Produce industry is ‘thriving’ in St. Louis

Produce sales in the St. Louis, Mo., area are going strong, and distributors say they anticipate a solid fall-winter season. Businesses at the St. Louis Produce Market itself “are thriving,” said Sean Kelley, market manager. “I think things are going really well for everybody,” he said.

The market, which officially opened in 1953, is at full capacity with 14 owners doing business there. The facility is undergoing an extensive roofing project, which so far has replaced roofs on 80% of the pods on the market, Kelley said. Business has changed on the market, as many of the area’s smaller chains have been bought out by larger companies, said Joe Sanders, owner of Midstate Produce Co. Inc. But still, the company continues to thrive.

“We’re expanding our facility and getting ready to modernize a couple of our units,” Sanders said. “We’ll be upgrading it to modern standards to make it more green and efficient.” That project will start in the fall. Midstate Produce Co. carries an extensive line of fruits and vegetables for retail and foodservice customers that includes local apples and homegrown butternut squash. “We’re always going full throttle,” Sanders said.

Pumpkins will be the leading commodity through October for Midwest Best Produce Inc. in St. Louis, said Dan Pupillo, president Pumpkin sales took off in early September, and supplies were good all month. That likely will change in October, however. “Once we get into the middle of October, it’s really going to fall off due to all the rain we had earlier in the summer,” Pupillo said.

But he did not expect a pumpkin shortage. “The retailers front load their warehouses,” he said, and should have enough of the gourds to meet demand.

Watermelon is another big seller at Midwest Best Produce. Packaging changes from bins to cartons during the fall and winter, and sourcing switches to Mexico and offshore growing areas. Other winter staples include broccoli, cauliflower, peppers, onions and mixed vegetables.

Tomatoes and packaged corn are a big deal at Front Row Produce LLC, Overland, Mo., said Tony Pupillo Sr., owner and president. “We do a lot of packaged corn,” Pupillo said, including four- and five-count packs. Front Row Produce has a machine that automatically shucks corn, he said. “It’s a pretty big operation.”

The company has been moving more corn every year and now has sales representatives in Tulsa, Okla.; Kansas City, Mo.; and Nogales, Ariz., in addition to Overland, Mo. The fall product line includes peppers, cucumbers, zucchini, yellow squash, eggplant, jalapeno peppers and citrus. The firm puts up three-packs of peppers and overwraps zucchini for retail chains. Owner Vince Pupillo describes VMP Produce Co. on the market as a “little house that has found our niche.” The company specializes in grape, hothouse and round tomatoes as well as peppers, cucumbers and squash.

Coping with inflation

Like produce suppliers everywhere, St. Louis distributors are doing their best to cope with skyrocketing inflation. “We’re paying more, and we’ve got to pass it on,” said Dan Pupillo of Midwest Best Produce.

“We can definitely feel it,” added Tony Pupillo of Front Row Produce. The company is working on tight margins and has to deal with higher prices for things like gasoline, boxes and labor, he said. “It’s harder to make money,” he said. “You can’t pass it all on.” 

Joe Sanders of Midstate Produce Co. said supply chain issues from COVID-19 and ensuing higher prices have been a bigger detriment to the produce industry than overall inflation. “We do all right,” he said, “but end users -- consumers – definitely feel it, just like we’re feeling it.”

There was some good news, though. “Freight costs are easing, which ought to help,” he said.

St. Louis-based SilverCity Express LLC hauls produce for a number of local produce firms, said owner Muriz Hasanovic. Business is strong for the company. “I cannot complain,” Hasanovic said. But he added that it’s been difficult to find drivers, and he’s received complaints about higher prices from some of his customers. “Everything is up,” he said, including fuel, labor and insurance costs, and he said he doesn’t see any major changes anytime soon.

Kelley said costs of doing business on the market have risen, but not as much as they have at facilities on the East and West coasts. “It’s not cheap,” he said. “But it’s not astronomical.”