With all this growing, for some, labor remains an obstacle. Last year, shortages were highlighted as a key challenge by many in the Georgia produce industry. Shuman notes, “We did not feel the effects of labor shortages this year, though it remains an issue of concern to the industry.”
“We haven’t felt the labor shortages here at Nickey Gregory,” agrees Scott. “In Atlanta, there are plenty of labor options.” He notes, however, this may not be the case throughout the state. “As for farmers, that may be a different story.”
Thornton concurs, noting there aren’t shortages around the market, but for some jobs there is an “issue trying to find people who are qualified.” This is more of an industrywide problem for produce companies, as many tend to struggle when recruiting young talent to the business.
Food Safety
Another challenge for a produce gateway like Georgia is the role of food safety regulations. This can be particularly vexing when it comes to imports and the U.S. Food and Drug Administration’s increasingly stringent requirements, prompted by the Food Safety Modernization Act. A number of proposed rules are under review, with various implementation timelines coming up.
“The United States has stricter food safety and import guidelines for other countries,” Scott says, noting, “importers must be sure they’re bringing in high quality and up-to-code product or they may face serious consequences.”
Many exporters are embracing the changes, however, due to the surging demand for year-round fresh produce, and consumers looking to expand their palettes with exotic fruits and vegetables from other countries. Georgia’s ports and inland waterways are busy and doing well, employing 350,000 and contributing nearly $67 billion to the state’s annual economy. With plans underway for the Savannah Harbor’s expansion, Georgia will become an even bigger player in international trade.
WRAP UP
Broadly, 2015 should finish as a banner year for Georgia’s growers-shippers, wholesalers, and retailers. Exports of the Peach State’s agricultural output, including its famous peaches, blueberries, and Vidalia onions, are up and analysts believe they will continue to climb.
It’s more than macro trends that matter, however. Thornton knows that to keep business strong, keeping customers happy is essential to short- and long-term success. “It all both short- and long-term boils down to customer service—you’ve got to keep people coming back and helping to bring new customers in by word of mouth.”
Yes, the Peach State has promising pro-spects with lower gas prices shaving transportation costs, climbing demand for fruits, nuts, and vegetables, and hope-fully, moderate weather. But as everyone in the perishables industry knows and Scott quips, “each year is different when Mother Nature is involved!”
Although Georgia is commonly called the Peach State, its agricultural prowess extends far beyond this tasty fruit.
Yes, peaches remain a top commodity in the state, but Georgia represents far more than succulent peaches and sweet onions; it has become a major hub for the southeastern produce industry.
Part of the appeal is the Atlanta State Farmers Market, where growers, distributors, processors, and retailers gather to buy and sell. Georgia’s fertile acres attracted settlers long ago, and centuries later, the state is one the nation’s top producers for several fruits and vegetables.
A FOUNDATION IN FRUIT
Long before Columbus sailed the ocean blue, Franciscan monks were introducing peaches to the coastal regions around St. Simons and Cumberland as early as 1571. The sweet, juicy fruit was then cultivated by Cherokee Indians and settlers alike, as Georgia became the thirteenth British colony.
As the years passed, Georgia peaches gained acclaim and made their way north, appearing on the New York market between 1858 and 1860. Of course, a great deal has changed since then—today, the Peach State boasts not only a major wholesale produce market in Forest Park, but numerous state-sponsored farmers’ markets—each with far more sophisticated distribution channels than the steamboats of the 1800s.
Agriculture has long been an important industry in Georgia, with the colony’s founder James Oglethorpe asking Native Americans for advice on growing in the region right from the start. Colonists even hired a botanist and established an experimental garden—the first of its type in America. Today, research remains an important aspect of Georgia’s produce industry with the University of Georgia’s extension campuses actively engaged in protecting crops and developing new cultivars.
THE MARKETS
Georgia agriculture brings more than $72 billion to the state’s coffers each year, and much of this value is generated by its famous peaches, Vidalia onions, and blueberries grown on predominately family-owned and operated farms. Many of these growers send their harvests to a number of state-sponsored farmers’ markets to meet local and regional demand. Most of these markets handle a combination of wholesale and retail sales, offering buyers a wealth of fresh produce to choose from.
Run by the Georgia Department of Agriculture, the farmers’ markets are located in Atlanta, Augusta, Cairo, Cordele, Columbus, Macon, Moultrie, Savannah, Thomasville, and Valdosta. Two of these markets are seasonal (Cordele and Macon), but all serve as regional hubs for the quick and effective distribution of the many products grown, shipped, and distributed throughout Georgia and beyond.
The Atlanta State Farmers Market, a gem for produce lovers, sits on 160 acres, is occupied by 54 wholesale and retail vendors, and is open seven days a week to everyone. In addition to the merchants, there is also a welcome center, restaurant, and community garden. Part of the attraction of being open to the public is the opportunity to sponsor events. Multiple Georgia state farmers’ markets have hosted grower showcases, connecting consumers to growers of the many available fruits and vegetables and building stronger relationships between the community and market. Such events often include fun for the whole family with everything from watermelon seed spitting competitions to wine tastings.
In addition to hosting occasions, the state’s network of farmers’ markets is filled with a broad range of vendors. “There’s a great advantage to the many different produce companies on this market,” comments Andrew Scott, director of marketing and business development for Nickey Gregory Company, LLC. “We all trade back and forth with one another and if we’re sold out of an item, we can call around on the Market to source it. From Hispanic items to specialties to mushrooms and fruits and veggies, the Atlanta Market has a variety to choose from.”
Currently, Nickey Gregory, which has its own transportation arm at the market and a branch in Miami, is expanding its warehouse to create over 100,000 square feet of refrigeration space, which will help assuage concerns about perishability during heat spells. “Weather temperatures have been above normal lately here in Georgia,” Scott says, “affecting shelf life and quality of product.”
TOP COMMODITIES
Georgia is split into five distinct regions with varying climates: the Coastal Plain, Piedmont, Blue Ridge, Ridge and Valley, and Plateau. And while much of the state’s prime land is devoted to non-produce items, Georgia’s distinctive peaches, Vidalia onions, and other crops thrive in the state’s mild climate, allowing growers to plant and harvest with both spring and fall plantings.
Vegetables, for both fresh consumption and processing, ring up sales of more than $2 billion annually and provide in excess of 16,000 jobs. Among the top vegetables grown and sold in Georgia are watermelon, bell peppers, sweet corn, cucumbers, eggplant, squash, cabbage, cantaloupe, tomatoes, beans, and zucchini. Of course, onions are also part of the list, most notably the famous Vidalia sweet onions.
Versatile Vidalias
Vidalias, which are trademark protected, can only be grown in southern Georgia. Production is in and around the town of Vidalia and limited by law to just 20 counties: Emanuel, Candler, Treutlen, Bulloch, Wheeler, Montgomery, Evans, Tattnall, Toombs, Telfair, Jeff Davis, Appling, and Bacon, and portions of 7 other counties. This unique vegetable is always hand-planted and harvested and can only be sold during a limited marketing season, as mandated by the Georgia Agriculture Commission and set forth by the Vidalia Onion Act of 1986.
John Shuman, president and director of sales at Shuman Produce, Inc., explains the special circumstances behind the state’s famous Vidalia onions. “The sandy soils and climate in the area allow sulfur to wash through the fields,” he notes, which influences the sweet flavor of the Vidalias. This ‘sweetness’ has won over even non-onion lovers and added to the vegetable’s versatility.
Adding to their exclusivity, Vidalia seeds undergo an intense approval process at the University of Georgia which lasts multiple years and is very competitive—only about 20 varieties gain approval annually. The Vidalia Onion Committee estimates there are 100 registered growers who plant 12,000 acres of Vidalias, with 80,000 seedlings per acre. In Georgia, the committee estimates roughly 2 million 40-pound boxes are produced each year.
MAJOR PRODUCE MARKETS
Atlanta Farmers Market
16 Forest Parkway, Forest Park, GA 30297
Contact: Paul Thompson, manager
Phone: (404) 675-1782
Fax: (404) 362-4564
Valdosta Farmers Market (seasonal)
1500 South Patterson Street, Valdosta, Georgia 31601
Contact: Tom Lawson
Phone: (229) 225-4072
Although Georgia is the only region to grow Vidalia sweet onions, Texas, California, New Mexico, Peru, and Mexico also provide sweet onions. These are not seen as competition, as they are mostly produced during the off season. “Peruvian sweet onion imports are similar in shape and flavor profile,” confirms Shuman, “and meet consumer demand during the fall and winter months while Vidalias are out of season.” More importantly, in his view, “I believe imports have helped the sweet onion category and allowed retailers to build a year-round program to increase ring at the register all year long.”
Imports can also be a blessing if Mother Nature lobs a few curve balls at sweet onion growers. “Weather had an effect on the Vidalia industry this year,” Shuman admits. “Rain caused some quality issues early in the season in April, and contributed to additional concerns with the storage crop in June and July.”
All in all, though, this year’s sweet onion crop has been a good one. “When you consider that a region so small produces a sweet onion so famous and available throughout the country,” Shuman enthuses, “that makes the Vidalia onion a pretty special product.” Basically, what it comes down to is simple: taste—and this is confirmed year after year by the sweet onion’s devoted fans.
Fabulous Fruit
Fruits and nuts are also significant contributors to the Georgia economy, bringing in over $2 billion and supporting over 18,900 jobs. Though the item array is less diverse than vegetables, it is no less impressive. Top fruits include blueberries, peaches, apples, strawberries, grapes, and blackberries, with pecans and peanuts representing nuts.
Blueberry and pecan production far outpace Georgia’s namesake peaches, with 42 and 43 percent of the state’s fruit and tree nut production respectively. Despite their modest share of the state’s fruit production, fresh Georgia peaches are still a favorite with more than 40 different commercial varieties, grown mostly in the middle of the state.
Georgia peaches are only available for 16 weeks a year and over 2.6 million cartons are produced annually. The fruit benefits from tailor-made marketing campaigns such as the “Georgia in July” retail program, which plays on the peaches’ taste and reliability to boost produce sales.
Turning to another mainstay, the state’s second most important fruit by is the blueberry.
Over the past five years, blueberry production has soared in Georgia with state agriculture analysts predicting it won’t be long before blueberries outpace pecans in the fruit and nut category. Georgia now earns more than $300 million annually from blueberry production, with increases expected to continue for the next several years.
Lastly, although Georgia isn’t well known for its wine, the state does lead the nation in the production of muscadine grapes. Muscadines were originally a wild variety found by Sir Walter Raleigh in 1584, but today there are a number of cultivars used for juices, jams, jellies, syrups, and wine.
KEEPING IT CLOSE TO HOME
As in many other states, the locally grown movement is going strong—and why wouldn’t it with homegrown darlings like peaches, blueberries, and Vidalia onions? Georgia Grown, the state’s marketing and economic development program, continues to gain momentum with many events and activities to connect the state’s produce industry to residents. Events include everything from book launches to cooking demonstrations with seasonal recipes.
Georgia’s Commissioner of Agriculture Gary Black has been a big supporter of the Georgia Grown movement; and Bryan Thornton, general manager of Coosemans Atlanta, Inc., appreciates Black’s influence. “The inception of Gary Black has helped the industry, just letting people know about and using ‘Georgia Grown’ to connect people has been instrumental in growth.”
Looking specifically at the case of Vidalia onions, local demand is traditionally high, and Shuman Produce uses Georgia’s unique connection to the sweet onions to sell the product. “This past season, we went to market with the story of this one-of-a-kind onion,” Shuman says, explaining how the history and people behind planting and harvesting Vidalias were the basis of the company’s ‘How to Speak Southern’ marketing campaign. The campaign included video content, social media engagement, educational resources, in-store programs, distinctive point-of-sale displays, and even seasonal recipes.
While the locally grown movement’s top benefit is connecting consumers with the industry, so is charity work. For Shuman, giving back to the community has been an important aspect of his business, which led to Shuman Produce’s 13-year involvement with Produce for Kids.
“We started with a single retailer and only a handful of partner sponsors,” Shuman explains. “It’s evolved from a single annual campaign to a philanthropically based year-round resource,” he says, uniting the produce industry to not only educate consumers about healthy eating, but also in raising funds for children’s charities throughout the year. “I’m humbled by the success of Produce for Kids, and grateful to both our retail partners and the produce industry for supporting the program.”
RECENT CHALLENGES
Although Georgia’s produce industry is expected to grow from last year’s values, as is the state’s gross domestic product, the past year has brought a number of challenges old and new—ranging from food safety to heat waves to a lack of qualified help. Although Georgia was blessed with a mild spring full of rain and sunshine, not all the weather was beneficial.
Thornton, for one, takes the weather in stride, noting it did not impact sourcing as much as it could have. “We can jump around from different growing regions,” he says. “We’ve faced weather issues in the past, so we’ve become accustomed to adversity in the supply chain.”
Helping Hands: Labor
According to U.S. Department of Agriculture (USDA), Georgia ranks first in national production for blueberries and spring season onions; second in cucumbers; third in peaches, sweet corn, and watermelon; and fourth in bell peppers, cantaloupe, and snap peas. The state is also the national production leader in peanuts and pecans.
With all this growing, for some, labor remains an obstacle. Last year, shortages were highlighted as a key challenge by many in the Georgia produce industry. Shuman notes, “We did not feel the effects of labor shortages this year, though it remains an issue of concern to the industry.”
“We haven’t felt the labor shortages here at Nickey Gregory,” agrees Scott. “In Atlanta, there are plenty of labor options.” He notes, however, this may not be the case throughout the state. “As for farmers, that may be a different story.”
Thornton concurs, noting there aren’t shortages around the market, but for some jobs there is an “issue trying to find people who are qualified.” This is more of an industrywide problem for produce companies, as many tend to struggle when recruiting young talent to the business.
Food Safety
Another challenge for a produce gateway like Georgia is the role of food safety regulations. This can be particularly vexing when it comes to imports and the U.S. Food and Drug Administration’s increasingly stringent requirements, prompted by the Food Safety Modernization Act. A number of proposed rules are under review, with various implementation timelines coming up.
“The United States has stricter food safety and import guidelines for other countries,” Scott says, noting, “importers must be sure they’re bringing in high quality and up-to-code product or they may face serious consequences.”
Many exporters are embracing the changes, however, due to the surging demand for year-round fresh produce, and consumers looking to expand their palettes with exotic fruits and vegetables from other countries. Georgia’s ports and inland waterways are busy and doing well, employing 350,000 and contributing nearly $67 billion to the state’s annual economy. With plans underway for the Savannah Harbor’s expansion, Georgia will become an even bigger player in international trade.
WRAP UP
Broadly, 2015 should finish as a banner year for Georgia’s growers-shippers, wholesalers, and retailers. Exports of the Peach State’s agricultural output, including its famous peaches, blueberries, and Vidalia onions, are up and analysts believe they will continue to climb.
It’s more than macro trends that matter, however. Thornton knows that to keep business strong, keeping customers happy is essential to short- and long-term success. “It all both short- and long-term boils down to customer service—you’ve got to keep people coming back and helping to bring new customers in by word of mouth.”
Yes, the Peach State has promising pro-spects with lower gas prices shaving transportation costs, climbing demand for fruits, nuts, and vegetables, and hope-fully, moderate weather. But as everyone in the perishables industry knows and Scott quips, “each year is different when Mother Nature is involved!”
