Farming is a challenging business, and getting more challenging every day. That this tomato company in Southern California just halted operations is a good example of that.
Oceanside Pole Tomato Sales Inc., the marketing arm of Harry Singh & Sons, is one of the country’s largest tomato suppliers, packing and selling 4.5 to 5 million cartons of tomatoes a year. Harry Singh & Sons was one of nine companies that make up a Fresno-based cooperative that grows about 90 percent of the country’s fresh tomatoes.
It’s noteworthy that they had to shut down operations so suddenly. According to the article in The Packer, it was due to a “perfect storm of issues,” including labor and water costs, competition from Mexico, California’s regulatory climate and urban encroachment.
As I have often said, “If the farmer makes money, the farmer will farm.” As oil prices rise, I am curious to see if other mainland farmers are feeling economic pressures as well.
From The Packer:
Oceanside focuses on 2012 return with tomatoes
By Don Schrack
Published on 04/14/2011 06:40PM
Southern California’s Oceanside Pole Tomato Sales Inc., one of the nation’s largest suppliers to retail of vine ripe tomatoes, abruptly halted operations April 12, as did grower Harry Singh & Sons because of “a perfect storm of issues” related to costs.
Barbara Metz, a spokeswoman for Harry Singh & Sons, said April 14 that the company had not gone bankrupt. She said “a perfect storm of issues” including costs of labor and water, competition from Mexico, California’s regulatory climate and urban encroachment had caused the shutdown.
“I’ll be closing down the company in the next few weeks,” said Bill Wilber, Oceanside Pole president, on April 13.
Krishna Singh, general manager of the growing company and grandson of its founder, sent a message to that firm’s employees the same day, explaining that the company would not be operating for the 2011 season.
“I regret to inform you that effective immediately, Harry Singh and Sons Farming Partnership will not be in operation for the 2011 season. … We will work diligently and explore all options in our efforts to reorganize and resume farming operations for 2012,” according to the e-mail message.
The closures of Oceanside Pole and Singh’s growing operation could put a dent in the upcoming season’s vine-ripe category.