Fruits and vegetables are available in abundance right now.
Yes, on one hand, this is exactly what consumers are entitled to expect this time of year. After all, it is spring.
On the other hand, there are a couple of subtle differences which set this spring apart from the ones we have had in recent years.
Firstly, we have not had extraordinary weather events of any major kind this year. This means growers were able to plan their crops, get them into the ground, as far as vegetables were concerned, and suffered no major setbacks in the flowering and fruit setting periods our fruit sector needs to work through to ensure a decent crop.
Secondly, many of our crops are maturing earlier than usual this year. Amongst these are cherries, sweetcorn and blueberries, and just about the whole range of what fresh vegetable growers have to offer.
As I said in my introduction: abundance.
Abundance makes for happy consumers and there has indeed been no noise of late from concerned consumer advocates about produce prices being too high.
But the core principles of double entry bookkeeping suggest that for every happy consumer there is likely to be an unhappy grower, as there is a direct link between attractive retail prices and what growers are paid for the “fruits of their labour”.
And indeed, growers are not jumping with joy right now and consider the prices received as less than desirable, to put it politely.
So, if we look at the issue strategically for a moment, can we conclude that in time of abundance, we can expect happy consumers and less than happy growers, and in times of shortages, less than happy consumers and happy growers?
Well, not quite. Shortages come with hardships for growers and an above-average price achieved for what could be salvaged from an originally much larger crop impacted by torrential rain when that was not needed, is by no means compensation for the extra efforts needed to get to the point where the reduced volumes could be sold.
This oversimplified analysis did not include three other key factors that play a role regardless of whether we are enjoying abundance or suffering short supply for whatever reason.
These factors are:
- the role produce retailers play in our market economy and the influence they exercise.
- the function produce wholesalers have within a produce supply chain that is increasing in complexity.
- the degree to which consumers actually understand what it takes to grow a multitude of crops to ensure fresh fruit and vegetables are able to form a predictable and consistent part of our daily diets.
Our industry is also impacted by four meta topics. The first three being the
- increasing appreciation for the need to assure our population’s food security and the role we play within that equation.
- the fact that despite the increasing level of sophistication of our industry that involves agri-robotics, innovative packaging solutions, brand development and marketing campaigns that more and more mirror those conducted by shelf stable FMCG product categories, fruits and vegetable are ultimately commodities.
- the home truth that within the economic environment governing commodities, the impact of price on the fluctuation between supply and demand will always be felt sharper than within manufactured product categories.
And then there is Climate Change, as the overarching topic that has entire industries, and not just ours, identifying associated risks, attempting mitigation wherever possible and developing strategies for the future.
So, what should our activities as an industry include, in support of the daily, weekly, monthly and seasonal trading processes that will occur as long as fresh produce is grown and consumed?
I suggest there are four areas in which we need to strengthen our efforts:
- The generation and gathering of accurate data that allows robust and reliable analysis which in turn supports informed decision making along the entire fresh produce supply chain.
- The introduction of a national grade standard system for domestic produce to aid differentiated wholesale and retail pricing.
- A strengthened effort to connect with consumers about the critical role of a secure, diverse and reliable supply of fruit and vegetables available 365 days of the year, and the role the entire fresh produce supply chain plays to ensure we continue to meet this fundamental goal.
- A more targeted and innovative strategy aimed at improving our elected representatives’ knowledge of, and appreciation for, the efforts on fresh produce industry undertakes seven days a week, 52 weeks of the year, in feeding our nation. Where regulation is inappropriate, it should not be applied. Where regulation is applied, it needs to make sense.
The fresh produce industry needs to become more inclusive, more sustainable and more prepared to challenge arising and/or proposed changes and behaviours that ultimate weaken our ability to deliver what we do best as an industry supply chain.
That is to provide our country and our people with affordable fresh fruits and vegetables for the next hundred years and beyond.
And a last thought…
Successful export market development is ultimately built upon domestic market presence and competence. Heading for the skies to create and consolidate emerging export revenue opportunities, always requires a solid domestic underbelly, and the fresh produce industry is no exception.
With that I wish everyone a Merry Christmas and a Happy New Year!
Kind regards
Hans Maurer
Disclosure:
Dr Hans Maurer is:
- Director Strategy & Research, The AgriChain Centre
- Executive Committee Member, United Fresh New Zealand Inc.
- Chair, Information & Standardisation Committee, International Federation for Produce Standards (IFPS)
- Editor, Fresh Facts
- Chartered Member, New Zealand Institute of Directors
- Professional Member, Royal Society Te Apārangi
- IFPS Global Liaison to ISO Technical Committee 347 – Data-driven agrifood systems
And has been:
- Nurseryman & orchardist
- Employment Officer, NZ Employment & Vocational Guidance Service
- Head of Produce, Foodtown, 3 Guys, Countdown (1989-1998)
- Marketing Manager, Strategic Projects, Progressive Enterprises
- Board Chair, IFPS