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Carolina Crafted

Seasonal highlights, big brands, expanding retail, and new buying trends
MS_Carolina Crafted

In North and South Carolina world-class grower-shippers, innovative retailers, and a booming population provide exciting possibilities for fruit and vegetable cultivation in these states. From the Coastal Plains to the Appalachian Mountains, fresh produce in the Carolinas provides a ready mix for competitive players, including a surging hospitality industry fueling growth in foodservice. Check out the ingredients for this recipe of success, complete with evolving markets and plenty of consumer demand.

It Starts in the Field
Stellar produce begins with stellar soil and when combined with the moderate climate of the Carolinas, growers have a head start on producing high-quality, high-demand fruits and vegetables. For its part, North Carolina is the top sweet potato producer in the country, while South Carolina is second nationally in peach acreage and a significant producer of watermelon and cantaloupe. Berries have also hit the bigtime in North Carolina, which is third in fresh market strawberries and sixth in blueberries.

Both states are also top-ten fresh tomato shippers, and North Carolina ranks in the top ten for fresh cucumbers and bell peppers. Greens, that Southern staple, are also always available to meet demand, local and otherwise.

“We grow greens year-round in South Carolina,” confirms Jeff Taylor, vice president and treasurer for Taylor Boys Produce in Enoree, SC. His lineup includes a number of greens from mustard, collard, and turnip to pretty much any kind of greens. This includes herbs like cilantro and parsley, which are now major movers at the market.

According to Doug Sutton, market manager at the Western North Carolina Farmers Market in Asheville, production from North and South Carolina complement each other. “We’re not that far from the peach growing area of South Carolina; some of our North Carolina growers lease land there,” he says.

Harvests begin with the sweet before transitioning to savory. “Strawberries from South Carolina start coming in April, then North Carolina strawberries,” Sutton says. Next comes South Carolina watermelon, which can start in late May and peak in June, depending on weather. “The local produce season really picks up in June and July with tomatoes, cucumbers, squash, and peppers,” he notes.

Wholesale & Retail Mix
Both North and South Carolina have invested in markets, with each having a mix of state-owned produce terminals and regional farmers markets. North Carolina’s state farmers markets in Asheville, Raleigh, Charlotte, and Colfax all mix wholesale with retail. Four wholesalers operate out of the Asheville market, and five wholesalers occupy the state-owned Raleigh market. There is one wholesale tenant at each of the retail-focused Charlotte and Colfax markets.

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In North and South Carolina world-class grower-shippers, innovative retailers, and a booming population provide exciting possibilities for fruit and vegetable cultivation in these states. From the Coastal Plains to the Appalachian Mountains, fresh produce in the Carolinas provides a ready mix for competitive players, including a surging hospitality industry fueling growth in foodservice. Check out the ingredients for this recipe of success, complete with evolving markets and plenty of consumer demand.

It Starts in the Field
Stellar produce begins with stellar soil and when combined with the moderate climate of the Carolinas, growers have a head start on producing high-quality, high-demand fruits and vegetables. For its part, North Carolina is the top sweet potato producer in the country, while South Carolina is second nationally in peach acreage and a significant producer of watermelon and cantaloupe. Berries have also hit the bigtime in North Carolina, which is third in fresh market strawberries and sixth in blueberries.

Both states are also top-ten fresh tomato shippers, and North Carolina ranks in the top ten for fresh cucumbers and bell peppers. Greens, that Southern staple, are also always available to meet demand, local and otherwise.

“We grow greens year-round in South Carolina,” confirms Jeff Taylor, vice president and treasurer for Taylor Boys Produce in Enoree, SC. His lineup includes a number of greens from mustard, collard, and turnip to pretty much any kind of greens. This includes herbs like cilantro and parsley, which are now major movers at the market.

According to Doug Sutton, market manager at the Western North Carolina Farmers Market in Asheville, production from North and South Carolina complement each other. “We’re not that far from the peach growing area of South Carolina; some of our North Carolina growers lease land there,” he says.

Harvests begin with the sweet before transitioning to savory. “Strawberries from South Carolina start coming in April, then North Carolina strawberries,” Sutton says. Next comes South Carolina watermelon, which can start in late May and peak in June, depending on weather. “The local produce season really picks up in June and July with tomatoes, cucumbers, squash, and peppers,” he notes.

Wholesale & Retail Mix
Both North and South Carolina have invested in markets, with each having a mix of state-owned produce terminals and regional farmers markets. North Carolina’s state farmers markets in Asheville, Raleigh, Charlotte, and Colfax all mix wholesale with retail. Four wholesalers operate out of the Asheville market, and five wholesalers occupy the state-owned Raleigh market. There is one wholesale tenant at each of the retail-focused Charlotte and Colfax markets.

The Western North Carolina Farmers Market in Asheville is celebrating its 40th anniversary this year. Sutton describes it as more of a wholesale market with a recent infusion of retail. “The wholesalers mainly serve foodservice, including schools and senior care centers. One focuses on supplying organics to the Asheville restaurant scene,” he shares. Colleague Beth Frith, marketing specialist, stresses efforts to develop its retail side: “We’re trying to make this market a year-round destination for locals.”

The South Carolina State Farmers Market, in West Columbia, combines a terminal market with retailer space, farmer sheds, and wholesalers. “The market does $250 million in sales per year, including the wholesalers,” says Brad Boozer, market manager for the West Columbia market and director of state markets for the South Carolina Department of Agriculture. Local activity emphasizes foodservice and direct sales to consumers through the retail stalls. Boozer says local customers range from families to roadside stands to local restaurants.

In South Carolina, the state owns and manages two additional farmers markets: Greenville State Farmers Market and Pee Dee State Farmers Market, in Florence. Both are retail focused. Ardona Summerall, market manager in Greenville, says the market has evolved over the years from wholesale-only to more retail. The market’s vendors also enjoy a favored location near two universities—Furman and Bob Jones—attracting a broad swath of shoppers.

Also contributing to market success are each state’s promotional efforts: North Carolina has both the ‘Got to Be NC’ and older ‘Goodness Grows in NC’ brands, while South Carolina promotes its ‘Certified South Carolina’ logo.

Ronnie Best, market manager for the Raleigh Farmers Market, is a fan of such marketing initiatives and lauds North Carolina’s program. “The whole local thing has been a boon for our farmers,” he enthuses.

Strictly Retail
The Carolinas are home to several long-established retailers where locally grown is a big draw for shoppers. The top three retailers in North Carolina are Harris Teeter (now a Kroger banner), Walmart, and Food Lion, but other chains from Publix to Lidl are expanding. Salisbury, NC is the headquarters location for Food Lion, and also home to an Aldi distribution center. “We’re within a few hours of eight retail distribution centers,” points out Mike Laws, manager of special projects at Performance Produce in Salisbury. Their marketplace is not only very competitive, he notes, but offers consumers numerous choices on where and how to buy their groceries.

Part of the equation is newcomer Lidl, which made the Carolinas central to its push into the U.S. market and competition with Aldi. Spartanburg and Greenville in South Carolina were among Lidl’s first store openings, followed by nine initial North Carolina locations before landing in Charlotte.

Publix is going head-to-head with Harris Teeter in Charlotte, one of the nation’s faster-growing metro areas. Sprouts Farmers Market and Wegmans have entered the Carolinas too. Others include newly-related BI-LO and Harveys banners, both of which have longstanding presences throughout the Carolinas. Piggly Wiggly is also a big player in South Carolina.

One Carolina chain is hoping to turn its grocery stores into a gathering place: Lowes Foods, based in Winston-Salem, is emphasizing the local food experience on a community level. A subsidiary of Hickory, NC food distributor Alex Lee, Lowes is trying out a redesign that features a communal area in the center store. Most of the chain’s locations are in North Carolina, with a dozen or so in South Carolina and a handful in Virginia.

At A Glance: Production Areas

North Carolina
The eastern Coastal Plain, bordering the North Carolina Piedmont Triad, is sweet potato country. About half of the state’s 95,000-acre harvest comes from Sampson, Johnston, Wilson, and Nash counties. Fresh cucumbers and sweet corn ship from large farms in the Blacklands region, eight counties on the Atlantic Coast. The state’s Coastal Plain producers start the season for tomatoes and melons. Henderson County, farther west, leads field tomato production, followed by Burkin County.

In southern North Carolina, Bladen County is home to over half of the state’s 7,000 blueberry acres; growers there average 100 acres, but some are much larger. Neighboring Sampson and Pender counties each harvest around 1,000 acres of blueberries. Fresh strawberries are grown throughout the state, on smaller acreages.

South Carolina
Northeastern South Carolina is the main peach production area. Saluda, Spartanburg, and Edgefield counties are ranked first through third in acreage, in that order. Watermelon acreage is concentrated in South Carolina’s low country: Aiken, Allendale, Bamberg, Barnwell, Colleton, and Hampton counties. Chesterfield and Lancaster counties are the main upstate melon areas, according to the South Carolina Department of Agriculture.

Lexington County is a production hub for collards, turnip, and mustard greens. It is also a major fresh sweet corn supplier; overall, Lexington bested its sibling counties to lead South Carolina’s overall value in vegetable production.

Elise Wilson, owner of Pal-Agri Company, LLC is in Columbia. “Good schools, good services, lots of natural landscape—it’s just a great place to be,” she shares. The area also has good retail representation including Walmart, Kroger, Trader Joe’s, Whole Foods, and Target.

Buying Trends
Surging population, including younger consumers, is fueling growth in organic, local, and value-added product offerings. Demand for local stretches to both retailers and foodservice. Taylor says numerous restaurants have opened in the last couple years, seeking local produce. Fortunately, with the emergence of more hub and city markets, and smaller growers getting certified, it’s been easier to find and secure local product.

Retailers and foodservice continue mainlining local, affecting what and how much growers plant. Recent changes have included more emphasis on two longtime favorites: melons (including beloved watermelon varieties) and tomatoes.

Both Boozer and Best comment on the demand for melons: “Our South Carolina growers seem to be producing more watermelon each year,” notes Boozer. Best, with the Raleigh Market, characterizes the local craze as a boon for growers and expects higher volume extending into the fall: “specialties like Sprite melons are more and more popular.”

In terms of organics, like most everywhere, sales and demand are up, stretching across both Carolinas according to Jonah Critcher, in sales at Critcher Brothers, Inc. in Deep Gap, NC. “We’re looking at growing more organic cabbage,” he notes, for both “the local and organics markets.”

Performance Produce’s Laws agrees. “We’re seeing an uptick in organics,” he affirms. Both also comment on the convenience trend, along with portion size. “People who used to take 10-pound onion packs now want 3 pounds,” points out Laws. “Meal kits and individual packaging keep growing; in general, the trend continues toward individual servings.”

Critcher cites the popularity of steamable potato packs, with consumers willing to pay extra for these quick and easy side dishes, even if an entire bag of potatoes may be close in price.

Maintaining Balance
Weather was a good-sized challenge for Carolina produce. This year, parts of North Carolina dealt with rain and mudslides, while last year South Carolina’s historic freeze took out most of its peach crop. “Last year was a pretty rough year starting out,” admits Boozer.

Not all areas are as hard hit by the weather or the resulting losses. Upstate South Carolina, particularly the Green-ville and Spartanburg areas, “seem to have weathered economic storms a little better than other parts of the state,” observes Taylor.

And despite high demand, there’s plenty of competition. Growers work hard to get their melons to market before the July 4 holiday, following supply from Florida and Georgia. But for other crops, seasons can overlap. “North Carolina strawberries have to compete with the Florida crop, which is usually much cheaper,” notes Best at the Raleigh, NC market.

Other hurdles in getting fruits and vegetables to market are related to food safety and transportation. “Changes in how retailers receive product have certainly hurt our wholesalers,” contends Best. “But wholesalers have adapted; they’re serving more foodservice and we also see a lot more activity in fresh-cut products.”

Competition from imported produce is not regarded as a problem for many, following the ‘rising tide’ adage of being good for everyone in driving demand. Wilson distributes to produce wholesalers in both Carolinas and is particularly enthusiastic about product from South America. Combined, the Carolinas have well over a dozen ports of entry, large and small. In South Carolina, container volume rose 7 percent last year and its Charleston Harbor is more than willing to handle it: the port will boast the deepest harbor on the East Coast after a dredging project that began in February.

In North Carolina, the Port of Morehead City and Port of Wilmington are also growing in tonnage and products. The first load of bananas arriving at North Carolina ports from Guatemala docked at the Port of Wilmington in February. It is also the first South Atlantic port to complete a cold treatment pilot program for the USDA, which will allow for more direct imports of blueberries, grapes, apples, pears, and citrus.

Wrap-Up
As everyone in the Carolinas continues their summertime hustle and flow, most believe demand for fruits and vegetables will continue to climb. And as cities in both states attract more residents, it’s all good in the neighborhood.

The local trend seems to be locked in for the long haul, as are convenient produce offerings that appeal to younger consumers. In North Carolina, Charlotte and the Triangle have become hot destinations. “They’re building high rises in downtown Raleigh, putting in lofts and condos left and right, and the millennials are moving in,” says Best.

Laws has the same optimism for upstate South Carolina. “The arrow is pointing up for the economy in this area,” he says, which seems to portend only positive news for grower-shippers, receivers, and retailers.

Images: Aliance, Eric Krouse, Alina P Habich, Rob Hainer, Carol Mellema, Bryan Pollard/Shutterstock.com

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