August 2005
VOLUME 15, NUMBER 8

 

Speaker Highlights Industry Challenges

by Todd Foltz
The Packer - Oct. 18, 2004

SEVEN TRENDS
1. Scrutiny of growers’ use and perceived abuse on natural resources.

2. Food safey scares and consumer suspicions.

3. Global competition and markets.

4. Obesity and dealing with a population ready to improve its health.

5. Science and development of individualized nutrition through genetics.

6. Pressure from consumers to get things their way.

7. The power of food service.

SALINAS, Calif. - From global competition to public fears of resource use, food safety scares to increasingly picky consumers, fruit and vegetable producers face significant challenges nowadays.

That’s the word from Kerry Tucker, chief executive officer of Nuffer, Smith, Tucker Inc., San Diego, who spoke Sept. 22 at the first of four 2004 - 05 Ag Forums at the National Steinbeck Center.

Before producers get too depressed, tucker pointed out that despite the challenges they face, there are opportunities as well. The obesity epidemic makes America ripe for turning to healthier produce.

The explosion of ethinic flavors and cuisine is bringing opportunities for more products to the forefront,he said. And finally, new developments in technology could offer benefits to fruit and vegetable growers as well. Tucker argued that this fall producers will deal with seven priority trends.

Tuckers strategic planning and public relations firm has worked closely with various parts of the produce industry and has founded Food Foresight, which tracks food trends and information and publishes proprietary reports twice a year.

The first issue growers face now is their use and perceived abuse of natural resources.

Despite the efforts of growers to improve the efficiency of their water, land and other resource use, environmental activists are getting increasingly strident in their demands and vocal in their derision.

“The only thing that is certain is that it’s not going away,” he said.

The second issue is that a recent barrage of food safety scares - from mad cow disease to the Mexican green onion-related illnesses - is making consumers more suspicious of produce and other perishables.

This is happening even as grower-shippers strive to learn about ways to prevent the growing possible threat of a terrosist attack on the food supply, Tucker said.

The third issue is that of global competition and markets.

“Big global competitors and markets are engineering a wild ride,” he said. “Is it a threat? Yes. But it’s an opportunity, too.”

He pointed out that food products coming into the U.S. are growing twice the rate of those going out of the country. And 80% of the incoming products are going head-to-head with domestic, Tucker said.

But there is good news. Even as China imports more land-intensive crops such as grains and exports more labor-intensive crops such as produce, other markets may be emerging.

India for example, bases its diet on fruits and vegetables and has a middle and upper class of 250 million people capable of buying U.S. Products. That is a market potentially larger than Japan, which the U.S. could lose to Chinese producers.

The fourth and fifth trends are obesity and science. The former means the population is ripe to accept more fruits and vegetables as a way to improve its health.

And the latter is increasingly important to the ultimate development of individualized nutrition through genetics, something that could delineate to consumers exactly which and how much fruits and vegetables they should eat.

The sixth trend, tucker said is the increasing pressure put on producers by consumers. They want things their way, and producers and sellers that don’t respond will become obsolete, Tucker said.

And finally, food service continues to increase in power. Much of that comes from its innovative use of ethnic flavors and cuisine. Intuitive producers will find ways to supply this burgeoning market, Tucker said.

Wendy’s, for example, timed the release of its new Mediterranean salad for the Olympics, which were in Greece this summer.

“You really need to follow the hunt for flavors,” Tucker said.


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