Executives in all segments of fresh produce continue to grapple with changes in the industry, including more frequent extreme weather events, high prices impacting suppliers and consumers, an evolving labor pool, and the integration of artificial intelligence, among other trends. Here’s what they’re thinking at the start of 2025 and a look at the months ahead.
Human Capital
When it comes to labor, Daniel Scheitrum, assistant professor of agribusiness at California Polytechnic State University (Cal Poly) in San Luis Obispo, CA, believes automation will be key to tamping down prices and augmenting the workforce across the supply chain.
“Anything that relieves the strain in a very, very tight labor market,” he says.
“Labor shortages are hindering production, harvest, and packing operations, ultimately affecting overall efficiency,” says Darby McGrath, vice president of research and development at the Vineland Research and Innovation Centre in Vineland Station, ON.
“One of the key challenges in maintaining economic sustainability is ensuring a steady availability of labor,” says Irwin R. Donis-González, associate profesor at the University of California, Davis Cooperative Extension for Postharvest Engineering and codirector of the Postharvest Research Center.
“By implementing automated systems, food producers and processors can reduce their reliance on human labor and maintain production levels. Another engineering solution is the development of advanced machinery and equipment that require less manual labor to operate or aid laborers. These not only help in overcoming labor availability but also increase productivity and efficiency.”
Deena Ensworth, culinary innovations director at Salinas, CA-based Markon Cooperative, Inc. BB #:123315, is on the same page. “Our suppliers are developing more and more machinery to alleviate some of the labor challenges our industry faces. These advances help increase job skills and wages for existing employees while helping prevent crop loss due to the shrinking agricultural workforce.”
Wonderful Citrus is focusing on ag-tech innovation, mostly related to labor and efficiency, such as mechanical harvesting, which is still decades away in mandarins. “We haven’t been short on labor,” says Zak Laffite, president of Wonderful Citrus BB #:115157 in Delano, CA, noting the company relies less on the H2A program than suppliers in other produce categories. “But we do have an aging population and we can see shortages ahead in 10 to 15 years.”
The company is also looking for efficiencies through the use of apps that enable tasks to be completed remotely, allowing employees to devote time to other tasks. One example: the wind machines needed when there’s a frost. “Rather than riding an ATV around and flipping switches, we can do remote starts and stops,” Laffite says.
Over at Naturipe, Jim Roberts, president of sales for Naturipe Farms, LLC BB #:116078 in Salinas, CA, says, “Technology is playing a bigger and bigger role in all facets of our business.”
He cites leveraging new tech tools to monitor plant health, water optimization, and crop forecasting. “We’re also looking at new technologies to help harvest of our berries, such as automation to cut runners on strawberry plants, in turn freeing up more individuals to harvest the berries rather than maintain the plant.”
Labor issues require solutions not only in the field but throughout the supply chain.
“There’s growing demand for value-added products like precut, ready-to-use vegetables and plant-based proteins designed for foodservice operators,” says Jin Ju Wilder, vice president of marketing and business development at Vesta Foodservice BB #:125924 in Los Angeles, CA. “As labor costs rise, convenience and labor-saving solutions will remain in demand.”
On the shipping and trucking side of the supply chain, the labor shortage seems to be softening a bit. Fred Plotsky, president of Cool Runnings, Ltd. BB #:125423 in Kenosha, WI, notes that one of his recent help wanted ads received 277 responses.
“I think people are willing to work, most of them,” he says. “There are good people out there, but you’ve got to pay them.” Unfortunately, turnover remains high, he notes, with about three-quarters of the open job’s applicants working for multiple companies for a year or less.
This is an excerpt from the cover feature of the January/February 2025 issue of Produce Blueprints magazine. To read the whole issue, click here: https://www.producebluebook.com/#january-february-2025-produce-blueprints/1/
