From Field to Fork

Taking in a professional convention has consequences. The attendee gets a break, brings home new ideas, builds new relationships, etc. The folks back home may dread the attendee’s return because it’s likely to mean some new scheme to “do things better.”

I attended the American Society of Association Executives convention in late August. (You knew there had to be an association for association people, right?) It is great to get out of the office and learn from fellow association execs that are facing the same issues we face and are willing to share solutions. Speaker Robert B. Tucker focused on innovative thinking. He talked about making innovation a systematic process, implementing idea management systems, collaborating with customers and suppliers, creating metrics and rewards, and involving everyone in the enterprise.

Tucker noted that there’s no such thing as a commodity (an undistinguished item in a sea of like items), just tired marketers. He stressed looking for new markets and new distribution channels. He challenged listeners to look outside their industry to find value and impact.

He also used a twist on a phrase that I liked. Tucker said we should ask ourselves “different” questions as we seek to innovate. That rang true with me – more so than the admonition to ask “better” questions, which makes a negative value judgment about the questions we’re already asking. Not only does this eliminate the value judgment, it also encourages us to open new lines of questioning that may lead to different paths, hence to innovation. So the next time you’re tempted to scour your brain for a “better” question, just let your mind wander to a “different” question and see where that gets you.

I enjoy getting out with my colleagues, examining common (or not-so-common) issues, and finding new ways to improve how I do my job. You’ve got that opportunity coming up as well. Come to Fresh Summit, October 15 to 18 in Orlando. Get out from behind your desk, engage on issues, and build relationships (new and established). Give yourself the mental and physical space to discover and develop the great idea that’s going to take your business to the next level.

In last year’s PMA Healthy Eating Trends 2009 report, the study found that few consumers (due to the economy) are moving away from fresh produce, but what they are doing is making adjustments among categories of fresh fruits and vegetables, toward varieties they recognize and depend on. On a larger scale, the economic environment has caused consumers to change their purchasing behavior. They’re spending less money on impulse purchases and more time at home. But will these new habits continue as the economy changes?

At Fresh Summit, join The Supermarket Guru, Phil Lempert, as he explores potential scenarios for consumer spending in the next few years with a focus on how these scenarios will impact the produce industry and your company’s business model. During the “Consumer Behavior: What’s Next?” workshop, learn what the produce industry is likely to look like in the future, and what challenges and opportunities your business will face as a result of future consumer spending patterns.

For a complete listing of the event’s education program, visit the Fresh Summit Web site and look at the schedule. If you’re planning to come to Orlando in October, remember that the deadline to register online and save is September 17. The last day to register in advance is October 1.

Oftentimes here on Field to Fork when we talk about agriculture and jobs, it’s within the context of immigration reform and farm labor issues. However, a study by Purdue University and the U.S. Department of Agriculture says that 15% of new jobs in the United States will be in the agriculture field.

The report predicts more than 50,000 jobs in agriculture will be added in the U.S. each year for the next five years, with growth expected in the veterinary medicine, food science, crop management consulting, plant science, biological engineering, specialty crop production, forest restoration, precision agriculture, climate change analysis, distance education, and natural resources conservation fields.

It also notes that the future job market for college graduates with degrees in food, renewable energy and environmental fields will depend on macroeconomic conditions and retirements, consumer food choices, public policy decisions, and global market shifts in population, income, food, and energy.

Here at PMA our Foundation for Industry Talent has been diligently working to attract, develop, and retain talent for the produce community and its value chain. The Foundation has a number of outreach programs to industry and numerous colleges and universities, as well as a career bank that allows companies to communicate their internship, entry and intermediate-level job openings to a diverse group of job seekers specifically knowledgeable in or interested in the fresh produce business.

To learn more about PMA FIT, visit the Foundation’s website.

Recently, the USDA put out its Agricultural Projections to 2019. With the usual caveats that this is not a forecast, it is a “conditional, long-run scenario about what would be expected to happen under a continuation of current farm legislation and specific assumptions about external conditions.” The report details those assumptions and external conditions such as the value of the dollar, global policies, economic growth, macroeconomics and more. And, it reports mainly on the usual suspects like cotton, corn, wheat, soybeans, rice, and other grains, with considerable attention to meat and poultry. Deep in the hundred-page document on page 66, 77, and 78 are the data about our industry. Then it’s back to barley, sorghum, and oats.

PMA’s Economic Reach and Impact of the Fresh Produce and Floral Industry shows that our industry represents 4.23% of U.S. GDP and one-third of U.S. animal/crop production worth about $300 billion in production/shipping alone ($554 billion when we include retail and foodservice). For every dollar of production value, our industry pumps out $16.75 of economic value.

Besides my not-so-disguised feelings about the short shrift produce gets in the report, I wanted to let you know what USDA said about its projections for the future of horticultural trade (given the caveats, and understand that this covers fresh and processed products):

• Annual growth from 2010 to 2019 will be strongest for fruits and tree nuts (2.8%), followed by vegetables (2.4%), and greenhouse/nursery crops (1.6%)
• Volume of farm production of horticultural crops is projected to rise .7% per year, with gains in producer prices at 1.9% per year.
• Imports will grow at 3.7% a year and exports at 2.8% per year (import and export of fresh will exceed that of processed products).
• Imports will increase as a percentage of the U.S. horticultural crops/products supply – from 47% in 2010 to 52% in 2019.
• Both exports and imports will grow, but imports will increase more than exports, increasing the U.S. trade deficit in horticultural crops/products ($13 billion in 2010, $20 billion in 2019).

Check out the report if you want more details on the forecast.

As the U.S. economy continues on the path to recovery, PMA President & CEO Bryan Silbermann will address consumer trends and their economic implications during PMA Fresh Connections: San Antonio on Thursday, February 4. He will share insights into how the fresh produce industry doing in the “new economy” and how consumer behaviors affect our rapidly-evolving industry.

For example: PMA research has found that even in the current economy, few consumers are moving away from fresh produce overall. But what they are doing is making adjustments among categories of fresh fruits and vegetables – seeking out familiar standbys that are available year-round and relatively inexpensive.

Seating for PMA’s Fresh Connections: San Antonio is limited, and open to both PMA members and non-members. Register by February 2 to receive the early-bird registration rate of $100 for PMA members and $150 for non-members. For more details, visit the PMA Web site.

Some 58 percent of mothers are making more home-cooked meals to save money, and 77 percent are using more leftovers, according to a study by the Marketing to Moms Coalition. However, the majority of mothers claim they are not scrimping on the quality of food for their children.

Related to the home-cooking trends in this study, PMA consumer research conducted this year found that consumers who believe “fruits and vegetables are very important parts of their diets” are more likely to employ healthier cooking techniques such as baking (80%), boiling (69%), grilling (65%), and steaming (62%). The PMA survey also noted that the top five most popular cuisines for these consumers are Italian, Mexican, Chinese, Spanish, and Vegetarian. Interestingly, the “Mediterranean diet” which has been lauded for its heavy use of fresh produce, was the eighth-ranked most popular cuisine.

For more about the Healthy Eating Trends 2009 study, visit Consumer Research Online on the PMA Web site.

In this blog we often talk about how PMA brings our members’ real-world experience to government officials. In late October, we turned the tables and asked Delaware Secretary of Agriculture Ed Kee to bring our staff his real world of government expertise. Secretary Kee is also the president of the National Association of State Departments of Agriculture (NASDA), so he has both a state and national perspective on ag issues.

Ag secretaries have to attend to all types of agriculture: livestock, poultry, grains, dairy, produce, and more. In Delaware, a state known more for corn and chickens than fresh produce, we’re lucky to have an ag secretary that came up through the ranks of the vegetable world. Secretary Kee talked to us about the various pressures growers face – the economy, the weather, food safety issues, consumer preferences, land-use pressures, buyer requirements, and a host of other issues. Some things the government can help with, but others are out of its control.

We learned a lot about the creative ways state government is trying to help its growers and the overall economy. (And if anyone is looking for a place to put a produce distribution center or a place for a “local” branch of a national or regional producer, Secretary Kee wants you to know that Delaware is within easy reach of 80 million people and huge consumer food outlets.)

We welcomed Secretary Kee’s insights and look forward to working with him in the future – both as our neighbor and as the head of NASDA.

Here at PMA we talk a lot about connections. Tens of thousands of connections will be made at Fresh Summit in Anaheim later this week. We offer a series of Fresh Connections events that focus on vital topics in a variety of regions. And members connect just by being members. So we’re pleased to see another type of connection as USDA strives to link consumers with farmers in the Know Your Farmer, Know Your Food program announced recently. It will use social media and other technologies to link consumers with the source of their food.

It is always good when consumers better understand where their food comes from and what it takes to get it to the table. We know from PMA research that consumers like to buy local produce, and one reason is so they can support their community. Even now as we move into the fall, many major supermarkets continue their local produce promotions with pictures of the farmers and strong promotional materials. And we see produce companies extending their reach to grow and source more local products.

As we rightly extol the virtues of local produce, we have to keep in mind that local produce cannot be the sole answer. First, local really doesn’t have a definition. I’ve mentioned before that we start to see “local” tomatoes in Delaware sometime in May, long before any Delaware field is fruiting. We have to be sure we don’t ruin the credibility of “local” with consumers by stretching the boundaries too far.

Second, we’ve come a long way since I was a girl and oranges in the winter were a big treat in northwest Missouri. As we work to get consumers eating more and more fresh produce – for their health and our industry’s health – we have to offer a wide variety of fresh, flavorful products year-round. Consumers like local, but they won’t want to give up citrus in the North or apples in the South. And no one wants to give up bananas. Local is great. Global is great. What we really need is increased consumption of all fresh produce.

Connections are important, especially between our industry and consumers. So let’s keep making those connections – from around the corner and around the world.

See you at Fresh Summit!

PMA members in the Minneapolis and Boston areas should mark their calendars now for two PMA Fresh Connections events. PMA Fresh Connections: Minneapolis will explore what is already happening in the area of produce sustainability, highlight opportunities from the buyer and supplier points of view, and give participants ideas they can put to work in their businesses right away.

Also on September 23, PMA Fresh Connections: Boston will focus on how companies within the produce industry are doing business during today’s tough economic times. Attendees will be able to network and brainstorm with peers from all parts of the supply chain to discuss how this “new economic era” will impact organizations’ business models.

Seating for both events is limited, so early registration is strongly encouraged. Visit the PMA Web site for more details.

On Monday I spoke to an impressive group of global regulators about the size and impact of the U.S. fresh produce industry. In addition to our two closest neighbors and largest trading partners – Canada and Mexico – the event attracted regulators from other key countries, including Argentina, Austria, Brazil, Chile, Costa Rica, Crosq Caricom, Dominica, France, Ghana, Israel, Italy, Jamaica, Malaysia, Netherlands, New Zealand, Nigeria, Serbia, South Africa, Slovakia, Spain and the United Kingdom. They were attending a fruit and vegetable standardization workshop hosted by the USDA’s Agricultural Marketing Service (AMS) and Foreign Agricultural Service (FAS). It was targeted to heads of regulatory/standardization interpretation agencies from key U.S. agricultural export markets and other trading partners. USDA indicated it was designed to promote the U.S. standardization system in support of U.S. positions at international fruit and vegetable standardization meetings.

Attendees were selected from countries which regularly participate in the international standardization meetings of Codex Alimentarius and the United Nations Economic Commission for Europe. Many of these attendees are also leading trainers in standards application in Europe, as well as inspection and standardization policy makers. USDA officials also said that in workshops of this type, it ‘s desireable for participants to have an understanding of the size and scope of the U.S. agricultural production and marketing system.

PMA’s Economic Reach and Impact of the Fresh Produce and Floral Industry study, released earlier this year provides exactly that type of information. So I was pleased to be able to proved a comprehensive over view of the U.S. produce industry to this august group. This was the first national study of its kind for produce (fresh fruits and vegetables) and mass-market floral – across the supply chain and it describes the economic reach and impact of our industry, including the entire supply chain. The produce industry is a major economic force, with substantial employment impact in every state and every congressional district.

In this case, we were happy to have this to help with global standardization efforts. It was an honor to meet with these global regulatory leaders.