Logistics

FPAA Backs Transporation Infrastructure Upgrades, Plans Summit

Mon, 13 Apr 2026 22:43:21 GMT

Improving the transportation infrastructure around the Nogales, Ariz., port of entry and beyond seems to be a never-ending project for the Arizona Department of Transportation, and it’s wholeheartedly supported by the Fresh Produce Association of the Americas.

ADOT says its work on Interstate 19 currently includes intelligent transportation system improvements between Nogales and Tucson, Ariz., including message boards and wrong-way detection, explains Saul Macias, FPAA communications coordinator.

Other southern Arizona work continues to focus on freight mobility and corridor reliability.

“That matters directly to produce because speed, visibility and predictability are critical for perishables moving north,” Macias says.

FPAA also is supporting a grant proposal in Nogales that would improve the interchanges serving the Rio Rico Industrial Park.

Summit Set

In other news from FPAA, the association’s 2026 Spring Policy Summit is scheduled for May 6 in Tubac, Ariz.

“The summit is designed to connect produce industry leaders with policymakers, agency officials and key stakeholders for discussion around trade, border operations, infrastructure, inspections and the broader regulatory environment impacting fresh produce,” Macias says.

“Given the amount of policy uncertainty facing the industry right now, we see the event as an important forum for keeping members informed and engaged,” he adds.

Inteligistcs Highlights the Impact of InteliCool Updates

Thu, 08 Jan 2026 22:47:24 GMT

Inteligistics, a Salinas, Calif.-based provider of cold chain product management solutions, shared findings from recent updates to its InteliCool automation system on Jan. 4.

“InteliCool was designed to convert existing precooling equipment into an automated system, with cycle times and temperatures controlled by the real-time temperature of products throughout the load,” says Gary Fleming, Inteligistics’ CEO.

The company notes that fast cooling of perishable crops such as berries, leafy greens and tree fruit is the most effective means of improving product quality and prolonging shelf life. Tunnels, tubes and MAC systems can quickly lower the ambient air temperature. However, reaching ideal core product temperature, especially on inner pallets, without damaging some product with under- or over-cooling is a cold chain challenge.

Intelgistics says cycle times are usually extended beyond what is necessary, resulting in excess power consumption and loss of productivity. The InteliCool system was created to address this challenge by fully automating the Start, Stop, Swap and Move stages of the precooling process. Eliminating the guesswork from the process with automation results in shorter cycle times, lower power consumption and increased throughput, it says.

“Recent updates to InteliCool now use artificial intelligence and machine learning to correlate ambient air, product core, and supply and return air temperatures to optimize cooler efficiency and preserve product quality,” Fleming adds.

“We’re seeing cycle time reductions in excess of 10 minutes, and overall efficiency gains of up to 33%,” says Eric Kithinji, vice president of operations and engineering. “InteliCool can be installed on virtually any tunnel, tube or MAC system. The ROI payback is averaging 4.8 months, and the increased throughput means some companies can delay or avoid CapEx costs for additional equipment.”

“While efficiency gains and cost savings in cooling operations are impressive, the real game-changer for growers, packers and shippers is having more high-quality product to sell,” Fleming says.

New Leadership Additions at Consalo Family Farms

Mon, 29 Dec 2025 14:33:21 GMT

Consalo Family Farms — a fourth-generation, family-owned grower, packer, shipper, importer and distributor of fresh fruits and vegetables — has added Morgan DiMartino and Jose N. Garcete to its leadership team.

DiMartino returns to Consalo Family Farms as vice president of marketing. She began her career in logistics at the company, where for four years she served as logistics manager, helping build the transportation department from a one-person operation into a fully structured, high-performing team. Her efforts were instrumental in establishing the logistics processes that continue to support its growing supply chain today, the company says.

After her initial tenure at Consalo, DiMartino joined Effy Jewelry in New York City, managing high-value global shipments across the brand’s luxury cruise retail division. Her experience overseeing armored transport for fine jewelry and coordinating logistics for a constantly moving retail network strengthened her ability to lead under pressure, an asset she now brings back to the fast-paced world of produce, the company says.

In her new role as vice president of marketing, DiMartino will blend her operational expertise with her creative vision and deep understanding of the Consalo brand.

“There’s something very special in the works that we’re eager to share soon,” DiMartino says. “Consalo Family Farms has always been about innovation and relationships, and I’m thrilled to contribute to that legacy once again.”

Garcete, who has been appointed logistics manager, previously served as import and operations manager at ICER Brands in New York City, overseeing large-scale import programs for licensed fashion brands including the NFL and NBA. He managed international supply chains from manufacturing to retail delivery, with a strong focus on compliance, timing and efficiency.

At Consalo Family Farms, Garcete will oversee and manage the logistics operations. His background in international freight and process optimization will play a key role in driving continued operational excellence, the company says.

“Jose brings a fresh perspective and a data-driven mindset to our logistics operations,” says Skip Consalo, owner and CEO of Consalo Family Farms. “His large-scale importing experience and precision in execution align perfectly with our mission to deliver quality, consistency and service at every level.”

How Language Rules Have Impacted Trucking, Plus Where the Road is Headed in 2026

Tue, 23 Dec 2025 14:40:56 GMT

It’s been almost six months since President Donald Trump’s executive order requiring English language proficiency rules to be enforced for commercial vehicle drivers took effect, but the impact of that enforcement on the trucking industry has been tough to determine.

According to Logan Cooper, senior manager of regional traffic for logistics provider and trucking broker OEC Group, the impacts have been and will likely continue to be localized. The areas where the fresh produce industry intersects with the trucking industry, however, will likely see less effect.

“Where you’re going to see most of the impact is just the drive-in, warehouse-to-warehouse business; stuff that’s simple ‘pickup and deliver,’ where the drivers aren’t really too involved in it,” he says, adding that most of that business is dry van compared to the more specialized refrigerated trailers that fresh produce depends on.

“When you start talking about reefers or flatbeds or just any kind of specialized equipment, a lot of times those are going to be your more qualified drivers,” he adds. “I don’t think you’re going to see as many of the issues with that segment of the industry.”

Localized Impacts of Enforcement

The April 28 executive order specifically directed the Department of Transportation and the Federal Motor Carrier Safety Administration to enforce existing English language proficiency requirements. It took effect in late June.

In a Dec. 11 post on the social platform X , Transportation Secretary Sean Duffy wrote that DOT had “already removed nearly 10,000 unqualified drivers” since enforcement was stepped up.

Cooper explains that CDL drivers could always be cited for violation of this requirement, but “the driver would get a violation or a fine, but they could keep driving.” The change in enforcement now means that the drivers are “put out of service.” On the ground, this usually looks like a driver pulling into a weigh station, found to be in violation, put out of service, and the truck and its load can’t move until another qualified driver comes to pick it up.

“We would see major delays in those cases if the driver was put out of service. Then they would be reviewed for having their license revoked if they can’t meet those qualifications,” Cooper says.

He tells The Packer that the difference between drivers being put out of service and actually having their licenses revoked muddies the water on exact numbers, estimating that it could be anywhere between 10,000 to 20,000 drivers impacted. But that’s out of 2 million to 3 million active commercial driver license holders, he adds.

“It’s too small of a segment at the moment to really have that big of an impact on the overall industry,” he says.

The impacts Cooper does foresee are localized, both geographically and within specific segments of the trucking industry. This would include the simpler hauls with dry vans and recent immigrant entrants into the trucking industry.

“They’re going to jump into just dock-to-dock dry van, so I think that’s going to be the segment of the industry we’re going to see the most,” he says. “Obviously, that’s going to have some impact on the reefer side because that is dock-to-dock stuff as well, but just with the specialized equipment, I think you’re going to see less of an impact than you would just the straight dry van.”

He also says that any trucking that involves crossing a border into the U.S., as a lot of produce does these days, already has higher levels of scrutiny than dock-to-dock or warehouse-to-warehouse hauling. This usually means more experienced, heavily vetted drivers who would not be impacted by the English proficiency requirement.

Trucking Issues to Watch in 2026

Enforcement of English proficiency for CDL drivers isn’t the only 2025 development in trucking that could impact the industry in 2026.

For example, that same executive order directed Federal Motor Carrier Safety Administration to review non-domiciled CDLs issued by state agencies “to identify any unusual patterns or numbers or other irregularities.” Non-domiciled CDLs are CDLs issued to qualified non-citizens who are in the U.S. legally. The Federal Motor Carrier Safety Administration issued an interim final rule to apply this order in late September, but that was blocked by an administrative stay in mid-November.

“The rule is still in place, but they’re not enforcing it again,” Cooper says. “So, it’s this back and forth of things changing, new rules put in place, and are we enforcing it or not enforcing it?”

He says he expects additional guidance on that in early 2026. He also expects that a new round of arguments will happen sometime in January on the Montgomery v. Caribe case currently before the Supreme Court. Cooper says the case “could be hugely impactful to the industry.”

It effectively asks if states can hold trucking brokers liable for the actions of a driver or carrier. Cooper says that depending on how the case goes, brokers might have to dramatically increase their insurance coverage, which could drive small-to-midsize brokers out of the industry.

“It could make it where the big carriers or the big brokers have a lot more power in the industry and the small guys get chopped off at the bottom because they just can’t pay to play in this case,” he says.

South American Produce Drives Philly’s Peak Reefer Season

Wed, 10 Dec 2025 19:12:46 GMT

There’s a seasonality to the trucking world just like there is to any element of the fresh produce industry. For the Port of Philadelphia, late fall and the influx of produce from South America kicks off and drives what could be called peak reefer season on the spot market.

“You get to the winter months and you start to get produce out of the southern hemisphere,” says Dean Croke, DAT iQ industry analyst. DAT iQ is a data analytics service from DAT One, a truckload freight marketplace for North America.

“But we start to see a lot of our refrigerated trucks now gravitate towards the South American produce and that principally shifts to the port of Philadelphia,” he adds, highlighting that the port is now receiving high-value perishables such as Peruvian blueberries and Chilean grapes.

“It becomes a real harbor of activity that wouldn’t have been on many people’s radar until you start to see significant volumes start to land from South America,” Croke says.

With the need to move fresh produce when it hits the dock, he explains that the highly interstate-connected Port of Philadelphia is ideal for the time-sensitive task.

“The proximity of Philadelphia to probably 45% to 50% of the U.S. population is absolutely key to why Philadelphia is sort of that epicenter of produce for South America,” Croke says.

Regional reefers by the numbers

According to Croke and DAT iQ data, outbound reefer volumes during the week of Thanksgiving were up 16% compared to the same time last year, with spot rates up 4% to average $2.25 per mile. They came down a little in the first week of December, Croke says, to just 10% and 2% respectively. He also notes there is currently an oversupply of trucks in the market, which is suppressing national spot rates.

But those nationwide numbers don’t tell the whole story, he adds.

“The high-volume lanes give you a little bit better read on where the volume goes,” Croke says. “Chicago’s the No. 1 lane for all of that produce that comes into Philadelphia. Volumes are up 33% year over year. Rates are up 7% year over year.”

But things can also fluctuate wildly this time of year depending on other local conditions as well, he adds.

“If it gets freezing cold, rates are going to go through the roof,” Croke offers as an example. “Not because there’s more freight, but because everyone that ships laundry detergent and Coca-Cola will want a refrigerated trailer to keep them warm so they don’t freeze. It’s counterintuitive.

The combination of these local conditions, such as South American blueberries arriving at the Port of Philadelphia headed to Toronto during a freeze, can also cause rates to spike all of a sudden.

“You get all these sort of swings and ebbs and flows on the supply side and the demand side, and you have a lot of rate volatility that enters the market,” Croke says, describing it almost like a ballet. “It’s an unusual thing to watch, but there’s this sort of supply and demand balance that gets played out even at an hourly level, depending on weather when you get to this time of the year.”

Armin Lakovic Becomes ALC’s Des Moines Operations Manager

Thu, 20 Nov 2025 13:26:10 GMT

The Allen Lund Co. announced Nov. 18 that it promoted Armin Lakovic to operations manager of the Des Moines, Iowa, office.

Lakovic has more than 15 years of experience in the supply chain industry. He has been with the ALC for over five years, spending time in various roles from carrier relations to account management, establishing a background in developing relationships and efficient operations, according to the company.

“Throughout his career, Armin has continually demonstrated his problem-solving skills and superb customer service with shippers and carriers alike,” says Ben Batten, vice president of sales and operations. “There’s no doubt his hard work and attention to detail were key to his promotion, but he really exemplifies what it means to do business the Lund Way. I’m excited to see him take on the operations manager role in Des Moines and wish him all the best!”

Paul Nesbit, general manager of ALC Des Moines, adds: “I am excited for Armin to move into a new chapter of his Allen Lund Company career. There is no doubt in my mind that our team will be strengthened by his passion for logistics excellence. He has a positive and humble hustle about him that has proven to satisfy both our carrier and shipper customers time and time again.”

“I’m truly honored and excited for this new opportunity,” Lakovic says. “Over the years, I’ve had the opportunity to work with the most amazing team, that has pushed me to continually improve. In this new position, I am looking forward to building on the foundation and tackling new challenges to continue our shared success.”

GrubMarket CEO Reveals AI-Powered Benefits of Procurant Acquistion

Tue, 18 Nov 2025 18:29:09 GMT

Enterprise AI solutions provider GrubMarket has completed its acquisition of Los Gatos, Calif.-based Procurant, an SaaS (software-as-a-service) platform that streamlines fresh procurement, order management and regulatory compliance for the fresh food supply chain.

GrubMarket CEO Mike Xu says the move marks a strategic extension of the San Francisco-based company’s technology portfolio, allowing it to serve more needs of more customers in the food supply chain industry.

Procurant was also an attractive acquisition, as its products complement GrubMarket’s existing software suite, offering growth opportunities through either cross-selling to its existing, growing software customer base, or offering its software products to the newly acquired customers, Xu says.

“Procurant’s successful trading platform complements GrubMarket’s eCommerce technology, making purchasing even more efficient for GrubMarket’s internal companies,” Xu tells The Packer. “[It] allows us to integrate, build and offer AI-powered end-to-end procurement solutions to existing and new external customers.

“Procurant’s point solutions for compliance, food safety and collaboration can easily integrate with GrubMarket’s comprehensive, AI-Powered ERP, WholesaleWare, offering revenue growth opportunities,” Xu adds.

Founded in 2018 by CEO Eric Peters, Procurant was created as a modern, cloud-native alternative to legacy procurement systems in the fresh food industry. The platform supports real-time collaboration, operational efficiency and end-to-end visibility across the perishable goods supply chain.

Procurant offers a comprehensive suite of innovative tools, including Procurant One for procurement, Procurant Open Link for connecting suppliers with retailers and foodservice operators, Procurant Inspect for quality control, Procurant Trace for FSMA 204 traceability compliance, and Procurant SureCheck for food safety management, which processes over 1 million temperature checks daily and logs over 40 million food safety and checklist observations per month, according to a news release.

In total, Procurant connects more than 850 customers across 14 countries, facilitating $5.5 billion in gross merchandise volume annually. Its broad network includes major national retailers such as Costco, Walmart, Target and Albertsons Companies, along with growers, shippers and distributors throughout the U.S., as well as internationally, the release says.

Together, Procurant’s customers are responsible for more than 90% of all food sold in the U.S. The company’s experienced leadership team will continue to lead the company following the acquisition.

What Retailers Can Expect

Xu says the greatest benefit the Procurant acquisition provides to GrubMarket’s retail partners is “more comprehensive, AI-powered solutions powered by both Procurant’s proven trading capabilities and deep insight into retailers’ needs and wants, combined with GrubMarket’s unparalleled AI technology leadership.”

He adds that retail partners can also expect new integrations, innovative AI products built specifically for fresh food retailers, and configurable, end-to-end solutions.

“The addition of Procurant’s comprehensive solutions will not only benefit our growing base of GrubMarket software customers but also create powerful synergies across our own GrubMarket network,” Xu says in the release. “By integrating Procurant’s platform with our existing technology stack and AI development capabilities, we will deepen the impact of e-commerce internally and offer new AI-powered procurement solutions to the broader fresh food industry. We are uniquely positioned to accelerate digital transformation across the fresh food supply chain as a team, together.”

Synergies Across GrubMarket

GrubMarket says the acquisition creates synergies across multiple dimensions of its business. Procurant’s customers, which include major retailers and suppliers throughout the fresh food supply chain, will benefit from integration opportunities with GrubMarket’s comprehensive software and AI suite, including WholesaleWare , GrubAssist AI , Orders IO , and GrubPay, the company’s digital payments platform specifically designed for the needs of the food supply chain industry.

This acquisition will also offer GrubMarket’s existing software customers the opportunity to explore access to Procurant’s advanced trading network and procurement capabilities, creating a more comprehensive technology ecosystem, the release says. GrubMarket’s own network of subsidiary companies will be able to leverage Procurant’s platform to achieve greater procurement efficiency through cost savings, stronger supplier collaboration and new digital trading capabilities.

What’s Next

Grubmarket has steadily made strategic acquisitions in recent years, such as its June 2025 acquisition of San Diego-based Coast Citrus Distributors , a national distributor specializing in tropical fruits.

What are GrubMarket’s plans for continued expansion?

“GrubMarket will continue to maintain its leadership position as the enterprise AI solutions provider for the American food supply chain,” Xu says. “The go-forward strategy will continue to be multifaceted, including continued R&D and advanced AI tech development in-house, strategic external partnerships as well as acquisitions when and where the right opportunities arise.”

IFCO Launches IFCO Digital, Earns 2025 Smart Solution Award

Wed, 12 Nov 2025 13:08:12 GMT

IFCO, a global provider of reusable packaging solutions for fresh foods, has launched IFCO Digital , featuring its new Tracking-as-a-Service (TaaS) solution the company says is a key milestone in its digital transformation journey. The innovation has also earned IFCO the Smart Solution Award 2025 at the Supply Chain Awards in Germany.

Since 1992, IFCO has championed circular logistics with its SmartCycle pooling model, ensuring reusable packaging containers (RPCs) are collected, cleaned and redeployed for reuse. With the introduction of its digital services, IFCO says it is taking this model to the next level, combining real-time tracking, AI and advanced data analytics to make supply chains smarter, more transparent and more efficient.

IFCO says its Digital TaaS solution enhances transparency, traceability and sustainability across supply chains

In today’s global supply chains, companies face challenges such as misplaced or stolen assets, inefficient return logistics and limited visibility into shipment conditions. These issues drive up costs and disrupt operations, creating a need for smarter, connected and sustainable solutions, the company says.

The new IFCO Digital TaaS solution uses Bluetooth Low Energy and GPS technology to provide real-time visibility into the location, temperature and condition of reusable crates and pallets throughout the supply chain.

“Our digital solutions have already enabled us to track more than 1 billion trips of reusable packaging containers — a milestone that reflects the scale and maturity of IFCO’s digital transformation,” says Sebastian Grams, chief digital officer at IFCO. “With Tracking-as-a-Service, we’re taking this even further, turning data into actionable insights that make our customers’ supply chains more transparent, efficient and sustainable.”

IFCO says its Digital TaaS solution is plug-and-play, requiring no infrastructure investment on the customer side. All connectivity is enabled through smart trackers attached directly to IFCO’s reusable crates and pallets, eliminating the need for gates or fixed installations. This simplicity makes the system easy to scale, fast to deploy and highly cost-efficient, according to the company.

IFCO says TaaS offers customers actionable insights that help them:

· Reduce asset and produce losses through precise real-time tracking
· Optimize use and reverse logistics, improving operational efficiency
· Enhance quality assurance by monitoring temperature-sensitive goods throughout transport to avoid food waste
· Support sustainability and ESG goals by minimizing waste and lowering carbon dioxide emissions

Pilots are already underway in collaboration with growers, retailers and logistics partners across North America and Europe.

Smart Solution Award 2025

Recognizing excellence in digital and sustainable supply chain management, the Smart Solution Award 2025 , presented by Logistik Heute and PwC Strategy&, highlights IFCO’s leadership in digital innovation and its commitment to developing scalable, sustainable solutions for the fresh supply chain industry, according to a news release.

IFCO says the recognition showcases how digitalization and circular business models can work hand in hand to make supply chains smarter, more efficient and environmentally responsible.

How Data Can Drive Cold Chain Efficiency

Mon, 04 Aug 2025 21:55:15 GMT

Scott Blair, senior digital program manager for Lynx Fleet telematics, a platform by cold chain transport company Carrier Transicold, has a story that convinced one customer of the value of telematics built into transport refrigeration units.

“They had a very high value seafood-based cargo sitting in a parking lot. The truck had detached and the refrigeration unit was still running, but they couldn’t unload it at the time. Well, somebody went out and turned it off. In the middle of summer — in the South,” he says.

“They didn’t discover it until a couple of weeks had gone by.”

Blair adds that, whenever he’s having a bad day, he tells himself it could be worse.

“I could be the guy who had to go in there and clean that out,” he says.

Ever after that, the customer was interested in understanding where their equipment was and knowing the state of their cargo, Blair says.

Now, more shippers who rely on the cold chain, including the fresh produce industry, have increased options when it comes to knowing and controlling the state of their cargo.

Updates to Lynx Fleet Telematics

In mid-July, Carrier Transicold launched an update to its Lynx Fleet telematics platform, what Blair calls a fleet management system. The update includes new analytic and diagnostic capabilities, according to the company.

Key among these updates are:

The “TRU Health” feature, which constantly collects performance information on equipped transport refrigeration units such as active alarms, battery voltage, fuel levels and other details. These are used to develop a TRU health score for the unit. The feature displays the scores across a fleet on a single dashboard.
A new module that supports up to five temperature sensors for multi-zone reefers.
The ability to support GPS and sensors for dry vans and other equipment, including TRUs built by other manufacturers.

While Lynx Fleet was developed specifically for Carrier Transicold TRUs, which come “Lynx Fleet ready” with telemetric hardware already installed, Blair says the move toward support of non-Carrier equipment is not common for telematic programs, but he adds the technology has been evolving alongside the industry.

“A lot of companies like to have multiple sources for their suppliers and transport refrigeration is no different,” he explains. “Some fleets are heavily mixed with carriers and other manufacturers, but they still want to know where and how their assets are doing, but they don’t want to go to three or four different systems. They like to be able to have it in one place, so it’s becoming more common now.”

The company says customers with fleets including different vehicle types and TRU suppliers can track location, reefer temperatures and more using the Lynx Fleet platform. It added that the update’s new API tool kit allows Lynx Fleet data to be shared with most major transportation management systems.

The Why Behind the Update

Like many software development teams, the Lynx Fleet telematics team uses the agile system. This approach to project management is an iterative, adaptive style that ideally delivers a usable product rapidly while continuing to fine-tune the product to customer needs.

Blair says being agile “allows us to recognize and integrate customer input quickly.” That’s how and why the most recent Lynx Fleet update happened, he adds.

“It’s a natural evolution,” Blair says. “This next-gen platform really helps us put something in place that gives us room to grow. We’re not just looking at what we do now; we’re looking at what we’re going to do in two, three, four, five years from now.”

Looking to that future of telematics needs, Blair says he sees the industry at an inflection point when it comes to connectivity devices and programs. Everything, from the stove and vacuum droid in consumers’ homes to cars and reefers on the road, is increasingly connected and trackable. The volume of data, Blair says, is getting overwhelming.

“I think that we are, right now, asking ‘How do you turn all of this data into actionable information? How do you give people information that they can base decisions on? Decisions that helped them run their business. Decisions that help them reduce their costs and increase their efficiencies. How can we do that?’” he says.

Blair says the new features, like TRU Health, give owners more control to go along with the greater volume of data about what is happening with the TRU itself.

“If you’re an operation that’s moving products across the country, knowing the health of that unit before you spend all the time to cool it and to load it and to put it out onto the road, you have some level of confidence that it’s going to be OK until it gets to where it’s going,” he says.

But TRUs aren’t just employed in keeping products cold while getting them to where they need to be. They also get used as short-term cold storage. Blair notes
that “we see that a lot in a lot of places, especially in farmers markets and those kind of settings.”

“Those trailers will sit for a long period of time, and if they’re not connected to a tractor or the telematics unit is on the tractor, there’s no way of understanding or knowing the conditions or what’s going on inside of that trailer, which is where all the valuable freight is,” explains Stephen Petit of SiefkesPetit Communications, which represents Carrier Transicold.

“So, having telematics on the TRU is a benefit in terms of cluing you into what’s happening where the freight is as opposed to just tracking the tractor or the driver and their mobile device,” Petit says.

Idaho-based Roamer Transport Inc., which hauls fresh and frozen food, adopted Carrier Transicold’s Lynx Fleet telematics across its 39-trailer fleet before the recent update. The company credits even the older features and data it receives through the platform with helping keep its trailer use close to constant and saving at least four loads due to early alerts of technical issues.

(Photo courtesy of Carrier Transicold)

Data: Whose Is It and What To Do With It?

As more and more data is being generated, there are more opportunities for questions about data ownership and handling. Blair says the Lynx Fleet telematics team has had discussions with its customer base about concerns such as how long data gets held and who gets to see it.

“We take every single one of those inquiries and those desires very seriously, and we accommodate everything that’s humanly possible to alleviate those,” he says. “Our stance is: If you own that trailer, you own the data that goes with that asset. If you have a policy for how you want that data handled, we will abide by that.”

Petit says having the data to offer to potential customers is beneficial for trucking companies.

“Even a small food distributor can have requirements when it comes to data and being able to verify things like time in and time out or detention time or waiting times and certainly temperature — there are all kinds of compliance issues,” he says. “Having telematics today that go beyond location and temperature and are able to get down to more of a remote monitoring and control setup and sharing that data as you wish with your customers — those
are pretty important advantages for a carrier today.”

Blair says the main point behind Carrier Transicold having Lynx Fleet and putting out the recent update is “really about serving our customers and allowing them to make critical business decisions with the best data available.”

“We live in this world now where there are answers in the data that come from these assets to questions that we haven’t even thought to ask yet,” he continues. “That’s the purpose: How do we help you? How do we give you actionable information? We designed and built those TRUs, so we’re best suited to give you those answers.”

Hawaiian papayas get the bespoke shipping treatment

Tue, 27 May 2025 18:25:02 GMT

Papayas are a delicate fruit, according to Eric Weinert, president of the Hawaii Papaya Industry Association and owner of Hawaii Papaya Direct. But they are also unusual, especially the fruit from Hawaii.

“Most of the papaya in Hawaii is grown in the District of Puna on the Big Island, which is volcanically very new,” Weinert says. “The richness and nutrients of that new volcanic soil gives Hawaii’s papaya a unique and really good taste.”

Weinert says Hawaiian papayas are usually either the solo or rainbow varieties; smaller orange-fleshed fruits compared to the red-fleshed papaya of South America.

“Papaya is unique in that it fruits year-round,” he continues. “They have a couple of peaks and valleys, but there’s always fruit all year round in Hawaii. That makes it good from a marketing point of view so people can always have it in the stores.”

Getting Hawaiian papayas to stores outside of Hawaii is an undertaking. It is roughly 2,400 miles to reach the nearest mainland port in Southern California. Weinert explains that usually Hawaiian papayas are shipped by boat to ports along the West Coast and then trucked deeper inland. Papayas that consumers find in stores on the East Coast or the eastern half of the country are likely from South America.

To add to the complication, if temperatures fall below about 55 degrees, unripe papaya — those that haven’t started showing some yellow — won’t ripen properly. When each fruit bears the cost of transport to its customer, having an unsuccessful eating experience in the form of a fruit that won’t ripen is a problem, Weinert says.

Direct from source to consumer

Since most large retailers want unripe papayas — thinking that will give them the most amount of time to sell them — Hawaiian papaya growers and shippers often have a lot of almost-ripe and ripe fruit that is too ripe to ship by boat. Weinert says many of the papaya companies were throwing away these ripe fruits. That presented an opportunity.

Enter Hawaii Papaya Direct, a bespoke direct-to-consumer online venture.

“We FedEx these things two-day air, and we start with the ripe fruit. We never refrigerate them. We get them out of the field, pack them and ship them to a person, and they will end up with ripe fruit,” Weinert explains. “That online business has grown 50% year over year for the past three years.”

He says that he has shipped directly to consumers in every state, including the Big Island of Hawaii. Weinert says a lot of the business is people who give the five-fruit boxes as gifts. But there’s something interesting about the people who buy them, he notes.

“Almost everyone of those people — when they call and we talked to them — have a relationship with Hawaii in one way or another,” Weinert says. “There’s some kind of magical relationship with Hawaii.”

The business is individualized to the wants and needs of the customers. Weinert says he talks with customers regularly, and Hawaii Papaya Direct will pack to a customer’s specifications on ripeness to the extent possible. It doesn’t always work out, however, given the logistics challenges.

“Not every shipment is good. We put good fruit in a box, but once it leaves us, things can happen because it’s alive,” he says. “But our deal is we are committed to happy customers, so we make it right regardless of the cost. We want a happy customer.”

Fresh produce timelines drive U.S. trucking trends

Wed, 14 May 2025 18:00:51 GMT

Fresh produce is a demanding, volatile and highly seasonal industry, and its timelines can have massive effects on other industries.

“Produce season is one of those events that impacts the entire freight market,” Dean Croke, principal analyst for DAT iQ, told The Packer.

DAT Freight & Analytics, which operates the DAT One freight marketplace and DAT iQ data analytics service, released its monthly recap report on the trucking markets May 9. It showed truckload freight volumes down month-to-month in April:

Van DAT Truckload Volume Index: — 287, down 0.3%.
Refrigerated (reefer) TVI — 222, down 3.1%.
Flatbed TVI — 332, up 2.5%.

Year-over-year volume comparisons, on the other hand, were positive, with the Van TVI up 1%, Reefer TVI up 4% and Flatbed TVI up 5% compared to April 2024.

“We had a good season last year, and a slow start this year,” said Croke. That slow start in the shipping season was due, in large part, to the slow start in the big players in U.S. produce like California. Croke explained that the produce season for the trucking world generally kicks off in mid-April as crops in low-latitude states come ready.

“There are very few events that move the national rate needle as much as produce season,” he said. “When you get to this part of May, you normally start to get into serious produce volumes as temperatures warm and it starts to push more volume into the spot market.”

But things are different this year. Croke said the season is about four weeks behind where it usually is with “not a lot of produce moving nationally.”

“The year-over-year comps really reflect a slow start out of California, which produces anywhere between a third and a half of our truckload produce volumes each year in the spot market,” he said. “Some markets are hot, but the overall market is still fairly flat and is maybe down compared to last year because of some weather-related factors and, I expect, a little bit of consumer demand has been softening.”

What shipping season 2025 looks like

The monthly DAT report also noted that there was little movement in national average spot van and reefer truckload rates. Since most produce is moved on the spot market, especially in vans and reefers, spot market rates in those areas are the most relevant to produce. Those rates and the month-to-month changes for April were:

Spot Van — $1.96 per mile, down 3 cents from March.
Spot Reefer — $2.27 per mile, unchanged.
Spot Flatbed — $2.57 per mile, up 4 cents.

The relatively flat rates in vans and reefers were called typical for March and April. The flatbed rate increased for the fifth straight month.

Croke explained that, historically, spot rates steadily ramp up from the middle of April to July 4, the seasonal peak, all because of produce shipping. Spot rate tends to gain 20-25 cents per mile over that time for reefers.

“The produce season — in this short two-and-a-half months — lifts the entire freight market out of the winter doldrums from spring and into Independence Day,” he said.

What this year’s spot rate peak will look like is in question, however.

“Because of the late start in produce season and softer consumer demand because we’ve all been worried about a trade war and a recession, we’re not sure that this season will deliver the same peak in spot rates that we’ve always seen,” Croke said.

Ken Adamo, chief of analytics at DAT Freight & Analytics, said in DAT’s April report that the shipping market felt frozen due in large part to these wider economic concerns.

“April brought the usual seasonal opportunities in produce and construction materials,” he said. “But broader economic factors — including uncertainty over tariffs and the pull-forward of inventory this year — put a damper on growth in overall freight volumes, especially compared to previous years.”

The report also noted that, while the month-to-month spot rates were mixed, the contract truckload rates in April were flat to higher across the different categories. The report pointed out that, when spot rates fall relative to contract rates, “it can signal a soft or oversupplied market.”

“Carriers were hoping April rates would be a springboard into a stronger Q2,” Adamo said. “Instead, the optimistic case is that they’ve reached a pricing floor heading into the traditional summer peak shipping season in May and June. How ‘traditional’ the season looks has yet to be determined.”

Dean summarized the potential peak saying, “It may be a speed bump.”

“There will be a produce season, I just don’t think it’s going to be what we normally see because of the impact of what’s happened in the first half of this year.”

Progressive Produce shares cold storage know-how

Thu, 24 Apr 2025 13:18:59 GMT

Since Progressive Produce LLC established itself as a Los Angeles-based grower-packer-shipper in 1967, the company has honed its expertise in the cold storage arena, dealing with products ranging from potatoes and onions to asparagus and chili peppers and myriad other fruits and vegetables.

When the firm acquired a 120,000-square-foot cold storage facility in nearby La Mirada about eight years ago, it decided to open it up to third parties, said Oscar Guzman, vice president of marketing and sales.

“We talked with multiple growers, packinghouses and small, local supermarkets and saw that there was a need in this area for efficient cold storage,” he said.

“We’d been in business for over 50 years, so we definitely knew what it took to receive shipments and keep the cold chain going,” he added. “We’d been doing it for ourselves for so long that we finally got to the point where we were very comfortable offering that service to others.”

The move meant the company, which was used to dealing with dozens of assorted fruits and vegetables of its own, had to expand its expertise to include different items its customers offered, such as melons and pineapples.

The facility has many amenities that anyone in need of a cold storage facility should be on the lookout for, Guzman said, including:

Three temperature zones, including an ambient temperature area to accommodate a wide range of fruits and vegetables.
Comprehensive remote monitoring for temperature.
A digital check-in system that allows products to be tracked for food safety purposes.
Daily inspections.
A state-of-the-art warehouse management system.
Constant rotation to ensure riper fruits and vegetables are shipped before the newest ones.
Eight loading doors to enable trucks to load and unload quickly.

The company complies with the latest food safety rules and traceability requirements, Guzman said.

“Food safety has become especially important lately, and we are transparent about everything we do,” he said. “We like to have all our T’s crossed and I’s dotted.”

Changes have been implemented over the years to keep up with current industry standards, but one thing that hasn’t changed is the customer service, Guzman said. Staff is always ready and willing to advise third parties on good cold storage practices, he said, though most already are well-versed on what their needs are.

Transportation is an important part of maintaining the cold chain, and Progressive’s Pathfinder Logistics company enables customers to keep the cold chain intact before and after their product arrives at the cold storage facility, Guzman said.

Refrigerated big rigs can pick up a load, consolidate a load, add something to it or just take it to or from the facility, he said. All trucks are equipped with temperature controls that can be monitored remotely, a feature he said is a must for today’s trucking operations.

Another item on a checklist for anyone seeking a dependable cold storage operation should be organic capabilities, Guzman said.

“We are an organic house as well,” he said, referencing the company’s certification through California Certified Organic Farmers.

Demand for cold storage projected to stay hot

Tue, 22 Apr 2025 20:17:19 GMT

Cold storage continues to play a key role in the food industry, especially the fresh fruit and vegetable category.

According to a research report from Skyquest, which has a U.S. office in Westford, Mass., the global cold storage market was valued at just over $140.4 billion in 2024 and is expected to reach nearly $510.2 billion by 2032.

“The global cold storage market is experiencing robust growth, driven by rising demand for temperature-controlled logistics across food, pharmaceutical and chemical industries,” according to a report summary.

The market is expected to grow at an annual rate of 17.5% from 2025 to 2032.

With the increasing need for preserving perishable goods, the market is witnessing rapid technological advancements in automation, energy efficiency and internet-connected integration, according to the report summary.

Major industry players are investing in sustainable and modular cold storage facilities that meet regulatory and environmental standards.

With a strong annual growth rate and added investments, the cold storage market presents substantial opportunities for stakeholders and positions itself as a vital pillar of the modern global supply chain, according to the summary.

Rising incomes, urbanization and evolving dietary habits are causing increased consumer demand for perishable products such as fresh fruits, vegetables and other food items, the research says. As a result, the cold storage market is expected to continue to grow.

Manfredi Cold Storage in Kennett Square, Pa., and Thermal Technologies in Blythewood, S.C., are among the U.S. companies that are making strides in this field.

Growing with the times

Manfredi has some projects underway, said Jaclyn Manfredi Basciani, director of sales and marketing, and Thermal Technologies has made advances in ripening rooms, said David Byrne, vice president.

Manfredi Cold Storage just opened its 20,000-square-foot dry warehouse building that will store packaging for all its customers in the Kennett Square facility, Manfredi Basciani said.

Construction also is underway on a 5,000-square-foot drivers’ lounge and cafeteria for drivers as well as the company’s employees.

“The drivers lounge will feature kiosks for automated check-in on the first floor, and the second-floor cafeteria will offer daily menus, prepared foods, snacks and coffee,” Manfredi Basciani said.

Construction is also underway that will add infrastructure for an additional 2,000 pallet positions at the Kennett Square facility, bringing the total to 8,000 slots.

Site work has been completed for an additional 10,000 pallet positions at the firm’s Pedricktown, N.J., location, she said. All electric and refrigeration infrastructure is in place.

Manfredi Cold Storage in Kennett Square handles product from throughout the world, Manfredi Basciani said, and specializes in chilled fruit, food and frozen food stuff requiring temperatures from zero to 55°F.

The company has computerized controls to maintain correct temperature in its cold storage facilities and uses bar-coding and radio frequency technology for inventory accuracy to ensure product is stored and shipped on-time, Manfredi Basciani said.

“On the produce side, we handle everything from berries, kiwi, citrus, grapes, stone fruit, avocado and melons, just to name a few,” she said.

Direct importers, produce shippers and growers are the company’s main produce customers. Imported fruit from around the world accounts for about 90% of the firm’s business.

In all, family-owned Manfredi Cos. offers food-grade cold storage solutions, consolidation, repacking, precooling, cold treatment, ripening, inspection and reconditioning services, Manfredi Basciani said.

Ripening rooms play an essential role in the retail cold chain of today’s modern distribution center, says David Byrne, vice president of Thermal Technologies, Blythewood, S.C.

(Photo courtesy of Thermal Technologies)

A focus on ripening for retail

Ripening rooms play an essential role in the retail cold chain of today’s modern distribution center, said Byrne of Thermal Technologies. The biggest reason for that is bananas, he said.

Byrne said his fascination with banana ripening started in the early 1990s, when he worked for Chiquita.

“Bananas were already the No. 1 produce commodity for retailers, but [it was also] one that was difficult to control in terms of quality, appearance and shrink,” he said.

That changed in the mid-1990s, when Thermal Technologies introduced its TarpLess pressurized ripening room system, which he said gave retailers unprecedented control over banana quality, color, uniformity and consistency.

Byrne said he joined Thermal Technologies because he felt the system could be a game changer for bananas.

“Thermal Tech has played an integral part in the massive expansion of retail [distribution centers] over the last 30 years, giving them unique insight into how the push for ever-greater retail efficiency and profit has made commercial ripening rooms virtually indispensable,” he said.

Bananas have maintained their No. 1 spot at retail when it comes to overall sales and profit, he said. To keep them in the top spot, however, it’s important for retailers to meet consumer expectations of having high-quality bananas on display or delivered by their favorite store.

Thermal Technologies helps accomplish that by working with clients to construct rooms for bananas, avocados, pears and even multi-fruit rooms that provide ripening capabilities for multiple commodities, Byrne said.

Thermal Technologies’ clients include Walmart, Kroger, HEB, Albertsons, Sobeys and Wegmans.

“We continue to work with our clients, their DC contractors, investors and stakeholders to deliver customized, state-of-the art ripening solutions that meet their needs in the quickest and most cost-efficient way possible and with the fastest return on investment,” Byrne said.

Allen Lund Co. names ALX TMS manager

Mon, 14 Apr 2025 14:51:57 GMT

Allen Lund Co., a national third-party transportation broker, has promoted Jessica Haney to manager of ALX TMS, its internal transportation management system.

Haney will report to Mike Terry, senior director of DevOps.

“As my first hire when we launched the ALX TMS platform, Jessica has played a pivotal role in the remarkable growth and evolution of ALX,” Terry said in a news release. “Her contributions to the design, enhancement, and rollout of our core TMS platform have been invaluable. Over the past 13 years, Jessica has consistently demonstrated her dedication by delivering creative solutions that address the evolving demands of our industry and the needs of our end users. Her unwavering commitment to our user community has been a cornerstone of our success. I’m incredibly proud of everything she has achieved at ALC and for our team, and I’m excited to see her excel in this well-earned leadership role.”

Haney joined Allen Lund Co. in 2008 in its Charlotte office as a transportation broker. She joined the ALX team in 2012 as a product developer.

“Jessica has been part of ALX since its inception, and she has done a great job in customizing and enhancing the product, supporting the growth of our company over the past several years,” said Chetan Tandon, chief information officer for Allen Lund Co. “Jessica has played a huge role in developing features in ALX and keeping up with the latest tech enhancements in the freight industry.”

Podcast: New innovations in produce shipping

Thu, 20 Mar 2025 19:23:05 GMT

Imagine you’re shipping a 40-pound box of broccoli, of which, 20 pounds of it is ice and another 20 pounds of it is the broccoli itself. Wouldn’t it be more efficient if you were able to ship more broccoli and reduce the ice?

That’s exactly what Verdant Technologies is hoping to solve with its HarvestHold product, a 1-methylcyclopropene-based postharvest solution that extends the usable product life of fruits, vegetables and flowers by an average of 40-50%. HarvestHold is

Matthew Aronson, chief revenue officer of Verdant Technologies, joined the “Tip of the Iceberg” podcast to discuss the move away from ice in shipping fresh produce and the residual effects it can have.

Aronson said that HarvestHold’s use extends far beyond fresh broccoli into other fresh produce, and floral, commodities.

One thing he said many broccoli growers and shippers will see is freight savings. When a 40-pound box of broccoli is filled with 40 pounds of broccoli and not just half, it cuts down on the number of boxes and also reduces the weight.

“You’re paying to ship water and ice thousands of miles,” he said. “If you go from a full truckload with ice and broccoli — about, 1,000 cases — you take that ice out, you can now fill up that truck, so you go from about 1,000 cases to 1,500, and you pick up another 400 or 500 cases in the same truck that you’re paying for.”

Aronson said Verdant Technologies’ HarvestHold is an easy product to apply in the field as workers harvest the crop, which means workers also don’t have to handle ice when harvesting.

“It just really integrates very seamlessly with their operation,” he said.

Aronson said there’s a great sustainability story, too, with reduced carbon footprint and water use.

There’s also the added benefit of eliminating a potential contaminant as the ice melts and the potential for slips and falls, which is a major selling point for retailers.

“The average payout for a slip falls instant in the U.S. is about $50K,” he said. “When you zoom out a little bit, 60% of all grocery retail claims are from slips and falls. And what does that mean from a dollar standpoint? On an annual basis retailers are spending upward of $450 million a year to defend slips and falls.”

Truck rates up slightly in the past year

Tue, 06 Aug 2024 15:07:18 GMT

Average spot rates for refrigerated trucks are up slightly compared with year-ago levels, according to data collected by the USDA.

The USDA reported that the average price for refrigerated trucks was $3.79 per mile on July 23, up 5% from $3.60 per mile on July 25 a year ago.

The U.S. average price per gallon of diesel was $3.79 on July 22, down 12.6 cents compared with a year ago.

Average per mile refrigerated truck rates over the past year:

July 4, 2023 — $3.59.
Aug. 1, 2023 — $3.57.
Sept. 5, 2023 — $3.69.
Oct. 3, 2023 — $3.41.
Nov. 7, 2023 — $3.33.
Dec. 5, 2023 — $3.21.
Jan. 2, 2024 — $3.44.
Feb. 6, 2024 — $3.48.
March 5, 2024 — $3.39.
April 2, 2024 — $3.37.
May 5, 2024 — $3.57.
June 4, 2024 — $3.48.
July 2, 2024 — $3.64.
July 23, 2024 — $3.79.

Source: USDA

DAT: Truckload freight volumes slipped in June after a robust May

Mon, 05 Aug 2024 14:57:32 GMT

Beaverton, Ore.-based DAT Freight & Analytics has reported spot truckload rates rose in June despite declines in the number of loads moved.

The DAT Truckload Volume Index, an indicator of loads moved during a given month, retreated from all-time highs for van and refrigerated, or reefer, loads in May:

Van TVI — 266, down 9% month over month.
Reefer TVI — 199, down 11%.
Flatbed TVI — 279, down 7%

Year over year, the van and flatbed TVI dipped 3% and 5%, respectively. The reefer TVI was up 7% compared to June 2023.

“The month ended strong for dry van freight, with nearly 25% more volume moving during the final week of June compared to last year,” Ken Adamo, DAT chief of analytics, said in a news release. “While demand for trucking services entered July on a high note, we expect freight activity to ease during the summer. This remains a challenging market for freight carriers and brokers.”

Despite the volume decline in June, DAT reported spot rates rose for all three equipment types. The spot van rate was $2.07 per mile, up 6 cents from May. Spot reefer rates were $2.45 per mile in June, up 4 cents from May. Spot flatbed rates were $2.53 per mile in June, up 1 cent from May.

The average van line-haul rate was $1.64 a mile, up 6 cents compared to May, while DAT said the reefer rate gained 5 cents to $1.99, and the flatbed rate increased 1 cent to $2.02. Line-haul rates subtract an amount equal to an average fuel surcharge.

National average rates for contracted van and reefer freight ticked higher in June, with contract reefer rates pegged at $2.81 per mile, up 2 cents from May.

National average van and reefer load-to-truck ratios increased for the fourth straight month in June, reflecting a combination of higher demand and fewer trucks in the marketplace, according to DAT.

John Greene Logistics invests in technology

Fri, 02 Aug 2024 19:16:03 GMT

John Greene Logistics & Greene Transport Cos. is investing in advanced GPS tracking and real-time temperature monitoring systems for its refrigerated fleet, says Michael Fernandes, director of sales.

Fernandes said the investment will pay dividends for the Titusville, Fla.-based company.

“This integration enhances our ability to provide precise delivery times and ensures that our customers can track their shipments in real-time, guaranteeing peace of mind and improved supply chain transparency,” Fernandes said.

For over 62 years, John Greene Logistics Co. and its trucking division, Greene Transport Co., have provided refrigerated transportation via team and single drivers within Canada and the U.S., he said.

“Our advanced refrigeration technology ensures the produce remains fresh throughout the journey, maintaining optimal temperatures and reducing spoilage risks,” he said. “Our team is trained in handling perishable goods, ensuring they reach their destination in the best possible condition.”

Looking ahead, Fernandes said the next six months should be an interesting period and could be a turning point in the transportation sector depending on consumer demands and needs.

“We anticipate fluctuations in the market, with certain states experiencing increased shipping volumes and a potential hike in rates due to heightened demand,” he said. “Conversely, other regions may see a decrease in shipping volumes, affecting overall market dynamics. Currently, the market favors shippers, but as capacity and demand balance out, we expect a gradual increase in rates. Our focus will remain on adapting to these changes to ensure consistent and reliable service for our customers.”

Year in Produce 2023: Freight rates ease, but conditions expected to tighten in 2024

Wed, 27 Dec 2023 17:54:43 GMT

Editor’s note: The following is one of the issues highlighted in The Packer’s Year in Produce 2023 review .

Freight costs for produce shippers declined during 2023, but the rate dip may be setting up a return to firmer pricing in 2024, some experts say.

In coverage Aug. 7, The Packer reported a substantial drop in truck rates compared with 2022.

The story noted that freight costs in January 2022 for a load of refrigerated produce out of California to the East Coast averaged $5.19 per mile, according to the USDA. By late July, the rate declined to $3.55.

The industry’s transportation woes started in 2020 when the pandemic shut down driver training schools, resulting in a shortage of truck drivers, Dean Croke, principal industry analyst at DAT Freight & Analytics, with headquarters in Beaverton, Ore., and Denver, said in August.

But when Paycheck Protection Program loans ended July 2020, Croke said there was a rush to join the trucking industry from people who had never been in the industry or who had been driving for a larger fleet and bought their own trucks because rates were so high.

At the same time, during the second half of 2020, diesel prices dropped to $2.40 a gallon, and spot rates for freight increased about $1 per mile — from $1.30 to $2.30, Croke said.

“The diversion of those two data points away from each other was really what started the whole ball rolling,” Croke said in August.

After PPP loans ended, about 100,000 carriers joined the ranks of the trucking industry over a 12-month period.

Croke said then that low rates of 2023 are bound to face upward pressure again.

“We’re in the bottoming-out part of the market,” he said in August

Dip in the road

USDA truck rate data revealed that the average per mile cost for refrigerated trucks dropped from $3.88 per mile in early January to $3.69 per mile by July 4 and to just $3.21 per mile by Dec. 5.

Truck rate cycles follow a familiar pattern, according to the DAT Freight & Analytics 2024 Freight Focus report.

“When truckload capacity tightens, rates rise. When rates rise, new carriers enter the marketplace and large fleets add trucks,” according to the report.

“As truckload capacity increases and demand softens, rates fall,” the report said. “When rates fall, carriers leave the marketplace and capacity once again tightens. At the moment, we’re in that final phase, waiting for the other shoe to drop.”

A mid-December survey of industry professionals in the LinkedIn Fresh Produce Industry Discussion Group indicated that most who responded to the poll expects rates to rise in 2024.

Asked in mid-December to respond to this statement, “Refrigerated truck rates for produce in 2024 will be …”

With about 80 votes casts, the results on Dec. 18 were:

About the same rates as 2023 — 27%.
Higher rates than 2023 — 48%.
Lower rates than 2023 — 25%.

Looking ahead

DAT’s 2024 Freight Rate Focus report said the pandemic-fueled disruptions of 2020 and 2021 stretched routing guides beyond their threshold and pushed truckload rates to record highs. The high rates attracted a record number of new carriers, with the number of for-hire interstate carriers nearly doubling.

While truck rates are bound to rebound to some degree, the DAT report said it may not be until mid-2024.

“The truckload market cycle is bottoming out as carriers continue to exit the industry,” the report said. “However, without any significant change in truckload demand expected before the second quarter of 2024, the market may remain in its current state for quite some time – likely until at least midway through 2024.”

Other shocks to the global supply chain, including war, could change pricing quickly, the DAT report said.

DAT’s prediction, the report said, is that current market conditions will continue until late Q2 when the market should finally find equilibrium.

“The truckload market should revert with spot rates rising over contract rates sometime in the first half of the year, and demand will normalize as the supply chain disruptions that began during the pandemic work their way out of the system,” the report said.

Average U.S. refrigerated truck rates (per mile)

Jan. 3 — $3.88.
Feb. 7 — $3.72.
March 7 — $3.48.
April 4 — $3.43.
May 2 — $3.37.
June 6 — $3.58.
July 4 — $3.59.
Aug. 1 — $3.57.
Sept. 5 — $3.69.
Oct. 3 — $3.41.
Nov. 7 — $3.33.
Dec. 5 — $3.21.

(Source: USDA)

Frutura acquires Sun Belle and Giddings Fruits, advancing berry business

Mon, 16 Oct 2023 17:48:38 GMT

Frutura has inked two agreements that will underpin the company’s berry business and strategy. The California-based global fruit sales and marketing company has acquired both Giddings Fruit and Sun Belle in a deal that Frutura CEO David Krause has called, “the most significant acquisitions that Frutura has made to date.”

Both companies bring an established, year-round berry business to Frutura. Giddings Fruit, based in Santiago, Chile, is a year-round supplier of organic and conventional cherries and berries, with packing operations in Mexico and South America. Likewise, Chicago-based Sun Belle is a year-round marketer of conventional and organic berries sold under the Sun Belle and Green Belle Brands and boasts well-developed U.S. distribution and infrastructure that includes five warehouses.

In the months ahead, Frutura anticipates a smooth integration of the three companies, as Sun Belle and Giddings have enjoyed a close, decades-long relationship. In recent years, the two berry companies have worked together on distribution, marketing and logistics, with Sun Belle serving as the exclusive sales agent for Giddings’ berries grown in Mexico.

Related news: Coca-Cola enters fresh produce category in deal with Frutura

After the acquisition, Sun Belle Founder Janice Honigberg will continue as CEO and Giddings Fruit’s Julio Giddings will transition to chair emeritus. Both leaders are slated to join Frutura’s board of directors, according to a news release.

The Packer spoke with Frutura’s CEO David Krause, about what these major acquisitions mean and how this “unicorn” is a capstone for the company’s portfolio and growth strategy.

Editor’s note: The following has been edited for length and clarity.

The Packer: First off, congratulations! I’m so curious how these two deals came together. Can you share what it was like to acquire both Sun Belle and Giddings Fruit?

Krause: It’s exciting for us, as you can imagine, to acquire two unique, very distinct businesses that have been operating and working together for quite a long time. There’s a strong relationship between the two of them. The deal is also the fulfillment of our strategy to get into the berry space.

To be able to acquire both businesses, it’s been quite a process, as you can imagine. [Both Sun Belle and Giddings Fruit] see the value in the Futura platform and being part of a bigger organization that’s focused on high-growth crops. We’re excited to have them join the family and add strategically to the berry category for our customers and for consumers.

When did you begin considering acquiring these two specific companies?

Clearly, berries have been on our radar from the beginning. What makes these two companies unique is that the fact that they are a producer and a distributor working together for a long period of time, and they have a 52-week supply for customers in the berry category.

That, for us, hit a bullseye on all the things that we were looking for: high quality, right genetic varieties, 52-weeks of the year supply, multiple production regions around the globe [along with] great customer relationships and great management teams that are all going to stay on.

For us, it was a perfect, unicorn type of an event — you just don’t get these kinds of opportunities very often, if ever. We’re very excited about, it because it feels unique for us.

I think it’s fair to say that they tried to put the companies together in the past, and it just didn’t work out. We were lucky to be that company that had a unique proposition that they understood, and they got. It was the right moment in time for both owners and owner groups to say, “This is the right thing for us to do,” and to put the deal together. Frutura was that third party [that] brought them together, finally. Any good deal worth pursuing, as you know, is worth taking your time.

It’s consistent with the strategic acquisitions you’ve made in the past year, too. With the upcoming International Fresh Produce Association Global Produce & Floral Show, and in the months ahead, what can we expect to see from Giddings Fruit and Sun Bell?

It’s going to be exciting, as you can imagine. We were able to secure space side-by-side, so we have a bigger, broader booth with representatives from the companies across the whole platform. We’re very excited about the coming week and being able to have customer visits and talk about the integration of these two businesses.

As we go into the next six months to a year, we’ll do what Futura does with all our acquisitions. We ask, “How can we help them become better at serving their customers and consumers?” From there we bring to bear the rest of the resources within Frutura — whether that’s growing a specific product line or filling periods of time where they’re a little short on supply.

We see a very busy 12 months ahead but, at the same time, it’s unique because both these companies have been working together for a long, long time. Now we have this unique opportunity to put them in common ownership and unlock that value for our customers and grower co-partners as well.

As you look ahead, are there any challenges that you foresee?

I wouldn’t say challenges — opportunities are what gets me excited the most. Other Frutura divisions are growing berries as well, so we can flow that product and help supply all our customers and markets.

Between the principles [at Sun Belle and Giddings Fruit], they’re going to teach me what they need and how I can help bring that to bear. Whether that’s a new supply of blackberries out of Morocco for the European market, asking, “How [do] we fill in these things that we need from a supply perspective for global marketing?” That’s something that gets me excited.

The potential is amazing with these two well-run companies. We’ll be able to unlock value that they both recognize, but weren’t able to do, separately.

You mentioned that this deal felt like a capstone for Frutura. What makes these two acquisitions central to your plan?

Getting back to the berry strategy was a key element. Now that we’ve acquired all these different companies, we’ve gotten to the scale that we’ve been looking at, and this kind of for us as a capstone acquisition. I won’t say that it totally fulfills everything that we want, but it really is the crowning achievement of the strategy that we set out to grow into. For us, it’s kind of a double award: We’re getting into the berry space, and we’re also achieving the size, scale and depth of crops that we wanted to all along. For us, it’s a moment to celebrate.

Related: Building a one-stop avocado shop: Q&A with Frutura avocado whisperer Stephen Fink

Produce exports impeded by political unrest in Guatemala

Fri, 13 Oct 2023 14:29:37 GMT

Business as usual has hit a major roadblock, quite literally, for one fresh produce export heavyweight. In recent days Guatemala has faced a series of has logistical delays due to the political unrest in the region.

According to the Guatemala Produce Trade Association, local news is reporting that political protests and demonstrations have intensified and resulted in road closures throughout the country. These road blockades have created a domino effect in some areas, leading to fuel shortages along with highway traffic delays and complications. On Oct. 12, NPR reported that eight days of peaceful protests in Guatemala have turned violent.

As a result of the blocked roads and protests, many Guatemalan fresh fruit and vegetable exports are experiencing major logistics challenges and delays.

U.S. consumers rely on fresh fruits and vegetables grown Guatemala; in 2022 alone, the U.S. imported over 6 billion pounds of fruits and over 305 million pounds of vegetables from the country, according to the USDA.

Can fresh produce purveyors expect regular shipments of exports to resume from Guatemala anytime soon?

“As GPTA, we are severely impacted both emotionally and professionally due to the political issues that are transpiring in Guatemala,” Priscilla Lleras, GPTA executive director, said in a news release. “As news becomes available — we will make every effort to keep industry and our customers informed. Until this situation subsides, we have our prayers and hearts going out to those on the front lines in Guatemala.”

Another downstream effect of the political unrest, according to the GPTA, is that the regional chaos has “forced many maritime and trucking companies in Guatemala to reconsider and restructure operational strategies until they can secure measures that can be implemented to protect the Guatemalan people and the lives of those operating transits and logistics.”

Despite challenges, several GPTA members still plan to attend the International Fresh Produce Association’s Global Produce & Floral Show in Anaheim, Calif., Oct. 19-21, to display and discuss products and services, according to the release.

Related: NatureSweet — Tariffs could cause U.S. consumers to pay much more for fresh tomatoes

Encouraged by strong Q2, SpartanNash tees up new strategy

Mon, 21 Aug 2023 19:08:15 GMT

Grand Rapids, Mich.-based food solutions company SpartanNash is poised to make good on its long-term plan to reposition its go-to-market functions, with heady expectations of saving approximately $20 million in savings by the end of 2023.

According to a news release, the strategy has been made possible through changes across the entire business, including supply chain, merchandising and marketing innovation initiatives.

SpartanNash reported strong financial results in the second quarter of 2023. The multichannel food company, which has complementary business segments in both food wholesale and grocery retail, reported second-quarter net sales of $2.31 billion, an increase of 1.7% compared with $2.27 billion in 2022’s second quarter, according to the release.

“Our team delivered solid results in the first half of 2023, leveraging transformational initiatives for growth and value. We are encouraged by the success to date, but also believe there is a long runway of benefits that will help us achieve our long-term strategic plan,” SpartanNash President and CEO Tony Sarsam said in the release.

Related news: SpartanNash to gather indie grocers at annual Food Solutions Expo

With progress underway, SpartanNash said in the release that it is repositioning its go-to-market strategy, centered on customers and implementing its refreshed go-to-market plan in the third quarter.

“We are now entering the next phase of our transformation, bolstering our go-to-market strategy and building on our ‘signature strength’ of being the most customer focused, innovative food solutions company,” Sarsam said. “All of the elements of our long-term strategic plan differentiate SpartanNash as a growth-oriented organization, which further positions us to drive profitability and increase shareholder value.”

SpartanNash Q2 earning - by the numbers

According to the release, other notable second quarter 2023 earning statistics include:

Retail comparable sales increased 3.9%, compared with the second quarter of 2022.
Net earnings totaled $19.5 million, compared with $5.1 million in the second quarter of 2022.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was reported as $66.1 million, compared with $61.8 million in the second quarter of 2022.
Cash generated from operating activities was $49.7 million during the first half of 2023, compared to $28.5 million in the first half of the prior year.
SpartanNash returned $33.6 million to shareholders during the first half of 2023 through $18.5 million in share repurchases and $15.1 million in dividends.

Wholesale and retail performance

Net sales for wholesale increased $31.9 million, or 2%, to $1.63 billion from $1.60 billion in the second quarter of 2022. The growth in net sales was due primarily to the inflationary impact on pricing in the quarter, partially offset by marketplace demand changes from a certain national account, the release said.

SpartanNash’s wholesale supply chain network includes independent and chain grocers, national retail brands, e-commerce platforms and U.S. military commissaries and exchanges. The company also distributes products throughout the grocery store, according to the release.

Additionally, second-quarter net sales for retail increased $6.6 million, or 1%, to $679 million from $672.4 million in the second quarter of 2022. Retail comparable store sales grew 3.9% for the quarter, due primarily to the inflationary impact on pricing, according to the release. Lower fuel prices in the quarter reduced reported net sales by 2%. Retail sales include the scaled regional retail segment operated by SpartanNash with 144 brick-and-mortar grocery stores, in addition to pharmacies and fuel centers, the release said.

Salinas Valley growers get nimble to address supply gaps

Mon, 08 May 2023 12:42:23 GMT

If the salad bowl of the world were a bustling restaurant, the chef would be in the weeds right now.

Assessing demands and lining up a steady supply of orders timed perfectly, amid a rush of customers, demands the laser focus and nimble creative problem-solving skills of a masterful chef — or farmer.

That’s essentially the scenario playing out for growers in California’s Salinas Valley. Consecutive floods during Salinas Valley’s typical early planting periods have caused harvest delays that will continue to ripple through the supply chain in the coming months.

That’s making central California growers put their skills to the test to ensure a steady supply despite downstream challenges.

Tallying storm damages

In addition to keeping up with supply, growers are scrambling to assess the cumulative damage to acreage and infrastructure affected by recent flooding. Accounting for losses presents a complex web of factors for growers, agency officials and lawmakers to consider in the recovery from the unprecedented weather events.

The Monterey County Agriculture Commission will have to take into consideration not only the January flooding event, where most of the damages were attributed to future crop loss, but also the second storm in March, Grower-Shipper Association of Central California President Christopher Valadez told The Packer.

“[The March storm] flooded not only those same lands again, but also affected more and different acreage,” Valadez said. “In March, many farmers had crops planted, unlike January. Whether you had crops planted or you didn’t have crops planted, you were either were flooded again or flooded anew. It basically extended the clock and lengthened the delay to when you can get in that field again.”

The kicker is that, unlike commodity crops, most specialty crops like lettuce and short-season vegetables don’t have crop insurance to cover losses.

Related news: What’s ahead for California table grapes, strawberries and cherries

“There’s a gap regarding relief services or direct financial relief for farming operations that were directly impacted by floods. The type of row crop grown … corresponds to what the income is for that acreage which bears that crop,” Valadez said. “The [crop insurance] programs that appear to exist don’t fit well with the disaster related needs — they’re getting missed.”

Avoiding supply gaps

While U.S. lawmakers are currently pressing for a disaster relief package in Congress to help farms and ranches recover from storm and flooding damage, many growers are finding creative ways to solve for gaps in harvest.

“[Growers] are going to have to flex out and identify some other options so that we care for our customer base and to continue to offer and provide the supply that we’re contracted to provide,” Valadez said.

Growers in the Salinas Valley are nimble and are accustomed to creative problem-solving. An unexpected silver lining in the recent impatiens necrotic spot virus crisis in Salinas during the 2022 season was that it incentivized growers to diversify their planting regions, according to Valadez.

Related news: Grower-shipper group aids farmworker community in flooding aftermath

“For those that were able to accelerate their diversity, the disease issue pushed to them to step up the pace of that acceleration. That happened before the flood,” he said. “Even though [the flooding and recent INSV issues] are different, both ultimately negatively impacted yield.

“So, you have farming operations — fortunately or unfortunately — that have very recent experience knowing where they’re able to reduce their risks by diversifying the variety of [growing] regions from which they’re deriving their supply,” Valadez continued.

While none of the adjacent growing regions will replace the Salinas Valley supply, largely due to sheer scale and magnitude of the region, these supplementary regions can help alleviate gaps in years like this one, he added.

“Growers that have flexibility have been working through these challenges and some have put themselves in better positions — relatively speaking — from a resiliency perspective,” Valadez said. “They’re able to continue to work with their customers to identify where the continuity of their supply is coming from.”

The Nunes Company’s John Amaral is confident that they will get through what is shaping up to be a challenging transition this year, reporting that the company is currently harvesting vegetables out of the Oxnard and Salinas growing regions under the Foxy and Foxy Organic brands.

“Everyone has had differing degrees of losses due to the weather in the Salinas Valley,” Amaral told The Packer. “Our operations were impacted like many within the industry. We are dealing with planting delays but overall are in good shape and anticipate no issues in the ability to provide quality products to our customers.”

Unseasonably cold temperatures in February and March disrupted the normal growing cycle, putting the grower behind schedule, Amaral added.

“Every year is different, and each transition is different with its own challenges and opportunities,” he said. “The transition from Yuma [Ariz.] to Salinas has been unprecedented due to the colder-than-normal temperatures and greater-than-normal rainfall.”

Muzzi Family Farms, which grows in central California, Yuma and Mexico also anticipates a challenging few months ahead.

“When fields are flooded by the river in January, food safety protocol requires waiting 30 to 60 days. That waiting period clock started over when we got the second flood in March,” Paul Mocettini, vice president of sales at marketing at Muzzi Family Farms, told The Packer.

To ensure a consistent supply, like The Nunes Company, Muzzi Family Farms delayed the transition to California, keeping the desert rotation active during the bridge period.

“We stayed an extra week in Yuma and moved north on Easter weekend,” to avoid gapping, Mocettini said.

Reeling from another round of storms, California growers fight to recover farmland from flooding

Thu, 23 Mar 2023 15:27:29 GMT

California residents, farmers and ranchers have endured two intense storm systems in recent months that brought significant rainfall, snow and flooding to many areas. Storm-ravaged Californians are now bracing for another round of late-season weather with potentially more rain, wind and flooding in the central and southern parts of the state, according to the National Weather Service.

What does this onslaught of extreme weather mean for California growers kicking off their spring growing season?

“Farmers in the Salinas Valley were picking up the pieces from January’s flood event when hit by the March storm and subsequent flooding,” Chris Valadez, president of the Grower-Shipper Association of Central California, told The Packer. “We also know some areas didn’t suffer direct flooding in January that flooded this time around; thus, the number of acres flooded will be more significant.

“People are hurting,” Valadez continued. “An extraordinary effort has been and remains underway to pick up the pieces from not one but two successive devastating flood events that impacted farms, farmworkers and the services sector that depend upon a viable, operating agricultural economy.”

Related news: California Strawberry Commission shares update on devastation from river flooding

President Joe Biden, at the request of California Gov. Gavin Newsom, recently declared a state of emergency for 43 counties across the Golden State and is working to provide economic relief to the farm and food workers who need it, regardless of immigration status and storm damage.

“These farmers are highly resilient and will come back stronger,” said Valadez said.

What to expect out of California fields this spring

The tenacity and determination of growers notwithstanding, it’s inevitable that the back-to-back storms will affect what growers are able to harvest and ship in the weeks ahead.

“Weather has very much hurt our Salinas-area growers, with delays and disaster meaning lost fields due to flooding and other setbacks,” Andy Martin, president of A&A Organic Farms, told The Packer.

Not only is it challenging to farm under storm and flood conditions in much of California right now, once harvested, transporting perishable produce through the state could be hindered.

“Business is also off due to all the road closures from the excess water and flooding,” Martin said.

Flooding events have caused an issue not often seen in California in recent years: oversaturated soil. After so much precipitation, farmland across many parts of the state is like a sponge that has soaked up all the water it can possibly hold.

“Many Salinas-area spring and summer plantings were washed out or not planted because it was too wet. We could see some shortages of some products in a few weeks,” Martin said.

In the meantime, the Watsonville-based A&A Organic Farms is leaning on its strong supply of organic tomatoes, strawberries, bell peppers, oranges and garlic from Mexico while its California growers recover. Not all the organic grower’s California produce has a gap, however, as Martin said A&A Organic Farms has a supply of turmeric available from Santa Cruz County, Calif. along with its Fiji-sourced turmeric.

Where consumers will likely see shortages

“Leafy greens harvest season generally starts in April and May in the Salinas Valley,” April Ward of the California Leafy Greens Marketing Agreement told The Packer. “January and March rains and flooding will likely have an impact on supply in the spring and early summer.”

Valadez from the Grower-Shipper Association of Central California believes the majority of Salinas Valley lucked out this time. In early March 2023, the Salinas River that runs through the center of the valley carried more water than it could handle within its channel, forcing water to move laterally into adjacent agricultural areas, he said.

“More than three-quarters of all crop acres were not flooded,” he continued. “So, you will see crops harvested and shipped from the Salinas Valley for the spring harvest.”

Related news: From fresh berries to lettuce, what we now know about potential California crop losses from flooding

However, it’s not all good news for Salinas Valley growers.

“Many farms have suffered damaging flooding and, unlike the January flood, had crops planted and suffered direct crop losses. Therefore, economic damages are likely to be more significant when compared to the impacts tallied from the January flood event,” Valadez said.

How the industry can support growers dealing with disaster

“Our growers are resilient and fight hard to keep the food coming for us to sell. We appreciate all the support our customers give to them,” said Martin of A&A Organic Farms.

“The LGMA and other organizations have been providing growers and shippers with a variety of resources to help them navigate the situation,” Ward said. “Specifically, LGMA has provided food safety resources related to flooding, including a webinar featuring Dr. Trevor Suslow and a fact sheet outlining steps to take.”

Valadez says individuals wishing to further support the California farm and grower community can donate to The Community Foundation for Monterey County’s storm relief fund.

“[You] can designate relief to victims from this flood event and specify funding towards exact areas, like immediate [or] basic needs — which include clothing, diapers and wipes — and personal care products, as well as help with immediate financial needs,” he said.

The Grower-Shipper Association of Central California also has partnered with Clinica de Salud Del Valle De Salinas to provide shelter to residents from flooded areas, Valadez said. This includes residents in the farmworker community of Pajaro, where the association and the health care provider are actively providing “medical care, including general screenings, as well as medication replacement for those who were forced to evacuate their homes quickly to escape fast-rising water.”

“GSA was recently awarded an emergency grant to help with medical care for farmworkers, including those impacted by recent storms. GSA thanks Clinica for continuing to partner with us as we work to achieve our mission of advancing families, food and farming in our region,” Valadez said.

2022 was a banner year for U.S. farm exports, says agriculture secretary

Tue, 14 Feb 2023 21:49:01 GMT

The American agricultural sector posted its best export year ever in 2022, with international sales of U.S. farm and food products reaching $196 billion, says Agriculture Secretary Tom Vilsack.

The numbers speak for themselves: Final 2022 trade data released earlier this week by the U.S. Commerce Department shows that U.S. agricultural exports increased 11%, or $19.5 billion, from the previous record set in 2021.

“This second consecutive year of record-setting agricultural exports, coupled with a record $160.5 billion in net farm income in 2022, demonstrates the success of the Biden-Harris administration’s efforts to create new and better markets for America’s agricultural producers and businesses,” Vilsack said in a statement.

The record-breaking sales numbers are a result of multiyear USDA investments and support along with fostering long-term partnerships that are beginning to show big returns.

Related news: Value of U.S. fruit and vegetable imports rises by 10% in 2022

“We’re strengthening relationships with our trading partners and holding those partners accountable for their commitments. We’re making historic investments in infrastructure to strengthen supply chains and prevent market disruptions. We’re knocking down trade barriers that hamper U.S. producers’ access to key markets. And we’re continuing to invest in export market development programs, partnering with industry to bring high-quality, cost-competitive U.S. products to consumers around the world,” Vilsack continued.

The value of sales increased in all the U.S.’ top 10 agricultural export markets, according to a news release:

China.
Mexico.
Canada.
Japan.
European Union.
South Korea.
Taiwan.
Philippines.
Colombia.
Vietnam.

What’s more, sales in seven of the export markets — China, Mexico, Canada, South Korea, Taiwan, the Philippines and Colombia — set records.

“While we remain committed to our established customer base around the world, we are also setting our sights on new growth opportunities in places like Africa, Latin America, the Middle East and Southeast Asia. Overall, there were 30 markets where U.S. exports exceeded $1 billion in 2022 — an increase from 27 markets in 2021 — demonstrating the broad global appeal of American-grown products,” Vilsack said.

The top commodities exported by the U.S. in 2022 were soybeans, corn, beef, dairy, cotton and tree nuts, which together made up more than half of U.S. agricultural export value. International sales of many U.S. products — including soybeans, cotton, dairy, beef, ethanol, poultry, soybean meal, distilled spirits and distillers’ grains — reached record values.

“At the end of the day, agricultural trade is all about opportunities — for America’s farmers and ranchers, for our rural communities, for the U.S. economy and for our global customers. We extend our gratitude to the Americans across the agricultural industry who create and support those opportunities by growing, processing, selling and shipping our farm and food products to the world,” Vilsack said.

Salinas Valley infrastructure needs a makeover: Q&A with Jim White at Growers Ice

Fri, 20 Jan 2023 17:26:13 GMT

The Salinas Valley often evokes images of images of endless rows of salad greens thriving under a sunny California sky. The region nicknamed “Salad Bowl of the World” is known for producing the bulk of lettuce and leafy greens in the U.S.

Less common images of the Salinas Valley, however, include the vast stretches of cooling facilities and the complex post-harvest infrastructure that dot the region and are critical to transporting delicate greens from fields to grocery aisles with freshness and quality intact.

Jim White wants to change that perception. As CEO of Growers Ice, a real estate company that specializes in processing, cooling and cold storage of fresh produce, White runs a 400,000 square-foot cooling facility in South Salinas, and he thinks it’s high time to shine a light on infrastructure in his region.

Related news: Rain brings long-term gain but short-term harvest delays for California citrus

White met with The Packer to discuss the pressing need for infrastructure updates in the Salinas Valley, a need made more urgent by recent flooding that has tested aging facilities. With water lapping at the doorstep of businesses, White remained optimistic, crediting the benefits of long-term thinking that doesn’t rattle too easily.

Editor’s Note: This interview has been edited for length and clarity.

The Packer: I appreciate you connecting with us during what I imagine must be a stressful time for you as your business and your community face severe flooding.

Jim White: It’s busy, no question about that. We’re just implementing all the protocols that you put in place for years and then make sure everybody is following when these situations occur. We’re fine, it’s just managing everything.

As we speak, the Salinas River is probably going to start coming over [state] Highway 68, which is between Monterey and Salinas. The big issue for us — for our facilities and our people, all the grower-shippers that have processing and co-storage facilities — is the industrial waste. Salinas has their ponds, which [are] in close proximity to the Salinas River. We don’t want that to breach, because that’s where all the industrial waste starts clearing before it goes over to the processing plant in Monterey, Calif.

That said, these things have always been an issue and it’s always been an issue for infrastructure, and we’re looking to how we upgrade our infrastructure within the industry.

[Growers Ice] is in the process of upgrading and designing a new facility, which is about a $250 million investment. We’re going to be breaking ground here at the end of the year. Of course, we’re looking at the things that we can do to get ahead of the curve. We’re looking into what can we do to put in new facilities, upgrade the industrial waste, upgrade water, power and those type of things.

The recent extreme weather in the Salinas Valley puts a wrench in many companies’ timelines and plans. How has the flooding impacted your facility build out at Growers Ice?

I don’t think it’s going to impact our build out. We plan on closing the current campus, which is 28 acres in Salinas, Calif., at the end of the 2023 growing season. We’ve been master-planning this for almost five years. I don’t see any issue based on the weather issue that we’re facing right now.

As I say that, I’m going say there’s a big “however” to that statement. The however would be — what impact does this flood have some on some of our growers, as far as the ag land itself? Will the flooding affect production capabilities? This is still unknown at this point in time. We won’t know that for sure until probably March or April of 2023 at the beginning of the growing season.

There is some ag land along the Salinas River — Braga Fresh and Taylor Farms have some places in this area. But I think we’ll be okay. I don’t want to read a crystal ball, but I think we’ll be okay as far as our build out. I’m not concerned about it at the moment.

It seems like, lately, lettuce and salad mix can’t catch a break in California — there are challenges on all fronts right now.

Yes, it has been a challenging year. When you go pick up that bag of salad in the grocery store, please send a word of appreciation, because you don’t know what goes into that bag of salad. There’s a lot of effort that goes into that bag of salad.

Absolutely. What are you most hopeful about in the weeks and months ahead?

I am very optimistic from the investment community. It’s taken the about three years to really introduce institutional investors and educate them on exactly what precooling cold storage assets are. For us in the industry, the concept is pretty familiar. But if you’re not in an industry, it’s not. We have spent a lot of time and a lot of effort just broadcasting education nationwide, and I’m very optimistic because we’ve received a lot of the interest.

In Salinas alone, there’s 4,200,000 square feet of facilities that are an average age of 42 years old. We must deal with that. It’s an important time for us, but we’ve gotten a lot of interest from institutions and other funding capabilities.

I think as an industry we’ve got to continue to come together as the industry to support the education of our workers. We also have got to make decisions and invest in our infrastructure. Sometimes we ignore that, but we’ve got to start putting some money back into our industry, because it’s not going to continue to produce the way it needs to forever.

Source local at scale? iTradeNetwork and Big Wheelbarrow are cracking the code

Fri, 13 Jan 2023 18:47:52 GMT

Balancing locally grown produce promotion while ensuring that shelves are stocked with consistent volumes of high-quality fruits and vegetables 52 weeks of the year is the name of the game for many produce buyers and retailers.

Consumer demand for small, local producers is stronger than ever, with 56% of consumers seeking more locally and regionally grown fruits and vegetables in their produce departments, according to FMI’s 2022 Power of Produce Report. Paradoxically, small producers with 2-acre to 20-acre farms are not typically able to sell to grocery chains due to their limited size. For produce buyers and retailers, offering customers the produce they want while still supplying full cases is a constant dance.

Perishable food supply chain platform iTradeNetwork is trying to the crack the code on this challenge. Partnering with local food platform Big Wheelbarrow, the food-focused tech company is strategically consolidating locally sourced products from small and mid-sized producers on its platform to compete for business with grocery stores across the U.S. and Canada.

“This partnership is a significant move for iTradeNetwork to support hyper localization in the fresh supply chain,” Amer Akhtar, CEO at iTradeNetwork, said in a news release. “With this exciting collaboration, our retail customers can meet consumer demand for local, more sustainable products, reduce shrink and food waste, and hedge against supply chain shortfalls. Providing value to our smaller suppliers is equally important to us. Our networks will enable them to expand their business with existing customers and build net new trading relationships with large retailers that they wouldn’t otherwise have access to. This is incredibly powerful.”

Related news: The Tech World Had The Chance To Meet Real Farmers At CES, And The Reaction Was Surprisingly Good

The partnership is just one step making it possible for grocers to offer local and hyperlocal products that are tailored to specific cities, regions and even neighborhoods. For producers, access to nearby stores of grocery chains can be a significant step toward growing their perishable food business.

“Big Wheelbarrow solves the challenges that smaller producers like me are facing when working with food retailers and help retailers efficiently meet the demand local food,” Wendy Oakes Wilson, general manager of LynOaken Farms in New York, said in the release.

With the Big Wheelbarrow partnership, iTradeNetwork customers can now trade with nearby farms and producers that wasn’t previously on its radar. For grocers, the Big Wheelbarrow platform eliminates the additional overhead to work with smaller producers. Purchased products can be delivered directly to stores or to a distribution center, often the next day or sometimes the same day, according to the release.

“One key thing about this partnership is that it helps eliminate the silo between the DSD and warehouse functions inside grocery chains,” Sam Eder, CEO of Big Wheelbarrow, said in the release. “Those functions sometimes compete unintentionally because they often don’t know what the other is doing. Our platform handles local DSD inventory and purchase data in real time, with iTradeNetwork’s incredible suite of procurement solutions handling the important back end.”