Naturipe Farms, LLC FMI-GMA Conference January 25, 2012 Rick Burden Director of Transportation and Logistics.

Naturipe Farms, LLCFMI-GMA Conference

January 25, 2012Rick Burden

Director of Transportation and Logistics

Naturipe Farms, LLC

• Established in 2000 as a sales and marketing company for four fresh berry growers in partnership offering global distribution.– Michigan Berry Growers (MBG): Blueberries– Naturipe Berry Growers (NBG): Strawberries– Hortifrut SA: All berry types– Munger Farms: Blueberries

Naturipe Farms Logistics

• 15,000 refrigerated loads per year from six distribution centers in the USA.

• 600-700 ocean containers of fresh blueberries imported from Chile per year. December - April

• Air import program from Central America, Argentina and Uruguay. September -December

• Air export program to Asia and Europe

Surface Transportation Challenges for Berries

• Maintaining constant temperatures of 33 to 35 degrees Fahrenheit from origin to destination.

• Contracting with carriers who supply consistent well maintained quality equipment that has the ability to hold temperatures.

• Team trucks for transit longer than two days.• Reefer setting on continuous rather than

cycle sentry.

NF Transportation Action Plan; 2008 to CurrentNorth America Ground Transport

• Decreased the carrier vendor pool for full truck loads to three asset based and three broker based carriers from approximately 15 broker based carriers.

• Today: 80% of full truck loads ride on three asset based carriers.–Consistent, well maintained quality

equipment with the ability to maintain constant temperature during transit.

Importance of Good Equipment

• 2011, Naturipe performed a test comparing asset based equipment and broker based. This was due to hot arrivals into the Toronto Distribution Center.– Loads were hired from Oxnard, CA to Toronto,

Canada during August with multiple temperature recorders strategically placed on the loads.

– Asset based loads had a 1-1.5 degree F variance between supply and return air while transiting the desert states (NV).

– Broker based loads had 2-15 degree F variance.

Tracking During TransitGround

• GPS Technology that tracks temperature to the pallet level on each individual load. Ability for shippers to track temperature real time.– For carriers who do not offer Qualcom or similar type of

tracking.– Benefits both the shipper and carrier with claim reduction.

• Cost is competitive with high end temperature recorders. – Carriers are subsidizing cost difference to

shippers.

• Main unit is placed in the cab with sensors placed on pallets within the load.

Air Transport

• Most challenging method of transport in maintaining cold chain from origin to destination.

• IATA Regulations require any product to withstand 72 hours of transit before a claim can be initiated.

• Shipper must prove “willful negligence” by the carrier.

• On a normal air shipment traveling non-stop, the cold chain is broken a minimum of four times from delivery to the carrier until customer pick up at destination.

Origin AirportAir Terminal to tarmac to aircraft

Arrival at destination. Aircraft to tarmac to air terminal

No requirement for cold storage. Space available concept

Pick up by consignee

In flight transit

Protecting Air Shipments

• Require non-stop flights from origin to destination if at all possible. Direct flights may have multiple stops.

• Assure pulp temperatures are optimum for the product upon delivery to the carrier.

• Insulate as much as possible. • New Equipment Concept: Cold Cart• Hire a good freight forwarder that

specializes in transporting PERISHABLES by air.

Cold CartTesting in Atlanta/LAX