When Charles Darwin proposed his Theory of Evolution, he
probably wasn’t thinking of farmers in San Benito County, but some
have embraced the philosophy to survive, especially at a time when
local farmers are facing pressure from foreign markets where the
labor is cheap and produce abundant.
Hollister – When Charles Darwin proposed his Theory of Evolution, he probably wasn’t thinking of farmers in San Benito County, but some have embraced the philosophy to survive, especially at a time when local farmers are facing pressure from foreign markets where the labor is cheap and produce abundant.
To combat the global competition, some local companies now are rethinking age-old business models, focusing not on increased quantities and reduced costs, but on creating quality, speciality goods that emphasize the American market mentality full of brand conscious consumers seeking products with interesting packaging and gourmet taste that takes little or no time to prepare.
“Food is much more than just sustenance,” said Joe Feldman, vice president of sales and marketing for Pride of San Juan, one of the largest salad mix producers in the country. “It is entertainment, it is family and it’s enjoyment.”
The approach that Pride of San Juan – which makes up a large part of the local $25 million a year spring mix industry – takes is multifaceted. The company, now 500 employees strong, launched a retail product line featuring famous TV Chef Emeril Lagasse, whose face now appears on salad mixes, fresh herbs and other Pride of San Juan products. It also has figured out a way to combat the fierce lettuce competition by selling ready-to-eat salad to time-conscious consumers instead of bulky leaves that need to be cut, washed and combined with other ingredients.
Image branding and convenience are just some aspects of the new, niche marketing farmers are using to stay competitive in an era where local grocery stores sell apricots shipped from Turkey, apples from Washington state and tomatoes and bell peppers from Mexico, in spite of the fact that all of those products are also grown locally.
Brad Van Dam, one of the owners of Marich Confectionery, says the principal reason his company has done well, even in times of economic slowdown, is because they have offered clients – from individual consumers to companies – the chance to design candies that fit their needs and tastes.
“It’s like Starbucks…no one just orders coffee anymore,” said Van Dam. “Instead you order a venti double whipped extra foam latte.”
The company often uses locally grown produce such as walnuts in their candies, but also relies on cherries, blueberries and other fruits from other parts of the country. Since opening in Hollister in 1998, it has grown to some 60 employees.
Marich also stays ahead of the game by marketing their products, which range from $5-10, in catalogs, department and gift stores like Dorothy McNett’s and focusing on the items that bring in the most revenue, said Van Dam.
“It’s about knowing how you make your money,” said Van Dam. “A lot of companies get into business and pursue things that don’t make money.”
In addition to producing their own line of truffles, chocolates, jelly beans and cookies that are sold all over the U.S., Marich does packaging for other companies, which sell their treats under their own names.
Evolving with the changes in the market place is what saved Paul Hain’s walnut ranch, 80 acres of lush orchards, some of which have been in the family for three generations. Decades ago Hain, who farmed walnuts, was warned that one day he might have to rip out his trees to make room for a more lucrative crop. With imports from India and China, walnuts just weren’t fetching the same prices they used to. He winced at the idea, but 10 years ago found himself in a financial crunch that made the off-hand remark seem like a real, albeit depressing, possibility. Instead, Hain switched to organic walnuts and his business picked up. He now makes 30 percent more on organic walnuts than he would of on regular walnuts and three years ago began raising organic chickens on his farm in Tres Pinos.
Today, his ranch processes 20,000 chickens a year, a tiny amount compared to poultry giants like Foster Farms and Tyson. But that’s just fine with Hain, who says that the small output and superior taste are what define his business model.
“We are never going to compete with Asian or African wages,” said Hain. “Instead we have to use technology and the blessing of the soil, water and good crops to add value to our produce.”
The unique approaches are a good way of contributing to the local economy, but the advantage the farmers have now won’t last forever, said Howard Rosenberg, a professor of agriculture and labor management at UC Berkeley. With time, farmers will have to innovate further or face competition from others who have caught on to their approach.
“They have to establish brand names firmly in customers’ minds or face competition down the road,” he said.
Karina Ioffee covers education for the Free Lance. Reach her at (831)637-5566 ext. 335 or [email protected]
