Gill McShane

It’s been an exciting couple of months since Americafruit Magazine last went to press with expansion and development stories hitting the headlines left, right and centre!

The North American produce business is continuing to thrive and as we approach the traditionally busy summer sales period the region’s global suppliers are responding to growth and reinforcing their competitive edge by tapping into new niches and opportunities.

During the first quarter of 2010, fruit and vegetable purchases showed an upturn in performance, rising by 2.5 per cent in volume terms and 2.3 per cent in value, according to a report from The Perishables Group. Citrus sales alone climbed 10.6 per cent.

Eager to capture a greater share of this expanding market, the South African citrus trade recently clinched an historic sea-rail logistics deal which will see the nation’s geographic footprint step into the western US states for the first time this season.

To further boost fortunes, the Southern Hemisphere nation’s Orange River region will also launch its grapefruit on the US citrus market in 2010, as South Africa’s widening summer citrus offer gains increasing popularity.

In general, US consumers can expect to see an even more diverse spread of imported fruits and vegetables on supermarket shelves in the months ahead as Peru gears up to send its first (albeit small) volume of Hass avocados. The USDA also recently gave the green light to Chilean pomegranates and baby kiwifruit, among other items, which should arrive shortly.

As suppliers seek to sustain this consumer base look out for the plethora of marketing activities due to roll out across the US and Canada during the summer. South Africa and Australia are both coordinating citrus promotions, while Zespri has just announced a fresh marketing direction with plans to throw a spotlight on New Zealand kiwifruit via a mobile merchandising roadshow.
And with many consumers keen to get in shape during the summer, Del Monte’s new ‘Buy A Bunch. Lose A Bunch.’ campaign will be looking to boost banana sales among health-conscious shoppers across the US.

Gill McShane

If you want to create a buzz around your product and communicate with consumers in the 21st century you have to tap into the cyber world. It’s as simple as that. We’ve had the press, radio and television. Today’s technologically sophisticated consumers are looking for something more. Enter online social networking…

It seems the public has an overwhelming enthusiasm for web-based interaction. Wherever you go these days, people are blogging their opinion on Twitter, updating their status on Facebook, publishing photos on Flickr, uploading videos to YouTube, listening to music on MySpace, playing Xbox Live with gamers across the globe. Need I go on?

While I’m certainly no online junkie (frankly, I don’t know where people find the time to tweet their every movement), I am a big fan of the web – it’s the place I go to for information, where I do most of my shopping and the easiest way to keep up-to-date with my friends. And, yes, I’ll admit it, I quite like Facebook.

But whether you’re a light or heavy user, there’s no denying that the Internet and its social networking platforms is an invaluable way in which to upload your message and filter it among a maximum number of potential supporters – something, it seems, the produce business, particularly the fresh-cut sector, has noticed too.

In the last 12 months, there has been a wave of web-based innovation within the convenience sector, illustrated by our cover story. As companies seek out new and original ways of connecting with consumers and boosting their competitive edge, you might even venture to say that the fresh-cut industry is taking social media and web-based marketing to a new level.
Today, all of the big produce firms (and some of the not so prominent) have profiles on Twitter and Facebook. Many have also launched specialized websites with both educational and interactive features – from recipes, health guides and traceability tools to games, chat rooms, blogs, videos and photo sharing.

And the proof is in the pudding. For those firms who have built up relationships with online communities, their consumer-targeted messages are reportedly boosting sales. Even Barack Obama used Facebook to promote his presidential campaign. And, not to be outdone, Americafruit Magazine has a profile on Twitter too. In fact, I’ve just tweeted a sneak preview of this issue’s cover to our fans! So much for not succumbing to the technological age…

Gill McShane

You might be forgiven for thinking consumer demands are all this business is striving to satisfy, and, ultimately, I suppose they are. At the end of the day, the goal is to sell produce – at a good price and with the guarantee of repeat purchase.

But before those fruits and vegetables have the chance to reach consumers, they must first jump through a number of supply chain hoops. Just throw in calls for high yields, resistance to pest and disease, flavor and food safety and you’ll know what I mean about adhering to a myriad of requirements right the way from field to fork.

As our cover story illustrates, the seed industry is tackling head-on this challenge of juggling the ever-evolving and complex needs of growers, exporters, importers, retailers, foodservice providers and, of course, consumers, who are fundamentally fanning the flames of innovation in both fruit and vegetable seed development.

While still focusing on basic, must-have traits (like productivity and shelf-life), seed breeders are also helping to bring the highest quality and lowest priced products to the market by meeting demands from right across the board as well as all around the world.

It’s no surprise, therefore, to hear seed industry leaders talking about entering a “fascinating time”, particularly as newer influences such as climate change and environmental sustainability give the sector even more food for thought.

Research and development has always gone hand-in-hand with the evolution of the produce trade, and with technology today seemingly knowing no boundaries the seed industry has become impressively sophisticated, able to map the genetics of a given fruit or vegetable in order to shape varieties which are perfectly in sync with specific requirements.

Just take Monsanto’s new EverMild sweet onion for instance, which promises not to make consumers cry as much, and its Honeydew melon which changes color when ripe. Or, Nunhems’ Intense tomato, which doesn’t lose all of its juice when cut. Plus, Rijk Zwaan’s Caribbean cantaloupe melon range, developed with a brand-new set of genetics and designed to tick a whole range of supply chain boxes.

New varieties offer the produce business a fantastic opportunity to both tap into market demand as well as drive a particular segment or category. Who can forget how the extra sweet MD2 pineapple has revolutionized consumption of the fruit in the last decade (see p44). Whether practical or innovative, what is for sure is that the seed industry has many more tricks up its sleeve.

Gill McShane

Well folks, the time has come once again for reflection, new year’s resolutions and, perhaps most importantly, celebration! I think I say this nearly every December, but time really does seem to be flying by these days and after my first 12 months as editor of Americafruit Magazine I can honestly say I’ve never been busier.

And it seems the same applies to the produce industry. Flicking through past issues, it’s surprising to take stock of just how much has happened in the past year. With the recession dominating the headlines, it’s also easy to forget about all of the other positive developments that have taken place.

One thing that does stand out is the number of opportunities still open to the business. As the US Child Nutrition Act gains greater support, the trade has the potential to supply more fruits and vegetables for 31m school lunches every day. Across the generations, meanwhile, consumers say they are buying more produce as the health trend continues to bite. And it appears that even the higher prices of the organics and Fairtrade sectors are failing to put off shoppers.

As a result, imports are expanding steadily. In the last year, we’ve spoken with buyers in major sourcing hubs, including Texas, California, Miami, Nogales, Vancouver and Montreal, all of whom maintain that the trade is robust. Indeed, the USDA estimates that US fruit sourcing will reach 8.8m tons in 2009, up slightly from 8.67m tons in 2008, while vegetable arrivals are expected to remain stable at 4.6m tons.

And all this during a year when topsy-turvy weather conditions, particularly in South America, have shaved volume expectations and key country suppliers, like Mexico, Chile and Peru, have increasingly diversified their export markets to new horizons. On the otherhand, one has to remember that during 2009 we’ve seen the arrival for the first time of Chilean navels and grapefruit, Taiwanese longans, Vietnamese dragonfruit, and, in the not too distant future, Peruvian avocados, Argentinean lemons, Uruguayan citrus and Philippine bananas may also reach North American shores.

With reforms to the US food safety system just around the corner, plus climate change and corporate social responsibility playing an increasingly larger role, the next 12 months are set to be as challenging as ever. But in recognising the resilience that the produce industry has shown over the last year and suppliers’ willingness to adapt and innovate, one can bet that 2010 will be as successful as ever. So raise your glasses to toast a Happy New Year!

Gill McShane

As the global produce business prepares to journey to the largest US gathering of the fresh fruit, vegetable and floral industries and with the Produce Marketing Association (PMA) marking its 60-year anniversary in 2009, it seems appropriate in the October/November issue of Americafruit Magazine to look back at the substantial growth of the US import trade in the last few decades.

Traditionally a major supplier of fresh produce, the US has become a significant importer in the years since PMA was founded on the back of rising consumer income, growing demand for year-round availability, global trade agreements and advancements in technology.

Indeed, fresh fruit and vegetable imports into the US more than doubled in value between 1994 and 2004 to US$12.7bn, according to the US Department of Agriculture (USDA), compared with exports of US$9.7bn.

As a result, US consumers are eating more imported fresh produce (as well as canned, frozen and juice) than ever before. On average, each American consumed 31lbs of imported fresh vegetables and 20lbs of imported fresh fruit in 2007 – twice as much as in 1993, according to consumer advocacy group Food & Water Watch.

Out of the 50 commonly eaten and produced fruit and vegetable products in the US, around one fifth of fresh fruit (22.3 per cent) and fresh vegetables (23.9 per cent) were imported in 2007, Food & Water Watch said. In total, 40bn lbs of produce entered the US in 2007.

Geographical proximity and low or zero tariffs mean the North American Free Trade Agreement region, the Southern Hemisphere and Latin American banana-producing countries are among the key sources for fresh fruit and vegetable imports into the US.

Bananas, table grapes and tropicals are the major fruit imports, according to the USDA, with bananas still representing the number one fresh fruit consumed in the US. Imports of tropicals are also growing rapidly, driven by successful marketing initiatives for pineapples, mangoes and papayas. In the fresh vegetable category, meanwhile, tomatoes, peppers and cucumbers continue to rank as the main imported products.

With organizations remaining committed to driving consumption, the industry can once again expect great business opportunities at the 60th PMA Fresh Summit in Anaheim, California, on 2-5 October. And while you’re there, you may wish to drop by Booth 1524 to toast my one-year anniversary at the helm of Americafruit Magazine!