A new state-of-the-art production line is assisting Ontario’s EarthFresh Inc. potato growing company in getting a premium local product to consumers more swiftly and efficiently.

EarthFresh Inc., a Canadian produce firm headquartered in Burlington, is vertically integrated in all parts of the potato sector, from seed breeding to packing and distribution.

Its clientele includes supermarkets, food service providers, and direct-to-home meal kit companies in Canada and the U.S., with a focus on exclusive and premium types, as well as niche items such as tiny and organic potatoes.

Continuously increasing demand put strain on the outdated equipment in its Burlington factory to keep up, which was worsened by supply chain delays and inventory concerns during the pandemic, resulting in lost output and inefficiencies.

Logistics became a concern in early 2022, when driver shortages prompted product delays across North America, resulting in a 40% increase in freight costs.

“Our legacy packing line needed not only more labor hours for maintenance but there were also hours of stagnation where it wasn’t producing at all. COVID presented significant operational challenges for us, and we also needed to better insulate ourselves against staffing absence, so the target was to increase throughput and reduce the operating costs of our plant through a strategic capital purchase,” Alex Paladino, Director of Operations at EarthFresh, mentioned.

The solution was the installation of a new, cutting-edge packing line for bagging the company’s popular little potatoes, which Paladino claims have not only raised packing rates but also eliminated practically all unplanned downtime.

The company was able to obtain cost-share funds through the Supply Chain Stability and Adaptability Program to assist with the acquisition and installation of the new system, which has been operational since summer 2023.

“We’ve seen a 60% increase in up-time, combined with reduced operational expenses associated with maintenance and upkeep. As well, the new system will enable us to use a variety of new sustainable and environmentally friendly packaging that we couldn’t do as efficiently and effectively previously,” Paladino added.

Greater packing capacity closer to home results in lower transportation costs and a lower carbon impact, as well as greater internal control over supply chain operations, allowing EarthFresh to respond more quickly to client requirements.

At the same time, this creates more valuable local market prospects for Ontario potato growers, who are paid more for growing premium tiny potatoes than normal potatoes.

“The potatoes packaged in this facility come largely from Ontario, so this lets us reduce costs and make Ontario product more competitive by growing and packaging locally. The funding we received through the Supply Chain Stability and Adaptability Program was very important to this project, especially coming off of the tough COVID years, which made it challenging to take capital risks,” Paladino concluded.

The Supply Chain Stability and Adaptability Program is funded by the Government of Ontario to address supply chain challenges in the agri-food sector. The Agricultural Adaptation Council is delivering the program on behalf of the Ontario Ministry of Agriculture, Food and Rural Affairs.