Horticulture New Zealand has welcomed the Government’s endorsement of the Primary Sector Climate Change Commitment, saying it has already started working with its growers on the challenges associated with climate change.
“We believe that audited Farm Environment Plans are a vital tool for the horticulture industry to use to show that it is following good practice in responding to climate change,” says HortNZ Chief Executive, Mike Chapman.
“Work is already underway with growers around Levin shows that HortNZ is serious about acting on climate change and supporting its growers to meet new requirements, while ensuring their businesses are sustainable and New Zealand continues to grow fresh and healthy vegetables and fruit.”
“We have also started work to identify the research and development that the horticulture industry needs if it is to be able to meet medium to long term climate change commitments and continue to prosper. Our industry’s biggest challenge is to be as effective as possible with fertilizer application. This is why research and development, and tech transfer in the area of precision horticulture are so important,” Chapman says.
Last month, the Ministry for Primary Industries released the latest Situation and Outlook for Primary Industries report, which shows that horticulture export revenue is forecast to grow by 3.8 percent to $6.3 billion in the year to 30 June 2020.
“For horticulture to continue to prosper like this, it is vital that government policy supports continued growth. For example, that the proposed freshwater reforms support new fruit growing because of its positive impact on freshwater quality and allow vegetable growers to rotate their crops,” concludes Chapman.
The newly founded World Citrus Organization (WCO) was officially launched at Fruit Attraction, Madrid. With this official presentation, citrus fruits are finally placed at the same level of coordination worldwide as other fruit categories, such as pears & apples, kiwis, avocado or red fruits, which already have their own global platforms.
The WCO will act as the global platform for dialogue and action between the citrus producing countries worldwide. The core aim of the WCO is to facilitate member countries to better face common challenges and seize opportunities for the collective benefit of the citrus sector, in a spirit of cooperation and transparency.
Led by AILIMPO and the Citrus Growers’ Association of Southern Africa (CGA), sector representatives from Argentina, Chile, Italy, Morocco, Peru, Spain, and South Africa decided to join forces to create a global citrus platform. Other countries that were unable to attend the meeting have also committed to the project, and the remaining global producers are invited to join the organization.
The primary objective of the WCO is to facilitate collective action in the sector. Most recently the sector has been faced with an array of issues including growth in production, overlapping of seasons, changing climate conditions resulting in varied quality and biosecurity challenges, increased competition within the citrus category and between other fruit categories and food products as well as stagnating fruit consumption.
Specifically, the WCO’s mission is to:
Discuss common issues affecting citrus producing countries.
Exchange information on production and market trends to prepare for the next decade to come.
Foster dialogue on policy issues of common concern.
Identify and promote Research and Innovation projects specific to the citrus sector.
Liaise with public and private stakeholders on citrus-related matters to highlight the importance of citrus producers and the need for a fair return.
Promote the global consumption of citrus.
During the official presentation in Madrid, the Director General of Agricultural Production and Markets of the Spanish Ministry of Agriculture, Esperanza Orellana, emphasized the importance for Spain, leader in the production and export of citrus fruits, to be at the forefront of this project. The Counsellor of the Region of Murcia, Antonio Luengo, said that, leaving aside the competitive factor, it is essential to share information and experiences for the collective benefit of the sector, which is of key strategic importance for Murcia and for Spain.
With South African citrus exports due to increase by 25% in the next five years, and similar expansion expected by other citrus-producing countries, this organization will put citrus fruit in its rightful place in the consumers mind – as a nutritious, healthy option. Stimulating demand will help to grow the category and claw back some market share lost to other fruit sectors.
Freshfel Europe, the European Fresh Produce Association will coordinate and administer the WCO. The next meeting, where the formalities for the foundation and future structure of the organisation will be formalized, will take place at FruitLogistica 2020 in Berlin.
Typhoon Hagibis has hit Japanese farms, forests and fisheries very hard. Government officials say the damage tops 70 billion yen, or 650 million dollars, as of Monday afternoon. 36 prefectures are reporting financial losses. Damage to agricultural facilities runs to about 255 million dollars.
The figure for the forestry industry is roughly 156 million dollars. About 69 million dollars’ worth of rice, fruit and other crops was lost due to the typhoon. The total bill is expected to rise, as not all the relevant data has been collected.
The sixth mission of Chinese companies have visited Argentina. The mission was formed by eight fruit importers that were mainly interested in the cherries from the provinces of Rio Negro and Neuquen. However, after visiting different production centers, they also showed interest in the region’s pears, apples, and wines.
The firms are part of the Shanghai HuiZhan Market, a wholesale market made up of various fruit importing companies from various parts of the world, and requested the completion of this commercial tour before the Argentine embassy in China.
Anibal Caminiti, coordinator of the Fine Fruits Program of the Pyme-Adeneu Center and executive manager of the Argentine Chamber of Integrated Cherry Producers (CAPCI), said that “there’s been a continuous demand from Chinese buyers since that market was opened.”
The CAPCI and the Adeneu Pyme Center coordinated the visits to the fruit companies of the Upper Valley of Rio Negro and Neuquen. On other occasions, they also organized business meetings with other Patagonian companies.
The market for Chinese garlic is undergoing some changes. Prices fell last month due to excessive supply, but have started to slowly pick up since last week. “Traders all expected garlic prices to continue rising, so they are reluctant to sell, which led to a limited supply and drove prices up. However, it is hard to predict how prices will develop within the next few weeks. Prices of the new crops were very high at the beginning of the season. It has been estimated that the total production this season will increase, but it’s actually a lot higher than expected, so although prices were high at the start of the season, they are now quite low for this time of the year. This year’s production is about 30% higher,” Mr. David from Shandong Haijiang International Trading Co., Ltd. said.
Regarding the current demand situation, he said, “there is currently more demand from the Asian and Middle East markets. The number of orders coming from Europe is normal compared with last year, while that from the Americas is lower. Due to high anti-dumping duties and the fact that garlic from Argentina will become available next month, customers from Brazil, the largest buyer in the Americas, have reduced their purchases from China. The main markets for Chinese garlic are Indonesia, Pakistan, Malaysia, United Arab Emirates, and Saudi Arabia.”
“We are located in Jining, Shandong Province and mainly handle the import and export of fresh produce. We export garlic, ginger, apples, pears, onions, and potatoes, and mainly import products such as bananas, dragon fruit, navel oranges, cherries, and red grapes. After years of endeavor, we now have a stable customer base and a steady market share. In the future, we hope to work with more international traders.”
Supplies of bell peppers look consistent compared to last year at this time.
“Supply has been consistent but the timing has been somewhat different due to variable weather patterns throughout the season,” says Katy Johnson of Prime Time International in Coachella, Ca. “Each growing location has been affected by weather in some way this year which has created a challenge in producing an even supply flow.”
Prime Time is currently harvesting in Oxnard, Ca. “Red peppers are still fairly plentiful while yellow and green peppers are winding down and almost finished for the season,” says Johnson. She adds that Mexico is gearing up as well and Prime Time has already begun to harvest greenhouse peppers there.
Over at Baloian Farms in Fresno, Ca., Lori Hickey says she sees supplies lightening up, particularly on graded product as it gets ready to transition to supplies out of Coachella, Ca. at the end of the month. “This is the typical transition window for California,” says Hickey. “The calendar turns to October and you can expect supplies to get lighter as cooler weather in the growing areas forces us to move to warmer areas and break into new fields.”
Sourcing regions While supplies are largely currently coming from the central coast of California including Oxnard and Hollister, Mexico is also shifting production from the central part of Mainland Mexico to the north as well as Baja, Ca.
At the same time, local deals are also wrapping up. “At this time of year, the local supplies throughout the U.S. and Canada come to a halt,” says Johnson. Hickey of Baloian adds though that Georgia is the biggest competition at this time of year driving most of the Eastern production.
With the local deals slowing down, demand is picking up for product throughout the U.S. and Canada. “With the weather cooling down and people getting back to cooking, fall is a great time to promote peppers,” says Hickey.
Photo: Baloian Farms
Pricing particulars Meanwhile pricing is on the rise. “We’ve seen some low markets this past month as some of the local deals persisted with mostly mild weather across the country,” says Hickey. “As supplies have lightened, pricing is starting to go up.”
Looking ahead, Johnson hopes the weather concerns of 2019 are behind them. “So far the weather this year has been a constant challenge from the first planting through harvest. Whether it was rain, wind, cool temperatures or extreme heat, our production team has needed to constantly stay one step ahead of the effects of nature,” she says. “The end result has been uncharacteristic ups and downs in volume that prove to be challenging for our sales and marketing team.”
Roughly 16 million British apples are being left to rot in the field this harvest as growers struggle to recruit seasonal workers.
The Latest NFU survey on seasonal workers found that the September shortfall in seasonal workers had climbed to 16.3 per cent. This year’s labour shortfall now stands at 10 per cent, with data showing over 4000 job vacancies went unfilled in the past 12 months.
Data from British Apples and Pears suggests that 1,147 tonnes of apples have been left unpicked this season as a result.
With the apple harvest now at its peak, Brexit uncertainty is being blamed for the sudden drop of numbers as the UK’s status after October 31 remains unclear. British horticulture is heavily dependent on EU seasonal migrants to pick its fruit and vegetables, with Brits making up a fraction of the harvesting labour force.
Earlier in the year, FPJ reported on recruiters’ fears that seasonal workers were looking to leave Britain before the Brexit deadline to avoid any issues resulting from a no-deal Brexit.
“I’m hearing from some businesses that workers are saying they want to be back home for 31 October; they feel insecure which is really a problem for some sectors,” said Jan-Willem Naerebout, founder of recruitment company Agri-HR.
With labour shortages still hindering British horticulture, NFU horticulture and potatoes board chair, Ali Capper, says businesses will start investing in operations abroad instead.
“This year British fruit, veg and flower growers have experienced a significant shortage of seasonal workers, causing considerable impacts on farm.
“A number of large scale horticultural businesses have said they will scale back UK production and move investment overseas next year if they do not receive a clear signal from government this month that they will increase the seasonal worker pilot scheme immediately.”
Topfruit is not the only category affected, with berries and mushrooms also hit badly. Jack Ward, chief executive of the British Growers Association, said: “I know a mushroom grower in East Anglia who is operating at two-thirds capacity because he can’t get workers.”
Faced with a long-term decline in seasonal worker shortages, the NFU have been campaigning to reintroduce a non-EU Seasonal Agricultural Workers Scheme, which was shelved in 2013.
The NFU scored a victory in March when former home secretary Sajid Javid agreed to pilot a new SAWS scheme, granting permits for 2,500 workers from outside Europe, a number the NFU says needs to be drastically increased.
“The NFU continues to call for the immediate expansion of the Seasonal Workers Pilot scheme to enable recruitment for the autumn and Christmas period, and reach a full scheme of 70,000 workers as soon as practically possible,” Capper added.
Hong Kong (CNN Business)China’s growth dropped last quarter to its lowest level in nearly three decades, as the world’s second largest economy continues to feel the pain from the trade war with the United States.
China’s gross domestic product grew by 6% in the three months to September 30, the weakest quarterly growth rate since 1992 and down from 6.2% in the April-June period, according to government statistics released on Friday. It also missed the average forecast of 6.1% projected by analysts polled by Refinitiv.
“Trade tension with the US is the key factor weighing on business sentiment and investment activities, although domestic stimulus policies are providing some buffer from the down side,” said Chaoping Zhu, global market strategist for JP Morgan Asset Management.
Trump’s ‘love fest’ with China won’t end the trade war Trump’s ‘love fest’ with China won’t end the trade war
The worse-than expected figures emerged just one week after the United States and China reached a tentative trade truce to avoid more damage to the world’s two largest economies.
“Ongoing negotiations may have some positive impact on business sentiments, but despite the potential mini deal, most of the US tariffs on imports from China still remain, hurting Chinese exports,” Zhu added.
The preliminary trade deal reached last Friday includes a halt on US tariff increases that were supposed to go into effect earlier this week. President Donald Trump told reporters that intellectual property, financial services and agricultural purchases were also included in the agreement.
But the two sides still appear to be far from striking any sort of comprehensive agreement, and the latest announcement doesn’t address some of the biggest issues on the table.
Markets slid lower after the Chinese data were released. Hong Kong’s Hang Seng Index (HSI) and China’s Shanghai Composite Index (SHCOMP) ended down 0.5% and 1.3% respectively. The indexes had gained as much as 0.5% and 0.3% before the GDP report.
Japan and Korean stocks also came off their session highs. The Nikkei 225 was briefly up 0.9%, before giving up most of those gains. The Kospi index closed down 0.8%, after gaining as much as 0.5% earlier.
IMF cuts global growth forecasts for 2019 and 2020. IMF cuts global growth forecasts for 2019 and 2020.
September recovery could fizzle The Chinese data showed some pick up in economic activity in September. Growth in industrial production jumped from 4.4% in August to 5.8% last month. Retail sales rose 7.8% last month from the same period a year ago, slightly stronger than in August. Fixed asset investment growth also accelerated a little.
A spokesman for China’s national statistical authority said Friday that stimulus measures announced earlier this year, including tax cuts and infrastructure investment, have started filtering through to the wider economy,
But despite a stronger September, pressure on economic activity could “intensify” in the coming months, said Julian Evans-Pritchard, senior China economist for Capital Economics.
“Cooling global demand will continue to weigh on exports, fiscal constraints mean that infrastructure spending will wane in the near-term and the recent boom in property construction looks set to unwind,” he wrote in a research note.
Analysts from Nomura said the rebound seen in September could be short lived. They see China’s GDP growth dropping to 5.8% in the fourth quarter as exports are hit again by the slowing global economy and the trade conflict between the United States and China.
“We expect the stability in October will be short lived, and expect the growth slowdown to worsen afterwards,” they wrote in a note.
China takes more action to boost its slowing economy China takes more action to boost its slowing economy
More stimulus coming The Chinese statistical authority admitted the economy would continue to face “severe and complex external environment.” The Chinese government would step up stimulus measures to avert the slowdown, Mao Shengyong, a spokesman for the National Bureau of Statistics said at a press conference on Friday.
Planned measures include more investment in infrastructure projects, while Beijing will continue to encourage a shift towards consumption and technology to drive the economy, he added. Consumption contributed 60.5% to GDP growth in the first three quarters, while investment and net exports contributed around 19.8% and 19.6% respectively.
Julia Wang, senior Greater China economist for HSBC, said Friday’s data will likely lead to rate cuts and more government spending. “We expect both monetary and fiscal easing to be delivered, in the form of a [reserve requirement ratio] cut, lending rate cut, and infrastructure investment. But in order to reverse the slowdown trend, more decisive easing will likely be needed,” she said in a report.
The Fuji apple harvest has begun in Shaanxi and is expected to last through to mid-November.
“This year’s weather has been good, production areas have not been affected by serious natural disasters, and the sunshine has been sufficient. The color, sweetness, and size of the fruit are very good. Thanks to the government’s strong support and the expansion of planted acreages, this year’s production is about 30% higher compared with last year. However, higher production has led to a fall in prices. In general, prices this season are about 0.8-1 yuan/half a kilo lower than those of the same period of last year. For example, the current farm gate price of Grade A Fujis is about 2.8 yuan/half a kilo, while that of Grade B fruit is about 2 yuan/half a kilo. It is expected that prices will fall even further,” Mr. Li, Manager of Jibin Fruits of said.
“This year, apple growers have ushered in a bumper harvest, and the biggest problem we face now is the shortage of seasonal labor,” Mr. Li said with frustration. “We are now at the peak time of the harvest, and there aren’t enough workers at the growing centers. In order not to delay the shipment, we have to work on the fields ourselves or ask friends to help us picking and packaging apples.”
Jibin Fruits mainly market their products locally. Their fruit are sold across China through e-commerce platforms. The company has been setting their sights on overseas markets since this year. “Over the past few days, we have received inquiries from customers in Southeast Asia and are quoting for them. I hope consumers overseas will soon be able to taste high-quality apples from Shaanxi!”
The city of Sano, in Japan’s Tochigi Prefecture, is struggling to recover from the damage left in the wake of Typhoon Hagibis. The owners of flooded farms growing the prefecture’s mainstay “Tochiotome”-brand strawberry now fear that their plants may not bear fruit in time for picking season.
Tochigi Prefecture is a major strawberry producer, leading the country in yields for the past 51 years. Demand for strawberries spikes from November with the fruit being used for Christmas cakes and other seasonal items. “Tochiotome” is an especially sought-after variety, prized for its bright red hue, large size and sweetness.
“It was like the sea,” strawberry farmer Fujiyuki Tani, 53, said as he recalled the sight of his strawberry seedlings deep in floodwater on Sunday morning, after the typhoon had passed. His strawberries were inundated after the typhoon had caused the bank of the nearby Akiyama River to break.
According to nippon.com¸ Tani and his family have done their best to resume farming operations, washing away the dried mud from the flood that swept through the greenhouse and disinfecting the premises to minimize damage.
This year, apple farmers from Western New York state are going through a tough harvest season.
“I think, overall, the crop load in general has been a little bit lighter,” said Dale Wickham, of Wickham Farms in Penfield. Wickham says it’s not just a problem for him, as just a few miles away in Williamson, Wayne County, the crops at DeFisher Fruit Farms are feeling light too.
“We normally have 100 percent of crops,” said owner Dave DeFisher. “This year we’re probably down to 60 percent of our crop.”
DeFisher and Wickham say a cold, wet May scared off the bees, That means fewer crops were pollinated and that mix caused some spots to simply not bloom. It’s a problem farmers have faced before. “Some years you’ll have great crops, some years you’ll be a little light on certain trees,” remarked Wickham.
Mpnnow.com quoted DeFisher, who also owns and operates Rootstock Cider, as saying the shortage is impacting only a few specific types of apples, but the sting will be passed on to apple fans.
“That reduction in crops basically equates to higher prices,” said DeFisher.
Wickham says that while quantity may be down a bit, the quality of the apples you pick or drink is still high. In the meantime, the best thing farmers say they can do is hope for the best next spring.
Taiwan’s Council of Agriculture (COA) has announced a clampdown on falsely labeled imported agricultural products. This is following complaints from farmers and importers that cabbages from China have allegedly been imported into Taiwan labeled as Vietnamese products.
During the period from Jan. 1 to Oct. 15, a total of 56,077 tons of foreign cabbages entered Taiwan, an amount that is higher than the entire levels of 2018 and 2017 at 31,770 and 39,283 tons, respectively, according to COA data, with Indonesia, South Korea, Vietnam, Thailand, Japan and the United States the major sources.
Since late August, there has been an oversupply of locally grown cabbages, pushing down the wholesale price per kilogram to NT$16 (US$0.52) recently, the COA’s website showed. China has been accused of transshipping its agricultural products via a third country in order to circumvent Taiwan’s import regulations.
It is widely feared that the price will drop even further in the peak cabbage season around November, which has prompted the government to take action to assuage farmers’ complaints in a timely manner.
On a summer day a few months ago, I visited a commercial lettuce field for the first time. Walking through the straight rows of green that make up the “Salad Bowl of the World” was memorable, but what really made the experience special was the conversation I shared with Brian and Jeff Church, the CEO and Vice President of Sales, respectively, of Church Brothers Farms.
A team of harvesters worked their way through the rows of lettuce. Around us, the golden hills that make up much of the Central Coast of California reminded me that while I am out of my element, I’m still not far from home. Brian and Jeff were in their element and walked toward the harvesting crew while maintaining an easy conversation. Our industry is on the cusp of a turning point; a new generation of leaders is taking over, and Brian and Jeff are part of that future.
“If you get stuck in your old ways, you’ll eventually get run over,” Brian said. “And you’re only as good as today. If you don’t keep improving on all the things you did in the past, you’ll start going backwards.”
The Church Brothers Farms team has come a long way in 20 years, but hard work has always been a part of that process
I wanted to ask, “How is Church Brothers Farms improving?” but my attention was divided as I tried to keep from wobbling between the heads of lettuce.
“You’re only as good as your weakest link,” Jeff said, continuing Brian’s train of thought. “These days our customers are in a cutthroat environment, which has made it a very competitive business. Fortunately, we grew up with two brothers each, so we’re used to being competitive.”
Much of our conversation ran a similar course: Brian or Jeff detailing the growth of Church Brothers Farms while the other filled in the gaps. But rather than attempt to volley my own questions into the conversation, I let the two complete each subject. I listened as Brian and Jeff discussed Church Brothers Farms’ double-digit growth, its growing regions in Mexico, the recent acquisition of the Growers Express commodity program, and the company’s food safety initiatives.
“THESE DAYS OUR CUSTOMERS ARE IN A CUTTHROAT ENVIRONMENT, WHICH HAS MADE IT A VERY COMPETITIVE
BUSINESS.”
—JEFF CHURCH, VICE PRESIDENT OF SALES, CHURCH BROTHERS FARMS
“As we get bigger, we’re constantly adjusting,” Jeff said. “We’re keeping our eyes open and making sure we are watching everything. Scale will help us be more efficient, so when we acquired Growers Express, we ultimately became better as a whole. That acquisition helped us enter the retail space, which is a shift for Church Brothers Farms.”
This shift is one that fits into future plans. Brian and Jeff explained that because Church Brothers Farms is a vertically-integrated company from “seed to store,” it has the personnel to manage the addition of retail to its core foodservice business.
As I looked at the rows of green surrounding us, Jeff and Brian pointed out which fields were under Church Brothers Farms’ operations. The company produces a full line of fresh vegetables and salads year-round thanks to its in-house farming program and state-of-the-art processing plant, True Leaf Farms.
That is where Church Brothers Farms has a different storyline than many farming companies in the Salinas Valley. Because the farming/harvesting piece of the company was started from scratch with a small group of employees, it may not have the benefits that come with tradition, but it also does not have the challenges a legacy company may face.
Since 1999, Church Brothers Farms has grown from five employees to more than 2,500
Specific to their farming operations, Brian shared his thoughts.
“I’ve never considered starting with a clean slate—starting without multiple ties to past generations—as a disadvantage,” he said. “Think about it, you can get whatever farming equipment you want, and you can farm how you like. There are a lot of wonderful things about tradition, but there are times when tradition can be the enemy, and a roadblock.”
And my own wheels kept turning as Brian went on.
“Starting from scratch means that there is not a ‘Well, we have always done it this way,’ mentality and instead the message is that I can be loyal to the best solutions and methods that I can find,” he said. “To me, it was easier to enter the industry with a clean slate than try to keep up with the times. We took bits and pieces of knowledge from everyone—but we copied no one. We have not mimicked anyone’s operation. Our farming and harvesting operation is the result of decisions made as a group, for this group.”
“FARMING AND HARVESTING—THERE IS A SYMBIOTIC RELATIONSHIP BETWEEN THE TWO. THE MORE PRODUCTIVE THE FARMING IS, THE MORE PRODUCTIVE THE HARVESTING IS…”
—BRIAN CHURCH, CEO, CHURCH BROTHERS FARMS
Brian said that Tom and Steve Church are great marketers that founded the company in 1999 and started the Church Brothers Farms story. But, the reality is that now, twenty years later, in order to survive and respond to the customer that wants to know the source from seed to store, the family had to vertically integrate and get into the farming/harvesting sides of the business to not only survive, but thrive. It is easy to see today what that farming “reach” looks like by just driving down Highway 101 Salinas Valley, between Salinas and King City. I dare you to take a gander out the window and not see CB Harvesting trucks and employees: the Church Brothers harvesting operation.
In the market place, it can be hard to picture the size of Church Brothers Farms. Much of the product line the company produces that is consumed in the country is not branded, but lands on people’s plates through a labyrinth of foodservice distributors or under a customer’s label. While many companies are trying to brand, Church Brothers Farms is looking at the long game that allows them to build a business with structural integrity, innovation, differentiation, and value.
As Brian continued to speak about how the company developed from marketing and shipping into farming and harvesting, I asked what made the company move into the harvesting side.
(Left) Jeff Church, Vice President of Sales, and (right) Brian Church, CEO, are marking the 20th Anniversary of Church Brothers Farms in Salinas, California
“We started CB Harvesting in 2006 because at that time, the price of everything was escalating and it was a tough time for the business,” Brian said. “When you have too many contracts out to entities outside of the umbrella of your operation, you are beholden to other people’s ideas of success and profit. So, we started taking more in-house to cut costs and that showed us that vertical integration was key.”
The shift to an internal harvesting operation, CB Harvesting, started with broccoli and then developed commodity by commodity until all items are now harvested by CB Harvesting and its 600 employees. Brian led this shift, with a couple key people spearheading each commodity. He will be the first to tell me, though, that it was a team effort.
“It really just made sense, building our own farming and harvesting program,” Brian said. “Farming and harvesting—there is a symbiotic relationship between the two. The more productive the farming is, the more productive the harvesting is. If the efficiencies roll downhill, you again have a recipe for success. You gain control over quality and efficiencies within the operation to survive, better and stronger.”
Harvesting at Church Brothers Farms is more than a responsibility, it is a way of life
Brian is continuing that vision of farming from seed to store and has recently added significant acreage with the team’s newest in-house farming venture, P&C Farms, that represents its largest, contiguous ranch of 1,000 acres in Salinas Valley.
These paths, though different, have enriched Brian and Jeff’s perspectives and helped them become in tune with the evolving needs of the fresh produce industry. And because Brian and Jeff view the industry as innovative and ripe for change, Church Brothers Farms is approaching the foodservice and retail sectors in inventive ways. This includes building out all of its teams, from its Ag Ops department and food safety to sales and marketing, and everything in between. Since 1999, Church Brothers Farms has grown from five employees to more than 2,500—a number that Brian and Jeff see increasing as the company continues to integrate its acquisition of Growers Express.
As the needs of the fresh produce supply chain—from retailers and foodservice operators to growers, packers, and shippers—shift, Brian and Jeff are guiding the company to shift with it.
“I SEE MORE GROWTH OPPORTUNITIES IN PRODUCTS AT BOTH RETAIL AND FOODSERVICE. I THINK PROBABLY ONE OF OUR BIGGEST GOALS IS TO OFFER OUR CUSTOMERS A BROADER PRODUCT LINE.”
—BRIAN CHURCH
“It’s a business that is unforgiving and the challenge never stops,” Brian said. “Quite frankly, and Jeff probably agrees, it never gets easier. Just when you think you’re about to break out into the clear, you find a whole new set of challenges or the landscape shifts. So, we’re always thinking, watching, and reacting.”
At this, we fell quiet. I turn again to the harvesters working heads of lettuce from the earth at a speed too quick for my eyes to catch. Despite the urgency of the workers before us—each member cutting, trimming, and placing the lettuce onto the belt into the bins, all while the rig moves forward—the valley is quiet and still, like it too is waiting for where Brian and Jeff will take our conversation next.
“And we always want to be on the top of technology,” Jeff said. “I’m hoping for the day that we’re just like Amazon, where our customers can click, and product shows up at their door—that would be really great. We want to be the company that’s taking advantage of all that’s emerging.”
While this means bringing new products to the market, it also means innovating at the field and processing level, finding new varieties to grow, and embracing new technology. Brian and Jeff truly are the modern day, new-age farmers, and their passion speaks volumes to that.
Harvesting innovation has always been a part of Church Brothers Farms’ vision and business model.
“How can we do it better? How can we build and change and evolve?” Brian said. “We want to get smarter and understand every aspect of our business and where the opportunities lie to get better.”
It’s all in the details, as Jeff shared, with Brian adding that they both see a lot of opportunities.
“I see more growth opportunities in products at both retail and foodservice,” Brian expressed. “I think probably one of our biggest goals is to offer our customers a broader product line.”
With the marine layer still overhead, and without the sun to track the time, it felt like the world stopped spinning forward in order to give us a moment to sit with the progression of Church Brothers Farms.
As I looked back one last time to take in the horizon of green, I wondered what Brian and Jeff see. While this view may not be clear to many of us yet, we can rest assured knowing that the details will continue to sharpen until the vision Brian and Jeff picture for the future of Church Brothers Farms and for the industry as a whole is the reality, the new normal, for all of us in produce. Until then, it’s all in the details.
On Thursday, the USDA released its initial crop forecast for the 2019-20 citrus season. Citrus is an important item for the Florida produce industry and Florida as a state. In recent times, there has been a lot of concern about movement of the product and exports coming in, as well as effects still stemming from Hurricane Irma in 2017.
The closely-guarded forecast was delivered by Bill Curtis, USDA agricultural statistics administrator. Curtis noted that numbers are expected to be slightly down on last year’s crop, with fruit sizes larger. Below is the summary of what the industry can expect.
Oranges The forecast for the 2019/20 non-Valencia orange crop is 32 million boxes for Florida, 38 million boxes for California, and 2.57 million for Texas, for a total of 72,570,000.
For Valencia oranges – 42 million boxes for Florida, 9 million for California, and 650,000 for Texas, for a total of 51,650,000.
This would put the total orange crop forecast for Florida at 74 million, California at 47 million, and Texas at 2.7 million, leaving a national total of 123.7 million boxes.
Grapefruit The forecast for grapefruit is 4.6 million boxes for Florida, which is broken down to 3.9 million for red grapefruit, and 700,000 for white. California is expected to produce 4.2 million boxes, and Texas, 5.7 million. The national total is 14.5 million.
Tangerines and Tangelos For tangerines and tangelos, the forecast for Florida is 1.05 million boxes, California at 23 million boxes, for a total of 24.05 million boxes.
“Tree count is slightly up on 2018/19 by 1 percent,” Curtis added. “For the fruit itself, there is less fruit on the non Valencia and Valencia trees than average, but we can expect better sizes this year.”
The mandarin production is currently shifting from the southern hemisphere to the north. The supply from South America and South Africa is now quickly running out. The season is not yet in full swing, and that means that the volume of mandarins, tangerines and clementines is currently low. Prices are rising as a result of this transitional period.
In the new season of the northern hemisphere, the harvest in Spain and Italy will be smaller than last year, mainly as a result of the weather conditions. China also expects a fall in the production due to the abundant rainfall recorded in a few growing regions. Trade barriers are also causing problems in some places. China imported more mandarins and clementines from Australia due to the US import tariff. Turkish mandarin exports to Iraq have been limited. As a result, prices on the domestic market are coming under pressure.
The Netherlands: Spanish mandarins are arriving; South Africa is slowly disappearing The early mandarin varieties, such as the Iwasaki and Okitsu, have been arriving from Spain for a few weeks and sold rather quickly. The supply of the first Clementine varieties (Marisol, Ornules and Clemenrubi) is also underway, and mandarins with leaf are eagerly absorbed by the market. The damage caused by last month’s heavy storms has had no impact on the volumes and quality of mandarins. The prices stand at an acceptable level. Not all retailers immediately get started with the first Spanish mandarins. The market for South African mandarins has also been good. The season already started with a smooth sale of Satsumas and Clementines. Also, citrus sales in the otherwise quieter summer months did not disappoint. The very last varieties, such as the Tango and Nadorcott, are then considered to be the best ones and importers still expect incoming shipments until week 43. They say that Peru will become a larger player in the summer, especially with its Satsumas, Nadorcott and Tango, and that this will entail a challenge for the coming years.
Belgium: Smoother trade due to low supply The citrus season has started again. The supply of clementines with leaf is well underway and the demand is increasing. According to a Belgian trader, there are some quality issues here and there, but there is enough production of a good quality. According to another Belgian trader, there is a slightly smaller production on the market this year, and this is making the picking and trading faster.
Germany: Mediterranean season has kicked off The supply of European citrus fruits, in particular from Italy and Spain, is rapidly increasing in Germany. The first clementines from Spain were already on the shelves by mid-September, according to a trader in Bremen. The first Clemenules of the Spanish brand Tobsine are also expected to become available soon. The prices at the start of the Spanish season are still on the high side, but they are expected to fall by the end of the month. At the same time, the end is near for the import of South African and South American citrus and the supply is steadily declining. The season has also started in Turkey, reports a trader and importer from Vienna. “On Tuesday, we received the first mandarins from Turkey.”
France: Lower supply than last year from Corsica Corsica clementines are still the most popular of their kind in France. The first shipment is expected on the market in early November. The prospect is that the volumes will stand 20% below those of last year, says a wholesaler. Meanwhile, the sizes are expected to be average. At the moment, there is already Spanish production on the market. The prices at Rungis amount to around € 1.70 per kilo.
Spain: 30% lower volume at the start of the season The early Clementine varieties, such as the Rubi and the Oronules, are being harvested in Valencia. The early Satsumas have entered the final stage of the harvest. The yield in the Region of Valencia is about 30% lower than last year and the harvest has also slowed down due to the warm temperatures. This has resulted in a limited supply on the market, acceptable prices and a market without pressure. Remarkably, some growers are picking clementines that are not yet ripe due to the low volumes available on the market. The low yields are especially noticeable in the case of the Clemenules, which is the most popular and most important variety in terms of volume. Since there is less fruit in the trees, the sizes available tend to be larger. Spanish traders are currently competing with Orri and Nadorcott mandarins from South Africa, Peru and Argentina. “The volumes are relatively low this year, but we expect them to increase in the future,” says a trader.
The storms in the region of Valencia have not taken a toll on the quality or quantity of the citrus harvest. There was still little fruit available for harvesting, and the heat afterwards caused the fields to dry up quickly. The rain has actually resulted in the production of large sizes and stripped the trees of bad fruit. In some regions, producers were not as lucky and the harvest did suffer some damages. This was the case in the municipality of Orihuela, in Alicante, as well as in Murcia.
Italy: Mandarins not spared by bad weather The season has not yet started in Italy. In the southern regions there are already some small supplies of early varieties on the market. The official start of the season will take place in late October. The production of clementines and mandarins is expected to fall by between 30% and 70%, depending on the region.
In the province of Taranto, the cooperative of growers expects a 70% reduction in the clementine production compared to 2018. This is due to the impact of low temperatures and two hail storms during the flowering period and in the summer. No diseases have been detected in these areas, although some mandarins have suffered damage due to the hail. At the moment, the Miyagawa mandarin, of Italian origin, has become very popular in the wholesale market due to its aroma and unique dark green color. The price oscillates between € 0.70 and € 1.00 / kg depending on the market. The Spanish Clemenruby has also been on the market since the end of September, with prices ranging between 0.80 and 2.00 € / kg.
Turkey: Mandarin prices drop due to restrictions on exports The growers in Turkey have started harvesting the earliest mandarin varieties. Those mandarins are currently mainly exported to Iraq, Russia, Ukraine and Eastern Europe; however, the mandarins for Iraq are not making it past the border because they are too green. The issue actually arose at the Turkish border post, and not at the Iraqi one, although the returned tangerines are still causing a problem. Prices are now falling due to the closing of the border. On the Iraqi market it is possible to get 1 Turkish lira (€ 0.16) for the mandarins.
China: Rainfall affects part of the harvest After a few months of low season, new batches of domestic mandarins have been distributed on the Chinese market since the beginning of September. Between June and September, when there is little production on the market, the supply was mainly supplemented with imports. These imports usually come from the United States, but due to the high import tariffs this year, more has been imported from Australia.
At the beginning of the year, it looked as though this season’s production was going to be better than last year’s, which was significantly affected in terms of both volume and quality by the weather conditions. Due to the heavy rain and floods in the second half of 2019, part of the harvest was also affected this year. The damage to the production varies per area, but the volume has dropped. In the coming months, more production will come on the market and this will continue until around April.
United States: Small supply drives prices up Domestic mandarins and clementines are on the way, although the production is slightly smaller. The imports from South America and South Africa are currently decreasing. Florida is already harvesting the first Early Pride varieties for the market. “Stocks are low at the moment,” says a trader. “Chile had about 15% less production, and Morocco and California will not be on the market with their clementines until the beginning of November.”
Mandarins, clementines and tangerines are available all year round on the US market, with domestic production from California and Florida and imports from Chile, Peru, Uruguay, Mexico, Morocco and South Africa. “Spain also normally exports fruit in the winter, but this is going to change due to the recent 25% import rate,” says a trader. The demand is expected to increase now that the supply of stone fruit and other summer products is running out and citrus fruits are again attracting the attention of consumers. The promotions and the supply of easy-peelers and seedless varieties are contributing to the growing demand for mandarins. It remains to be seen whether this growing demand can be met with the growing production volumes from California, Chile, Peru and China. Due to this growing production, other regions are working on developing new varieties for the market, such as the Tangos, Orris and Bingos in Florida. At the moment, however, prices are rising due to dwindling stocks. The average price amounts to $ 36- $ 38 per box. Last year around the same time, the price still stood at $ 20.
South Africa: Season is coming to an end The citrus season in South Africa is coming to an end. There are approximately 2 million boxes left, and by the end of September, 17.2 million had been shipped. The initial prospect for this season was lower than what is now expected. Now estimates point to 19.1 million boxes being shipped by the end of the season.
Wind damage has taken a toll this season and reduced the supply of class 1 fruit, mainly in the south of the country. Now that the season is about to start in the northern hemisphere, prices on the market will fall. This is the effect of the transitional period, in which the available supply is only going to increase.
Australia: Exports to China on the rise The value of Australia’s mandarin production has increased by 7%. By the end of June 2018, the country had produced 159,598 tons worth AUD 305.8 million. Exports have increased by 39%, with the main destination being China, which accounts for 30% of the total exports. This increase in exports has been mainly due to the trade war between the US and China. The most important varieties are the Murcott (38%), Imperial (25%) and Afourer (22%).
Fruit and vegetable wholesale markets in Hong Kong and Guangzhou have one thing in common, that is, both have a large number of imported products. However, in Hong Kong, the quantity and variety of products are more diverse than those in Guangzhou. In wholesale markets in Guangzhou, more locally produced fruits are available compared with imported fruits, but this is not the case in Hong Kong, where fresh fruit is mostly imported because of limited local production. In addition to product ranges, business operations time also differs. In Hong Kong, most wholesale markets start the day in the middle of the night. This is mainly due to the fact that a lot of fresh produce is used in restaurants, supermarkets, and hotels who need them early in the morning, so many wholesale markets are open at night in order to be able to deliver on time.
Fruit markets In the Yau Ma Tei Fruit Market, Hong Kong’s oldest fruit wholesale market, only 10% of the fruit comes from the mainland, with the rest is imported from other countries. There are many exotic varieties on display in this market, while fruits commonly seen in supermarkets on the mainland are not common here. This wholesale market is open during the day and night. The evening is the busiest time for people who engage in fruit wholesale. During the day, the public can visit the market to buy fruit. Due to its long history, this wholesale market is popular with tourists.
Yau Ma Tei Fruit Market
Vegetable markets You can see more Western vegetables in vegetable wholesale markets here. Since many consumers in Hong Kong restaurants or hotels are foreigners, they prefer vegetables from their own country, so there are more imported Western vegetables on the market. Cherry tomatoes and mini sweetcorns are in evidence. In addition, restaurants are one of the most important influencers in introducing new vegetable varieties to the market. Since most consumers are not very familiar with new varieties, or not willing to try them, and do not know how to prepare them, they don’t have a strong desire to buy them. However, these vegetables are used as ingredients in restaurants and are prepared in correctly, which is a perfect way for consumers to try new vegetables, so they are likely to buy more in the future.
Cheung Sha Wan Wholesale Market, a vegetable wholesale market in Hong Kong
Cold cells in a vegetable wholesale market in Hong Kong
Cabbages from the Netherlands
Onions from New Zealand
Australian onions
Wet markets Wet markets in Hong Kong are also developing. Most wet markets are markets that sell all fresh products such as fruit and vegetables, as well as meat and fish, usually on the street. All small shops have stands on the same street to sell their products. Most of the consumers in these wet markets are elderly people. The younger generation is not as interested in these markets, and most of them consider them to be a bit dirty. Therefore, a new trend has begun. In Hong Kong, more indoor markets are being built. For example, in Fu Cheong Shopping Center, an indoor market, all fresh products can be bought. The biggest difference is that the indoor wet market looks more modern and therefore cleaner than the ones on the street, and they have attracted more young people.
The blueberry production in Tucuman Province, Argentina has recently attracted the attention of several Chinese companies who are interested in signing an agreement with local producers. To this end, Chinese companies Altaifresh Limited, Shanghai Mirong Fruit Co. ltd, and Freshport Group held a meeting with Kingberry, Earlycrop, Hortifrut Expofresh, and Frutucuman from Tucuman. Currently, 1.5% of the province’s total blueberry export makes its way to China, and this dialogue aims to continue to expand Tucuman’s influence in this Asian market.
During the visit, the Chinese companies visited several cherry and blueberry growing centers and participated in Cherry Day, a special event. Altaifresh Limited was a participant at this event, during which they were given an introduction to the growers and logistics companies to get a deeper understanding of the fruit export of Argentina.
Cherry Day
Mike Wang of Altaifresh Limited said, regarding the export prospects of blueberries and cherries from Argentina to China, that in terms of cherries, its capacity in supplying late varieties is sufficient compared with Chile. The varieties supplied by the two countries are similar, but in terms of the current export volume, the difference is huge. Chile’s exports last year were more than 9,000 containers, while Argentina’s total exports were only about 250 containers, including exports to countries other than China.
“In addition, unlike products from Chile, the tariff on Argentine cherries is 10%, which increases the trading cost. In terms of logistics, cherry export to China from Argentina makes use of Chilean ports. In terms of air transport, Argentina’s air freight has a huge advantage over Chile. Cherries from Argentina have an air freight rate of $3-3,50 per kilogram, while that of Chilean cherries is about $5. Last year, Argentina only exported a few containers to China, but this is expected to increase significantly this year.”
“As the demand for imported cherries in China is growing stronger, Argentina, like Chile, is also targeting this huge sales market. Whether it’s in Chile or Argentina, the acreages planted with cherries are increasing every year.”
The California Table Grape Commission recently assessed crop volume and projected a final total of 109 million 19-pound boxes with shipments continuing into January.
With 40 to 50 percent of the California table grape crop typically shipping after October 1, Kathleen Nave, president of the commission, notes that grapes are very definitely a fall and early winter fruit. “Grapes from California are stunningly beautiful, full of flavor and phytonutrients, and are both a healthy, anytime snack and a simple, awe-inspiring ingredient,” said Nave. She also suggested that fall is the time to search out new uses and try varieties that are unfamiliar.
In speaking about the crop, Nave noted that in July California table grape growers thought they had the third largest crop in history hanging in their vineyards but, recent assessments indicate the crop is in the normal range of 109 million 19-pound boxes, similar in size to the crops of 2014 through 2017. Noting that there comes a point when retailers can offer imported grapes to their customers instead of sticking with California-grown grapes, Nave said the commission will continue working with retailers to promote the crop and will encourage them to carry California grapes into January.
This year’s domestic supplies of mandarins and clementines are getting underway with some lower supplies.
“The supply situation is very different from last year at this time where we had an oversupply,” says Veronique Sallin with IMG Citrus in Vero Beach, Fl. She notes that Florida is just starting with small volumes of Early Pride varieties as South America and South Africa shipments of mandarins are phasing out. “So currently on the market, supplies are very short,” says Sallin. “Chile’s production is down about 15 percent. California or Morocco clementines will not be on the market before November.”
Over at Ripe to You based in Reedley, Ca., Madalyn McCracken notes she’s waiting for Satsuma mandarins to come into maturity. “We’ve started shipping some specialty citrus varieties but we’re still a few weeks away from harvesting Satsumas,” says McCracken, adding that the Lil Ninja Kishu mandarins and Daisy mandarins will be ready in late November to early December. She does note that preliminary field checks show that supplies are similar to last season.
Multiple countries of origin Supplies of mandarins, clementines and tangerines are now available year round with domestic California and Florida production and imports from Chile, Peru, Uruguay, Mexico, Morocco and South Africa. “Spain used to be a supplier to the U.S. market in the winter, but with recent 25 percent tariffs imposed on this origin, things will change,” says Sallin, adding that summer competition comes as well from Australia in small volumes.
Meanwhile, right now, there are still supplies of fruit from imported markets as the suppliers wrap up their seasons. “We anticipate significant competition in the domestic market as numerous new brands are entering the market for the first time this season,” says McCracken.
Photo: Ripe to You
As far as demand, with stone fruit and other late summer commodities come to an end, winter citrus will come into play. “We’ll spend these early season months planning and finalizing promotions with our retail partners,” says McCracken.
The pick up in consumption Overall in the category, Sallin notes that consumption should go up this year with support from heavy promotion budgets allocated to the category by large producers in California. “The consumption convenience of an easy peeler, seedless for many of the varieties, and the consistency of taste have been driving sales increases,” says Sallin.
Yet, the question is: will the increase in demand match the large production volume increases that are anticipated in the future due to extensive young plantings in California, Chile, Peru and even China? “In agriculture, balance between supply and demand is never seamless. We can expect peaks and valleys,” says Sallin. “When a product becomes unprofitable due to lower market prices, acreages will be pushed to give way to more profitable commodities.”
Photo: IMG Citrus
However some regions, such as Florida, are working on variety development that consumers will see down the road. “Florida’s seeing new varieties of easy peelers being planted such as Tangos and Orris which are produced in other areas of the world but new to Florida,” says Sallin. “Bingos is another new variety planted in Florida.”
Yet, for now, as the mandarin supplies thin out, prices are likely to push up. “They are now $36-$38 per carton when they were in the mid $20s last year at the same time,” says Sallin. The shortage of this type of citrus will likely remain until California gets started.
Farm to table is the ethos of the last decade’s food culture, or in our industry’s case, it’s often farm to store shelf.
Big box retailers are sourcing directly from farms. Some growers are reaching out directly to consumers.
Where does this leave all the professionals who do the middleman magic — the work that’s not seen in the mainstream foodie consciousness?
During a recent visit with several business leaders at Hunts Point Produce Market in the Bronx, N.Y., I learned a bit more of what’s on the minds of wholesalers, brokers, distributors, shippers and logistics experts housed there.
Their sentiments echoed what I’ve heard on my visits in the past eight months to the New England Produce Center, Boston Market Terminal, Philadelphia Wholesale Produce Market and Montreal’s Place des Producteurs du Marché Central.
Bypassing the middleman can mean the grower gets to keep more of the profit and better control the quality of the product from start to finish. That business model requires companies on both ends to integrate more vertically to handle other aspects of this business within the company.
But there were good reasons people needed these in-between professionals in the first place.
Many growers, as well as grocers and restaurants, have told me they need to focus on their main tasks at hand. Standing in the soil surrounded by their crops, I’ve had growers in New York, New Jersey and Quebec tell me they don’t have the time, money, expertise or desire to worry about the rest.
Have you ever wondered how a restaurant that has an exhaustive, book-length menu can do each dish well? I tend to trust more in the high quality and attention paid to a dish on a smaller menu. Same concept.
To complicate matters, there’s always a second truism to contradict the first one. First, master one thing well, rather than spread yourself too thin trying to be all things to all people in a mediocre manner.
On the other hand, diversification can help a business survive in this changing industry.
Even so, Hunts Point Produce Market still plays a vital role in feeding many Americans.
In a 50-mile radius, the market’s 35 merchants feed 9% of the U.S. population, generating about $2.3 billion in sales a year, providing food to 23,000 restaurants, 2,500 greengrocers and filling orders for big retailers, according to the market website.
Helping the shippers move their produce is no small feat.
It requires a depth and breadth of knowledge in logistics, food safety, food quality, problem-solving skills and ability to act quickly and efficiently with one of the most perishable products out there. When their customers on the buy side or the sell side are in a jam with too much or too little product, these terminal market professionals are there to fill in the gaps or sell off the extras.
