Posts Tagged: sales
One avocado tree, wholesale, recently sold for $92 in South Africa with 250 trees in a bunch costing about $23,000. They are ‘Maluma', of course, which means it is a new variety that has similar properties to the traditional ‘Hass', and might have some unusual properties like higher productivity, upright growth lending itself to higher planting density and fruit production inside the canopy protecting it from wind and sunburn (Fresh Fruit Portal, 2017).
At a traditional California tree spacing of 273 trees/ha, that would be $25,116 / ha. At some of the new high density spacings of 1 m x 1m, that is nearly a million dollars per hectare alone in trees, let alone the cost of the land and infrastructure. And that is just one hectare, not the multiples of hectares that growers are planting. There are growers investing in five, ten, twenty and more hectares per planting. Big investment.
One million dollars in trees. Nurseries are happy to hear this. If a grower in California or South Africa or Australia wants to plant a new orchard, they are told to get in line. And then, they need to wait for one or two years until the nursery can ramp up supply. I have gotten calls from China, Philippines, and Italy of all places for trees. Everyone wants to plant trees now, and this has been after a steady increase in world-wide planting that has gone on for the last 20 years. World-wide consumption has seen a steady increase over this time. World-wide, global marketing has assured a steady supply to local markets, regional markets and now all those consumers in far off places like North Dakota in the US, or other countries, such as Beijing and Moscow. French and German consumers have always been reliable importers of the fruit over the years. But now even traditional Italian foodies are eating the fruit.
What is driving this activity? Well, consumers, of course. They have caught the ‘avocado toast' bug. And the health benefits bug. It's all online and a lot of the claims are backed up by science (Scott et al, 2017). According to IndexBox (2017), a data compiling news service, the avocado market expanded at +5.6% per year from 2007 to 2016. Over the last six years, the market displayed a consistent growth; it accelerated sharply from Price of the fruit showed growth. Wholesale prices in 2016 totaled $13,797M, a growth by 23% over the previous year.
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So, I got the question of what a carton of ‘Meyer' lemons weighs
Because different types of fruit are different sized, but usually the container in which it is sold stays the same, the product is going to have a different weight for the same volume. Big fruited pummelos fit fewer fruit and weigh less in a given volume than little kumquats will. However, some varieties are also sold by the weight. California ‘Valencia' oranges for some reason used to weigh 37.5 pounds per carton until 2010 when it was restandardized to 40 pounds. That kind of makes sense.
A local tangerine packer/grower says that they have always packed into half-bushel “cartons” which are 38-pound cartons. More and more the “Cuties” and “Halos” go into 5-pound equivalent cartons.
A California carton is different from a Florida carton which is 4/5 of a bushel box or a ½ field box. There a field box is 1 3/5 bushel or a 2-compartment open-top wooden container equivalent to 90 pounds of oranges or 85 pounds grapefruit or 95 pounds tangerines.
The butt was a measure of liquid volume equaling two hogsheads. This equated to 108 imperial gallons (490 l) for ale or 126 imperial gallons (570 l) for wine (also known as a pipe), although the Oxford English Dictionary notes that "these standards were not always precisely adhered to".
The tun (Old English: tunne, Latin: tunellus, Middle Latin: tunna) is an English unit of liquid volume (not weight), used for measuring wine, oil or honey. Typically, a large vat or vessel, most often holding 252 wine gallons, but occasionally other sizes (e.g. 256, 240 and 208 gallons), was also used.
So that's what a carton of ‘Meyer' lemons weighs.
Avocados are usually packed into lugs which weigh 25 pounds and can hold a variety of different sized fruit, but they all fit into the same sized carton.
Synopsis of: “The Organic Premium for California Blueberries” by Hoy Carmen, professor emeritus in the Agricultural and Resource Economics Dept., UC Davis
Commercial-scale production of blueberries in California is a relatively recent development. California first reported blueberry statistics in 2005 when there were 1,800 acres of blueberries harvested and production of 9.1 million pounds with a total value of $40.58 million. Harvested acres increased to 3,900 acres in 2010 with production of 28 million pounds and a total value of $75.98 million. Growth continued through 2015 with California Agricultural Statistics Survey (CASS) reporting 5,700 acres of blueberries harvested, production of 62.4 million pounds, and total value of $116.98 million.
California blueberries are shipped throughout the U.S. and to a number of export destinations. During the 2016 harvest, California's largest U.S. market was California, which accounted for 34.75% of California's total fresh blueberry shipments of 46,493,407 pounds.
The largest out-of-state domestic shipments were to Texas, Oregon, Washington, Arizona, New York, Minnesota, Utah, and Pennsylvania. These states collectively accounted for 36.54% of California shipments. Canadian shipments of 5.54 million pounds accounted for 11.9% of California's volume and made up 67.1% of exports.
Typically, the price per pound of organically grown blueberries is higher than for conventional production. Prices also vary by package size, with smaller package sizes usually selling for more per pound than larger packages. There is usually a premium for the first portion of the crop-marketing year, and the overall level of prices will vary by year. Prices can also be expected to vary by geographic location. California organic blueberries are among the first domestic fruit on the market when prices tend to be seasonally high.
Growth in California organic blueberry production has outpaced conventional production for several years, and California accounted for about half of the U.S. supply of organic blueberries in 2014. The organic share of California blueberry shipments in 2016 was 23.1% in terms of volume and 34.8% in terms of value. The larger share of value is due to the premium price for organic blueberries.
The organic premium, which averaged $2.28 per pound in both 2015 and 2016 (78–79% of the conventional fresh blueberry price), varies by package and over time. California has some of the earliest domestic blueberry production, with relatively high prices for both conventional and organic blueberries at the beginning of the season. The proportion of shipments that are organic decreases as the season progresses and the organic premium tends to be highest after the first one-third of the season. The growth of organic blueberry production in California, relative to overall California production as well as U.S. organic blueberry production, seems to indicate a comparative advantage for organic blueberries in California. Further growth of organic as well as total blueberry production in California is expected.
For the full article see:
Organic production costs, South Coast
Conventional costs, South Coast
Conventional, San Joaquin Valley
Report on US Organic Sales, 2016