With President Barack Obama now in office what changes do you expect in terms of policy relating to the US produce business?
BW: During his campaign, President Obama made it clear that he is a strong supporter of country of origin labeling (COOL) and supports efforts to improve food safety programs. He also supported the farm-to-school program and voted for the farm bill which provides more than US$1bn to expand healthy snacks in our schools.President Obama recognizes there is a serious obesity problem in the US, among both adults and children. Agriculture Secretary Tom Vilsack also said he would put “nutrition at the center of all food assistance programs”. President Obama has also given clear signals he wants to open global communications to improve our country’s image and foreign relations. I hope he holds true to this and is not swayed by select special interest groups. I believe the best way for him to achieve this is to develop and enhance our trade relations thereby increasing the opportunities for US exports and imports.
There are differing opinions on whether the financial crisis will affect sales of fresh produce. Is there any evidence to suggest that the recession is hindering trade?
BW: Every day we discuss the economic situation with our clients and global suppliers. Some report that sales are off by 10 per cent, but I believe the impact varies throughout the US. There are obvious regions (Michigan, Florida, California and Arizona) where the economy is under greater pressure and most likely the impact has hit the foodservice segment first as consumer spending is redirected.
Food safety continues to be a key concern and we’ve seen a number of scares in the last year. What is the feeling among importers and how is the industry responding?
BW: I can’t speak for others, but I would say the general feeling is frustration. Food safety takes top priority with importers, growers, packers and exporters. Our industry has had various systems in place for many years to ensure produce is handled safely. All of these programs, such as GlobalGAP, HACCP, IFS, and ISO, are designed to ensure food safety. Our industry responds quickly and takes a proactive position in dealing with food safety issues. We operate in a transparent environment, with full traceability and in total cooperation with all government agencies. We want to work hand-in-hand to help government agencies understand the facts related to the issue and hope that they take the proper decisions.
What steps do you think need to be taken to guarantee food safety and, at the same time, maintain the reputation of quality suppliers?
BW: We need to continue to implement existing food safety programs and continue to monitor the supply chain from farm to retail. Ongoing employee training is a must throughout the supply chain. Food safety doesn’t stop once the product is unloaded.
How are retailers coping with COOL?
BW: Retailers are complying. When I visit supermarkets I see COOL throughout the produce department. Country of origin is not of great concern for produce consumers, however. I have always believed market research studies which indicate that produce purchases are made on impulse – if the product looks good and priced right the consumer will buy it.
What are the industry’s current challenges?
BW: Importers must stay current with global economic news, events and market conditions because they could impact the US. We are also under constant pressure to find ways to reduce costs. In the past 18 months we have seen a significant rise in the cost of bringing product to market, including labor, transport, packaging and energy, which is reducing grower returns because in most cases many increases could not be passed on. Importers must also continue to find ways to ensure their product is promoted at a retail level, and importers and retailers must work closely together to plan marketing activities to add stability to the FOB market and maximize retail sales opportunities.
What are the latest trends regarding imports?
BW: Retailers are more sensitive to price points. I see more discussions taking place between salespersons and buyers over what alternatives might be available such as buying smaller sizes and selling the product at a more attractive price point, or promoting a 3lb bag at a better price point rather than a 5lb bag.
What are the current market conditions?
BW: Demand remains strong for good quality product. Prices are directly related to volume-demand-promotion. Specifically-speaking, Argentinean pear volume is down following a labor strike, while early Chilean grape imports were low due to quality problems. Right now, we’re reaching the end of the clementine deal which this season has seen higher volumes from both Spain and Morocco.
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