Cancel OK

What’s Happening In Florida?

Market updates, hot trends, and top commodities
Florida Spotlight_MS

Although it is famous for its sandy beaches, balmy weather, and family-friendly amusement parks, the Sunshine State’s prolific produce industry is just as impressive. But like any other key region, there are challenges and trends leading to plenty of ups and downs. Note: the research and interviews of this article were conducted before the destruction caused by Hurricane Irma and while much will change in the days and weeks going forward, the comments and insight provided in this spotlight remain relevant.

With more than 9,700 fruit and vegetable growers spanning 850,000 acres, Florida’s produce industry rakes in more than $12 billion a year. The state continues to be the U.S.’s top producer of grapefruit, oranges, cucumbers, snap beans, squash, tomatoes, and watermelon. Helping propel sales to the rest of the United States and suppliers worldwide are 15 seaports along its lengthy coastline, contributing billions in economic value to the state’s coffers.

At the heart of the Sunshine State’s produce trade is a robust network of grower-shippers, receivers, wholesalers, and retailers who distribute fresh fruits and vegetables to consumers across the globe.

Growing Trends
Florida’s acreage and harvests experienced pests and disease, myriad weather incidents, and shifting consumer demand. Here’s a rundown on two of the bigger commodity-related trends in the last year.

Citrus slips
Although the state grows more than 300 commodities, we are all aware that the Sunshine State has been known for its citrus. The impact of the Asian citrus psyllid and citrus greening, as well as other threats and rampant land development, continues to wither supply.

Although California is close on its heels for citrus production, Florida is far from throwing in the towel and projected to bring in between 60 and 75 million boxes for the 2016-17 season. “We’re losing all sorts of citrus trees to greening and canker and other diseases,” confirms Joel Silverman, president of Paradise Produce Distributors, Inc., in Lakeland. “The citrus growers are trying to reevaluate what they’re doing.”

In the battle against citrus greening, quite a few Florida citrus growers are experimenting with new categories. “Some growers are starting to plant Mandarin tangerines, which they’ve never planted before, and they’re hoping they’ll bring a bigger return,” Silverman says. Others are switching to another crop in high demand: blueberries.

In the meantime, agricultural scientists continue to search for a cure to the deadliest plant disease in Florida’s history—an incredibly expensive endeavor. Since 2009, the U.S. Department of Agriculture (USDA) has invested over $400 million to address the disease, including more than $57 million through the Citrus Disease Research and Extension program.

Twitter

Although it is famous for its sandy beaches, balmy weather, and family-friendly amusement parks, the Sunshine State’s prolific produce industry is just as impressive. But like any other key region, there are challenges and trends leading to plenty of ups and downs. Note: the research and interviews of this article were conducted before the destruction caused by Hurricane Irma and while much will change in the days and weeks going forward, the comments and insight provided in this spotlight remain relevant.

With more than 9,700 fruit and vegetable growers spanning 850,000 acres, Florida’s produce industry rakes in more than $12 billion a year. The state continues to be the U.S.’s top producer of grapefruit, oranges, cucumbers, snap beans, squash, tomatoes, and watermelon. Helping propel sales to the rest of the United States and suppliers worldwide are 15 seaports along its lengthy coastline, contributing billions in economic value to the state’s coffers.

At the heart of the Sunshine State’s produce trade is a robust network of grower-shippers, receivers, wholesalers, and retailers who distribute fresh fruits and vegetables to consumers across the globe.

Growing Trends
Florida’s acreage and harvests experienced pests and disease, myriad weather incidents, and shifting consumer demand. Here’s a rundown on two of the bigger commodity-related trends in the last year.

Citrus slips
Although the state grows more than 300 commodities, we are all aware that the Sunshine State has been known for its citrus. The impact of the Asian citrus psyllid and citrus greening, as well as other threats and rampant land development, continues to wither supply.

Although California is close on its heels for citrus production, Florida is far from throwing in the towel and projected to bring in between 60 and 75 million boxes for the 2016-17 season. “We’re losing all sorts of citrus trees to greening and canker and other diseases,” confirms Joel Silverman, president of Paradise Produce Distributors, Inc., in Lakeland. “The citrus growers are trying to reevaluate what they’re doing.”

In the battle against citrus greening, quite a few Florida citrus growers are experimenting with new categories. “Some growers are starting to plant Mandarin tangerines, which they’ve never planted before, and they’re hoping they’ll bring a bigger return,” Silverman says. Others are switching to another crop in high demand: blueberries.

In the meantime, agricultural scientists continue to search for a cure to the deadliest plant disease in Florida’s history—an incredibly expensive endeavor. Since 2009, the U.S. Department of Agriculture (USDA) has invested over $400 million to address the disease, including more than $57 million through the Citrus Disease Research and Extension program.

Florida’s 2016 state budget included $8 million to help combat citrus greening and another $14.7 million for a citrus health response program within the state’s Department of Agriculture and Consumer Services.

“Citrus growers are learning to live with greening through improved management tactics such as enhanced nutrition programs and bio-stimulants,” explains Dr. Frank Sances, president of Florida Ag Research. Part of the Pacific Ag Group based in California, Florida’s branch was established in 2006 to conduct crop production research for private industry, grower groups and government.

FRESH FORUM
Prior to Irma, what has challenged your business the most?

Jimmy Myrick, Edward L. Myrick Produce, Inc.
The biggest challenge for us is the shrinking customer base. With the amount of consolidation in chain stores these days, instead of having a larger base of customers, many have left.

Lisa Lochridge, Florida Fruit & Vegetable Association
Lack of an adequate workforce continues to be one of the biggest challenges producers face. It’s getting tougher and tougher for growers to find sufficient workers when they need them.

Jim Shepherd, Gulfshore Produce, Inc.
Competition; trying to keep up with the Joneses… It’s a very competitive industry.

Jay Johnson, JGL Produce Company, Inc.
The number-one challenge is labor. Things may change, but I don’t know what the solution will be—[perhaps] a combination of automation, mechanization, and some sort of guest worker program.

Joel S. Figueroa, Joco Produce, Inc.
Unequivocally, it has been keeping up with ever-changing food safety stipulations.

Joel Silverman, Paradise Produce Distributors, Inc.
Filling orders with fewer suppliers, more competition from Mexico, fewer quality houses to buy from. Everybody is buying from the same smaller group of people, so you have a decreased supply at production level—but that doesn’t necessarily reflect a higher market.

Jon Browder, Pioneer Growers Cooperative, Inc.
Over the last few years, it seems labor has been the most challenging part of the produce industry, and I don’t believe it will get any easier.

Amber Maloney, Wish Farms
Over the last few years, labor continues to be a challenge for all strawberry production. With the potential addition of Harvest CROO Robotics, farmers will be able to grow the same way they always have, and will have consistent means to pack ready-to-pick strawberries.

“We’re a new product development research group with 12 research centers around the country,” explains Sances. “In Florida, we work with manufacturers developing new patented controls for the Asian citrus psyllid and the bacteria that causes Huanglongbing disease.”

Bountiful berries
Another top crop, strawberries, continues to gain popularity throughout the Southeast. Representing more than 13 percent of all U.S. strawberry production, Florida ranks second after rival California. In 2016, total production value of Florida strawberries reached $450 million.

Amber Maloney, director of marketing with Wish Farms in Plant City, says the 2016-17 strawberry crop was a successful one. “Weather was on our side this year, which led to favorable berry flavor and overall quality,” she explains, adding that Wish Farms strawberries came in early and held strong all the way through March.

FLORIDA’S FARMERS’ MARKETS

Suwannee Valley Farmers Market
2758 County Rd. 136,
White Springs, FL 33209
Phone: (386) 963-5903
2015-16 Sales: $196 million

Starke Farmers Market
2222 N. Temple Ave., Starke, FL 32091
Phone: (386) 329-3713
2015-16 Sales: $2.5 million

Trenton Farmers Market
830 NE Trenton Blvd.,
Trenton, FL 32693
Phone: (386) 963-5903
2015-16 Sales: $3.1 million

Palatka Farmers Market
225 U.S. Hwy. 17, East Palatka, FL 32131
Phone: (386) 329-3713
2015-16 Sales: $2.5 million

Plant City Farmers Market
1305 W. Martin Luther King Jr. Blvd.,
Ste. No. 5. Plant City, FL 33563
Phone: (813) 359-2620
2015-16 Sales: $49.8 million

Fort Myers Farmers Market
2744 Edison Ave., Fort Myers, FL 33916
Phone: (239) 332-6910
2015-16 Sales: $25.6 million

(Continued on next page)

Strawberries are soaring in popularity with consumers across the nation, and it seems the trend is boosting other berry purchases as well. “Rather than a special treat that people pick up from time to time, we’re seeing trends where consumers are putting strawberries in their cart during their weekly shopping trip,” Maloney shares.

“We believe strawberries are the go-to berry item, which leads consumers to pick up a package of a secondary berry, such as blueberries or blackberries.” When retailers display different berries together in the same display, Maloney says it often encourages consumers to buy a variety.

Indeed, blueberries are now a bona fide part of the state’s top crop roster. Just 20 years ago, there was no significant commercial production; today, there are hundreds of blueberry growers in an industry valued at over $80 million. “The Florida blueberry season was successful for our growers despite strong competition from Mexico,” Maloney remarks. “Georgia was hit hard with a freeze damaging a large percentage of its crop; this allowed Florida’s blueberry season to extend a little longer than normal.”

FLORIDA’S FARMERS’ MARKETS (Continued from previous page)

Immokalee Farmers Market
424 New Market Rd. E.
Immokalee, FL 34142
Phone: (239) 658-3505
2015-16 Sales: $13.9 million

Gadsden State Farmers Market
18212 Blue Star Hwy.
Quincy, FL 32351
Phone: (850) 617-7384
2015-16 Sales: $0
(This market partners with Farm Share, a charitable corporation, providing a collection and distribution point for surplus food for individuals and charitable organizations.)

Wauchula Farmers Market
535 S. 6th Ave., Ste. No. 101
Wauchula, FL 33873
Phone: (863) 773-9850
2015-16 Sales: $49.9 million

Fort Pierce Farmers Market
3479 S., U.S. 1 Hwy.
Fort Pierce, FL 34982
Phone: (772) 468-3917
2015-16 Sales: $32.6 million

Edward L. Myrick State Farmers Market
1255 W. Atlantic Blvd.
Pompano Beach, FL 33069
Phone: (954) 786-4828
2015-16 Sales: $43.5 million

Florida City Farmers Market
Address: 300 N. Krome Ave.
Florida City, FL 33034
Phone: (305) 246-6334
2015-16 Sales: $41 million

Source: Florida Department of Agriculture and Consumer Services.

Successful Marketing
As consumer demand for local produce continues to skyrocket, the “Fresh from Florida” label is growing by leaps and bounds, partnering with 45 grocery chains, and now available in 26 countries across the globe.

“Consumers today want to know about their food—how it’s grown, where it comes from,” explains Lisa Lochridge, director of public affairs for the Florida Fruit & Vegetable Association (FFVA) in Maitland.

With this interest continuing to spread nationwide, she adds, “Fresh from Florida is a great avenue for producers to brand their products and increase visibility on the produce aisle. When consumers in Florida and elsewhere in the country see that logo, they know they’re getting fresh, quality produce grown here in the United States.”

Jon Browder, sales manager with Pioneer Growers Cooperative, Inc. in Belle Glade, also sings the praises of the popular label. “Fresh from Florida is a huge part of our marketing campaign,” he says. “At certain times of year, it means a lot to consumers to see this label on our product, so they can actually see what they’re purchasing is locally grown.”

Peninsula State Markets
Each year, more than 25 million units of fresh fruits and vegetables valued at more than $225 million are sold through Florida’s 12 official State Farmers Markets, all operated by the Florida Department of Agriculture and Consumer Services.

Since the first Florida State Farmers Market opened its doors in Jacksonville in 1935, the Sunshine State’s markets have sold nearly a billion units of fresh fruits and vegetables valued at more than $5.5 billion. Wholesalers say it’s been business as usual on the various markets over the past year—though a few have noticed growth in particular categories.

“In the last few years, we’ve seen a trend with retailers merchandising conventional and organic berries on the same shelf,” says Maloney with Wish Farms. “This has really helped with awareness to organic availability and increased sales.” Giving shoppers a choice is key. “For those consumers who have never tried organic berries before, they’re inclined to try something new because it’s convenient,” she adds.

Florida wholesalers say they’ve also seen a surge in demand for ethnic vegetables. “Based off of market demands, the ethnic line is certainly the one that has been trending upwards,” comments Joel S. Figueroa, president of Joco Produce, Inc., an importer and shipper in Miami. The company’s top commodities include turmeric, Chinese eggplant, French beans, okra, snow peas, and Thai chilies.

“We’ve always kept an eye out for further growth and additions to our catalogue of items,” Figueroa says. This year, Joco Produce finalized its first USDA certified organic product: turmeric root out of Jamaica.

“In today’s age, where information is so easily accessible and available, consumers are gaining knowledge and a general understanding of all the health benefits ethnic vegetables provide,” he notes.

The Not-So-Sunny Side
While demand is rising for many of Florida’s fruits and vegetables, suppliers across the state continue to face numerous obstacles, from pests and disease to labor shortages and the always unpredictable weather. One of the more pressing issues this year has been mounting competition from Mexico, which Jimmy Myrick, vice president of Edward L. Myrick Produce, Inc., says is “putting a lot of pressure on Florida growers.”

Most are quite interested in the renegotiation of the North American Free Trade Agreement (NAFTA), which is one the FFVA’s top initiatives this year. “Under NAFTA, increased shipments of fresh fruits and vegetables into the United States during Florida’s harvest season has significantly hurt the profitability of Florida producers and their ability to compete,” asserts Lochridge. “The damage has been particularly high in the tomato, strawberry, and pepper markets.”

Under NAFTA, U.S. tomato acreage has dropped by 25 percent while Mexico’s heavily subsidized production has increased by an unprecedented 230 percent, Lochridge says. “The Trump administration’s call to renegotiate NAFTA has opened the door for Florida to raise the issue of the harm the trade pact has caused our fresh produce industry for the past two decades.”

The FFVA has been working with the state’s agriculture department, ele-cted leaders, and the White House to remedy the situation as NAFTA is ren-egotiated. “We’ve been successful in bringing the issue to the table and are continuing to push for a solution,” Lochridge says.

­

The Road Ahead
Facing uncertainties is nothing new to Florida’s produce purveyors. But in the aftermath of Hurricane Irma, previous issues involving labor and competition are no longer top concerns as every- one along the supply chain assesses the damage to their livelihoods and begins the rebuilding process. Though the road ahead will be difficult, Floridians are more than up to the challenge and will prevail.

Images: VAlekStudio, Roman Samokhin, Alan Sheldon/Shutterstock.com

Twitter