US growers look to decrease labor needs after minimum wage hikes
“Automation technologies have always been a long-term research priority and interest, but the fact that the inflation of wages is only going to accelerate, means the break-even point for automated technology is going to come along even sooner,” said Jon DeVaney, president of the Washington State Tree Fruit Association in Yakima, Washington.
One concern about the increased labor costs is its effect on the United States ability to compete with countries like China in the global market who benefit from cheaper labor. Half of the world’s apples are produced in China, which has a more relaxed regulatory climate and lower production costs, he said.
Ian LeMay, director of member relations and communications for the California Fresh Fruit Association, echoed those points.
“Thirty-two other states grow peaches, so when my growers are having to pay a base rate of $10.50 per hour, and other states follow the federal minimum wage of $7.25, it already puts my growers at a disadvantage to try to take their produce to market against other states,” he said.
DeVaney said he’s also heard more discussion about automation technologies. “If you now have a predictable wage increase, you can factor out your increasing costs of labor versus a new packing line or new orchard platforms,” he said.
Some technologies, such as automated harvesters, are going to require more research and demonstration in the field before implementation, LeMay said. In short, they’re no quick fix. “Down the road, there may be ways to mitigate some of the labor needs, but they’re not going to be here in the next 30, 45 days,” he said.
source: goodfruit.com
