Los Angeles: A healthy fresh flow despite variant woes

No matter what’s happening in the country, the produce industry in Los Angeles remains positioned for success.

The area’s busy market, the Los Angeles Wholesale Produce Market (LAWPM), enjoys its prime location and the advantages of being a day’s drive from major growing areas throughout the state and Mexico.

According to the U.S. Department of Agriculture (USDA), nearly half of the country’s vegetables and over three-quarters of the country’s fruits and nuts are grown in California, while neighboring Mexico augments supply with a steady flow of imports.

It’s in close proximity to the Los Angeles/Long Beach port complex as well as Los Angeles International Airport. Major freeways surround the LAWPM, creating easy access for trucks delivering to downtown L.A. and making their way outward to western states and across the United States.

Besides being in the right place geographically, the L.A. produce scene benefits from consumers still placing a high value on produce even while cutting back on other purchases. Health and nutrition remain a priority, so fruits and vegetables are a good use of their food dollars.

For many Angelenos, this includes organics, with sales continuing to climb in L.A. County grocery stores over the last five years—up 22 percent according to the Organic Produce Network.

Markets: Neighbors, not Siblings

The historic 7th Street Market, the original terminal market, has occupied roughly the same five acres in downtown L.A. for over 100 years. 

As changes in transportation and marketing made the 7th Street Market less relevant, the ‘new’ LAWPM opened on 30 acres next door in 1986 with more room for large trucks, dozens of bays, and refrigerated warehouses.

The 7th Street Market is now home to mostly small vendors and distributors, as well as creative workspaces, restaurants, and boutiques.

On Sundays when the produce vendors are closed, the area becomes Smorgasburg, a showcase for unique foods, crafts, and merchants.

Omar Mendez of Parikuni Produce, Inc. BB #:282560 is an importer and shipper just down the street from the dual markets and says the presence of ICE officers has had an impact.

“It creates an environment where people are afraid to shop, impacting sales. Street vendors who’d normally come four to five times a week will now shop once or twice per week, which takes a toll on the mostly Hispanic merchants and customers.

“When word gets around that ICE is in the area, people won’t come and it can affect foot traffic for days,” he adds. “The LAWPM, with its bigger tenants, doesn’t let ICE onto their property.”

Rocio Aguilar, sales manager for grower, importer, and distributor Maui Fresh International, LLC BB #:193211 on the LAWPM, mentions less foot traffic, though considers it a sign of the times.

“Fewer people come in person; they use their phones instead of physically walking the market,” she says, but she feels actually visiting the market is still best.

“You really need to see and feel the products and talk to the people handling them. It’s not just about price, but specs and quality. Walk-in business is down, but pre-orders are up—you just have to adapt.”

Katiana Valdes, marketing director for Crystal Valley West, Inc. BB #:285189, an importer and shipper, is of the same mind.

“The LAWPM is an important hub for the Southern California produce industry. We opened on the market in 2012 and expanded with additional bays in 2022.

“What makes the market valuable is the concentration of wholesalers, distributors, and buyers in one location and the access it provides to both domestic and imported products,” she says.

“We continue to see the market evolve as companies adapt their facilities and operations to changing customer expectations, food safety requirements, and the need for greater efficiency.”

Challenges, Cyclical and Otherwise

Weather remains a significant challenge to California’s produce industry and the state has had its share of extremes this year.

“The theme this year is climate change—everything came on early and ended early, particularly cherries and California stone fruit. There’s no ‘normal’ anymore,” observes Talia Shandler, COO of Shapiro-Gilman-Shandler Company BB #:113670, a receiver and importer.

Valdes agrees. “Weather is always one of the biggest variables in produce. We have El Niño this fall and that’s affecting supply and pricing of many of the products we sell, including asparagus.”

“Overall, demand for fresh produce remains steady,” adds Valdes. “Having a broad customer base in Southern California continues to be a major advantage. At the same time, it has been a challenging operating environment.

“Labor, transportation, packaging, and other costs remain important considerations. There’s also more uncertainty surrounding trade policy than we’ve had in recent years, which makes purchasing and planning more complicated.”

Parikuni Produce imports avocados, limes, and tomatoes from Mexico. Mendes, too, mentions the weather, but there’s another challenge in the mix.  

“Heavy rain impacts harvesting fruit, but more of an issue are threats from cartels, which have on occasion threatened farmers and closed down roads to stop shipments,” he points out. “Luckily for us, weather and cartel activity have caused only minor disruptions.”

“Refrigerated imports are prioritized, actively managed, and moved with a sense of urgency through our gateway to ensure freshness on delivery.”

Nearby Port News

While the ports of Los Angeles and Long Beach sit side-by-side in San Pedro Bay, about 35 miles south of downtown Los Angeles, they’re managed separately by their respective city governments and distinct operational entities.

Together, they’re the largest port complex in the United States, handling 40 percent of all containerized imports into the United States.

Dr. Noel Hacegaba, the Port of Long Beach’s CEO, says the port is among the top ten in the nation for refrigerated product, with produce imports up 28.8 percent over the same period last year.

Despite the increased activity, Hacegaba points out, “There’s minimal dwell time for cargo bound for inland destinations. Refrigerated imports are prioritized, actively managed, and moved with a sense of urgency through our gateway to ensure freshness on delivery.

“Earlier this year, the Port of Long Beach launched CargoNav, an innovative digital platform that provides cargo information in real time, allowing our supply chain partners to better plan their operations.

“The technology increases speed to market by helping supply chain participants track shipments, plan operations, and maximize efficiency,” he notes.

As for tariffs, Hacegaba anticipates a decline in fresh grapes, blueberries, and asparagus from Peru due to a 12.5 percent tariff announced in July. Many Peruvian items were duty-free under the U.S.-Peru Trade Promotion Agreement, but the most recent tariffs could affect the region’s produce.

Concluding Thoughts

Just 75 years ago, Los Angeles was the top agricultural county in the United States.

As a growing population pushed out farming, the area’s legacy and geographic location, along with 10 million residents, still assures its position as a thriving hub for fresh produce.

With the largest produce market in the country at its center, the LAWPM is a destination and launching point for all things fresh from California.