Crystal Valley adapts to changing industry
Crystal Valley adapts to changing industry
For the first time since Crystal Valley got into the Peruvian asparagus deal almost two decades ago, the firm has experienced a gap in supplies from the South American country.
Rick Durkin, director of business development for Crystal Valley Foods in Miami said that the company is changing with the times and does have multiple asparagus sources to fill the needs of its customers.
While many in the business of importing Peruvian asparagus into the United States have viewed the production source as a seasonal supplier, Crystal Valley has always looked at the country
as a 52-week-per-year supplier. Because of its different growing locations in the north and south, Peru does produce asparagus all year round and has been able to fill supply gaps all year long.
But times and circumstance are always changing.
Mr. Durkin said that Peru’s agricultural production is becoming more diversified and, at the same time, their marketing skills are improving. Adding to the situation are world supply-and-demand factors that have to be considered.
Mr. Durkin explained that 20 years ago when Peru began growing and exporting asparagus to the United States, that crop dominated fresh production in that country. Peru became the dominant player in supplying the United States. It was a symbiotic relationship: Peru needed the U.S. market and the U.S. market needed Peruvian asparagus.
While the country and its asparagus growers and shippers are still very important to the supply situation in the United States, other factors now need to be considered.
In the first place, Peru has found other places to sell its asparagus. It can go to Europe, Asia and Australia with its fresh supplies, and its processed asparagus production has buyers all over the world.
Secondly, Peruvian growers have diversified and are now planting acreage with grapes, citrus and avocados. Growers with land that was once devoted only to asparagus now have a choice, and some growers are taking out their asparagus acreage and planting other crops.
At the same time, Mexico has increased its asparagus production and has become a very good competitor of Peru’s for the U.S. market for many months of the year. Peru still has a hold on the marketplace in the fall and early winter, but during a good portion of the year, it is competing against Mexican producers for U.S. market share.
This all means that Crystal Valley must adapt to these changes — and adapt it has.
“We expect to import about the same number of cartons (1.5 million) that we did last year [from Peru], but we are no longer in a significant growth mode,” said Mr. Durkin. “At this point we are trying to maintain market share for our Peruvian asparagus supplies.”
He emphasized that Peru still has a significant position in the marketplace, but it is different than it once was and it will continue to evolve.
Crystal Valley introduced a new pack last year — an eight-ounce microwavable tip pack — that did very well. “We will continue to grow our sales of that but we are not introducing any other new packs this year,” he said.
Mr. Durkin said the company’s investment in a new facility in Florida two years ago continues to pay dividends. “We went from three loading doors to 18, which has taken a lot of pressure off of us.”
He added that the cooler can handle 7,000 cartons of asparagus, which allows for a very efficient shipping operation every day.
“When we leave here at the end of the day, no longer do we have 30 trucks lined up waiting to be loaded,” he said.