The fresh produce industry must gear itself up for making the most of the opportunities opened up by the global economic crisis, the trade has been warned.
A string of forums revealing the macro and micro view of the downturn and how to deal with the situation proved popular at Fresh Summit.
Kevin Coupe, founder and ‘content guy’ of MorningNewsBeat.com, insisted that the fresh produce trade will be able to turn the “rollercoaster ride” of the last 12 months into the “ride of its life”.
He said: “If you do the right things when the situation is tough, it positions you in the best place when things get better. This could be a wonderful time if you things right…
“If you play the game correctly and you plan the fundamentals, it does not matter what the economy does.”
Coupe claimed the key is to focus on value. He said: “For a business that is believed to be recession-proof, it has been a tough year. We are not going to see another year like this for a long time, I hope…
“Consumers are focusing on money because they have less of it than they use to, but value goes beyond low costs. You should not get away from your foundation values because when we get out of this, your business will crumble. You have to maintain momentum and balance.”
PMA research shows that 51 per cent of consumers say higher food prices are having an “extremely serious” impact on their shopping habits. If the price of fresh produce goes up by 10 cents per lb, some 70 per cent of shoppers will to buy it. But if the price goes up by 50 cents, only 20 per cent of shoppers will remain loyal, while if the price increases by $1, only seven per cent of consumers will continue to buy it.
Coupe urged the trade to think about what the next generation of consumers will want. He said: “The companies that are doing a good job are thinking strategically and not tactically…
“Retail is a completely linear experience, but the next generation has changed the rules of acquisition and want to be engaged in different sorts of ways.”
The wider impact of the global economic crisis was also up for discussion.
Jeffery Rosensweig, from the Global Perspectives Program at Emory University, singled out China, Russia, India, Brazil, Mexico and Turkey as up and coming countries in the import and export trade.
He said Brazil, in particular - with more farming land than in the whole of Europe and a population of 200 million - is the one to watch.
He warned that low-cost exports from the likes of Brazil, Chile and Mexico will become more popular as their currencies decline in value.
Rosensweig said: “The long-term vision would make me feel good if I was in fresh produce. Ultimately, the population is growing and there will be more people in the world with more spending power. They will be able to purchase in a true market.”
No comments yet