It has been said that there is no such thing as an average year in the fresh produce industry but, for the US sector, the last 12 months have thrown up more hurdles than most. But the challenges faced across the Atlantic are parallel to those faced in the UK and, all over the world, the trade has had to draw on all its skills navigate through the issues.
So what can the US and UK industries learn from each other?
Lorna Christie, senior vice-president at the Produce Marketing Association (PMA), says the US industry has squared up to the challenges it has faced. “It has been a year of extremes for the US produce industry, from weather-related problems such as the freeze in California and heavy rain in Texas, to the shortfall of bees to pollinate crops, to the struggle to find labour - it has been tough,” she says. “But the challenge is the same as it is for any other business - proper planning and execution. The fresh produce industry is resilient because we know what can happen, and we can prepare accordingly.
“We still believe we are supplying the world with the best possible fruit and vegetables.”
Food safety is top of the agenda for the US fresh produce sector following the fatal outbreak of E.coli that hit the spinach category last autumn, leaving three dead and 200 ill, and forcing the US produce industry to learn to some lessons the hard way.
It is estimated that the incident cost the industry up to $150 million (£74.5m), with spinach sales virtually collapsing overnight, and the rest of the salad bowl taking a hit. “The impact on the industry was devastating,” Christie says. “US producers, in the leafy greens sector in particular, are still reporting flat sales and consumer confidence has not yet been restored.”
The incident cranked up public sensitivity to food scares to unprecedented levels. “US consumers are highly sensitive to product safety, and this has been heightened by the number of scares that have made the news - not just related to food, but to a whole host of products, including the recent toy scare in China,” says Christie.
A recent US survey showed that some 90 per cent of consumers have fears over food safety but, of those questioned, most cannot explain why they are concerned, according to Christie. But she puts the hyper-awareness down to the influence of the media. “We need to tell a better story about who we are and what we do to provide safe produce,” she says.
The US produce industry has responded to the threat of food scares on a scientific level and enhanced its systems to minimise the possibility of a repeat outbreak. New safety standards approved by the state department of agriculture were launched in July, and 99 per cent of the companies packing leafy greens in California have signed up to the scheme. A state-certified stamp of approval will show consumers if spinach, lettuce and other greens meet the new standards.
The creation of the Center for Produce Safety at the University of California Davis (UC Davis), part-funded by PMA, stands as an international food safety initiative that will fund new studies and ongoing training, as well as consolidate existing research on food safety. The public-private partnership is a collaborative effort between the industry, government, academia and consumer groups to enhance the safety of fresh produce through research, information exchange and training worldwide.
“We need to get the science right,” says Christie. “We are talking about results-driven, business-focused research, so that people can identify the causes and effects of food-safety scares.
“We want to make it very clear that we have a whatever-it-takes attitude when it comes to government regulations.”
But the food-safety issue is not exclusive to the States and, on a global scale, the fresh produce industry is making moves to improve its offer and safeguard supplies.
Gordon Smith, international marketing manager at the California Tree Fruit Agreement, stresses that the proactive attitude towards food safety in the US has worked towards restoring consumer trust. “The food safety issue is not limited to the US, but instead is a priority for all fresh produce industry members throughout the world who want to participate in the global food supply chain,” he says. “There is more confidence in US product today, based on the transparency of US food production inspections and the proactive nature of US farm practices to provide a safe and healthy product.”
But food safety is not the only issue to weigh down on the US industry over the last 12 months, and concerns about pests and disease, returns for growers, access to labour, and environmental issues - all seen in the UK - have also posed challenges across the Atlantic.
A shortfall in labour has proven a major concern for US producers this year and, just as in the UK, the lack of access to migrant workers has struck a blow to the industry.
The agJOBS bill, which was generally supported across the fresh produce industry, failed to pass this summer. The proposals included a two-step programme under which undocumented farm workers in the US may gain temporary resident immigration status, and then earn permanent resident immigration status upon completing additional employment in US agriculture during the next three to five years, as well as revisions to the agricultural guest worker programme, which allows agricultural employers to employ foreign workers on temporary non-immigrant visas, based on claims of labour shortages.
“We literally have produce rotting in the fields because, in some areas, there is no one to pick it - it is a critical issue,” says Christie. “We are working with the government to get access to labour, and get people who want to work in the field. But we have to get all the members of the supply chain to understand the situation.”
The obstacles that face the US industry stretch right through the supply chain, from production to the transportation of product to overseas markets.
The US citrus sector has spent the last 12 months working to fight off the devastating grip of disease. The rise of canker and greening is the top concern for Florida producers, says Mike Yetter, director of international marketing at the Florida Department of Citrus. “Canker was discovered ten or 15 years ago, and we still fight this on a daily basis,” he says. “Greening came up two years ago, but it is worse than canker and gets into the vascular system of the tree.”
The situation needs to be addressed or it will affect the crop in the long term, according to Yetter, with a potential loss of five to 10 per cent over the next five to 10 years. “We are trying to plant new trees, but this could still strike a devastating blow to the industry,” he adds.
The Florida Department of Citrus has secured several million dollars of state and federal funds to help fight the diseases, and research is already underway. “The government has stepped up to the plate and has recognised the issue,” says Yetter. From January 1, all nursery stocks will have to be enclosed to protect them from the spread of disease.
But the sector is on the road to recovery following the impact of the four hurricanes that hit the state in the space of two years, which decimated the Florida crop. Grapefruit production jumped 40 per cent this year to 27 million boxes, up from 19.3m boxes last year, and 12.8m in the 2004-05 season. “We had a good rebound in volumes last year,” says Yetter. But there is still some way to go before output matches pre-hurricane levels, of 41m boxes.
However, shipments to Europe and to the UK more than doubled last season. “It was an outstanding year in terms of exports, and Florida growers have been very pleased,” says Yetter. “The fact that we have more than doubled exports is indicative of the strength of the product.”
The logistics of moving fruit across the Atlantic can pose challenges for US exporters, and the cost of transport on both sea and air is always on the up.
The transatlantic route from the US to the UK is well established and, as such, no longer poses serious obstacles to the fresh produce trade, Yetter insists. “We ship product all over the world, and Europe and the UK are relatively close in comparison to other markets, such as the Far East,” he says.
But the timeframe needed for product to cross the pond means that planning is needed on both sides to ensure supply meets demand, says Jeff Correa, international marketing director at Pear Bureau Northwest. “It takes 25 days to ship pears from the West Coast to Europe, and this presents us with a planning challenge,” he says. “The retailers need to plan 30 days or so out to make sure product arrives on the shelves at the right time and, if sales are brisk, sometimes there are sales gaps. UK retailers tend not to over-order, so that product is fresh and does not go to waste, and it can be difficult to compete with the three to five days to market from European sources.”
Exports from the States to the UK have continued to grow but, with a massive internal market, why does the UK stand as an attractive destination for US exporters?
Producers in the States are not phased by the strict specifications that characterise the UK market, and Christie is adamant that US growers are capable of meeting any requirements laid down by UK customers.
“UK retailers are the most progressive and innovative in the world, and California growers of peaches, plums and nectarines have undertaken the significant investment required to ship to the UK, based on a practical assessment that the long-term returns will balance out,” says Smith. “The UK is a very attractive market for California peach, plum and nectarine producers because UK consumers are incredibly discerning with their food budget, and they recognise the range of varieties and quality available only from California.
“US peach, plum and nectarine exporters are looking to expand their share of the imported stonefruit category in the UK, because UK importers and retailers are willing to pay premium prices for premium fruit, because that is what their customers expect. This is precisely the type of buyer California shippers and exporters want to do business with,” he adds.
The exchange rate this year has made for a major plus point for US exporters to the UK, giving their prices a competitive edge and attracting buyers. “This year, the strength of the pound and the euro will help us, and this means US growers can price their crop so that it is both good value for them and for the consumer,” says Yetter. But the US industry must remind UK buyers of their advantage, Correa adds.
The last 12 months have seen the rise of new opportunities for the US fresh produce industry, with a number of trends that are now well established in the UK taking off in the States. The twin issues of sustainability and local sourcing have leapt across the pond and made their mark in the US in the last few months and, according to Christie, this trend will continue to develop, just as it has done in the UK.
The “locavore” concept - relating to consumers who choose to eat food that has been sourced locally and that has racked up fewer food miles - has been billed as the next big thing to hit the US produce industry.
The concept has made its presence felt on a retail level and, according to Christie, a recent survey has shown that 87 per cent of chefs consider local and sustainable produce as a “hot” trend, while the number of farmers’ markets across the US has doubled since 2006.
“I was in the UK in May telling people that the local concept was not a hot issue in the States, but between then and now, it has really taken off and the sector has started to look behind the trend,” says Christie. “We are working with our members to make sure they understand what consumers want and how they can respond, because consumers want to be reconnected with their food and want to know where it comes from.”
But the Stateside sector is aware that the issue of sustainability can be a thorny one, especially if heated debate in the UK over food miles and carbon emissions - under the umbrella of the fresh produce footprint - versus fair miles, is anything to go by. “It is an unbelievably complex and passionate discussion, closely connected to personal values, and the US industry is paying close attention to all the arguments,” says Christie. “But it is for the marketplace to decide.”
The industry should strive to find the “sweet spot” between flavour, health and wellness and convenience in order to satisfy consumer needs to the best of their ability, Christie insists, and this must take into consideration the issues of sustainability and the local concept. “The supplier needs to find the place in the middle of all these issues,” she says. “For now, we are learning how to do a better job in production and a better job in communication.”
Christie is adamant that the outlook for the US industry is bright. “Our future is determined by our ability to adapt and connect with consumers,” she says. “We are listening more and responding faster. The variety of the product we offer is just never-ending. The opportunities in this industry are absolutely limitless.”
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