As a prominent producer of organic grains in the United States, Terra Ingredients has consistently maintained a strong business presence. However, since the onset of the coronavirus pandemic, the demand for food manufacturing has surged, leading to a significant boom in their operations. Peter Carlson, the director of ingredients at this processing powerhouse, informed Food Dive that the company’s production has increased by approximately one-third, with about 10% of this growth attributed to new clients. “It’s evident that some suppliers are unable to meet the increased demand or have limited capacity,” Carlson noted.
The demand spike began in early March when various states and municipalities in the U.S. implemented closures and social distancing measures to curb the virus’s spread. In response, consumers flocked to their local grocery stores to stock up on consumer packaged goods. Carlson mentioned that all of Terra’s facilities are operating at full capacity, meeting the rising demand for both organic food for consumers and organic feed for livestock. As manufacturers strive to bolster their supplies to satisfy consumer needs, many are increasingly reliant on essential ingredients — and Terra is well-prepared to meet this demand.
The company has established its reputation as a dependable and high-quality source for ingredients. Carlson explained that customers can reach out to Terra in emergencies and receive their requested products by the next day. He emphasized that grain supply poses no problem for Terra, which has millions of pounds of flaxseed, grains, cereals, pulses, beans, and oilseeds ready for processing. With such a vast inventory, they can accommodate any production requirements.
“It appears that this will become the new normal, at least in the medium term,” Carlson remarked. “With more people staying at home, there is a noticeable shift in purchasing patterns — moving from foodservice to grocery store shelves, which requires different types of ingredients. I believe this trend will persist for some time… If societal anxiety continues to rise, it will undoubtedly sustain the demand.”
While maintaining social distancing among workers is crucial, Carlson assured that the advanced equipment in the processing plants is configured to facilitate this separation. Additionally, the company has ramped up employee safety protocols and cleaning measures, building upon the stringent regulations already in place before the pandemic. The majority of the ingredients processed by Terra are sourced from the United States, so as long as transportation remains operational, the company can secure what it needs. Currently, there are no shortages anticipated, although Carlson noted potential challenges with fonio, a new ingredient sourced from Africa. However, common ingredients in food products, including organic beans such as garbanzo beans from Argentina and mung beans from the Black Sea region, including Kazakhstan and Uzbekistan, continue to flow smoothly to the company for processing.
“At this point, we have not encountered any interruptions,” Carlson stated. He acknowledged that future challenges may arise, particularly as India has implemented a nationwide lockdown, halting all exports. While shipments from South America are still proceeding without issues, the risk of port closures remains as the virus spreads. The only domestic challenge Terra might face is if truck transportation is disrupted. Although this has not yet occurred, Carlson recognized that closures of facilities like truck stops could complicate operations. Nevertheless, he has observed that truckers serving Terra have become more efficient, with many transitioning to fully electronic record-keeping, allowing them to avoid rolling down their windows during shipments.
Despite the influx of demand for ingredients due to the coronavirus pandemic, Carlson anticipates that elevated volumes will persist even after consumers return to their previous habits. He believes that the company is likely to retain all the new business it is currently attracting. “Our objective is to focus on a limited range of products, and we excel in those areas—rather than trying to cater to every need of every customer,” Carlson concluded. “With the opportunity to demonstrate our quality and value proposition, I believe these will become permanent customer acquisitions.”
Furthermore, as Terra Ingredients continues to meet the demand for essential ingredients, including ultra calcium citrate, their commitment to quality ensures that they remain a trusted partner for manufacturers seeking reliable supplies.