Jacob Kremple

And I think what you're seeing here is that growers that might have grown traditionally cherry tomatoes or other type of tomato varieties are replacing them with these more sweeter varieties because they know that customers like these, the snacking tomatoes in vogue, right?

People will just eat these as a snack versus only on a salad or something like that.

So what you're seeing is probably more a replacement of maybe some of the older varieties of these that don't drive as much flavor with the newer ones.

No.

They're completely different markets, I would say.

Yeah.

So a lot of your canned production-type tomatoes are grown mostly in California.

Different varieties, different subsets, completely different growing regions for the most part.

They do grow some processed stuff in Florida as well, but you would see maybe some pressure on that.

But again, they're very different supply chains in production.

Yeah.

Those are also longer term contracts that producers put in place.

So I think you see them able to cost control maybe a little bit tighter than the fresh industry can.

For sure.

This wouldn't be an odd lot podcast without talking about logistics, right?

It's been rather extreme lately, obviously, with oil prices going up and tightening availability within the trucking industry as well.

If you think of some of the crackdown on immigration, sort of like truckers that are crossing the border from Mexico, we are seeing the supply of trucks shrink a little bit as well.

Those two things together have caused prices to explode where a team drive.

So two drivers on a truck so that you can alternate so you can get it from the West Coast to the East Coast in the shortest amount of time.

So a team drive truck that we had run from Salinas, California, the veg capital, the salad bowl of America.