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Saturday, October 3, 2009
State of the Industry 2009
Bryan Silbermann, president and CEO of PMA, presented his annual State of the Industry address at the Saturday morning general session. In the association's 60 years, it's grown from occupying a converted barbershop to representing more than 3,000 produce and floral businesses.
Economists are forecasting an emergence from this recession as soon as next year, but the industry has undergone a fundamental shift. And we're seeing the seeds of change for operating in the near future, Silbermann said.
First, businesses have to do more with less. Fewer acres, less water and fewer companies. But at the same time, global populations continue to grow. One of the biggest challenges will we water, and the discussion will dominate more than the food safety discussion we see now, Silbermann said. Globally, 70% of water is used by farmers, and in developing countries it's as high as 90%. The politics of water aces and management may be an even bigger issue, as growers in California, Oregon and abroad already understand.
Second, Silbermann said consumers are chainging. They're no longer looking at price and want, but at value and need, Silbermann said. 50% think the economy is still going to get worse, but they still want healthful items. More importantly, they want a connection to their food, which has led to a growth in local produce. This type of moral consumerism isn't going to go away, he said. And companies that source local benefit with a "healthy halo" that resonates with shoppers.
Third, the restaurant industry is changing. Sales are down and people are eating at home more, but produce still has opportunities. It offers cost savings foe restaurants, a healhful option for eating out and greater customer satisfaction. And PMA has partnered with NRA and IFDA to double use of produce at foodservice by 2020.
Fourth, food safety will continue to be important. Silbermann said he wants to see more and better research, better application of that research, a commitment to food safety from produce buyers and for food safety to be a fundamental part of produce businesses.
Fifth, the industry will continue to see more government intervention. That's why associations like PMA are important and it is working with FDA and CDC to prevent market interruptions and provide an industry perspective to government decissions.
Lastly, Silbermann said produce needs to be a part of the health care reform discussion. With obesity, and the costs associated with it, growing, produce is an effective preventive measure but it rarely comes up.
The produce industry has been hit by the economy, but there's still reason for optimism, Silbermann said. Companies that adapt to the changing business culture will prosper.
posted by Great American Publishing
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10:10 AM
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