Navigating the Storm: FSS’s strategy to bypass price rises

In the recent wake of rising frozen fruit and vegetable prices, many are left questioning the stability of their food supply chain. These prices, which have surged at an alarming rate, have come as a shock to many, especially given that fresh fruit and vegetable costs have remained comparatively stable. Government data, released this past Thursday, shows a stark contrast between the two sectors.

Broccoli Florets

The storm for frozen produce

While fresh produce prices rose just 1.2% year over year, frozen fruit and vegetable prices leapt by 11.8% in the same period. Even more concerning, frozen vegetable costs escalated by 17.1%, and frozen noncarbonated drink prices rose by a startling 16.3%. Such statistics appear contradictory when juxtaposed with the overall inflation data – U.S. consumer prices increased to 3.2% in July from 3% the prior month, as reported by the Bureau of Labor Statistics.

This surge in frozen product prices is linked to a myriad of global factors. Extreme weather conditions, attributed to climate change, have particularly affected California, which is a major producer of U.S. fruits and vegetables. This state has experienced a tumultuous year of torrential rainfall followed by prolonged droughts, which inevitably impacts farming outputs.

Beyond weather-related challenges, the U.S. farming sector has grappled with rising labor costs and reduced migrant worker numbers, a consequence of government policies and pandemic-induced border closures. Geopolitical issues, like the war in Ukraine, have also influenced the nation’s agricultural decisions, prompting farmers to prioritize wheat and corn planting over vegetables.

FSS Remains a Beacon of Stability

Yet, amidst these challenges, there are industry leaders like Food Service Systems (FSS) who’ve demonstrated resilience. Supported by its parent companies, Superior Foods and Inn Foods, FSS’s vast experience and global approach have ensured that they remain a beacon of stability in these turbulent times. Their strength lies in their:

    1. Global Outlook: With an expansive knowledge of fruit and vegetable supply, sourcing, and manufacturing, FSS offers a global perspective, helping partners navigate supply chain complexities.

    2. Stellar Reputation: A dominant presence in the US, bolstered by influential parent companies with operations spanning Europe, Latin America, and Asia.

    3. Efficient Sales Strategy: FSS acts as a virtual “sales force” for numerous manufacturers, allowing them to augment sales without the overheads of a traditional sales department.

    4. Adaptability: Their ability to offer customized solutions reflects their flexibility and keen responsiveness to market needs.

Global logistics for frozen foods
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