Organic Grows Incrementally
Organics receive mixed reviews. Some merchants are seeing more sales, others not. Overall, the trend of rising organic purchases by consumers continues, though slower than anticipated some years back. On the wholesale end, as the price spread between organic and conventional narrows, there should be more volume.
“I don’t deal too much with organics,” DiMaggio admits. “Everybody loves the idea, it’s just hard to find customers who are willing to pay for it. As soon as you say conventional is $1.00 and organic is $1.50, they go for conventional. In time, as the price gap closes, more and more people will be willing to buy organic.”
“The price gap is starting to close, and that is creating more demand for organics,” says Andreani. “And the demand is increasing because of education and publicity for organics.”
For wholesalers at Hunts Point, organics still don’t make as much sense as conventional. “I don’t really see much organic here,” observes Hunt. In his opinion, “It’s a matter of money and quality. The weights and shelf life aren’t quite as good as conventional items.”
Freight in Flux
Despite lower fuel prices, the freight market is not smooth sailing for all carriers and brokers. There are still challenges with time behind the wheel, electronic loggers, speed inhibitors, and several other over-the-road issues. Add in the shortage of drivers and reefers, and shipping perishables remains a tricky maneuver.
