Economy, higher retail prices put a damper on demand - The Packer

Economy, higher retail prices put a damper on demand

09/01/2009 02:11:28 PM
Doug Ohlemeier

“The economy is putting a strain on produce sales,” said Shay Kennedy, co-owner, vice president and sales manager of Georgia Vegetable Co. Inc., Tifton, Ga.

One thing that doesn’t help the grower or supermarket is the maintenance of high-priced produce.

“What’s upsetting is with all of these prices being so low, we still see high retails in stores,” Kennedy said. “I talk a lot with consumers and they can’t believe prices are so high when growers aren’t getting a lot. Somewhere, we have to meet in the middle.”

Kennedy said one thing that could help perk up sales is if retailers could price their produce more competitively. The higher movement would likely return more profits to the stores that have to meet targets, as well as to their suppliers.

Higher prices may scare the average family from buying as much fresh produce as it may have in the past.

That could prompt many shoppers to turn to less expensive frozen and canned foods until fresh prices revert to lower levels.


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