Dave Corsi - Wegmans Food - Incoming chairman's address

FRESH SUMMIT 2008 -INCOMING CHAIRMAN’S ADDRESS -
DAVE CORSI, WEGMANS FOOD & PHARMACY

Thank you, Bruce, for so ably leading our board over the past year. Your tenure as an officer can be summed up in two words: food safety. Fortunately, you are not one to shirk from a challenge, and you have indeed been a leader on this most serious topic. That’s included opening your company’s doors and fields to the media in 2006, leading by example with a very sizable contribution to the Center for Produce Safety in 2007, and this year leading a demanding strategic planning process to ensure PMA will be ready to lead this industry into the future.

You exemplify one of the core values defined in that new plan: courage.

Please give our new Chairman of the Executive Committee a round of applause for his service.

And thank you all for the trust you are placing in me as your chairman, especially in today’s challenging environment. It is exactly in such times that strong organizations like PMA become even more valued, and more necessary. I am proud and honored to take the baton from Bruce. This promises to be an exciting year, a year of change for PMA that will help us serve you even better in the future.

As Bryan and Bruce have already noted, there’s good reason why our industry is referred to as a supply chain, rather than a supply line – and that’s because we are indeed a community. Wegmans is built on the idea of community and relationships, with our people, our suppliers and our customers. In challenging times like these, those relationships become even more important, and it is more important to look out for each other. If we don’t, as Edmund Waller said, “one link dissolved, the whole creation ends.” If my favorite growers’ fields are replaced by tract houses, if my favorite suppliers’ doors are shuttered, we all lose – the grower, the suppliers, the retailer and the consumer.

So in these challenging times, we have listened, and we are acting.

Last month, PMA notified our membership that we won’t be increasing dues this year. That was a tough decision, understanding that we at PMA have even more we need to do for you now. But we made the right decision to leave that money in your pocket.

While your dues won’t increase, the value that you get from your membership will. And while Fresh Summit is undoubtedly the industry’s most influential gathering, PMA is much more than just a week in October. From one member to another, here are some ideas for making the most of your membership all year long.

First, check out all the free stuff, including our crisis management and product recall planning guides – vital in today’s food safety environment. Tap into PMA’s many subject matter experts. And use our tools to reach out to your own community, like the Scholastic Crunch the Numbers elementary school curriculum.

Next, check out our Advantage Program, which offers discounts on critical business services. Then, review our new products and services, like the PMA Advantage: Custom Training program. Fellow retailers will want to look into the new E-ssentials online training, and I Know Produce.

And finally, see what we’re doing to increase your business efficiencies, for example on traceability. Standardizing traceability will make our businesses more efficient, and help restore confidence in our food safety commitment. To find out what your role is, plan to attend this morning’s workshop on traceability.

As you search for more value in your business relationships, know that we are committed to remaining on your list of trusted service suppliers. Let me repeat that: we are 100 percent committed to serving you every day, all year long.

Recognizing that the produce industry is increasingly global, PMA will be branching out – figuratively and literally – to the produce community worldwide. Our country councils have been extremely popular, so popular that we will be taking that model to the next level.

I encourage you to consider the possibilities of PMA’s globalization efforts. We can all learn something from the world market even if your business only relates to the U.S. Consider that Wegmans is quote-unquote “just” a regional retailer – yet we procure from the globe and in addition, seek out every opportunity to learn from other retailers around the globe. And our business is better for it.

So I’m looking forward to continuing the great work that Bruce started, as we begin to execute the new strategic plan. We’re laying the groundwork for the next generation of PMA, and of PMA membership.

Speaking of the next generation, in the coming year you will see PMA’s Foundation for Industry Talent taking even more of a leadership role.

Talent is a top priority for Wegmans. In the few minutes I have right now, I can’t possibly cover how difficult it is to find great talent for our business. We know that our company, like the supply chain we belong to, is only as strong as its weakest link. That’s where PMA’s Foundation for Industry Talent comes in, with its laser focus on attracting, developing and retaining the talent today that we will need tomorrow.

Wegmans recently hired a young man I first met as a student attending Fresh Summit on a Pack Family/PMA Career Pathways scholarship. And we aren’t the only happy foundation customer – what a great success story this program is. Thirty-four of the 65 graduates took jobs in our industry. I personally applaud the investment that PMA and Jay and Ruthie Pack have made in a program already paying off handsomely – for us all.

I am especially honored today to tell you about the foundation’s newest initiative: the Tip Murphy Legacy Fund. Tip Murphy was a strong leader, a natural mentor, a respected colleague and dear friend to many in the industry, including me. His untimely death this summer is a tremendous loss. Friends and colleagues have pledged $120,000 over the next five years in seed money to start a scholarship fund in his name, for industry professionals who want to advance their leadership skills. The goal of the fund is to build a permanent endowment of $250,000 by 2012 to fund scholarships into the future. Tip’s wife Gretchen is here with us today to help us announce this great new program.

Gretchen, please know that you and the girls have our sincere condolences and heartfelt best wishes. We are pleased to be able to honor Tip’s memory in such a lasting and impactful way.

I would also like to recognize the industry leaders at Naturipe, Ready Pac, Chiquita and Paramount Farms who took the initiative to make this fund possible … please join me in a round of applause for them.

Anyone wishing to make a donation in Tip’s memory can do so in the PMA Center in Hall B4, or at the registration desks. You can also find out more about the fund and the scholarship it supports in the PMA Center, or in the booths of these four companies. The first scholarship will be awarded this November for the 2009 calendar year.

The foundation’s future looks bright. But that future depends entirely upon our support. The scholarships, the student mentoring and visiting professors programs, the leadership institute – none of these would be possible without your financial support. I believe strongly in the future of this industry, and in the foundation’s mission to ensure that future is bright. That’s why I personally support the foundation – and I hope you will, too. Make a contribution today at the PMA Center in Hall B4.

I have had great mentors and wonderful career opportunities, so I believe in giving back – call it my own personal form of sustainability. Although no two people can agree on what sustainability means, it has become a business imperative.

Wegmans knows there’s a business case for it, that it means savings for the environment and for the company. We started our own organic test farm to help develop best growing practices to share with our local growers’ network so they can help close the sourcing gap we currently face. A wonderful fringe benefit is that we now have a whole new insight in growing.

PMA knows sustainability is an opportunity for our industry, as long as others don’t try to tell us how to do it. So we are engaging those discussions. And we are looking forward to the results of PMA’s own sustainability research, which should guide our efforts. We’re also working to reduce our footprint, at the office and at events like Fresh Summit. Central to our work is the belief that agriculture must be economically sustainable – otherwise, we risk losing those fields to those tract houses. To find out more about PMA’s approach, join me for our sustainability workshop tomorrow morning.

I have made a lot of promises to you as I’ve stood here today. We know our industry is facing many challenges, from food safety to increasing input costs to labor and the environment. And because you need us more in complex times, PMA must and will do more. I am honored to preside over such a strong association, and to work with such talented staff, for the good of the produce community.

When I stand here next year, I expect you to hold me to that word. That’s my promise to you, from one link in the supply chain to the others.

Again, thank you for the opportunity to serve in this capacity at PM

Bruce Taylor - Taylor Farms - Fresh Summit 2008 - Outgoing Chairman's Address

FRESH SUMMIT 2008 - OUTGOING CHAIRMAN’S ADDRESS
BRUCE TAYLOR, TAYLOR FARMS


As long as we are honoring winners, let me acknowledge the service of Past Chairman Peter Goulet as he leaves the PMA board. Peter became chairman two years ago in the midst of the spinach crises. He worked tirelessly on our behalf to help promote the message of food safety to the industry, and to the public. Peter also devoted significant time and effort to bring together leadership of United Fresh and PMA to explore opportunities for collaboration. One of the results of this dialogue was my invitation this past year to the chairman of United Fresh and the chairman of Western Growers to join us at our PMA board meeting, so we could make sure our respective organizations were in alignment and not duplicating efforts. With Peter, we are not just celebrating one year of chairmanship, but nine years of participation in leadership on PMA’s board. Peter, thank you for your service, for your wisdom, for your passion and for your friendship these many years.

PMA is an organization in which industry leaders and members can come together to accomplish what they cannot accomplish on their own. An association where bold ideas of individuals can be transformed into tools to advance the greater good of the industry. A forum to help build a better produce industry for its members. As Abraham Lincoln said, “none of us is as good as all of us,” and this is certainly reflected in the promise of PMA.

Recently, the economy is slowing. Though I always have hope… in the near future, hope is not a plan. I believe you need to work diligently and quickly to properly position you and your organization for a tough road. At the same time, there are things we can do together to help the industry and ourselves.

A year ago in Houston, I spoke of three ongoing objectives for PMA to help create a stronger produce industry. The objectives were to speak with “One Industry Voice in Government Relations”, to develop “One Standard for Food Safety”, and to “Deliver One Promise” of consistent product satisfaction and excitement to consumers. I believe with concerted effort, we can continue to make great progress.

The inclusion of specialty crops in the 2008 farm bill is a huge victory for the produce industry. I believe this started with a bold idea from Tom Nassif, then the new president of Western Growers. Western Growers, United Fresh and PMA worked together to get produce included in the 2002 farm bill with very limited success. These last two years, PMA worked with the same partners and a larger coalition of stake holders to achieve the historic appropriation for specialty crops of almost $3 billion over five years. This is not a hand-out… this is an important investment of resources to support production programs, consumption-boosting nutrition efforts, food safety research, crop protection, and domestic and global market-building programs.

This is a tremendous affirmation for the produce industry. Think about the ramifications. We are valued for our healthful products. Our industry has new allies in the fields of nutrition, health care, education and government. “One Industry Voice” won the day! But we are not finished. The challenge now is to stay united with our partners to work together to direct funding to our highest priorities, to the greatest benefit for the industry.

Second, we spoke of coming together to develop “One Standard for Food Safety.” I think most of you understand how vulnerable each of us is to the current state of food safety management. In a nutshell, the federal government has successfully set up a sophisticated, real-time information system to detect patterns of disease or infectious outbreak. The Centers for Disease Control and Prevention manages this information system with doctors and scientists who are paid to be scared…because their task is to protect the public. CDC and the Food and Drug Administration are looking for patterns of outbreaks… and they have become very good at finding them. Our fundamental problem today is that while they have become very accomplished at finding a problem, they have not enhanced their ability to identify the cause of the problem. With good intention, they trashed the tomato industry before they settled on peppers. PMA and United Fresh are pushing for immediate industry involvement in the event of outbreaks to assist FDA and CDC with our in-depth industry knowledge.

The government is looking to us to enhance our systems of traceability. Bryan talked yesterday about our excellent progress in this area. Traceability is important because it gives us an opportunity to follow a problem backwards and learn from its creation. It also gives us an opportunity to give the consumer more confidence, because there can be a sense of closure. Problem identified, problem solved, problem over.

But let’s be clear. In the end, traceability is like putting lipstick on a pig. It is an after-the-fact reaction to a damaging outbreak. I believe the only viable long term option for food safety in our industry is to produce safe food. It sounds simple…and working together I believe it will be achievable. Since the spinach outbreak, our company has tested raw product from 25,000 different fields of leafy greens. We found only eight positives for E, coli O157. We linked three of the eight to organic fertilizer, and the supplier has since changed their composting protocol for all customers. Through better information, we have reduced our collective risk. Thanks to Fresh Express-funded research presented last month, we learned these dangerous microbes attach to the outside of leafy greens, they are not inside the plants. This is great news…it means we have the opportunity to eliminate them with post-harvest treatments and wash systems. The Center for Produce Safety will issue its first research grants in two weeks, and important work continues throughout the industry. Working together, we are systematically developing rules and tools to deliver safe food. As we succeed, we will attain the most precious commodity… consumer trust and confidence.

Third, we spoke of “One Promise”… to delight our customers with superb quality, great tasting and nutritious products every day. If our buying relationships are transactional in nature…for example, Internet bids that reward the lowest price supplier that day…we lose the systematic benefits of a well tuned supply chain…a supply chain that is designed from seed to plate to delight the consumer. New college courses in supply chain management teach graduates all the tools they need to take cost out of the system. A common mistake they make is to view the transaction solely from the eyes of the buying entity… not from the perspective of the ultimate consumer. If we think of ourselves as a commodity business, we lose the ability to use unique seed varieties, unique growing micro climates and nuances of production that could delight the consumer.

A familiar example is the retail packaged salad business… a product USA Today voted as one of the top 25 products invented in the 20th century. Buyers routinely pit the major suppliers against each other to drive down prices. The suppliers respond to lower prices with efforts to reduce cost. There are many ways to make a salad cheaper. If consumers get an inferior product, they stop buying and the category goes flat at retail. Nobody wins. If we are to succeed in this difficult economy, our supply chain must be tuned to meeting the needs of our consumers, and the partners must be in alignment throughout the chain to accomplish this.

The good news for us is simple… our customers are going to eat. Our opportunity is to excite them to eat our products. One Promise – from a strong cne supply chain.

Farm bill success for new resources…Center for Produce Safety success for enhanced consumer trust… Supply chain success for quality improvements…we have three great drivers for optimism and growth for our industry.

Finally, let me tell you a personal story to provide encouragement for you. I am sure a touch of fear has crossed your mind recently. Fourteen years ago I did not have a job. I had started a new company, but that was only a piece of paper. I had business cards made at Kinko’s. I would spend the day in a small office at our home…and when no one was looking I would lie on the floor and stare at the ceiling… for hours. I was scared… and it felt like I had nothing. But usually about the time I was feeling sorriest for myself, our youngest son would crawl in and lay on top of me… and Linda would come in with a hug and a word of encouragement. In the next twelve months I came to learn that instead of having nothing… I really had everything. I had a loving and supportive family; I had former suppliers and former customers who wanted to support me; I had friends and former associates who wanted to be on the new team; and I had the benefit of thirteen years of PMA-inspired events, education and relationships.

I tell you this because today, each of you has more going for you than you think. You have more strength and support than you know. The relationships you have built and the things you can learn from those all around you in Orlando this week will continue to accrue to your benefit.

You are the best and brightest in the produce industry. Your speed of innovation and depth of creativity are inspiring. This year alone, we will see innovations such as hybrid seed varieties, automated lettuce harvesting, optical laser sorting and food safety breakthroughs. In my 27 years in the industry I have never seen more opportunities to work together for positive change. But this will take a commitment to leadership…your leadership…to leverage your skills for the greater good of our fine industry. Together, we can create a lasting legacy for generations to come.

Thank you.

PMA Day Two - Slideshow