To survive and thrive, produce professionals always have to ask: Where do we go from here?
That’s especially true after such a tumultuous 2020 with the onslaught of the COVID-19 pandemic.
The Packer and the Equitable Food Initiative partnered to ensure the lessons that helped agricultural businesses survive in the past year, as well as the challenges that remain, are widely shared within the industry to ensure its future growth and success.
The EFI survey polled more than 50 produce operators, mostly on the supply side, about their experiences during the pandemic.
The results of that survey will be compiled soon in a white paper and available for download.
This is the final installment of the four-week series, looking at the future of fresh produce.
How do produce operators feel about the challenges and opportunities for the produce business in the next three to five years?
The Packer/EFI survey takes the pulse of the industry on their business outlook.
High demand for fresh produce due to increased home-cooking, a focus on the health benefits and more awareness of buying local or U.S.-grown are trends that could stay, according to the survey. Some respondents also noticed more interest in lesser-known varieties.
But the pandemic also illuminated the need to protect the needs of agriculture workers and family obligations of employees.
One respondent said agriculture workers were so afraid of what would happen to them and their families if they missed work that they would work while sick, infecting others and leading to a complete shutdown.
Plus, there were several references to the mental health of workers, given the ongoing demands and stress, increased family pressures with children at home and elderly parents sick or isolated, and the difficulties in rolling out the vaccine.
“Work/life balance does not exist; it is more accurate to seek work/life integration,” one respondent said.
Also, the survey showed it’s unclear how foodservice will regain its losses, who’s going to eat the higher costs along the supply chain and how smaller businesses can survive.
These are some of the thoughts by survey respondents.
Challenges:
- “I am concerned about growth in the foodservice segment and its ability to regain losses based on the number of restaurants that faced so much financial hardship due to the pandemic.”
- “The industry will continue to be challenged with cost pressure as retailers look for price leadership paired with better tasting varieties.”
- “Without prioritizing the needs of ag workers, the produce industry and entire counties [can] come to a complete stop, creating an unprecedented unemployment rate.”
- Small farmers will continue to go out of business as the increasing costs make it hard to compete in a market where the profit margins are thin. Smaller companies also have less resources to keep up and operate during a pandemic.”
- I want all my coworkers to know they need to follow protocols so we can continue producing food.”
Opportunities:
- “Some changes had to be made, but for the better. We are essential workers, and food is in demand. I believed that the pandemic changed a lot of the perspective on hygiene, and I believe that the food industry will just get stronger.”
- “There is a bright future for fresh produce, especially if we can continue to inspire consumers (who) are cooking at home to try our products.”
- “I see employee health becoming a bigger concern, remote work becoming a regular option and more Zoom or virtual meetings.”
- “I think there will be a bigger push for ‘local’ American foods, and I am hopeful that there will be less of a reliance on imports for fresh produce.”
- “I think the pandemic has pushed people towards cooking for themselves much more, as well as connecting food to their health in profound ways. Both of these have pushed produce sales skyward, as well as smaller niche categories seeing a huge boost (mushrooms, sprouts, probiotics).”