J U LY 2015
PUTTING THE PIECES TOGETHER
ISSUES FACING A GLOBAL SUPPLY CHAIN
QUALITY…people, products and service
VISION…innovating into the future
PASSION…for excellence in everything we do
Mann Packing’s core values of “Honor, Quality, Vision and Passion” have contributed to our rich 75+ year history of family farming, sustainability and innovative products. We are proud to be a women-owned company focused on providing high quality products to customers throughout North America. Salinas, CA | 800-884-6266 | veggiesmadeeasy.com
PHOTOGRAPH: ISTOCKPHOTO / WANDERLUSTER
contents PMA Foodservice Conference Committee Co-Chairs Jeff DeBoer and Fritz Stelter share highlights from this issue of fresh.
4 F LORAL Breeding is a Lesson in Symbiotic Relationships
6 ISSUES LEADERSHIP FDA Explores New Nutrition Fact Labeling for Produce
8 INDUSTRY TALENT To Thrive, Mid-Level Leaders Must Utilize Unique Skills
10 GLOBAL CONNECTIONS Major Factors Will Shift Global Industry Into Uncertain Future
12 GLOBAL CONNECTIONS Frozen Berry Incident Renews Food Safety Focus in A-NZ
16 GLOBAL CONNECTIONS
J U LY 2015
24 3 W ELCOME LETTER
COVER PHOTOGRAPH: ISTOCKPHOTO / NARVIKK
FEATURES 22 THE “ISSUES” ISSUE 24 U.S. Ports, Produce Industry Prepare for Panama Canal Expansion
28 Produce Growers Need to Tell Their Story 30 Finding Great Talent Takes Time, Strategy 33 Why Should Junk Food Have All the Fun? 37 Lessons Learned in the Aftermath of the West Coast Port Strike 40 U.S. Immigration Reform Faces Uncertain Future
42 eat brighter!™ MAKES POSITIVE
IMPACT ON SALES, EXPERIENCE
A Look Ahead at Foodservice Conference
18 SCIENCE & TECHNOLOGY Groups Support Increased FSMA Implementation Funding
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fresh Executive Editor Elizabeth Rich Managing Editor Danielle Vickery Art Director Marilyn Steranko Design Director Kelly Carter Production Manager Jennifer Rodgers
Copy Editor Toni Eaton Advertising Sales Manager Robyn Florio Contributing Writers Tom Coombe Jenna Rittenhouse Elissa Vallano
45 WELCOME NEW PMA MEMBERS 46 PMA GOLD CIRCLE CAMPAIGN SUPPORTERS 48 MEMBER PROFILE Urban Produce
50 MEMBER PROFILE Total Produce
52 MEMBER PROFILE Tanimura & Antle
54 MEMBER PROFILE Produce Pro Software
56 MEMBER PROFILE Dümmen Orange
58 ANNUAL PARTNER PROFILE Duda Farm Fresh Foods
60 UPCOMING PMA AND PMA FOUNDATION EVENTS Save the date!
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For subscriptions and address changes, call +1 (302) 738-7100. To view past issues, visit the fresh Magazine page under About PMA at pma.com. Editorial offices: email@example.com Advertising offices: firstname.lastname@example.org Member services: email@example.com © 2015 by Produce Marketing Association. All rights reserved. Materials may not be reproduced or translated without permission.
welcome This month, fresh produce and foodservice industry members are gathering in Monterey, California, for the 34th annual PMA Foodservice Conference. A combination of compelling discussions on the innovation of fresh fruits and vegetables on menus and at restaurants, along with some of California’s most captivating coastal views, will no doubt result in a memorable and productive weekend for all. The priority for many of the attendees will be networking and assessing new products, technologies and marketing techniques. And of the 1,800+ attendees making the trip to the “Salad Bowl of the World” some will come from foodservice operation
or distribution, and others from the grower-shipper side and promotional organizations. Some hail from transportation and logistics and service. The different needs, viewpoints and backgrounds will, like a salad bowl, blend together to push toward a common goal for us all: to drive demand. From the common goal, though, often comes common issues. This issue of fresh magazine explores some of the issues impacting the fresh produce and floral industries as a whole. We’ll look at transportation, supply chain relationships, category marketing, etc. And, what you don’t find in the issue, you might explore through research and insight from your peers and PMA staff via pma.com.
Jeff DeBoer, Sr. Director, Produce Sourcing, Sysco Corporation and Fritz Stelter, Executive Vice President, Field Fresh Foods PMA Foodservice Conference Committee Co-Chairs
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F LO R A L
Breeding is a Lesson in Symbiotic Relationships by Elissa Vallano
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The floral industry’s consumer landscape has shifted dramatically over the past few years. Techsavvy consumers expect affordability and convenience from all of their shopping experiences, and that mindset is impacting floral sales in unforeseen ways. To meet these new demands, floral breeders, growers and retailers are forming new alliances to stay ahead of the curve and ensure complete customer satisfaction. “The winner in a closer relationship between breeders and retailers has to be the end-use customer,” said Brad Smith, Retail Category Manager at Sakata Seed America, Inc. “By working closely together, we can find the ‘sweet spots’ of items and ideas that overlap each participants’ demands. And that’ll help ensure profitability of each while making sure the consumer is always at the center of what we are doing.” The union between breeders, growers, retailers and consumers is mutually advantageous, especially when it comes to planning for the future. All sides have a valuable knowledge base that the other needs to effectively bring new products to market — but that requires constant feedback. The introduction of a new variety is really successful when all players in the supply chain benefit from it. A new variety has to satisfy the consumer; bringing the colors and shapes he is looking for but without sacrificing the results retailers and growers need for a sustainable business. “The relationship and collaboration between
retailers and breeders is very important as they represent two ends in the value chain of the product,” Ori Danziger, regional sales manager Latin America at Danziger “DAN” Flower Farm, said. “The retailer understands the end consumer needs and requirements and is able to define and portray these needs to the breeder so that the breeder can tailor breed the perfect variety.” From Walmart and Sam’s Club perspective, we are looking for the individual characteristics, quality and color that suit our end consumer best. Finding out what this is and getting this information back to the breeders is a huge challenge but will ultimately make customers more and more satisfied with what they buy, said Debbie Zoellick, Senior Sourcing Manager at Walmart. At Walmart, the GFS — Global Floral Sourcing team — is working with specific breeders. Together they are looking into new and different colors, more long-lasting varieties, specific colors all year long to suit more of our customers, brighter colors and, if at all possible, better smell. “We are partnering with breeders to watch promising crops that are being tested by some of our suppliers. This is a very laborious process that we are trying to learn more about so we can work together with breeders and specific farms to obtain a narrower version of what we would like to see in our clubs and stores,” Zoellick said. Sharing goals should make it easier for breeders, growers and retailers to achieve them. And as
the floral industry moves forward into new and unchartered territory, there’s no denying the fact that there’s safety — and more customer satisfaction — in numbers. Agronomists at Queens Bouquet Network agree that innovation has come through with techniques that make it possible to improve commercial varieties via new possibilities of making crosses as Embryo Rescue for Alstroemeria. Traditional breeding has also brought to the market new colors like green chrysanthemums, roses or carnations that were not present in nature but have been selected and improved to become a great success in the market. More advanced innovations, such as genetic modified varieties, are being commercialized by Florigene, introducing the blue color in roses
and carnations, or by Danziger, creating a pink gypsophila; however, the future of these investments is not yet clear in cut flowers. At Queens Bouquet Network, it is important to have a close relationship with breeders to know what is coming to the market, which traits are being sought by them. “This will help us to plan together future programs and give the breeder the feedback of what happens on the commercial side. Growers are also a key piece in the relationship as good varieties should also bring advantages at production level to guarantee availability of the product and sustainability of all parts,” said Luisa Ortega, Quality and Postharvest Director, Farms System, Queens Bouquet Network.
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FDA Explores New Nutrition Fact Labeling for Produce by Kathy Means PMA VP of Industry Relations
The iconic U.S. Nutrition Facts label on packaging will change in the next few years. Though it sounds like a long way off, it’s not. In 2014, the U.S. Food and Drug Administration (FDA) proposed rules to revise the Nutrition Facts label requirements. Although the revisions’ effect on nutrition labeling of fresh produce remains years away, now is the time for the industry to understand the timelines and prepare accordingly. Produce businesses order packaging, which might have the Nutrition Facts label on it, as many as two or more years in advance. In addition, the requirement for new mandatory nutrient listings may mean some commodities that do not yet have that information will have to do some nutrition research. FDA solicited comments on these proposals and is considering those comments as it prepares to issue a final rule, expected this year.
VOLUNTARY LABELING FOR PRODUCE: EXISTING RULES The proposed changes would affect all packaged foods except certain meat, poultry and processed egg products, which are regulated by the U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS). Fresh produce, however, falls under a special, voluntary labeling program from FDA. The Nutrition Labeling and Education Act specifically exempts raw agricultural commodities (including raw fruit and vegetables) from the mandatory nutrition
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labeling requirements that apply to most foods. In place of mandatory nutrition labeling, the top 20 most frequently consumed fruits and the top 20 most frequently consumed vegetables in the United States (the top 40) are subject to a voluntary program whereby retailers must provide nutrition labeling at the point of purchase. However, if a nutrient content claim is made for any fresh fruit or vegetable, whether top 40 or otherwise, the exemption disappears and nutrition labeling at point of purchase becomes mandatory. Even though the program is voluntary for fresh fruits and vegetables, produce marketers that choose to use the Nutrition Facts label will have to use the updated label once it goes into effect. Often low in calories and fat and high in key nutrients, produce has such a good nutrition story to tell that PMA recommends produce marketers use nutrition labeling in their marketing efforts. And, to maintain the voluntary status and the flexibility that this status allows the industry, retailers must meet a certain level of compliance (supplier-labeled products “count” toward compliance). If the industry does not meet that level of compliance, the FDA can make the program mandatory.
PROPOSED CHANGES: SPECIFIC NUTRIENTS One of the proposed changes would no longer require vitamins A and C to be listed on the label. These are key nutrients for fresh produce that although not required under the proposal could still
be listed voluntarily. Because U.S. consumers do not consume enough vitamin D and potassium, FDA proposes adding those to the Nutrition Facts label so consumers can understand what foods will give them more of these nutrients. Produce shines in terms of potassium, so this will be positive for the industry. In fact, many produce marketers already voluntarily list potassium levels on the current Nutrition Facts label.
PROPOSED CHANGES: LABEL FORMAT FDA’s proposals would change the label in several key ways, including more prominent listings for calories and serving sizes. Other proposed changes include: • Adding declaration of “Added Sugars” indented after “Sugars” • Removing “Calories from Fat” • Changing “Amount Per Serving” to “Amount Per__”, with the blank filled in with the serving size • Replacing “Total Carbohydrates” with “Total Carbs” • Adding declaration of potassium and vitamin D
PHOTOGRAPH: ISTOCKPHOTO / SKYNESHER
• Making the declaration of vitamins A and C voluntary (calcium and iron are still mandatory) • Declaring amount and “Percent Daily Value” of vitamin D, calcium, iron and potassium • Revising the Daily Values (DV) for a variety of nutrients such as sodium, calcium, dietary fiber and vitamin D • Updating reference amounts customarily consumed (RACCs), which are used to determine serving sizes • Labeling packaged foods typically eaten in one sitting as one serving and declaring calorie and nutrient information for the whole package
• Using “dual column” labels to indicate calories and nutrient information on both “per serving” and “per package,” for packages that could be consumed in one sitting or multiple sittings, Shifting “Percent Daily Value” to the left • Changing the footnote to better explain the meaning of “Percent Daily Value”
PROPOSED TIMELINE FDA has proposed that any final rules resulting from the proposed rules become effective 60 days after the date of the final rule’s publication in the Federal Register with a compliance date two years after the effective date. FDA understands the industry will need time to analyze products for which there may be new mandatory nutrient declarations, make any required changes to their labels, review and update their records of product labels, and print new labels. The current thinking is that the compliance date could be Jan. 1, 2018. For more information, visit fda.gov.
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I N D U S T RY TA L E N T
To Thrive, Mid-level Leaders Must Utilize Unique Skills by Jenna Rittenhouse
Knowing your own difference and learning how to put that difference to productive use, helps you develop a global perspective for appreciating and utilizing the difference that others bring.” —Ken Tucker senior partner TAG Consulting
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Vision, direction, strategy and recognition are often developed by and attributed to the top leaders of a company. However, it’s the sometimes underappreciated mid-level leader that is tasked with the legwork of making goals come to fruition, and that’s quite the challenge to undertake. Ken Tucker, senior partner at TAG Consulting, has some unique ideas about what mid-level leaders mean to an organization, and what they can do to fully accomplish all the position requires of them. Tucker, who specializes in leadership development among other areas, says mid-level leaders are part of the past, present and future of their organization. “Quite often they are identified and selected, based upon the accrued wisdom and understanding the organization has as to what skills, knowledge, experience, attitudes, emotions and behaviors leaders must have in order to perform at excellence within the given culture,” he says. They become the face of the organization for its employees in the present. A company’s mission and values are taught to and carried out through them, if they are in fact fulfilling them. The way a company’s employees interact and work together can be influenced by how mid-level leaders perform as well, Tucker says. And very often the next senior leaders of a company are selected from this group, which means they can greatly transform the future of an organization. “With this type of potential impact, it is crucial that organizations help mid-level leaders develop
Ken Tucker senior partner TAG Consulting
a global perspective by helping them first to value and put to productive use their own difference,” he says. “Knowing your own difference and learning how to put that difference to productive use helps you develop a global perspective for appreciating and utilizing the difference that others bring.” Tucker says the key for mid-level leaders to find their place within the company is to determine what capability is specific to only them, what he calls the “5 percent” of their skills. This is something a midlevel leader finds is different from what anyone else in the organization can do at his or her level. “To be a successful leader you must value and understand the unique difference you bring to bear within your organization,” he says. “The common denominator for effective leaders is this: They put to good and productive use that which is different about them.”
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G LO B A L CO N N E C T I O N S
Major Factors Will Shift Global Industry Into Uncertain Future by Jenna Rittenhouse
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Change is coming. In the next 10 years, a myriad of factors will transform the produce and floral global trade industries, bringing new markets, new talent and new technology into the foreground. What is left to be determined is how well companies will adapt and how they will face the challenge ahead. Population growth will be a huge factor in determining how the future market will take shape. By the year 2024, the Asia-Pacific region is predicted to have a population greater than 4.3 billion, with half living in urban areas. China and India will house the
world’s largest economies, which will necessitate a great shift in consumer expenditure and fresh food consumption, according to Euromonitor. In addition to population growth, several new free trade agreements (FTA) have cropped up since the 1990s, eliminating some previous barriers like tariffs, taxes and other regulations. These agreements were a major factor in increasing global agricultural exports to $1.8 trillion in 2013, according to Euromonitor. “We are seeing countries such as China, India, Hong Kong and Malaysia experiencing macroeconomic and social trends that would delight any grower, shipper, wholesaler or retailer in the fresh produce industry,” Heriberto Vlaminck, vice president of operations, Triple H, says. “Their healthy and strong GDP growth, the rapidly rising middle class and populations moving more and more into cities, all favor modern trade, making this region a desirable market to turn to, target and participate.” While the percent of people living in urban centers varies for each country within Southeast Asia, it is growing. According to McKinsey Global Institute (funded by McKinsey & Company, publisher of the McKinsey Quarterly), as of 2014 just over one-third of the region’s population lived in cities. By 2030, McKinsey expects that almost 45 percent of the population in the region will be living in cities. As millions
“We are seeing countries such as China, India, Hong Kong and Malaysia experiencing macroeconomic and social trends that would delight any grower, shipper, wholesaler or retailer in the fresh produce industry.” Heriberto Vlaminck, vice president of operations, Triple H
move to the cities of Southeast Asia for better job opportunities, the region is gaining a new wave of consumers with considerable spending power. Vlaminck warns that major players need to be strategic about the way they react to urbanization trends. “Even though macro trends make this region attractive, there are still important challenges that — in our opinion — need to be addressed in a thoughtful way before jumping in, if we truly intend to become and remain a strong player for the long run,” he says. Along with a bolstered middle class will come a more diverse workforce, causing companies to invest in better methods for obtaining and keep-
ing their best talent. Companies will face structural unemployment problems, which arise when some skill sets are no longer needed for reasons like industry consolidation, technological advancements or culture change. The shift away from manual labor toward mechanization and technology will inflame these issues further. “Technology continues to advance in transportation and freight solutions for perishable produce, which results in reducing barriers and allowing an increase in the volume of exports to Asia, Eastern Europe and Central Europe,” Vlaminck says. As exports continue to increase, more pressure will be put on the ports worldwide forcing increased infrastructure and new technology investments.
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G LO B A L CO N N E C T I O N S
by Richard Bennett, Technology Manager, Produce Marketing Association AustraliaNew Zealand
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More than 30 cases of hepatitis A virus (HAV) have been reported in Australia associated with frozen berry products packaged in China, commencing in mid-February 2015. Despite the fact that reported HAV infections to date are down 25 percent in 2014, and foodborne illness overall in Australia are trending down, extensive and ongoing media coverage of illnesses and the associated recalls has led to widespread consumer awareness and response. Sales of frozen products have plummeted as expected. Opportunities have been created for domestic producers to fill the market gap, including
buoyant sales of fresh product and rapid development of import-replacement frozen products. Despite this being an imported processed product, and the negative commercial repercussions have only been directly felt by the brand owner, the media attention has reminded the Australian and New Zealand fresh produce sector of their vulnerability. The consequences of a lapse in food safety process controls relating to any pathogen or incident that can bring about reputational harm can be devastating to a business or indeed an entire industry sector. Whilst this hasn’t been entirely new ground for the produce industries in A-NZ, we certainly have not had to endure the likes of the large outbreaks of foodborne illness that have occurred in North America and Europe. But this incident has renewed the focus on two important aspects of contemporary risk management. The first aspect is crisis management, starting with the need to prevent a crisis as much as possible by having the right attitude towards food safety backed up with the necessary systems. Even with the best prevention systems and intentions, glitches can and do happen and you might find yourself in need of a plan to manage the unthinkable. Good prevention and preparation will make all the difference to response and recovery. There’s plenty of evidence to show that resilience – the ability of a business to bounce back – is almost directly related to how you respond, which is directly related to what you have done to prevent
PHOTOGRAPH: ISTOCKPHOTO / MTREASURE
Frozen Berry Incident Renews Food Safety Focus in A-NZ
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and prepare in the first place. There is certainly renewed interest in the rigour of our food safety systems, in the auditing of those systems and particularly approved supplier arrangements, and in having crisis management arrangements in place. The second aspect is about ensuring that your systems reflect the latest in best practice and research outcomes. We see this daily in areas such as the automotive industry, health care, entertainment, household appliances, energy generation. The list goes on. Just about everything we see and touch daily is constantly improving to the benefit of us as consumers, and so it should be with food safety as well. Not having adopted a new development that has been established through research is no excuse in the eyes of consumers. We consumers make our own long-term food and recreation choices about health and nutrition, but we don’t tolerate a lack of safety for a second. The Australian and New Zealand fresh produce industry came together to form the Fresh Produce Safety Centre in May 2014, to create a focus on research and outreach to inform and educate. Modelled on the Center for Produce Safety, the initiative was guided by Produce Marketing Association Australia-New Zealand and the University of Sydney and supported by those and other organisations along the fresh produce value chain. That support is both financial, with matching funds through Hor-
PHOTOGRAPH: ISTOCKPHOTO / XRENDER
More than 30 cases of the Hepatitis A virus were reportedly caused by frozen berries packaged in China.
ticulture Innovation Australia, and also in terms of the considerable voluntary time and effort contributed by individuals that is so much a part of how this industry makes progress. The Fresh Produce Safety Centre is encouraging best practice in food safety by recently commissioning two projects. These projects reflect industry priorities developed over the last 18 months and are funded entirely by generous industry members. The first project is called Understanding the Gaps (UtG). Industry considered that we didn’t need to undertake new applied research in microbiological contamination until we had a clear picture of the current global literature on the subject. We could then commission specific research if a relevant gap is identified. The UtG literature review will cover organic inputs and compost, water used pre-harvest, other production variables and storage and transport as a source of contamination. Additional work will review the literature relating to the interaction between sanitisers and fungicides. The output of this review will inform the second project of the Fresh Produce Safety Centre, that being to revise the Guidelines for On-Farm Food Safety for Fresh Produce. The guidelines have been used extensively for food safety training and other uses but have not been revised for a number of years. The scope will be deepened to incorporate aspects not covered earlier and extended beyond the farm gate into the value chain. The timing of both projects couldn’t be better. They prove to consumers via the media and to industry itself that the industry is not complacent about food safety, and the recent surge in interest will ensure rapid adoption of relevant findings. This proactive approach is certainly not alarmist or a knee-jerk reaction; the work of the Fresh Produce Safety Centre is there to get industry thinking about and acting on food safety hazards, risk assessments, and how to effectively prevent and prepare so that you don’t have to respond and recover.
G LO B A L CO N N E C T I O N S
A Look Ahead at PMA Foodservice Conference PMA’s Foodservice Conference & Expo July 24-26, 2015 Monterey, California fsc.pma.com
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This year’s PMA Foodservice Conference & Expo features some of the same attractions that have made it so great for 34 years, as well as new and exciting additions and changes based on attendee feedback. There will be even more opportunities for networking, including a new networking lounge and education center, where you can meet existing partners and build new relationships. The casual lounge areas will provide space for conversation, reception and social activities, so you’ll find it easier than ever to conduct business. At the Relax and Recharge Café, you’ll be able to charge your phone, print off boarding passes and enjoy some peace and quiet. The expo is still “the best five hours in foodservice,” featuring more than 160 exhibitors from across the fresh produce supply chain. Educational sessions will be presented by expert speakers and buyers inside the industry and from outside the industry. Formats will include panels, group discussions and question-and-answer sessions, and will allow us to cover a wide range of topics in a single, focused day. And learn smart ways to use technology to work more efficiently and more cost-effectively. PMA Foundation’s popular Joe Nucci Memorial Golf Tournament is being held on a new day this year, on Thursday, July 23 from 1 to 8 p.m. The Opening Reception: A Taste of FSC will be held outside in Custom House Plaza, with innovative fresh produce menus from San Jose’s Roaming Hunger food trucks. Develop new business relationships and reconnect with old friends over fantastic
food and drinks in a casual, outdoor setting. We’re bringing back the hands-on fruit and veggie training, so you can pick up a knife and learn how to select, store, prep and serve all kinds of fresh produce. You’ll also get tips on proper food safety and handling procedures. At lunch, you will have the opportunity to interact one-on-one with chefs while sampling new flavors and discovering new ways to incorporate fresh produce on your menu at “Chef Talks: A Strolling Lunch.” We’ll talk about the latest “foodie” trends shaping the way customers eat. What’s the next global taste? Through recipes, tastings and presentations, you’ll get to experience these flavors that will win customers and will keep them coming back. Learn more at fsc.pma.com.
S C I E N C E & T E C H N O LO G Y
Groups Support Increased FSMA Implementation Funding
by Dr. Jim Gorny PMA Vice President of Food Safety & Technology
On behalf of the fresh produce industry, PMA joined 20 other food organizations from across the nation to show support for increased funding for the U.S. Food and Drug Administration’s (FDA) food safety budget by $109.5 million, for Food Safety Modernization Act (FSMA) implementation. The letter below underscores a notion shared by many — that prevention is the cornerstone of the nation’s food safety strategy. Executing upon requirements outlined by the proposed rules once they are finalized and the compliance period ends requires an update and increase to FDA’s food safety tools — from regulations to infrastructure. Those tools, along with the combined effort and commitment of the entire industry, will take the appropriate funding to ensure implementation is done correctly. The Honorable Harold Rogers, Chairman House Committee on Appropriations The Capitol, Room H-305 Washington, DC 20515 The Honorable Nita M. Lowey, Ranking Member House Committee on Appropriations, Minority 1016 Longworth House Office Building Washington, DC 20515 The Honorable Thad Cochran, Chairman Senate Committee on Appropriations The Capitol, Room S-128 Washington, DC 20510
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The Honorable Barbara A. Mikulski, Ranking Member Senate Committee on Appropriations, Minority The Capitol, Room S-146A Washington, DC 20510 Dear Chairmen Rogers and Cochran, Ranking Member Lowey and Vice Chairwoman Mikulski: We write to ask for your support for increased funding for the U.S. Food and Drug Administration’s (FDA) food safety budget in the Fiscal Year 2016 Agriculture/FDA Appropriations legislation. For all our companies and associations, food safety is our number one priority and represents a critical standard we work hard to meet every day. Consumer confidence in our companies and associations and in our brands is the foundation of everything we do and the reason we invest our reputations and resources in producing safe products. We recognize and appreciate the previous investments Congress has made to ensure that FDA is on track to implement the FDA Food Safety Modernization Act (FSMA) in a timely and efficient manner. As you know, FSMA encompasses sweeping reform of our nation’s food safety laws and requires a new approach from FDA. The fundamental goal of FSMA — to implement modernized practices across the industry, and as a result, ensure a safer food supply — will inspire consumer confidence in our products and eliminate unnecessary risks that threaten the public’s health. FSMA places prevention as the cornerstone of our nation’s food safety strategy. It includes new re-
Download a list of our Certified Members at LGMA.CA.GOV
The LGMA is a unique and rigorous science-based food safety system that protects public health by reducing potential sources of contamination, and establishes a culture of food safety on the farm. The LGMA program utilizes government auditors that are employed by the California Department of Food and Agriculture and licensed by the U.S. Department of Agriculture. Members must be in 100 percent compliance with all of the LGMA's mandatory food safety practices in order to remain certiďŹ ed.
• Education and technical assistance for industry; • Technical staffing and guidance development at FDA; • Building the new import safety system; and • Risk analytics and evaluation.
quirements for manufacturers and provides the FDA with the authorities it needs to adequately fulfill its food safety mission. This new focus on prevention and expanded authority as granted by Congress necessitates an update and increase to FDA’s food safety tools, from regulations to infrastructure. This year, the FDA will begin to finalize and implement the new rules, regulations and guidance documents necessary to clearly define industry compliance under the new law. We look forward to working with the agency as it finalizes the rules and with Congress to ensure that FDA’s final rules target risk and follow congressional intent, and that FDA has the resources necessary to implement them. In order to maintain consumer confidence in the safety and integrity of America’s food supply and to reduce the number of foodborne illnesses, it is important that FDA also has the infrastructure in place to implement FSMA once the rules are finalized and after the appropriate compliance period ends. To adequately fulfill its food safety mission in this timeline, FDA needs the appropriate level of funding specifically to address these priorities: • Inspection modernization and training; • Advancing the National Integrated Food Safety System,
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Sincerely, The American Bakers Association The American Frozen Food Institute Campbell’s, Inc. Cargill, Inc. The Coca Cola Company Costco Wholesale Corporation ConAgra Foods, Inc The Dannon Company, Inc. General Mills, Inc. The Grocery Manufacturers Association The International Bottled Water Association Kraft Foods Group, Inc. Land O’Lakes, Inc. Mars, Inc. Nestlé USA PepsiCo, Inc. Produce Marketing Association Tyson Foods, Inc. Unilever, Inc. Wal-Mart Stores, Inc. Kellogg Company The American Spice Trade Association
PHOTOGRAPH COURTESY OF FDA
A closer look at processing.
Our commitment to food safety is steadfast and we need a strong FDA as our partner to fully implement FSMA and to play its proper role in ensuring the safety of the nation’s food supply. With the additional $109.5 million in new budget authority requested by FDA, we also welcome congressional oversight; not only to ensure these investments are implemented effectively, but also to make certain that the agency’s regulatory implementation of FSMA is consistent with what the law requires, and what Congress intended in adopting the law. We look forward to working with you as the Fiscal Year 2016 appropriations process moves forward.
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THE “ISSUES” ISSUE The key to overcoming issues before they become problems is information.
Industries, such as produce, floral and foodservice, each have their own set of challenges. What can set us apart from others, however, is the ability to anticipate those issues and sometimes prevent them. It all starts with honesty. Companies that are transparent about their product are winning with consumers of all ages — especially millennials. Consumers have made it clear they want to know where a product comes from, how it’s grown and what’s in it. And innovative marketing campaigns for fresh fruits and veggies are tapping into some of the strategies that have seen success with center store goods.
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PHOTOGRAPH: ISTOCKPHOTO / SASHKINW
Planning ahead can go a long way toward preventing issues such as staffing. Educating prospective employees while they’re still in school, mentoring those who are ready to choose a path and encouraging those already within your business are all ways the floral and produce industries are working to prevent a shortage of talent. Of course, there are some issues no one can predict or control. Circumstances that affect transportation can stop distribution and disrupt the entire supply chain. Understanding the process — and important changes to that process — and having contingency plans will put us ahead.
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THE “ISSUES” ISSUE
U.S. PORTS, PRODUCE INDUSTRY PREPARE FOR
PANAMA CANAL EXPANSION by Elissa Vallano
he produce shipping industry has faced a number of challenges in recent years — from finding adequate carrier capacity to maintaining proper in-transit temperatures. Now, with the completion of the Panama Canal expansion on the horizon, the produce industry is poised to reap the benefits of this project that has garnered worldwide interest. As it approaches the finish line, the current $5.25-billion expansion of the Panama Canal will add a third set of locks to accommodate supertankers and the largest container and passenger ships, also known as “Post-Panamax” ships. Italy’s Salini Impregilo and Spain’s Sacyr are spearheading the project, which officials expect to be completed by April 2016. This expansion is a long time in the making, and the produce industry has been anxiously awaiting the potential to capitalize on one of the world’s busiest maritime routes. “Produce travels faster and farther than ever before, and at the same time, the quality improved,” Jose Gomez Bazan, Chief Executive Officer at Camposol Trading, said. “In the end, growers can
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send their products anywhere, and retailers can get their product from anywhere.” Camposol is one of the largest and fastest growing agricultural producers in the world — employing more than 13,000 employees on a regular basis. It’s also the second largest employer in Peru and the biggest producer and exporter of asparagus in the world. Combined with its 5,000-acre avocado plantation, which is roughly the size of Manhattan, Camposol is no stranger to the challenges and opportunities of shipping produce. “No question that traceability and food safety are paramount nowadays, and reefer containers help a lot to keep them intact from the farm packing side to the supermarket distribution center,” Bazan said. “It’s created a revolution in the worldwide trade.” In the last 10 years, the produce shipping industry has shifted from refrigerated pallet vessels to reefer containers. Also known as refrigerated containers, reefer containers are used for freight transport of temperature-sensitive cargo. This state-of-the-art
PHOTOGRAPH: ISTOCKPHOTO / EMPPHOTOGRAPHY
“The advances in communication and Internet have created a new era of commerce,” said Jose Gomez Bazan, Chief Executive Officer at Camposol Trading. “Before, the grower was waiting on the banana boat to load their product, with little margin for negotiation or alternatives. Today the grower can order a container to pick up his product next to his farm and get delivered to a customer in Norway or Japan; and, all that within a couple of clicks, almost as easy as buying an airline ticket on a website.”
technology not only enables produce to be transported by sea, but also inland. It’s been a game-changer for the industry, and many U.S. ports have struggled to keep up with supply-chain demands that have made reefer containers an increasingly preferred method of produce transportation. While the West Coast is already accustomed to receiving the big container ships, the East Coast now requires certain infrastructure improvements to handle them. Today, fully-laden container ships can require drafts of more than 45 feet, while bulk vessels may need drafts of 60 feet or more. Improvements to surrounding highways, equipment and terminal ramps are all essential. This
opportunity has essentially created an infrastructure race along the East Coast; ports from Boston down to Miami are investing close to a billion dollars to compete in a Post-Panamax world. To give you an idea of amount of traffic at U.S. ports, the U.S. Maritime Administration noted in 2011 that 7,836 ocean-going vessels made 68,036 calls at U.S. ports. Vessel calls were up 7.9 percent from five years earlier, and increased 13.6 percent from 2010. Thirty-three percent of these calls were from container ships. In 2011, U.S. ports accounted for nearly 7.3 percent of global vessel calls, ranking the U.S. second in terms of overall calls. At the same time, growers such as Camposol are weighing their
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shipping options and trying to predict how the Panama Canal expansion may affect their supply chains and distribution. Camposol is setting up for big gains. In fact it is currently expanding and will soon become the largest private employer in Peru, with over 20,000 employees. “The advances in communication and Internet have created a new era of commerce,” Bazan said. “Before, the grower was waiting on the banana boat to load their product, with little margin for negotiation or alternatives. Today the grower can order a container to pick up his production next to his farm and get delivered to a customer in Norway or Japan, and all that within a couple of clicks, almost as easy as buying an airline ticket on a website.” Even with the industry’s advances in technology, supply chains are still sensitive to demand and disruptions. There’s no doubt that the Panama Canal expansion will increase freight volume while accelerating transit time, but the direct effect on U.S. ports remains a question mark. The East and Gulf Coast are predicted to become a more dominant presence when it comes to domestic imports and exports, but achieving that rise in position will require more than just ports being revamped.
PHOTOGRAPH: ISTOCKPHOTO / OGPHOTO
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“The East and Gulf ports have been working on getting deeper and bigger, like Miami,” Bazan said. “Those changes are necessary to get the new mega vessels, but at the same time, they need to be fully integrated into the railroad network. The incremental cargo cannot be put on the already congested highways. The main purpose of widening the canal is to get bigger vessels, for bigger ports, and then you need a wider and more efficient pipeline on the ground, that is rail.” West Coast ports in the U.S. already have naturally deep harbors that make them particularly attractive to Asia, but carrier capacity concerns and rising trucking costs mean rail accessibility is more important than ever. “The real challenge is getting the West Coast ports more attractive for the mega-trade with Asia,” Bazan said. “Otherwise cargo won’t stop there, and maybe Mexican or Central American ports would take that opportunity.” As the Panama Canal expansion nears its final stretch, competition is heating up throughout the industry. Up until this point, the ports of Los Angeles and Long Beach have accounted for 40 percent of all container cargo traffic in the U.S., but that could all change in the next few years. Shippers are investigating alternate
sourcing and routing options, and West Coast ports’ ocean carrier rates could see substantial changes if East and Gulf Coast ports start attracting more business. It’s a new frontier for produce shippers — one that requires a forward-thinking strategy to stay competitive in an already fierce market. “America needs to be more competitive by reducing port costs and inland costs,” Bazan said. Sending a reefer container to China versus the U.S. is just a couple of thousand dollars more — the same cost as moving a load from Miami to North Carolina.” According to Bazan, “We need to be more efficient; otherwise, we are going to have a hard time competing with the high prices that the Asian countries are willing to pay for fresh food.” For now, the future is bright for the U.S. The Panama Canal Authority is considering building a fourth set of locks, which would take another 15 years and increase freight volume and transit. Supply and distribution lines are expected to grow, as processes become simpler and more streamlined. Taken together, these changes and the Panama Canal expansion project will offer significant growth opportunities for the U.S. produce industry.
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THE “ISSUES” ISSUE
PRODUCE GROWERS NEED TO TELL THEIR STORY
by Tom Coombe
f you’re selling produce these days, be prepared to tell its story. A study in 2013 by the U.S. Farmers and Ranchers Alliance found that more than half of consumers say information about how their food is grown and raised is extremely important to them. The same study found that younger shoppers — ages 21 to 29 — were more likely to purchase one item of food over another depending on which includes more information about its origin. “It’s important for consumers to know what’s in their food,” Shelley Balanko, Ph.D., Senior Vice President, Business Development at The Hartman Group, told Fresh Summit attendees last year. “Who made it? How is it made? And what is the story behind it? All of these are critical pieces to consider in transparency. It’s not just a story of ingredients.”
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Balanko argues consumers want back “the good guys,” which means supporting growers who are transparent about how their food gets to stores. According to a 2014 Nielsen Global Survey on corporate social responsibility, 55 percent of global online consumers across 60 countries reported that they would pay more for products provided by companies committed to positive social and environmental impact. At the same time, a lot of consumers — 69 percent of them — don’t feel companies are transparent enough about how food is produced, according to a 2014 survey by the Sullivan Higdon and Sink advertising agency. Consumers wanting to know where their food comes from is nothing new for Roger Pepperl of Stemilt Growers, a family-
Staff members at Stemilt Growers in Washington pick apples from the company’s orchard. The family-owned firm prides itself on telling the story of its produce.
owned fruit growing company in Wenatchee, Washington. “It’s been around a lot longer than we think,” he said. “When the media defines what we view as a trend, we think it didn’t exist before. I went to college in the ’70s; we were all about that in the ’70s.” Still, he’s noticed an increase in consumers wanting to know where their produce comes from. “The past five years has been fairly overwhelming as far as the tide going that way,” Pepperl said. The answer to “why” is the same answer to every big change in our world: It’s because of the Internet. Millennials, the age group that includes 21- to 29-year-olds, have access to an incredible amount of information. They’re reading it, producing it, and sharing it. Companies need to be a part of that mix, Pepperl said. “Our website is all about our product being in your hand,” he said. “I think that’s 101. I think you need to have a very strong website.” Pepperl said the key is to just have information at the ready for consumers. “On our website, we talk about fruit in our lives; we talk about the farming aspect. We have a blog author who shares recipes,” he said. There are also Facebook and Pinterest accounts aimed at sharing general, useful information about Stemilt’s produce: how
Granny Smith apples got their name, facts about pears, a recipe for apple cookies “We’re not trying to sell on these platforms; we’re trying to inform,” Pepperl said.This philosophy predates the Internet, going back to Stemilt founder Tom Mathison selling fruit at local farmers markets, said Pepperl. “He wouldn’t try to sell you until he told you a story,” he said. “He’d tell you about his son working on his farm, or where he fell in love with a piece of fruit. It was almost like he was psychic about what was going to happen.” The night before the interview, Pepperl had gone with clients to a steakhouse. At the restaurant, the staff told the table everything about the steaks they were about to eat. Hearing that, he said, made him hungrier. “The food sounds a lot better,” Pepperl said, “when you know where it came from.” To gain a more in-depth understanding about the consumer’s expectations regarding corporate transparency and the level to which they can discern the corporate practices, policies and intentions that share their choice, read the Transparency 2015 report from The Hartman Group on pma.com.
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THE “ISSUES” ISSUE
FINDING GREAT TALENT TAKES TIME, STRATEGY by Jenna Rittenhouse
n the global produce and floral industry, it’s not only very important for companies to acquire great talent but also to find ways to hold onto it. PMA Foundation for Industry Talent works to “attract, develop and retain talent,” according to its mission statement, providing opportunities for companies and for all levels of professionals. But industry leaders say that is one of their biggest challenges. According to a recent study by the ADP Research Institute, two-thirds of respondents classified “talent acquisition and tracking as the workforce management strategy with the greatest impact on their organization’s business objectives.”
THE FIRST STEPS For students to apply for positions in the produce and floral industry, they first have to know what kinds of opportunities exist. Monika Basson, marketing officer at the University of Stel-
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lenbosch, says factors like poor preparation at the lower school levels, the industry’s lack of involvement, and poor media portrayal of the industry in South Africa all contribute to students’ lack of knowledge. To counteract these problems, she said the university, along with PMA Foundation in South Africa, organizes the Agri-Food Career Fair, a career exhibition to give companies a place to dole out information firsthand. They also work on educating teachers about the possibilities of an agricultural career for students, which effectively dubs them ambassadors on the industry’s behalf. “Once a student gets first-hand experience of the industry, it is relatively easy to sway them towards this field of study,” she says. Basson adds that companies need to also focus on keeping great talent by showing “a genuine interest in their workers” and actively procuring opportunities for their development and growth, not necessarily just when there’s an opening to fill.
STARTING FROM THE BOTTOM
A MATTER OF PASSION
Richard Dachman, vice president of Produce at Sysco in the U.S., says it’s “very difficult” to find and keep talent for his company. “We want to find someone that has experience, industry knowledge, and is tech savvy and affordable,” Dachman says. “We also find that if someone has too much experience it is difficult to ‘un-train’ them on old habits and train them the Sysco way.” There’s a “sweet spot,” he says, in all those categories, but finding it is the dilemma. To ensure they find the right talent, Sysco has instituted a student training program that takes students right out of school or with a few years’ experience and pairs them with a top operating company manager. The students act as understudies to their mentors for a year, and then they are moved into a slot where they could eventually move into a management role. They currently take on three students per year. Many of these students have come from PMA Foundation Career Pathways programs.
Integrity, SA has its own approach to finding team members, says CEO Gabriel Fonzo. “Ninety percent of what we look [for] today, is passion,” Fonzo says. “We have found out that knowledge is ‘teachable’ to young talent. We have been able to explain different tasks, even helping develop creativity, but we never were able to develop passion [in] a kid that doesn’t have it.” Fonzo added that a big part of their culture is making staff feel part of the team, “a family inside our company,” and working on cultivating good values. The company pushes employees to spend more time with their own families and to care about more than just money. Tommie van Zyl, CEO of ZZ2 in South Africa, said challenge and reward is most effective for retaining good employees. “When every member of the company participates in a winning formula, the resultant momentum is sufficient to endure when morale is challenged by unforeseen events,” says van Zyl. “We also see a trend where the empowerment of an individual is binding the very fabric of the ‘sense of community’ of within the company.”
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THE “ISSUES” ISSUE
WHY SHOULD JUNK FOOD HAVE ALL THE FUN? by Todd Putman, Chief Commercial Officer, Bolthouse Farms
an you feel it? The needle moving. Momentum shifting. It’s here. It’s happening. And it’s awesome. The fruit and vegetable marketing machine has arrived, and life in the produce world just got really interesting. We, as an industry, have finally tapped into the magic that has made junk food and soda the kings of center store. What wins the hearts of kids every day? One word: MARKETING. It’s marketing that’s emotive, fun, relevant, sometimes edgy and undeniably attractive to kids and teens — the very audience that we, the sellers of carrots, apples, zucchini, broccoli, kiwi and kale, have, until now, failed to engage. But no more. With
the introduction of two new platforms — Produce Marketing Association’s eat brighter!™ initiative, featuring Sesame Street’s characters, and the Partnership for a Healthier America’s FNV brand — the produce industry is poised to go toe-to-toe with brands peddling foods and beverages that simply can’t hold a candle to the benefits of fresh fruits n’ veggies! And with that, produce will finally become woven into the consumer conversation. Welcome to pop culture, cauliflower. Now, I’m clearly not suggesting that we turn the produce aisle into just another consumer packaged goods theme park; what I am suggesting is that using smart, targeted and inno-
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NFL star Cam Newton for FNV campaign
vative marketing techniques to deeply engage our audiences will result in increased consumption of the good stuff. How can that be a bad thing? It’s not. It’s good for business and good for the health of the nation. At Bolthouse Farms, we’ve been asking the question for years: Why should junk food have all the fun? It shouldn’t, and by ripping a page out of their marketing playbook, we produced a bold and irreverent ad campaign — featuring imagery and a brand voice that could’ve promoted fiery nacho cheesy corn chips — to sell our fresh baby carrots. We implored two test markets, with television commercials, mobile games and an interactive web and social media presence, to “Eat ‘Em Like Junk Food.” And guess what? Consumers did eat ‘em like junk food, to the tune of double-digit growth in fresh carrot sales in those markets. eat brighter!™ and FNV present similar opportunities industry wide. The drill is pretty straightforward — make spinach, grapes
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and asparagus relevant to our targeted demographics beyond the tired and — sorry, folks — boring “good for you” mantra that, historically, has been the foundation of produce marketing. These two platforms get us there by transforming the cultural context of healthy foods. Fact: Sesame Street is the most co-watched television program in the world. No doubt, leveraging this asset is HUGE for us, and now that Elmo and Abby Cadabby are encouraging 2- to 6-year-olds (and their parents) to eat brighter!™, the produce drawer becomes a fun and much-anticipated place to get a snack. Toddlers and young kids will want to eat bananas because Cookie Monster loves them too (the sticker on the peel proves it)! Ah, the wonder of engaging families with fun, healthy marketing messages. Changing the eating habits of teens is a more difficult task. FNV gets that motor running in a creative way. Each year, “big food” spends billions on truly creative marketing targeted directly at 12- to 18-year-olds, and the return on investment is undeniable. Fast food, junk food and sugary soft drinks have become deeply rooted in their collective psyche. Let’s face it, teenagers respond to Kate Upton provocatively eating a double cheeseburger. Now we have the likes of Jessica Alba, Colin Kaepernick, Nick Jonas and the other celebrities, athletes and beautiful people on our team. #teamFNV will connect this youthful demographic to avocados, cherries, green beans and melons. Over the long-term, we’re sure to see a swing in how teens perceive eating fruits and vegetables, all because of marketing — with a heavy dose of social media — that’s as innovative as the other guys’. At long last, with #teamFNV we’re joining the fight for our kids’ attention. But wait, don’t eat brighter!™ and FNV compete with one another? That’s the question frequently being posed to PMA, and the answer is a resounding NO. The fundamental target audiences of the two platforms are vastly different. By definition, the marketing mix required to reach 12- to 18-year-olds (read: personality-driven social interaction and out-of-home experiences) is nothing like the methods geared to little ones. We have at our disposal two incredible branded assets that the industry should line up to support. So, what’s the call to action? First, we’ve got to understand that eat brighter!™ and FNV aren’t designed to compete with
other produce industry marketing campaigns. The goal here is not to do battle with one another. These campaigns are not asking people to buy kale over broccoli or, dare I say, carrots over celery. They are just asking people to pick fruits and veggies over less healthy food. That’s why it’s time to get those furry characters from Sesame Street working for all of us (royalty-free) in media placements, with in-store signage and on packaging to influence families to eat brighter!™ (visit pma.com/eatbrighter to learn how). Big Bird hawking peaches — perfect! As for FNV, while PMA works with the PHA to test the platform in Fresno, California, and Hampton Roads, Virginia, we need to rev up our social media engines to drive awareness. The FNV brand is so cool. Check it out at teamfnv.com.
AUTHOR BIO Todd Putman is the Chief Commercial Officer of Bolthouse Farms, a wholly owned subsidiary of Campbell Soup Company and the premiere grower/producer of fresh carrots in the U.S. and the #1 super-premium juice brand in the country. Prior to joining Bolthouse, Todd spent over three decades in general management, marketing and innovation roles with powerhouse brands like Procter and Gamble, Walt Disney and The Coca-Cola Company.
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THE “ISSUES” ISSUE
LESSONS LEARNED IN THE AFTERMATH OF THE WEST COAST PORT STRIKE TOP PHOTOGRAPH: ISTOCKPHOTO / NIELUBIEKLONU
by Richard Owen, PMA Vice President of Global Business Development
he Pacific Maritime Association and the International Longshore and Warehouse Union reached a five-year agreement on Feb. 20. After more than nine months of negotiations, delays and congestion, damage from the slowdown mounted not only on the docks of the 29 West Coast ports covered by the contract. Fresh produce exporters — particularly exporters of apples, citrus and potatoes — have estimated losses in the millions of dollars. No doubt, members of the fresh produce supply chain have learned a great deal from the ordeal, and now is the time to discuss and find workable solutions for managing future risk. To this end, PMA has reached out to members to share their stories. Here, John Anderson, chairman, president and CEO of The Oppenheimer Group, and Robert Kershaw, president of Domex Super-
fresh Growers discuss their experience and lessons learned. Explain your company’s experience during the strike. John Anderson: As a company that imports and exports fresh produce, the port slowdowns affected both aspects of our business at a critical time of year. In the fall and winter, we export Washington-grown Pacific Rose, JAZZ™ and Envy™ apples to Asia, where all three varieties experience high demand and deliver excellent returns for growers. Slowdowns at Seattle/ Tacoma forced us to become quite strategic about our ship-
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ping, while also finding more domestic homes for this fruit. To make things even tougher, this has been an overall recordcrop year for Washington apples, so growers throughout the state have faced the same issue, trying to export while cargo was trickling out of the port very slowly, while also seeking opportunities closer to home. If there was a silver lining in this, it gave us the opportunity to ship more Envy apples to our customers in the U.S. and Canada. It is a new apple that has huge retail interest and remarkable consumer uptake. We were able to increase our customer base and create more promotions for Envy, building awareness and market share for this up-and-coming apple. On the import side of the coin, we became extremely strategic, working with growers and shipping lines to keep the fruit moving into the supply chain as efficiently and cost-effectively as we could. We had containers of mandarin oranges from Japan, destined for Canada, held up on vessels for weeks longer than normal. Unfortunately, this resulted in serious quality issues and decay, and caused a large amount of claims. Typically, we ship our South American winter fruit to both the East and West Coasts. As the Chilean season got underway late last year, the ports on the west continued to be jammed, so we worked with our growers to ship higher volumes east. Of course, ground transportation was required to bring this fruit to western U.S. customers, adding costs to the supply chain. We also found some relief for our mango business at the Port of Hueneme, and moved pineapples and mangoes through the Port of San Diego. These are not container-specific ports so the work disruption there was less pronounced. The Port of Houston also proved to be a good option. We have an office in Houston, accessible cold storage and relationships at the port. By bringing fruit through Houston — we used it mostly for pineapple — we could avoid some of the delays out west and keep the fruit in the pipeline. We also started to see patterns; certain West Coast terminals were more congested and slower than others. So we encouraged our growers to use shipping lines that accessed the more efficient terminals, hoping that would help their fruit enter the market more quickly. Robert Kershaw: Domex Superfresh Growers is the largest apple shipper in the U.S. Domex and the apple industry in Washing-
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ton export about 35 to 40 percent of our product. While much of that product is exported to Canada and Mexico, the West Coast ports are about 20 percent of the shipments. For the industry, this is about 600,000 boxes or 600 containers per week from West Coast ports; for Domex it’s about 90,000 boxes or 90 containers per week. The strike crippled our shipments during the most critical time period of our season, which is October, November and December. You can’t make up for lost sales — it’s not like you can ask people around the world in January or February to start eating more apples because they didn’t get them in November or December. It’s my personal opinion that estimated losses for the industry are at a low range of $100 million and a high of $300 million. What lessons did you learn about the effect of supply-chain disruptions on your business and/or the industry as a whole? John Anderson: I don’t think anyone could have anticipated how long the work slowdown would last. We kept hearing that settlement was imminent, which made it difficult to know how much to modify our shipping plans. This was a painful but important reminder to focus on our partnerships throughout the supply chain. Because we have good relationships with numerous port facilities, we had some flexibility. It showed us the huge impact that ports and labor can have on our business. It encouraged Oppy to continue building relationships with all of our service providers — not just ports, but coolstores, suppliers, transportation companies and more — assuring we have a number of options available to us should circumstances outside of our control occur. Robert Kershaw: We learned that the United States is going to be left behind in its competitiveness if we don’t address the real issue with the West Coast ports. The real issue is that international ports can load and unload around 80 containers per hour because they are automated with features such as sophisticated computer and robotic systems to unload and load containers faster and more efficiently; the West Coast ports aren’t as automated and can only unload about 20 containers per hour
as a result. This inefficiency is only hurting our economy. Also, no matter how good our international business is, we are crippled without a good logistical system to get our products to the marketplace. We currently export to 70 countries with more opening up. We need the West Coast ports to survive. How has the experience informed future business strategies for managing risk of supply-chain disruptions? John Anderson: In some ways, it validated our existing strategy of diversification. We were more fortunate than some in that we market a wide variety of items grown in over two dozen countries, so this huge transportation disruption did not hit us as hard as it could have. But again it comes back to relationships and planning. As we approach each season, it is important to consider the “what ifs” — the worst case scenarios we should be prepared for. It underlined the importance of an agreed upon back-up plan created in collaboration with our grower base, assuring that we can work
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together to navigate rough waters such as these. As we look to five years down the road when the contract between the Pacific Maritime Association and the International Longshore and Warehouse Union is due for renegotiation, we will know to anticipate possible lengthy disruptions, do what we can to support industry groups working on our behalf and have contingency plans at the ready. Robert Kershaw: Exports are going to continue to increase for West Coast growers because the world’s growth markets, such as China and India, will continue to increase demand. This increase will put even more pressure on U.S. port systems. If our ports can’t keep up, then our inability will cap the demand that we can fulfill and it will be a lost opportunity cost. Other business strategies would be to find solutions with other ports such as Texas, Florida and East Coast. Although having said that, one of our strategic advantages is our proximity to the West Coast and the ocean logistics so the other solutions are not in our best interest.
THE “ISSUES” ISSUE
U.S. IMMIGRATION REFORM FACES UNCERTAIN FUTURE by Hunt Shipman, PMA representative in Washington, D.C., Cornerstone Government Affairs
.S. immigration reform affects the entire global supply chain. PMA works to educate members about this issue and potential solutions and how they may affect the produce industry. At present, the path forward on immigration reform remains unclear, largely a consequence of the upcoming 2016 U.S. presidential elections and the issue’s complexity. Immigration reform in the United States requires congressional action. Though various administrative agencies can act on discrete issues within their authority, there is no individual or collective agency action that can fix this broken system. Only Congress can. Wrapped up in this overarching issue are sub-issues such as border protection, agricultural labor, hospitality industry labor, and children of immigrants. The U.S. House Judiciary Committee’s approach of passing individual bills addressing specific issues is a strategy that has been used in other committees to address complex, controversial topics such as environmental regulatory reforms. Piecemeal reform also serves the political strategy of garnering votes that would otherwise be lost on a widespread, comprehensive reform package. There are several issues surrounding immigration reform, however, that make this approach unlikely to succeed in the U.S. Senate — particularly now when the 2016 elections are already influencing what issues the Senate takes up and when. The closer we get to November 2016, the less likely members will be willing to take difficult votes on anything. Add to the mix that there are several Republican presidential contenders in the Senate who have taken different stances on immigration reform, and one has a recipe for inaction.
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Recognizing that immigration reform is a critical issue for members, PMA has joined with others in the Agricultural Coalition on Immigration Reform and the Agriculture Workforce Coalition to seek ag-specific reforms and keep the issue in front of Congress, despite the hurdles. Here we outline notable activity on immigration that has taken place since the beginning of 2015 and the swearing in of the 114th Congress.
EXECUTIVE ACTION Earlier this year, Congress attempted to use the funding bill for the Department of Homeland Security (DHS) to overturn President Obama’s executive actions taken in November 2014 to expand immigrant employment authorization and the deferred action for childhood arrivals, as well as to make changes to removal procedures. Had the congressional effort been successful, it may have provided the “re-set” of this issue to allow Congress to move some type of legislation — either issue-specific bills or a comprehensive bill — during 2015. There were insufficient votes in the Senate, however, to overcome a Democratic filibuster of the bill passed by the House of Representatives. In the end, funding for DHS through September 2015 was passed without provisions affecting the executive order. In February, a U.S. District Court judge issued a ruling stopping the president’s order from taking effect. The Justice Department has appealed this decision; it is likely this matter will make its way to the U.S. Supreme Court. Meanwhile, the House Judiciary Committee has approved legislation defunding President Obama’s executive actions on immigration and granting states and localities the authority to enforce federal immigration laws.
LEGAL WORKFORCE ACT
SHIFTS IN SENATE MAKEUP
On March 3, the House Judiciary Committee approved by a vote of 20-13 the Legal Workforce Act (H.R. 1147). This bill would mandate the use of the E-Verify system by employers to confirm the legal status of prospective employees. Advocates for agricultural organizations have been told there is no opportunity to move any legislation that addresses agriculture’s workforce situation until after border security and enforcement legislation passes. Agricultural employers concur with the need to strengthen worker documentation; however, taking these steps before addressing the current workforce and creating a new guest-worker program to address future needs will leave employers in an untenable position. The American Farm Bureau estimates food production would fall by $30 billion to $60 billion in the United States if the government implements a strict enforcement-only employment verification system without changing some of the other pieces of this complex puzzle. The Farm Bureau also estimates that consumer prices could rise 5 to 6 percent under this scenario.
Historically, comprehensive immigration reform is more likely with Democrat support. When the Senate passed its comprehensive immigration reform bill in June 2013, the final vote was 6832. The makeup of the Senate was 52 Democrats, 46 Republicans and two Independents (who caucus with the Democrats). Since then, nine Democrats who supported the bill have retired or were defeated in the 2014 election and have been replaced by Republicans; only two Republicans who opposed the bill have left the Senate and each was replaced by another Republican. In 2016, Republicans will be defending 24 of their 34 seats up for reelection. This is similar to the 2014 election when Democrats were defending 21 seats against the Republicans’ 15 seats. Although control of the House is not as likely to shift, party leaders on both sides will be watching to preserve their majority and/or benefit their presidential candidate. Each party will use the upcoming months to gauge public opinion and determine what, if any, action on immigration is likely to benefit them at the polls.
A STATUS REPORT:
MAKES POSITIVE IMPACT ON SALES, EXPERIENCE by Cathy Burns, PMA President It’s been nearly a year and a half since we first embarked on the eat brighter!™ movement with our friends from Sesame Street to help encourage kids and their families to eat more fresh fruits and vegetables. Since then, more than 50 fresh produce companies have joined us in this journey, and I’d like to share some examples of the recent successes. SALES INCREASING FOR eat brighter!™ PRODUCTS
Self-reported feedback included:
Last quarter, the PMA Research and Development team surveyed suppliers, retailers, and promotional organizations who are approved and licensed to use eat brighter!™ assets in their goto-market strategies. The intent of the survey was to determine the sales impact of using the eat brighter!™ initiative and to gain feedback on the overall experience with the movement to-date. It’s with a great deal of excitement that I can report that on average, growers and retailers are reporting an increase in year-overyear sales.
“The ability to put a character and figure so well-known among shoppers for a minimal fee has allowed us to increase our sales volume and merchandising capabilities with several retail outlets. Customers participating in the program are anxious to continue building their collection of ‘eat brighter!’ items and other customers are anxious to take ‘eat brighter!’ labeled product and monitor its ability to increase engagement and sales.”
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“We are thrilled to support the program and believe it is engaging children in the produce aisles of grocery stores.”
As program offerings and sales data matures, we will continue to monitor and survey participants — looking for ways to improve and capitalize on successful elements of this movement.
EXPANDING TO MEXICO Largely due to the success we’ve seen in the United States and Canada, I’m pleased to report that the eat brighter!™ movement has made its move to Mexico. As in the United States, fresh produce consumption remains far below recommendations, and childhood obesity in Mexico has tripled in the past 10 years. Suppliers and retailers who market fresh produce in Mexico now have another tool at their fingertips to help build a better future for the next generation. For more information visit pma.com/eatbrighter.
MILLENNIALS STILL LOVE SESAME STREET Several months ago, we told you about a celebrity-packed video streaming through the airwaves that promotes eat brighter!™ and the fresh produce industry’s commitment to a healthier generation of children. It was hard to predict just how well a marketing tool, like this video, would do — even when supported by First Lady Michelle Obama, Big Bird, and comedian Billy Eichner from Billy on the Street. With careful planning and the help of many, we’re happy to report that the video has earned more than 550,000 views. We’ve learned a great deal through this video, including how consumers react to the eat brighter!™ movement , and that Sesame Street is not just for 2- to 5-year-olds. (Like you heard from Oppy’s James Milne in the last issue of fresh.) CBS News said “it may stand as the dizziest dozen minutes in first lady Michelle Obama’s reign. But she appeared to be having a ball while she put the word out: Kids and parents should eat healthier by adding fruits and vegetables to their daily menu.” Time Magazine called the video “an impressively odd video that is incredibly fun to watch.”
MORE WAYS TO HELP YOU ROLL OUT eat brighter!™ We know that making the decision to incorporate new tools into your marketing tactics is not a simple one, even with data showing a positive impact on sales. That’s why we’ve made an
effort to continuously provide you with more — more information, more markets, more success stories. The new eat brighter!™ website, pma.com/eatbrighter, features all of that . We even have an updated marketing toolkit with more assets ready to be used — when you’re ready to make the call. If you’ve already joined the movement, thank you. I hope you can continue to grow your sales — and participation — with us in the future. If you haven’t yet, I invite you to reach out to me or anyone here at PMA to discuss how eat brighter!™ can help you grow.
LEADERSHIP OPPORTUNITY In May, PMA launched Eating by Example, an intra-industry challenge to motivate companies and organizations to serve more fruits and vegetables at their events. The industry has embraced programs to boost consumption of fresh produce, and this is an opportunity to walk the talk. Eating by Example is a non-binding, fun pledge to ensure what we serve at our meetings — from company staff meetings to Fresh Summit — has plenty of our industry’s products. It’s not about taking foods away, it’s about adding more produce. This program is the brainchild of some motivated graduates of the Emerging Leaders Program from the PMA Foundation for Industry Talent. So watch your email and your social media feeds for more information. When you get it, sign up and keep the conversation going with our hashtag: #EatingbyExample.
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Welcome Produce Marketing Association is pleased to welcome the following corporate members who have recently joined our organization.*
NEW PMA MEMBERS AUSTRALIA Natures Haven Walnuts Australia BRAZIL Brasnica Fischer SA Agroindustria Sekita Agronegocios CANADA Great Lakes Greenhouses Inc. EGYPT Ghabbour Farms ITALY T.R. Turoni srl MEXICO El Surtidor del Herrero, S.A. de C.V. Frialsa Frigorificos SA de CV Fruticola Velo, S.A. de C.V. La Mas Dorada Spr De RL De CV Ramamy Boca De Apiza SPR De RL MOROCCO El Joumani Group NEW ZEALAND BioLumic PERU AGAP Agricola Hoja Redonda SA Exportadora Fruticola Del Sur SA
SOUTH AFRICA FNB- First National Bank HL Hall & Sons, Pty Ltd. UNITED KINGDOM Marco LTD UNITED STATES Airstream Innovations, Inc. Appeeling Fruit, Inc. Bella Verdi Farms Blackmore Company Inc. Centennial Organics LLC Classic Harvest ClearBags Commodity Forwarders Crunchies Natural Food Company DNATREK Farm Star Living Farmers Fresh Fruit Company LP FarmSolutions Flying Food Group, Inc. Forager Project Fresh Appeal USA, Inc. Freshdirect GPS In A Box Kitchen 22 Labelprint America Inc. MACC Produce, LLC mOasis Inc. OnFarm Systems P. F. Chang’s China Bistro Paino Organics LLC. Penton Food & Restaurant Group Premier Produce
Princess Cruises Proteosense LLC RW Griffin LLC Shelby Publishing Co., Inc. Skyward SOPEXA USA Super Floral, Florists’ Review Sutter’s Mill Specialties Toluca Foods, Inc. Vestaron Wallace Jordan Ratliff & Brandt LLC Wiers Farm, Inc. Woodstock Farms Mfg. Zippy’s
NEW PMA FLORAL MEMBERS CANADA One Floral Group Westbrook Floral, Ltd. UNITED STATES Balloons Everywhere DeLeon’s Bromeliads Dependable Packaging Solutions Ethical Sourcing Network Fiore Farms LLC Fresh Tulips USA John Henry/MPS Pioneer Balloon Company Valley Springs LLC West Coast Trucking Corp Worcester Resources, Inc.
*New PMA Members (February 12, 2015 to April 27, 2015)
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Thank you to our valued Gold Circle Campaign Supporters PMA’s Gold Circle mission is to protect the public health by providing fresh fruits and vegetables that give consumers a safe and healthy eating experience — every bite, every time. These efforts are made possible by the generous contribution of $1,000 from each of the following industry leaders.* To learn more about becoming a Gold Circle Campaign Supporter, please visit pma.com/GoldCircle. *Gold Circle members as of April 27, 2015
AUSTRALIA Gourmet Garden Herbs & Spices Louis Melbourne Moraitis Group Premier Fruits Group, Pty., Ltd. Sydney Markets, Ltd. BRAZIL Citricola Lucato, Ltda. Itaueira Agropecuaria, S/A CANADA A & W Food Services of Canada, Inc. Canadian Produce Marketing Assn. Double Diamond Farms Fresh Direct Produce Ltd. Fresh Taste Produce, Ltd. Highline Mushrooms Lakeside Produce Mastronardi Produce Mucci International Marketing, Inc Nature Fresh Farms North American Produce Buyers Ontario Greenhouse Vegetable Growers Peak of the Market Provincial Fruit Co., Ltd. Pure Hothouse Foods, Inc. Red Sun Farms Sobeys, Inc. Sun Rich Fresh Foods, Inc. Sunny Sky Produce Ltd. Westmoreland Windset Farms ITALY Unitec S.P.A. MEXICO Agricola Amigo S PR Agromod, S.A. de C.V. Coliman Grupo S.A. de C.V. Enviro Tech LA, S.A. de C.V. TRADECORP Mexico SOUTH AFRICA Freshworld (Pty), Ltd. UNITED STATES 4Earth Farms A & J Produce Corp. A.J. Trucco, Inc. Able Freight Services, Inc. Ace Customs Broker, Inc. Ag-Fume Services, Inc. Akin & Porter Produce, Inc.
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Alpine Fresh, Inc. Alsum Farms & Produce Inc. Andrews Brothers, Inc. Apache Produce Imports, LLC Apio, Inc. Archibald Fresh Associated Wholesale Grocers Awe Sum Organics, Inc. Babe’ Farms, Inc. Bailey Farms, Inc. Bard Valley Medjool Date Growers Bay Valley Foods Bayer CropScience Beachside Produce, LLC Ben B. Schwartz & Sons, Inc. Ben E. Keith Foods Ben Litowich & Son, Inc. BFC Associates Big Red Tomato Packers, LLC Bi-Lo/Winn-Dixie Birko Blue Book Services, Inc. Blue Creek Produce, LLC. Bonipak Produce Co. Booth Ranches, LLC Borton & Sons, Inc. Boskovich Farms, Inc. Bozzuto’s, Inc. Braga Fresh Family Farms Brinker International Bronco Packaging Corp. Burris Logistics C & D Fruit & Vegetable Co. CA Leafy Greens Marketing Agreement Cady Bag Company Caito Foods Services, Inc. Calavo Growers, Inc. California Avocado Commission California Pear Advisory Board California Sun Dry Foods Capespan North America Castellini Company CDS Distributing, Inc. Charles E. Gilb Company Cheesecake Factory Incorporated, The Chelan Fresh Marketing Chiquita Brands N.A. Church Brothers, LLC Ciruli Brothers Classic Fruit Company CMI Columbia Marketing Intl
Coast Citrus Distributors Coast Produce Company Coast To Coast Produce, LLC Coastal Fresh Farms, Inc. Coastline Family Farms a dba of Sunridge Farms, Inc. Columbine Vineyards Concord Foods, Inc. Coosemans LA Shipping Coosemans Worldwide, Inc. Corona College Heights Country Fresh Mushroom Co. Critcher Brothers Produce, Inc. Crown Jewels Produce Company Crunch Pak Darden Restaurants D’Arrigo Bros. Co. of New York D’Arrigo Bros. Co., of California Dave’s Specialty Imports, Inc. Dayka & Hackett, LLC Del Monte Fresh Produce NA, Inc. DiMare Fresh, Inc. Diversified Restaurant Systems Dixie Produce, Inc. DNE World Fruit LLC Dole Food Company, Inc. Domex Superfresh Growers Driscoll’s Duda Farm Fresh Foods, Inc. Dulcinea Farms-Pacific Trellis Fruit Duncan Family Farms, LLC Earthbound Farm Easterday Farms Produce Co. Eastern Produce Council Empacadora G.A.B., Inc. Family Tree Farms Famous Software, LLC Field Fresh Foods, Inc. Fillmore Piru Citrus FirstFruits Marketing of Washington Fisher Ranch Corporation Flagler Global Logistics Flavor Pic Tomato Co. Florida Specialties LLC Florida Strawberry Growers Association Four Star Sales, Inc. Fowler Bros., Inc. Fox Packaging Fresh Gourmet Company Fresh Solutions Network, LLC Fresherized Foods
FreshPoint, Inc. Freshway Foods Freska Produce International, LLC Frieda’s, Inc. G & R Farms G.O. Fresh GFF, Inc. Giant Eagle, Inc. Giorgio Fresh Co. Giro Pack, Inc. Giumarra Companies, The Gold Coast Packing, Inc. GreenGate Fresh, LLLP Greenhouse Produce Company Grocery Outlet, Inc. Growers Marketing, LLC. Grower’s Pride, LLC Guy J. Varley, Inc. H. Brooks & Company Ham Farms, Inc. Hass Avocado Board Heartland Produce Company Hollandia Produce, L.P. Horton Fruit Company, The Hugh H. Branch, Inc. Hyde & Hyde, Inc. IFCO SYSTEMS Index Fresh, Inc. Indianapolis Fruit Company International Paper J & J Distributing Co. J & K Fresh, LLC J&J Family of Farms J. C. Watson Company J. Marchini Farms J. Margiotta Company, LLC. JAB Produce Jac. Vandenberg, Inc. JOH John Vena, Inc. JR Simplot Company JV Smith Companies Keystone Fruit Marketing, Inc. Kingdom Fresh Produce Kroger Co., The Kurt Zuhlke & Assoc., Inc. KVAT Food Stores, Inc. Kwik Lok Corporation L&M Leger & Son, Inc. LGS Specialty Sales, Ltd. Liberty Fruit Co., Inc. Limoneira Company Litehouse, Inc. Locus Traxx Los Angeles Salad Company Lowes Food Stores, Inc. Maddan & Company, Inc. Manfredi Companies Marc Glassman, Inc. Markon Cooperative, Inc. Martori Farms
Maryland Food Center Authority Meijer, Inc. Melissa’s Miami Agro Import Military Produce Group LLC Misionero Vegetables Mission Produce, Inc. Monsanto Company Monterey Mushrooms, Inc. Murphy Tomatoes National Mango Board National Produce Consultants National Resource Management, Inc. NatureSeal, Inc. NatureSweet, LTD Naturipe Farms, LLC. Navajo Agricultural Products Industry New York Apple Sales, Inc. Nonpareil Corp. North Bay Produce, Inc. North Shore Greenhouses, Inc. Northwest Horticultural Council Ocean Mist Farms Oneonta Trading Corporation Onions Direct LLC Orange County Produce Organics Unlimited, Inc. Pacific Coast Fruit Company Pacific International Marketing Pacific Tomato Growers Panorama Produce Sales, Inc. Paramount Citrus, Inc. Paramount Farms, Inc. Pear Bureau Northwest Performance Food Group Phillips Mushroom Farms Potandon Produce, LLC Premier Citrus Packers, LLC. Premier Mushrooms LP Premier Produce Prime Time International Pro Citrus Network, Inc. Pro*Act, LLC Produce Packaging, Inc. Progressive Produce Corporation Publix Super Markets, Inc. Rainier Fruit Company Raw Foods International, LLC Red Blossom Sales, Inc. Redline Solutions, Inc. Rio Fresh, Inc. River Point Farms, LLC Robinson Fresh RockTenn Company Rocky Produce, Inc. Roland Marketing, Inc. Roundy’s Supermarkets, Inc. Rouses Supermarket, LLC S. Strock & Co., Inc. Sage Fruit Company Saladino’s Sanson Company, The
Save Mart Supermarkets Sbrocco International, Inc. Schnuck Markets, Inc. Seald Sweet International Sendik’s Food Markets Sensitech, Inc. Service First Logistics Inc. Shuman Produce, Inc. Sinclair Systems Int’l LLC Southern Specialties, Inc. Spice World, Inc. Spokane Produce, Inc. State Garden, Inc. Stemilt Growers LLC Sterilox Fresh Success Valley Produce LLC Sun Belle Inc. Sun Pacific Sun World International, LLC. SunFed Sunkist Growers, Inc. Sunlight International Sales Sun-Maid Growers of California Sunrise Produce Company Superior Sales, Inc. Sysco Corporation T. Marzetti Company Tanimura & Antle Taylor Farms, Inc. Tesco Stores, Ltd Thermal Technologies, Inc. Tippmann Construction To-Jo Mushrooms, Inc. Tom Lange Company, Inc. Total Quality Logistics, Inc. Trinity Fruit Sales UniPro Foodservice, Inc. US Foods Valley Fruit & Produce Co. Ventura Pacific Company Village Farms, LP Vision Produce Company Volm Companies, Inc. Wakefern Food Corporation Wal-Mart Stores, Inc. Wegmans Food Markets, Inc. Well-Pict, Inc. Wells Fargo Bank West Pak Avocado, Inc. Western Precooling Systems Westlake Produce Co. Westside Produce Wholesale Produce Supply Co. Wilcox Fresh WinCo Foods, Inc. Worldwide Produce Direct Xgenex LLC Yakima Fresh, LLC Yerecic Label Company Youngstown Grape Distributors, Inc. ZESPRI International, Ltd.
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Technology that Allows Produce to Grow Up
oday we must think differently about crop production due to climate change, depleted natural resources, population growth and availability of land. The Urban Produce High Density Vertical Growing System (HDVGS) has been developed as a sustainable alternative to traditional agriculture, utilizing advanced hydroponic technologies in a controlled environment. Our patented technology takes the best of hydroponics and increases the yield by stacking produce vertically, in
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a closed automated environment. Our produce rotates in the greenhouse giving all our product equal light and air distribution. This automated system delivers the proper amount of water, and nutrition exactly when needed. The process greatly increases growing efficiency and significantly reduces costs. Our mission is to build Vertical Growing Units nationwide, bringing fresh, locally grown produce back to the cities, all while creating jobs in the community and simultaneously reducing the carbon footprint.
We became PMA members due to the vast offer-
Unique Positioning Urban Produce has a unique advantage in that we are capable of growing above or below ground in natural or artificial light, in the dead of winter or the heat of summer. We produce 16 acres of produce on one-eighth of an acre footprint, maximizing space and minimizing energy consumption. We produce organic specialty herbs and leafy greens inside our High Density Vertical Growing System. Specifically we have four chef-inspired organic microgreen blends which are sold as a living product. By selling live we are able to provide a longer shelf life to the consumer in addition to
stronger, bolder flavor and more concentrated nutrition. We take freshness a step further by allowing the consumer to cut and harvest their greens exactly when needed. Social media has been a major factor in helping us educate consumers about our produce and how it is being grown. With millennials starting to take over the marketplace, it is becoming more and more crucial to have a social media presence and connect with our consumers. People want to know exactly where their food came from and how it was grown, and social media helps us to accomplish just that.
ing of resources they provide in the form of seminars, online resources, personal contact with our PMA representative and the opportunity to network with the vast array of PMA members.” —Danielle Horton Marketing Director Urban Produce
For more information, visit urbanproduce.com.
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Total Produce: Local At Heart, Global By Nature
otal Produce can trace its roots back to the establishment of a modest fresh produce wholesale business by Charles McCann in Ireland in the 1880s. From humble beginnings, the business expanded steadily, merging, acquiring and partnering similar businesses, growing to become first Ireland and then Europe’s leading fresh produce provider. In 2013, the group took its first steps into the North American marketplace, establishing a partnership with The Oppenheimer Group (Oppy) in Canada, before extending its footprint still further with investments in Eco Farms in
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California in 2014 and earlier this year, in Gambles Produce in Toronto. Today, Total Produce stands at the forefront of the global fresh produce industry. Operating out of 22 countries, the company recorded sales in excess of $3.4 billion U.S. dollars in 2014, distributing more than 300 million cartons of fresh produce across Europe, India and North America.
Navigating the international fresh produce market Total Produce’s position in the global industry represents an interesting vantage point from which
to assess the global fresh produce sector as a whole. Rory Byrne, CEO of Total Produce, recognises that these are challenging times for the industry: “No company exists in a vacuum. Total Produce is subject to the same challenges and constraints as our industry peers, most notably, fuel price and currency fluctuations, economic recession in certain markets, political instability in others and stubbornly stagnant consumer consumption of fresh produce across the board.” He remains optimistic, however. Total Produce, Byrne feels, is particularly well-positioned to harness the opportunities that arise amidst these challenges: “Total Produce’s business model is founded on the conviction that there is strength to be found in bringing together the diverse resources and core competencies of independent fresh produce companies across the world,” he says. In channelling the collective resources of the international group to those who can apply them to best effect, empowered local management, Byrne contends, Total Produce adds value to the supply chain, opening markets to new partners, adding value to produce and generating synergies and efficiencies. “In an increasingly volatile marketplace, for Total Produce, prospective partners and customers alike, we believe that represents a more compelling proposition than ever, so we are looking to the future with confidence.”
consumers and that all-important personal touch to Group operations. Importantly, they can do so, secure in the knowledge that they are backed by the collective financial strength, commercial resources, shared core competencies and global reach of an international company. “We offer the best of both worlds”, says Byrne, “everything expected from the very best local supplier alongside the reassurance and resources associated with an industry leader.” The most tangible dividends for the Group, he suggests are associated with the sharing of the expertise and experience of its people internationally across its operations. Invariably, innovation follows. Total Produce has, for example, been an industry first mover in embracing digital technologies and social media and were early adopters of QR codes, NFC technologies and, most recently, iBeacons, culminating in the introduction of Total Produce Smartstands. (See: http://bit.ly/SmartStands ) “Ultimately, we recognise we have to earn the right to grow,” concludes Byrne, and “our intent always is to build not just a bigger company, but a better company.”
In Total Produce,
we regard PMA as an invaluable partner in facilitating our contribution to the broader industry conversation on driving our industry forward across North America.” —Rory Byrne Chief Executive Total Produce
Local at heart, global by nature Total Produce’s structure also serves to differentiate the Group in the marketplace. Total Produce embraces entrepreneurial freedom; across its operations it empowers local management who shape Total Produce’s service and drive Total Produce’s business on the ground. They bring local experience and expertise, relationships with local growers, an understanding of local market dynamics and For more information, visit totalproduce.com.
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Four Generations of Family Farming
he Tanimura & Antle story is one of perseverance, passion and longevity, standing out among the other family stories of the produce industry in our Salinas Valley. Our story bridges a cultural divide to realize a level of success that is only achieved after great trial. George Tanimura, the Tanimura Family patriarch, demonstrated resilience, honor and pride when he led his siblings into the forced U.S. internment camp for Japanese residents during WWII while simultaneously supporting his brothers’ service in the U.S. armed forces against Japan. Upon being released, George coordinated the re-building of the family farming business in post-war Salinas. Bud Antle, the Antle Family patriarch, was a visionary, an inventor and a savvy business man with the rare courage to reach out and work with the Tanimura Family in post-WWII Salinas. Bob Antle assumed leadership of the Antle legacy after the unexpected early passing of his father Bud, continuing the friendship and business relationship with the Tanimura Family. It was Bob Antle and George Tanimura who ultimately forged the formal business partnership of Tanimura & Antle, Inc. in 1982, a partnership with the strength to last generations, based on the trust and values demonstrated by the family patriarchs. Over the years, this partnership has grown into one of the most respected family owned and oper-
ated businesses in the modern agriculture industry. Today, the fourth generation continues the family farming tradition that fills grocery shelves and restaurant tables across North America, Europe and Asia. Tanimura & Antle has combined technology, food safety, supply chain management, premier customer service, year-round supply and industrydriven innovation to deliver only the highest quality vegetables and stand by our everlasting commitment of remaining a “Customer Focused, Quality Driven” company.
Plan your work. Then work your plan.” —Bob Antle co-founder Tanimura & Antle
For more information, visit taproduce.com.
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Produce Pro Software Celebrates 25th Anniversary
leader in produce industry software, Produce Pro Software is celebrates its 25th Anniversary this year. Since the start of the company in 1990, Produce Pro Software has become an integral part of the produce industry. In 1990 Produce Pro met with a few produce businesses looking for an all inclusive software package that could handle the nuances of a produce world. Shortly after, Caruso Inc. from Cincinnati, Ohio became Produce Pro’s first customer. “We saw a drive in the Produce Pro employees back then as we do today to make our company succeed with the best software solution possible. We have significantly grown our operation over the years into different businesses and rest assured that Produce Pro can handle anything we throw their way,” said Jim Caruso, CEO Caruso, Inc.
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With each year and each new customer the Produce Pro system grew. “Produce Pro built trust and a partnership with our customers over the years and they grew to rely on us for their software needs. Over the years Produce Pro’s software offering expanded to include online ordering, warehouse management, and mobile apps so our customers could concentrate on their business and didn’t need to shop around and integrate a 3rd party solution for their emerging needs” said Dave Donat, Produce Pro President. “We strive to be the last software our customers will ever need.’ Over the last 25 years, Produce Pro made its vision a reality and developed a very flexible yet all encompassing software solution for all produce businesses. “The functionality that is built into our software from our 25 years of experience can work for many different business models, with very little customization. We are dedicated to learning and understanding each company’s unique business and then creating the best software solution possible. When our customers’ business grows and they take on new ventures they can continue to run Produce Pro and the flexibility and functionality is built into the system already for that,” said Donat. Produce Pro has integrated many software offerings into its main ERP solution over the years. In 2000, they started exchanging data through EDI.
We strive to be the last software our customers will ever need.” —Dave Donat President Produce Pro
Produce Pro built their own e-commerce platform to allow web ordering in 2001. By 2007, Produce Pro wrote their own Warehouse Management software for scanning inventory through the warehouse. During the period from 2011 to 2014 Produce Pro released multiple mobile app solutions for customer ordering, delivery optimization with GPS and elec-
tronic signature capture, and a Food Safety app to replace the binders. In 2015, Produce Pro has over 160 companies running their software with over 5,000 users. Produce Pro has grown to employ 80 associates in 4 offices locations; Chicago, Los Angeles, Austin, and Philadelphia.
Find out more about the history of Produce Pro at producepro.com.
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Newly Branded, Dümmen Orange Strives to Create Innovative Solutions
ümmen Orange is one of the leading companies in breeding and development of cut flowers, potted plants, bedding plants and perennials. Turnover in 2014 was $180 million. The company employs more than 6,000 people worldwide. In addition to a large marketing and sales network, Dümmen Orange has a strong network of production locations. The key to the success of Dümmen Orange is a wide and deep product range supported by a global supply chain. The company embraces its social responsibility and invests in the health, safety and personal development of its employees. Dümmen Orange recently revealed the new name, logo and brand values of the company at all facilities in 16 countries. It embraces and will come in place of well-known corporate brands Lex+, Bartels, Terra Nigra, Dümmen Group, Agribio China, Agribio Colombia, Oro, PLA, as well as the production locations, are changing their identity immediately to Dümmen Orange. Other established brands like Rijnplant, Ecke, Oglevee, Red Fox, Fides, Japan Agribio and Barberet & Blanc will convert over time. The brand values clearly state what we believe in, what we stand for and what we strive for. We stand for a people- and environment-friendly approach. We build on the knowledge, skills and experience that the companies have developed in the past. This remains the trusted foundation toward the future for our customers. We strive to create in-
novative solutions — by thinking inside and outside of the box — to make it better for our customers and their customers. All teams within our company strive to advance every day. Next to this, we cherish the role our products play in people’s lives. Everything we do in the future will have to support these brand values.
For more information, visit dummenorange.com.
Since we — as a group of breeders — are the origin of a floral supply chain that is constantly evolving and being challenged, we want to be in direct contact with our chain partners to contribute to new ideas and solutions. PMA
offers the perfect platform to work together with our partners and other leading companies.” —Bas Pellenaars Product Manager Dümmen Orange
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A N N UA L PA R T N E R P R O F I L E
We value being part of PMA.
It’s a dynamic organization that delivers solutions and connections that propel our business forward.” —Dan Duda President and COO Duda Farm Fresh Foods
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Staying Ahead of Consumer Trends
n 1909, Andrew Duda left his homeland in Europe’s Austro-Hungarian Empire and traveled to the United States in pursuit of the American dream. For several years, he and his young family struggled to pay for the 40 acres he had claimed, and to bring in a successful crop. Finally, in 1926, the family’s first cash crop of celery was taken to market and A. Duda and Sons was formed. The company has grown from its beginnings as a fresh vegetable grower and shipper to a diversified land company with a variety of agriculture and real estate operations. Duda Farm Fresh Foods Dandy® brand of fresh produce includes a variety of fruits and vegetables including citrus, celery and fresh-cut celery, broccoli, cauliflower, sweet corn, lettuce/leaf and radishes.
Growing for future generations In the early 1900s, when Andrew Duda plowed his first Florida field, all he had was a pair of plow mules, a sack of celery seed, and an enduring belief in the value of hard work and a personal commitment to deliver the very best produce. Today, the Duda family’s beliefs and commitment have not wavered from those of Andrew Duda and his three sons. With 46,000 acres across 15 states owned or sustained by DUDA, our parent company, Duda Farm Fresh Foods’ commitment and responsibility to producing the freshest quality produce while reducing our environmental footprint continues to meet the stringent expectations set out by our company’s founders.
Products Duda is all about innovation and being ahead of culinary trends. Ready-to-Eat Radishes, for example, is a new line of three fresh-cut radish products that are reinventing the radish category with new cuts and compelling product benefits. Ready Radishes are washed, trimmed, and ready to eat. The extensive line also includes Radish Coins and Radish MiniSticks®. All three products entice the radish lover and the non-user who may not use radishes due to prep and unfamiliarity.
Growers play a key role in providing innovative solutions for their retail customers and ultimately the consumer based on this consumer segmentation strategy. Dan Duda, president and chief operating officer of Duda Farm Fresh Foods, said, “The next generation’s mission for our company is to offer our products in ways that directly meet the needs of consumers, particularly in the celery category. Innovation has always been our mission and now with our ongoing research, we know what traits and attributes are most important to the consumer when
it comes to the product and the way it is presented in the grocery store.” Duda’s Director of Seed Research Dr. Larry Pierce has devoted his career to developing exclusive celery seed varieties. Now with numerous celery patents, Duda continues to research ways to naturally perfect its celery variety and adapt its product offerings to fit consumer preferences. In addition to crunchy texture, minimal strings and a sweet flavor that keeps consumers coming back for more, Duda is packing celery in new and different ways to appeal to consumers.
For more information, visit dudafresh.com.
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save the date
PMA/PMA Foundation Calendar of Upcoming Events Mark your calendar for these upcoming PMA and PMA Foundation events … and watch your business grow!
JULY Fresh Connections: Floral July 9, 2015 Miami, Florida USA There’s no better way to build long-lasting relationships and keep your finger on the pulse of the floriculture industry than by attending Fresh Connections: Floral. Designed exclusively for floral buyers and suppliers, this event offers the information you need to capitalize on market opportunities, build sales and grow your network. Take away insights on consumer trends, retail trends, marketing strategies and innovative technologies. pma.com/events/freshconnections-floral
60 fresh July 2015 Edition
Foodservice Conference & Expo July 24-26, 2015 Monterey, California USA At PMA’s Foodservice Conference & Expo, you’ll cultivate connections, taste global flavors and create smart solutions – all at the only event dedicated to fresh produce in foodservice. With 1,800+ attendees and more than 160 exhibitors, this event will help you plan for change and set the groundwork for strategies that grow your business. fsc.pma.com
AUGUST Fresh Connections: Southern Africa August 12-13, 2015 Cape Town, South Africa Navigate the future of trade within South Africa, Africa and the world. This event will help you prepare for growing global demand for fresh produce and floral. Don’t miss your chance to network with prominent supply chain executives, industry experts and leaders from around the world. pma.com/events/freshconnections-southern-africa
Fresh Connections: Brazil August 20, 2015 São Paulo, Brazil Get ready to connect with innovative ideas, market insights and global contacts that will help your business flourish. Benefit from the vision, counsel and expertise of global industry leaders and local dignitaries. Get relevant information on market trends, consumer trends, retail trends, marketing strategies, innovative technologies and supply chain efficiencies. pma.com/events/freshconnections-brazil
SEPTEMBER PMA Foundation High Performance Management Conference September 14-17, 2015 Chicago, Illinois USA This one-of-a-kind, professional development program
will help companies optimize the impact of their mid-level managers who turn strategy into action plans and lead their teams. Participants will learn from a combination of expert-led educational sessions, small group exercises and simulations that focus on topics such as macro trends, food safety and technology, business acumen, team leadership and more. pmafoundation.com/highperformance-managementconference
OCTOBER Fresh Summit Oct. 23-25 Atlanta, Georgia USA With 18,000 attendees and 900 exhibitors from more than 60 countries, Fresh Summit is where contacts are formed, trends are revealed, ideas are exchanged and careers are made. The energized atmosphere draws both the attention of top buyers from the world’s largest retail chains as well as key decision makers from companies all along the supplychain. freshsummit.com
SAVE the DATE:
OCTOBER 23–25, 2015 ATLANTA, GEORGIA USA
FRESHSUMMIT.COM • #FRESHSUMMIT
P R O D U C E M A R K E T I N G A S S O C I AT I O N P.O. Box 6036 Newark, DE 19714-6036 USA Address Service Requested
Where will your berries
The "Issues" issue about facing a global supply chain