Michigan Fresh Marketing expects good crops of apples and vegetables this year. Joe D’Ottavio, CEO of Michigan Fresh Marketing (apple sales/farming operations) and Vine Line Produce (retail/wholesale/foodservice distribution), said Michigan Fresh Marketing has 400 acres of apples on its own and also sources from 32 independent growers, who together grow 25,000 plus combined acres in apples and vegetables. D’Ottavio said overall crop conditions were favorable for apples, despite a challenging weather year. Early warm temperatures triggered growth and development, which was followed by a cold wave that had growers concerned. None of the company’s apple volume is organic, but D’Ottavio said there is an uptick in demand for organic vegetables.
COVID-19 changes
During the COVID-19 pandemic, D’Ottavio said Michigan Fresh Marketing sold a higher percentage of bags to retailers and less tray cartons. The increased demand for bags was partially due to increased consumer demand but also because bags were easier to execute at the retail level. In addition, government assistance played a helpful role, he said. “We were able to utilize smaller good quality fruit in the USDA Food Box Program,” D’Ottavio said.
Looking ahead, D’Ottavio believes 2021 will begin to take the produce industry back pre-COVID levels. “Unfortunately, small restaurants couldn’t sustain revenue and loss of cash flow and closed. “I see the foodservice side climbing back to 70%,” he said. At retail, he said the end of COVID should result in retailers resuming pre-COVID merchandising/marketing programs, including resuming in-store demos for new varieties. The company also has introduced sustainable packaging in conjunction with Belding, Mich.-based Belle Harvest who is a strategic partner in a sales alliance with Michigan Fresh Marketing.
Labor efficiencies
An important efficiency for Michigan Fresh Marketing is retention of workers and also use of consistent H-2A workers during harvest. That, D’Ottavio said, promotes speed/efficiency and proper technique that minimizes bruising of fruit. Michigan Fresh Marketing utilizes Onsite Staffing based in Sebring Fla., for its H-2A program, D’Ottavio said. Onsite Staffing is very knowledgeable, he said, in terms of petition writing/recruiting/staying current on all legal requirements. In addition, he said Onsite Staffing has an onsite presence at the farm level to process payroll and assist in coding of bins/rate/hours.
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