California Processor Grows Forward with Fresh-Cut Apples

The staff at Farmington Fresh, Stockton, Calif., is always on the lookout for new opportunities in the produce industry. That’s how the company got into fresh-cut eight years ago.

David Rajkovich, president of Farmington Fresh, decided to look at value-added avenues for the growing/packing/shipping operation he was part of when he watched his kids pick out their evening snack.

“In the evening, the kids want a snack, and their mom would tell them to eat something healthy,” Rajkovich said. “I keep Fuji apples in the fridge, and I’d watch them reach right past them and pick baby carrots. I thought ‘What’s going on?’”

Rajkovich realized it was easier for the kids – and his wife – to choose the baby-cut carrots. There was no washing or cutting, and the kids didn’t have to wait.

“I thought, ‘We need to make apples as convenient and fun to eat as these… little baby-cut carrots,” he said.

While his own kids served as inspiration for his company’s next endeavor, kids were an important part of Farmington Fresh’s product development.

Kids did much of the testing. Farmington Fresh staff would set two platters on a table, one with baby carrots, the other with fresh-cut apples. They would then sit down at the table with kids and talk with them. While the groups were talking, staff observed kids reaching for the apples more often than the carrots.

“They would eat both (apples and carrots), but they always go back to the apples for more,” Rajkovich said. “That led us to believe we were on the right track.”

The company was new to the fresh-cut business, so there was a bit of a learning curve to start processing fresh-cut apples. Rajkovich and the team at Farmington Fresh spent time looking at everything from varieties to processes to wash solutions – things all fresh-cut processors must look at to make high-quality, safe products.

“I’m concerned about the high number of people that want to get into the fresh-cut apple business that may not understand the investment and the risks involved,” Rajkovich said.

As with any industry, if companies enter into fresh-cut without being completely informed and prepared, a failure for that company could mean a black mark on the whole industry.

“If there was even a food-safety issue in the fresh-cut fruit business, it’s going to affect all producers – whether you’ve been in the business for 20 years or six weeks.”

Apple Success

Rajkovich knows the importance of taking time to learn the ins and outs of an industry before entering a new venture, which is why Farmington Fresh isn’t rushing into adding new products. For now, they’re sticking with fresh-cut apples.

“We’re constantly looking at new fruit and a couple of vegetable opportunities out there, but we’re identifying what doesn’t work in our lab,” Rajkovich said. “And we’re not going to reach out to other fruits until it’s proven.”

Though he wasn’t able to talk specifically about the products Farmington Fresh is looking into, he said he sees a lot of opportunities for fresh-cut apples in concession stands, convenience stores and airlines, as well as ingredients in other dishes.

“We are developing several new avenues where fresh-cut apples will be mixed in with other products and sold in many other forms in the grocery story,” Rajkovich said.

Over the last eight years, Farmington Fresh has continued to improve its process for producing fresh-cut apples. In fact, the company’s roster of growers includes those who grow strictly for the fresh-cut operation.

“We have growers now growing apples specifically for the fresh-cut operation that specifically meet the requirements,” he said. “This is not a product made of off-grade cull apples off the packing line, it’s a very narrow quality range that we use.”

This benefits not only Farmington Fresh and the consumers, but also the growers.

“We can return the grower more money for his product now,” Rajkovich said.

A Growing Industry

Fresh-cut is helping remove the strict product-availability windows of fresh produce, which is leading to increased demand. As more products become available, that demand will only grow.

“Consumers expect fresh produce now of all varieties year round,” Rajkovich said. “People don’t think about the seasonality of fruits and vegetables anymore.”

They’re also coming to the stores expecting to find the products. In the past, fresh-cut produce was reserved for party trays for special occasions, Rajkovich said. Now, it’s something people buy every time they enter the stores.

“They’ve expected it, and we’re producing it consistently year round.”

Plus, the product is more efficient for consumers.

“One hundred percent of everything you buy is usable, so the price isn’t as extravagant as it may have once seemed,” he said.

Efficiency and convenience comes into play for Farmington Fresh’s foodservice customers as well. Among those customers are schools and institutions. Farmington Fresh also has made a foray into the airline business.

Providing airlines with fresh-cut apples for meal services can be tricky. There are a lot of limitations on space, refrigeration and price.

“Airlines are under such pressure, they’d rather give you the pretzels or peanuts that are a few cents – that are bullet-proof,” Rajkovich said.

While these new avenues do exist, it takes time to cultivate the relationships and to continue to expand the market for fresh-cut produce. The demographic shift is in the favor of the fresh-cut produce industry.

“It’s the younger consumers embracing it, and it’ll continue to grow as the demographics change,” he said. “Young kids think nothing of tearing open a bag and diving into a bag of fresh-cut apples.”

Rajkovich said he sees consumers bringing innovation to the industry.

“People are dumping them in salads – there are a lot of innovative ways people are consuming these things.”



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