crop shortages must be on the mind of every category manager and wholesaler, reflecting that regardless of the marketing structures and programmes in place, the fresh produce industry is still subject to the fundamental principles of supply and demand.
The difference at present is that, despite the latest cultivation techniques, widely varying weather conditions across the world have affected major sources of supply, across a huge range of commodities - encompassing tropical, deciduous and citrus fruit, as well as European winter vegetables and salads. The wide range of commodities that have been affected simultaneously has therefore exacerbated the situation.
While the impact may be relatively short term as the seasons change, this experience will undoubtedly speed up the evolution apparent in the UK, as each sector seeks to minimise future risks and maximise vital profits.
This is no longer simply for pecuniary benefits, but to ensure there is enough cash in the till to invest in new packhouses, seek out and develop new products in countries which were once unheard of in the supply calendar, or upgrade the lines which have stood them in good stead over the years. All this simply to remain in the race.
Buyers, importers, exporters, and growers are all joined by a common thread - namely, to retain a level of profitability.
The key element for all of them is, of course, price, which normally offers some compensation when volumes are tight.
But because the supermarket trade has sought to stabilise trading structures over a long period of time, using forward programming and long-term contracts geared to an unchanging retail ticket, trading opportunities today are far more limited.
If proof were needed, there are plenty of examples of independent retailers actually sourcing their requirements from the retail counters of their larger cousins, or trying to buy directly over the farmgate to remain competitive. The latter is a concept which has attracted the multiples for many years, although so far there is little evidence that they have been prepared to go the whole hog, perhaps because of perceived risks - although this too may be changing.
Category managers have grown up to fulfil this risk-taking role, although because there are fewer and fewer highly competitive customers, many have virtually lost their independence. To lose a major account borders on catastrophe these days, if it is not fatal, and it takes even stronger management to take the decision to pull away, as reported by Del Monte in FPJ two weeks ago. Meanwhile, the happier alternative of breaking into a new customer base is becoming more of a rarity.
The role of category managers in the future is being rapidly transformed, hastened by the current situation, and could mean that they will become even more integrated and ultimately - because of their expertise or direct involvement with production - even more specific, solely looking after a single customer.
The other alternative, of course, is for them to start looking at the wholesale markets in a new light, as many must be doing in the present conditions.
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