Recent Price Fluctuations in Produce

🌱 Good afternoon, and welcome to today's fresh newsletter! 

👉 In today's email:

• USDA Report Highlights Sharp Price Fluctuations in Several Products

• Fresh Del Monte Appoints Dr. Nizar Haddad to Lead Innovation & Sustainability Initiatives

• Sun World International Unveils Innovative Grape Varieties

• Fresh Del Monte: A Legacy of Freshness and Innovation

USDA

USDA Report Highlights Sharp Price Fluctuations in Several Products

The latest USDA report reveals significant fluctuations in the pricing and movement of key perishable products such as avocados, tomatoes, cucumbers, and blueberries across the U.S., Mexico, and Canada during the week of August 18-24, 2024.

Avocado imports from Mexico surged, with over 33 million pounds crossing into the U.S., causing a price drop for smaller sizes (60-84s) due to the influx, while larger sizes (32-36s) retained higher prices because of limited supply.

Cucumber movement from Mexico through Texas increased sharply as the Labor Day holiday approached, pushing prices up to $22.85-$24.85 per carton, although quality varied across shipments.

Tomato prices, conversely, declined significantly for Mexican imports and those from California's Central District, despite generally good quality, with Vine Ripes priced between $16.95 and $18.95.

Blueberry supplies from Washington and Oregon are tightening as the season ends, causing a price increase to $20.00-$22.00 per flat, while heavy rains in Canada have negatively impacted the quality of blueberries crossing through Northwest Washington.

The report highlights that adverse weather conditions, labor disputes, and seasonal trends are influencing the supply and pricing dynamics of these commodities.

Holiday demand, especially for Labor Day, is expected to exacerbate these trends, potentially leading to further price volatility.

Stakeholders across the supply chain are urged to monitor these changes closely as market conditions remain unpredictable.

The report underscores that consumer prices for these products could experience notable shifts in the coming weeks.

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FRESH DEL MONTE

Fresh Del Monte Appoints Dr. Nizar Haddad to Lead Innovation & Sustainability Initiatives

Fresh Del Monte Produce Inc. has appointed Dr. Nizar Haddad as its new Director of Innovation and Business Development. He will also serve as General Manager at De l’Ora Bio, a joint venture between Fresh Del Monte and Vellsam Materias Bioactivas, which recently opened a biofertilizer plant in Kenya.

Dr. Haddad’s role will focus on driving innovation strategies and overseeing the biofertilizer production that aims to convert pineapple byproducts into valuable agricultural inputs, reducing waste and enhancing sustainability.

His appointment aligns with Fresh Del Monte’s goal to improve operational efficiency and foster sustainable agricultural practices through innovative approaches.

Dr. Haddad brings extensive experience from his previous role as Director General of the National Agricultural Research Centre (NARC) in Jordan, where he led efforts in digitalization and smart agricultural solutions.

His initiatives at NARC, such as the establishment of the region’s first agricultural innovation incubator and the National Seed Bank, have had a transformative impact on Jordan’s agricultural sector.

At Fresh Del Monte, Dr. Haddad is expected to leverage his expertise to propel the company’s innovation strategy, particularly in biofertilizer production, a key growth area for the company’s sustainability objectives. His leadership is anticipated to enhance Fresh Del Monte’s position at the forefront of industry innovation and sustainable practices.

Mohammad Abu-Ghazaleh, Chairman and CEO of Fresh Del Monte, expressed confidence in Dr. Haddad’s ability to advance the company’s mission, highlighting his alignment with Fresh Del Monte's focus on sustainable development and innovation.

Under Dr. Haddad’s leadership, the biofertilizer plant in Kenya will play a crucial role in Fresh Del Monte’s sustainability initiatives by repurposing agricultural waste into high-quality fertilizers.

The Kenya facility signifies a major step in Fresh Del Monte’s commitment to sustainability, reducing waste and maximizing resource use, thereby positioning the company as a leader in innovative agricultural practices.

Fresh Del Monte continues to be recognized for its sustainability efforts, having been named one of “America’s Most Trusted Companies” by Newsweek for three years running.

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GRAPES

Sun World International Unveils Innovative Grape Varieties at Annual Field Day

Sun World International hosted its annual Mid- to Late-Season Table Grape Field Day on August 22 at its Center for Innovation in Wasco, California, unveiling new grape varieties, EPIC CRISP® and APPLAUSE™.

Over 250 global partners, including growers, marketers, and retailers, attended the event, which showcased Sun World’s latest advancements in table grape breeding and innovation.

The new brands, EPIC CRISP® and APPLAUSE™, are expected to drive consumer demand and sales due to their high-quality, consistent eating experiences. EPIC CRISP® offers a sweet, juicy flavor with an intense crunch, while APPLAUSE™ features a sweet, tropical fruity taste and diverse options in colors and sizes, providing a unique twist for consumers.

The Field Day included guided tours of Sun World’s commercial test blocks, allowing attendees to see these new grape varieties in a real-world vineyard setting.

Participants also viewed demonstrations of cutting-edge automated harvesting robots from Tortuga, underscoring Sun World’s commitment to innovation and the future of agriculture.

Sun World also highlighted the success of the AUTUMNCRISP® brand, a green seedless variety, which has seen strong market growth due to strategic global marketing efforts.

Elena Hernandez, Sun World’s director of global marketing insights, shared insights on the early successes of the AUTUMNCRISP® launch and outlined upcoming retail partnerships aimed at further expanding the brand’s market presence.

The event emphasized the importance of collaboration between Sun World and its grower partners to elevate its grape varieties through effective marketing and distribution strategies.

Kyle Hackett, president of Dayka & Hackett, praised the partnership's success in driving consumer demand for AUTUMNCRISP®.

Sun World's launch of the APPLAUSE™ and EPIC CRISP® brands reflects its ongoing dedication to innovation and its ability to bring consumer-driven products to market.

The company continues to set new standards in the grape industry through its focus on quality, diversity, and technological advancements.

Sun World is recognized as a global leader in variety development and licensing, with a network spanning multiple continents, including the U.S., Europe, Australia, and South America.

Its recent global marketing campaign for AUTUMNCRISP® represents one of the largest branded grape promotions, aimed at enhancing demand and revenue for its licensees.

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INDUSTRY SPOTLIGHT

Fresh Del Monte: A Legacy of Freshness and Innovation

In the bustling global marketplace of fresh fruits and vegetables, few names resonate as powerfully as Fresh Del Monte Produce Inc. Established in 1989, this company has become one of the world’s leading producers, distributors, and marketers of fresh and fresh-cut produce.

With a history rooted in resilience and an unwavering commitment to quality, Fresh Del Monte has earned its place at the table of global agribusiness giants.

Fresh Del Monte Produce Inc. may be a global powerhouse today, but its origins are modest. The company was formed when RJR Nabisco sold the fresh fruit division of Del Monte Foods to Polly Peck in 1989.

After a series of ownership changes, including a period under Mexican businessman Carlos Cabal Peniche, the company found stability when it was purchased by Mohammed Abu-Ghazaleh in 1996.

Under his leadership, Fresh Del Monte went public in 1997, solidifying its position in the global market.

Headquartered in George Town, Cayman Islands, with its U.S. executive office in Coral Gables, Florida, Fresh Del Monte operates a sprawling network that serves over 90 countries worldwide.

The company’s vertically integrated operations, from farming to transportation, ensure that its products, ranging from pineapples and bananas to fresh-cut vegetables and prepared foods, reach consumers in the freshest possible condition.

Its diverse product portfolio is at the heart of Fresh Del Monte’s success. The company is the largest marketer of fresh pineapples in the United States and holds significant market positions in other key regions.

The Del Monte Gold® Extra Sweet pineapple, launched in 1996, remains one of its flagship products, known for its superior taste and quality.

In addition to pineapples, Fresh Del Monte is a major player in the banana market, being the third-largest marketer in the U.S.

The company’s bananas are sourced from its own farms in Central America and the Philippines, as well as from independent growers.

This integration of supply chains ensures a consistent, year-round supply of high-quality bananas to meet global demand.

The company’s fresh-cut produce segment is another cornerstone of its operations, representing 20% of its total net sales in 2023. Fresh Del Monte’s expertise in this area allows it to cater to the growing consumer demand for healthy, ready-to-eat foods, with products like packaged salads, cut fruits, and vegetables leading the charge.

Fresh Del Monte’s commitment to innovation is evident in its product development strategies. The company has consistently introduced new varieties and products to the market, such as the Pinkglow® pineapple and the carbon-neutral Del Monte Zero™ pineapple.

These innovations not only cater to consumer preferences but also align with the company’s sustainability goals.

Sustainability is a key pillar of Fresh Del Monte’s operations. The company’s farms in Costa Rica have been certified as carbon neutral, reflecting its dedication to reducing environmental impact.

Furthermore, Fresh Del Monte’s logistics network, which includes a fleet of fuel-efficient refrigerated ships and advanced cold storage facilities, underscores its commitment to maintaining the freshness and quality of its products while minimizing carbon emissions.

According to their website, 88% of their products are grown on farms certified as Sustainably Grown by SCS Global Services.

Despite the challenges posed by global market conditions, Fresh Del Monte continues to thrive.

In 2023, the company reported net sales of $4.32 billion, with North America being its largest market, accounting for 60% of total sales. Europe, the Middle East, and Asia also represent significant markets for the company.

Fresh Del Monte’s ability to navigate complex supply chains and meet consumer demand has been a testament to its resilience.

The company’s logistics operations, which span land and sea transportation, are designed to ensure that products reach consumers in optimal condition, regardless of their location.

This logistical prowess gives Fresh Del Monte a competitive edge in a highly fragmented and competitive industry.

What truly sets Fresh Del Monte apart is its deep commitment to quality, innovation, and sustainability.

The company has earned a reputation for delivering fresh, reliable products, thanks to decades of meticulous farming practices, rigorous quality checks, and a keen understanding of what consumers want.

But Fresh Del Monte doesn’t just view sustainability as a checkbox, it’s a core part of their strategy.

As more people become aware of the environmental impact of their food choices, Fresh Del Monte’s carbon-neutral initiatives and sustainable farming methods help them stand out as a leader in the industry.

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TIP OF THE DAY

Implement a Loyalty Program to Reward Repeat Customers

Looking for a proven strategy to increase customer retention and boost sales? Launch a loyalty program that rewards your customers for their repeat purchases!

Create a simple points-based system where customers earn points for every dollar spent, or for specific actions like purchasing a featured product, leaving a review, or referring a friend.

Once they accumulate enough points, they can redeem them for discounts, free products, or exclusive perks.

Promote your loyalty program prominently across all marketing channels—your website, newsletter, social media, and even in-store.

Use compelling language to communicate the benefits and make it easy for customers to join and track their progress.

A well-designed loyalty program not only incentivizes repeat purchases but also builds a stronger emotional connection with your brand.

It encourages customers to choose you over competitors, increasing their lifetime value and enhancing customer satisfaction.

Make sure to keep the program fun and engaging by offering special bonuses, double-point days, or exclusive rewards for top-tier members.