Will PMA show be hurt by sliding economy?

That's a question that has come up in the last few days, and the consensus by most is that it won't likely have a big effect.

Will there be an "11th hour" swoon in attendance, given the turmoil in financial markets?

Bryan Silbermann of PMA said show registration numbers rivaled those of the PMA show in San Diego two years ago. While there may be fewer walk up, on-site registrations this year, Silbermann said signs point to another strong show and no big drop off in attendance.

Looking farther down the road, this softer economy will surely impact the way companies use their travel budgets.

I noticed that PMA has advertised in a recent issue of The Packer that they did not raise their membership dues this year. Going forward, all associations and every industry company marketing a good or service will surely look to deliver value to their customers or pay the price themselves.

Here is some recent coverage about how businesses are adjusting to the recent turmoil:


Economy takes toll on premium airline passengers From the WSJ:

Until earlier this year, Stephen Terrell, a 45-year-old executive with an Atlanta insurance-settlement company, regularly flew business class for work-related travel to New York, California, Florida and the Midwest. But as the financial sector began to unravel in recent months, his employer, which this week laid off nearly half its 50 employees, began booking only economy-class seats. "We're only traveling when it's absolutely necessary," Mr. Terrell says.


Central Florida feels effects of economic slump From The Orlando Sentinel

August occupancy in Metro Orlando hotels dropped 1.2 percent from the previous year, and September is expected to be worse, McHugh said. Potential convention bookings are down 8 percent compared with last year, while locked-in convention bookings are off by 23 percent, figures show.

Las Vegas strip revenue declines for eighth straight month From Bloomberg:

Casino revenue at the largest U.S. gambling center fell 6.7 percent to $4.21 billion this year through August as U.S. consumers struggled with higher gasoline and food prices, declining home values, job losses and the worst financial crisis since the Great Depression.


U.S. hotel industry posted declines last week From AP

"While the impact from Rosh Hashanah was felt last week, the major concern over the bailout of the U.S. economy crippled the weekly results across all industry segments," said Brad Garner, STR's vice president of client services.

Garner said twenty of the 25 largest hotel markets experienced a double-digit decline in revpar growth over the same week last year.

"A significant pullback in business travel, a collapse in discretionary leisure travel and continued group attrition rates will be ongoing concerns until the credit market crisis eases," Garner said.

Youtube of the Day - Fresh Summit

COOL Webinar

Julia Stewart passes on this note about the free Webinar next week on COOL best practices from PMA and Western Growers:


PMA, Western Growers co-host free industry Webinar June 24 on COOL best practices

Newark, Del. – Produce Marketing Association (PMA) and Western Growers (WG) will co-host a free Webinar for industry to learn about and provide feedback on the associations’ new draft best management practices for complying with federal produce country of origin labelling (COOL). The complimentary Webinar, which will be held Tuesday, June 24 at 4 p.m. EDT/1:00 p.m. PDT, is designed to prepare industry members for Sept. 30, 2008, when mandatory federal country-of-origin labeling goes into effect.

The best practices were developed by the associations’ joint task force, whose members represent the entire supply chain. The task force was chaired by Tom Deardorff of Deardorff Family Farms and Mike O’Brien of Schnuck Markets.

PMA Vice President of Government Relations and Public Affairs Kathy Means, WG Executive Vice President Matt McInerney and task force co-chairs Deardorff and O’Brien will lead the Webinar. They will present the task force’s best practices, then field questions from Webinar participants.

“Implementing COOL practices throughout the produce supply chain is really a hot topic, especially with the Sept. 30 deadline approaching so quickly,” said Means. “Aside from this Webinar, PMA will also offer a COOL educational workshop at Fresh Summit in October, nearly one month after its implementation. Because the convention provides such a diverse representation of businesses, it is a perfect opportunity to check the industry’s pulse on COOL implementation.”
“Based on feedback we received throughout the supply chain, Western Growers and PMA were able to come together and develop a set of COOL best practices we anticipate will prove useful as a practical approach as the Sept. 30 deadline approaches,” said McInerney. “We are looking forward to broad participation in this Webinar, as we roll these best practices out.”

Webinar participants will get an inside look at COOL and the latest information to make origin labeling easy for companies throughout the industry. Presenters will give an update on U.S. Department of Agriculture rules and regulations, and how to prepare for future in-store compliance checks.

The draft country of origin labeling best practices that will be discussed in the Webinar can be accessed via PMA’s Web site at http://www.pma.com/issues/labeling.cfm, or on WG’s Web site at www.wga.com. The guidance will be reviewed again when USDA releases COOL regulations sometime in July.

The Webinar is complimentary, but registration is required. For additional information and to register, visit http://www.pma.com/webinar/webinar-web-June10-08.html.

Poll closing

The Fresh Talk poll question about what PMA should do about the future of its Fresh Summit expo is closing today. This one dimensional question does not address all the variables involved in PMA's management of its highly successful expo, but it does reveal that at least some readers believe that PMA should do something that would allow it to provide more flexibility in choosing venues for its show.

Here are a few simple maxims I picked up from the Houston show:
1. Exhibitors trust PMA to make the right decisions
2. At the same time, they don't understand why San Diego can't be in the convention rotation
3. There was some disappointment in the attendance at the Houston show, particularly late Sunday and Monday.
4. Ideas for changing the show to increase flexibility included limiting booth size and/or breaking out the floral exhibitors.

If PMA loses the San Diego venue, can there be any doubt that United will target that city for its expo? How much of the success of a trade show reflects the inherent strength of the organization, and how much is linked to the city it is held? That is a question that looms large for both PMA and United.

Impact of PMA & Exhibitors donation is monumental - thank you!

From Rick Bella: More than 15,800 members embarked on the Produce Marketing Association’s annual Fresh Summit International Convention and Expo this year, held October 12-15 in Houston, Texas. It was the first time held in Houston and attendance exceeded PMA’s expectations. Even exhibitor participation was great with over 500 produce related companies showing their goods and another 150 or so industry support companies. Overall a great event again put on by Bryan Silbermann and his talented staff as well as board and committee members.

Each year now, for many years, exhibitors donate display produce to America’s Second Harvest-The Nation’s Food Bank Network http://www.secondharvest.org/ . This year, The Houston Food Bank http://www.houstonfoodbank.org/ collected the produce at the close of the show utilizing about 200 volunteers working in two different shifts. They collected row by row, and booth by booth over 311,000 pounds (yes, three hundred eleven thousand) of fresh produce donated by each exhibitor at the PMA. The fresh produce was then distributed to the food banks member agency network (400 hunger relief agencies in 18 southeast Texas counties) that collectively provided 38 million pounds of food last year to the cities hungry and nearby counties reaching 80,000 different people each week.

Most exhibitors might not think about the impact of their produce donation and that’s understandable as they are all very busy with the business at hand during a show of this magnitude, however a special thank you to all of those companies is in order as well as a thank you to PMA for recognizing the need and suggesting the donation process to each exhibitor and providing the means to allow companies to easily mark their produce for donation as well as providing much of the logistics’ to support such a huge donation.

It is important to note that fresh produce has been the #1 category of food that the network distributes through the national program and has been for the past three years. Last year, the network collectively distributed over 200 million pounds of fresh produce through 204 member food banks providing food to 50,000 different charity agencies. It’s great to know that they are right there aliening with the industry to increase the importance of eating fresh produce. In a way, you could say that they are actually increasing the industries customer base, since most folks needing food assistance are right back in the supermarkets after a few months as a consumer once they are back on their feet.

The variety and quality of the PMA organized donation certainly exposes many consumers to fresh produce experiences that they might not otherwise ever experience. Thank you to PMA and the wonderful exhibitors at the show who continue to support the efforts of hunger relief. It really falls right in line with the entire industries values; helping others is not new to this group, for sure! Donations are accepted every day... contact Rick Bella at America’s Second Harvest – 312-641-6507 or email rbella@secondharvest.org

Everything you wanted to know about PMA*

Well, you probably weren't afraid to ask, but here are some resources to check out prior to Houston. First, you be aware that Fresh Talk has a Google search bar at the bottom of the page that can search the Web pages of the PMA, in addition to United and The Packer.
Here is the schedule of events in Houston for the Fresh Summit.
Here is the exhibitor list.
Exhibitor search
Transportation information
Here is the group's 2005 990 form.

A general description of Fresh Summit:

Newark, Del. – The Produce Marketing Association (PMA) Fresh Summit International Convention and Exposition, expected to attract over 17,000 attendees and 800 exhibitors worldwide, will be held October 12-15, 2007 at the George R. Brown Convention Center in Houston, Texas, U.S.

PMA president Bryan Silbermann remarked, “PMA’s Fresh Summit is for individuals from companies big and small across the entire industry, from produce to floral, retail to foodservice and global to local. This is the industry’s once-a-year opportunity to identify new products, trends and ideas that will impact the industry as a whole as well as individual companies and careers.”

Silbermann will provide his insights and analytical perspective on Saturday, October 14 at the Breakfast General Session, “A Fresh Outlook on the State of the Industry.” Highlights from additional speakers include:
The Honorable Colin L. Powell, one of the 21st century’s most influential leaders, will outline the critical elements needed for successful leadership including gaining control and the trust of others during tough situations in “Diplomacy: Persuasion, Trust & Values” at the opening Lunch General Session on Friday afternoon.
John G. Miller, best selling author, will reveal the common thread among successful leaders and how it can improve manager-employee relations in “Personal Accountability and the QBQ!” during the Sunday Breakfast General Session.
Keith Harrell, life coach and author of Attitude is Everything, explains that an individual’s attitude can raise one’s altitude on the corporate ladder in the Monday Breakfast General Session presentation, “Harnessing the Power of Human Technology.”

New flow for Fruit Logistica

Guest blogger Lance Jungmeyer here ....

The U.S. market is gearing up for the PMA Fresh Summit in Houston.

Not content to sit by the wayside, the marketers of FruitLogistica are trying to illustrate how their 2008 show will be different from previous incarnations.

The show will feature more halls, with all of them on one level instead of two or three.

The important change, at least as far as North, South and Central American exhibitors go, is in the change of traffic flow that theoretically will bring more footsteps to Hall 25, or the Americas Hall.

In the past, visitors had to go up a flight of stairs and out of their way in order to happen upon the Americas Hall. Exhibitors complained and Fruit Logistica listened.

Next year will be my fourth trip to Fruit Logistica. I've found it to be an engaging event, a feast for the senses. I don't generally accomplish as much as I do at PMA's Fresh Summit, but I nevertheless am exposed to some things that I've never seen before. It's a whole different world, and one that is ripe for exploitatation, especially for export-oriented firms now that the dollar is so low.

Social responsibility and ignorant consumers

PMA's research on social responsibility and consumerism are intriguing. Do the findings point to the failure of the produce marketing concept that has been in place until now? Is the customer king, or should produce marketers try to deliver what enlightened wisdom dictates is best for consumers? Do consumers overstate the importance of social responsibility in surveys compared to their actual behavior?
Here is a report from Tom Burfield, Western Correspondent for The Packer:
Consumers believe the degree of social responsibility a produce company exhibits is a highly important factor when they're making their purchase decisions, according to new research from the Produce Marketing Association.In a survey of 1,000 consumers this summer, 55% percent placed the highest degree of importance on the social responsibility – or sustainability – of their produce suppliers.Survey participants placed organics (13%), distance from farm to store (11%) and fair living wages (11%) at the top of the list of social responsibility issues.

Recycled and recyclable packaging received high ratings from 8% and 7%, respectively. PMA said that, when combined at 15%, packaging issues are the most highly rated sustainability issue for consumers.
A workshop will focus on social responsibility at PMA's Fresh Summit International Convention and Exposition in Houston Oct. 12-15.
Findings of the research:
Consumers believe the degree of social responsibility a produce company exhibits is a highly important factor when they're making their purchase decisions, according to new research from the Produce Marketing Association.In a survey of 1,000 consumers this summer, 55% percent placed the highest degree of importance on the social responsibility – or sustainability – of their produce suppliers.Survey participants placed organics (13%), distance from farm to store (11%) and fair living wages (11%) at the top of the list of social responsibility issues.

Recycled and recyclable packaging received high ratings from 8% and 7%, respectively. PMA said that, when combined at 15%, packaging issues are the most highly rated sustainability issue for consumers.

"The survey's insight on social responsibility offers more evidence that it is time to get back to the basics by restoring our personal relationships with consumers and focusing on providing great-tasting fruits and vegetables," Bryan Silbermann, PMA president, said in a news release."We should not only strive to build a better supply chain, but also build a better value chain for our customers," he said. A workshop will focus on social responsibility at PMA's Fresh Summit International Convention and Exposition in Houston Oct. 12-15.

TK: Here is a link about research from the UK - the first and strongest bastion of social responsibility in marketing - that shows consumers care more about price and convenience.

From The Scotsman.com:
ETHICAL shopping is the most important trend on the high street, with everyone from retailers to manufacturers making increasingly bold claims about their environmental or social credentials.
But British consumers still put the cost and convenience of food ahead of their concerns about the planet, according to a survey.
Research by BBC Countryfile magazine reveals that the top priority for a third of food shoppers is price. What is more, half of us believe that locally produced food is more expensive than other produce, and 41 per cent say that this perceived expense is likely to prevent them from buying locally produced goods.

Here is a very revealing paper on the study of the consumer movement in the U.S and the implications of the social responsiblity movement. Robert D. Winsor, Loyola Marymount University, writes about "SOCIAL RESPONSIBILITY, CONSUMERISM, AND THE MARKETING CONCEPT" One of the key tenants is that "social responsiblity" can become just another way to manipulate consumers.

From the paper:
Yet, it is noteworthy that the ultimate result of an expanded social responsibility of business is the concomitant diminishment of free consumer choice. Moreover, this obstruction of consumer discretion is the inevitable consequence of presumptions of consumer irrationality.

Later....

It should be noted that the societal marketing concept is founded upon one dominant and critical proposition. This is the assumption that "consumers' wants do not always coincide with their long-run interests or society's long-run interests," and that, given this, marketers should place the "emphasis on 'long-run consumer and societal well being" (Kotler, 1977b). As a result, the societal marketing concept represents an endorsement and justification for the social responsibility of business in contemporary society, and a refutation of Milton Friedman's infamous assertion that "the social responsibility of business is to make a profit" (Friedman, 1962).

Later....

Because organizations are rapidly becoming aware of the power of "green consumers," for example, there is a significant temptation to advance this agenda through the marketing program as a powerful device for cultivating customer loyalty and anesthetizing consumer prudence and vigilance.

TK: If the produce selling proposition at retail switches dramatically from providing the best tasting produce at the most competitive price to the most "socially responsible" produce, consumers may feel more manipulated and unsatisfied than ever. Suppliers may feel manipulated too. I remember one question posed to a panel of retailers at the AsiaFruit Congress about Fair Trade bananas; why don''t retailers have "fair trade" for produce grown in England or the U.S.? Where does social responsibility come in when buyers are beating down the price? I will be interested to hear more at the PMA....

Statement from PMA

This from PMA about the end to merger talks....

To: All PMA Members
Re: Discussions with United Fresh Produce Association (UFPA)

On behalf of PMA's Executive Committee (names listed below), we are writing to give you an update on the outcome of our discussions with UFPA.
For the past six months, a group of PMA volunteer leaders has been in discussions with UFPA leaders to explore the feasibility of a merger between our two associations. As with all PMA leadership groups, the members involved represented a cross section of our supply chain, including grower/shippers, processors, distributors, as well as retail and foodservice buyers.
UFPA and PMA representatives met in March and July to discuss the potential merger as well as the feasibility of a formal structural collaboration. During the discussions, it became apparent to us that UFPA's and PMA's core competencies and cultures are different, and that each association carries out its mission in distinct ways. After careful deliberation at our recent meeting, the Executive Committee determined that at this time, it is in our members' best interests to have the two separate associations continue to focus on the unique value they each bring to the industry.
While the merger talks have been discontinued, please rest assured that both organizations will continue working together in a spirit of allied industry partnership on issues such as food safety, traceability and more. As in the past, PMA will also collaborate with UFPA and others to ensure your perspective is well represented in public policy debates. PMA will continue to participate in government relations and public affairs activities when such participation is in the best interest of our members across the supply chain.
We know both associations are committed to providing future services and value to their members under the leadership of their Boards of Directors, and pledge our continued cooperation in areas of mutual interest. We look forward to seeing many of you at Fresh Summit in Houston next month.
Peter Goulet
Chairman of the Board
Janet Erickson
Chairman of the Executive Committee
Members of PMA's Executive Committee are:
Janet Erickson, Chairman of the Executive Committee
Peter Goulet, Chairman of the Board
Bruce Taylor, Chairman-Elect
Dave Corsi, Secretary/Treasurer
David Gill, member at large
Rob Robson, member at large