• Greater demand for organically grown produce is now manifesting itself in North America in much the same way it did earlier in Europe. This will continue as consumers focus more on social accountability and the sustainability of current food production and distribution methods. Related to this growing trend is the expansion of demand for locally-grown produce, especially among younger consumers.
Consumer demand for fresh fruits and vegetables year round has been the engine for worldwide growth of the produce business. This growth has been facilitated by improvements in shipping (air and sea) technology and availability. Improvements in packaging, refrigeration, and modified atmosphere have assisted. This trade is not restricted just to U.S. based businesses but instead has made the produce world a much more competitive global market. That is one reason why more major U.S. based companies have been forced and empowered to become suppliers of produce from around the world rather than just producers who export.
Low-cost producers will increasingly put pressure on U.S. producers in global markets where we compete. The growth of the global trade infrastructure has created what Tom Friedman dubbed “the flattening of the world” – a new paradigm in which technology, transfer of intellectual capital, and a transportation network is both opportunity and threat. We’ll continue to see pressure on U.S. exporters to clearly differentiate the items we export and to source from elsewhere the products which can be grown more competitively in other regions of the world.
Some U.S. producers have the advantage of desirable varietals, production and harvesting know-how, and scale. But these are rapidly being eroded around the world as the world “flattens.” Competitors around the world have made huge advances in food safety capabilities, driven primarily by the demands of their customers – especially major European supermarket chains. We can’t look to GMP, GAP, or HACCP as somehow giving us a competitive edge when rigorous food safety demands such as EUREPGAP are routinely being met by exporters all over the produce exporting world.
PMA continues to be committed to bringing together buyers and sellers from countries around the world to create a global community of interest. We do that through Fresh Summit, through the leadership we’ve brought to technology standards, and through our drive to boost consumption which created the U.S. 5 A Day for Better Health program 15 years ago. Others look to us as the standard bearer for innovation and excellence and we take that role very seriously. I see the creation of PMA’s new Education Foundation as the vehicle to drive worldwide interest in our industry as a career of choice: attracting and building the next generation of produce leaders is one of the greatest challenges we face on every continent.
In response to recommendations from our International Council, PMA is increasing global representation in its leadership groups – from supplier to retailer. Added to industry leaders from North America are members who are retailers and suppliers from Australia, England, Mexico and South Africa. PMA has to reflect the real diversity of the global marketplace our members now represent. That means new ways of thinking and new faces in leadership.
One is that mentioned directly above: the need to attract and develop new talent into our industry
Second is the imperative to focus more on flavor, convenience, and nutrition in that order of priority
Third is defining how they stand out from the crowd – breaking out of the commodity trap in which most have operated for so long
Develop the best-tasting and highest quality produce items for global markets.
Identify the unique niches where we have true competitive advantage over lower-cost producers. Use the power of established U.S. brands in consumer markets where that means quality and value.
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