“Transportation issues seemed to have eased a bit; there are still some growing areas where transportation can be a bit tricky, but overall the situation seems to be improving,” states Bennett.
Rates to and from the Midwest have been consistent, highlighting the geographic advantage for the region’s receivers. “Freight has remained steady over the last five years,” comments Ray. “One of Indiana’s mottos is the ‘Crossroads of America.’ It’s pretty easy for us to hit a large market area consistently, and stay competitive with quality and price.”
The advantage of shipping from major Midwest cities extends west of Indiana, too. “The benefit of sourcing from a company in Des Moines is that it is centrally located and we can hit several large cities fairly easily such as Minneapolis, Kansas City, Omaha, Lincoln, Chicago, the Quad Cities, St. Louis,” sums up Comito. Receivers in St. Louis can add Memphis to the list of nearby metro areas.
Expansion?
With demand for locally grown produce at an all-time high, many receivers would like to see more seasonal availability, but even with added acreage buyers and sellers alike have to contend with the sometimes crazy weather.
Another obstacle to upping regional fruit or vegetable production is tradition. Many row crop (corn, soybeans, and wheat) growers in the Midwest are long-established and resistant to change. This was especially true during the row crop price boom that lasted through 2014.
But attitudes may be changing as row crop margins tighten and new generations take over farm management. “There are more and more millennial farmers appearing and taking the family farm enterprise to different levels,” explains Maglio, referring to the Milwaukee area. “We see this as a very positive opportunity to diversify the crops available in the local market.”
Rural produce auctions
Another regional distinction with a bearing on fresh produce is the presence of Amish and Mennonite growers throughout the Midwest. Some of these communities have established wholesale produce auctions to sell their annual bounty of fresh fruits and vegetables, as well as flowers and other horticultural products.
These auctions can move substantial seasonal volume at very low prices, but may be impacted as food safety requirements change. In 2015 there were eight auctions in Missouri, five in Indiana, and four in Ohio. Wisconsin listed three produce auctions last year, also in communities of higher Amish populations.
Some regional produce auctions have initiated good agricultural practices certification and other food safety protocols for sellers. According to a University of Missouri report earlier this year, pending Food Safety Modernization Act requirements are already impacting some of the larger farms selling at produce auctions in Missouri.
