Produce operators reflect on COVID-19 lessons
Constant communication with employees and strong buyer-seller relationships have helped produce operators manage the choppy waters since the COVID-19 crisis began.
Those are two truths shared by produce industry leaders participating in Farm Journal’s Farm Country Forum on April 16 .
Tom Karst, editor of The Packer, was moderator of the session called “Keeping Food on America’s Table.”
Panelists were:
- Kevin Byers, senior produce merchandiser at PCC Community Markets, Seattle;
- Jeff Cady, director of produce and floral for Tops Friendly Markets, Williamsville, N.Y.;
- Alex DiNovo, president and chief operating officer of DNO Produce, Columbus, Ohio;
- Thomas Kovacevich III, president of T.M. Kovacevich Philadelphia Inc., Philadelphia; and
- Roger Pepperl, director of marketing for Stemilt Growers, Wenatchee, Wash.
The shutdown of restaurants related to COVID-19 related restrictions forced the supply chain to adjust.
The Census Bureau reported foodservice sales in March were down 23% compared with March 2019, while supermarket sales were up 28%. Because restrictions on restaurants began in mid-March, those numbers don’t show the full effect.
The panelists discussed supply chain challenges, ideas on keeping workers motivated, lessons learned and long-term needs of the produce industry.
Staying responsive is critical, DiNovo said.
“I think the key is to be extremely nimble right now,” he said.
Much of DNO’s volume has traditionally been for foodservice, the company has changed to find solutions for food banks, retailers and consumers.
“I just challenged my team to come up with some ideas and to see if (they) work,” he said. “If it does, we’ll find a way to make it happen.”
DiNovo said one successful idea is selling produce boxes directly to consumers.
“We are really engaging with the different stakeholders anticipating where their changing needs are going to be,” he said.
Kovacevich said that his wholesale firm’s nine buyers are in constant communication with hundreds of customers and suppliers.
“Those conversations are going on all day, communicating not only what’s necessary for today but (also) what they anticipate for next week,” he said.
After the lockdown began, Kovacevich said citrus was a commodity that saw a big jump in demand, as people were looking for food that could boost their health.
Byers said consumers increased purchases of hardier commodities like potatoes, onions and citrus, but also commodities like garlic and ginger.
“We knew we were going to start seeing a surge, and we were communicating up and down the supply chain to make sure that we were prepared for the demand that was coming,” he said.
Consumers are making fewer trips, but and buying more, Byers said.
“Shoppers don’t want to be (in the store) for long, so we try to give them that stuff they can get out with quick.”
Pepperl said consumers have been buying more bagged apples, and larger bags of apples.
“We have helped guide our retailers to what is working out there,” he said. “We’re finding the solutions that will sell this crop.”
Beyond increased demand for bags and tote bags, Stemilt has been shipping more bins and display-ready cartons to retailers.
Because all the farmers markets in the Seattle area have been shut down, Byers said PCC Markets is helping local growers move their products at retail stores.
“We started reaching out to a lot of those farmers market vendors (to see) if we can if we can bring in some of their stuff to sell,” he said. “We have actually expanded some of what we offer.”
Cady said Tops stores have seen increased demand for bagged produce. For example, 10-pound bags of potatoes, which have fallen out of favor in recent years, has shown bigger demand in recent weeks.
Lessons learned
Asked about what lessons have been learned during the pandemic, Kovacevich said communication is essential.
“We have got our ear to the ground and (if there is) something we need to react to, we react to it, and we communicate with our associates or employees properly and clearly and honestly,” he said.
DiNovo said the crisis has revealed the leadership qualities of employees.
“You get to see who your best are, those who come out find solutions and make things happen,” he said.
The company also will come out of the crisis more efficient, with an eye toward cutting unnecessary costs, he said.
Byers said the crisis has caused PCC Markets to focus even more on the needs of customers and staff.
“Especially in the beginning, things were different every single day,” he said. “So really being able to be nimble was a big lesson learned.”
The stress of COVID-19 on the produce supply chain proved the importance of relationships in the business, Cady said.
“I think it really validates how we go to business in this industry, and how tight we all are,” he said.
During the strain of panic buying at retail, Pepperl said Stemilt Growers was focused on saying “yes” to retail customers.
“The customers are really busy right now and they cannot afford the word ‘no,’” he said. “So learn to work with them, make it easy for them and make the business flow.”
To see more on how the industry is adjusting to the pandemic, see The Packer's COVID-19 Updates.
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