The Packer's top 10 fruit and vegetable news for 2021
The year 2021 was a rough one and brought no “back to normal”. For many 2021 wasn't much better than 2020. Take a trip back in time with us and explore 2021's top 10 fruit and vegetable news.
Supply chain troubles
by Tom Karst
In 2020, the initial restrictions on foodservice operations related to the COVID-19 pandemic nearly broke the supply chain, escalating fruit and vegetable demand at retail while nearly halting foodservice demand for produce altogether.
For many, 2021 wasn't all that much better, as shortages of pallets, packaging, containers for export shipments and trucks created problems for the produce industry.
The issue of supply chains attracted attention from lawmakers, the Biden administration and top industry leaders.
Indoor Ag Boom
by Amy Sowder
The five-year growth trend of indoor farming, especially controlled environment agriculture (CEA), accelerated in 2021, when supply chain delays and rising costs made shipping produce from across the country or world more difficult. That’s in large part because many CEA companies are built on a model that supports regional retail customers.
Controlled environment agriculture companies are growing in a number of ways, including facility expansions nationwide and globally, more types of produce and bigger capital investments, as well as better technology, efficiencies and increasing partnerships — even with traditional outdoor agriculture companies.
Labor
by Tom Karst
Labor is typically always tight on the fresh produce farm. That was truer than ever in 2021, but nearly everyone else in the food supply chain was also experiencing a shortage of workers, from packinghouses that packed the fruit and truckers who moved the refrigerated loads, to the warehouse workers who received the load. That is not to mention the wait staff at restaurants and produce clerks at retail.
For growers, the use of the H-2A guest worker program continues to accelerate, but any relief from the high cost of the program remains elusive at the end of 2021.
Protecting produce's MVP: human capital
by Brooke Park
The year 2021 was a rough one, to say the least. But what was at the forefront of everyone’s mind? The health and safety of our industry’s most valuable asset: employees. Look back at how mask mandates, vaccine requirements and a multitude of other unforeseen variables kept the industry on its toes.
Inflation
by Tom Karst
Inflation roared in 2021, hitting growers, distributors, restaurants, retailers and consumers, and creating concern about the course of the economic recovery. While government and Federal Reserve officials initially described inflation as "transitory, " that outlook was beginning to change in late in the year. With consumer inflation running at 6% at the end of the year, there is a strong possibility that inflation could be a big story in 2022.
Sustainable packaging thrives
by Brooke Park
Sustainable packaging is no doubt the hot topic among produce industry professionals in 2021. Globally, sustainability overtook personal health as consumers’ biggest issue this year, according to Innova Market Insights. The massive push to be environmentally friendly has garnered more questions than answers. Ninety-percent of consumers say sustainability in produce packaging is very important. Meanwhile, consumers and growers differ on the definition of sustainability.
Return of foodservice
by Amy Sowder
The year 2021 brought no “back to normal” for the restaurant industry.
Instead, at the end of the year, the foodservice sector seems in danger of repeating the darkest days during the pandemic. With the rise of the COVID-19 omicron variant, fresh uncertainty is the reality for restaurant operators nearly two years after the start of the COVID-19 pandemic. The Packer has reported periods of resurgence of foodservice demand, but the sector was far from normal even before the concern about the omicron variant.
Extreme Weather
by Brooke Park
Among the many uncertainties of 2021, fruit and vegetable professionals were faced with extreme weather that wreaked havoc on the supply chain. As if a pandemic were not enough, growers, shippers, marketers and retailers were faced with a barrage of crippling weather, from extreme cold in New York and Texas, to the Western wildfires, Hurricane Ida, and severe heat and drought.
Organics increasing
by Amy Sowder
The popularity spike of organics in 2020 wasn’t maintained in 2021, but it’s higher than in 2019 and it’s expected to grow in 2022.
The health halo and younger consumers are some reasons we’re seeing growth. There have been policy changes, with hydroponics approved for USDA-certified organics and revisiting what synthetic substances are allowed. Organic imports are increasing, too.
International Fresh Produce Association
by Tom Karst
The oft-considered merger between the Produce Marketing Association (PMA) and the United Fresh Produce Association finally happened in 2021, with the new International Fresh Produce Association (IFPA) to officially launch on Jan 1, 2022. The combined association is widely supported by industry leaders, though some U.S. grower groups have wondered aloud how strongly IFPA will represent their voices on Capitol Hill.
