Business
California’s strawberry fields may not be forever. Could robots help?
In a strawberry area surrounded by strawberry fields on the outskirts of Santa Maria, a staff of robots have been selecting berries all summer season.
Every robotic, made by a Colorado firm known as Tortuga AgTech, trundles between the elevated beds on rugged wheels, then stops in entrance of a plant. An articulated arm maneuvers its sensor array among the many leaves; machine imaginative and prescient software program scours the sensor knowledge in the hunt for ripe berries.
Most California strawberry vegetation sprout consistently over the course of the season — little inexperienced berries sitting alongside fats pink ones, nestled among the many leaves. If an unripe berry is in the way in which, the robotic repositions for a greater angle. A snipper-grabber mounted in the course of the sensors jabs in to chop the berry’s stem, then gingerly locations it in a ready plastic clamshell in a compartment on the robotic’s base. The movement calls to thoughts a chicken searching, peering and pecking for bugs.
Since hitting this area in Might, the robots are on their approach to selecting almost as many berries as human pickers, and with 95% accuracy, in accordance with Tortuga. The grower paying for the work backs up that declare.
Tortuga’s pitch to growers is a subscription mannequin that fees them a flat value per robot-picked field of strawberries at a fee similar to human employee wages. Not like a human, the Tortuga bot doesn’t want breaks, can’t get sick, is all the time able to work, and might decide all day and into the evening. In the intervening time, human crews nonetheless are available in after the robots for a periodic cleanup decide.
However the staff behind Tortuga — and a few longtime consultants in California’s $2-billion strawberry business — see agricultural robots as extra than simply labor-saving gadgets that may minimize prices and increase margins for growers. They see them as the one method that an business sitting on the intersecting fault traces of local weather change, water rights, labor struggles, land use and chemical regulation can adapt and survive.
“My entire life is now devoted to attempting to make our human methods extra resilient,” mentioned Eric Adamson, Tortuga’s co-founder and chief government.
Within the quick time period, he believes the corporate is proving that its robotic is cost-effective and meets the wants of present farms. With that proof in hand, the plan is to go to buyers for a brand new infusion of cash — the corporate has already raised $28 million since its founding in 2016 — and “construct hundreds of robots.”
In the long run, he believes {that a} robotic labor provide is essential to a future wherein the strawberry business is not synonymous with the California coast, the place 90% of the strawberries within the U.S. are grown.
Tortuga’s robots are designed to select strawberries from vegetation grown on hydroponic tabletops, not the bottom strawberries that make up virtually the whole thing of California’s crop. The Santa Maria location is a part of a three way partnership known as New Wave Berry, fashioned by Oppy, a significant fruit firm based mostly in Vancouver, Canada; Farmers Gate, an funding agency; and Pink Canine Administration. The enterprise has arrange 50 of the 700 acres Pink Canine manages within the space with tabletops as a pilot program, and is advertising and marketing the outcomes below the Ocean Spray model with “Glad Berry hydroponic strawberries” on the label.
Typically protected below a plastic tunnel, tabletop methods have develop into in style within the Netherlands and the U.Okay., the place Tortuga first began rolling out its robots into the sector. The usage of a non-soil substrate — shredded coconut husk, known as coir, within the case of the Santa Maria farm — and the safety of the tunnels give growers extra management, and the raised tabletop beds maintain floor pests away and make harvesting much less painful for staff.
The upper value of the tabletops has made them a rarity in California’s fields, which cowl greater than 30,000 acres among the many three strawberry hubs of Watsonville, Santa Maria and Oxnard. Strawberries are already probably the most capital-intensive crops grown within the state, and with comparatively low-cost labor and very best strawberry climate for a lot of the yr, California growers haven’t felt the identical pressures as their European counterparts.
However a posh mixture of forces is coming to bear on the business, making each tabletop farms and robotic harvesters extra viable in California. An important shift: a altering regulatory regime for the chemical compounds that strawberry growers depend on.
Strawberry vegetation are prey to a cluster of viruses, fungi and nematodes that unfold to the dust, the place they sit ready to contaminate subsequent yr’s berries. With out fumigants to bomb the hostile organisms out of the soil, the pathogen load builds up over time, and subsequent crops come out withered and blighted.
Fumigation, nonetheless, is changing into more and more regulated. Methyl bromide, as soon as the business favourite, was banned greater than a decade in the past for its impact on the ozone layer, and has additionally been recognized as a neurotoxin and respiratory irritant. The usage of chloropicrin, a typical fumigant first used as a chemical weapon, is more and more restricted by buffer zones, which require growers to depart a sure distance between handled fields and roads, homes and our bodies of water. And 1,3-dichloropropene, generally referred to by the model title Telone, is a identified carcinogen and topic to strict annual utilization limits in California.
On the similar time their use is being scrutinized, the fumigants seem like shedding effectiveness in combating each previous and new threats to strawberries which have emerged lately, as UC Santa Cruz professor Julie Guthman outlined in “Wilted,” her 2019 ebook on fumigants and the California strawberry business.
“There’s a basic sense that fumigants aren’t lengthy for this world,” Guthman mentioned. “They’re very previous, nasty chemical compounds.”
The shift within the chemical regime has made tabletop farms extra interesting, although they value extra money to put in. As an alternative of attempting to fumigate away the risks lurking within the soil every year, growers can throw out final yr’s substrate and put in a brand new batch.
The higher ergonomics of the tabletop system additionally make it simpler to recruit skilled harvest laborers who would possibly in any other case decide blackberries or raspberries, that are grown in tall bushes.
On common, California growers pay greater than $35,000 per acre per yr in wages to the employees who decide their strawberries. That quantities to 40% of the overall prices per acre for a strawberry operation, in accordance with the latest 2021 value examine from the College of California, and people numbers have most likely risen as new state wage and time beyond regulation legal guidelines went into impact in 2022.
California growers have had a more durable time attracting harvest labor lately, and inflation and a decent labor market have spurred staff throughout the state to demand larger wages. Some growers depend on staff introduced in below the H-2A visitor employee program, which ensures a secure workforce however drives prices larger, because the circumstances of the visa require employers to supply housing, meals and a minimal wage of $17.51 for 2022. With wages making up a lot of a grower’s outlay, the attract of a robotic’s elevated reliability and potential to develop into extra cost-efficient over time is difficult to withstand.
The tabletop system permits Tortuga’s strawberry bots to ply their commerce by making berries simpler to pluck with robotic arms and defending the robots from direct publicity to the weather. “We wish to speed up the adoption of tabletop and controlled-environment rising, and assist these farms succeed,” Adamson mentioned. “Robots assist these farms to be extra economically efficient, and liberate extra capital to place within the setup.”
Ryan Harrison, vice chairman and basic supervisor at Pink Canine, the corporate managing the Santa Maria farm, sees tabletops and robotic harvesting as key elements of an much more dramatic shift for the business on the horizon, which might knock California off its spot because the strawberry king.
In coming a long time, he predicted, the state’s three main rising areas will stop to be viable for out of doors cultivation as common temperatures rise, droughts lengthen, water use turns into extra restricted and improvement drives land costs up and extends buffer zones additional into fields.
Of the three main strawberry areas, he predicted that Santa Maria is prone to maintain out longest, with a reasonable local weather, secure water rights and a higher distance from main city facilities. “Santa Maria will probably be one of many final rising areas in California at the start most likely goes glasshouse or indoor in locations like Detroit or Chicago or New Jersey,” Harrison mentioned. “Wanting into the crystal ball, that’s going to be 20, 30 years from now.”
However California’s present dominance rests on a workforce of tens of hundreds of expert pickers. A shift to rising strawberries indoors or below tunnels on the outskirts of main U.S. metro areas would require a brand new workforce to match.
That’s the place the robots come into play. “When you develop a system the place you may develop anyplace, you don’t care in regards to the soil, you don’t care in regards to the local weather a lot, and it really works in different locales in very related methods with the identical robots, you are able to do all this cool stuff,” mentioned Tim Brackbill, Tortuga’s different co-founder and chief expertise officer.
“Sustainability is a pleasant phrase, but it surely’s changing into extra of an crucial,” Adamson mentioned. “Now we have to have the ability to develop meals in a extra resilient and extra adaptive method, as a result of the fires aren’t gonna cease within the American West, the water’s not going to rapidly come again.”
Outdoors the crystal ball, nonetheless, there are nonetheless billions of strawberries rising in California and various hurdles to beat earlier than a robotic, hydroponic, distributed strawberry system can take root.
Mark Bolda, the director of the College of California’s Santa Cruz County Cooperative Extension and a berry specialist, agrees that California strawberries face various challenges — however is skeptical that the economics for tabletop farms picked by robots add up, or that the state’s business goes anyplace.
Tabletop adoption to date has been restricted, Bolda mentioned, although he has seen experimentation. With the brand new fumigant regime, he mentioned, “it’s getting iffy and we’re beginning to see much more illness, so bigger firms try to develop their competence in tabletops, however not at scale.”
When he co-authored UC’s newest value examine on strawberries, he checked out a hydroponic system rising in plastic-lined furrows within the floor, somewhat than the costlier tabletops, and located that the economics have been “a catastrophe.” In a mean area, the prices added as much as $45,000 per acre every year, excluding harvest labor. Within the hydroponic system, those self same prices greater than doubled to over $100,000.
Harrison at Pink Canine declined to share detailed value info however mentioned that whereas the price per acre of their tabletop develop is larger than that of a conventional area, the upper yields from the tabletops make the economics work. “We produce a lot extra,” Harrison mentioned — as much as 50% extra strawberries per acre — “that the price per unit produced is definitely much less.”
“I’ve had some growers inform me that the prices are rather less” than the hydroponic setup he examined within the examine, Bolda mentioned, and famous that youthful growers, a minority in an business the place he estimates the typical age to be “round 60,” are extra smitten by attempting new applied sciences. “I’ve been lectured by a number of the youthful set that I really want to up my sport” and get on board with tabletop rising, Bolda mentioned, “however the funds to me are disturbing.”
He admitted that the grow-anywhere imaginative and prescient of a robot-powered operation was “actually intriguing,” however doubts that the California strawberry system is sort of so transportable. “If something, I might see a mixture of tabletops and soil” growing, Bolda mentioned, however he believes that common dust fields on the California coast will persist, because of the local weather and business focus, as extra nuanced and focused soil pest administration replaces the previous fumigation system.
Within the Santa Maria check area, Tortuga’s robotic fleet has already proven indicators of enchancment. Harrison mentioned the corporate plans to increase its industrial trial at Pink Canine into subsequent yr and develop its acreage.
One among Tortuga’s largest bottlenecks now could be, paradoxically, human labor. “If a robotic has a problem, it would take us 4 hours to repair it, however half of that point is simply ready for somebody to get to it,” Adamson mentioned. A possible answer: retraining harvest staff as robotic operators and mechanics. One picker in Santa Maria is already receiving such coaching.
Whereas the people be taught to work on robots, the robots are studying to work extra like people. Adamson mentioned {that a} midsummer software program replace doubled their decide velocity. “We’re principally going as quick as a gradual human, however high quality is de facto excessive, and we predict we are able to get sooner and sooner,” he mentioned. Tortuga’s founders count on their robots will match human output within the close to future, by dint of working longer hours at a slower fee, and hit human decide velocity “inside a yr or two.”
“I do suppose we’re gonna get to fairly good human velocity, although I do suppose one of the best people are going to have the ability to outperform robots at these judgment-driven duties,” Adamson added. “However that’s OK. It doesn’t must be higher than each human, it simply needs to be higher than sufficient individuals.”
Business
Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns
The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.
The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.
The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.
Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.
“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.
Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.
The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.
The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.
Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”
Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.
This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.
Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.
Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.
Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.
“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.
Business
Craft supplies retailer Joann declares bankruptcy for the second time in a year
The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.
The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.
“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”
Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.
According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.
Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.
“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”
Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.
Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.
Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.
High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.
If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.
Business
U.S. Sues Southwest Airlines Over Chronic Delays
The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.
In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.
“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”
Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.
In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.
“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.
Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.
The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.
“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.
The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.
The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.
This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.
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