Concentrating on four core products — potatoes, onions, yams and asparagus — Los Angeles-based Progressive Produce Corp. has seen significant growth in its organic sales over the past couple of years.

Scott LeimkuhlerScott Leimkuhler, a sales manager for the firm and son of President James Leimkuhler, admits that his relatively short tenure with the company (two years) probably has something to do with his position in the organics department. “But I think it is also because I am younger and have some understanding about the people who buy organic produce.”

He believes there is great growth potential in the organic category fueled by both diehard organic consumers as well as younger consumers entering the marketplace who are very interested in what they put in their bodies. He said Progressive’s sales of the organic category are both to retailers that specialize in that type of product as well as to the same customers that purchase conventional produce from the firm. “We have received some very good support from several major conventional chains that has helped us grow our business,” he said.

Each of the four commodities in which the company offers an organic option has its own set of dynamics. As far as potatoes are concerned, Progressive offers organic options in russets and red potatoes as well as in several different varieties of fingerlings. The potatoes are offered in a variety of packs as well as loose, but Mr. Leimkuler said typical potato pricing called for the development of a different size bag for the organic potatoes. “Potatoes are usually seen as a value item,” he said, “so to get the correct price points [at retail], we offer the organic potatoes in a smaller pack. For example we push the three-pound bag [for organics] rather than a five-pound bag [typical for conventional potatoes].”

Onions are a bit different, as most onions tend to be sold at retail in the loose form and that is the same for the organic offerings. At f.o.b., the 40-pound carton dominates the organic business for Progressive.

Because of the misshapen nature of yams, Mr. Leimkuhler said yams — whether organic or conventional — are almost always sold in a hand-packed carton and sold loose at retail.

Asparagus is often sold in a variety of value-added packs at retail, but currently Progressive only participates in the bulk pack market with an 11-pound and 28-pound carton for both its organically grown product.

Mr. Leimkuhler said that while the company is always looking to expand its product line, it has no pending plans to do so with organics in the foreseeable future. “We know there is opportunity out there and we work closely with our growers on developing those opportunities, but right now we are concentrating on these four core products. Our growers are expanding their organic acreage and we see continued steady growth for our organic program.”

Like the end user, Mr. Leimkuhler said the organic grower blurs the generational lines. He does see many second- and third-generation growers who have taken over the growing operation from their fathers and have gotten into the organic business. “But we also have some old-time guys that have been growing organically for a long time.”

For the most part, he said, the growers that market their organic produce through Progressive have committed to that technique and do not also grow conventional product. He added that most of the firm’s growers for these four items are separate from each as it is rare that a potato grower grows onions or that an onion producer also grows yams. “They are different growers because each of the crops tends to be grown under different conditions and need different soils.”

Asparagus is very different as it is usually produced under totally different circumstances and in different regions than the other three crops.

Mr. Leimkuhler said Progressive’s growers produce these crops all year round, giving the company marketable supplies of organic produce 365 days of the year.