Square One expects solid fall supplies despite challenge
Rising costs, logistics issues and a challenging ROI situation may reduce total Peruvian asparagus imports to the United States, but Square One Farms President Tim Ryan still expects ample supplies to handle fall and holiday promotions.
Ryan spoke to The Produce News via email in early September and articulated some of the issues while touting his firm’s strong growth in the category. “We continue to have strong year-round production available to support all our growth, program business and promotional opportunities,” said the founder and president of the Hollywood, FL-based firm.
Overall, he noted that asparagus volume from Peru (as of week 32) was down 7.5 percent versus 2021. He said short-term challenges and the long-term effects of low return on investments are important factors, making it difficult for Peruvian growers to maintain supplies. “Having said that, we see strong production ahead for the upcoming spring crop (starting late September/early October) with sufficient volume to support all fall and holiday promotions.”
Drilling a bit deeper into the challenges, Ryan said all production inputs — including labor, fertilizers, packaging supplies, logistics — have registered significant increases in costs: “Due to much higher operating costs — at least 30 percent higher than last year — and overall economic and political challenges that Peru faces, ROI is down and the accessibility to new capital is restricted for many small growers. Obviously, this could have adverse effects on the overall supply from Peru.”
Ryan said the logistics situation is doubly challenging as asparagus is competing against other crops for limited cargo space. “All logistical services — air, ocean and U.S domestic trucking — are under pressure,” he said. “Additionally, there could be supply chain challenges in other markets, such as Europe and Asia, which may drive more exports of grapes, avocados and blueberries to the U.S. market and further increase competition for the already tight cargo space available.”
Ryan concluded on a positive note, suggesting that U.S. Department of Agriculture fumigation protocols, which currently prevent Peru’s organic asparagus from being exported to the U.S. market, should change next year. That would give Peru’s growers an opportunity to compete with that product. Peru growers of grapes, blueberries and avocados have significant organic production shipped to the United States. “While nowhere near the same volume as conventional, organic asparagus is very important for the industry,” Ryan said, noting that Square One sources the category from Mexico during that country’s asparagus season.
Tim Linden
About Tim Linden | 
Tim Linden grew up in a produce family as both his father and grandfather spent their business careers on the wholesale terminal markets in San Francisco and Los Angeles.
Tim graduated from San Diego State University in 1974 with a degree in journalism. Shortly thereafter he began his career at The Packer where he stayed for eight years, leaving in 1983 to join Western Growers as editor of its monthly magazine. In 1986, Tim launched Champ Publishing as an agricultural publishing specialty company.
Today he is a contract publisher for several trade associations and writes extensively on all aspects of the produce business. He began writing for The Produce News in 1997, and currently wears the title of Editor at Large.
