In real estate, it’s location, location, location. For California’s produce trucking industry, it appears to be drivers, drivers, drivers.

That is a leading conclusion of a statewide survey conducted during the past year by agricultural economics researchers at California State University, Fresno. The survey was part of a joint effort of Fresno State’s Center for Agricultural Business (CAB) and the U.S. Department of Agriculture (USDA) to help California’s multi-billion-dollar produce trucking industry discern and perhaps correct emerging problems that, left unaddressed, could spell trouble for the state’s economy and for American grocery consumers.

In general terms, the produce trucking industry appears healthy, notes lead survey author John Hagen, professor in Fresno State’s Department of Agricultural Economics. In fact, the trucking industry has virtually taken over fresh fruit and vegetable shipping from the railroad industry.

"Historically, fresh produce was shipped to eastbound destinations from [California] via railroad," and retailers obtained their produce from central eastern markets, Hagen notes in the final report. "Today, most fresh produce is sold directly to retailers who expect the fresh produce to be delivered at receiver destinations as rapidly as possible. Truck transportation is more flexible than rail and reduces transport time to a minimum," the authors said.

But in responding to this demand for rapid service, the trucking industry may be developing engine problems. Concerns are being expressed as profit margins diminish, equipment ages and driver shortages occur.

"The study concludes that there is a general level of satisfaction among produce shippers and receivers with the quality and reliability of trucking services," Hagen wrote. "There is emerging concern, however, about the future of the trucking industry in terms of personnel and cost of service."

The key personnel issue centers on drivers. Information compiled from the survey and from other sources indicates that drivers are frustrated over compensation – pay rates are not high enough to draw them to the job; professional status – many drivers are either discouraged or offended by a perceived lack of respect from the shippers and receivers whom they serve; and time on the road – drivers are not happy being away from home for the extended periods required for cross-country hauling.

These and other issues have resulted in a "fairly high turnover rate," with surveyed trucking firms reporting that their drivers change jobs on the average of every 1.7 years. In cost of operations, the survey showed that truckers’ fixed costs are rising and their equipment is aging. Shippers’ greatest concern is an anticipated shortage of trucks in the near future.

One method of addressing these problems, the authors suggest, is to gather representatives from all phases of the industry – shipping, receiving and trucking – and build a problem-solving coalition that has everyone’s interests in mind.

"A number of concerns could be resolved by an educational/promotional program to recognize the important function performed by trucks," Hagen and his coauthors conclude. "A mutual program by all segments of the industry to promote ‘driver-friendliness’ might have big rewards."

Copies of the survey report will be available on CAB’s Internet web site, located at cati.csufresno.edu/cab. Single hard copies also may be ordered using the publications order form on Page 7.

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CALIFORNIA AGRICULTURAL TECHNOLOGY INSTITUTE - CATI
College of Agricultural Sciences and Technology
California State University, Fresno