What we learned at Global Organic Produce Expo
The Global Organic Produce Expo golf tournament, Aug. 5-6 at the TPC Sawgrass Stadium Golf Course in Florida, offered insights into how major produce companies weathered the pandemic of 2020, what's new and exciting in 2021 and what's ahead for 2022.
Organic retail and foodservice buyers, wholesalers/distributors, suppliers, packers, growers, shippers and allied members of the produce industry gathered from across the America’s to network and talk business at GOPEX Golf.
The overall take-away from industry professionals was business is good; organic sales grew in 2020 and 2021. Although the growth rate is beginning to slow, the general outlook is very positive. Here’s what organic companies had to say about 2020-21 business challenges and accomplishments, as well as their 2022 outlook.
“A lot more people are enjoying the experience of organic,” said Sharon Robb, national marketing manager for North Bay Produce Inc, Traverse City, Mich. “People are starting to think healthier. They're looking at, how can I get my family healthier, and their thought is organic is the solution to that.”
Brent Shammo, the national marketing representative at Starr Ranch Growers, Wenatchee, Wash., said, “We are seeing growth everywhere. Organic is still growing at a good rate, almost double digits.”
Isabel Hurtado, general manager at Miami-based Ecoripe Tropicals, said the company had some difficulties sourcing organic coconuts during the COVID-19 pandemic.
“We haven't been able to bring any (from Thailand, due to its lock down), so we were completely stopped on the Genuine Organic Coconut for maybe a month or two. It is people too, not just produce or commodities. They're not able to go to work and are unable to harvest … so everything stopped.”
Jenna Duffy, sales and merchandising specialist at Bakersfield, Calif.-based Grimmway Farms/Cal-Organic said, “One of the challenges that we had was to stop certain production, like on our value-added side, just to like get carrots out.”
Marliese McWherter, creative marketing manager for Watsonville, Calif.-based Lakeside Organic Gardens, said, “Over the past year (the pandemic) has put a lot of strain and stress on a lot of our procedures and operations, but the biggest one has been with labor. We have wonderful, beautiful produce out there and when you don't have labor, then it's hard to move it.”
“It's really a health-centric focus right now and we haven't had a lot of rain or heat in central California, on the coast in Watsonville,” she said. “We get the pop-up shower in the morning and in the evening, so the weather has been just perfect for us.”
Transportation
Michael Fernandes, director of sales at Titusville, Fla.-based John Greene Logistics, said the “greatest challenges has for sure been capacity and lack of drivers out in the transportation industry.”
Hannah Cleveland, carrier relations manager at John Greene Logistics, said the driver shortage is one of the biggest challenges the company is currently facing.
“There is definitely a demand for drivers; (it’s) a little bit tough because they're driving the rates right now. So, it’s just kind of cutthroat as far as customers having to pay to haul produce right now. Customers need to have their products, though.”
Kim Crowther, organic coordinator for Monte Vista, Colo.-based Farm Fresh Direct, said, “We noticed that business picked up, so that was awesome. But we had a spike in shipping with a decrease in supply of shipping, and then the trucking situation has been a struggle.”
COVID-19
COVID-19 affected produce industry business in a variety of ways. Brena Whipple, marketing coordinator for Yakima, Wash.-based Domex Superfresh Growers, said the company started testing its contingency plan early.
“(A) couple weeks before the shutdown started, we were doing trial runs of people working from home … one group of people would be out one day working from home, then another group, so everyone was assigned a day.”
“We had a whole COVID team put in place and eight or 10 people were in charge of making sure safety measures were taken care (of),” Whipple said. “Now we’re all back in the office with a 95% vaccinated rate. We had three on-site vaccination clinics.”
Fernandes of John Green Logistics said, “We faired very well in continuing to support and provide capacity to our current customers during the pandemic; we took on a few new customers to service as well.”
Packaging
Packaging was a major topic of conversation at GOPEX.
“The trend is still going towards bags,” Starr Ranch’s Shammo said. “So, when a customer comes in, they don’t want to have food that people have touched with the bulk stuff so we’ve been selling a ton of bag apples and weighted stuff.”
“What you see here … it’s all recyclable, stuff that nobody else has,” he said of packaging options the company showed off at GOPEX. “(We have) these cardboard corrugated 4-pound and 3-pound boxes and recyclable No. 2 100% recyclable packaging. Sustainable packaging is pretty important.”
Carlos Franco, salesman at San Diego-based Master’s Touch, said the company has a new 6-ounce packaging for its tomatoes.
“It’s about 14 to 18 tomatoes, give or take, in a bag,” he said. “The price point turns out to be close to half of what the clamshell can be, a difference of about 20% or so, but it is definitely an item that we are looking to promote in the future.”
Cal-Organic is looking forward to launching organic carrot chip dippers later this year. The carrot-on-the-go packages contain three dipping sections with hummus, ranch dressing and guacamole.
Ecoripe Farms touted its organic water coconuts, which feature an “easy-open system” and drinking straw. The coconuts come in 6-count boxes and are available year-round.
Andy Graces, sales and marketing manager for Miami-based Luv Fruits ,said the company is planning to launch avocado pulp for retail soon.
“Basically, it's pure avocado, just smashed,” he said.
Luv Fruits, which also sells whole avocados, is also introducing new PLU stickers to better educate the consumers on different avocado varieties and origins.
2022 outlook
“I think the biggest thing we are looking forward to in 2022 is somewhat life getting back to normal, I would say,” said John Greene Logistics’ Fernandes. “As for goals or project, (it) would be to continue to grow our business and keeping our current and new customers satisfied.”
McWherter of Lakeside Organic Gardens said, “We’re still enjoying celebrating our 25th anniversary. (We are focusing) on growing to reach demand, and I think we’re going to continue doing that and hope to continue to see more growth and fantastic organic growers.
“We want to continue eliminating food waste,” he said, “and we’ll keep working with our customers to keep the produce going into the hands of the consumers, and less food left in the fields.”
Superfresh Organics is focused on the 2022 harvest, as well as its new organic packaging. Whipple said, “The new stately purple packaging creates eye-catching produce displays that signal to consumers the products are organic from across the store,” Whipple said.
