What Happens When A Veggie Processor Closes?

Central Wisconsin’s specialty crop industry recently faced a scare, highlighting the link between local growers and vegetable processors.

While the recent uncertainty surrounding Del Monte’s operations appears to have settled, it was a reminder that the loss of a processor can disrupt a regional supply chain, says Randy Fleishauer of Plover River Farms in Stevens Point.

Crops like green beans and sweet corn are not just revenue streams; they are biological necessities for a healthy crop rotation with potatoes, for example. A rotation prevents nutrient depletion in the soil and lowers the risk of disease.

The logistical challenge is that canning crops are perishable. Vegetable growers operate on a strict, contract-driven timeline. If a processor cannot take the product, there is often no secondary market, Fleishauer explains.

“Those are timely crops that need to come off when they’re ready, and if they’re a little too late, they’ll be passed and disced down.”

Because specialty crops are harvested early, they allow farmers time for essential fall soil treatments, such as fumigation, to prepare for the following year’s potato planting. A forced pivot to traditional row crops, like field corn or soybeans, can throw off this timing entirely. It can also strain local agribusinesses that may not have the specific supplies or equipment in stock for a sudden shift in acreage.

To mitigate these risks, Wisconsin maintains an Agricultural Producer Security Council through the Department of Agriculture, Trade and Consumer Protection. Fleishauer serves on this council. He says this safety net is designed to provide growers with financial protection when a processing partner fails to meet their obligations.

“Had we lost them, that’s a complete disruption of central Wisconsin ag in general,” Fleishauer says of Del Monte.

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