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SUPPLY SCAN NE WS FR OM A CR OSS T HE F OO D SU PP LY CH AI N accompanied by a phytosanitary certificate issued by the national plant protection organization of Uruguay with an additional declaration confirming that the fruit is free from all pests of quarantine concern and has been produced in accordance with the systems approach, according to international law firm Sandler, Travis & Rosenberg. Uruguay is one of the world's top 25 exporters of fresh citrus fruit. Online grocery sales still only account for approximately one percent of the $631 billion U.S. grocery market, but reports that companies like Amazon, Walmart, REFRIGERATED SPACE +84,535 Sq. Ft. Refrigerated Warehouse/Distribution Space Available in NJ • • • • • • • Close to Port Newark/Elizabeth Centrally located with easy access to all major highways Trailer parking available Fully racked 35 degrees Solar utilized for reduced electrical rates Floor drains For further details, please contact: Scott Belfer | +1 732 509 8930 | scott.belfer@cbre.com Nicholas Nitti | +1 201 712 5827 | nicholas.nitti@cbre.com Visit www.cbre.com/145TalmadgeRd 10 AUGUST 2013 • FOOD LOGISTICS Strong Demand for Organics Puts the Squeeze on Farmers T he good news is that demand for organic foods is growing, the bad news is that farmers in the U.S. are having to source organic animal feed from overseas markets because domestic production of organic soybeans and corn are falling short, according to a report in The Wall Street Journal. China and India, in particular, are the top sources for organic soybeans and imports last year doubled and may surpass $100 million this year. Meanwhile, itÕs not likely that domestic production of organic soybeans and corn will pick up anytime soon. According to the CEO of Organic Valley, the largest cooperative of organic farmers in the U.S., fewer acres are being farmed organically because the requirements are stiff. For instance, organic farmers are required to not use processed fertilizers and chemical weed killers for three years before their crops can be certified as organic. However, this is too long a wait for many farmers, especially with the high prices being paid for conventionally grown crops coupled with the high cost of farmland. Another worry is consumer backlash against imports of organic animal feed from China and IndiaÑtwo countries that have had more than their share of food safety breaches. © Creatas/Thinkstock Delivery Fees a Drag for Online Grocers Peapod and Good Eggs are expanding their grocery delivery services into new test markets has raised awareness of the trend. While most of the industry has been hesitant to expand into the online retail market due to economic factors like the heavy upfront investment costs, the logistical challenges with delivering perishable items, and the inherently low margins with selling food, global ratings agency Fitch Ratings discovered that consumers' resistance to delivery fees is playing a role in holding back growth in the sector. With fees that range from $6 to $10 per order, it turns out most consumers are deciding the convenience of having their groceries delivered right to their door is not worth the added cost. Fitch Ratings predicts modest growth in the online grocery market—just 2 to 3 percent over the next 10 years—and cites this slow pace of growth as a major factor that will limit the number of new entrants into the online market, while slowing the pace at which existing companies in the sector will expand. Halifax "Port Days 2013" Focuses on the Food Chain Canada's Port of Halifax and Canadian National (CN) Railway are focusing on the food value chain, growth markets and cold chain strategies during the Port Days 2013 event set for September 19. Attendees can meet and network with industry leaders from the Port of Halifax, ZIM Integrated Shipping Services, Maple Leaf Foods, Loblaws and CN Railway. Claude Mongeau, president and CEO of CN Railway is scheduled to give a presentation from 11:45 AM - 2:00 PM Eastern. For more information, including registration for online remote access to Port Days 2013, visit www.portofhalifax.ca. www.foodlogistics.com