Arkansas-based Ritter Agribusiness has diversified into permanent crops, announcing that it has acquired Gillam Farms, a farming operation producing blackberries, blueberries, strawberries, and pumpkins, for an undisclosed amount.
Founded in 1886 by Ernest Ritter in Marked Tree, Arkansas, Ritter Agribusiness has grown into a farm management, cotton ginning, warehouse, and grain services company before selling its grain services business to Poinsett Rice & Grain Inc. in March of last year.
Prior to the acquisition of Gillam Farms, Ritter owned more than 32,000 acres of Mississippi Delta farmland, and managed another 16,000 acres in the region. Whether on its own land, or land it manages, Ritter takes a hands-on approach that aims to maximize yields while focusing on sustainability and conservation.
Ritter sees the addition of Gillam Farms as way to further diversify its business, and as the beginning of further growth.
“The purchase of Gillam Farms is a tremendous opportunity to diversify our operations while continuing the legacy of our company,” said Kevin Wright, president, Ritter Agribusiness. “We are focused on growing our business and this acquisition is a perfect fit for the long-term vision of our company as well as a platform for future growth and acquisitions in specialty crops.”
Berry Promising
The strategic move to acquire not only a family-owned permanent crop operation, but the largest blackberry producer in the state of Arkansas, gives Ritter a nice entry into a promising berry sector.
Over the past 15 years the U.S. blackberry category has come into its own, with production increasing for both domestic and exports markets, reports Growing Produce.
“Now in 2018, the whole blackberry industry seems to be the most healthy overall than at any time since then,” said Ervin Lineberger, a leading blackberry grower located in Kings Mountain, North Carolina. “The blackberry in 1982 was considered a minor specialty fruit. Now it’s a mainstream item.”
Overall sales of fresh berries in the U.S. reached 1.8 billion pounds and a value of $6.4 billion, according to a presentation by Dr. Roberta Cook, Department of Ag and Resource Economics, with UC Davis. Of these sales by volume, 66 percent were strawberries, 20 percent were blueberries, seven percent were raspberries, and five percent were blackberries.
Indeed, the popularity and demand for fresh berries is expected to continue to grow, driven by multiple trends including a desire for fresh ingredients, snacks, and food choices, as well as new applications for berries such as anti-aging ingredients in the cosmetics and health and beauty industries, according to Persistence Market Research.
But perhaps it was plant breeder Fred Bliss who summed up why berries are a good strategic choice when he told Growing Produce in December 2017, “Berries are fun and people have a nice feeling about them!”
Based on such market conditions and trends, Persistence forecasts that the global contemporary berry market is on track to reach a value of $81 billion by the end of 2027.
Ritter also will be well positioned in the berry category due to its being a family-owned business and local producer – two other consumer draws.
“We are very happy the farm will continue to be run by a family-owned, Arkansas company with a strong commitment to Arkansas agriculture,” said Jeremy Gillam. “Those were very important factors when we sought a buyer.”
“As with all of our business, we are committed to providing safe, high-quality products to our customers,” Wright said. “Ritter Agribusiness still owns the original parcel of land we purchased in 1893. However, the industry has dramatically changed over the years, and we are thrilled for this opportunity to grow and change with it.”
-Lynda Kiernan