Labor survey provides look at challenges facing processors
This year Produce Processing’s parent company, Great American Media Services (GAMS), conducted multiple labor surveys seeking input from fruit, vegetable and tree nut growers, as well as produce processors to learn more about the current labor climate.
Produce Processing’s readers surveyed were involved in a range of processing activities, which included handling fruits and vegetables (each 62.5%), packaging/palletizing (50%) and shipping logistics (50%).
Labor trends
One significant concern shared by both produce processors and growers is labor availability. Among produce processors, 86% experienced labor shortages in 2023, resulting in limited processing production.
In 2019, approximately 54% of fruit and vegetable growers reported adequate labor in a GAMS survey, but by 2023, this number dropped to 46%. Potato growers showed a slight improvement, with 63% reporting sufficient labor in 2023 — a 50% increase from the previous year. Tree nut growers were the exception, with 76% stating labor was not an issue in 2023.
Produce processors (29%) reported using the H-2A program, with all of those outsourcing the recruitment and management process.
Results in other sectors indicated H-2A remains a valuable tool to address labor shortages. In 2024, 50% of fruit and vegetable growers reported using H-2A labor, with 83% outsourcing the recruitment process. Similarly, 60% of potato growers utilized H-2A workers, and 73% outsourced recruitment.
Despite benefits, processors reported that the legal process and new wage requirements all resulted in increased costs, which caused some operations to limit the use of H-2A to specific crops paid by piece rate.
Among processors, increased wage requirements were noted as a factor leading to more strategic, efficient workforce management. Respondents mentioned combating labor shortages by limiting workloads (57%), implementing automation (43%) and using H-2A (29%). Others are hiring additional labor and interns. Processors are considering line automation, mechanical harvesting and customized solutions to help mitigate persistent labor issues.
Nearly half of fruit and vegetable growers (44%) reported challenges in maintaining profitability due to rising labor costs. Regulatory complexities are also a concern, with 14.5% of fruit and vegetable growers finding the H-2A process burdensome — leading to a reduction in crop acreage or the scaling back of operations.
The one exception to this trend is tree nut growers, as 94% indicated the H-2A program is not being used.
Automation and other strategies
Among fruit and vegetable growers, 26% are considering automation for tasks such as harvesting and weed control. Potato growers (44%) are exploring it for grading, harvesting and packing. Tree nut growers (49%) are more inclined to use automation.
Many produce processors (43%) are planning to implement automation in 2024, though the cost of automation was a concern of survey respondents across all sectors.
Other labor strategies include reducing crop acreage, hiring interns, increasing mechanization, and exploring alternative sources.
Produce processors noted concerns in written survey responses.
“We have a national shortage of agricultural and manufacturing labor, which I consider a national security risk. Our policy makers need to pass policies to encourage more labor, such as easing immigration rules and regulations,” one respondent wrote.
Another survey participant noted a need for “the industry to distinguish itself as an attractive workplace due to the lack of ag and manufacturing labor in the U.S.”
Another respondent related apprehension regarding immigration regulations and a need for policy changes.
Overall, industry surveys indicate that rising costs, regulatory burdens and the complexity of the H-2A program highlight a need for innovative solutions to assist growers and processors with ongoing challenges.