The fresh produce world has shared the experience of the COVID-19 pandemic, and those experiences and lessons learned were shared at the Produce Marketing Association’s virtual Fresh Summit.
In an Oct. 13 session called “Around the World in Fresh Produce: An Update on International Challenges and Opportunities,” trade leaders from Europe and South America shared their experiences.
Drought and “protectionism” in export markets are two big concerns for Chilean growers, said Nicolás Moller Opazo, executive vice president of berry company Hortifruit S.A. environmental challenges in the next decade, produce companies must step up their commitment and investment in sustainable production, he said.
Consumers in Spain and Europe have been developing healthy consumption habits, leading to greater sales of fruits and vegetables at retail, said Fernando Gomez, general manager of Proexport, an association of producers and exporters in the Murcia region of Spain.
A continuing economic crisis could force consumers to cut food budgets, which could put pressure on commodity prices and push retailers to run more aggressive promotions.
Online grocery spending continues to grow in Spain and Europe, he said, and restaurants are increasing their success with online orders, Gomez said.
“We will see the consumption of fresh-cut and ready-to-eat product grow again, although little by little, due to the progressive return (of employees) to offices,” he said. “In Spain, there is a recovery in activity in the foodservice channel that is beginning to be seen, but it’s still very slow.”
A rising European consumer trend, Gomez said, is the preference for local food.
Basic foods are in demand, while “non-basic” or specialty foods are seeing smaller sales, he said.
“Vegetables in general have been one of the products that has benefited the most from (COVID-19) health crisis,” Gomez said. “Some of these trends may be fleeting, but others may remain for a long time.”
Gomez gave recommendations to growers seeking to meet consumer demand:
- Keep excelling at providing quality, availability, food safety and service;
- Keep costs low and profitability high while defending the value of the products:
- Focus on producing good quality produce in line with consumer demand;
- Establish long-term relationships with buyers, a “win-win” strategy for retailers and growers; and
- Diversify sources of supply.
