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Quick Take
It’s still unclear exactly how President Donald Trump’s promised tariffs – and retaliatory measures from Mexico and Canada – will affect Santa Cruz County agriculture and particularly the all-important berry crop, Jessica M. Pasko reports in her weekly look at local business.
Each week, we’re taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.
Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.
With new tariffs pending, local ag community prepares to feel the pinch
Strawberries growing in the Pajaro Valley. Credit: Kevin Painchaud / Lookout Santa Cruz
How willproposed tariffs affect Santa Cruz County’s agriculture industry? Leaders and officials say it’s difficult to predict, but the consensus is it won’t be good.
After repeat suspensions and delays, 25% tariffs on all imports from Mexico and Canada are set to go into full effect on April 2. Both countries have already threatened retaliatory action, which could impact the local berry industry in particular. Berries are the county’s biggest export, with Canada and Mexico being the two largest trading partners. Last year, 28 million pounds of berries grown here were shipped to Mexico, another 4 million pounds were shipped to Canada and another 1.5 million pounds of berries went to Japan, according to David Sanford, the county’s agriculture commissioner.
Neighboring Monterey County exports far more produce both in volume and type, but Santa Cruz County’s growers, shippers and producers aren’t likely to be unscathed. For one thing, key materials – like fertilizer – that are imported from Canada and elsewhere could become more expensive. For another, countries like Mexico and Canada could respond by implementing tariffs on products exported from the U.S., which would raise prices for consumers there. That could result in those customers buying fewer U.S. goods in favor of cheaper options.
“Retaliatory tariffs from other countries resulting from tariffs actions taken by the U.S. could impact agriculture commodities produced here in Santa Cruz County, such as berries, and our local growers’ export costs and options could certainly be impacted, but at this point, it is still difficult to assess just how much and to what degree,” said Sanford.
It’s that uncertainty that’s keeping many in the industry refraining from speculation just yet.
“At present, the outlook is unclear,” Christopher Valadez, president of the Grower-Shipper Association of the Central Coast, told Lookout last week.
Businesses that rely on agricultural products, such as brewers and restaurants, are also preparing for the pinch, as Lily Belli reported this week.
ICYMI: “It’s a terrible idea”: County plan to allow cannabis lounges draws mixed reviews in the cities
The Cultivate dispensary in Aptos is one of several retail cannabis shops that would be eligible to open a lounge under the new law. Credit: Kevin Painchaud / Lookout Santa Cruz
As of Jan. 1, state law allows licensed dispensaries and cannabis lounges to operate similarly to Amsterdam cannabis cafes. In Santa Cruz County, county leaders are pushing ahead to allow these lounges in their jurisdiction, but leaders of some cities aren’t moving forward yet.
Last week, the county’s board of supervisors gave the initial green light to a rule change that would formally create the first legal venues for people to smoke cannabis outside of a private residence. As Christopher Neely reports, that would apply to only the county’s unincorporated areas, not its cities. A second vote is scheduled for March 25.
Leaders in the county’s four cities – Scotts Valley, Santa Cruz, Watsonville and Capitola – say they don’t foresee a similar rule change happening in any of those areas. Read Christopher’s full story here.
Ch-ch-changes: Openings, closings and other developments
Joby Aviation partners with Virgin Atlantic: Santa Cruz-based Joby Aviation will work with Virgin Atlantic to launch commercial electric air taxi service in the United Kingdom, once it clears the necessary regulatory hurdles to do so. Joby announced the partnership over the weekend, which it says will eventually enable regional and city connections from Virgin Atlantic’s hubs at London’s Heathrow and Manchester airports. This builds on an existing agreement between Joby and Delta Airlines, which owns a 49% stake in Virgin Atlantic. Through the partnership, Virgin Atlantic will help support Joby’s efforts to launch in the U.K. by marketing the service to its customers and by assisting with support for developing the required landing infrastructure. Joby officials said earlier this month that they are aiming to launch passenger service as soon as later this year or early 2026. However, the company still needs to complete a number of steps to receive what’s called type certification, which ensures it has met all the Federal Aviation Administration’s safety and design standards. Santa Cruz-based Goodles’ boxed mac & cheese products are available in a variety of flavors nationwide. Credit: Katrin BjorkGoodles CEO named to Inc.’s Female Founders 500 List: Inc. magazine has named Goodles CEO Jen Zeszut to its eighth annual Female Founders 500 list. Zeszut is recognized for her efforts that drove the Santa Cruz-based mac and cheese company to triple-digit growth in 2024. Goodles, launched by Zeszut and Paul Earle in 2020, also counts actor Gal Gadot among its investors/founding partners. The company’s products can now be found nationally in stores such as Target and Costco. Goodles’ line of boxed mac and cheese products are made with a proprietary noodle recipe that’s packed with protein, prebiotics and nutrients, in an array of gourmet flavors like cacio e pepe. Fast Company also named Goodles to its 2025 list of most innovative food companies.
Weather device company picks Cruz Foam for sustainable packaging: A Santa Cruz-headquartered company that makes weather devices will use hometown Cruz Foam to package its products. WeatherFlow-Tempest makes a variety of weather stations, including various weather meters, for personal and professional use. Starting in June, the company said it’s switching to using sustainable packaging materials made by Cruz Foam. Cruz Foam, founded in 2017, makes compostable and biodegradable protective packaging using natural materials like upcycled shrimp shells.
Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”
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Looking at the numbers
7%: That was the unemployment rate in January for Santa Cruz County, up from 6.2% in December but only slightly up from 6.9% in January 2024. It was higher than the state rate (5.5%) and the national rate (4.4%), according to the latest numbers from the California Employment Development Department. In total, the county lost an estimated 2,100 jobs between December and January, including 500 in the trade, transportation and utilities category.
Save the date
Wednesday, March 19: The Santa Cruz Area Chamber of Commerce will hold its next business after-hours event with representatives from the San Jose Mineta International Airport and the Santa Cruz Dream Inn. The event takes place from 5 to 7 p.m. at the Dream Inn, 175 West Cliff Dr. in Santa Cruz. Details and registration here.
Wednesday, March 19: The cities of Watsonville and Santa Cruz are co-hosting a job fair for employment in construction, electrical, plumbing, welding, HVAC (heating, ventilation and air conditioning), agriculture and related fields. The event, open to those aged 18 and up, will be held from 4 to 6:30 p.m. in the Watsonville Civic Plaza Community Room, 275 Main St., Watsonville. For details and registration, click here.
Friday, March 21: The Santa Cruz Small Business Camp will bring together a day of interactive sessions with local business owners, networking opportunities and a keynote address by Jared Truby of Cat & Cloud Coffee at the Santa Cruz Museum of Art and History. Details and registration here.
Tuesday, April 1: A ribbon-cutting will be held for West Coast Community Bank, the new name of the merged Santa Cruz County Bank-1st Capital Bank. The mixer takes place from 5:30 to 7:30 p.m. at the bank’s location at 75 River St. in Santa Cruz. Attendees are asked to register by March 25 here.
Thursday, April 3: The Santa Cruz County Chamber of Commerce will hold its annual awards gala at the Cocoanut Grove Ballroom in Santa Cruz from 5:30 to 9 p.m. Details and registration here.
Thursday, April 10: The Pajaro Valley Chamber of Commerce is hosting a business expo and job fair at the Santa Cruz County Fairgrounds in Watsonville from 4 to 7 p.m. Register here.
Thursday, May 1: Registration is now open for the 2025 Regional Economic Outlook, held by the Monterey Bay Economic Partnership. This year’s event occurs from 8 a.m. to 4 p.m. at Seascape Golf Club in Aptos. The keynote speaker is economist Jon Haveman, principal with Marin Economic Consulting, which provides reports for government agencies and economic development organizations. More details here.
Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.
Business news worth reading
Trump’s 200% tariff threat throws California wine industry into chaos (San Francisco Chronicle)
Thousands of California educators issued pink slips again this year (EdSource)
From Polaroid to vinyl, Gen Z is making retro tech one of 2025’s biggest trends (CNBC)
Have something to say? Lookout welcomes letters to the editor, within our policies, from readers. Guidelines here.
“}]] It’s still unclear exactly how President Donald Trump’s promised tariffs – and retaliatory measures from Mexico and Canada – will affect Santa Cruz County agriculture and particularly the all-important berry crop, Jessica M. Pasko reports in her weekly look at local business. Read More
