Messinger says Baldor has also seen growth in its organic business. Although Massachusetts is home to 125 certified organic growers, encompassing almost 5,000 acres, Sharrino believes organic is still very much a “niche market” and sells very little. “People talk a lot about organic, but when you quote them a price, they go back to traditional.”
Condakes has noticed an uptick in tomatoes, particularly special varieties. “There’s a lot of demand for yellow grape tomatoes and heirloom tomatoes,” he explains. He says Canadian producers came in with a tremendous quantity of heirlooms last spring, but before demand usually peaks in June or July. “It was ludicrous…you could buy heirlooms for about one-third what they sold for last year,” he contends. “They all came in a big push,” he says, and then wholesalers were short when demand picked up and supply ran low.
Since roughly one in every seven Massachusetts residents is an immigrant, Boston follows suit as an incredibly diverse city, a melting pot of cultures and cuisines. This, of course, creates high demand for ethnic produce throughout the city and its many suburbs. “There’s always some new popular item, whether it’s Asian or Hispanic,” points out Condakes, adding he has noticed a more diverse customer base coming to both the BMT and NEPC in recent years, including “more Eastern Europeans, Russians, and Romanians than ten years ago.”
Lastly, demand for greenhouse cucumbers, tomatoes, and peppers continues to climb. “Greenhouse products are attracting a much broader base of customers. Retailers have always bought them, but now that they’re more consistent and clean, more foodservice companies are purchasing them as well,” comments Grant.
Beantown Barriers
From miserable weather to skyrocketing freight costs, vendors at the NEPC and BMT have encountered their fair share of obstacles this year, especially the relentlessly cold temperatures and heavy snowfall of the Polar Vortex that caused power outages, major traffic snarls, and closures. “Last winter was horrible, the worst I can remember,” remarks Sharrino. “Transporting was a nightmare.”
To make matters worse, freight rates rose by 25 to 30 percent in the past year, according to Sharrino and Condakes. “Lack of transportation is becoming more and more challenging, and affecting prices,” Condakes emphasizes. “There’s been an inexorable rise in the cost of freight, and even if you want to pay the price, there’s a problem obtaining the service.”
In the face of transportation shortages, vendors are forced to be flexible. “We have to accept the fact that trucks are not going to be available on the exact day you want them to be,” Grant admits.
The two markets serving Boston and beyond have experienced several changes over the past year, but one thing hasn’t changed—how the New England Produce Center and the Boston Market Terminal work together to serve the industry. And while Massachusetts growers produce a wide range of fruits and vegetables including apples, peaches, potatoes, and sweet corn, cranberries remain the top crop. The Bay State provides 27 percent of the nation’s supply, ranking second in U.S. production behind Wisconsin (for information on Wisconsin crops and wholesalers, see “Midwest Road Trip” in this issue).
Sister Markets
Located off Beacham Street on Riley Way in Chelsea, the New England Produce Center (NEPC) is just a hop, skip, and jump from the Boston Market Terminal (BMT) on Market Street in Everett. Less than half a mile apart, these two markets are technically competitors, yet they collaborate to keep fresh produce flowing through the city and entire eastern region of the United States, Canada, and beyond.
Founded more than 40 years ago, the NEPC is home to about 30 vendors who move a wide array of fresh fruits and vegetables. The market is privately owned, and each vendor is a shareholder. Smaller than its rival, the BMT was founded nearly a century ago in 1922 and continues to serve the region’s agricultural trade.
Updates & Improvements
Anthony Sharrino, president of Eaton & Eustis Company, a receiver and importer, says the NEPC is undergoing some upgrades, including paving, a new fence, and more efficient electrical fixtures with LED lights.
Travers Fruit Company, Inc. recently updated its facility at the NEPC as well. “We have a state-of-the-art facility now that our internal improvements are complete,” says Paul Travers, company president. Improvements include new refrigeration and racks for storerooms, storage trailers, and an upgraded electrical system. Travers also recently hired a new salesman, Nick Spinale. “Nick has diversified our product line immensely,” remarks Travers, saying the company has added onions, melons, parsley, beets, bok choy, and a full line of mixed vegetables to better serve its evolving customers.
Peter Condakes Company, Inc., which has a presence on both markets, recently moved its sales operation from the BMT to the NEPC. “We still have warehouse space in the Boston terminal, but we do all our sales out of the Produce Center,” explains president Peter John Condakes.
Countless Advantages
Both the Chelsea and Everett markets offer advantages to both vendors and customers. First and foremost is location, according to Shawn Grant, president/owner of Grant Stanton Produce Company, Inc. at the NEPC. “Because we’re centralized, we can handle Northern New England, Eastern New York, and even the Maritimes of Canada.”
In the summer months, Cape Cod, the shores of Connecticut, and Rhode Island also bring in business. “We’re able to handle a lot of different areas and seasons, whether it’s ski season or summertime. That’s a big advantage for us,” Grant says.
Glenn Messinger, general manager and buyer with Baldor Boston, says parent company Baldor Specialty Foods, a distributor located in the Bronx, New York, jumped on the opportunity to expand into Boston a few years ago. Baldor Boston opened in 2006, and the company moved into a brand new 30,000-square-foot refrigerated facility in May 2013. “We’re in a great location,” he notes, close to the NEPC, the airport, and several highways. “This time of year, we can go into the New England Produce Center and shop around for the best locally grown stuff.”
RETAIL LANDSCAPE
When asked about the influx of new grocery retailers in the Boston area, vendors expressed varying points of view, but most said the invasion has had little impact.
Eaton & Eustis Company’s Anthony Sharrino was of ‘the more, the merrier’ perspective, stating, “It’s positive for everybody, especially the retail customer. I’ve noticed pricing is more competitive with independents and family-owned businesses than it is with national chains.”
Despite the new opportunities, Peter John Condakes of the Peter Condakes Company, Inc. says most of the super-regional’ chains deliver produce from their own distribution centers, and do not rely on local terminal markets for product.
Shawn Grant of Grant Stanton Produce Company, Inc. echoed the same, saying, “For us personally, it hasn’t made much of a difference. We haven’t gained any of the new national chains that have come here—we just service the ones we always have.”
Garden Fresh Salad Company, Inc.’s Patrick Burke, in sales, commented, “We don’t do a lot of business with chains, so it doesn’t really affect us much. I think the big chains are probably getting direct load for now, but they may be using the NEPC for fill-ins.”
Fruit & Vegetable Trends
Vendors on both markets have noticed quite a few interesting trends in the past year. Eaton & Eustis Company runs a full onion program, and Sharrino says sweet onions are a hot commodity year-round. Once Vidalia sales end around Labor Day, sweet onions from Peru and Chile begin arriving. Sharrino says fresh garlic also continues to be popular.
Baldor Boston, which primarily sells to foodservice companies, saw higher demand for kale—both the large and baby varieties. This was confirmed by Patrick Burke, sales manager for Garden Fresh Salad Company, located at the NEPC. “Kale and Brussels sprouts are really taking off,” he says. “These days, you see kale Caesar salads out there and different sautéed kale dishes—things you never saw two years ago.”
Messinger says Baldor has also seen growth in its organic business. Although Massachusetts is home to 125 certified organic growers, encompassing almost 5,000 acres, Sharrino believes organic is still very much a “niche market” and sells very little. “People talk a lot about organic, but when you quote them a price, they go back to traditional.”
Condakes has noticed an uptick in tomatoes, particularly special varieties. “There’s a lot of demand for yellow grape tomatoes and heirloom tomatoes,” he explains. He says Canadian producers came in with a tremendous quantity of heirlooms last spring, but before demand usually peaks in June or July. “It was ludicrous…you could buy heirlooms for about one-third what they sold for last year,” he contends. “They all came in a big push,” he says, and then wholesalers were short when demand picked up and supply ran low.
Since roughly one in every seven Massachusetts residents is an immigrant, Boston follows suit as an incredibly diverse city, a melting pot of cultures and cuisines. This, of course, creates high demand for ethnic produce throughout the city and its many suburbs. “There’s always some new popular item, whether it’s Asian or Hispanic,” points out Condakes, adding he has noticed a more diverse customer base coming to both the BMT and NEPC in recent years, including “more Eastern Europeans, Russians, and Romanians than ten years ago.”
Lastly, demand for greenhouse cucumbers, tomatoes, and peppers continues to climb. “Greenhouse products are attracting a much broader base of customers. Retailers have always bought them, but now that they’re more consistent and clean, more foodservice companies are purchasing them as well,” comments Grant.
Beantown Barriers
From miserable weather to skyrocketing freight costs, vendors at the NEPC and BMT have encountered their fair share of obstacles this year, especially the relentlessly cold temperatures and heavy snowfall of the Polar Vortex that caused power outages, major traffic snarls, and closures. “Last winter was horrible, the worst I can remember,” remarks Sharrino. “Transporting was a nightmare.”
To make matters worse, freight rates rose by 25 to 30 percent in the past year, according to Sharrino and Condakes. “Lack of transportation is becoming more and more challenging, and affecting prices,” Condakes emphasizes. “There’s been an inexorable rise in the cost of freight, and even if you want to pay the price, there’s a problem obtaining the service.”
In the face of transportation shortages, vendors are forced to be flexible. “We have to accept the fact that trucks are not going to be available on the exact day you want them to be,” Grant admits.
Continuity was an issue at times, according to Burke. “It’s up and down,” he observes. “You get your periods when things are a little tight, but nothing has been impossible to find this year.”
For Condakes, it was more than transportation or shipping rates, it was the struggling economy in general. “For many people, fresh fruits and vegetables are a luxury item,” he explains. “You can tell people eating fresh produce will make them healthier as much as you want—but it’s hard to quantify for people who have a certain number of dollars to spend each week.”
On the Bright Side
Although businesses on both Boston markets face difficult challenges, most have high hopes for Boston’s produce industry. “The market is strong right now,” comments Messinger. “As long as there are retailers in this market, [Boston produce businesses] are going to thrive.”
