harvest gets under way.
“We are blasting off right now, and once things have balanced out the season should be cruising,” Mac Riggan, Director of Marketing for Chelan Fresh, shares, telling me cherries kicked off a little tight volume-wise but beautiful in quality. “Nothing ever aligns for a perfect start—you are typically over or under, and this time we were under. As always, though, we have been navigating to ensure our partners’ orders are filled as we get into the cherry craze.”
And “craze” truly is the perfect word to describe the demand that continues to exceed even strong volume year over year.
“We are definitely in that time right now when cherries are what is on everyone’s minds,” Mac agreed, sharing that recent hot weather might push harvest a bit but that, barring any large-scale surprises, the forecast on the horizon is rather clear for the cherry market.
Chelan Fresh offers many tailored packaging options for retailers, including 1, 2, 3, and 4 lb clamshells. The company also ships 1.25 lb bags for Rainiers and 2.25 lb bags for dark sweet cherries.
And, with a longstanding history of investing in diverse growing regions and advanced technology, as well as relationships with several grower families generations deep in Washington soil, high quality fruit is practically a promise.
So, as the cherries seem to say, bring on the heat!
CALIFORNIA - Statistically, right now, we find ourselves in a one in 100-year drought. Ian LeMay, President of the California Fresh Fruit Association (CFFA) shared this notion with me as we discussed the state of California’s water today and what we can do to advocate movement and action across this issue. The crux of this: We need to make meaningful water investments like generations before us have. And it needs to be done now.
“If you consider that California’s water infrastructure was primarily built in the 1940s, 1950s, and 1960s and was meant to provide water to 17 to 18 million people, you can see where our concern comes from,” Ian shares. “Today, our state is home to approximately 40 million people, and the infrastructure is no longer equipped to store the water needed to grow food and meet the daily needs for such a population. Our water system in this state is over-prescribed. We need to act today.”
As we previously reported, under last month’s drought proclamation expansion, 41 California counties are now under a state of emergency, which represents 30 percent of the state’s population. California will invest $5.1 billion in water resiliency and infrastructure efforts in response. The nuts and bolts of California’s water strategy are to address conveyance flexibility for state water officials to expedite the review and processing of voluntary transfers of water rights holders.
“Additionally, we need to expedite the building of the Sites Reservoir in Northern California, prioritize the retrofitting that is currently planned at the San Luis Reservoir, which not only would fortify the dam, but give us an opportunity to raise the capacity,” Ian explains. “We need to prioritize and speed up the permitting process for water banks throughout the state in areas that are able to sink and store water underground.”
Possible investments in new conveyance elements like a cross-valley canal will allow the state to move water in different ways than we currently can, Ian goes on to explain.
State and federal governments need to come together with private stakeholders and identify California’s priorities. We need to make meaningful water investments that address our degrading groundwater aquifers, outdated reservoir capacities, and collection abilities, and we need better conveyance—all topics in which Ian and CFFA are incredibly passionate about.
“Not only do we need to identify and plan for what is needed today, but we also need to look several years down the road at what our future needs will be as well. That is why, right now, you’ll find organizations like CFFA advocating for Senator Melissa Hurtado’s SB 559, which just passed the state Senate last week,” Ian says.
SB 559 is The State Water Resiliency Act of 2021 and will allocate $785 million to repairing vital delivery systems that provide drinking water to communities throughout California and water to sustain the state’s leading agricultural economy.
Funds for these projects include investments to fix the Friant-Kern Canal, the Delta-Mendota Canal, and major portions of the California Aqueduct, Ian adds—all vital water arteries that go throughout the state.
“What this money would do is fortify and help improve functionality so that we can keep capacity in those canals to move water when we have it. Those are things that we need to do as a state, just for functionality’s sake—but that doesn’t deny where we find ourselves today in 2021,” Ian shares. “California didn’t receive the snowfall in the Sierras this season that we have had historically. There was an uncommonly extensive snowmelt in April and May that actually didn’t end up being the traditional runoff we customarily see, and our reservoirs didn’t fill like they normally do. With our population and the state’s multiple industries that demand and need a viable water supply, we find ourselves in a very tenuous situation right now.”
Ian breaks it down for me this way: Historically, in California, when we find ourselves in a drought, it limits surface deliveries of water to our farmers, so we have to rely on an underground aquifer.
“California is blessed with layers of aquifers that make up our groundwater basins, but due to the implementation of the Sustainable Groundwater Management Act (SGMA) our ability to rely on those aquifers will change. When the growers find themselves in a drought, they can no longer rely on groundwater to fill the void of surface deliveries, the law just won’t allow it. This will present an immense challenge because, traditionally, most of our commodities need about three-acre-feet of water in a given season to produce and to bear fruit. When allowances are restricted to something like one-and-a-half acre-feet of water, growers will be forced to make difficult cropping decisions,” he says.
In a nutshell, one way we can begin to address and impact the lifeline of ag in this state is to buy California-grown produce, Ian adds. The statement resonates strongly with this California-native.
We pause here for a moment to cast an eye over the immensity of the issue. The need for consumers to buy California produce is a huge part of the solution for Ian, CFFA, and many other advocates walking this essential line.
So, please stay tuned as we break into the conversation around California-grown in the coming weeks with Ian LeMay, CFFA, and more. Until then, explore the issue, raise awareness, send us your thoughts. Let’s raise the volume together in the fight for a more cohesive strategy and execution around California water.
CASTROVILLE, CA - Two new leaders in one day? We’ve been blessed by the fresh produce gods. Ocean Mist® Farms announced both a new Chief Financial Officer, Louis Rakoczy, and a new Grower Relations Manager, Kevin Healy.
Prior to joining Ocean Mist Farms, Rakoczy spent 25 years in finance and was previously Senior Vice President of Finance with Curation Foods/Landec Corp.
In his role as Ocean Mist’s CFO, Rakoczy will oversee the accounting, finance, and information technology departments, which include risk management and tax/audit practices.
“We are glad to have Louis join our team in this key role,” said Joe Pezzini, Outgoing Chief Executive Officer and President. “We look forward to the experience Louis brings to this role and the impact he will make for the company.”
Rakoczy graduated with a degree in Math and Operations Research with a Specialization in Computing from the University of California, Los Angeles.
As Rakoczy takes on his new role, Kevin Healy will also step into his new position as Grower Relations Manager.
In this role, Kevin Healy will be responsible for emerging and cultivating relationships with the company’s grower partner community. Prior to his new position, Healy was the Vice President of Operations for Sambrailo Packaging.
For over 25 years, Healy has been involved in agri-business. He earned his Master of Science degree in Agriculture, with a specialization in Crop Science from Cal Poly.
“With Kevin’s prior experience and years in the industry at hand, we know his impact as Grower Relations Manager will be instrumental to Ocean Mist Farms' future success,” added Paul Scheid, Vice President of Production.
Congratulations to both Louis Rakoczy and Kevin Healy on their new positions! We can’t wait to see what future growth is in store for Ocean Mist Farms.
MOONACHIE, NJ - Packaging is one of the primary cornerstones in our industry, and partners like LPS Industries ensure that the success of the supply-side continues. The vertically integrated flexible packaging manufacturer recently announced the certification of its new Class 100,000 cleanroom.
“We’re excited to announce our brand-new Class 100,000 certified cleanroom facility, providing unprinted and custom printed flexible packaging roll stock for the food and medical markets,” stated Madeleine D. Robinson, CEO. “These customers must meet highly exacting standards, and this cleanroom ensures that we can help them achieve the quality required.”
According to a press release, the advanced state-of-the-art equipment technology gives greater control of the production environment. For example, the cleanroom has a high exchange HEPA air filtration for superior dust and contamination control as well as HVAC equipment and controllers to ensure consistent temperature and humidity.
Additionally, the cleanroom has enclosed sanitation and employee personal protection equipment. LPS noted that all dedicated production equipment follows SQF Edition 9 guidelines, and all of the materials are FDA compliant.
“Our cleanroom has been 3rd-party certified, and our food safety quality system is in review for an upcoming audit to SQF Code, Edition 9. We look forward to announcing the results of that audit soon,” Robinson concluded.
To learn more about industry partners across fresh produce, keep checking in with AndNowUKnow.
WATSONVILLE, CA - My dad instilled in me a love for history, which may be why I am so intrigued by company founding stories like that of Lakeside Organic Gardens. As the grower rings in its 25th year, I take a beat with Owner Dick Peixoto to find out what led the company to where it stands today.
“When I was 17, I left my job at a grocery store to lease 40 acres of conventional land and start The Dick Peixoto Company,” he tells me, and I am hooked. “I focused on conventional crops for about 20 years, and then began looking into organics in 1996. At that point, there weren’t a lot of prominent organic growers around, and I felt I could apply what I had learned on the conventional side to organic farming. I then formed Lakeside Organic Gardens.”
After trying their hand at smaller farmers markets, the team at Lakeside started selling to the wholesale market in the San Francisco Bay Area and Los Angeles, California. From there, the company took off and began entering retail aisles.
“Because we entered organics at a time when the sector was still small, we had the opportunity to join other small organic growers and begin building the business at retail. It was not uncommon for us to go into a store that was 100 percent conventional and convince them to start carrying organic,” Dick says.
Back then, the company was farming 50 acres with 20 crops. Over the last 25 years, that has grown to about 5,000 crop acres on 3,000 acres, including the land that Lakeside Organic double crops. The company has two niche growing areas in California right now; one is in the Pajaro Valley in the summertime, and the other is in the Imperial Valley in the wintertime.
“My dad was a pesticide salesperson, so it was pretty unexpected for me to go from a conventional farmer to an organic one,” Dick laughs. “That, I think, is one of the company’s biggest achievements.”
In addition to tackling what some would call an intimidating organic sector at the time, Lakeside Organic has made significant strides within its operations, many of which include supporting its workforce. Between a daily, free employee farmers market, pre-pandemic annual barbeques, 401K programs and bonuses, and long-term plans for employee ownership, Lakeside truly puts its people first.
Another central aspect of its vision, community support efforts are ongoing.
“We helped our food bank partners grow to the point where now they are able to teach people how to cook, and we support about 30 different organizations and nonprofits, whether it’s produce or dollar donations,” Dick explains. “We’re firm believers that the community is the foundation that we stand on, and we’ve also started our own local restaurant called the California Grill, which serves our organic veggies straight from the field.”
What is the true secret to Dick’s success, though?
“Steady controlled growth,” he says. “I’ve seen companies that try to grow too fast, and we’re very tactical in how we’re going to build the company.”
Speaking of growth, Dick also divulges that Lakeside is currently planning to expand to new areas as it looks to complete its year-round supply.
While Dick is still playing his cards close to the vest, as soon as we hear where Lakeside Organic Gardens is headed next, we will be sure to report.
WOODLAND, CA - Sakata Seed America is continuing to press the gas on growth in the melon category. Recently, we reported on the launch of its New Horizon watermelon varieties. And now, the seed maven has followed up with even more exciting news, as it announced Mark Frahm has joined its Research and Development team as the company’s Melon Breeder.
“Sakata’s products have a certain quality that I have admired throughout my tenure in plant breeding,” Frahm said. “I’m thrilled for this opportunity to create varieties that bring a reliable yield to the grower and an unforgettable experience for the consumer. Expect big things from Sakata’s melons in the near future!”
Frahm began his breeding career fifteen years ago at Nunhems, according to a press release, and holds extensive knowledge surrounding the trialing and development of melons throughout North, Central, and South America.
He has worked in every step of the breeding process for melons and bringing new genetics to market. Frahm also received a Bachelor of Science in Plant Breeding and Genetics from Purdue University and a Master of Science in Plant Breeding and Genetics from Michigan State University.
“Mark is the perfect addition to the team. His leadership skills and deep understanding of the plant breeding process will continue to bolster Sakata’s position as a leader in the cantaloupe segment. He will work out of our state-of-the-art, Woodland Innovation Center in Woodland, California—a perfect environment to support and enhance the team’s work. We’re very excited for what’s to come out of the Sakata melon program,” says Jeff Zischke, Senior Director of Research and Development.
Congratulations to Mark Frahm on this recent appointment! AndNowUKnow will be on the lookout for upcoming developments and innovations from Sakata, so keep an eye out for our logo.
WASHINGTON, DC - As the industry as a whole works to recover from the effects of the pandemic, the Restaurant Revitalization Fund (RRF) has been a crucial tool for the restaurant sector. However, the $28.6 billion in funding could leave many owners without any disaster relief. To aid companies in getting back on their feet, Congress has unveiled the Restaurant Revitalization Fund (RRF) Replenishment Act of 2021, which will provide $60 billion in additional funding.
“When the RRF portal closed in May, small business restaurant owners all wanted to know ‘what’s next’ for their pending applications,” said National Restaurant Association Executive Vice President of Public Affairs, Sean Kennedy, in a recent statement. “The introduction of this additional $60 billion in funding not only answers that question but proves once again that Congress understands and supports the foodservice industry. We appreciate the leadership of Senators Kyrsten Sinema and Roger Wicker, and Representatives Earl Blumenauer and Brian Fitzpatrick, who have championed the restaurant industry throughout the pandemic. Their bipartisan support continues to be critical for local restaurants needing access to relief for full recovery.”
Over 362,000 applications for a total of $75 billion in funding were received in the three weeks the RRF application portal was open, according to the Small Business Administration. The average grant application was just over $200,000, signifying that more than half of the restaurants open at the beginning of the year witnessed a severe revenue loss. The restaurant industry as a whole has lost $290 billion in sales since the beginning of pandemic-related shutdowns, and 90,000 restaurants have closed permanently or long-term.
“The success of the RRF so far is, in large part, because the SBA focused on making the program simple and accessible. We appreciate how swiftly they were able to establish a program unlike anything they had administered before and believe it has the structure to sustain additional funding,” Kennedy added. “For much of the country, life is starting to feel close to normal. While restaurants are optimistic about this trend, we’re still in the early days of rebuilding and are far from recovery. Industry revenue continues to be below expectations, and in many states we’re still operating under limitations. To make sure we don’t lose our rebuilding momentum, we will continue to focus on creating access to the tools the industry needs to address outstanding obligations and to manage the new challenges that could slow our recovery.”
As the economy continues to strengthen, the path to recovery remains uncertain, as outlined in the statement, as consumer spending in restaurants in April was still over $1 billion below pre-pandemic sales. In addition, many operators are still well below normal staffing as a result of the current labor shortage. To read more about the shortage of workers across the supply chain, click here.
As the industry pushes forward to overcome the challenges of last year, AndNowUKnow will continue to bring you the latest information.
MCCLEAN, VA - Acquisition alert! Gladstone Land Corporation is continuing to expand its presence across the produce industry, as the company has announced the recent acquisition of 930 gross acres of farmland. The $13.3 million acquisition also includes approximately 480 acres of blueberry bushes and support facilities in Paw Paw, Michigan.
"We are very excited to make our largest acquisition to date in the state of Michigan," said President and CEO David Gladstone. "This purchase also highlights our ability to acquire farmland for our growers across the country to help expand and diversify their growing season. We hope to continue our steady acquisition growth during the second half of 2021, although I wouldn't count on us continuing at the same recent pace of three acquisitions within seven days!”
The acquired facilities include a 23,000-square-foot cooling and packing plant, a 9,000-square-foot box barn, and a blueberry retail store for selling fruit from the farm directly to vendors and consumers, according to Yahoo! Finance.
In relation to the acquisition, the company also entered into a 15-year, triple-net lease agreement with family-owned farming company Berry Brothers, which has local blueberry operations in Holland, Michigan, as well as three other states.
"This acquisition was a great opportunity to acquire a highly desirable blueberry farm for our grower-partner and to expand our portfolio in Michigan," said Joseph Van Wingerden, Director. "The large cooling and packing facility is essential to the local blueberry operations. We continue to be very optimistic about the 2021 blueberry season and the ongoing strength of fruit and produce sales across the United States."
Earlier this year, the produce partner acquired 2,285 gross acres of farmland in Tehama County, California, and 108,000 square feet of blueberry cooling and storage facilities in Stockton, California.
Gladstone Land is sure to expand its portfolio with more pivotal acquisitions, so keep reading ANUK to stay in the know.
WASHINGTON, DC - The past year and a half for the retail industry has been about adjusting its footing to overcome new challenges, only to find stronger positioning and success in these recent moves. Proving this to be the case, the National Retail Federation (NRF) has issued its revised annual forecast for 2021, anticipating that sales for the entire retail industry will see between 10.5 percent and 13.5 percent growth, shooting up to $4.44 trillion this year. Although specific numbers were not given for grocery, this economic surge pattern will surely be seen in the sector.
“The economy and consumer spending have proven to be much more resilient than initially forecasted,” President and CEO Matthew Shay said. “The combination of vaccine distribution, fiscal stimulus, and private-sector ingenuity have put millions of Americans back to work. While there are downside risks related to worker shortages, an overheating economy, tax increases, and over-regulation, overall households are healthier, and consumers are demonstrating their ability and willingness to spend. The pandemic was a reminder how essential small, mid-size and large retailers are to the everyday lives of Americans in communities nationwide.”
Released at NRF’s inaugural State of Retail and the Consumer event, the revised forecast surpasses the organizations original projection of at least 6.5 percent growth which was made in February 2021. According to a release, the initial forecast was made when there was still great uncertainty about consumer spending, vaccine distribution, virus infection rates, and additional stimulus plans.
The NRF now predicts that 2021 retail sales will come in between $4.44 trillion and $4.56 trillion, with non-store and online sales—included in the figure—expected to grow 18–23 percent to a range of $1.09 trillion to $1.13 trillion. The forecast excludes automobile dealers, gasoline stations, and restaurants.
The updated numbers compare with $4.02 trillion in total retail sales in 2020, of which $920 billion was from purchases made through non-store and online channels.
“We are seeing clear signs of a strong and resilient economy,” NRF Chief Economist Jack Kleinhenz said. “Incoming data suggests that U.S. economic activity continues to expand rapidly, and we have seen impressive growth. Most indicators point toward an energetic expansion over the upcoming months and through the remainder of the year.”
Supporting the idea of economic resiliency, NRF is also projecting full-year GDP growth to approach 7 percent, compared with 4.4 percent and 5 percent earlier this year. Pre-pandemic levels of output are also expected to return this quarter.
Kleinhenz went on to explain that the amount of both fiscal and monetary policy intervention has helped lift personal income, filling the well of lost income from March and April 2020, creating an overabundance of purchasing power. Given the strength of consumer spending, he also noted he anticipates the fastest growth the U.S. has experienced since 1984.
To listen to a recording of the State of Retail and the Consumer event, click here.
Will the retail market reach these staggering numbers in 2021, and what will that mean for the evolution of the industry? Stick with AndNowUKnow as we go on the hunt for answers.