The 15th fastest-growing city in the nation, Atlanta is a thriving transportation hub for the United States as well as countries across the globe. Hartsfield-Jackson Atlanta International Airport is the busiest airport in the world with daily direct flights to Europe, South America, and Asia. With more than 1,000 international businesses operating in the city, Georgia’s capital has emerged as a thriving banking center and is now home to 13 Fortune 500 companies.
In the past couple of decades, the Big Peach has experienced a virtual population explosion. Not only has the state of Georgia seen rising population figures (from just under 5.5 million in 1980 to 9.8 million in 2011), but so has the increasingly popular “Hotlanta.”
According to most recent U.S. Census estimates, Atlanta’s population grew by 3 percent in little over a year from April 2010 to July 2011. Though Atlanta is home to an estimated 432,427 residents, the city’s metro population has climbed by nearly 40 percent over the past decade to 4.1 million people.
Atlanta State Farmers Market
Founded in 1837, Atlanta started off as a railroad town. Yet agriculture—Georgia’s oldest and largest industry—has long played a major role in the city’s economy. Each year, the agriculture industry contributes more than $65 billion to the state’s $700 billion-plus economy, according to the Georgia Farm Bureau. Agriculture is also a major source of jobs, with one in seven Georgians working in agriculture, forestry, or a related field.
Georgia is also one of the U.S.’s top exporters of agricultural products, which reached $3 billion in 2012. The state’s top international shipping destination is Canada, which claimed 18 percent of total ag exports and is the Peach State’s fastest growing market. The Georgia Department of Economic Development has also been paying close attention to Hong Kong, the gateway to China—Georgia’s second-fastest growing export market for agricultural products. In terms of export shipments by commodity, the state ranked in the top five for tree nuts (with California, New Mexico, Oregon, and Texas); the top ten for both fresh fruit and vegetables, as well as processed fruit and vegetables, and twelfth in total U.S. exports by value.
The heartbeat of Georgia’s agricultural industry is the Atlanta State Farmers Market—the biggest market in the Southeast and one of the largest in the world. Founded in 1939, the market originally operated out of Atlanta’s West End before relocating to its current facility in 1959.
Located in Forest Park, an industrial district not far from the Hartsfield-Jackson airport, the market serves as a major fresh produce hub and distribution point for restaurants, retailers, and other buyers in the city, state, and entire Southeast. The Atlanta State Farmers Market is owned by the Georgia Department of Agriculture, which leases space to the distributors.
It’s no wonder the Atlanta Market has been dubbed “The World’s Largest Roadside Fruit and Vegetable Stand.” The massive market encompasses 150 acres of completely fenced space, bursting with vendors, retail and wholesale activities, shipping facilities, and expansive storage buildings. The market also features administrative facilities, a restaurant, a welcome center, a U.S. Department of Agriculture (USDA) federal-state office, and a massive support staff, including its own police presence.
The 15th fastest-growing city in the nation, Atlanta is a thriving transportation hub for the United States as well as countries across the globe. Hartsfield-Jackson Atlanta International Airport is the busiest airport in the world with daily direct flights to Europe, South America, and Asia. With more than 1,000 international businesses operating in the city, Georgia’s capital has emerged as a thriving banking center and is now home to 13 Fortune 500 companies.
In the past couple of decades, the Big Peach has experienced a virtual population explosion. Not only has the state of Georgia seen rising population figures (from just under 5.5 million in 1980 to 9.8 million in 2011), but so has the increasingly popular “Hotlanta.”
According to most recent U.S. Census estimates, Atlanta’s population grew by 3 percent in little over a year from April 2010 to July 2011. Though Atlanta is home to an estimated 432,427 residents, the city’s metro population has climbed by nearly 40 percent over the past decade to 4.1 million people.
Atlanta State Farmers Market
Founded in 1837, Atlanta started off as a railroad town. Yet agriculture—Georgia’s oldest and largest industry—has long played a major role in the city’s economy. Each year, the agriculture industry contributes more than $65 billion to the state’s $700 billion-plus economy, according to the Georgia Farm Bureau. Agriculture is also a major source of jobs, with one in seven Georgians working in agriculture, forestry, or a related field.
Georgia is also one of the U.S.’s top exporters of agricultural products, which reached $3 billion in 2012. The state’s top international shipping destination is Canada, which claimed 18 percent of total ag exports and is the Peach State’s fastest growing market. The Georgia Department of Economic Development has also been paying close attention to Hong Kong, the gateway to China—Georgia’s second-fastest growing export market for agricultural products. In terms of export shipments by commodity, the state ranked in the top five for tree nuts (with California, New Mexico, Oregon, and Texas); the top ten for both fresh fruit and vegetables, as well as processed fruit and vegetables, and twelfth in total U.S. exports by value.
The heartbeat of Georgia’s agricultural industry is the Atlanta State Farmers Market—the biggest market in the Southeast and one of the largest in the world. Founded in 1939, the market originally operated out of Atlanta’s West End before relocating to its current facility in 1959.
Located in Forest Park, an industrial district not far from the Hartsfield-Jackson airport, the market serves as a major fresh produce hub and distribution point for restaurants, retailers, and other buyers in the city, state, and entire Southeast. The Atlanta State Farmers Market is owned by the Georgia Department of Agriculture, which leases space to the distributors.
It’s no wonder the Atlanta Market has been dubbed “The World’s Largest Roadside Fruit and Vegetable Stand.” The massive market encompasses 150 acres of completely fenced space, bursting with vendors, retail and wholesale activities, shipping facilities, and expansive storage buildings. The market also features administrative facilities, a restaurant, a welcome center, a U.S. Department of Agriculture (USDA) federal-state office, and a massive support staff, including its own police presence.
Attracting more than 3,500 visitors a day, the flourishing Market is open seven days a week, 24 hours per day, 364 days a year (the market is only closed to the public on Christmas Day). During the holiday season, the Atlanta State Farmers Market also serves as a major distribution center for Christmas trees, selling an average of 250,000 trees each year.
Selling more than $1.1 billion worth of goods in 2012 from the state’s 159 counties and beyond, the Market employs more than 3,700 and has an estimated payroll of $75 million. The Market’s produce-retail area includes 18 open sheds (576 stalls) and six enclosed sheds (96 stalls).
Although vendors sell fruit and vegetables grown throughout the Southeast, the vast majority of produce on the market is Georgia-grown (see table on previous page for some examples by specific unit type). In 2012 the market sold just under $3.2 million in Georgia-grown tomatoes (all types), $3.1 million in watermelon, $2.1 million in collard greens, and $1.4 million in bell peppers. Vidalia onions and cantaloupe both had sales just shy of the million-dollar mark, while cabbage, corn, cucumbers, hot peppers, and squash all had annual sales over $500,000.
A sampling of the most popular fruit and vegetables not grown within state or in sufficient quantities to meet demand include apples, bananas, bell peppers, grapes, iceberg lettuce, lemons, onions, potatoes, strawberries, and tomatoes—especially Roma tomatoes.
Advantages
Although it’s been around for more than seven decades, the Atlanta State Farmers Market has evolved by leaps and bounds since its inception. “The Market is continually changing as is our produce industry,” points out Brian Young, vice president of Coosemans Atlanta, Inc., which receives and ships a wide range of fruit, vegetables, and specialty items.
Young says the market has made countless improvements over the years, including additional warehouse space, improved energy-efficient lighting, increased awareness of locally grown produce, and seen new leadership within the Georgia Department of Agriculture. “These changes, along with the demographics of Atlanta and surrounding areas, are all good for business,” he adds.
Diversity
There is no question Georgia’s demographics have shifted significantly in the past decade. Between 2000 and 2010, the state’s Hispanic population doubled to more than 850,000 people. Of the Peach State’s most populous cities, Atlanta had the greatest Hispanic population with 21,815 residents. The most recent U.S. Census figures show Latinos and Hispanics comprise 9.1 percent of the entire state’s population, as compared with approximately 5.0 percent in 2000.
“The diversity helps [business] because people eat a wide variety of produce around here—everything,” says Hubert Nall III, president and treasurer of Hubert H. Nall Company, Inc., a longtime broker on the market.
Scott Chapman, vice president of sales with produce distributor Nickey Gregory Company, LLC, says he’s seen an increase in ethnic vendors, particularly those specializing in Hispanic produce, at the Atlanta State Farmers Market.
“There are kind of two parts to this market,” explains Randy Lineberger, executive vice president for General Produce, Inc., the largest full-line wholesaler in the Southeast, which is headquartered at the Atlanta Market. “What we call ‘up on the hill’ is all the large wholesalers, and there are a couple of Hispanic companies within this group that are doing really well. Further, he explains, are merchants and dealers in what he terms as the other end of the market—the open air stalls area—which Lineberger says is dominated by Hispanic buyers and sellers.
In addition to the area’s growing Hispanic population, Atlanta has also seen a sharp rise in Asian residents—a trend that mirrors population changes across the nation. According to a 2012 U.S. Census report, the U.S. Asian population increased four times faster than total U.S. population in the decade from 2000 to 2010. Georgia was among the top five states with the most Asian growth. Of course, this is fabulous news for Atlanta’s produce businesses. “The state’s diversity only adds to the opportunities to source and sell additional commodities,” says Young.
Georgia Grown
While demand for specialty and ethnic produce continues to grow, Georgia dealers have noticed another positive trend: consumers are demanding more locally grown fruits and vegetables.
A few years ago, the state’s blossoming Buy Local movement prompted the Georgia Department of Agriculture to create the “Georgia Grown” program to promote fresh foods grown within the Peach State. The Georgia Grown program provides a powerful branding tool as well as education, marketing, and business connections for agricultural companies throughout the state. In early 2012, the Georgia Department of Agriculture launched a revamped Georgia Grown campaign, complete with a redesigned logo and a brand new website (GeorgiaGrown.com.)
“Businesses [on the market] are working to source and promote more local products, which is working well with our Georgia Grown program,” says Paul Thompson, the Atlanta Market’s manager. He says the Atlanta State Farmers Market held three Georgia Grown farmer showcases in 2012 in an effort to spotlight locally grown produce.
“We’ve always supported Georgia Grown,” adds Lineberger. “[Locally grown product] sells whether you spotlight it or not. But the retailers in Georgia want to make sure consumers know they support Georgia Grown, so it’s more in the public eye these days.”
Organics
Georgia produce businesses have also noticed a slow yet steady growth in organics. “Demand for organic produce seems to be picking up some,” says Lineberger. “It seems to be more in the limelight these days than it has in the past.”
Although there are only about 40 certified organic growers in Georgia out of the state’s 47,000 farms, total acreage devoted to organics has more than quadrupled over the last half-dozen years. “With increased consumer awareness, we have seen significant growth in organic produce sales as well as in the leafy greens, kale, collards, and other healthy alternatives,” says Young.
Organic fruits and vegetables have also become more important to the state’s restaurant industry, which had total sales of over $14 billion in 2012. Just as agriculture is a major employer, about 385,000 Georgians (representing 10 percent of the state’s total workforce) work in over 16,000 fast food, fast-casual, and fine dining establishments—most of which are clustered around the Atlanta and Smyrna region.
“If people continue to be health conscious, then that will certainly benefit everybody in the produce industry,” says David C. Rose, president and treasurer of Merrin-Cravens Company, a venerable broker on the Atlanta Market. “Of course we have to continue to promote our products and get the word out to consumers—and that’s a tough thing to do, and it doesn’t come cheap.”
Challenges
Although they enjoy endless advantages, businesses on the Atlanta State Farmers Market are not immune to the industry’s many challenges. “There is never a shortage of challenges to contend with in the produce business,” says Young. Most Georgia produce professionals say the weather, labor shortages, and food safety have posed the biggest issues for them in the past year.
The Weather – Labor – Food Safety Trifecta
Weather
Thompson says the weather has kept grower-shippers and wholesalers on their toes for the past year or so. “Droughts have been a serious issue, especially for our growers down in South Georgia,” he says.
Georgia suffered the most drought damage in the South, though numerous counties in Alabama and South Carolina, as well as handful in Florida were also affected. Due west, Arkansas, Texas, Oklahoma, Kansas, New Mexico, Colorado, and Utah were among the hardest hit states. Over 80 counties in the Peach State were considered primary or contiguous disaster areas and eligible for federal aid in 2013.
“The drought was the worst last August, and that hurt the corn,” explains Gloria Lewis, CFO at Hatcher Produce Company, Inc., a produce wholesaler in Atlanta. “We had to order corn from out West,” she said, which in turn raised prices due to higher freight charges. “We usually go down to Florida and get corn with our own trucks; we don’t usually have to travel out to California.” Lewis adds that an unexpected freeze in 2012 also impacted Georgia greens, driving up prices.
“Weather always affects product,” observed Lineberger. “We haven’t had a major storm or anything to wipe us out, but there’s been some cold snaps to slow down product. It’s just the norm.”
Labor
Georgia produce businesses continue to struggle with an acute lack of labor. Many blame the shortages on Georgia’s immigration policy, House Bill 87 (HB 87), which was signed into law—amidst much controversy—in May 2011.
The bill penalizes anyone who transports or harbors illegal immigrants in the state and requires all businesses with more than ten employees to use the federal E-Verify system to confirm worker eligibility. Although parts of HB 87 were temporarily enjoined as a result of the lawsuit brought by the American Civil Liberties Union and other organizations, the law has already caused major headaches for Georgia growers, who rely heavily on an immigrant workforce.
“You would think we’d have folks lined up at our door to get a good job, but there’s a shortage of good labor these days,” says Lineberger. Thanks to the widespread labor shortages, thousands of acres of onions, cotton, melons, and other crops were left to rot in Georgia fields. The Georgia Fruit and Vegetable Growers Association estimates that the state’s economy could lose close to $400 million and 3,200 jobs as a result of HB 87. According to some studies, Georgia farmers could suffer losses between $300 million on the low end and as high as $1 billion in losses due to the labor shortage.
Food Safety
After several high-profile fruit and vegetable outbreaks of E. coli and salmonella in recent years, food safety has become a hot topic for produce businesses in Georgia and across the United States and Canada. “Food safety and traceability is priority number-one for Coosemans,” says Young.
The Food Safety Modernization Act (FSMA), passed by Congress in 2010 and signed into law by President Obama in January 2011, represents the most sweeping reform of the nation’s food safety laws in more than 70 years. Though the Act’s goal of ensuring a safe food supply by shifting the focus from contamination response to prevention is accepted and applauded by most in the industry from grower-shippers and wholesalers to retailers and trade associations, how to actually implement and fund these measures remain major obstacles.
In the meantime, as the Food and Drug Administration reviews comments to its first salvo in the food safety war, many buyers and sellers believe the new regulations will be a costly nightmare—especially for small growers and businesses without a current food safety control or traceability program already in place.
These concerns are echoed throughout the Atlanta Market and far beyond Georgia. “Food safety is a big issue these days,” says Lineberger. “We’re in line with it, but it is a challenge for everybody in the business—whether it’s in Georgia or anywhere.”
Lewis says the new regulations have proven to be a major challenge for Hatcher Produce, a relatively small business. “We didn’t have a lot of the food safety standards or a recall program in place, so we had to do all that last year,” she says. “We had to get the computers and software to have the ability to handle traceability, train our employees, put sanitation programs into place, pay for certificates…and it ended up costing us a lot of money.”
Looking to the Future
Although Atlanta produce businesses face plenty of obstacles, most are extremely enthusiastic about the future. Fueling this optimism is the promise that the Atlanta State Farmers Market will continue to improve and grow. “We’ve been heavily involved in a complete market analysis, trying to figure out which way we need to go in the next five, ten, or fifteen years,” says Thompson. A number of options are being considered, with some finalization due during the year.
“We’ve got a great market, and we’re going to build it to be even bigger and better,” Thompson enthuses. “I think the future is bright.”
