Industry waiting for good old days to return
These are not the good old days. At least, let’s hope not.
In my latest poll for the LinkedIn Produce Industry Discussion Group, I asked “The biggest issue facing the 2022 fresh produce industry is...”
From the available choices, the first 110 responses were:
- Retail concentration: 14%
- Stimulating demand: 14%
- Grower profitability: 54%
- Other (explain): 18%
Some comments associated with the poll question:
- Inflation
- Stimulating demand should be the number one issue forever in our industry. It will help everyone from grower, wholesale , retail food service and consumer. There is nothing else that matters, high tide raises all the ships, big and small. I may add that recently, retail is the detriment to higher consumption because they are chasing higher margins, which leads to lower consumption. Ask Sprouts how this higher margins worked out for them this past year.
- Labor
- The multitude of sustainability schemes that large retailers/food service providers are requiring. There is no consensus on a standard. We are forced to do social and sustainability assessments for each customer. Even though we’ve submitted to a SEDEX/SEMTA social audit, we have had multiple customers send consultants to verify for themselves, typically at our own expense.
- People!
- labor shortages, both the seasonal and factory staff!
- Water supplies or lack thereof!
- Getting produce safely and at a decent return to their markets.
On the topic of retail concentration, don’t miss the comments of Greg Ferrara. CEO National Grocers Association at the recent House Agriculture Committee hearing on the supply chain. He really came after Walmart (and other large retailers) in a way that I haven’t seen before.
