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WATERMELON — F.O.B.S AS OF MAY 13

MEXICO CROSSINGS THROUGH NOGALES, ARIZ. — Crossings (705-766-766, seedless 683-751-759, seeded 22-15-7) — Movement expected about the same. Trading seeded slow, others moderate. Prices seedless 35-60 counts lower, others generally unchanged. Red-flesh seedless-type per pound 24-inch bins approximately 35-60 counts mostly 20 cents, 75-80s 14-16 cents; red-flesh seeded-type approximately 35-55 counts 12-14 cents. Flat cartons red-flesh seedless miniature 6-9s $7-9. Quality variable. Many present shipments from prior bookings and/or previous commitments.

LOWER RIO GRANDE VALLEY, TEXAS — Shipments (29-96-255, seedless 26-83-223, seeded 3-13-32) — Movement expected to decrease slightly. Trading very active at slightly lower prices. Prices 24-inch bins per-pound red-flesh seedless-type approximately 35-60 counts 28 cents, seeded-type approximately 28-35 counts mostly 21-22 cents. Quality generally good. Most present shipments from prior bookings and/or previous commitments at lower prices.

FLORIDA — Shipments (124-159-233, red-flesh seeded 16-29-53, red-flesh seedless 51-130-180) — Movement expected to increase as more growers start the season in central Florida. Harvesting slowed. Trading very active. Prices generally unchanged. 24-inch bins per-pound red-flesh seeded-type 35s 24-25 cents; red-flesh seedless-type 45 count 29-30 cents, 60 count 29-30 cents. Quality generally good.

IMPERIAL AND COACHELLA VALLEYS, CALIF., AND CENTRAL AND WESTERN ARIZONA — Shipments (AZ seedless 0-23-16, CA 0-26-78, seedless 0-24-73, seeded 0-2-5) — Movement from western Arizona, Imperial and Coachella valleys expected to increase seasonally. Trading fairly active at slightly lower prices. Prices slightly lower. Red-flesh seedless-type per pound 24-inch bins approximately 35 and 45 counts mostly 22 cents. Organic red-flesh seedless 24-inch bins per pound approximately 35 and 45 counts 35 cents; miniature carton 6s and 8s $20.50. Quality generally good. Harvest central Arizona expected to begin the week of May 27.



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Organic Fruits

Survey: Organic produce grows by double digits in 2011

Registering a third straight year of double-digit gains, sales of organic fruits and vegetables rose 11.7% in 2011 to $11.8 billion, according to the Organic Trade Association’s annual survey.

Since climbing only 6.3% in 2008, sales of organic fruits and vegetables have sailed to gains of 11.4% in 2009, 11.8% in 2010 and 11.7% in 2011, according to the latest annual survey from the Brattleboro, Vt.-based Organic Trade Association.

Fresh organic produce accounted for 40.5% of all organic food sales in 2011, slightly up from 2010. Total organic food sales were pegged at $29.2 billion in 2011, up 9.4% from 2010.

The survey doesn’t address total organic produce sales as a percent of total produce sales. FreshLook Marketing reported that organic produce accounted $1.34 billion at retail in 2010, or 3.8% of retail produce sales. A more recent first-quarter 2011 number from United Fresh Produce Association’s FreshFacts report said organic vegetables accounted for 3.3% and organic fruits tallied 1.5% of total produce sales.

Besides supermarket sales, the OTA survey also includes sales from farmers markets and community-supported agriculture programs.

Produced for OTA by Nutrition Business Journal and compiled primarily from an online poll of 300 companies, the survey showed fresh produce accounted for 92.9% of total organic fruit and vegetable sales in 2011. That dwarfs the 3% share for frozen fruits and vegetables, 2.7% for canned fruits and vegetables and 1.5% for dried product.

The OTA said the sales of fresh organic produce totaled $10.98 billion in 2011, up 12.2% from 2010.

The survey’s estimate of organic produce sales growth appears to be slightly more than reported by the West Dundee, Ill.-based Nielsen Perishables Group. Statistics from Nielsen pegged fresh organic produce sales for the 52-week period ending in early February at 10% higher than a year ago, compared to a 3.8% year-over-year sales increase for conventional produce, according to Nielsen.

The OTA’s numbers seem consistent with retail experience, said Dick Spezzano, owner of Spezzano Consulting Service, Monrovia, Calif.

“Every (retailer) I talked to saw double-digit growth last year,” Spezzano said. “Because of the nice increases in the category, (retailers) are starting to promote a lot more,” he said. Retailers are promoting three or four organic items per week instead of one or two items, he said.

The OTA survey said apples were the biggest organic produce seller, with packaged salads driving the vegetable category.

Safeway is one chain store that has reduced retail prices on organic produce and seen substantial sales gain, Spezzano said. Increasingly, conventional growers offer some organic commodities, he said.

“I think the success of the category is to get the crossover shopper to buy organic,” he said. Some observers say consumers will crossover easily if organic produce is not more than 20% more expensive than conventional, he said.

The growth of year-round organic supply of berries and packaged sales has also helped boost results.

“Retailers are riding the wave of category growth,” he said.

Spezzano said organic produce sales may begin to sink below double digits within five years or so but he predicted high single-digit growth for the category after that.


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