Click here for the photo report of the company's facility
“The business is challenging,” said Quiring. “But you have to move forward, because rarely does a company stay in business that goes backward.” Some of the issues that will become more pressing going forward include rising production costs. Products from countries with lower labor costs also make for stiffer competition in the North American market. But using that last challenge as a way to spur innovation is just one way that he thinks Nature Fresh Farms can be successful going forward.
“If you see where money is invested in technology, it's in Holland, the US, Israel and Canada – all places where labor costs are high.” Whereas growers in Mexico or Central America don't have as much of an impetus toward automating their operations, Ontario-based Nature Fresh Farms certainly has a lot to gain from anything that will cut costs while still allowing them to grow a high-quality product – especially now when the market for greenhouse peppers has been lagging.
Click here for the photo report of the company's facility
“About 70 percent of our production is exported to the US, and the currency exchange rate is hurting us right now,” said Quiring. “Also, while the Canadian market share had been growing, it's now leveling off.” He explained that the economic situation in the US has a lot to do with the tapering off of growth, and that consumers might be less inclined to buy high-quality product when there are economic hardships looming. Nonetheless, Quiring believes the path to continue success is to not skimp on quality.
“Our goal is not to be the cheapest,” he said. “Our goal is to be the best.” That includes continually testing new varieties to see what could work in the market. Nature Fresh currently has about 150 new peppers and 150 new tomatoes in trials on 4 acres in one of their greenhouses. The aim is to find varieties that satisfy both retailers and consumers.
Click here for the photo report of the company's facility
“We've been getting calls about specialty peppers, especially hot peppers,” said Quiring. “A lot of ethnic communities and niche groups are buying hotter peppers.” So in addition to the traditional yellow, orange and red peppers which dominate the market, they also invest in varieties to satisfy or anticipate new trends. At the same time, Quiring noted that they have to proceed cautiously with specialty lines or risk growing too much of a niche product which the current market can't support. For that reason, Quiring makes it a point to convene his team charged with growing new varieties with his sales team to make sure that the new products Nature Fresh rolls out are in line with what the market wants.
“I've found that if you supply what the customer needs, business is easy,” he said. “But if you only supply what you want to sell, business is hard.” Right now, the retailers are transitioning from Southern Winter production to getting their produce from Northern greenhouses. For that reason, Nature Fresh is increasing volume, and Quiring noted that crop production is in full gear and they have good volumes ready for the demand they anticipate. Likewise, suppliers also have to anticipate consumer needs, and satisfying both retailers and consumers can be a challenge, and it's one that Nature Fresh Farms is tackling with the help of social media.
Click here for the photo report of the company's facility
“We want to put a face to our product,” said Nature Fresh Farm' head of Social Media, Randy Evans. “We want to put our message out there and engage with consumers.” That message includes the twin goals of profit and social good.
“We want people to eat healthy, and that's in our own best interest, but it's not a bad goal,” said Quiring. They also want consumers to see the energy-saving innovations they use, they want consumers to see the passion which their workers have for growing a premium product, and they want to them to see the things that go on behind the scenes. They want consumers to see those things because Nature Fresh Farms believe it will spur consumers to buy their product. But, ultimately, they do those things because it will help them survive in a tough market.
“Efficiency, overall, will keep us in business,” said Quiring. “Those that make good use of what they have will be successful.”
For more information:
Nature Fresh Farms
Tel: +1 519-326-1111
www.naturefresh.ca
