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US set for record farm imports in 2015

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Growth in value and volume of US imports of fruit and veg

Next year will see a new record in agricultural imports by the United States with a likely total of $116 billion, up $6.8 billion on this year, the USDA’s Economic Research Service (ERS) says.

And along with this, US imports of fresh fruit and vegetables will gain in both volume and value, the ERS said its report “Outlook for US Agricultural Trade”.

“Horticultural product imports have continued to increase in value and are projected to exceed $50 billion in fiscal 2015. Led by fresh fruits and vegetables, which account for more than a third of the total horticulture import value, the other horticultural products are all expected to rise in 2015 in both volume and value,” it said.

Wine, beer, processed fruits, and processed vegetables are expected to together account for about $20 billion of the total horticulture imports, which in the last 23 years” have continuously increased in value (except in 2009). Import unit values for horticultural products are less volatile than for other major tropical commodities, and annual price changes have been typically small,” the ERS said.

 

Fruit imports to reach $10.3 billion

The outlook shows the country’s fresh fruit imports next year are estimated to reach a value of $10.3 billion, up from nearly $9.46 billion this year, with a volume of 11.4 million tons, up from 10.85 million.

The relative forecasts for fresh vegetables are a value of $7.1 billion and volume of 6.8 million tons, up from $6.65 billion and 6.4 million tons last year.

US fresh fruit & veg exports of $7.9 billion

Meanwhile the US 2015 export forecast for horticultural products is a record $37.0 billion, with fresh fruit and vegetable exports to deliver $7.9 billion of this. Exports to Canada, Europe, and Japan are expected to continue expanding, it said.

 

source: Outlook for US Agricultural Trade

 

 

 

 

 

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Mexico expects stronger avocado exports in 2014/2015

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Modest growth will bring Mexico’s Hass avocado production to 1.5 million tons for the 2014/2015 marketing year (MY), according to the USDA’s Foreign Agricultural Service (FAS).

Growers estimate the country’s avocado exports will also increase, to about 700,000 tons, though this could end up being higher as world prices are expected to be lower, FAS said in its recent Mexico Avocado Annual report.

Mexico exports avocados to 21 countries but its top markets are the US (accounting for the vast majority), Japan, Canada, Costa Rica, El Salvador, Honduras, and France.

 

 

Michoacán grows most of Mexico’s ‘green gold’

The state of Michoacán, in western Mexico, is the world leader in avocado production, growing 85% of Mexico’s avocado crop. Most avocado production in this avocado belt takes place in small orchards of just 5–10ha.

The vast majority of the export business is managed directly by packers, many of whom have significant US investment. Growers in Michoacán generally sell their fruit on the spot market to a packer in terms of pesos/kg.

Overall yields in Mexico for MY 2014/15 are forecast between 8.9–9.1 MT/ha but yields  of 15–20 MT/ha are expected in the state of Jalisco, which is

planting at higher tree densities and using advanced management technologies.

Due to plant health concerns, Michoacán is currently the only state in Mexico authorized to export Hass avocados to the US. USDA /APHIS registration of authorized pest-free municipalities is required for producers to export to the US.

 

State of Michoacán within Mexico

 

 

Attractive prices for consumers in 2014/15

Export prices were higher than expected in 2014/15. In March 2014, two-layer cartons of Hass 48s from Mexico were reported at prices of $36.25-38.25, up from $31.25-32.25 at the same time in 2013. Prices were higher because California could not supply avocados at the time, and Mexico had some shipping issues.

“Prices for MY 2014/15 began at lower levels and are expected to remain attractive for consumers as the domestic crop is expected to be good,” FAS said.

 

 

 

Click here to read the Mexico Avocado Annual report by FAS

Click here to see photo source
Click here to see source of map showing Michoacán

 

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Mixed prognosis for fresh produce in 2015

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Demand for fresh produce – and in particular that for organic food – should more or less remain strong next year, says BB&T Capital Markets.

But the US-based equity analyst gives a mixed prognosis overall for the produce sector, warning that larger supplies in some sub-categories will probably depress prices and could pressure margins.

In its report “Produce: 2015 outlook”, published December 1, it also said there is a “key headwind” on the demand front for companies with exposure to Europe. Weakening of the euro relative to the USD and the Russian ban will “likely continue to result in excess supplies on that market” though “there is no indication of a large-scale supply response.” It also said the collapse of the rouble has greatly reduced Russian demand.

“Torrid pace of growth for organic salad”

In the last few years, there’s been a pronounced increase in overall demand for fresh produce “and an even greater increase for organic produce” such that “the fresh sections of the store are generating sales growth rates >5x that of shelf stable,” the report said. This shift – propelled by consumer interest in freshness, origin, health, and so on – is expected to keep driving strong growth.

In the case of organic salad, “the torrid pace of growth” is dramatically driving up sourcing costs, “as supply simply cannot keep up with demand.”

Increased banana supply

The largest sub-category within produce, bananas should be in greater supply next year as overall Central American production recovers after “disappointing” productivity this year and that of China and the Philippines also grows.

Strong avocado supply to pressure prices

Avocado volumes into North America should swell in 2015, “propelled by a larger California crop, much larger volumes out of Mexico, and accelerating exports from Peru,” the report said. This should in turn put pressure on prices.

Drought in California

While there has been some rain lately and more is expected in California, about 80% of the state remains in extreme or exceptional drought. The report said the state’s fruit and vegetable sector will generally need much more precipitation.

Warm weather hampers lettuce growers

High temperatures have made the iceberg and romaine markets very tight at present, it said. And while many salad greens producers source from areas with some backup water reserves, unless there’s more rain, their production is likely to be more impacted in 2015, “which would pressure costs further.” “Companies have responded by diversifying sourcing, but it is nearly impossible to completely offset the impact from California’s water woes,” BB&T Capital Markets said.

 

 

Photo by Nikodem Nijaki (Own work) [CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

 

 

 

 
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Bright economic outlook for Saint-Charles International

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Perpignan’s Saint-Charles International – Europe’s most important fruit and vegetable marketing, transport and logistics centre – expects excellent results for the 2014/15 season, with projected increases in volumes, prices and turnover.

According to figures presented at the November 25 AGM of the SNIFL (National Union of Fruit and Vegetable Importers/Exporters), turnover for 2014/15 is forecast to be up 12.54%, volume up 7.94% and prices 4.52% compared to the average for the previous three seasons.

And also based on figures to November 16, the results for 2013/14 are expected to see a 7.79% increase in volume and 4.05% increase in turnover, but a 3.44% slip in prices, compared to the average for the previous three seasons.

Each year, Saint-Charles International handles sales worth €1.6 billion and 1.5 million tons of fruit and vegetables –mainly of Mediterranean origin – and provides 2,500 jobs.

Agreements to share statistics, monitor Moroccan imports

In a press release about the AGM, Saint-Charles International said French Customs and the SNIFL signed an agreement aimed at strengthening relations between them and collaboration on initiatives such as the proposed one-stop customs (GNU) and sharing of statistics.

It also said an agreement was signed between FranceAgrimer (France’s national institution of agricultural and seafood products), the SNIFL and 19 firms with the goal of: “the most comprehensive collection of data enabling a better approach for the calculation of the PFD. That is guaranteed both by the number of operators and their weight in the trade of Moroccan tomato in this case, and by the analysis of different types of tomatoes. Every day before 3pm, the items are sent to the MNC which can exploit them before passing them to the services of the European Commission.”

Importance of Spain for the platform

The AGM was attended by Spanish Consul General Gaudencio Vilas, who described the platform and Spain as “an inseparable duo.” Vilas said Saint Charles International made a huge contribution to the economy of the city of Perpignan and the Pyrénees-Orientales.

He said he would remain vigilant to ensuring “that  free movement of goods within the European Union is respected”, stressing that “the incidents in recent months with Spanish trucks were unacceptable.” Vilas also stressed the importance of future railway links.

Saint-Charles International also paid tribute to Spain’s importance to the market, saying: “Today, Spain is still the leading partner of the platform with some 935,000 ton in citrus fruits, vegetables and fruit, and the main companies of Spanish origin have been since a long time in Perpignan, some since 1968. This meeting was an opportunity for business leaders to show their optimism for future cooperation between Spain and Saint-Charles International, and the parent company of subsidiaries based on the platform has actually confirmed that the Perpignan was for them ‘not cost structures, but added value centers’,” it said.

 

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France’s MedFEL 2015 to feature new tech business gathering

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Apples will be in the spotlight at next year’s MedFEL in Perpignan, the 7th edition of France’s ‘must-attend’ trade fair for the fruit and vegetable sector.

To be held April 21-23 at the Parc des Expositions (Exhibition centre), MedFEL 2015 will provide a comprehensive overview of apples and forecasts for this and four other fruits (apricots, peaches, melons and plums) as part of the programme of debates.

And the event features the launch of MedFEL Tech, a business gathering for fresh produce suppliers from the Mediterranean – which will see pre-production professionals invited to exhibit for the first time – as well as discussions on the difficulties facing the fruit and vegetable sector, the consequences of the Russian embargo, and the French agrifood sector contract.

Organised by Sud de France Développement and the Languedoc-Roussillon Regional Council, MedFEL has grown consistently over the last seven years. Last year’s edition attracted 5,315 visitors (up 10% on 2013), including the F&V sector’s most important buyers, and 241 exhibitors, and was the venue for more than 4,000 BtoB meetings.

 

To register : www.medfel.com

Adhesion Group – 35/ 37 rue des Abondances  – 92513 Boulogne Cedex – France

Nicolas Cuissard  – Tel: +33 (0)1 41 86 49 03  – Email : information@medfel.com

Press contacts:

Sud de France Développement – Jérôme Bouchindhomme

Tel: +33 [0] 4 99 64 29 36 bouchindhomme@suddefrance-dvpt.com

Adhesion Group – Catherine Bourguignon

Tel : +33 (0)1 41 86 41 27 cbourguignon@adhes.com

 

 

 

 

 

 

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Italy faces larger apple crop but decline in pears, table grapes

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USDA FORECASTS 2014/15 MARKETING YEAR (in metric tons)

 

APPLES (marketing year July/June)

 

Production: up 11% rise to 2.38 million

Exports: down slightly (less than 0.5%) to 870,000

Imports: down slightly (just under 3%) to 41,000

 

PEARS (marketing year July/June)

Production: down 2.6% to 707,000

Exports: 146,000 (down slightly from 146,601)

Imports: 103,000 (up slightly from 102,209)

(World’s top pear producers: China, US, Italy)

 

TABLE GRAPES (marketing year June/May)

Production: down 20% to 960,000 on record of 1.2 million in 2013/2014

Exports: 470,300 (down from 500,971)

Imports: 22,320 (up from 20,237)

Withdrawal from market: 9,300

(World’s top table grape exporters: Chile, US, Italy)

 

 

The weather has favoured Italy’s 2014/15 apple marketing season but not that of its table grapes and pears, according to new forecasts by the USDA.

The country’s apple crop is expected to increase by 11% but, after a record harvest last season, that of table grapes will drop a fifth, mainly due to adverse conditions during flowering and fruit set.

And heavy rainfall during the fruit setting and maturity phases makes a 2.6% drop likely in the country’s pear supply compared to last season, the USDA said in its report “Italy: Fresh Deciduous Fruit Annual 2014”.

 

Apples: potential in North Africa, the Middle East

 

The fruit size for the apple season is expected to be above average and quality high.

“Remarkable increases” are forecast for Red Delicious (+19.6%), Granny Smith (+19.6%), Fuji (+12.1%), and Golden Delicious (+9.5%).

Last season, Italy’s apple exports to Russia (mostly Granny Smith and Golden) reached 26,318 tons but in light of the Russian ban since imposed, Italy’s apple sector could look to the growing markets of North Africa and Middle East, the USDA said.

Italy grows about a fifth of the EU-28’s apple production, with Trentino-South Tyrol – which delivers 70% of Italian apple production – alone supplying 15% of the European crop.

 

 

Pears: decline in acreage

With about 34,241ha, mainly in the northeast, Italy is the EU-28’s largest pear producer but the total of its pear orchard area has been declining in the last decade “due to lack of profitable investment opportunities,” the USDA said.

Emilia-Romagna is the area supplying two thirds of Italy’s total pear crop.

Abate Fetel is the dominant variety, followed by William B.C., Conference, Kaiser, Coscia-Ercollini, Decana, Max Red Bartlett, and Santa Maria. Production decreases are forecast for Kaiser, Decana del Comizio, Santa Maria, and William.

Table grapes: drop in wholesale prices

Aside from the unfavorable weather during flowering and fruit set, cold temperatures in mid-July damaged several plantations “thus affecting the fruit quality which overall is forecast to be good,” the USDA said.

“The production drop, slow consumption, and the Russian ban made wholesale prices drop by 25-30% compared to the last season from 1.30-1.50 €/kg to 0.70-1.20 €/kg.”

Italian table grape production – which ranks sixth globally in volume – is mainly in  Apulia and Sicily, with Italia, Victoria, and Red Globe the varieties accounting for two thirds of the table grape area.

“In the last few years, Italy has gradually moved to seedless grapes cultivation, due to an increasing demand from intra and extra EU markets. Sugraone and Crimson are the most popular seedless varieties followed by Thompson, Centennial, and Sublime,” the USDA said.

Read the report: http://www.fas.usda.gov/data/italy-fresh-deciduous-fruit-annual-2014

 

 

 

 

 

 

 

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Chile’s table grape, pear and apple production bouncing back

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Mother Nature has smiled on Chile lately, with weather favouring increases in its apple, table grape and pear crops for next year, according to new forecasts from the USDA. Table grape and pear production are set to climb 14.2% and 8.6% respectively, it said in its report, “Chile: Fresh Deciduous Fruit Annual”.

 

Fresh table grapes

Stable weather conditions in all production areas augurs for a 14.2% increase to about 1.2 million tons of table grapes for Chile’s 2015 marketing season, starting in January, the USDA reported.

Table grape export volumes are expected to rise 14.6% on last year thanks to both the higher production and more consignment shipments of table grapes. The US is Chile’s main foreign market for table grapes, taking more than 40% of exports, with the EU the next biggest.

More than 36 varieties of table grapes are grown for export in Chile but Thompson Seedless and Flame Seedless account for the bulk of production.

 

Apples

Producers are forecasting a harvest of about 1.4 million tons – about three quarters of them red apples – for the coming production season (January–December 2015). Higher than usual temperatures in spring are not expected to reduce the quality or volume of the crop.

The USDA said Chilean apple growers have been increasing orchard density and replacing traditional varieties, such as Red Delicious and its variations, with new, more productive varieties, such as Fuji, Gala, Jonathan, Braeburn, Pink Lady and Galaxies.

“As a result we expect that output will expand under normal weather conditions in the coming years,” it said. The US continues to be Chile’s strongest export market for apples.

 

Fresh pears

The USDA said it was still too early for a good estimate of pear volumes but noted the weather had been “good for fruit fresh fruit in general.” The most recent winter provided enough chill hours for good budding and thus an 8.6% increase on last year’s production is expected for the 2015 marketing season, which would mean about 290,000 tons

Packam’s Triumph and Beurre Bosc comprise more than 60% of Chile’s exports, which are expected to increase by 9% on 2014, in line with the higher output. Nearly half Chile’s pear exports go to the EU, the USDA said.

 

    

Read the report.

 

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Difficult marketing season for Southern Hemisphere apple, pear sectors

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During the summer season the 28 European countries imported similar quantities apples and 10% less pears compared to last season, or 514.000 tons apples and 236.000 tons pears.

In apple imports there was  major shift in sourcing. Argentina  and South-African volumes were down with 15%, Chile and New Zealand shipped respectively 32% and 11% more.

Argentina exported in 2014 135.000 tons of which 37.000 tons went to the EU, some lower than forecasted due to smaller production and more fruit devoted for processing than expected. Pear exports decreased to 380.000 tons of which 87.000 tons went to the EU, due to smaller production, larger domestic consumption, and more fruit for processing. In addition, there were larger fruit stocks in the Northern Hemisphere. For 2015, forecasts production are at above normal levels as production rebounds following 2014 series of bad weather and to the natural lifecycle of plants, which allows fruit to blossom heavier one season and lighter the following season. 2015 is expected to be the “heavier” season.  A major increase in domestic consumption is expected for the three types of fruit as a result of the increase in production. In addition, higher volumes of apples and pears will be destined for domestic consumption due to the high inflation in dollar terms in Argentina. Exports are forecast to increase following the production rebound.

Apple production in Brazil decreased slightly in 2014 as a result of unfavorable weather conditions and a reduction in planted area. In 2013 Brazil exported 85.000 tons of apples, an 18 percent increase compared to the same period in 2012. Apple producers prioritized exports to recover from 2011. This situation will not happen in 2014, as the adverse weather conditions interfere in the volume and quality of the fruit.

Exports declined by 9 percent. The quality of the fruit has been damaged by the adverse weather conditions and the European markets taking 38.000 tons prefer the top quality fruit, without a damaged appearance.

Chilean exports of apples this year is likely to reach a total of about 770.000 tones, four percent less than last year. Abnormal weather during last spring, heavy frost for two consecutive days in mid-September of 2013, which affected all fresh fruit production in Chile, lowered pear output during this production season. Total production and exports are expected to be down over 10 percent when compared to the previous season. Pear exports reached 267.000 tons, all pear varieties are down in exports by over 10 percent. The only exception is the Packhams Triumph’s variety which expanded by 10 percent. Europe imported 184.000 tons apples and 44.000 tons pears.

New Zealand’s Apple and Pear growers have enjoyed a second year of good prices for their fruit in 2013/2014. Apple exports increased to 310.500 tons, of which 137.000 tons are imported in Europe. Sources indicate that because of strong offshore pricing early on in the shipping season every bit of fruit that could be found of saleable standard has been shipped. Now that prices have plummeted in Europe some growers who have had fruit shipped late into Europe (August to October 2014) may now wish they hadn’t bothered. It may be difficult for prices to maintain their current levels in 2014/2015 if exporters are to ship a forecasted export volume of 327.000 tons which will be five percent greater than 2013/2014 volume. This will be made all the more difficult with the anticipated large harvest of apples in the Northern Hemisphere.

It is likely there will be a resumption of the trend to less reliance on the UK and European markets in 2014/2015 by New Zealand apple exporters. From 2004/2005 to 2011/2012, consistently better returns in Asia have fueled a trend to replace European markets with ones in Asia. Relatively good pricing in Europe over the last 18 months has halted this trend, but those prices have begun to come under pressure in August through September 2014. The slightly later flowering time for the 2014/2015 crop won’t help exporters aiming to get fruit to Asia as early as possible but may give them a few extra weeks’ leeway to get a better supply and demand balance in Europe. The UK market is featured here to contrast a traditional destination for New Zealand apples with the emerging and developing markets of Asia and the Middle East. There is predictable market access for the fruit. It is price driven and takes the traditional varieties: Braeburn, and the traditional Royal Gala variety. Achieving higher prices has revolved around the Jazz and Pink Lady varieties supplanting the traditional varieties.

NZ pear exports in 2013/2014 have been surprisingly strong. Based on year-to-date shipment data, post has revised its export forecast for 2013/2014 to 5.350 tons. This represents a 19% increase compared to our previous forecast.

South African apple exports totals 459.000 tons based on updated Global Trade Atlas (GTA) data. With 117.000 tons the EU, which is the world’s second largest apple importer, is SA`s traditional market with UK being the biggest individual market. South Africa is a counter-seasonal producer, and is the Southern Hemisphere`s most convenient source for EU importers based on its proximity to the EU, and historical trading patterns, compared to other deciduous exporting countries like New Zealand, Chile, Brazil and Argentina. South Africa has been focusing on diversifying its export markets with expected growth to African markets such as Nigeria, Angola, Kenya, Zambia and Cameroon, and to Asia and the Middle East.

Production forecast for the 2014/2015 of the apple crop (1% increase to 910.000 tons), pears (3% increase to 390.000 tons) are good based on normal growing conditions following hail and rainfall damage at the end of December 2013. Post forecasts that the increase in apple, pear production, and the weak Rand/US$ exchange rate, will also result in increases in apple exports (3% increase to 390.000 tons), pears exports (2% to 225.000 tons) in the 2014/15 marketing year.

LH

Click here to see map of EU-28 apple suppliers

 

 

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US to spend $173.2 million promoting exports of its farm products

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The US Government has announced funds of more than $173 million to be used next year to increase exports of American agricultural products.

Washington apple growers, Florida citrus producers, California’s table grape sector and the Northwest pear industry are among those set to benefit from multi-million dollar allocations.

 

Cranberry, cling peach, cherry, sweet potato, tomato, and organic produce organisations are also among the recipients.

 

Through the US Department of Agriculture (USDA) Market Access Program (MAP), the Foreign Agricultural Service (FAS) will provide $173.2 million (up from nearly $172 million last year) to 62 nonprofit organisations and cooperatives. Participants contribute an average 214% match for generic marketing and promotion activities and a dollar-for-dollar match for promotion of branded products by small businesses and cooperatives.

 

MAP focuses on consumer promotion, including brand promotion for small companies and cooperatives, and is used extensively by organisations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities.

 

Meanwhile, under the Foreign Market Development (FMD) Program (also known as the Cooperator Program), FAS will allocate $26.7 million (up from $24.6 million last year) to 22 trade organizations that represent U.S. agricultural producers.

 

The FMD program focuses on trade servicing and capacity building by helping to create, expand and maintain long-term export markets for US agricultural products.

 

An independent study released in 2010 found that trade promotion programs like MAP and FMD provide $35 in economic benefits for every dollar spent by government and industry on market development, the USDA said in a press release.

 

“The past six years represent the strongest period for U.S. agricultural exports in the history of the United States. Farm exports in fiscal year 2014 reached a record $152.5 billion and supported 1 million jobs in the United States,” it also said.

Here is our summary of this year and last year’s funding most relevant to the fresh fruit and vegetable sector:

 

USDA Market Access Program (MAP) funding: Participant FY 2015 Allocation FY 2014 Allocation
Food Export Association of Midwest $10,272,114 $9,637,643
Food Export USA Northeast $8,896,086 $8,138,985
Western US Agricultural Trade Association $7,705,129 $8,097,508
Southern United States Trade Association $7,152,346 $5,874,329
Washington Apple Commission $5,179,019 $4,930,752
National Potato Promotion Board $4,998,822 $3,647,427
Florida Department of Citrus $4,383,830 $3,885,364
California Table Grape Commission $3,424,871 $3,093,070
Pear Bureau Northwest $3,069,707 $2,926,873
California Prune Board $3,023,063 $2,668,406
Raisin Administrative Committee $3,018,117 $827,922
Sunkist Growers, Inc. $2,660,274 $2,372,577
National Association of State Departments of Agriculture $2,329,520 $3,533,072
Cranberry Marketing Committee* $1,791,836 $1,561,170
Washington State Fruit Commission $1,685,709 $1,361,810
U.S. Apple Export Council $998,650 $712,727
Welch Foods, Inc. $932,734 $834,411
California Agricultural Export Council $861,378 $1,228,525
Organic Trade Association $784,902 $746,912
Intertribal Agriculture Council $728,492 $642,528
California Cling Peach Growers Advisory Board $500,182 $444,892
California Pear Advisory Board $468,842 $442,081
California Cherry Marketing and Research Board $443,722 $519,189
New York Wine and Grape Foundation $422,674 $484,886
California Grape and Tree Fruit League $413,125 $420,800
Synergistic Hawaii Agriculture Council $379,415 $388,412
Cherry Marketing Institute $290,042 $204,115
American Sweet Potato Marketing Institute $200,000 $200,000
Florida Tomato Committee $3,578  
National Watermelon Promotion Board   $290,367
*Cranberry Marketing Committee also received the following in Foreign Market Development Funds (FMD) $182,665 $153,754

 

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Could BroccoLeaf be the new kale?

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A new ‘supergreen’ – organic BroccoLeaf – is now in stores across America.

Short for broccoli leaves, this non-GMO product is being promoted as boasting the vitamin, mineral and health benefits of broccoli but with a lighter, sweeter taste. It is sold under the Foxy brand, under which California-based Nunes Co. markets its products.

“Everyone in our industry’s been trying to find the next kale, and BroccoLeaf has been staring all of us in the face for decades,” said Tom Nunes, Foxy’s VP of operations.

“We are big advocates of full produce consumption, which is why we started experimenting with broccoli leaves. But the health findings and taste even took us by surprise,” he said.

As part of the launch, Foxy is sharing BroccoLeaf recipes at foxy.com and is holding a social media campaign involving people sharing their own new BroccoLeaf creations.