The Grower Newspaper

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SEPTEMBER 2012

CELEBRATING 132 YEARS AS CANADA’S PREMIER HORTICULTURAL PUBLICATION

VOLUME 62 NUMBER 09

ONTARIO FOOD TERMINAL

A bumper crop of fresh ideas regenerates Canada’s biggest wholesale market KAREN DAVIDSON Sweeping floors. Shaking hands. Writing orders. That’s how the infection started for several teenagers while their fathers looked on. Unlike a disease, it’s an infectious love for the produce business that’s being passed down through generations at the Ontario Food Terminal. As the venerable wholesale hub opens its doors to the public for the first time this month, three vendors are in the throes of generational change: Koornneef Produce, Streef Produce and Fresh Taste Produce. The business ethics of these twenty-somethings is good news for the growers who supply produce. But more than that, they are bringing fresh ideas to protect the integrity of the product and the industry at large. Marcus Koornneef, 27, is following in the footsteps of his father Fred and grandfather Arie who started selling fruit in handloaded baskets from the Grimsbyarea farm in the early 1950s. Trading on the loyalty of customers in the outdoor farmers’ market, Fred bought two stalls in the undercover vendors’ market in 2008. Soon after, Marcus left a real estate career in the U.S., where he was a front-row witness to the financial meltdown. Volatile as the Ontario Food

INSIDE Tunnel vision for tomatoes

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OFVGA summer tour profiles innovation and research Page 12

Focus: New equipment & technology Page 14

www.thegrower.org P.M. 40012319

The Ontario Food Terminal, one of the three largest in North America, wholesales about 975,000 tons of produce annually. Its first-ever public open house will be held September 22 in a Fresh Fest fundraiser for Foodshare. How to survive in this hurly-burly market? Be razor-sharp and street-smart. Whether those talents are acquired or bred in the bone is hard to say, but it’s worthwhile following several vendors whose senior generations are handing more responsibility to their 20-something sons. From left to right, meet Fred Koornneef and his son Marcus, Koornneef Produce, with buyer Frank Berardi, Michelangelos. Photos by Glenn Lowson. Terminal can be, returning to the family business in Toronto seemed a lot more stable. With business degree in hand and international experience in Holland, he made his first mark by introducing a computerized invoicing and inventory system. The first-in, first-out system keeps up-to-date data for food safety and traceability, if lot numbers are ever required. “There’s much less frustration on a busy day when you’re selling 22 different types of tomatoes and four colours and sizes of peppers,” he says, referring to their specialty in hydroponic produce. They carry many niche items such as hot pencil peppers that appeal to the gourmet tastes of upper-end clients. “Koornneef Produce has grown quite a bit with 30 fulltime employees,” says Marcus, “but it’s not due to any newfound business,” he explains. “It’s

Koornneef Produce has grown quite a bit with 30 full-time employees, but it’s not due to any new-found business. It’s not like there are new retail stores being built every day. Rather, it’s growing volumes with a current loyal clientele.” ~ Marcus Koornneef

not like there are new retail stores being built every day. Rather, it’s growing volumes with a current loyal clientele.” Understanding the changing demographics in the Greater Toronto Area is key. With growth in the Asian population, the Chinese buyers operate their retail outlets much differently than large retailers, working on razor-thin margins. For example, the Chinese buyers will take a 40 cent item and retail for 49 cents, whereas a major chain will take the same item and retail for 99 cents. Those buyer needs also differ in terms of how much packaging they want on produce. For some, selling by the pound is the preferred route, whereas other retailers are willing to sell produce in a clamshell that costs another 25 cents. Managing customer expectations in the hurly-burly of the

marketplace can be trying, however Marcus credits his father with a philosophy of “spread the love.” If there’s not enough product around, try to make sure everyone gets some. That tenet of fairness extends to their own 45 Ontario growers who regularly supply produce on consignment. “We take a commission and return the remainder to our growers,” explains Marcus. “It requires a high level of trust because it’s all based on a handshake. But I can say we’ve never had a grower leave us because they were unhappy.” At Streef Produce, the story has similar echoes. Chris Streef, 30, is general manager and third generation of the business started by his father Martin and his brothers Peter, Albert, John and Jack and his grandfather before that. CONTINUED ON PAGE 3


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