Despite Detroit’s past financial worries, its two terminal markets—the Detroit Produce Terminal and the Eastern Market—have remained relatively immune to economic turmoil. As the Motor City continues its revival, business keeps getting better and the markets are adapting to trends and shifting consumer demand.
Big-Time Benefits Since the early 1900s, the Detroit Produce Terminal and the Eastern Market have played a vital role in the produce industry across the Midwest. When it comes to serving retail and foodservice customers throughout the region, the two markets work as a partners more than rivals. “There’s a lot of trading that goes on between the markets,” confirms Dominic Russo, a buyer for Rocky Produce, Inc. at the Detroit Produce Terminal. “We have several customers that operate out of the Eastern Market. There’s great competition here, but there’s enough business for everybody.”
The strengthening economy has certainly helped, especially being just two years out from the Motor City’s well publicized bankruptcy. “The Detroit economy is improving, and it’s improving our business,” says George Horkey, owner of Roscoe & Horkey Farms, Inc., a grower, shipper and packer at the Eastern Market.
Nate Stone, general manager and COO for Ben B. Schwartz & Sons at the Detroit Produce Terminal, echoes this positivity. “Detroit is so far off the bottom, it’s going to take the rest of the world a little while to understand it,” he enthuses. “We’ve seen major improvement to the point where people are beginning to visit the city on a regular basis. We’re seeing new restaurants and new investments,” he notes. “It’s amazing how fast it’s happened.”
Dominic Riggio, president of Riggio Distribution Company at the Detroit Produce Terminal, says, “Looking at our numbers, we continue to see growth in categories and overall. There’s a lot going on with Detroit that is positive, especially in the downtown area with developments and new companies and businesses coming into town.”
There’s also that substantial trading partner nearby. “Our area is remarkable and probably underestimated by people unfamiliar with the geography,” adds Stone. “We’re just a bridge away from Canada, literally, which is a huge advantage.”
Top Trends Wholesalers on Detroit’s terminal markets have responded to various trends over the past year, most related to consumers making more healthful choices. Demand continues to climb for locally grown, organic, and ethnic choices, as well as greenhouse grown commodities and surprisingly, Brussel sprouts.
“Everybody is eating more produce,” says Stone, “and there are great items coming into the market—including a lot of exotics and tropical and ethnic foods.” This is backed up by a 2016 Institute of Food Technologists study, which found 78 percent of consumers were making a demonstrated effort to eat more fresh foods. Over the past decade, consumption of fresh foods grew by more than 20 percent; plus, shoppers were buying up to 10 percent more fresh ingredients than they were three years ago. For Stone, the trend has also fueled another benefit: “The business is fun all over again.”
Despite Detroit’s past financial worries, its two terminal markets—the Detroit Produce Terminal and the Eastern Market—have remained relatively immune to economic turmoil. As the Motor City continues its revival, business keeps getting better and the markets are adapting to trends and shifting consumer demand.
Big-Time Benefits Since the early 1900s, the Detroit Produce Terminal and the Eastern Market have played a vital role in the produce industry across the Midwest. When it comes to serving retail and foodservice customers throughout the region, the two markets work as a partners more than rivals. “There’s a lot of trading that goes on between the markets,” confirms Dominic Russo, a buyer for Rocky Produce, Inc. at the Detroit Produce Terminal. “We have several customers that operate out of the Eastern Market. There’s great competition here, but there’s enough business for everybody.”
The strengthening economy has certainly helped, especially being just two years out from the Motor City’s well publicized bankruptcy. “The Detroit economy is improving, and it’s improving our business,” says George Horkey, owner of Roscoe & Horkey Farms, Inc., a grower, shipper and packer at the Eastern Market.
Nate Stone, general manager and COO for Ben B. Schwartz & Sons at the Detroit Produce Terminal, echoes this positivity. “Detroit is so far off the bottom, it’s going to take the rest of the world a little while to understand it,” he enthuses. “We’ve seen major improvement to the point where people are beginning to visit the city on a regular basis. We’re seeing new restaurants and new investments,” he notes. “It’s amazing how fast it’s happened.”
Dominic Riggio, president of Riggio Distribution Company at the Detroit Produce Terminal, says, “Looking at our numbers, we continue to see growth in categories and overall. There’s a lot going on with Detroit that is positive, especially in the downtown area with developments and new companies and businesses coming into town.”
There’s also that substantial trading partner nearby. “Our area is remarkable and probably underestimated by people unfamiliar with the geography,” adds Stone. “We’re just a bridge away from Canada, literally, which is a huge advantage.”
Top Trends Wholesalers on Detroit’s terminal markets have responded to various trends over the past year, most related to consumers making more healthful choices. Demand continues to climb for locally grown, organic, and ethnic choices, as well as greenhouse grown commodities and surprisingly, Brussel sprouts.
“Everybody is eating more produce,” says Stone, “and there are great items coming into the market—including a lot of exotics and tropical and ethnic foods.” This is backed up by a 2016 Institute of Food Technologists study, which found 78 percent of consumers were making a demonstrated effort to eat more fresh foods. Over the past decade, consumption of fresh foods grew by more than 20 percent; plus, shoppers were buying up to 10 percent more fresh ingredients than they were three years ago. For Stone, the trend has also fueled another benefit: “The business is fun all over again.”
Locally grown, too, is particularly hot. “As a local packer, this trend fits us very well,” Riggio comments. “We’re doing more and more with local growers and local providers,” he says. “Not everything we pack is grown locally because we’re a year-round company, but we definitely take advantage of locally grown product in season.”
Regarding organics, it’s a mixed bag. Russo says the category is growing, but slowly, and accounts for less than 10 percent of Rocky Produce’s product line. Riggio describes the demand as “growth spurts, then every few years it levels off.” But since there are now more organic growers (including more than 400 in Michigan alone), this “has helped bring prices down and the quality and availability up,” Riggio notes.
There’s also ongoing high demand for ethnic commodities. “Ethnic produce has always been big here,” confirms Russo. More than likely, the trend will continue to rise in coming years. According to a USA Today diversity study, Michigan’s Hispanic population will more than double by 2060, the state’s African-American and Asian populations will both rise, and six times as many Michiganders will identify themselves as multiracial.
And because greenhouse-grown produce is always in season, Detroit’s wholesalers are sourcing an increasing amount of peppers, cucumbers, tomatoes, zucchini, lettuces, and spinach. While some of these items come from greenhouses within Michigan, most come across the bridge from Leamington, Ontario, North America’s top greenhouse producer.
Lastly, there’s the Brussel sprouts boom. Wholesalers on the Detroit markets have also seen skyrocketing popularity for a somewhat unlikely candidate: Brussels sprouts. “Believe it or not, Brussels sprouts seem to be going through a similar phenomenon as kale, which exploded onto the scene a few years ago,” remarks Riggio.
Riggio says both retail and foodservice customers are requesting more of the bite-size cabbages. “We’re selling a lot wholesale, but we’re also getting asked to process Brussels sprouts: shaved, halved, you name it. It’s always been an item we sold, but it was treated as a garnishment in the past. Now it’s actually being consumed for its health benefits. I don’t know whether to attribute it to the cooking or healthy living shows or social media, but Brussels sprouts are the new kale,” he adds.
Trials & Tribulations While Detroit’s revitalized economy has certainly been a boon for produce businesses, the city’s recovery has led to even more labor shortages. “Good employees are always hard to come by, and that’s probably true in any industry,” says Russo.
“I think our toughest challenge is finding labor, whether it’s on the floor or drivers,” agrees Stone. As the economy improves and other industries begin to grow, businesses are competing for a limited number of workers. “Even though the produce business is great for us, other businesses are also doing well. The auto business is doing better, manufacturers are doing better, government contracts seem to be better. So I don’t believe this challenge is exclusive to the produce industry.”
Like many produce businesses across the nation, Detroit growers and wholesalers are also struggling to meet increasingly stringent food safety demands. “The new food safety laws are a challenge,” says Horkey (who was in the midst of preparing for a third-party audit at the time of the interview). “It will be our fourth audit, but it’s the first one since last August, and they’ve made the rules a lot tougher.”
The Future Even in the face of labor shortages, food safety challenges, and other issues, Riggio says Detroit’s produce businesses take it in stride. “Being in the perishables business, we’re used to challenges,” he explains. “It’s in our nature to get up every day and face challenges—that’s what we do.”
There’s also ongoing high demand for ethnic commodities. “Ethnic produce has always been big here,” confirms Russo. More than likely, the trend will continue to rise in coming years. According to a USA Today diversity study, Michigan’s Hispanic population will more than double by 2060, the state’s African-American and Asian populations will both rise, and six times as many Michiganders will identify themselves as multiracial.
Trials & Tribulations