Judging by early returns from on-farm markets, there is a high demand for Jersey Fresh produce this year — lagging foodservice business not withstanding.
Many on-farm markets have reported that they are busier early in the season than in previous years, said Joe Atchison, marketing and development director of the state’s Department of Agriculture in Trenton.
“We are also encouraging people to insist on Jersey Fresh produce being in their supermarkets as it comes into season. This will be of tremendous help to our farmers and is a great way to support the local economy,” Atchison said.
New Jersey growers anticipate full crops and are prepared to deliver those goods to stores, he said.
ShopRite Supermarkets comprises the most of the market share in New Jersey, ranging from 21.6% to 28.8%, according to according to second-quarter 2020 regional market share data from Shelby Market Research.
Acme and Stop & Shop follow closely behind in the 20% range, while the rest are significantly lower.
Overall, demand this season from retail customers has been excellent, said Chelsea Consalo, vice president of produce operations at Consalo Family Farms, Egg Harbor City, N.J.
“Unfortunately, COVID-19 has devastated the foodservice and terminal-market business that most growers rely upon during their season,” Consalo said. “So far, this has resulted in lower market prices than normal this spring across the board on our vegetable crops.”
Because of the indoor, vertical, hydroponic, automated way Bowery Farm, New York, grows at its Kearny, N.J., farms, the company is able to be very flexible when demand fluctuates wildly, said Carmela Cugini, executive vice president of sales.
“Of course we’ve seen an increase in demand, no question,” she said.
The commercial New Jersey farm supplies more than 100 retail locations in the tristate area.
Bowery’s online grocer partners, such as Amazon Fresh-Whole Foods and Instacart, are also a big part of that jump.
“We’re still seeing a surge of online buying, and 40% of those consumers will stay online even after COVID, a fact shared by IRI,” Cugini said about data analytics company Information Resources Inc.
“When you look at our existing core business, it’s shifting. More people are going online, and we’re seeing those numbers continue to grow.”
Grocery foot traffic in the New York metropolitan area is down as much as 50% to 70%, and nationally, it’s down about 30%, according to Food Marketing Institute, she said.
“We’re actually still seeing growth but not at those spike levels we were,” Cugini said.
Naturally, given the two-month quarantine in New Jersey, people are going to the store less often, and they’re stocking up their baskets more.
“And what we do know is when someone puts a fresh item in their basket, it delivers the highest basket ring for the retailer. And when someone puts a vertically farmed item in their basket — and we did a study on this — when someone puts a Bowery farm item in their basket, it will ring up the highest basket in the store,” she said.
At beginning of the pandemic, Nardelli Bros. Inc., Cedarville, N.J., had “Thanksgiving-type demand” from many retailers, said Bill Nardelli Jr., vice president of sales and marketing.
“They’d come in with these huge orders and then be off for a little while, which now we’re correlating with people leaving the house once a week, or beginning of the week, and then going back in and doing their quarantine,” he said. “So we’re trying to figure it out as best as we can.”
Consumers were gravitating to the items that have a longer shelf life, such as root vegetables, cabbages, and hard squash. They were holding back on some of the more tender items, but now retail demand has increased on most every item, he said.
RETAIL PRICES
On May 22, a pint of blueberries at Northeast retailers was an average of $3.18, compared to $2.63 at the same time last year, according to U.S. Department of Agriculture’s Market News.
Yellow-flesh peaches on May 22 were $1.87 per pound at Northeastern retailers, compared to $1.86 the previous year.
Eight-ounce packages of flat baby spinach were an average of $1.67, compared to $1.73 the previous year.
Green bell peppers were an average of $1 each both years. Green, round cabbage was 57 cents per pound compared to 62 cents the year before.
Two popular spring crops were priced better this year than last by the end of May.
Green asparagus, which is finishing its 2020 season, sold for an average of $3.29 per pound on May 22, compared to $2.72 the same time last year.
One-pound packages of strawberries sold for an average of $2.66 on May 22, compared to $2.57 same time last year.
MARKETING STRATEGY
Because New Jersey growers and marketers serve the most populated region of the U.S., they use that locality as a competitive edge and marketing tool.
Nardelli Bros. has the “Fresher by Miles” registered trademark and offers overnight delivery to Boston, Baltimore, Philadelphia and New York, Nardelli said.
The company also uses the state agriculture department’s Jersey Fresh branding on twist tags, stickers, boxes and labels.
“We’re big supporters of Jersey Fresh program and label that on all our products,” he said.
Early in the season, marketing efforts have been more digital-based as many people are staying home and using laptops, computers and phones, said Joe Atchison, marketing and development director of the New Jersey Department of Agriculture, Trenton.
“As the state re-opens, and there are more vehicles on the road, we will return to using digital billboards on major roadways and radio advertising to promote Jersey Fresh,” Atchison said.
June is a great month to be marketing New Jersey products because there is so much variety available, Nardelli said.
“We consider it a one-stop shop for retailers and wholesalers,” he said about his family company’s ability to put as many as 30 different items on one truck for a retailer.
The majority of Nardelli Bros.’ business is from major retailers, although it does “quite a bit” of foodservice business as well, he said.
Some of Nardelli’s foodservice partners have changed business models to survive the government-mandated closures and quarantining measures during the pandemic, such as offering at-home delivery.
COVID-19 aside, consumers have been wanting more packaged items, more organic options and lesser-known varieties, Nardelli said.
Foodies want not-so-mainstream leafy greens, like endive and bok choy.
“Since it became trendy, now kale has become a staple in their diets. It’s been a consistent, steady item for us, and we hope it will maintain that going forward,” he said.
Most recently, Chelsea Consalo of Consalo Family Farms, Egg Harbor City, N.J., is seeing a shift into larger pack sizes for blueberries.
“The norm over past years was for retailers to carry only one size packaging, mostly pints. We are seeing more and more requests for pints combined with larger sizes, like 18-ounce and 2-pound, from our retail customers,” Consalo said.
The New Jersey Peach Promotion Council reported that it’s working with retailers to make advance volume commitments, focusing on bulk traypacks, and grab-and-go 2-pound bags — “pack styles that should be appealing to your customers in this new normal that we’re adjusting to,” state agriculture commissioner Douglas Fisher said on a May 23 video for the Eastern Produce Council, New Providence, N.J.
Related content:
Snapshot: NJ produce season through the eyes of Nardelli Bros.
How indoor, vertical Bowery Farming is faring during COVID-19
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