Wilson Farms now has an employee dedicated to investigating new developments, spending part of each day monitoring companies like Blue Apron, Plated, Hello Fresh, and Amazon. The advent of online selling has both pros and cons, depending on where one sits in the supply chain. “For wholesale, it’s a unique customer,” Wilson says, “but on the retail side, it’s a concern because we’re losing potential customers.” For now, the supplier is watching and waiting to see how the virtual realm of produce shopping will evolve.
The Challenges
For those on the market, challenges run the gamut from transportation and weather to food safety regulations and price competition. The first half of the year was grim for some on the Boston markets.
“Challenge is constant,” says Travers, and this can be “weather conditions in the growing area, weather conditions in this area, transportation, or market demand,” he says. What’s more, Travers points out, it can be on a monthly, weekly, daily, or even hourly basis. Though it makes wholesaling difficult, there is a silver lining: buying and selling is never dull, and change keeps the industry evolving and moving forward.
Revolving Regulations
A consistent hurdle has been ever changing regulations, which seem to be ubiquitous from the “local board of health to state to federal,” comments Wilson. On the import side, there is the possibility of increased taxation, and the lack of uniform regulations between different towns and states also presents challenges. Such changes put a strain on businesses. “When you’re working at such low margins, it’s very hard to put more costs on top,” he contends.
Merchants are concerned about the paperwork required for new food safety rules, variations due to size and location, even the impact some changes will have on older facilities. Regardless, it’s all about keeping customers happy. Wilson looks forward to the day when food safety “will be more uniform, so we’re all on the same page.”
Price Wars
Although Boston has a thriving restaurant scene, lower prices have caused concern. “Restaurants are always looking for new and different items, and the latest and greatest in appearance and flavors, but want to reduce plate cost while keeping everyone healthy,” comments Piazza.
Condakes has battled oversupply on many commodities, and “general deflation affecting the food business.” From grocery stores to restaurants to wholesale, “everyone is waiting for a lower price on everything,” he observes, which squeezes those on the market.
A case in point is the rising popularity of a place called Restaurant Depot, where foodservice customers can buy both canned goods and fresh produce in one stop. Saving time and money is key, he says, and worries about being able to maintain volume at adequate prices.
