THE GREEN GIANT DOESN’T LIVE IN CALIFORNIA ANYMORE - Foodopoly: The Battle Over the Future of Food and Farming in America - page 50

Expenses for farming are increasing—fuel, seeds, fertilizers, and other inputs are becoming more ex-
pensive as these industries also become more consolidated. Transportation for crops has become a major
problem for growers; few independent truckers are still in business, and the demise of the railroads means
there is no other option for long-distance transportation.
Cooling crops immediately after harvest exemplifies the infrastructure problems that growers face. Most
growers cannot afford the specialized equipment for cooling or otherwise readying crops for market, which
can include washing, sorting, grading, and packaging of produce before it is loaded into trucks and trans-
ported. Crops such as oranges, apples, tomatoes, and onions are often kept in cold storage before they are
sold, in order to wait until the best price can be achieved. Some fruits and vegetables require immediate
refrigeration at an optimum temperature and humidity levels that differ for each crop but are necessary to
maintain quality. Other crops, such as celery, lettuce, and grapes, can be packaged for sale in the field be-
fore they are cooled, to lower growers' costs.
Growers of most crops have affiliations with a packer/shipper—a company that arranges harvesting,
prepares the crops to sell, and markets it. These companies usually grow large acreages of crops themselves
and have affiliations with other growers. Each service provided to the grower diminishes the final price
they receive. Depending on the contractual arrangement, packer/shippers sometimes hold crops in cold
storage longer than is necessary, in order to collect higher fees.
Already large packer/shippers are increasing in size and scope in order to supply retail chains. Larger
firms have access to the capital necessary for investing in the facilities, equipment, and staffing required
by large chains, including massive warehouses located at airports or transportation hubs. They are able
to provide high volumes of produce by growing their own crops and selling produce grown by affiliated
farms. These suppliers procure year-round produce by having relationships with foreign companies and
can ship directly to the retail chains' distribution warehouses. These can be joint ventures, exclusive re-
lationships, or contractual arrangements. Many packer/shippers grow crops in Mexico to lengthen their
growing season and have year-round produce.
Cook comments: “Scale is increasingly important for grower/shippers. California firms dominate, fol-
lowed by Florida and Washington. Large retail and food-service buyers demand year-round supply, in-
creasingly provided by U.S. grower/shippers, which import during the off season.” She goes on to say
that fresh produce trade patterns are largely determined by identifying the ideal growing locations for each
product during the different seasons.
Of the more than three thousand grower/shippers that operate in the United States, most are privately
owned. These companies are diverse, specializing in different crops, marketing strategies, and foreign affil-
iations. Many companies are focused on specific retailers, helping them develop special produce products
not offered elsewhere to attract customers. It is noteworthy that Monsanto is a member of United Fresh,
the lobby arm of the produce industry.
According to Cook, “seed companies are striving to develop more output-specific consumer traits; in
some cases in conjunction with growers and shippers in order to capture more of the value chain; in some
cases developing exclusive marketing relationships with retailers, supporting retailer differentiation.”
Sun World, a large packer, shipper, and marketer, also has a significant licensing and breeding operation
to develop new varieties. The company has a large international network, with offices in Italy, Australia,
Chile, Mexico, and South Africa. It farms on 23,000 acres and has relationships with 950 domestic and
international growers. The company breeds and grows a variety of fruits and vegetables. Pandol Brothers,
another packer/shipper, supplies grapes and tree fruits, and has operations in California, Chile, Peru, Brazil,
and Mexico. California Giant Berry Farms grows and ships over 20 million trays of berries annually from
farms in California, Florida, the Pacific Northwest, Mexico, Chile, Argentina, and Uruguay.