United Fresh calls for federal assistance for COVID-19 losses
The United Fresh Produce Association is requesting urgent action by Congress to help the fresh produce supply chain deal with the financial shocks caused by the coronavirus COVID-19 outbreak.
Immediate losses suffered by the fresh produce industry, according to estimates from United Fresh, are:
- $5 billion exposure for lost inventory and risk to growers;
- $1 billion a week in lost sales; and
- Tens of thousands employee furloughed.
In letters sent by United Fresh president and CEO Tom Stenzel to Congressional leaders and the U.S. Department of Agriculture on March 21, Stenzel said the outbreak has had a “seismic impact throughout the produce supply chain,” particularly for foodservice distributors.
“The sudden shutdown of the restaurant sector and practically all of the out-of-the-home eating venues has had devastating impact on the foodservice produce sector,” Stenzel said in an email to The Packer.
That caused big disruptions for distributors but also for growers who supply those distributors, Stenzel said.
“While our entire industry is working 24-7 to feed American by shifting our supply chain from bulk foodservice to retail outlets and consumer packs, government has an obligation to help our companies stay afloat with liquidity through loan programs, and direct support for those in the supply chain who have been financially damaged through no fault of their own,” he said in the email. “We strongly urge Congress and USDA to take action to address the needs of the fresh produce supply chain that has not stopped working in the face of crisis to ensure American’s have the nourishment they need to survive and thrive.”
United Fresh asked Congress and the USDA to consider several recommendations to address industry needs during the COVID-19 crisis.
In part, those recommendations are:
- Establish a multi-billion fund ($5 billion as of March 23) that would be utilized to address claims filed by food service distributors who have outstanding expenditures to grower-shippers. Based on submission and verification of these claims by foodservice distributors, United Fresh said the fund would allow USDA to reimburse grower-shippers directly based on these approved claims;
- Make an additional $1 billion available under the Department of Defense Fresh Fruit and Vegetable Program and the U.S. Department of Agriculture Vendor Program to help meet the needs of schools and all emergency feeding sites that are experiencing increased demand;
- Provide $225 million funding for the Supplemental Nutrition for Women, Infants, and Children to accommodate a temporary increase to the cash-value voucher benefits;
- Add $100 million in new funding for the Specialty Crop State Block Grant Program that would be used to assist growers who experience unique and unexpected conditions due to the COVID-19 pandemic. For example, the letter said funding could be used to purchase protective health equipment such as gloves, masks, and sanitation products needed by the grower-shipper workforce; and
- USDA should consider establishing a Pilot Crop Insurance Program to protect growers in the event of a food safety, government quarantine, or business disruption such as a pandemic.
United Fresh has a “take action” page for members related to this issue on their website.
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