Baker & Murakami combination finds new efficiencies
A merged, automated and otherwise fine-tuned Baker & Murakami Produce heads into the home stretch of the Northwest onion marketing season bullish on its position in the industry.
Baker Packing Co. and Murakami Produce, both of Ontario, Ore., on July 1 took equal ownership in the new Baker & Murakami Produce Co. LLP. The company grows, packs and ships onions supplied to a full range of customers including foodservice, retail and food-processing segments.
“We have built a lot of momentum this year and we are in a very good position moving forward,” Baker & Murakami Chief Operating Officer Cameron Skeen said.
Combining two longtime Ontario businesses into one included substantial automation that streamlined operations and positioned the post-merger company to more effectively deal with the tight labor market, he said. Automation also led to better quality control.
Innovation in agriculture is positive at county, state and national levels, said Malheur County Economic Development Corp. Director Greg Smith, who is based in Ontario.
“While there may be short-term reductions in employment, it does lead to greater stability and profitability for the industry,” Smith said.
The former Baker Packing location at 153 S.E. First St. houses packing operations and the sales office. The former Murakami Produce facility includes the business office, and field and storage operations.
Following the merger and integration of the two large companies, Baker & Murakami has the same broad customer base but is more efficient and competitive, Skeen said. The company has better technology and more in-depth quality control that helps put a better onion in the hands of customers, he said.
“Our grading capabilities are much more extensive and sophisticated,” Skeen said. The new grading equipment evaluates characteristics of the inside and outside of an onion, and sorts by characteristics including color. The automated system also weighs, sizes and bags onions, and places them on pallets.
Automation and other internal changes helped Baker & Murakami streamline its workforce and in turn help the company deal with a persistent labor shortage.
Skeen did not release pre-merger or current employee totals. He said the merged company runs a single shift as the two independent predecessors each did. Employees added skills as Baker & Murakami moved ahead with new systems and processes.
Automation is the wave of the future, he said, and “we are trying to push ourselves for long-term success.”
It hasn’t been easy.
“This year has been a real learning curve with a lot of moving parts putting two companies together,” Skeen said.
The united company found the right operating structure, and the right equipment, to change and improve upon what the predecessor enterprises did for years, he said.
“It has been challenging in that regard, but at the same time we feel like we are ahead of where we thought we would be,” Skeen said. “I feel like we are definitely ahead of the curve for our area.”
Southeastern Oregon and southwestern Idaho field nearly 30 onion packing and shipping companies, he said. The Northwest marketing season, during which onions go from growers and packer-shippers to customers, typically ends in May.