[#294] Supply Chain in Numbers - July 14, 2025

72% of US fresh tomatoes are imported, Beef cattle heads at 87m, FBA box lengths increased to 36'', UPS plans first buyout of 117-year history, Levi's closing a DC in KY impacting 350 workers

Welcome to “Supply Chain in Numbers.” This newsletter tracks significant numbers from the supply chain world. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.

72% of US fresh tomatoes are imported

Consumers may soon be paying more for fresh tomatoes as a decades-long deal with Mexico expires in less than a week, absent a last-minute deal or extension. US tomato importer NatureSweet Ltd. told its customers last week that it would have to raise prices nearly 10% if the agreement ends. The US Commerce Department announced in April it was terminating a long-running agreement with the country’s southern neighbor over tomato prices on July 14, which will unleash a 17% levy on the fruits imported from Mexico. The end of the agreement would deal a blow to US companies that grow tomatoes in Mexico and import them into the US, where they dominate the market. Around 72% of US fresh tomatoes were imported in 2024, and about 90% of those came from Mexico. [Bloomberg]

86.7 million beef cattle heads

Years of dry weather and the threat of a parasitic fly have reduced the U.S. beef cattle herd to its lowest since the Truman administration, driving prices to record highs as strong demand persists. Department of Agriculture data show the total head of beef cattle in the U.S. at 86.7 million, the smallest number since 1951. The heartland’s grazing land has been arid, leading to nutritional deficits and the growth of potentially toxic, drought-tolerant weeds. Lethal infections from the New World screwworm are moving north through Mexico, a leading cattle exporter to the U.S. No cases have been reported in the U.S.. Still, cattle imports from Mexico were suspended in May as a precaution. Consumer appetite for beef hasn’t waned since the pandemic. The retail price for ground beef has now risen to $6.67 a pound. [WSJ]

Box length of 36 inches for FBA

Amazon has increased the maximum box length allowed for sellers using its fulfillment services from 25 inches to 36 inches. The change, which took effect on June 20, applies to Fulfillment by Amazon orders in the U.S. Other dimensional limits, including width, height, and weight, remain unchanged. Amazon’s update gives sellers the chance to optimize their packaging designs and fit more product units in each box. Fulfillment and delivery providers often enforce additional parameters and charge shippers more to move oversized packages, as those types of shipments are generally more difficult to move efficiently through a carrier’s network. FedEx and UPS have upped their fees to deliver larger products over the past year, including those requiring additional handling due to their dimensions. [SC Dive]

First buyout in 117-year history

United Parcel Service is offering buyouts to delivery drivers for the first time in its 117-year history. The company is seeking cost savings because of stagnant parcel volumes, rising labor costs, and a protracted slump in the company’s stock price. UPS employs around 330,000 full- and part-time delivery drivers, clerks, and package handlers represented by the International Brotherhood of Teamsters. In 2023, UPS offered buyouts to its pilots to reduce headcount and costs; nearly 200 pilots took the offer. UPS drivers are among the highest-paid delivery drivers in the U.S. The average full-time driver will earn around $170,000 annually, including benefits, by the end of a five-year contract that UPS signed with the Teamsters in 2023. [WSJ]

DC closure impacting 350 workers

Levi Strauss & Co. is permanently closing a distribution center in Hebron, Kentucky, impacting nearly 350 workers. Levi’s changed its distribution strategy last year from an owned and operated model to a mix of owned and third-party operated distribution centers. Those centers are used to warehouse and ship products to the brand’s wholesale customers, stores, and e-commerce shoppers. The company owned the distribution center in Hebron. Last June, Levi’s agreed with a third-party logistics provider to replace its owned Canton, Mississippi, distribution center with a new one. During fiscal 2024, Levi’s entered into a lease agreement with a third-party logistics provider to operate a distribution center in Ohio. [Retail Dive]