Super - Flagler Global Logistics

Fresh Food
Produce
Super
South
America
Imports increasingly help meet the demand
for sensational superfoods.
By Jennifer Strailey
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S
outh America is a diverse continent, rich in microclimates and soil
that are ideal for the cultivation of
favorful fresh fruits and vegetables.
With growing seasons that complement gaps in U.S. production,
demand for fresh produce from South American
countries continues to swell.
Among the leading suppliers of fruits and
vegetables to the United States, six South American countries — Chile, Peru, Ecuador, Argentina,
Brazil and Colombia — are in the top 15, according
to the congressional report “Te U.S. Trade Situation for Fruit and Vegetable Products,” by Renee
Johnson, a specialist in agricultural policy.
Chile, our most signifcant South American
supplier, is tied for third with China, accounting for
an 8 percent share of total import value of fruits and
vegetables to the United States. Only Mexico and
Canada provide our country with more produce.
While the nation’s appetite for fresh fruits and vegetables year-round is driving imports, advancements
and increased efciencies in the global supply chain are
creating more opportunities to meet demand.
| Progressive Grocer | Ahead of What’s Next | September 2015
Fresh Food
Shoppers are
eager to infuse
exotic flavors
into their
dishes.”
—Marion Tabard,
Turbana
GrowinG
ThrouGh hooPS
wish Farms’
Argentinean
blueberry crop
is safe from bad
weather under
hoops.
Produce
Colombia and Ecuador
As a leading importer of bananas, plantains and
pineapples, Coral Gables, Fla.-based Turbana attributes 82 percent of its business to South American
imports, specifcally from Colombia and Ecuador.
“Since our inception in 1970, Turbana has
invested in social and economic projects within our
growing regions,” says Marion Tabard, director of
marketing. “Over the years, we have continued to
adapt our operational efciencies to ft the growing demand of our business, which has led to an
increase in imports from these regions.”
Tabard further notes that an increase in more
consistent weekly sailings of South American
shipping lines has also allowed for an increase in
imports from these countries.
Te largest importer of plantains and one of the
largest importers of bananas to North America,
Turbana notes that its best-sellers from South
America are bananas, pineapples and plantains.
“Tese tropical fruits ft into the larger, more
recent culinary trends — fusion cuisine and
healthy eating habits,” observes Tabard. “Shoppers are eager to infuse exotic favors into their
dishes. For instance, by incorporating our plantains into a Hispanic-inspired dish, customers
are able to experience a unique, favorful twist,
while also receiving their daily dose of vitamin
A and potassium.”
Tis October, Turbana will participate in the
Marine Corps Marathon (MCM), located in the
Washington, D.C., area, as the event’s ofcial
banana sponsor and composting partner. “Since
2012, we’ve fueled MCM runners with 30,000
bananas yearly through our Powered by the Peel
initiative,” notes Tabard.
Argentina
Te second-largest country in South America, Argentina is well known for its fertile soil and diverse
growing conditions that permit the cultivation of a
wide variety of agricultural products. According to
the U.S. Trade Ofce, U.S. imports of agricultural
products from Argentina totaled $1.8 billion in
2013, with wine, beer, and fruit and vegetable juices
representing the lion’s share.
Argentina is also becoming an increasingly important supplier of blueberries to the United States.
While Chile is responsible for the majority of our
fresh blueberries from the Southern Hemisphere,
Argentina is No. 2, notes the U.S. Highbush Blueberry Council, in Folsom, Calif.
Wish Farms, a Plant City, Fla.-based grower,
shipper and year-round supplier of strawberries
and blueberries, recently revealed that its upcoming
Argentina blueberry program is projected to double
in volume over last season. Te company expects to
see the frst signifcant volume of blueberries out of
Argentina during the frst week of October, with supplies continuing through November. Te timing will
segue perfectly into what Wish Farms anticipates will
be another strong season for Chilean blueberries.
“Our blueberry team continues to focus on
steady, controlled growth,” notes Wish Farms
Director of Blueberry Operations Teddy Koukoulis. “Tis season, our new partnership with a
signifcant grower helps solidify our
Argentina program and stabilize volume for our customers.”
Wish Farms estimates it will market
nearly 1.5 million pounds of Argentinean
blueberries this year. To protect the crops
from rain, which can negatively afect the
Argentine blueberry harvest, many of the
blueberries will be grown under hoops
or tunnels that provide protection from
inclement weather.
Brazil
Ask Robert Schueller, director of public
relations for Los Angeles-based specialty
supplier Melissa’s Produce, what’s hot and
trending in South American produce, and
“Brazil,” is the frst thing he says. From
Tommy Atkins Mangoes (from August
to November) to Strawberry Papayas
(year-round), Brazil is an increasing
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| Progressive Grocer | Ahead of What’s Next | September 2015
Fresh Food
Produce
source of tropical fruit imports for Melissa’s.
When it comes to papayas in particular, our
nations are well matched, as Brazil is one of the
world’s leading exporters of papayas, while the
United States is the world’s No. 1 importer of them.
Te Produce Marketing Association (PMA) has
its fnger on the pulse of Brazilian produce. Last
month, the Newark, Del.-based organization held
its second annual Brazil Fresh Connections event in
Sao Paulo.
“Te full spectrum of the fresh produce industry
attends — suppliers, growers, wholesalers and supermarkets,” asserts Nancy Tucker, PMA’s VP of global
business development. “For now, we focus primarily
on fresh fruits and vegetables,” she continues, noting
that PMA hopes to expand the event to include foral.
Brazil is currently the No. 3 global producer of
fresh fruit, according to PMA. In addition to the fruits
mentioned earlier, the country is a signifcant producer
of oranges, bananas, apples, grapes and pineapples.
While Brazilian orange and apple production
are forecasting declines, tropical fruit production is increasing. However, in the frst 10-year
Supply Chain Management
At Flagler Global Logistics, an integrated provider of supply
chain management services, new technology in tandem with a
new Miami-based facility is shortening travel time from farm to
table, and extending the shelf life of South American produce,
including blueberries, grapes and asparagus.
“If you think about a global supply chain, we can feed the
world — all commodities are grown year-round — but the supply chain has been ineffective,” says Chris Scott, Flagler’s CEO.
“I think we’re about to see a change in the whole global supply
chain, so that we can take anything grown in the world at any
time and get it where it needs to go.”
Coral Gables, Fla.-based Flagler’s patented, USDA-approved fumigation process for perishables, which uses a lower
controlled temperature than traditional methods, is now available at the new treatment facility in Miami, allowing Chilean
grapes to come through south Florida for the first time.
Previously, these grapes, along with other South American
produce, including blueberries, ginger and asparagus, were
required to go through a treatment facility in Philadelphia.
After treatment, the produce would then go through Miami.
The USDA requires that any imported produce with po-
136
forecast for the country’s fruit production, Brazilian authorities predicted a signifcant increase in
production for six fruit crops: melons (39.3 percent), apples (31.2 percent), grapes (21.1 percent),
papayas (12.6 percent), mangoes (25.9 percent)
and bananas (9.1 percent).
According to International Trade Centre (ITC)
data, the value of fresh fruit imports from Brazil into
the United States is $55 million. While this number
represents a decline in recent years, U.S. mango supplies from Brazil have increased 30 percent in volume
as U.S. mango consumption has continued to rise.
tential pest problems be treated to
mitigate the risk. Currently, three
principal treatment methods are
I think we’re
used on fruit and vegetable imports:
cold treatment, irradiation and
about to see a
fumigation.
change in the
Flagler’s patented fumigation prowhole global
cess reduces temperature fluctuasupply chain, so
tions and condensation on the fruit.
that we can take
It also offers enhanced airflow during
anything grown
fumigation, cooling and storage.
in the world at
To quantify the benefits of its
any time and
new, patented technology, Flaget it where it
gler hired The Illuminate Group to
needs to go.”
conduct a quality study of perishables that tracked product from the
—Chris Scott, Flagler
farm to the distribution center and
Global Logistics
measured numerous data points
throughout the cold chain.
The Illuminate Group found that perishables fumigated
by Flagler have an additional seven to 10 days of retail
quality shelf life compared with traditional fumigation.
“They found that the product actually decays at a slower
rate than it does normally,” notes Scott.
The south Florida facility will further save time and
money for produce going to the Southeast and as far west
as Texas, he adds.
Currently, most of Flagler’s volume is from Argentina and
Peru, but this may expand as the company grows. “We’re
looking at creating more facilities,” says Scott. “I anticipate a
huge push forward in the next five years.”
| Progressive Grocer | Ahead of What’s Next | September 2015
Fresh Food
Peru is really
evolving as a
player, with
quality and
volume in
both U.S. and
European
markets.”
—Xavier Equihua,
Peruvian Avocado
Commission
Produce
Peru
“Peru is really evolving as a player, with quality
and volume in both U.S. and European markets,”
asserts Xavier Equihua, president and CEO of the
Peruvian Avocado Commission (PAC), in Washington, D.C. “In the last 10 years, we’ve seen the
transformation of Peru from a small exporter of
fruits and vegetables to one of the largest exporters
of superfoods to the world.”
Avocados, blueberries, pomegranates and more
are cultivated in Peru’s ideal growing conditions.
“Peru is often called a natural greenhouse,” notes
Equihua. “It’s blessed with incredible growing conditions, and water sourced from the Andes Mountains is a key ingredient.”
Tis year marked the third season of the Monumental Avocados from Peru campaign. In the past
three years, avocado exports from Peru to the United
States have tripled, from 50 million to 150 million
pounds. What’s more, Peruvian avocados are only
available Stateside for three months of the year.
“It’s amazing how well the fruit is doing,” says
Equihua. “Tere were weeks [this summer] that Peruvian avocados commanded a higher price than any
other imported fruit. It was a frst for the category.”
As part of
the Monumental
campaign, PAC worked
with 2,600 Walmart stores during the month of
July to conduct demos of Peruvian avocados. Additional promotions were held at Ahold USA and
Wakefern Food Corp. stores. Additionally, radio
spots were aired in more than 50 markets.
“Te radio spots were very unique in that the
30-second spots incorporated the name of the
retailer from the start,” observes Equihua. “It
worked very well.”
PAC is currently ofering a 145-page online
cookbook for grocers. “We’re ofering it to retailers
who want to link to the cookbook on their websites
or through Facebook,” notes Equihua.
Beyond avocados, Peru exports blueberries and
grapes to the United States, and Equihua hopes
to add pomegranates to the list next
year. “Peru will have a wonderful
window in the fall for blueberries at
their peak,” he explains, adding that
the country is in the process of planting more hectares of the fruit.
“Peru is also an emerging giant on
grapes, and doesn’t compete with U.S.
production,” says Equihua. “When
people think of grapes, they think of
California and Chile, but Peru has been
substantially increasing production.”
Chile
As the southernmost country in the
world, Chile boasts long harvests that
contribute to favorful fruit. According
to the Ofce of the U.S. Trade Representative, U.S. imports of fresh fruit
from Chile total $1.6 billion. Grapes
account for nearly half of the import
volume, while apples, avocados, berries
and stone fruit round out the majority
of the remaining volume.
Tis year marked the frst year
that Chilean clementines were
imported into the United States.
Te clementines were available May
through August, and were followed by late-season mandarins (W.
Murcotts), which became available
last month. Supplies are expected to
continue through October. PG
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| Progressive Grocer | Ahead of What’s Next | September 2015