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Detroit Duality

Local or global, staple or specialty, two markets meet demand
Detroit Duality

Detroit’s flag carries two women and two Latin mottos: Speramus meliora and Resurget cineribus, translated as “We hope for better things,” and “It will rise from the ashes.” These powerful lines were written by Gabriel Richard after the city burned to the ground in 1805. Though it’s been more than a century since that devastating fire, the twin mottos remain surprisingly fitting today.

Seemingly immune to the Motor City’s economic struggles, the city’s two famous markets—the Detroit Produce Terminal and the Eastern Market—have continued to thrive even in the bleakest days of Detroit’s recession.

A Powerful Duo
For decades, the Detroit Produce Terminal and the Eastern Market have been fundamental to the success of Michigan’s produce industry. Although outsiders often assume the two markets are competitors, local produce professionals say this isn’t the case. “The two markets cooperate more than compete,” Daniel S. Carmody president of the Eastern Market in downtown Detroit, explains. 

“The Eastern Market is a mixed use commercial district with a majority of food processing and distribution businesses, but with a growing number of food retailers, restaurants, and nonfood retailing,” Carmody says. “It is more of a niche market featuring Michigan, Ontario, and Ohio growers during the local season (June through November) while the Detroit Produce Terminal operates year round with product from global suppliers.”

“There’s never really been a rivalry there,” agrees Dominic Russo, in buying and sales management with Rocky Produce, Inc., a distributor on the Detroit Produce Terminal. Rather, it seems there is camaraderie and a bit of sentimentality according to Nate Stone, general manager and COO of Ben B. Schwartz & Sons, Inc., at the Detroit Produce Terminal: “This terminal is so old, probably the primary advantage is the familiarity to the owners, the people who work here, and the sense of history you get when you walk down the halls,” he comments. “It’s more of a nostalgia thing.”

A Bevy of Benefits
Because Detroit is home to a booming independent food retailer scene, wholesalers on the markets reap the advantages. “We have a high volume of fruits and vegetables that go to the independents,” Russo says. “It’s really interesting to see the quality and different products that come in and out of the terminal.” Though he’s been in the business for many years, he still says, “It’s impressive.”

The Eastern Market also enjoys a favorable location. “We have a strong cluster of food businesses, with 120 around the market and more than 200 under the market sheds, and have developed a strong eco-system to support the incubation and acceleration of food businesses,” Carmody says. He adds that the market also benefits from the diversity of crops grown in Michigan and nearby Southwest Ontario.

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Detroit’s flag carries two women and two Latin mottos: Speramus meliora and Resurget cineribus, translated as “We hope for better things,” and “It will rise from the ashes.” These powerful lines were written by Gabriel Richard after the city burned to the ground in 1805. Though it’s been more than a century since that devastating fire, the twin mottos remain surprisingly fitting today.

Seemingly immune to the Motor City’s economic struggles, the city’s two famous markets—the Detroit Produce Terminal and the Eastern Market—have continued to thrive even in the bleakest days of Detroit’s recession.

A Powerful Duo
For decades, the Detroit Produce Terminal and the Eastern Market have been fundamental to the success of Michigan’s produce industry. Although outsiders often assume the two markets are competitors, local produce professionals say this isn’t the case. “The two markets cooperate more than compete,” Daniel S. Carmody president of the Eastern Market in downtown Detroit, explains. 

“The Eastern Market is a mixed use commercial district with a majority of food processing and distribution businesses, but with a growing number of food retailers, restaurants, and nonfood retailing,” Carmody says. “It is more of a niche market featuring Michigan, Ontario, and Ohio growers during the local season (June through November) while the Detroit Produce Terminal operates year round with product from global suppliers.”

“There’s never really been a rivalry there,” agrees Dominic Russo, in buying and sales management with Rocky Produce, Inc., a distributor on the Detroit Produce Terminal. Rather, it seems there is camaraderie and a bit of sentimentality according to Nate Stone, general manager and COO of Ben B. Schwartz & Sons, Inc., at the Detroit Produce Terminal: “This terminal is so old, probably the primary advantage is the familiarity to the owners, the people who work here, and the sense of history you get when you walk down the halls,” he comments. “It’s more of a nostalgia thing.”

A Bevy of Benefits
Because Detroit is home to a booming independent food retailer scene, wholesalers on the markets reap the advantages. “We have a high volume of fruits and vegetables that go to the independents,” Russo says. “It’s really interesting to see the quality and different products that come in and out of the terminal.” Though he’s been in the business for many years, he still says, “It’s impressive.”

The Eastern Market also enjoys a favorable location. “We have a strong cluster of food businesses, with 120 around the market and more than 200 under the market sheds, and have developed a strong eco-system to support the incubation and acceleration of food businesses,” Carmody says. He adds that the market also benefits from the diversity of crops grown in Michigan and nearby Southwest Ontario.

The Eastern Market is also reaping the benefits of some major upgrades. Shed 5, one of the major wholesale facilities, recently underwent an $8.5 million renovation. The makeover included a new “community kitchen” for food start-ups and the DTE Energy Plaza, a large patio where visitors can relax and enjoy a snack.

A few wholesalers at the terminal market are also considering future growth. “Here at Ben B., we’re bursting at the seams and planning for expansion,” Stone reveals. “Every square inch in the existing building is being used. People can say what they want about Detroit, but real estate at the Detroit Produce Terminal is definitely at a premium.”

MARKET STATS

Detroit Eastern Market
Founded in 1891; the largest historic market in the nation, spanning 4.5 acres. Features both retailers and wholesalers who sell more than 70,000 tons of fresh produce each year.
Location: 2934 Russell Street
Office Hours: Mon-Sat 8 am – 4 pm
Public Market Hours: Sat 6 am – 4 pm
President: Daniel S. Carmody
Contact: (313) 833-9300
www.detroiteasternmarket.com

Detroit Produce Terminal
Established in 1928; easy access to rail and ports of entry, including the Fort Street Cargo Facility, Detroit Service Port, and Detroit-Windsor Truck Ferry.

Location: 7201 W. Fort Street
Hours: 6 am to 8 pm, 7 days per week
Manager: Arthur McHardy
Contact: (313) 841-8700

Market Trends
Wholesalers on Detroit’s two markets have noticed that across the board, demand for fresh fruit and vegetables is on the rise. “I can’t think of a category that’s not growing,” Stone says. “Certainly exotics and tropicals are getting a lot of focus as well as organics. In general, there’s just more produce going through the system than ever.”

Part of the drive to eat healthy has pushed salads and slaws to the forefront, from standards like iceberg and romaine lettuce to broccoli and kale slaw mixes. “We don’t delve a whole lot into specialties,” Russo explains, “but I will say the lettuce market, for example, has become so diverse in what we offer and what our customers are looking for—it’s so many different types of pack styles, lettuces, salads mixes, and the big explosion with kale sales. So it’s been evolving, and it’s been a plus for us.”

Ethnic, Local & Organics
Considering Detroit’s incredibly diverse population, it’s no surprise demand for ethnic produce is mushrooming.

“Any wholesaler doing business in this general metropolitan area has noticed the Hispanic and Middle East populations growing,” Stone asserts. “We can’t get a pepper that’s hot enough. I’d say the pepper selection has grown along with every other Hispanic item, and there’s high demand for Middle Eastern preferences,” he says, adding, “The area’s ethnic diversity is a factor in what we buy and sell every day.” 

Locally grown produce continues to be in high demand at both Detroit markets, and is welcomed by the wholesalers. “We see the farmers who go to the market in the summer to sell to our independents, and we slow down a bit when the locals start to sell,” Russo admits. “But that’s great, because it gives local farmers a chance to sell their product.”

Given Michigan’s wide range of fruit and vegetables, there’s ample supply for growers and wholesalers. “We sell as much locally grown produce as we can,” Russo remarks. “We carry a full line of fruits and vegetables grown in Michigan, and we’ve had a lot of success.” Seasonal produce begins in June with zucchini and cucumbers and continues through the end of October with harvests of some types of squash (acorn, butternut, spaghetti, etc.), potatoes, and apples.

Urban growers in Detroit are bringing new meaning to the term “locally grown.” As part of this innovative movement, growers are taking over vacant lots across the city to plant and harvest fresh vegetables, fruit, and herbs.

“Urban growers increased from 80 in 2014 to more than 1,400 in 2014,” Carmody notes, adding that the Eastern Market continues to support the movement. “The largest 70 or 80 urban growers participate in a co-op that sells at our retail markets, and four urban growers have become vendors in the market.” While urban production is still relatively small, he believes some growers are moving from direct retail sales to wholesale, primarily selling to restaurants.

When it comes to organics, these particular items remain more of a niche market than a force to be reckoned with, at least for the time being. “I could say it’s been steady,” observes Stone. “With organics, even though some people in the general public are buying them, probably 80 percent of organic produce is consumed by a very small percentage of the population,” he points out. “The growth in organic is more in variety as opposed to volume.”

Greenhouse Vegetables
While locally-grown fruits and vegetables are seasonal and organics cost more, greenhouse-grown produce is always available to Detroit wholesalers. “Our proximity to indoor cultivation in Leamington, Ontario provides wholesalers with a year-round supply of key crops,” Carmody explains.

Detroit Retail

Based in Southwest Ontario (less than 40 miles from downtown Detroit), Leamington’s greenhouse industry has exploded in recent years. Ontario is home to nearly 2,550 acres of vegetable greenhouses, and more than 2,000 of those are based in the Leamington and Kingsville area. The industry expanded by about 150 acres in 2014 alone.

“Greenhouse has been a big growth area for us,” Russo observes. “Growers have really done a good job in the way of quality, producing better products and more volume.” And although demand for organics is not skyrocketing, there has been a slight uptick. “Organics are growing, but at a slow pace,” he confirms. “Rocky Produce sells organics, mostly berries and apples. If we’re already doing business with someone and they have an organic offering, we’ll bring it in and try to push it to retailers.”

Ongoing Obstacles
The Detroit markets have faced a number of challenges this year, from unfavorable weather to road construction issues. “When there’s tough weather patterns in growing areas, it’s a big challenge for us to get the volume we need,” Russo explains.

Much like 2014, the winter of 2015 was brutal with extreme cold and snow throughout the Great Lakes State. And on top of winter’s often subzero temperatures and cool spring, the Detroit markets were also dealing with traffic headaches. The city of Detroit has been working on a $24 million upgrade of streets and bridges in a project called Link Detroit. “This construction has caused detours and bottlenecks in the Eastern Market area,” Carmody recalls. “Fortunately, the worst is over, and the work in 2015 will be less of a nuisance than it was last year.”

While traffic and weather are certainly obstacles, Stone says the biggest issue for Ben B. Schwartz is time—but in a good way. “We’ve been so busy, we often run out of hours in the day,” he remarks. “No one’s complaining. The people who are selling produce are just as happy as the people who are buying and eating it.”

On the Horizon
As a whole, Detroit’s purveyors of produce look to the future and remain extremely hopeful. When asked if the challenges affecting Detroit’s fruit and vegetable industry differ from other markets, Stone says, “I don’t know that they do. I think people run their businesses differently, and that may be the only difference. Around the country, we’re all doing the same thing as effectively as possible: if you’re a good wholesaler, you’re a good wholesaler, no matter what city you’re in.”

For his part, Carmody believes the Eastern Market “will continue to evolve as one of the most comprehensive regional food hubs in the United States,” he predicts. “And together with the Detroit Product Terminal, we will develop a much more efficient terminal facility over the next five years.”

 Image: ©iStock.com/Cornelia Schaible/chelovek.

 

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