Fresh Produce Wholesalers Industry Profile

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Excerpt from Fresh Produce Wholesalers Industry Profile

Companies in this industry distribute fresh fruits, vegetables, spices, and herbs. Major companies include Caito Foods, Coast Citrus Distributors, FreshPoint, and Tom Lange Company (all based in the US), as well as Fresh Produce Group (Australia), Fyffes and Total Produce (both based in Ireland), IG International (India), Oppy (Canada), and Tokyo Seika (Japan). Vertically integrated fruit and vegetable producers such as Chiquita, Del Monte Foods, and Dole have major global distribution operations.

Worldwide, more than one billion metric tons of fruits and vegetables are harvested for human and animal consumption, according to research from the University of Saskatchewan. Despite the significant progress in increasing food production, about half of the global population does not have access to food supplies. Technology with high levels of automation and reliability can ensure adequate agricultural production.

The US fresh produce wholesalers industry includes about 5,000 establishments (single-location companies or units of multi-location companies) that generate annual revenue of about $90 billion.

COMPETITIVE LANDSCAPE

Demand is driven by consumption of fruits and vegetables. Profitability depends on maintaining a high quality and varied selection of produce and on efficient operations. Larger distributors benefit from economies of scale in purchasing and transportation. Smaller companies may compete by specializing in certain products, such as tropical fruits or organic products, or by focusing on a geographical area. The US industry is fragmented: the 50 largest companies account for about 40% of industry ...

 
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