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The rising cost of labor not only costs produce companies on the bottom line, but it may be costing them on the top line as well.
Mark Campbell, Co-founder and CEO of ProduceIQ BB #:368175 said in a video interview Oct. 8, that he’s talked to a handful of produce companies who are turning down new business and even canceling existing business because labor costs are rising so much, and labor is so hard to find.
The result is a trickledown effect of rising prices for existing customers and scrambling for new partners, he says.
And Campbell says he’s seen this first-hand because in addition to running ProduceIQ, he owns a seafood and sushi restaurant in the Palm Beach, FL, area called Hog Snappers.
He said labor costs are rising quickly and putting a strain on operations, but so are food costs. While produce overall may be up only 10 or 15 percent, the cost of crab and lobster is up 300 or 400 percent, which puts produce cost rises in perspective.
Watch the video for more.
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