We have all HEARD OF "Black Gold" but what about "Red Gold"? Many of us in the produce business probably feel as if we are dealing in "precious metals" as we look at what tomato prices have done in the last few weeks. At current prices this glossy red pulpy fruit should be pronounced tomaato (english pronunciation)!!

The series of hurricanes that devastated the southeast, in particular Florida, took their toll on the planted tomato crops. The rains in California and in tomato growing areas of Mexico added insult to injury to the limited volume of available tomatoes. Equally distressing, quality and correct sizing of tomatoes have suffered severely. It is really something to note when we are forced to pay record high or near record high prices for products due to short supplies. Especially since under normal conditions they would be culled or sold at a huge discount due to poor quality.

This has been the case with the tomato crop. The latest news indicates that supplies are starting to meet demand due in part to the decreased demand created by higher prices. There is a feeling in my bones that prices will start dropping any time shortly after the Thanksgiving holiday. My experience has been that one extreme often follows another. If that adage holds and I am correct, look for a glut of tomatoes and lower prices on the horizon! Only time will tell but surely prices should fall back to more historical price levels.

If you should have any questions or need more information on tomatoes, please call me at (208) 522-4516.

Dave Patterson

RAIL

Union Pacific's fuel surcharge will be 9% for the month of December. This surcharge is based on the average DOE Diesel Fuel Price from October, which was $2.134. For details, please see Union Pacific's website at:
http://www.uprr.com/customers/surcharge/

TRUCK

The truck shortage in the West will continue through the month of December into late January. The imbalance in supply and demand for trucks has created an environment where carriers are demanding excessive freight rates. To combat this problem, we are encouraging our customers to look at the cost savings of using rail.

The increased demand for rail equipment has tightened up rail car supply; however, Kingston's transportation department has been able to procure rail cars when given adequate notice.

What can you do to reduce freight costs if you don't have rail service? Try the Union Pacific One-Plus program. Union Pacific has a subsidiary, Union Pacific Distribution Services (UPDS), who can provide your company with seamless door-to-door movement of your product. Your shipment will travel via rail from the shipper to a UPDS cross-dock facility. Upon arrival, the rail car is reloaded on trucks. Delivery is then made via truck to your facility. Customer pick-up at the facility is also available, at a reduced cost to you. One rail car is the equivalent of three truck loads, and the rates are competitive. UPDS has locations in TX, MO, IL, OH, PA, NY, MD, NC, GA, and FL. They can service several cities within these states. Please see your customer service representative for additional information regarding rates and transit times if you are interested in using this alternative, or need more information.

For information please contact Chris Taylor.

If you've phoned into our office this year and heard a friendly voice say, "Kingston and Associates; how may I help you?" then you already know Jennifer Hoffman! Jennifer's been busy keeping our phones straight and our callers happy since joining Kingston in January 2004.

Before joining Kingston, Jennifer was an assistant manager for a local apartment complex in Idaho Falls. She has many years of customer and phone support working for both Gumball Gourmet and Qwest.

Jennifer is also a newlywed. She and Jim Hoffman were married on September 18 and spent their honeymoon in Mexico. Combined they have six children, Jessica, age 19; Desaree, age 17; Jacqlyn, age 17; Monica, age 16; Janae, age 14; and Skyler, age 8. Jennifer and Jim recently learned there will be one more joining the Hoffman clan; they'll become grandparents over the summer!

Born in upstate New York and raised in Virginia and Maryland, Jennifer was an east coaster until moving to Idaho Falls in 2000.

Jennifer and Jim recently purchased a home and have been busy renovating the house. When Jennifer is not looking after her children or working on her house, she finds time to relax by reading. She and Jim especially enjoy traveling together and spending time with their friends. Next summer, Jennifer will be taking on a new hobby. She plans to learn how to camp so she can enjoy our beautiful Western outdoors! Good Luck, Jim!!

Adams Brothers Produce is a longtime fixture in Birmingham, Alabama since their founding by E.C. Adams in 1903. Their goal is to combine "the personal touch of a family business with the sophistication of a large corporation."

Their business is 80% foodservice, serving large chain accounts such as Outback, Darden, Brinker, Applebee's, Logan's, and Compass Group. Outback is their largest foodservice customer, and their largest overall customer is a local grocery store chain.

Adams Brothers has 253 employees. The five principals (two Adamses, two McCrays, and one Grinstead) have a combined 87 years with the firm. With 74 trucks, they have a large delivery region in the Southeast. In addition to a 400 mile delivery radius around Birmingham, they operate satellite distribution centers in Jackson, MS, Panama City, FL, and Crestview, FL, each in turn with a 100 mile distribution radius.

In addition to produce, Adams Brothers handles dairy as well as various specialty items for their broad base of users. With an emphasis on customer service and satisfaction, handling single-user and/or specialty produce items is a tough, but an energizing challenge for their team. Focus on "loving their customers on a daily basis" is generating strong growth, with sales up over 60% from one year ago. You have to "love" these sales increases!!

Kingston has been privileged to provide product to Adams Brothers for five years. We are proud to be part of the success of a dynamic, customer-focused distributor!

Don't forget about our first Golf Invitational on December 10th for our valued business partners. This event will be held at The Duke at Rancho El Dorado golf course outside Phoenix, Arizona. We have a few open spaces left and would really enjoy your company and participation. If you need more information, please view our November's E-Letter.

If you see something you would like more information on, or if you have any ideas for next month's issue, please email abarnes@kingstoncorp.com.

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