Texas onion shippers find optimism amidst COVID-related challenges

Last year was a long season of challenges. COVID-19 disrupted the world supply chain and it’s a long way from recovering. Add in labor shortages, truck shortages, inflation and a freeze last year for Texas onion growers, and it’s hard to pin down which challenge was greater.

Texas onion shippers have been experiencing inflation without any product to sell. All of the inputs are more expensive, which is running overhead up to 30% more year over year, according to Dante Galeazzi, CEO and president at Texas International Produce Association.

That’s a huge challenge that will force growers to make difficult decisions, if costs continue to climb.

“We can only grow what people are willing to pay. It creates unique challenges for us,” Galeazzi said.

While inflation is a top concern for growers, labor creates a different set of challenges.

“Labor is our most challenging aspect of business right now. I see it getting worse. As more and more Texas onions mature, there’s going to be more competition in the labor pool,” said Jeff Brechler, who works in sales at Edinburg, Texas-based Little Bear Produce. 

The labor shortage caused the company to try something they’d never done before.

“We tried the H-2A program for the first time in company history,” Brechler said of the temporary agricultural worker program. “If things don’t change, we’ll have to lean more in that direction. We don’t have the ability to automate quickly. Even if we did, it may be 18 months or longer before you see progress."

In the midst of supply chain, labor, freight and weather issues, Brechler believes some good has come out of everything.

“People understand better that their produce doesn’t come from the supermarket. There’s more appreciation. There’s also a better grasp now from retail buyers,” Brechler said. “People have to eat. That fact makes me optimistic about the future of our business.”

One Texas onion grower is optimistic because of the ever-growing popularity of organics.

Dennis Holbrook, president at Mission, Texas-based South Tex Organics said, being an organic producer for the past 38 years and seeing the growth of the organic sector keeps him optimistic about the company’s future. 

Organic or conventional, there are good ways retailers can boost sales of sweet onions by highlighting their versatility. They can be used in salads, soups and main dishes.

“I get that an onion will never be center-plate. It will be the silent partner or accompanying string section, though,” Brechler said. “Cross-promoting with tomatoes and peppers or in the meat department will benefit sweet onion sales.”