Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, January 8, 2010

Fresh produce players reveal their expectations for 2010 - Fresh Produce Journal

Fresh produce players reveal their expectations for 2010 - Fresh Produce Journal

As the fresh produce industry gears up for 2010, FPJ catches up with leading figures from across the sector to find out their New Year’s resolutions for the industry and their expectations for the next 12 months

Nigel Jenney, chief executive of the Fresh Produce Consortium (FPC)

We all want to reduce food waste throughout the supply chain and we are encouraging the fresh produce industry to make a difference in 2010 by supporting FareShare. The national food charity is a successful example of how the fresh produce sector can help disadvantaged people across the UK who do not always have access to a healthy diet of fresh produce.

It’s vital that we encourage greater consumption of fresh produce across the whole UK population and we will continue to work with government departments and others to achieve this.

I would like to see the food miles myth dismantled in 2010. For some time, we have been highlighting the complexities of the food supply chain and the true impact of food production and consumption.

It is rewarding to see charities such as Oxfam and international consumer organisations realising that the food miles concept is confusing and that climate labelling is impractical. Now these organisations are recommending that consumers forget food miles and eat less meat and more fresh produce to help influence demand for sustainable, low-emission products.

The relatively low carbon footprint of the fresh produce sector must be recognised in comparison with other food sectors. The fresh produce industry is putting in place measures to achieve food production in a low carbon world, calculating greenhouse gas emissions, reducing excess packaging and increasing reuse and recycling, as well as reducing food waste and recovering energy.

The review of the EC Plant Health Regime provides us with the opportunity to call for greater prioritisation of risk management, expansion of reduced checks and the approved Trade Scheme for traders with a long-standing record of compliance.

The FPC drove forward the pilot of the Automatic Licensing Verification, introducing simplified and improved procedures for importing fresh produce, estimated to save the industry around £1 million each year. This is the final element of the FPC’s long-term strategy that brings together work to develop PEACH, eDomero and CHIEF.

Many issues and recommendations we identified where many of the government departments could make efficiencies are included in the Simplifying Trade Across UK Borders action plan.

The FPC will challenge the UK government to deliver and to remove unnecessary burdens from companies importing fresh produce to the UK. We must ensure that the UK is a destination of choice, with fast and effective importation controls allowing produce and cut flowers to be enjoyed by all.

Laurence Olins, chairman of British Summer Fruits

My predictions for the industry are notoriously difficult given that I have no idea what growers’ intentions are for planting or the climate we face.

However, demand for soft fruit should continue to rise, hopefully in line with or ahead of production. I am sure there will be further new varieties being produced commercially that were in the trial stage last year. The cost of production will be affected by higher wage rates for agricultural workers and the increase in National Insurance contributions, so yields or selling prices should rise to meet these additional costs.

My resolution for 2010 is not to make any, so there is no danger of breaking them!

Graham Wallace, managing director of City Markets (Glasgow) LLP and chairman of the World Union of Wholesale Markets

Locally, the focus for 2010 must be on the modernisation of the market and therefore my resolution is to ensure that the contract for the works in Glasgow proceeds in such a way that the impact on the tenants’ day-to-day business activities is minimised as much as possible.

This will, of course, involve some intense co-operation between landlord and tenant, but the rewards for the undoubted patience and tolerance required will definitely outweigh the cost.

In recent years, the relationships between the market owners/operators and the businesses in the markets have markedly improved and there is now full acceptance that we must act in partnership on a much wider range of issues to ensure the individual market’s success. This equally applies to the wholesale and retail market sector working together as a whole and, as shown through the market members of the World Union of Wholesale Markets (WUWM), it is apparent that by doing so we can raise the prominence and the profile of our individual operations. The markets sector has successfully managed to weather the storm to date and there is no reason to doubt that 2010 will be any different.

Sandra Ziles, director of the Potato Council

This year, the Potato Council is committed to highlighting the importance of the potato as part of a healthy diet and food security.

Through the ‘supercarb’ campaign, we are pushing for potatoes to be recognised as a carbohydrate that has all the goodness of a vegetable. This campaign draws attention to the essential nutrients contained in potatoes, combined with the energy they provide. The initiative has been backed by many within the potato industry and it is hoped that support will continue to increase.

Alongside this, reaching younger consumers is crucial to the long-term future of the industry and we must engage with and educate this group about potatoes and their health benefits, as well as their versatility, convenience and the different varieties available. We can do this most effectively by increasing dialogue through new media channels and social networking sites, and the Potato Council will continue to build its presence on the likes of Facebook and Twitter.

Potatoes have fared well through the recession, as budget-conscious consumers search for better value for money and return to scratch cooking. As the economy recovers, the sector needs to maintain the increased demand for potatoes and drive sales value by encouraging consumers to keep them on their shopping lists.

The Potato Council’s research and development will have a focus on sustainable production.

Furthermore, as a division of the Agriculture and Horticulture Development Board, the Potato Council aims to provide a more efficient and cost-effective service in 2010, serving the interests of all levy payers.

David Macaulay, A DIRECTOR OF Redfox

The fresh produce industry has an exciting year ahead, with confidence rebuilding across the supply chain, companies and candidates, as well as acquisitions and the restructuring of middle and senior teams leading to more senior opportunities.

I expect that it will be a year of growth and higher expectations. Candidates and clients will be looking for companies and recruitment consultancies to differentiate themselves through their brand, financial strength, strategy and marketing. This is why Redfox is leading the way in the development of social media as a form of communication. Nothing beats talking face to face, but our contacts want instant information, whether that is on career-changing roles or breaking industry news.

But the main challenge will be to manage expectations. There is a belief that there is an abundance of talent out there as a result of redundancies, but we are still using our executive head-hunting skills to target and place the right candidates that are not actively looking for career progression. Clients need to understand there is still a very strong demand for talent in the sector and as leading businesses start revisiting their succession planning strategy, the competition to recruit the best will increase.

This year, I would like to see the industry stand up and be noticed. The fresh produce sector, along with agriculture in general, needs to address the issue of an ageing workforce and the succession planning challenges that this creates. How can we do that? We need to reach further than the classical agricultural universities to raise the profile and benefits of the sector with non-farming talent.

With the public’s increasing interest in fresh food, there is no better time for the industry to sell itself and engage with future leaders about the benefits of working within the sector. There are still only a handful of middle and senior managers within the sector that have joined halfway through their career and they are making such a positive impact with fresh ideas and professional standards that have been neglected in the past. The cultural fit must be right but when it is, the benefits to the business and colleagues can be excellent.

Sandy Sewell, commercial director at Florette

Christmas 2009 proved to be a great success for Florette, as initial figures indicate a sales increase of more than 25 per cent compared to the same time in 2008. Consumers tend to rely on brands such as Florette at Christmas to provide the quality and freshness they expect during this important time of the year.

As we look ahead to 2010, the one thing that we can be certain of is that it is an exciting time for the fresh produce category. With the UK set to emerge from recession, it will be important for all companies in the sector to invest in new product development, to continue to drive consumer interest.

For Florette, this innovation will happen across both areas of our business – prepared salad and fresh fruit. Prepared fruit was a new launch for Florette in 2009 and we are very excited about where this could take the brand in 2010. We have a number of innovations planned that will be launched during this year, which we feel will drive interest and sales in the category. Similarly, we are also continuing to invest in our salad offer, with new products to be launched throughout the year to complement our core bestsellers.

The end of the recession could also lead to a rise in consumer spending and added to this, the staycation trend of 2009 is also set to continue into 2010. There are also some key dates that many in the sector should be focusing on. While it is too early to predict whether we will have a barbecue summer, the football World Cup in June and July will provide a key sales opportunity, as consumers get together with friends and family to watch the major games.

Generally, 2010 is looking positive in terms of economic outlook. Added to this, in 2010, Florette will once again be investing in a major £3 million TV advertising and consumer press campaign, increasing our digital capabilities, all alongside ongoing new product development, which will continue to drive brand growth in 2010. By keeping innovation at the core of the business, we aim to ensure the category can truly be seen as fresh.

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