Specialty Crop Industry Facing Uphill Battle This Winter

DENVER, CO – The CoBank 2021 outlook report examines key factors that will shape agriculture and market sectors that serve rural communities throughout the U.S. this year.

The specialty crops sector will continue to adapt to historic shifts in logistics and supply chains this year as the COVID-19 pandemic causes consumers to purchase more food at retail and less through food service.

With thousands of more restaurants expected to permanently close through the winter, specialty crop growers and the supply chains that deliver fruits, nuts, and vegetables will have to continue adapting to a consumer eating more at home.

Some growers, packers, and processors have successfully managed to increase or reroute products into retail channels like grocery stores and home delivery of food boxes.

However, steep financial losses from the loss of food service contracts will ultimately result in the rationalization of some processing assets and production acreage.
(SOURCE: All Ag News)