Fresh Produce Wholesalers Industry Profile

Companies in this industry distribute fresh fruits, vegetables, spices, and herbs. Major companies include Caito Foods Service, Coast Citrus Distributors, FreshPoint, and Tom Lange Company (all based in the US), as well as Fresh Produce Group (Australia), Fyffes and Total Produce (both in Ireland), IG International (India), Oppenheimer Group (Canada), and Tokyo Seika (Japan). Vertically integrated fruit and vegetable producers such as Chiquita, Dole, and Del Monte have major global distribution operations.

Worldwide, about 865 million metric tons of fruit and 1.1 billion metric tons of vegetable and melon crops are produced each year, according to the Food and Agriculture Organization of the United Nations. Increased global trade in fruits and vegetables creates opportunities for fresh produce distributors. Developing countries, especially those where both populations and incomes are increasing, are expected to account for growth in demand for higher-value imported foods such as fresh fruits and vegetables.

The US fresh produce wholesalers industry includes about 4,800 establishments (single-location companies or units of multi-location companies) that generate annual revenue of about $88 billion.

COMPETITIVE LANDSCAPE

Demand is driven by consumption of fruits and vegetables. Profitability depends on maintaining a high quality and varied selection of produce and on efficient operations. Larger distributors benefit from economies of scale in purchasing and transportation. Smaller companies may compete by specializing in certain products, such as tropical fruits or organic products, or by focusing on a geographical ...