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\\u201cEvery piece of the supply chain literally is being affected by inflation, from availability issues, to transportation, starting all the way down at the plant material and taking it all the way to the consumer.\\u201d

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Ryan Lockman (23:21-23:45)

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In the ladder part of 2021, you\\u2019ve probably experienced several delays in packages or going shopping for items that weren\\u2019t at your local retailer. It\\u2019s clear that we\\u2019re in a crisis with the supply chain and the issues we\\u2019re seeing, especially when we shop for groceries. There\\u2019s a rising cost of goods, inflation, lack of supply to meet demand, and a struggle to get U.S. grown products in front of consumers.

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Lori joined Ryan Atwood, one of the owners of H&J Farms in Florida, a blueberry grower and packer, and Ryan Lockman, the Vice President of Sales and Procurement for North Bay Produce, a long-standing partner with The Produce Moms and marketer of fresh produce. Lockman manages relationships with large grocery retailers like Kroger, Aldi\\u2019s and Meyer, and also distributes Atwood\\u2019s blueberries under the North Bay brand.

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Since Ryan Atwood is someone who\\u2019s on the front lines and starting point of the produce supply chain, he\\u2019s formed a strong opinion as to where the rising cost of goods originated from. Atwood thinks labor costs went up at the start of the COVID-19 pandemic as a result of people deciding to stay home and get out of their 9-5 workforce jobs. In order to attract employees and talent, companies have had to raise their wages (something H & J Farms has done).

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\\u201cGrowers haven\\u2019t received the proper returns for a long time. I wholeheartedly think that our growers have needed higher returns or larger profit margins since I started The Produce Moms.\\u201d Lori Taylor (13:15-13:34)

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Ryan Atwood has experienced a firsthand result of inflation with fertilizer. Every year there\\u2019s a fertilizer bid which, once the bid is received, it locks out the price for the entire year, however this year, Atwood was told fertilizer prices were only good for a mere 20 days. The fertilizer prices he was quoted in 2021 compared to 2020 completely doubled.\\xa0

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Ryan Lockwood also believes we\\u2019re running into some very tough times because \\u201cthe cost of growing fruit is increasing, but also on a daily basis the amount of mobile money the average retail consumer has to use on purchasing groceries is decreasing because of the rising cost of goods in retail.\\u201d

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Every item across the produce department is increasing in cost and the availability is decreasing for the consumer. Consumers still want to eat healthy and buy wisely, but farmers have no choice but to charge a higher price than what the produce item was in the field, which inevitably makes certain produce items unattractive to consumers, such as blueberries.\\xa0

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\\u201cWhen you look at what the price of gas costs and the price hikes we\\u2019ve seen in proteins\\u2026 We haven\'t seen that kind of inflation with fresh produce yet, but even the small hike in price (which is inevitable and will continue) has put commodities within the grocery store and the produce department at risk.\\u201d Ryan Lockman (19:18-19:49)

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We aren\\u2019t sure just yet how retailers and the supply chain are going to respond to the fact that the cost of producing and growing blueberries is rising and the result that creates when trickling down to the point of sale. There\\u2019s a longer lead time for all things in the supply chain, from packaging, to cardboard, to the cost and availability of trucking, warehouse staff, and more. Ryan Lockman thinks lead times are higher than they\\u2019ve ever been in history.

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This also affects our quality of food because when it finally hits the shelf it\\u2019s a week older than it should be and also creates a delay in marketing plans for promotions and sales. Both Ryan\\u2019s want consumers to understand this because it\\u2019s important to know why you have to pay more for a superior product versus putting a subpar item on the shelf for a lesser price.\\xa0

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If you want to play your part in helping decrease our supply chain issues, support U.S. grown produce as much as possible. Relying on produce exports is creating a food security issue for our country and our American farmers and growers need your help.

How to get involved

• Join The Produce Moms Group on Facebook and continue the discussion every week!\\xa0
• Reach out to us - we\\u2019d love to hear more about where you are in life and business! Find out more here.\\xa0

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If you liked this episode, be sure to subscribe and leave a quick review on iTunes. It would mean the world to hear your feedback and we\\u2019d love for you to help us spread the word!