California Dealers: Unique Challenges
November 13, 2009 California dealers have their own set of problems, with specialty crop grower-customers facing tough times. Thousands of acres of permanent crops (such as tree fruit, nuts, and grapes) have been pulled out or abandoned and hundreds of thousands of acres of row crops idled this past season, reports Greg Musson, general manager of Gar Tootelian Inc., Reedley, CA. The cause? “Regulatory water shortages, large grocery chains that only want one-size fruit, and foreign markets drying up,” he says.
The regulatory environment there is harsher, too. “Water and air regulations are driving us crazy,” he adds. “And doing any improvements to your facility in California is nearly impossible.”
One small positive note has emerged over the last two years. With folded or reduced operations — and lots of employees laid off — growers need to look for ways to off-load duties, Musson says. “Certainly some of our services are getting a second look now.”
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