Sunshine, beaches, mountains, valleys—the Golden State is a land of plenty, but its beauty belies a number of mounting challenges. “California is a critical piece in the production of fruits and vegetables,” says Kathy Means, vice president of industry relations at the Produce Marketing Association. “If something happens to California, it happens to all of us.”
You’ve done business in California for years—but how much do you really know about the state’s agriculture? How bad is the drought? What’s the status of the Medfly and other pests? What about ports, retailers, and restaurants? We talked to experts throughout California’s produce supply chain to answer these questions and more. Take our quiz and celebrate your knowledge…or, catch up on what’s happening in the Golden State’s fresh fruit and vegetable trade.
THE WATER SITUATION: According to the final California Department of Water Resources snow survey report back on May 1, the state’s snowpack in the northern Sierra Nevada Mountains was recorded at only 7 percent of normal. True: News on California water did not get better this year, despite many wishes to the contrary. The U.S. Department of Agriculture (USDA) declared 54 drought-ridden California counties as natural disaster areas. In March of this year, California’s Governor Jerry Brown signed a $687 million relief package calling the drought “the worst in the state’s modern history” according to Reuters.
Loretta Yim, sales coordinator at L.A.-based Yes Produce agrees water is a big issue right now, but she sees little resolution. “We’re trying not to use too much water, but in the produce industry,” she emphasizes, “we need to use so much on a daily basis—and we have no control of the weather.”
“This is very serious,” comments Means. “Growers are making choices about where they put their water, and they’re going to go with areas that have the highest investments—(like) groves.”
Even within groves, some tough decisions are being made. Chris Ford, vice president of San Diego-based Sutherland Produce Sales, Inc., says he has even seen growers decide to divert water to younger trees and perhaps abandon older ones. It’s important to manage water tables by monitoring wells and groundwater, because, he notes, “It’s less and less reliable to have rainfall to fill up the aquifers.”
Sunshine, beaches, mountains, valleys—the Golden State is a land of plenty, but its beauty belies a number of mounting challenges. “California is a critical piece in the production of fruits and vegetables,” says Kathy Means, vice president of industry relations at the Produce Marketing Association. “If something happens to California, it happens to all of us.”
You’ve done business in California for years—but how much do you really know about the state’s agriculture? How bad is the drought? What’s the status of the Medfly and other pests? What about ports, retailers, and restaurants? We talked to experts throughout California’s produce supply chain to answer these questions and more. Take our quiz and celebrate your knowledge…or, catch up on what’s happening in the Golden State’s fresh fruit and vegetable trade.
THE WATER SITUATION: According to the final California Department of Water Resources snow survey report back on May 1, the state’s snowpack in the northern Sierra Nevada Mountains was recorded at only 7 percent of normal. True: News on California water did not get better this year, despite many wishes to the contrary. The U.S. Department of Agriculture (USDA) declared 54 drought-ridden California counties as natural disaster areas. In March of this year, California’s Governor Jerry Brown signed a $687 million relief package calling the drought “the worst in the state’s modern history” according to Reuters.
Loretta Yim, sales coordinator at L.A.-based Yes Produce agrees water is a big issue right now, but she sees little resolution. “We’re trying not to use too much water, but in the produce industry,” she emphasizes, “we need to use so much on a daily basis—and we have no control of the weather.”
“This is very serious,” comments Means. “Growers are making choices about where they put their water, and they’re going to go with areas that have the highest investments—(like) groves.”
Even within groves, some tough decisions are being made. Chris Ford, vice president of San Diego-based Sutherland Produce Sales, Inc., says he has even seen growers decide to divert water to younger trees and perhaps abandon older ones. It’s important to manage water tables by monitoring wells and groundwater, because, he notes, “It’s less and less reliable to have rainfall to fill up the aquifers.”
Bob Borda, vice president of marketing at Grimmway Farms in Bakersfield, says they are well positioned to get through the drought this season, owning farmland located in several different California growing areas with surface water opportunities. “We have been actively evaluating our groundwater assets and securing additional surface supplies when necessary. If the drought continues in future years, we will continue to evaluate the growing environment, adjusting our practices when necessary.” He added that Grimmway is always looking for ways to conserve water. “We’re increasing the usage of drip tape where applicable, and continuing to convert our traditional aluminum irrigation pipe to more efficient Yelomine PVC pipe that reduces leakage.”
Gilroy-based garlic grower Christopher Ranch also uses drip irrigation to reduce water usage and waste. Patsy Ross, director of marketing for Christopher Ranch, confirms the grower is continually looking for more efficient ways to irrigate. “We’re also working very closely with our farmers that currently have access to water. Things are stable for this year’s crop.”
From an avocado perspective, Rob Wedin, vice president of fresh sales and marketing for Santa Paula-based Calavo Growers, Inc., says “the future depends very heavily on next winter” and the amount of snow received. He explained that although there are many productive avocado groves in the state, “there are also growers who have been on edge for a while. Having a poor winter next year would drive them that much further to calling it quits.”
Bob Rinker, managing partner of Fresh Link Group, LLC in Bakersfield says some of the problem is caused by the inability to move water from the wetter north to the drier south. “The San Francisco Bay delta has a lot of water going out to sea that could be recovered,” he says, citing an idea proposed by Governor Brown (the Bay Delta Conservation Plan) to build a tunnel under the delta that would allow water to flow underneath it.
But, Rinker explains, neither the funding nor necessary political support for the project is there. “Barring construction of a delivery system, I think we need to increase our storage capability throughout the state. We’re still going to have droughts, but it will help the problem.”
Karl Kolb, Ph.D, chief science officer at the High Sierra Group in Wisconsin comments, “We need to determine answers, not just fixes. People forget that California is desert for the most part. I don’t know what the answer is, but it has to be a lot of things at once—it’s not one thing.”
HEALTHY EATING OUT: According to the National Restaurant Association, California was ranked 10th in the nation for projected restaurant sales growth in 2014. False: California was ranked first for growth in 2014, due in large part to more healthy menus including fresh produce. The National Restaurant Association reports the state was host to just under 64,000 eating and drinking establishments in 2012, with nearly $70 billion in sales projected for 2014.
As with any business, some items are particularly trendy. According to Angie Pappas, spokesperson for the California Restaurant Association, “kale is everywhere. People can’t get enough of it,” she enthused. Other trending vegetables included heirloom varieties of tomatoes, radishes, and even beets—yes, beets—which are available in different colors like the pink and white ‘watermelon beet.’ “They’re popular, and not just in fine dining anymore—casual places and at small places too.”
“I think people are coming around to the idea that you can have both taste and health,” Pappas says. “It wasn’t that long ago, vegetable options were boiled or steamed, and that was it.”
Pappas finds the symbiotic relationship between chefs and area growers has inspired chefs and cuisine, to the benefit of both as well as consumers. “There’s been a huge shift even in the last two or three years in terms of people seeking out local, natural, sustainable foods.”
INNOVATIVE RETAIL: Whole Foods Market has not only increased its presence in the Los Angeles area, and Northern California in general, but offers customers home-delivery service. True: While grocery delivery services are available in California, the concept has yet to become commonplace. “Folks are trying new things,” Means confirms, but says, “some are catching on, some may not.” Fresh produce, however, is on an upward swing. “Produce is hot,” she emphasizes. “Produce is profitable and folks want to get on the bandwagon.” At the same time, she notes, “Technology is changing and consumers are changing how they want to receive things. I think it’s going to continue to have an impact.”
Jeff Oberman, vice president of trade relations at Washington DC-based United Fresh Produce Association, says there has been a great deal of talk about online delivery involving retailers like Fresh Direct, Peapod, Amazon, and Whole Foods. “What we’re seeing is that consumer demand is driving online success. Consumers want this option; retailers are either in this now or looking at the possibility.”
But Oberman cautions the demand represents just a portion of the industry. “Online is growing, but I really think the independents are strong in California.”
Carissa Mace, president of the Fresh Produce & Floral Council in La Mirada, agrees, saying, “The strongest markets are the independents and their niche markets. Ethnic communities aren’t going to be affected by e-produce deliveries.
You have large ethnic grocery chains, and they buy a ton of produce per store, even more than major chains do. They tailor themselves to buying for their particular communities: Hispanic, Korean, etc., while major chains are buying the same stuff across the board.”
Mace believes most customers of independent chains prefer to pick out their own produce, not order from a photo online. In response, the stores came up with their own innovative service for this market: “They have shuttle services where they pick up people who can’t get to their stores,” she explains. “These are not people who are going to buy produce off the Internet.”
GRAPE DEMAND: California table and wine grape growers hit record-high production levels in 2013. True: California grape production is indeed booming, and Means credits the grape industry with engineering its own success. “Grapes in general are one of the most popular fruits,” she affirms. “The grape industry has done a great job with new varieties and varieties that extend the season.”
The outlook for the future is just as optimistic, according to Barry Bedwell, CEO and president of the California Grape and Tree Fruit League. “I think the initial estimates look for a crop that is very comparable to last year,” he observes, adding that the grape season started early this year in the San Joaquin Valley rather than in the first week in July as usual. “The early start to the season is consistent with the level of optimism we’ve seen in recent years.”
Bedwell estimates about 117 million boxes of grapes are produced each year from California growers and credits the tenacity and skills of the state’s family-owned and operated farms. “Quality demands are such that people don’t go in and out of the market; you’re committed to it 100 percent or not at all,” he says. “Growers who grow table grapes have diminished, but these family operations are more committed than ever.”
PESTS AND PRODUCE: A Mediterranean fruit fly infestation was recently discovered in Monterey County. False: In reality, the ‘Medfly’ is less of a worry as the industry finds new and better ways to combat the tiny pest. “We have a system for early detection and treatment,” Bedwell explains.
Bob Blakely, director of industry relations for California Citrus Mutual in Exeter, agrees, stating “the Medfly is not a huge problem. It will show up periodically—sometimes almost every year. We can usually control it with biological measures; we release sterile flies and it breeds itself out of existence.”
The bigger bully on the block is the infamous Asian citrus psyllid, which carries Huanglongbing or citrus greening disease. “The Medfly is so last century,” Means asserts.
Indeed, the bulk of USDA pest and disease funding is directed at fighting citrus greening. “This is one of the most visible and devastating threats to the citrus industry. Florida is in the middle of it, California is on the cusp.”
“Asian citrus psyllid is a huge concern,” Blakely concurs, and says it is partly due to the latency period. “From the time the tree is infected, it shows up three to five years later. By that time, if there are psyllids in the area, they continue to spread it before we even identify the tree.”
The psyllid is not as big of a problem in drier parts of the state according to Sutherland Produce’s Ford. “Our fruit primarily comes from the desert at this point, so right now it hasn’t been an issue for us. Dry climate foils the psyllid, but no zone is completely safe from it,” he says.
The current solution, Blakely posits, is to spray for the bugs. “We have products we’re using for other pests that also control psyllids. We’ve also begun organizing area-wide psyllid treatment programs where we organize the growers into small groups in a geographic area, and ask them to communicate with each other and coordinate their sprays at the same time. This prevents psyllids from just moving from grove to grove, gives a much better chance of impacting overall populations, and reducing total numbers.” Further, Blakely says there are some effective predators, such as the Tamarixia radiate, a tiny wasp, which “is being released in urban areas of Southern California.”
PEST MANAGEMENT: California has seen a sharp decline in the use of biopesticides. False: According to Blakely, “California has a very aggressive integrated pest management (IPM) program.” The state uses a combination of predators and insecticides to minimize the number of sprays and chemicals applied to trees, particularly citrus. “California citrus growers only spray a fraction of the time that they do in Texas and Florida,” Blakely notes, partly due to climate differences.
Means says biopesticides have certainly been successful, but stresses that traditional pesticides have also become better in recent years. “Companies continue to develop new pesticides that go in, hit the target, and disintegrate into nothing,” she explains.
Kolb mentions that there are also growers who subscribe to organic agricultural practices and requirements, but are still conventional on paper. “They’re about as organic as an organic grower, but just lack the verification,” he says. “Natural forms of pesticides are on the rise. It’s 95 percent consumer-driven. The public wants to know how their food is grown,” he explains, “and more about pathogens. They want to know about the certification of food plants and farms.”
PROSPERING PORT: The Port of Long Beach is the third busiest port in North America. False: According to the most recent figures we could find, Long Beach has leapt ahead of New York/New Jersey to become North America’s second busiest port. Tonnage grew by over 11 percent from 2012 to 2013, putting Long Beach a smidge under reigning champ Los Angeles.
With such an enormous coastline, it’s no surprise that California is home to an abundance of harbors and ports, and up-and-comer Long Beach is not only one of the busiest, but possibly the greenest. The port was named the “Best Green Seaport” in the world in June of this year at the Asian Freight and Supply Chain Awards in China.
Long Beach, which calls itself “The Green Port,” has been committed to eco-friendly policies for almost a decade, including the reduction of fuel emissions and lowering its carbon footprint. This is no small accomplishment for a port that handles $155 billion in trade each year.
But the size and scope of the port also provides an opportunity to make a big impact, and recent news points to even more sustainable measures, such as providing electricity for docked ships to cut down on the use of diesel during loading and unloading. By the end of this year, the port plans to have “at least one berth at every container terminal” outfitted with shore power.
SUSTAINABILITY: “Californians Don’t Waste” is a new public service campaign about the state’s ban on plastic bags. False: While California has indeed banned plastic bags, “Californians Don’t Waste” is aimed at raising consumer awareness of saving water and living by more sustainable practices. This laudable goal is a theme throughout the state both for consumers and the produce industry.
“Sustainability, husbanding resources, and being efficient in their use is sort of topmost on consumers’, producers’, and retailers’ minds,” according to Rinker. “Sustainability is not something new, and innovation is always in play.”
Wedin agrees, citing the example of one large grower’s solar fields. “They’ve become independent in the cost of running their citrus house or pumping water,” he comments. At Calavo, waste reducing measures include better warehouse efficiency, “reducing the amount of forklifts and trucks by hauling higher payloads” and harnessing energy.
By tapping into the energy given off from one process and using it for another, the company can save both energy and money. “We use heat in our ripening process; we ripen everything at 70 degrees and then store it and ship it at around 38 degrees. We capture the heat from the cooling equipment from the rooms that we’re cooling, and use it to heat the rooms down the hall,” Wedin explains.
THE COST OF LABOR: California raised the minimum wage in 2014 by 50¢ per hour. False: California raised its minimum wage $1 per hour in 2014 and will increase it another $1 per hour in 2016. Wendy Fink-Weber, senior director of communications for Western Growers Association, says these changes will increase costs for growers who can’t necessarily pass the pain on to buyers, especially for labor-intensive crops like berries, since the “cost of labor is as much as 40 to 50 percent of the total cost.”
As a result, she says this may push struggling growers to source more product from outside California. “Some growers do go to Yuma, Mexico,” she explains, while others will “expand more of their business to Peru, Chile, even Europe.”
As always, there are complications as new minimum wage laws are passed not just at the state level, but also down to the county and municipal levels. Fink-Weber characterizes the ‘patchwork’ of local, state, and even federal wage levels as especially complicated “for growers who operate in multiple counties,” adding they have seen individuals “working in two local areas at different wage rates.”
Pappas calls the new law “a huge concern” for the California restaurant industry, as labor generally accounts for a third of most eateries’ operating budget. “It’s something we’re working on every day; initiatives and proposals are popping up all over the place,” she says, but warns few businesses will be able to “absorb such a huge increase.”
Rinker is less worried about this increase in terms of produce pickers. “I think there’s a distinction there in terms of California agriculture,” he says. “You have minimum wage as a floor, but a lot of production is incentive-based. People working in the industry have an opportunity to earn more than minimum wage. Given that’s already there, I don’t know if this increase will affect production agriculture so much as it might affect students finding part-time work in the fast food industry.”
RESULTS AND REFLECTION
So, how did you do? If you got all the questions correct, congratulations! If you learned something new, even better. Produce represents a vast portion of the Golden State’s claim to fame. However you might choose to characterize California’s verdant fields of plenty, as ‘America’s Salad Bowl’ or the world’s top producer of grapes, the state’s suppliers are always innovating to better serve the industry and the many businesses it supports on a local, national, and worldwide basis.
