The USDA’s Agricultural projections to 2021, released just last month, show a steady, if slow increase in domestic produce consumption, with sales of horticultural crops expected to rise as much as 1.5 percent annually over the next ten years. Highlights include:
• U.S. per capita use of fruits and tree nuts increases from 269 pounds… in 2011 to 274 pounds by 2021, an annual average growth rate of 0.2 percent. Per capita use of vegetables is anticipated to grow from 417 pounds in 2011 to 439 pounds in 2021, an average growth rate of 0.5 percent per year. The total supply of fruits, nuts, and vegetables over the next decade, both domestic and imported, is projected to grow at an average rate of 1.3 percent per year.
• Imports increasingly supplement domestic production of horticultural crops and products. By 2021, imports are projected to supply 45 percent of domestic fruit and nut use and 25 percent of vegetable use, in terms of farm weight. In 2011, these shares were 40 percent and 21 percent, respectively.
• The value of farm sales of fruit and tree nuts is projected to grow at an annual rate of 2.0 percent over the next decade. Fruit and tree nuts are projected to rank first among horticultural products in terms of farm sales value with a share of 39 percent. Farm sales value of vegetables and melons is projected to grow 1.6 percent per year, while farm sales of greenhouse and nursery crops are projected to grow at an annual rate of 0.5 percent.
• The volume of U.S. farm production of horticultural crops is projected to rise by 0.8 percent annually. Vegetables and melons lead this growth at an annual rate of 1 percent, reaching 146 billion pounds in 2021. Fruit and nut production expands by 0.3 percent per year to 66 billion pounds in 2021.
• Producer prices for vegetables are projected to rise at 0.6 percent per year. Producer prices for fruits rise by 1.5 percent per year due to slower production growth than for vegetables.
This is a positive sign for the industry, but will slow growth make a significant financial impact? Will producers and retailers manage to profit from the upward trend? Locus Traxx will be there to guide the way. Helping improve the quality of produce through real-time monitoring of temperature and location. What’s Happening. Where it’s Happening. As it’s Happening.