Introduction

I. Introduction

In 1996, U.S. consumers spent $547 billion for food; it took $424 billion to get this food from the grower to the consumer.1 Marketing costs accounted for 77 percent of the U.S. consumer’s food expenditures. During 1996, $23 billion was spent to transport these products from the first handler (shipper, packer, processor) to wholesale and retail outlets. Transportation was 4.2 percent of the final cost of food for that year.

Transportation is a vital part of the marketing process. It would be impossible to provide urban centers with a vast array of fresh agricultural products from diverse farms and ranches located throughout the U.S. without a dependable, rapid service trucking industry.

The California fresh fruit and vegetable industries are heavily dependent on trucks. Historically, fresh produce was shipped to eastbound destinations from the state via railroad. During that time fruits and vegetables were transported from the shipping point to the large terminal eastern markets. Retailers acquired their fresh produce from these central markets. Today, most fresh produce is sold directly to retailers who expect that fresh produce be delivered at receiver destinations as rapidly as possible. Truck transportation is more flexible than rail and reduces transport time to a minimum. In 1996, approximately 92 percent of California’s fresh fruit and vegetable shipments were delivered to receivers by truck. Trucks are also often used to transport produce to ocean ports for shipment to export markets.

During the last several years there has been a growing concern about the California produce trucking industry.2 It has been claimed that fewer people are becoming drivers, fuel and operating costs have been increasing, profit margins are frequently non-existent, equipment is wearing out, and a shortage of trucks during the summer peak produce season has developed.

This study was undertaken to determine the important transportation issues facing the produce industry; to evaluate the number of loads shipped each year; and to evaluate how produce shippers, receivers, and truckers perceive the produce trucking industry.

This study is a joint effort by the U.S. Department of Agriculture, the Western Growers Association, the fresh produce industry, the trucking industry and the Center for Agricultural Business at California State University, Fresno.

A major purpose of the study is to increase industry and public awareness of trucking related issues so that efforts can begin to be made to ensure there will continue to be a dependable means of getting fresh produce to national markets.

Objectives of the Study

To determine the important issues confronting the California fresh produce trucking industry.

To determine the volume of fresh produce shipped from California.

To determine produce trucking rates from California to five major U.S. markets.

To determine costs and returns for shipping loads to the five major U.S. markets.

To determine how produce shippers, receivers, and truckers perceive the trucking industry.

{ CATI , also CAB , CFSNR , CIT , VERC }