Borderlands provides a weekly update on the cross-border trade and trucking between Mexico and the United States. This week, vertical farms in Texas were designed to disrupt the supply chain for fresh produce; Mexico imposed a 50% tariff against white corn exported from the U.S.
Texas vertical farms disrupting fresh produce supply chain
Eden Green Technology is a new vertical indoor farming technology that aims to revolutionize fresh produce supply chains.
Cleburne is the home of this farming technology company, located just outside of Dallas-Fort Worth. Eden Green Technology runs a vertical greenhouse in a Walmart distribution center, which supplies over 400 stores across Texas and Oklahoma.
We combine the best of two worlds when it comes to controlled environment agriculture (CEA). We combine the density and light of a vertical farming system, but in a greenhouse. 80% to 90% our plants’ requirements in terms of lighting come from the sun, Eddy Badrina CEO of Eden Green Technology told FreightWaves.
Badrina stated that 90% of the lettuce consumed by East Coast consumers comes from Yuma, Arizona and the Salinas Valleys in California.
Eden Green has the capacity to grow 2 million pounds lettuce each year. The company grows a variety of fresh herbs and produce, including mint, cilantro, peas and tomatoes.
Robinson Fresh is a national provider of fresh produce, supply chain management services and Eden Green’s products. Eden Green supplies romaine lettuce and butterhead to some of the biggest retailers in the U.S. under the Robinson Fresh label.
Badrina explained that greenhouse farming is very efficient and can be provided at a very affordable price to the consumer. From a distribution perspective, one aspect of our affordability comes from the fact that our greenhouses can be placed right next to distribution centres, virtually eliminating supply chain costs.
Eden Green Technology has two vertical greenhouses that total more than 100,000 sq. feet of growing space. The company will also be building two more facilities by the end the year to double their capacity.
Eden Green Technology isn’t the only CEA firm making a big move in Texas. Revol Greens built the largest CEA lettuce plant in the world. The facility is in Temple, Texas about 70 miles north-east of Austin.
According to a press release, the Temple facility will significantly increase Revol Green’s distribution throughout Texas and in the Central and Southern United States.
Michael Wainscott said, “We’re on a mission of providing fresh, affordable lettuce for consumers across the nation.” The addition of the Temple plant opens up new markets and allows for a further reduction in food miles within the U.S. Salad Market.
Revol Greens is based in Minnesota and has greenhouses in Owatonna (Minnesota), Athens (Georgia), Tehachapi (California) and other locations. The company has distribution agreements with H-E-B and Sprouts as well as Costco, Walmart Kroger Target, United Supermarket, Amazon Fresh, Walmart, Kroger.
FreightWaves’ request for a comment by Revol Greens officials was not responded to.
Eden Green, according to Badrina, can produce more quickly and efficiently than traditional farms. The company can produce a lettuce head from seed in 24 to 28 working days.
In Salinas Valley it could take up to 90 days to grow one head of lettuce. Badrina explained that it would require a lot pesticides as well as herbicides and fungicides. It also required 30 gallons per head of lettuce. “In comparison, we will go from seed-to-harvest in 28 days and are actually reducing that to 24 right now. It will go literally from seed to packaging within 1,500 feet, and from there to cold storage in just 20 minutes. All this while using only two-and-a-half gallons as opposed to thirty gallons.
Eden Green was founded by South African brothers Eugene & Jacques van Buuren. In 2017, the van Buurens were living in Dallas when they started the company.
Badrina stated that the van Buuren Brothers chose Cleburne as the location because it is close to Walmart’s distribution center.
Badrino explained that they chose the location because they believed in their mind that a retailer such as Walmart would be someone they wanted to target. As we expand our network, we want to be close to or adjacent to distribution centres. We need to have access to trucking routes, and we also need to maximize the use of land. Cleburne was our first choice and we plan to be near distribution centers in the future.
Mexico announces a 50% tariff on US white corn exports
On June 24, Mexico, amid a growing dispute over trade, began imposing a tariff of 50% on all white corn entering the country via the United States.
Tariffs are in effect until the end the year. They are part of a trade dispute between Mexico and the U.S. regarding genetically modified corn (GM).
Mexico wants to limit imports of genetically-modified corn, aiming at eliminating the use of glyphosate herbicide and GM corn within the country.
U.S. trade representative Katherine Tai submitted a request for consultations with Mexico on the corn ban using the United States, Mexico and Canada Agreement on June 2. Consultations will last for 75 days. In the event that no agreement is reached, officials may call in a third party dispute panel.
Quality Custom Distribution opens new facility in Texas
Quality Customer Distribution, based in Frisco, Texas announced that it will open a new distribution centre in San Antonio.
The distribution center in San Antonio is expected to open in August. It will cover 116,000 square foot and serve more than 250 stores in Texas. The distribution center will open in August
According to a press release, QCD’s expansion will result in 25 distribution centers located across the country. These centers can make up to 35,000 deliveries per week to four quick service restaurant brands.
QCD is part of Golden State Foods in Irvine, California, which is one of the world’s largest food suppliers.
CBP officers seize nearly 9000 fentanyl tablets in California
U.S. Customs and Border Protection agents at the Otay Mea port of entry near San Diego intercepted recently 189 pounds worth of fentanyl from a shipment that crossed into the U.S.
Last Monday, a 45-year old Mexican driver of a Ford cargo van applied to enter the U.S. via the Otay Mesa cargo facility. The driver showed a shipping manifest for a pair of porcelain sinks.
CBP officers found 12 packages of 858,000 fentanyl tablets, worth an estimated $2.6 million.
Homeland Security Investigations was notified of the case.
Watch: How to deal with the challenges associated with delivering chilled produce.
Click here to read more FreightWaves by Noi Mahoney.
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The article FreightWaves first appeared on Borderlands. Texas vertical farms disrupting fresh produce supply chains.