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Georgia: Southeastern Powerhouse

A fresh report on growing, distributing, and the Atlanta market
GA Spotlite_MS

Although Georgia is well known as the Peach State, this nickname does a disservice to the fine array of other fruits and vegetables produced each year—like its trademarked Vidalia onions, blueberries, watermelon, tomatoes, and bell peppers. Yes, it’s true orchards in the state grow up to 40 different commercial varieties of peaches, but this year was not a good one for the succulent fruit.

While cucumbers, corn, and cabbages fared well, peach production plummeted in 2017 after an overly warm winter followed by a hard freeze in the early spring. The unusual weather wiped out nearly 80 percent of Georgia’s peach crop along with a significant portion of blueberries. Nevertheless, Georgia’s growers and wholesalers are far from cowed by the setback and have plenty of success stories to talk about this season.

Mother Nature’s Polarity
Before Irma, growers were adversely affected by spring temperatures. “The freeze definitely impacted us,” confirms Clyde Alexander, president of Alexander Produce, Inc., a wholesaler based on the Atlanta State Farmers Market. “Instead of getting an order of 500 peaches, which is what we usually get, we’d get 100 here and 150 there,” he says.

Nickey Gregory Company, LLC at the Atlanta Market had to get creative, bringing in peaches from California. “But everybody wants those nice tree-ripened Georgia peaches,” notes Andrew Scott, director of business development and marketing. Luckily, other items— like South Georgia vegetables such as squash, cucumbers, and cabbage—were readily available.

The state’s unpredictable spring weather did not have a negative impact on another famed crop—the iconic Vidalia onion, which contributes about $50 million to the state’s economy each year from a relatively short season: April to the middle of June.

“Vidalia onions can only be grown in a 20-county region in Southeast Georgia making them extremely unique,” explains John Shuman, president of Shuman Produce, Inc. in Reidsville, near Vidalia. “For retailers, stocking Vidalia onions means providing their customers with the opportunity to purchase the most popular sweet onion in the category.”

Since Vidalia onions are not available all year, growers like Shuman augment sweet onion supply with imports from Mexico or Peru. “Peruvian sweet onion imports are similar in shape and flavor profile, and meet consumer demand during the fall and winter months,” he says. “While Vidalia continues to be the benchmark of our business, we feel it’s possible to achieve good quality sweet onions from Peru and Mexico.” Shuman adds that he imports Peruvian sweet onions through the Port of Savannah, “thus continuing to impact the state economy of Georgia.”

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Although Georgia is well known as the Peach State, this nickname does a disservice to the fine array of other fruits and vegetables produced each year—like its trademarked Vidalia onions, blueberries, watermelon, tomatoes, and bell peppers. Yes, it’s true orchards in the state grow up to 40 different commercial varieties of peaches, but this year was not a good one for the succulent fruit.

While cucumbers, corn, and cabbages fared well, peach production plummeted in 2017 after an overly warm winter followed by a hard freeze in the early spring. The unusual weather wiped out nearly 80 percent of Georgia’s peach crop along with a significant portion of blueberries. Nevertheless, Georgia’s growers and wholesalers are far from cowed by the setback and have plenty of success stories to talk about this season.

Mother Nature’s Polarity
Before Irma, growers were adversely affected by spring temperatures. “The freeze definitely impacted us,” confirms Clyde Alexander, president of Alexander Produce, Inc., a wholesaler based on the Atlanta State Farmers Market. “Instead of getting an order of 500 peaches, which is what we usually get, we’d get 100 here and 150 there,” he says.

Nickey Gregory Company, LLC at the Atlanta Market had to get creative, bringing in peaches from California. “But everybody wants those nice tree-ripened Georgia peaches,” notes Andrew Scott, director of business development and marketing. Luckily, other items— like South Georgia vegetables such as squash, cucumbers, and cabbage—were readily available.

The state’s unpredictable spring weather did not have a negative impact on another famed crop—the iconic Vidalia onion, which contributes about $50 million to the state’s economy each year from a relatively short season: April to the middle of June.

“Vidalia onions can only be grown in a 20-county region in Southeast Georgia making them extremely unique,” explains John Shuman, president of Shuman Produce, Inc. in Reidsville, near Vidalia. “For retailers, stocking Vidalia onions means providing their customers with the opportunity to purchase the most popular sweet onion in the category.”

Since Vidalia onions are not available all year, growers like Shuman augment sweet onion supply with imports from Mexico or Peru. “Peruvian sweet onion imports are similar in shape and flavor profile, and meet consumer demand during the fall and winter months,” he says. “While Vidalia continues to be the benchmark of our business, we feel it’s possible to achieve good quality sweet onions from Peru and Mexico.” Shuman adds that he imports Peruvian sweet onions through the Port of Savannah, “thus continuing to impact the state economy of Georgia.”

To the Market We Go
From Augusta to Macon to Savannah, there are a total of nine state farmers’ markets scattered across Georgia, offering a mix of wholesale and retail sales. These markets are responsible for more than $1 billion in sales each year and are home to dozens of businesses employing thousands of workers. Eighty-five percent of these businesses are based at the state’s biggest and most well-known market: the Atlanta State Farmers Market.

Although the first Atlanta Market was built in the 1920s on Central Avenue, it moved to its current location in Forest Park in 1959. “I think we’re positioned in the right place,” says Paul Thompson, the market’s manager. “We’re just on the south side of Atlanta right by the airport, and we’ve got rail access. It’s a great place to be.”

Joshua Anderson, team lead for produce at C.L. Services, Inc. in Atlanta, has similar thoughts. “Atlanta makes for a great central location for the Southeast produce industry. As a transportation company [with our] hub near the Farmers Market, airport, ports, and cold storage facilities, we’re able to assist multiple customers with different business requirements.”

There are also exciting changes on the horizon for the Market itself. On the lower side of the market, six sheds will be removed and replaced by a 77,000-square foot refrigerated space. “It will be the largest one-time improvement to the Market since its inception,” enthuses Thompson. “We hope to break ground this calendar year, and the space should be occupied in the first part of 2018.”

Also located on the market is the Atlanta Produce Dealers Association (APDA). “We welcome membership for distribution companies, retailers, and wholesalers of produce, as well as associate members like banks and transportation companies that do business with our members,” explains Bonnie Wilson, the group’s chairman and vice president at Sutherland’s Foodservice, Inc. on the Market. Founded in 1947, the APDA serves as an advocate for the local produce industry and liaises withgovernment officials.

Retail Corner
With a surge of new supermarkets entering the area in recent years, the retail scene across the state—and particularly in metro Atlanta—is extremely competitive. “We continue to see a wide variety of retailers in Georgia, from large nationwide retailers to regional players to smaller specialty stores,” Shuman remarks.

Scott views it as a healthy mix of independents and chains. For example, Super H and Buford Highway Farmers Market cater to the area’s large Asian population, while independents offer a variety of specialty foods and store formats. That said, Kroger, Publix, and Walmart still reign supreme in Georgia’s $13 billion grocery industry, representing more than three-quarters of the state’s grocery stores.

A few smaller up-and-comers are moving into the Southeast though, attempting to give the Big Three a run for their money. “Sprouts Farmers Market moved to Atlanta in the last four or five years, and have a distribution center here now as well,” Scott says. “Whole Foods also has a distribution center here, and so does Amazon Fresh.”

In 2016, Amazon Fresh opened a 100,000-square foot distribution center in Duluth, which serves most of Atlanta with same-day or next-day grocery deliveries. With Amazon’s purchase of Whole Foods, it will be interesting to see what impact, if any, it will have on the nine Whole Foods stores currently operating across the Peach State.

GA Fresh Forum

Discounter Aldi also continues to thrive. Over the past few years, Aldi has increased its relatively small store space to offer a wider range of fresh produce to Georgia shoppers.

“Then there’s Lidl, Aldi’s largest competitor in Europe,” Scott adds. “They’re making their way into the Southeast too.” With more than 10,000 stores in 28 countries, Lidl’s U.S. headquarters is located in Arlington, VA. The discount grocer plans to open at least 50 stores around Georgia in addition to 115 locations along the East Coast. In June, Lidl announced it will invest $100 million in a new regional headquarters and distribution center in Cartersville, GA, set to open within five years.

Peachy Predictions
Despite the weather woes growers faced this year including the remnants of Hurri-cane Irma, Georgia produce professionals remain optimistic about the future for the state’s favorite fruit and other commodities. “I think the future is bright for the produce industry here in Georgia,” offers Anderson. “With new innovations happening every day, both in the field and on the transportation side, we know consumers will receive the best produce this state has to offer.

“Supermarket chains and restaurants are looking for local produce options to fill their customers’ needs,” Anderson continues. “With all the produce that Georgia grows every year, this will help with our neighboring states. With the ELD laws, this will push for more regionalized service. This is great for Georgia and Atlanta as it will push for more transactions to take place here.”

Shuman, too, shares such optimism. “We’re very excited about the future of Georgia’s produce industry. We’re confident consumers will continue to trust and prefer produce grown and packed in Georgia.”

Image: Mayabuns, wavebreakmedia, Lappo Alexander, Pthawatc/Shutterstock.com

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