Fresh Wrap: USDA Backs $10M Push for Greener Produce Packs

Agency funds 22 projects to help U.S. produce exporters meet rising global eco-standards

3 Nov 2025

The U.S. Department of Agriculture’s Foreign Agricultural Service has awarded $10mn to 22 projects under its Assisting Specialty Crop Exports programme to develop sustainable packaging for fruit and vegetable exporters. The initiative seeks to align U.S. producers with international sustainability standards and strengthen their competitiveness abroad.

The funding comes amid tightening packaging regulations in Europe, Asia and North America, where exporters face growing requirements to use recyclable, compostable or recycled materials. The latest round of ASCE support includes projects by BioLogiQ, which is developing plant-based and recycled packaging; Kwik Lok, which is testing compostable closures; and NatureSweet, which is expanding the use of recycled plastics to reduce waste and emissions.

A USDA FAS spokesperson said sustainable packaging had become “a key factor in maintaining global competitiveness,” adding that the agency aims to ensure U.S. producers remain leaders in the transition to greener food systems.

For the produce industry, packaging now influences not only product quality but also trade access and brand perception. Retailers increasingly demand packaging that meets both performance and environmental criteria, prompting companies to adjust strategies and supply chains.

The programme mirrors a broader shift across consumer goods sectors, where sustainability has moved from a marketing feature to a baseline expectation. Early adopters of eco-friendly packaging may secure stronger trading relationships and expanded market opportunities, while slower movers risk lagging behind as standards evolve.

Despite challenges in scaling production of sustainable materials and harmonising global regulations, the USDA FAS initiative provides a framework for collaboration between government, industry and research institutions. Officials expect that such partnerships will lower costs and accelerate technological innovation over time.

As the supported projects advance from pilots to full-scale application, their outcomes are likely to influence practices throughout the global supply chain, from U.S. farms to international retail markets, reinforcing the role of sustainable packaging in shaping the future of agricultural trade.