Veg Supply Chain Returning to Normal

For organic produce, the transition to spring/summer production has concluded for most of the vegetables, with summer fruit starting to ramp up. Consequently, there is a plethora of opportunities for retailers from coast to coast to start promoting organics again as the nation starts its slow climb back to normalcy.

“For the most part, the supply chains are working well,” said Robert Lichtenberg, director of purchasing for Earl’s Organic Produce, San Francisco, speaking of the impact of coronavirus. “What is mostly affected are the products coming from production plants such as salad mixes and pre-cut vegetables.”

Robert Lichtenberg, director of purchasing, Earl’s Organic Produce

He said those operations have had to adjust their schedules and reduce the number of employees in the plant at any one time as they practice social distancing.  This has led to a reduction in supplies just as consumers are purchasing more produce in bags and other formats with less chance for human contamination. 

This also impacted organic onions and potatoes creating a shortage in the first month of COVID-19, but Lichtenberg said the advent of new crops of those two items has filled the supply situation. “Except for organic russets.  There are no russets on the market right now,” he said.

Lichtenberg has noticed retailers starting to return to a sense of normalcy, which means they are looking for items to promote.  He added that in the organic aisle there are many different items that currently offer promotional opportunities.  “All the wet vegetables are plentiful and there are lots of berries,” he said this week.  “Broccoli and sweet broccoli are promotable; and cauliflower has come way down.  Leaf lettuces are very affordable. There is a lot of asparagus on the market also.”

Lichtenberg said all the traditional organic production areas along California’s Central Coast are in full production creating few supply issues for vegetable commodities.  And the production of organic stone fruit is ramping up in the San Joaquin Valley.

Across the country, Joe Eisinger, director of organic buying for Nathel & Nathel on New York’s Hunts Point produce market, just came back to the office this week after spending a month buying and selling from home. He said a lot has changed in that month including much better availability of organic fruits and vegetables.  He noted that the bagged, grab and go items were the top sellers in the organic aisle and they still are.  “It seems that most people want their produce in bags or other packaging,” he said.

Joe Eisinger, director of organic buying, Nathel & Nathel

Eisinger said the transition to spring and summer production has resulted in most items being in good supply.  He noted that organic onions and potatoes have started up again with the new crop and that organic apples from offshore sources are supplementing Washington’s supply.  He did say that organic peppers were difficult to find this week.

Eisinger said that while the supply chain has been working well, the increase in production has caused a rise in freight rates.  “Right now, out of California, the rates are $7200 to $7500 per load.  And that’s before the summer fruit season is in full production,” he said, adding that fruit supplies are slowly but surely increasing and wonders if there will be enough trucks to handle the increased demand.

In Los Angeles, veteran organic produce salesman David Weinstein of Heath & Lejune Inc. also noted that the organic produce industry is finding its way eight weeks into CV-19 disruptions..

 “A lot has changed since we talked six to eight weeks ago,” Weinstein told OPN Connect this week.  “For one thing I am sitting at home selling, rather than being in the office.  There are lot of things I like about it. I can play my music as loud as I want, and I get a hot, home-cooked lunch every day.  But it also sucks.  I’m not a computer programmer.  I’m an organic produce salesman.  I like to see what I’m selling.  I want to touch it.  Produce is a visual thing.  It’s not the same when you get a digital photo.  It’s actually driving me nuts.  It’s really, really difficult being stuck at home.”

David Weinstein, organic produce salesman, Heath & Lejune Inc

 Weinstein said supplies of most items are good.  “We are not experiencing any shortages right now.  As a practical matter, day in and day out, we are doing what we have to do,” he said.

He added that it is not crop shortages causing issues but rather anxiety that they might occur.  Rumors run rampant and many are acted upon without confirmation.  “We hear they are going to shut the border or farmworkers are getting sick and can’t harvest. Or that there are farmworker housing shortages in Oregon and Washington because they can’t use bunk beds and so they can’t use the housing they have.  There are lots of rumors out there getting people nervous,” he said.

Speaking on the supply side, Weinstein said the lack of foodservice business has opened some eyes, creating oversupplies of several different items because they have lost major sales outlets. “There are a ton of items, such as cukes, that you didn’t consider to be a foodservice item, but they are.”