Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, August 22, 2008

Amish paradise ?

I recently received an email from a source who said one of the big questions about the USDA's Good Agricultural Practices audit is this: Should the use of horse drawn wagons by the Amish in their fields during harvest prevent those growers from passing a USDA Good Agricultural Practices audit? Apparently, as of now, the USDA has determined that such a practice wouldn't stop the farm passing a GAP audit. We'll try to get some clarification from the agency next week when I get back to the office. The issue is relevant one, given the rising importance of local sourcing by larger buyers. Here is some recent coverage from the Associated Press about local/homegrown produce and how that meshes with demand from big time buyers. From the story:

At the wholesale produce market in this Mennonite community, farming families arrive by horse and buggy and pallets are stacked high with freshly harvested Shenandoah Valley onions, corn, green peppers and squash.

The setting evokes a simpler, pre-industrial era. In reality, small-scale farmers are experiencing growing pains as they adapt to the country's expanding diet for locally grown foods and the exacting demands of high-volume distributors of their produce.

Companies such as Sysco Corp., Whole Foods Market Inc. and Wal-Mart Stores Inc. want guaranteed volumes, set prices for an entire season and the ability to trace produce back to its source in the event of a food-related health scare, among other things.

However, such standards, and other formal trappings of the business world — contracts, attorneys, technology — often conflict with the ethics, and practical considerations, of small-scale farmers, especially those who are deeply religious.

"They feel they are producing something as safe and secure as their relationship with the Lord," said David Watson of the Association of Family Farms.

Moreover, growers in temperate climates don't have a 12-month supply of produce. "Trying to match what the buyers need with what's being planted" is one of the biggest challenges, said Richard Rohrer, a Mennonite farmer and manager of the Shenandoah Valley Produce Auction.

When one large buyer recently demanded insurance — which is needed in case a fruit or vegetable makes someone ill — the Dayton farmers balked.

"We deal more on the handshake, personal commitment — look the grower in the eye," said farmer Vernon Hoover, the Dayton auction's independent buyer.

Still, Amish and Mennonite and even non-religious small-scale growers in Virginia, Pennsylvania, Ohio, Iowa, Tennessee, New York and other states are mindful of the money to be made from this emerging relationship with big distributors. And they are willing to engage in some horse trading to create business relationships.

For example, they want industry demands such as specialty boxes and company labels to be factored into their price, according to Rich Pirog, associate director of the Leopold Center for Sustainable Agriculture at Iowa State University. And while wholesale markets, or auctions, benefit the food industry by bringing together larger numbers of growers in one location, they also make it easier for smaller growers to make connections to representatives of big companies and their resources, including refrigerated trucks and bar-code labels.

"If you have a quality product, consistently packaged, don't top dress by taking the worst and putting it on the bottom — all that is the way you build your name here at the auction," Charlie Martin, the Dayton auction's board chairman, said. He proudly stood before a large stack of unblemished yellow and green squash that his 16-year-old daughter picked that morning, wearing surgical gloves to avoid marring their flesh.

The demand for what small-scale farmers have to offer is burgeoning.

_ Wal-Mart last month said it would sell $400 million worth of locally grown produce this year, making it the largest player in that market. Its suppliers include "many Amish and Mennonite growers" who work through third party suppliers, spokeswoman Deisha Galberth said.

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