Tomato repacking - whys and wherefores
It is only speculation at this point, but perhaps part of the difficulty in the FDA's traceback investigation - gaining some speed but still crawling along at this point - may come from the practice of co-mingling of fruit from different origins by tomato repackers. One respected industry leader told me recently that co-mingling of product from different origins may be done for a variety of reasons, but perhaps the main two factors would be creating a more consistent quality/maturity pack and altering the price point by mixing less expensive (but not necessarily poorer quality fruit) with more expensive fruit. From a broader perspective, The Packer's Tom Burfield recently looked at the role of repackers in the tomato business:
From the June 2 edition of The Packer:
When a buyer opens a carton to find tomatoes of consistent color and size, he may well be observing the handiwork of a skilled repacker.
"Repackers are extremely important in our business," said Jeff Dolan, field operations manager for DiMare Newman, Newman, Calif.
Whether a farmer grows mature-green or vine-ripe tomatoes, there's an inherent lack of uniformity in ripening, Dolan said. The repacker's job is to put together a uniform box for customers to use that day or within a couple of days after they receive product.
With rising labor costs, retailers want to be able to open a box and stock their shelves directly from the carton, said John Lupul, president of JTL Produce Sales Inc., Stockton, Calif. They don't want to have to worry that grade or color will be inconsistent.
Repackers probably buy most of the tomatoes that are on the market these days, said David Cook, sales manager for Deardorff Family Farms, Oxnard, Calif. He estimated repackers buy 90% of the mature-green tomatoes alone.
"They are a very important part of the business," he said.
Besides tomatoes, they typically repack squash, beans and cucumbers because they are all temperature-compatible, Cook said.
Most produce houses have a tomato department where they repack themselves or they deal with repackers.
Andrew & Williamson Fresh Produce, San Diego, has reduced its reliance on repackers by introducing a customer-direct program over the past five years, said Mark Munger, vice president of marketing.
In the past, 97% of the company's tomato business went through repackers.
"Repackers add a lot of value for most shippers by making packs more consistent," Munger said.
A company assumes more risk when it makes the decision to deliver directly to a retailer, Munger said. Repackers reap the benefits of an industry that to a large extent is not willing to take that risk.
Although Andrew & Williamson now delivers most of its own product direct, repackers still play an important role.
"For the most part, we do a pretty good job of delivering direct, but there are times when we want another set of eyes on (tomatoes) before they go to our customers," Munger said.
Quality issues sometimes arise when the company transitions from one growing area to another, he said, and the expertise of repackers, whom Munger refers to as "partners in profit," can come in handy at those times.
But industry advances may reduce grower-shippers' reliance on repackers in the future, said Brian Bernauer, sales director at Fresh Pac International, Oceanside, Calif.
The proliferation of shade houses in Baja California and improved tomato varieties means that "consistency of size, color and quality is so much better that most of the (product) doesn't need to be repacked anymore," he said.
Repackers were needed because of inconsistent coloring and occasional scarring that resulted from the variables involved with growing a crop outdoors, he said. Shade houses help a grower produce tomatoes that are much improved.
"I'm not saying (grower-shippers) don't need and use repackers," Bernauer said, "but their whole role may change and shift a little bit."
Before Andrew & Williamson started doing most of its own repacking, salesmen had no idea where the company's product would end up, Munger said. Now, they can tell which customer will receive which box, but the change did not come without challenges.
Repackers can deliver the color a buyer wants seven days a week.
"Our challenge was to meet repackers' standards," Munger said, and that was no easy task.
"It means you've got to go all the way back to the field and redesign your entire program to make sure you've got a quality focus and that you understand your product is ripening after it leaves your facility," he said.
Most repackers are excellent operators, Munger said.
"They know the product and their customer base," he said.
When looking for a repacker, Dolan said, a grower-shipper should develop a relationship with firms that buy on a consistent basis and pay in a timely manner.
TK: How will timeworn strategic and intelligent decisions by repackers to maximize their utility to customers be altered by new food safety/traceability concerns? That's a big question as Congress, FDA and industry work through solutions to make the current outbreak the last of its kind. In any case, accurate record keeping will be much important to all links in the tomato supply chain.
Labels: 5 a Day, FDA, Fresh and Easy, Salmonella investigation, The Packer, tomato repacking, tomatoes and salmonella, traceability
posted by Tom Karst @ 10:03 PM
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