San Miguel Produce is tripling production to meet demand
An ambitious, bicoastal plan is underway for the Oxnard grower to boost the size of its processing plant and partner with another grower to build a similar processing plant in Lyons, Ga.
San Miguel, which has a nearly 40-year history in Ventura County, has been growing specialty greens -- kale, chard, collard, beet -- for almost 20 years. But it's just within the past several years that consumers have taken to eating healthier and buying organic produce, igniting a steady surge in demand for kale and organic greens, Berk said.
"We've had 30 to 40 percent annual growth for the last three years," said Chief Operating Officer Jan Berk. "Organics have been a big part of our growth. Kale is a big part of that growth."
San Miguel's organic product sales are up 48 percent so far this year over last year, she said. And kale -- the company grows three different kinds -- is up 62 percent.
Kale and other leafy greens are picking up speed within Ventura County's $2 billion agriculture industry, growing from $5 million in 2010 to $25 million in 2013. Values for spinach, greens, lettuce and Oriental vegetables have also risen, in some cases sharply, since 2010.
Acreage dedicated to organic produce has also increased in the county. It now makes up 6,400 acres, up from 5,200 acres in 2010.
San Miguel's more than 30-year-old processing plant in Oxnard is bursting at the seams. Because it ran out of cooling space, fresh packaged products are being sent off-site, Berk said.
Once construction is complete -- expected by 2016 -- the first-ever addition will increase the plant's size from 20,000 square feet to more than 60,000 square feet, with new equipment for additional production lines.
The other half of San Miguel's expansion will take place near the East Coast to better serve existing customers in the Midwest and East Coast.
L.G. Herndon Jr. Farms Inc., a family grower that packs and ships sweet potatoes, leafy greens, corn and onions, will exclusively grow greens for San Miguel, Berk said.
Herndon has been growing for San Miguel for about 20 years, she said, and is building a 20,000-square-foot processing facility that will replicate the Oxnard operation. San Miguel will share in running the plant, which is expected to be completed in November.
Source: businessweek.com
