Retail strategies to prepare for organic produce supply challenges, shortagesRetail strategies to prepare for organic produce supply challenges, shortages
Retailers should be proactive in creating contingency plans that include finding local organic produce sources and inventory management to mitigate organic produce shortages. Learn more.

At a Glance
- Supply chain challenges always loom over organic produce because of its short self life and potential import delays.
- Developing partnerships with local and regional organic growers helps retailers maintain their supply of organic produce.
- Keeping customers informed when organic produce is in short supply builds trust and helps them choose alternatives.
The recent announcement that the International Longshoremen’s Association and United States Maritime Alliance have come to a tentative agreement on a new six-year contract ends the possibility of a January strike by dockworkers on East and Gulf Coast docks.
While the agreement prevents what would likely have been organic produce supply disruptions, operational threats still loom, analysts say, noting that retailers continue to operate under a cloud of possible menaces, including weather, organic documentation and tariffs.
Because domestic growers only provide approximately 60% of the organic produce in the U.S., many retailers must rely on imports for continuous availability of high-demand items, including bananas, avocados and berries, says Peter Bolstorff, chief executive officer of InspireSCE.ai, a Stillwater, Minnesota-based supply chain advisory firm.
Growers in California, Florida and the Pacific Northwest dominate the domestic organic product market, with selections from Mexico (avocados and berries), South America (bananas and mangoes) and Europe (figs and grapes) filling the inventory gaps during non-growing U.S. seasons, he says.
Import transportation modes include ocean freight through ports and air freight for high-value perishables. The typical lead time for obtaining imported organic produce ranges from five to 45 days, depending on the origin and transport method, Bolstorff says, noting that ocean freight is slower but economical for bulk imports, while air freight provides rapid delivery of time-sensitive goods.
Importing produce from outside the U.S. can be risky, as transportation lags may lead to product spoilage, inventory shortages, higher costs and subsequent customer dissatisfaction, he says.
“Organic produce is sensitive to delays, requiring specialized cold chain logistics,” Bolstorff says, noting that merchandisers who have concerns about ocean freight “may need to resort to costly alternatives like air freight to maintain freshness. Produce also has a short shelf life, limiting the ability of retailers to build significant inventory ahead of potential disruptions.”
It is difficult for retailers to stockpile organic fruits and vegetables more than a few extra days because of tight expiration dates, says Russell Zwanka, associate professor of food marketing and director of the food marketing program at Western Michigan University in Kalamazoo. “Produce can be compromised quicker than other goods if deliveries are delayed,” he said. “Bananas are a big issue, as there is such a large amount imported.”
Be prepared
Retailers that rely on substantial imports include Tops Friendly Markets, a Williamsville, New York-based operator of about 152 grocery stores in New York, Pennsylvania and Vermont. Jeff Cady, vice president of produce and floral, says the chain offers 120 to 160 varieties of organic fruits and vegetables depending on the season. Selections include bananas from Central and South America; blueberries, blackberries and raspberries from South America; and avocados from Mexico and South America. Stores also import mandarins, lemons, limes, grapes and stone fruit. he says.
Tops prepares for possible import delays by arranging to receive more products from local growers and tapping into local and regional greenhouses, he says.
Carlisle, Pennsylvania-based The Giant Co. also has contingency plans to ensure stores always have enough produce, which includes collaborating more closely with local suppliers, says Chris Keetch, director of produce and floral. Giant operates more than 190 groceries in Pennsylvania, Maryland, Virginia and West Virginia and offers more than 200 SKUs of organic fruits and vegetables in banners that include Giant, Stop & Shop, Food Lion and Hannaford.
Indeed, it is vital that retailers are proactive in preparing for organic inventory shortages, analysts say. In anticipation of the possible dockworkers strike, food wholesaler United Natural Foods Inc. increased its organic produce stock, brought products into U.S. ports earlier and identified alternative ports for receiving produce, says Ron Selders, president of fresh at UNFI.
Communication is key
Keeping customers abreast of the reasons for inventory changes and shortages also is crucial for maintaining goodwill, says Anne-Marie Roerink, president of 210 Analytics LLC, a San Antonio, Texas-based market research and marketing strategies firm. Retailers can provide updates via in-store signage and web pages, as well as encourage conversations with produce department associates, she says.
“It’s important to be transparent with customers about potential shortages,” Cady says. “They need to understand that we are doing our best to mitigate the issues, and we need to make sure they know what’s still available and could be a possible substitution.”
Merchandisers should educate their associates on the “what and why” of situations to help ensure that they provide accurate and complete information, Roerink says. This includes alerting shoppers about the timetable for shortages. Such measures can help prevent occasional purchasers of organic products from making a permanent switch to conventional items, she says.
“There is no bigger detractor of trip satisfaction than an out of stock, so bringing such shoppers back to the organic category following shortages is key,” she says. “It is important to remind them why they initially preferred the organic item, which could be because it is healthier, fresher or better tasting.”
Many organic consumers, however, will revert to their prior purchasing habits following temporary inventory changes, Zwanka says. “Customers are resilient, especially with produce availability, and will move to alternatives until items are back in stock,” he notes.
Read more about:
News