Shrink Impacts All Areas of the Produce Industry

Are you aware of your produce shrink percentage? Do you know how much revenue you’re losing because of it?

Surprisingly, some produce department managers have little to no understanding of the shrink they experience. Others lack any system to track or address it. Left unchecked, shrink can lead to significant financial losses.

We’ve all heard the saying, “One bad apple spoils the barrel.” But if you find one rotten apple in a five-pound bag, should the entire bag be discarded if the rest are still good? Would you throw out a full bag of potatoes because of a single bad one? Should 98% of good product be wasted over one spoiled item? Unfortunately, many produce departments operate this way. The question is: Should they?

Aside from declining sales, shrink is one of the most damaging factors affecting profitability. Yet many of its causes go unnoticed. Across the industry, employees often lack awareness of shrink loss and may not fully understand the science behind properly handling fresh fruits and vegetables.

Why do we have refrigerators? You could save on energy costs by turning yours off and consuming everything immediately—but that’s not realistic.

Post-harvest shelf life is influenced by temperature, moisture, and handling. Cooling slows spoilage and aging. Proper humidity helps maintain cell structure. Gentle handling prevents bruising and damage that lead to decay.

Shrink is a constant challenge in produce. Recognizing it is only the first step—preventing and managing it requires a more deliberate approach. Shrink occurs at every stage of the supply chain: during processing, packing, loading, shipping, storage, and display—and even at checkout.

Retailers are especially vulnerable, as they represent the final step before the consumer. While stores employ various strategies to maintain freshness, the longer produce sits on display, the greater the risk it becomes unsellable.

Each year, shrink costs the produce industry millions of dollars. Without proper tracking and analysis, many companies underestimate the true impact. Remember: Every bit of shrink you reduce goes directly to your bottom line.

What do you think? Email me at ronprocon@gmail.com.