Gill McShane

For many of us, growing up, studying and settling in the same town or even country is very much a lifestyle of the past. Thanks to fantastic travel connections and sophisticated communication systems, the world has become a much smaller, accessible place in which to live. As for the fresh produce business, globalization has not only influenced demand but facilitated the movement of trade between nations.

North America in particular has a long tradition of ethnic diversity. Migrants throughout the US and Canada continue to demand a diverse range of fruits and vegetables procured from around the world. As a result, many products have lost their seasonality while some niche items have filtered into the mainstream. And, all of this, of course, has been possible with improved transport links and wider market access.

Today, we might breakfast on an Ecuadorean banana, lunch on salad items trucked from Mexico, snack on kiwifruit grown in Italy and enjoy a desert of exotic fruits sourced from across Asia. Globalization and immigration have allowed for exceptional variety in the fresh produce department, and it is getting wider still. As our cover story illustrates, in May the US granted access to Chilean oranges and grapefruit (p12 of this month's Americafruit Magazine) and further deals with other nations remain in the pipeline.

However, after a spate of food safety scares and the emergence of the food miles debate, consumers are increasingly concerned about the provenance of their food, especially imports. As a result, many are turning to locally-grown items, which they consider to be safer and healthier. In 2007 alone, local or regional sales by farmers to household consumers in the US rose 49 per cent to US$1.2bn, according to a USDA census. Although the locavore sector only represented a fraction of the overall US$300bn in farm sales in the US, the growth in its popularity is nonetheless one to bear in mind.

The application of a thorough and trustworthy food safety system in the US is now more vital than ever to rebuild consumer confidence and ensure the door remains open to fruits and vegetables from across the world. And with US Congress poised to pass a comprehensive reform of food safety laws in the US (p5&9 of this month's Americafruit Magazine), it appears we may finally be on the right track.

Let’s not pretend it’s going to be easy for our industry, but modernizing the system will pave the way for restored and even greater public trust in produce. So, long may we enjoy an extensive variety of globally-sourced fresh fruits and vegetables throughout the year.

Gill McShane

Grab your business cards and pack some comfy shoes because it’s showtime in North America! During April and May two of the biggest conventions in the US and Canada roll into town and expectations are running high. Once again, Las Vegas hosts the United Fresh Produce Association’s annual exhibition and conference event, while, across the border, the Canadian Produce Marketing Association (CPMA) takes its 2009 expo to Toronto.

Although exhausting, no-one can deny the significance of trade shows. A platform for networking and marketing, the format offers an unrivalled opportunity to meet face-to-face with key representatives in the business – from produce exporters and importers to technology and logistics providers – all under one roof.

With the world in the midst of a recession, it’s never been more important to promote your company and forge relationships with both new and existing clients. Indeed, the show must go on. Just as fruit and vegetable consumption is predicted to stay constant during the economic downturn as long as produce remains accessible, small to large industry players need to be visible to secure the longevity of their business and the produce trade as a whole.

Now is the time to really get to grips with the trade; discover what’s on offer out there; understand exactly what your customers and consumers need and secure programs for the year ahead.

In this month's issue of Americafruit Magazine, our event previews feature a wide selection of firms set to attend United Fresh 2009 and CPMA 2009. Interestingly, a number of those interviewed are participating for the very first time, alongside the usual suspects. Moreover, this year organizers expect exhibitor and visitor numbers to remain stable, with CPMA even anticipating its biggest-ever show. During a period when we’re all cutting back on the non-essentials, it just goes to show the value our industry places on events like these.

It’s all too easy to get swept up in the digital age but you can’t beat a handshake and real-life conversation. With their variety of social and business networking opportunities, United Fresh 2009 and CPMA 2009 promise to be crowd pleasers. What’s more, Las Vegas and Toronto are two of the world’s most cosmopolitan and interesting cities to visit, so go, have fun and connect with your produce friends!

Gill McShane

After months of negative press surrounding the credit crunch, it's a welcome relief to see the produce sector taking a positive and proactive approach. Rather than dwelling on the difficulties, almost all of the companies interviewed recently by Americafruit Magazine are tackling the slowing economy with strategic and innovative commitment.

Admittedly, sales could take a knock this year and growth, if any, will be modest, but as long as the industry keeps fruits and vegetables fresh in consumers minds, suppliers and buyers recognise there are opportunities to continue building on recent years of strong performance and strengthen the business for the future.

Mexico is just one hotbed for expansion, with the potential to both absorb more fruits and vegetables (to satisfy its increasingly health-conscious demographic), as well as widen its own export presence worldwide on the back of a growing offer of top quality and food safe produce.

Guatemala is another supply force on the up, where growers and shippers are confident they can weather the economic storm, and agricultural export volume is already well on its way to doubling by 2011, following last year’s double-digit growth.

Of course, it’s this long-term outlook that’s important to remember, which is why it’s great to see traders digging in their heels by adapting to the current realities.

A number of companies set to attend Mexico's leading food trade show Expo Antad in March say this year they are pushing to maintain sales momentum by increasing consumer and trade promotion efforts, including re-focusing marketing initiatives with more purchasing incentives to reflect the rise in price-driven shoppers. The Mexican government has also revealed its plans to invest US$200,000 to promote quality-certified produce among US consumers.

When all’s said and done, the produce trade has much to feel positive about. Recession or not, we all have to eat and, fortunately, fruits and vegetables continue to dominate the healthy eating drive. These are testing times but also transitory. On the whole, the feeling is optimistic – if not for the next 12 months, then the future in general.

Gill McShane

The historic election of Senator Barack Obama as the 44th US President will no doubt bring much anticipated change to the US during the course of 2009. This, coupled with the topsy-turvy nature of the world’s financial market, means the outlook for the trading scene in the Americas is unclear at best.

The change in leadership will significantly alter the public policy landscape in the US and the impact on trade is an important one. Already, some Latin American countries have expressed a desire to strengthen free trade ties – a call reportedly supported by Obama’s transition team – with foreign leaders urging the US to end its 48-year trade embargo on Cuba.

While perhaps more a sign of the troubling economic times – supply nations will not want to deepen the crisis by turning inward – some sources in Washington DC claim the Obama team may indeed foster closer trade relations.

In the meantime, the incoming Administration is considering a series of initiatives to tackle the financial crisis, including injecting more capital into banks, creating a market for illiquid assets and helping borrowers who are struggling to make mortgage payments.

The news will come as a welcome relief to fresh produce suppliers. As seen in the December 2008/January 2009 issue of Americafruit Magazine, the industry has been quick to voice its opinions on the extent to which the credit crunch will affect demand for fruits and vegetables, but, on the whole, most in the sector remain positive.

According to PMA data, 72 per cent of US consumers are cooking at home and 67 per cent are buying less luxury food, while 32 per cent are shopping down to lower priced retailers or local stores. But, despite tightening their belts, they are still eating fresh fruits and vegetables.

Together with the recent strengthening of the dollar, the outlook has buoyed many exporters’ expectations for 2008/09. And, with uncertain trading conditions in Europe likely to deter many from diverting fruit to the UK, Europe and Russia – like last year – North American importers anticipate a return to traditional volumes.

As the pendulum swings back in favor of the dollar, exporters of Chilean grapes, Peruvian mangoes, Brazilian papayas and Italian kiwifruit, to mention a few, have revealed to Americafruit Magazine how they plan to ramp up exports to North America this season.

Maura Maxwell

After six years of legal wrangling, country of origin labelling rules (COOL) came into force on 30 September. Although the new laws give retailers six months to label fresh fruits and vegetables and other perishable items, some are already on board. According to the New York Times, Wal-Mart planned to have many of the labels in place by the first week of October, if not soon thereafter. And a Kroger spokeswoman said the company expected to introduce the labels in the coming weeks as store employees and suppliers became familiar with the new law.

So what will the new laws mean for consumers? The greatest advantage of COOL is that it enables them to know exactly where their food comes from. This allows consumers to support domestic farmers, and helps them choose products that haven't been shipped thousands of miles across the world if they so wish. It also gives the public the option of shunning produce from particular countries that have been associated with health and safety scares. Consumers have a right to know where their food comes from and there's no doubt that providing them with as much information as possible helps them to make informed decisions about what to buy. The average American now consumes an estimated 260lbs of imported food every year, which is roughly 13 per cent of their diet.

The public is overwhelmingly in favor of the rule – a Consumer Reports survey last year found that 92 per cent of Americans agree imported foods should be labeled by their country of origin. Indeed, some consumer groups complain that the rules don't go far enough since the definition of what constitutes processed foods – which are exempt – is too broad. Mixed leaf salad bags or frozen mixed packs of carrots and peas, for example, do not have to be labelled.

Some, however, fear that COOL is no more than a thinly disguised trade barrier intended to increase importers' costs and create an unfounded perception that imports are inherently less safe than domestically-grown produce. And then there's the cost: the US Department of Agriculture estimates that it will cost US$2.5bn to implement the law.

On balance, COOL is a positive development for the fruit and vegetable industry, if nothing else because anything that improves record keeping – especially in light of recent food scares – has to be a welcome measure.

On a separate note, the October/November issue my last issue at the helm of Americafruit Magazine. My colleague Gill McShane, who takes over as the new editor, is eager to get stuck into her first issue and has bags of ideas on how to improve the magazine. Gill is a highly esteemed colleague at Market Intelligence with many years' experience in the fresh produce trade and I'm sure our readers will want to drop by our booth (3309) at the PMA Fresh Summit in Orlando to extend a warm welcome to her.