PUMPING LIFE INTO PRODUCE PULSE AGAIN

Only 1 in 5 oppose national produce promotion order

Even in a recessionary economy, those in the fresh produce industry realize they have to spend money to make money. In fact, 80% of 124 respondents to The Packer's May Produce Pulse poll said they’re either in favor of a proposed national fresh fruit and vegetable promotion order or are for it, under certain circumstances.

While 36% of survey respondents said they’re fully in favor of a national promotion order and another 44% said they’re conditionally for it, the 20% against it appeared most adamant about their feelings, mostly disagreeing with the project’s timing.

“It costs me money, (with a) dubious return,” one grower-shipper wrote when asked how the proposed plan would affect his business.

Another also questioned increased cost “with no way to truly measure the ROI (return on investment).”

“It would be another tax on producers who can little afford it, so it had better have clearly defined goals with measurable results,” another cautioned.

Some who expressed dissent admitted they’re opposed for selfish reasons, stating they don’t think the order would benefit their particular businesses.

“More fees and as usual, little help in promoting value-added product that we have developed,” one said.

Others feared the program would not be on a grand enough scale to do much good, while others felt if the current system ain’t broke, don’t fix it.

“They are going in the wrong direction … To be effective, it needs more money than they can assess a grower,” one participant said.

Another responded, “We currently have a successful, active, local marketing order. I am not sure what a national promotion order might contribute.”

“Our state already has an effective marketing campaign on behalf of produce,” one respondent working in allied produce said. “The state effort is much more focused to our products, as opposed to a national order that would dilute our message.”

Retailers, wholesalers, distributors and others in allied fields also expressed concern, although a higher percentage of they were less polarized against it.

“Our department seems to be in a deflationary cycle. I’m not sure the national fruit and vegetable promotion order can help that,” one retailer said.

“While the ideals (of generic promotions) are worthwhile and benefit the entire industry, the timing may not be appropriate,” one wholesaler wrote. “With growers, shippers and retailers struggling with margins and sales, this may be a difficult sell.”

“We’d need something with a plan for longevity, realizing it will take some time to build the right program,” one produce distributor responded.

Still, the national promotion order and the Produce for Better Health’s attributes received plenty of support from those in the fresh produce industry who responded to the survey, with many saying a national order and generic marketing campaigns are at least a step in the right direction.

“I favor it, but am afraid small, special interest groups can kill the deal,” one grower-shipper said. “I’ve seen generic programs get derailed by those who don’t feel they’ll get sufficient representation for their particular products.”

“PBH can’t do (what it needs to do) with the small budget it has,” one retailer said. “If we don’t put together a promotion board, we will always be second or third to the other industries (such as meat and dairy).”

In response to multiple-choice questions about the proposed national order and PBH’s effectiveness, results proved a mixed bag.

While no respondents said PBH had a negative effect on the industry, 17% said PBH had no application to their business and 31% said PBH had little effect on improving business conditions. About 14% said PBH has been a great help and 39% said PBH has helped somewhat.

No clear majority opinion emerged, either, on how industry officials should proceed with assessments. Respondents couldn’t agree whether or not f.o.b. prices should be used as the basis for an assessment, or decide how board members should be appointed, when given these choices: by region (40%), by market sector (36%), by commodity (36%), or by value of overall crop assessments (8%).

Then again, reaching any agreement in the fresh produce industry can be difficult, one grower-shipper said.

“Unfortunately, from my personal experience with the Washington Apple Commission fiasco and all the venom that transpired, it will be like herding cats, and a real source of contention among the partipants. Tread carefully.”

E-mail dgalbraith@thepacker.com.