As North Carolina and South Carolina continue to experience population growth, Carolina growers, shippers, and wholesalers expect to increase shipments to the region’s booming retail and foodservice customers. But are they up to the task?
“North Carolina is growing by leaps and bounds,” affirms Daryl Johnston, vice president of sales and marketing for Titan Farms Sales, LLC, in Ridge Spring, SC. “The major cities and the rural areas of North Carolina and South Carolina both continue to grow—and will provide more opportunities for business.”
Indeed, North Carolina’s population jumped to a record 10.1 million in 2016, while South Carolina increased to 5 million residents, according to the U.S. Census Bureau. Charlotte and Raleigh in North Carolina and Charleston in South Carolina are among the region’s metropolitan areas experiencing the most growth.
Chris Rawl, president of Clayton Rawl Farms Inc., in Lexington, SC, concurs: “The growing population will mean more produce business for South Carolina,” and Clayton Rawl Farms is ready. The family business grows and ships vegetables and leafy greens throughout the Southeast from the South Carolina State Farmers Market and Agri-business Center in West Columbia. Rawl credits the Columbia market’s location for being a key link in the fresh produce supply chain.
South Carolina’s Columbia Market One of the newer facilities in the region, the South Carolina market serves as a hub for growers selling to wholesalers and direct to consumers. Constructed in 2011, the new market replaced an aging facility with state-of-the-art features and pleasing aesthetics. Rawl applauds the improvements, noting, “Keeping up with food safety at the older place was a nightmare.”
Now there’s more space, better maneuverability for trucks, and the market attracts buyers from throughout the region from Tennessee, West Virginia, Virginia, Ohio, Maryland, and New Jersey. There are four large wholesalers on the premises and many Georgia and Florida growers sell on the market as well. With $350 million in yearly sales, it ranks as one of the larger markets in the Southeast by produce volume, according to Brad Boozer, its manager.
“We’re located in the upper southeastern states so people can get to us in six to ten hours,” Boozer explains, which means even customers from New York and Ohio load trucks. “We have a good location with good interstate highway access. This new market is larger than the older one and gives trailer drivers more space to enter.”
Columbia’s economy is doing well too, and the city is undergoing several major construction projects, bringing new businesses and housing to the region. This, in turn, continues to amplify wholesale traffic, which Boozer says remains strong.
Jeff Taylor, owner of Taylor Boys Produce, Inc., in Enoree, SC—equidistant from the West Columbia market and Charlotte, NC—has been impressed by local melon volume, which he says has been particularly strong. He attributes part of the demand to South Carolina’s ability to attract manufacturers, which brings in more jobs and increased food demand to the area.
As North Carolina and South Carolina continue to experience population growth, Carolina growers, shippers, and wholesalers expect to increase shipments to the region’s booming retail and foodservice customers. But are they up to the task?
“North Carolina is growing by leaps and bounds,” affirms Daryl Johnston, vice president of sales and marketing for Titan Farms Sales, LLC, in Ridge Spring, SC. “The major cities and the rural areas of North Carolina and South Carolina both continue to grow—and will provide more opportunities for business.”
Indeed, North Carolina’s population jumped to a record 10.1 million in 2016, while South Carolina increased to 5 million residents, according to the U.S. Census Bureau. Charlotte and Raleigh in North Carolina and Charleston in South Carolina are among the region’s metropolitan areas experiencing the most growth.
Chris Rawl, president of Clayton Rawl Farms Inc., in Lexington, SC, concurs: “The growing population will mean more produce business for South Carolina,” and Clayton Rawl Farms is ready. The family business grows and ships vegetables and leafy greens throughout the Southeast from the South Carolina State Farmers Market and Agri-business Center in West Columbia. Rawl credits the Columbia market’s location for being a key link in the fresh produce supply chain.
South Carolina’s Columbia Market One of the newer facilities in the region, the South Carolina market serves as a hub for growers selling to wholesalers and direct to consumers. Constructed in 2011, the new market replaced an aging facility with state-of-the-art features and pleasing aesthetics. Rawl applauds the improvements, noting, “Keeping up with food safety at the older place was a nightmare.”
Now there’s more space, better maneuverability for trucks, and the market attracts buyers from throughout the region from Tennessee, West Virginia, Virginia, Ohio, Maryland, and New Jersey. There are four large wholesalers on the premises and many Georgia and Florida growers sell on the market as well. With $350 million in yearly sales, it ranks as one of the larger markets in the Southeast by produce volume, according to Brad Boozer, its manager.
“We’re located in the upper southeastern states so people can get to us in six to ten hours,” Boozer explains, which means even customers from New York and Ohio load trucks. “We have a good location with good interstate highway access. This new market is larger than the older one and gives trailer drivers more space to enter.”
Columbia’s economy is doing well too, and the city is undergoing several major construction projects, bringing new businesses and housing to the region. This, in turn, continues to amplify wholesale traffic, which Boozer says remains strong.
Jeff Taylor, owner of Taylor Boys Produce, Inc., in Enoree, SC—equidistant from the West Columbia market and Charlotte, NC—has been impressed by local melon volume, which he says has been particularly strong. He attributes part of the demand to South Carolina’s ability to attract manufacturers, which brings in more jobs and increased food demand to the area.
North Carolina’s Market Like its sibling state, North Carolina has many produce outlets that mix terminal and farmers’ markets where local growers can sell to both wholesalers and the general public.
Catching up with Charlotte Amie Newsome, manager for the Charlotte Regional Farmers Market, says tenants at the site are holding their own. “This city’s economy is doing well,” she observes. “When the economy is good, our vendors get a lot of foot traffic.”
RANKING IN THE TOP
Optimal soil and weather conditions in North and South Carolina usually produce a bumper crop of fresh fruits and vegetables each year. Growers, wholesalers, retailers, and residents all benefit from the bounty.
North Carolina is ranked in the top ten nationally for a host of fruits and vegetables, including sweet potatoes (first); strawberries and pumpkins (fourth); bell peppers and watermelon (sixth); blueberries, cantaloupe, peaches, and tomatoes (seventh); apples and squash (eighth); and grapes (ninth), according to the U.S. Department of Agriculture.
South Carolina is the largest East Coast peach grower and second nationally; it is fifth in watermelon production; sixth in cantaloupe; eighth in tomatoes; and tenth in squash. The Palmetto State also produces broccoli and greens including collards, cilantro, kale, and parsley.
Visitors range from retailers and institutional buyers to consumers who want to “eat healthier by cooking more at home,” Newsome notes. Chefs procure items for menus from wholesalers as well as local farmers, who have their own market section. “This city has a vibrant restaurant scene,” she points out.
In addition to Charlotte’s diversity, the market’s site is advantageous too. “We’re fortunate to be on the city’s southwest side, near the airport and a major thoroughfare, and not too far from Interstate 77,” Newsome continues. “Geographically, it’s a good location.” Ongoing area construction of both apartments and townhomes has also helped bring more people to the market.
For Randy Bailey, president of Bailey Farms Inc. in Oxford, NC, the continual influx of residents is always good news, as the “population increase will only help as there will be more mouths to feed.”
Performance Produce, LLC is located in Salisbury, a little over 40 miles northeast of Charlotte, and grows yellow squash, zucchini, jalapeño peppers, watermelon, and onions. J.R. Roach, the vertically-integrated grower, packer, and shipper’s managing member, sells mostly to retailers who are catering to the area’s increasingly diverse residents. Performance Produce also offers storage services and load consolidation to its customers.
Rallying in Raleigh Another Tar Heel State market, the North Carolina State Farmers Market in Raleigh, is experiencing robust sales as well, according to market manager Ronnie Best. It has a prime location, adjacent to downtown Raleigh, which helps attract consumers looking for fresh, local produce.
Vaughn Ford, co-owner of Ford’s Produce Company, Inc., echoes Newsome’s comments on the thriving restaurant scene, but is located in the Triangle region which includes Raleigh, Durham, and Chapel Hill. The area is home to many universities, technology-based businesses, and eateries to meet everyone’s palate. “The Triangle is a thriving area; this region is growing—year after year. It’s ranked as one of the best places to live in the country. People keep moving here because of it.”
Raleigh, like Columbia, SC, is experiencing a construction boom as more young people move into the downtown area. Many don’t own cars or trucks and choose to ride bikes or walk to nearby stores to purchase food, making multiple trips during the week instead of the formerly traditional once-a-week trek.
MARKET FAST FACTS
Greenville State Farmers Market 1354 Rutherford Road, Greenville, SC 864-244-4023 Open Monday to Saturday Ardona Summerall, market contact – asummerall@scda.sc.gov
South Carolina State Farmers Market & Agribusiness Center 3483 Charleston Hwy., West Columbia, SC 803-737-4664 Open daily Brad Boozer, market manager – bboozer@scda.sc.gov .
Charlotte Regional Farmers Market 1801 Yorkmont Road, Charlotte, NC 704-357-1269 Open daily May to September, Tuesdays & Saturdays October to April Amie Newsome, manager – Amie.Newsome@ncagr.gov
Raleigh Farmers Market 1201 Agriculture Street, Raleigh, NC 919-733-7417 Open daily Ronnie Best, market manager – ronnie.best@ncagr.gov
Western North Carolina Farmers Market 570 Brevard Road, Asheville, NC 828-253-1691 Open daily Doug Sutton, market manager – doug.sutton@ncagr.gov
Others are turning to their computers, tablets, or phones and ordering online for pickup or delivery right to their door. In response, both supermarkets and local growers are taking note and ramping up their online services and delivery options to attract and retain these Internet-savvy customers.
Local and Local-ish Due to their geographical location, local produce for the Carolinas can include fruit and vegetables from nearby states to fill supply gaps due to weather or other impediments. This year, sellers contended with a shortage of peaches in South Carolina, and reduced blueberry production in both Georgia and North Carolina after spring frosts.
Last year’s drought affected some South Carolina crops, but supply was augmented by tomatoes from Tennessee’s lower elevations which began harvesting in March. A silver lining to last season’s drought, says Sutton, was better prices for the region’s growers and distributors.
And just as produce flows across state lines, so do buyers. North and South Carolina sellers always look forward to the excitement that accompanies spring and summer product, drawing buyers from Georgia, Tennessee, Kentucky, West Virginia, and as far away as Indiana as seasonal supply trickles in.
“The produce economy is pretty vibrant now,” shares Bailey, whose namesake company specializes in hot peppers. “We’ve seen strong movement in North Carolina and are receiving more orders.”
Despite the lack of skilled workers in other parts of the country for harvests, it has not been a problem at all for R & H Produce Company, Inc. in Raleigh. “Labor has been easy to get,” comments Ronnie Yokeley, R & H’s president. “The unemployment rate is higher than what they say it is. Help is easy to find: you hire one, there are five more waiting in line.”
To maintain supply, wholesalers also import product. Many find it easier to work through brokers and do not import from North or South Carolina’s ports, as they don’t handle much produce according to Ford. Instead, distributors work with brokers bringing cargo in from Philadelphia (PA), Wilmington (DE), Norfolk (VA), and Miami (FL) ports. retail bonanza
Whatever the size or location, it seems most retailers in both North and South Carolina are enjoying plentiful business. Longtime grocers and transplants are enjoying success. The Lowes chain is new to South Carolina while Wegmans is planning to enter the crowded North Carolina market. Aldi, Food Lion, Harris Teeter, and Publix are among the established chains, and all are opening new stores in the sibling states.
The booming retail business benefits both wholesalers and grower-shippers. “From a supplier viewpoint, it seems there are many more retailers entering the market,” notices Laura Hearn, marketing director at Nash Produce, LLC, in Nashville, NC. While stepped-up competition could be worrisome, she says, “Each seems to have a unique voice and footprint.”
Last year, Publix announced plans to rapidly increase its presence in Charlotte, NC. Then came the arrival of Lidl in mid-June. The German discounter opened its first stores in North Carolina, followed by locations in South Carolina and Virginia.
Most independents have managed to do well by not competing directly with the larger chains or big-box stores by emphasizing community involvement.
“The independents are holding their own to this point,” comments Titan Farms’ Johnston. “You have multiple retailers that touch all different areas. It’s just a matter of right-sizing the marketplace to the independents’ consumer demographics.”
A case in point are Asian and Hispanic specialty shops. Elvin Peña, president of Super Fresh, LLC in Charlotte, sells to supermarket chains, independent stores, and area restaurants. “The Charlotte area keeps growing, especially the Hispanic market,” he says. Among his top selling items are avocados, limes, papayas, pineapples, mangos, and Roma tomatoes.
In addition to a crowded retail marketplace, technology is playing a bigger role in the sector as well, notes Gary James, director of sales for Walter P. Rawl & Sons, Inc. in Pelion, SC. “The variety of different ways people are buying their groceries has led to online ordering, niche foodservice businesses, and new retail formats, which have made this an interesting time to be in the produce business,” he says. changing channels
FRESH FORUM How much impact has the state’s fresh produce branding program had on your business?
Jeff Taylor, Taylor Boys Produce, Inc., Enoree, SC It has had a tremendous impact, especially in the school systems. The school districts have had increased demand over the past 10 years.
Vaughn Ford, Ford’s Produce Company, Inc., Raleigh, NC They do an excellent job promoting our products, but more importantly, in educating and supporting local farmers.
Darrell Holifield, Capital Produce Distributors, Inc., Columbia, SC It’s a good thing and an effective program. I notice a lot of retail chains focus on it.
Randy Bailey, Bailey Farms Inc., Oxford, NC We’re part of those programs; in many ways, promoting local has helped our business.
Daryl Johnston, Titan Farms Sales, LLC, Ridge Spring, SC They do a good job helping to represent us not only in the state, but outside the state as well. The South Carolina Department of Agriculture does a very good job partnering with the local growers to help expand our business.
Even transportation is changing in the Carolina produce pipeline. Whole-salers accustomed to tractor-trailers are now delivering to restaurants and other foodservice customers with smaller vehicles. The streamlined trucks not only save on fuel and reduce environmental impact, but are easier to park in busy cities than big rigs.
Despite population growth and many suppliers reporting solid sales, there are still challenges affecting terminal markets. One negative in the food market over the last few years is the trend for some larger grocery retailers to cut out the middleman in favor of going direct to growers and managing their own distribution networks. This has forced wholesalers to differentiate and seek new opportunities.
“Even though they’ve lost volume with chain stores, wholesalers have changed their business models,” Best explains. “They’re handling more high-end items, more local product, and are serving restaurants and other foodservice institutions.” Three of the Raleigh market’s vendors, he says, “are handling school lunches for the counties. They bid and provide schools with fresh produce.”
Doug Sutton, market manager of the Western North Carolina Farmers Market in Asheville, NC is well aware of the challenges facing his wholesalers. About six years ago, he says, a wholesaler on the market could reap $11 million in yearly business. Today, due to stricter food safety requirements and other factors including consolidation, earnings have fallen to about $7 million a year.
“Customers have gone directly to large growers and bypassed us,” Sutton contends. The good news, however, is the evolving market itself and its many players. “We’re on the fringe,” he admits, but “working with more of the small independents.”
“Most of my customers are ethnic groups, wholesalers,” explains Kevin Sikorski, president of Farmers Friend, Inc., a Raleigh brokerage. “They’re loyal and an important buying segment.” But with recent ups and downs, not all buyers fall into this category when it comes to price. Some buyers will turn to anyone when prices fall but his loyal customers, however, “will call when the price is $4 or $40.”
Better news is the vibrant restaurant scene. Asheville, home to a popular downtown river walk, teems with residents and visitors. Fortunately, what Asheville’s wholesalers may lack with larger retailers, they make up with restaurants, Sutton says. “We probably have more restaurants per capita than any other area of the state.”
Unfortunately, not every metro area’s success is carrying over to the wholesale side. Although restaurants may appear busy, E. Alan Franklin, president of Franklin Produce, Inc., a tomato repacker headquartered in Lexington, SC, has not seen an uptick in his sales. For him, wholesaling in the region has been increasingly difficult. “Business seems to get worse each and every year,” he states.
Sikorski agrees. “Business is good, but it’s getting in fewer and fewer hands,” he notes. “It’s really getting tough to be on the wholesale side.”
Foodservice & Organics According to Darrell Holifield, the president and chief executive officer of Capital Produce Distributors, Inc., in Columbia, SC, the foodservice movement has been relatively steady in his neck of the woods. “For the most part, when you go out on weekends and at lunch, it seems the economy has been pretty strong in these parts. Last year was a very good year for us in terms of consistency.”
“The foodservice guys are doing well,” confirms Sikorski. “This is a very competitive business, like all markets are. A lot have their specific target customers while some will sell to everyone.”
And like most parts of the country, the organic market continues to expand in the region as well. Super Fresh’s Peña has plans to jump into the surging organics market in the near future, while Performance Produce’s Roach tries to keep up with a magical trifecta: “We’ve seen an increase in demand for local produce, organic produce, and local organic produce.”
WP Rawl’s James marvels at the changes in recent years. “Organics have gone mainstream—in the past when you wanted to find organics, going to health food and niche stores were the only places you could find a large quantity,” he observes. “We’ve certainly started growing more organics and plan to continue adding more as the market grows.”
Taylor is enthusiastic about high-tech improvements to both planting and harvesting. By tinkering with science, producers can grow greens throughout the year, ensuring a consistent supply for customers.
Conclusion Despite normal customary and ever-changing business challenges, growers and distributors in North and South Carolina are enjoying plentiful local product and solid sales throughout the Southeast and beyond.
