One of the unintended consequences of the COVID-19 pandemic has been a significant increase in demand for fresh fruits and vegetables. As a result, many packaged potato growers have found themselves more busy than ever, facing two challenges. First, the load on the filling lines has increased due to the need to increase productivity without compromising product quality. Secondly, they needed additional employees at a time when manual labor is especially scarce.
This unusual combination of opportunities and challenges arose precisely during the period when catering establishments were closed due to quarantine restrictions. Millions of consumers have become more likely to cook at home as they are unable to go to cafes and restaurants, which has led to an explosive growth in fresh potato sales. The scale and rate of increase in demand has proven to be fantastic. In the first seven days since the onset of the coronavirus crisis, potato sales in U.S. chain supermarkets rose 72% in dollar terms. In subsequent weeks, this figure varied between 65-115%. At the same time, sales of fresh potatoes in Europe also rose sharply. Even now, a few months later, sales of fresh potatoes in many countries surpass the 2019 level by about 40%.
The packaged potato growers have struggled to keep up with this pace. They can be understood, the situation is unenviable: large potato retailers, finding that their regular suppliers cannot cope with orders, turn to other companies and do not always come back. Equally alarming is the fact that many new packaged potato growers are unable to seize these opportunities to increase their own volumes. They simply do not have the required operational management systems, manufacturing technologies, or employees.
The most difficult thing is to build up the staff. In developed countries, manual workers prefer permanent employment to seasonal contracts, and workers from developing countries are increasingly able to choose among several more attractive alternatives. Vegetable packaging companies used to work around this problem by hiring temporary foreign workers, but now that many countries have imposed travel restrictions due to the pandemic, this workforce has also dried up. It's no secret that every year it will be more difficult to find people who want to work on filling lines.
Another problem is related to people's fear of contracting COVID-19 at work. These fears have been fueled by media coverage of COVID-19 outbreaks in many U.S. and European food businesses. It should be noted that this is a “sore point” for filling lines, where employees work in close proximity to each other, selecting low-quality potatoes. Moreover, the need to test employees for the virus and provide them with personal protective equipment will increase the already rising labor costs.
All these problems can be solved using available technologies. Modern optical sorters have a proven track record of increasing output and line productivity while ensuring food safety and consistent quality. Such equipment makes it possible to automate some tasks, which reduces the need for manual labor and can significantly reduce dependence on it. Benefits like these aren't just important now that the coronavirus crisis is changing consumer habits. Their business value will continue into the future, even after the COVID-19 threat is brought under control or eliminated entirely.
About Us
TOMRA Food Included in the group of companies TOMRAfounded in 1972. The pioneering activity of the company began with the design, production and sale of vending machines for the collection of used beverage containers. To date TOMRA offers high-tech solutions that contribute to the development of a circular economy, which includes the use of advanced collection and sorting systems. These solutions ensure that resource use is recovered and waste is minimized in the food, mining and recycling industries.
Company TOMRA Food is engaged in the development and manufacture of sensor sorting equipment and integrated post-harvest technology for the food industry. Our solutions are based on the world's most advanced quality control, sorting, cleaning and process analysis technologies. More than 8000 of our machines are installed in different countries in the factories for the production, packaging and processing of food: fruits, nuts, vegetables, potatoes, grains and seeds, dried fruits, meat and seafood. The mission of the company is to provide customers with smart and practical technological solutions that increase their investment efficiency, increase productivity and ensure food safety. TOMRA Food has its own innovation centers, regional offices and production sites in the USA, Europe, South America, Asia, Africa, Australia.
At the moment, about 100 technological solutions TOMRA used by customers in more than 80 markets. In 2019, the company's total revenue was approximately NOK 9,3 billion. The group employs approximately 4500 international employees and is listed on the Oslo Stock Exchange (OSE: TOM). Additional information about the company TOMRA can be found on the site www.tomra.com.