1. The need as indicated by stakeholders: The research proposed in this project will address stakeholders needs identified by the Association of Public Land Grant Universities, and the Experiment Station Committee on Organization and Policy—Science and Technology Committee, in their 2019 “Science Roadmap for Food and Agriculture” document (https://bit.ly/2K2JNYh). Since S-1067 participants represent various US regions (25 different US states), it was important to identify the needs of US stakeholders as a whole. Below are the stakeholder needs [identified by the APLU committee, and complemented by the views of S-1067 participants] that this project will address:

• The need for US food and agricultural producers to be competitive in a global marketplace.


• The need for food and agricultural systems to be economically, environmentally, and socially sustainable.


• The need for US agriculture to adapt to and contribute to the mitigation of the effects of climate variability.


• The need for resilient supply chains that can adapt to unforeseeable shocks.


• The need for safe, healthy, and affordable foods.


• The need to address global food security and hunger.


• The need to be good stewards of the environment and natural resources.

In addition to these stakeholder needs, project members draw on their working relationships with industry associations and programs in their state/region to frame current research and extension activities, and future collaborative work.

1. The importance of the work, and consequence if the work is not done.

Fresh fruit and vegetable consumption has an important role in the efforts to protect individuals against serious and costly chronic diseases such as obesity, heart disease, type 2 diabetes (Center for Disease Control and Prevention (CDC), 2018), and conditions that have been identified by the CDC as some of the underlying conditions that put individuals at a higher risk for severe illness due to COVID-19 (CDC, 2020). Demand for fresh produce has been increasing in the US and growth is expected to continue due to governmental efforts to increase produce consumption per capita, as well as an increased number of marketing and promotional messages focusing on the benefits of eating fresh fruits and vegetables (USDA, ERS, 2020; Food and Nutrition Service, USDA, 2019; Minor and Perez, 2018; Cook, 2011).

Even though currently US individuals are eating more fresh fruits and vegetables per capita than in 1970, the average US diet is still not aligned with the 2015-2020 Dietary Guidelines for Americans for fruit and vegetable consumption (Stewart and Hyman, 2019; USDA, ERS, 2020; CDC, 2018). Therefore, we anticipate government efforts to increase fruit and vegetable consumption will continue.

Over the past five years, a large percentage of retailers have consistently identified the produce department as one of the top three most successful in generating sales and driving traffic (Progressive Grocer, 2019). The popularity of fresh produce offers considerable potential for enhanced marketing revenues if producers can recognize and harness opportunities emerging from changes in food purchases. The produce industry is already taking advantage of the increased popularity of fresh produce among consumers by finding ways to better address consumer needs. For example, a collaboration between Washington State University researchers, tree fruit growers, and industry representatives resulted in a new apple variety (Cosmic Crisp) designed to make “consumers happy” (Hollenbeck, 2019).

Meanwhile, producers and consumers need to be informed about the emergence of new business strategies, regulations, and policies that may influence their confidence in (consumers) or competitiveness within (producers) this quickly innovating food marketing sector. An example of these regulations is the 2018 Food Safety Modernization Act (FSMA), which implicates new quality assurance and safety measures across the entire food supply chain (USFDA, 2020). Food safety incidents reduce produce demand and increase the costs of farms supplying fresh produce in the US; the FSMA is expected to reduce such incidents (Bovay, Ferrier, and Zhen, 2018). Another example is the Farm Workforce Modernization Act that passed in the House of Representatives on December 11, 2019. This act proposes meaningful reforms to the H-2A agricultural guest worker program to better fit the needs of the agricultural sector (US Congress, 2019). Because the produce industry depends heavily on labor, this act has the potential to improve the viability of the produce industry and its capacity to meet the increasing demand for fruits and vegetables (Kroger, 2019). One more example of these regulations is the recently launched (January 2020) GMO labels regulations in the US. This is an important market development for all food categories, including fruits and vegetables, that needs to be studied more closely.

Demand trends and implications for the fresh produce supply chain

Consumers continue showing interest in foods produced in unique ways, including organic, local, pesticide-free, free of genetically modified organisms (GMOs), environmentally sustainable (Bir et al., 2019; Chen et al., 2018; Govindasamy et al., 2018; McFadden and Huffman, 2017; Rana and Paul, 2017). These individuals and households keep fueling changes in the food system as they seek to purchase produce through diverse channels ranging from direct markets (e.g., on-farm markets, farmers’ markets, community supported agriculture, pick-your-own, and roadside stands), to more traditional supermarkets, warehouse clubs, and big box stores (Low and Vogel, 2011), with expectations as broad as picking their own produce to highly branded products with 3rd party certifications. This evolution has led to a higher number of farmers considering new ways of producing and marketing their produce.

The COVID-19 pandemic is an example of how rapid changes in the food systems where consumers changed where and how they consume foods, caused for farmers to be forced to change production and marketing practices to satisfy consumer needs. In the midst of the COVID-19 pandemic, producers have lost substantial sales to foodservice outlets, including restaurants, schools, and hotels, and also adjusted to changes in consumer demands based on various states’ “stay-at-home” orders. The COVID-19 pandemic has led to major shifts in both supply and demand for fruits and vegetables in the United States; some of these may end up being short term effects while others could have long-lasting implications in the produce industry. One of the most immediate and important impacts of the COVID-19 pandemic on the fresh produce supply chain is related to the realignment of this supply chain due to the near closure of all foodservice outlets and the need to satisfy the needs of consumers buying fresh produce almost entirely through the retail channel (Richards and Rickard, 2020). Within the produce sector, we saw increases in fruit and vegetable sales in retail food markets, but witnessed a much larger shift in purchases of frozen fruits and vegetables. Also, since the start of the pandemic, consumers have markedly increased their online food purchases. This shift is expected to affect purchase patterns for consumers, and have potentially large implications for food retailers, especially smaller retailers that participate less in online food sales.

Additionally, there is some evidence that the COVID-19 pandemic has potentially solidified consumer interest in direct-to-consumer market outlets (e.g., CSA) that are likely to be less vulnerable to the food supply chain disruptions we have observed (Hobbs, 2020), yet the long term impacts are still to be determined.

The supply-side

On the supply side, producers are considering production practices, technologies, and technology innovations that target consumer preferences and needs, and align with their profitability and risk preferences. For example, plastic mulches are extensively used in specialty crop production to suppress weeds and conserve water, among other benefits, but as consumers increase their awareness of the risks associated with plastic pollution, they demand or become interested in production practices that reduce plastic pollution (Chen et al., 2019). Producers are using or considering using biodegradable mulches to not only reduce plastic pollution but also to reduce labor associated with end-of-season activities. This addresses consumer preferences, reduces farm risk associated with labor access, and improves farm financial viability and long-term sustainability (Velandia et al., 2020b). Other production practices and technologies addressing these three goals (e.g., consumer preferences, farm business financial viability, and risk) include gene-editing technologies, mechanical aids, among others.

An important concern on the supply side of the fresh produce industry is labor availability that could satisfy production needs and consumer demand. The COVID-19 pandemic has made evident that disruptions to the availability of agricultural labor can have serious implications on the supply (and price) of food products.  Because fruits and vegetables are heavily dependent on agricultural labor, any pandemic event that causes a large share of workers to become ill will have significant effects on the supply of produce. This is particularly worrisome in the fresh produce industry given the number of agricultural workers involved and the close proximity for which they work and live. Therefore, it is important to understand how labor availability disruptions could affect the supply of fresh produce, and how producers and distributors adjust to these disruptions in the short and long-term.  

Consequences if the proposed work is not done

Despite the expectation that the fruit and vegetable segment of the food market will continue growing, little is known about how consumer preferences and food supply chain partners practices will change in response to new purchasing environments that could be created by climate change, or unforeseeable events such as the current COVID-19 pandemic. Furthermore, little is known about the impact these changes will have on fruit and vegetable producers’ decisions to adopt new technologies and practices, the changing coordination and supply chain responses of fruit and vegetable enterprises, or the response to regulations and policies developed to oversee and guide new innovations in this sector. In short, if this work is not done, producers, wholesalers, and retailers are likely to remain reactionary to domestic and global shifts in consumer behavior, and policy may be developed without a full assessment of potential implications for consumers, producers, and other fruit and vegetable industry stakeholders.

1. The technical feasibility of the research

Members of this committee have a long history of building industry and governmental partnerships in their states and nationally to develop research priorities. Moreover, past projects and publications, highlighted throughout this proposal, illustrate their ability to secure competitive grant funding, necessary secondary data, construct primary survey instruments, and develop case studies that are appropriate for the needed research.

However, each type of research approach (e.g., survey, experimental auctions, analysis of secondary retail scanner data, simulations) has its challenges and limitations. One value of working together is that the team can give and receive feedback on survey instruments, compare the characteristics of specialty crop supply chains across states, leverage our collective resources to respond to emerging and pressing research needs, and collaboratively problem solve for the benefit of supply chain stakeholders in our respective states. 

The only barriers we see are decreased funding and institutional support for some research activities due to the economic ramifications of the current COVID-19 pandemic and staffing shortages at key government partner agencies (e.g., USDA NIFA and USDA ERS). That said, as researchers, we are problem solvers. For example, even during the current pandemic, members in different participating states, including Colorado, North Carolina, Ohio, Tennessee, and Washington, are mobilizing to support the specialty crop supply chains and other agricultural producers through collaborative research initiatives and partnerships with industry organizations, non-profit organizations, and state agencies.

1. The advantages of doing the work as a multistate effort

A multistate effort that facilitates inter-state coordination and collaboration is desperately needed. Research and extension programs focused on economic considerations of fruit and vegetable production and marketing have historically received less attention relative to commodity crops, or meat animal production (in geographic areas where this is concentrated). Many agricultural and/or applied economics programs have one or very few faculty members focused on these products. Given these limited human resources, states face research and extension capacity constraints when trying to respond to the wide breadth of fruit and vegetable issues that need to be addressed.

Although they may differ in their details, many of the economic and supply chain challenges of fruit and vegetable production and marketing are often similar within regions. Thus, obtaining information and resources concerning a specific crop from another nearby state, and adapting it to local circumstances, or conducting research and developing materials through collaborative efforts, offers a more efficient approach to this work. Furthermore, as fruit and vegetable production and processing are seasonal, many industry stakeholders have a presence in several states to assure product availability, resulting in many S-1067 members overlapping in the specific industry stakeholders they support.  Finally, assessments of consumer demand frequently examine consumers over a broader geographic area than a single state. Here again, inter-state collaboration offers significant benefits. 

We also believe that a multistate approach is justified in terms of pooling research expertise and leveraging the impact of our deliverables through high profile venues. A few examples of this collaboration that have occurred in the current project include:

• A special issue in the journal Choices--on the topic of food loss and waste--guest edited by members Kathryn Boys (NC) and Brad Rickard (NY), with additional contributions from Karina Gallardo and Jill McCluskey (WA).


• A special issue in the journal Choices--on the topic of maturing local food systems--guest edited by members Dawn Thilmany (CO) and Tim Woods (KY), with additional contributions from Margarita Velandia (TN) and Becca Jablonski (CO).


• Successful grant collaboration: WA, NY. 2017-2021. VitisGen2: Application of Next Generation Technologies to Accelerate Grapevine Cultivar Development. PI: B. Reisch (Cornell). USDA-NIFA-SCRI ($6.6 M). This project utilizes plant breeding and genomics approaches to improve grape characteristics and enhance the economic and environmental sustainability of grape production. The economics team evaluates the consequences of introducing new grape traits, including impacts upon cost, yield, revenue, profit, pesticide use, and the environment.


• Successful grant collaboration: WA, MS. 2019-2023. VacciniumCAP: Leveraging genetic and genomic resources to enable development of blueberry and cranberry cultivars with improved fruit quality attributes. PI: M. Iorizzo (NCSU). USDA-NIFA-SCRI ($6.4 M). This project aims to establish a nationwide coordinated transdisciplinary research approach to develop and implement marker assisted selection (MAS) capacity in Vaccinium crops (blueberry and cranberry) breeding programs, to enable breeders to select and pyramid fruit characteristics (FCs) that positively contribute to fruit quality and market value. The economics team aims to enlarge market potential, and increase consumption of Vaccinium fruits by using socio-economic knowledge of consumer preferences to inform breeding.


• Successful grant collaboration:KY, SC. 2018-2020. Measuring and Building on Local Food System Vitality for Communities in the South. USDA-NIFA ($493,560). This project refines and uses an assessment tool - a Local Food System Vitality Index - to evaluate how different aspects of a local food system (LFS) are 1) valued by resident consumer and producer groups and 2) performing according to stakeholder expectations, in 16 communities in the US South. Results from this study are being used to suggest LFS development strategies for these 16 communities.


• “Communities of Practice” were built to analyze the economics of local foods with partners in NY, VT, IA, TN, WI, MI, FL, WA, NC, IN; outlined in the Toolkit to Assess the Economic Implications of Food Systems.


• 35 joint paper sessions at agribusiness, food distribution, agricultural economics, and food system conferences.

These examples reflect the significant legacy of leveraging collaborations that have been generated by the previous iteration of this project. Moving forward, it is anticipated that the S-1067 team will develop at least one multi-state research project during the next project’s term (by 2024). This proposal will target one of the relevant USDA’s competitive grant programs, such as the NIFA AFRI Foundational Program or Specialty Crop Research Initiative. In addition, as several of our committee members also have extension roles, we plan to collaborate on three to four grant proposals to support farmers’ markets, local foods, price discovery in alternative markets, and adoption of production practices or technologies addressing consumer needs. Finally, the project team will collaborate in developing a special issue in a peer-reviewed journal, highlighting the outcomes resulting from the objectives proposed in this project.

1. Likely impacts of successfully completing the work

The research generated by S-1067 members will have benefits reaching all aspects of fruit and vegetable production and processing practices, marketing, and consumption. Consumer demand drives fruit and vegetable production, processing and marketing decisions. A majority of consumers share concerns about fresh and processed fruit and vegetable product availability and quality, caloric and nutritional sufficiency, and product safety. Layered upon this, consumer tastes, preferences, and values can shape consumer purchase and consumption decisions. This has resulted in the proliferation of food production, process, and handling standards, certifications, and labels with claims concerning socially and environmentally responsible production characteristics, geographic origin, organic status, and other attributes.  The use of these voluntary programs enables firms to transform fresh commodities into high value differentiated food products.

Outcomes of this project proposed objectives are expected to provide benefits for businesses, government agencies, and technical assistance providers who seek to improve the performance of the industry with better information and assessment of areas where market performance could be more efficient or effective. The research generated by S-1067 will be a valuable input to improve the ability of the USDA, food companies, and university researchers and extension programs that support producers and food manufacturers to develop products that target consumer preferences and needs. The information and resources generated by the S-1067 team members will enable these programs to better help producers understand the cost and benefits of adopting production and processing practices that address the changing production environment and consumer preferences and needs, as well as labels that aim to address those consumer needs. 

Project team members will develop and update studies related to marketing issues that affect both producers and consumers, including studies which assess producer acceptance and willingness to use production/processing practices, novel technologies, technology innovations that address consumer needs; short- and long-term costs and benefits of adopting these practices and technologies at the farm and industry levels; benefits and costs to producers of government and industry-led programs; the impact of these programs on farmers'  production and technology adoption decisions, global supply, trade, and consumer preferences; consumer demand for various products attributes; and supply chain innovations.

From a consumer perspective, it is essential to focus on the understanding of how consumer perceptions and consumption decisions are influenced by various types of marketing information. Examples of marketing information include differential nutrition, food safety, implied economic implications to family farms, and carbon footprint of different production systems. A better understanding of food labeling strategies offers significant benefits to firms and entrepreneurs involved in food manufacturing and processing, as well as researchers in the health science arena that examine factors affecting linkages between nutrition and health outcomes. Importantly, many of these attributes relate to environmental and social concerns, including such aspects as “fair trade” for fair treatment of workers, “locally” grown or sourced, wildlife and biodiversity preservation, and sustainability of agricultural production and transportation. Understanding drivers of consumer demand for these product attributes has important implications for the well-being of agricultural workers, those engaged in smaller-scaled agricultural production systems (both domestically and internationally), small-holder farms, animals, and the environment.

The specialty crop marketing channels that connect consumers and producers take many different forms and present a variety of unique research needs. Our work will help inform producers, consumers, and intermediaries about the benefits and cost of participating in these marketing channels. Our research results can also enhance the effectiveness of these marketing channels by providing evidence about the methods, policies, organizational structures that yield the best outcomes for producers, consumers and marketing channel intermediaries. Also, in partnership with industry, government and non-profit organizations, we will help facilitate and evaluate new marketing channels for specialty crops.