Slow recovery will begin in 2021, PMA Virtual Town Hall panel believes
The COVID-19 pandemic is yesterday’s news. Unfortunately, it also is the reality today and for many tomorrows, according to panelists at the Dec. 16 Produce Marketing Association’s Virtual Town Hall.
Moderated by PMA CEO Cathy Burns, the event featured Bruce Taylor, CEO of Salinas, Calif.-based Taylor Fresh Foods and John Anderson, CEO of The Oppenheimer Group, Vancouver, B.C.
The approval of vaccines to prevent the COVID-19 is good news, but the panelists said there are still plenty of uncertainties in the next year.
Rear view
Though Burns said that many PMA members have told her that they are “really done’ looking in the rearview mirror, the session started with a quick look at the adjustments the industry made during the pandemic.
Taylor and Anderson credited their employees for helping the organizations adapt quickly to the challenges that COVID-19 has brought.
“We have 16 operating companies and every one of them responded to different challenges in a consistent way, but with the same goal of taking care of our people and taking care of the customers,” Taylor said. “That was really gratifying.”
Taylor said empowering employees to solve problems and make decisions is important.
Anderson said it is not the smartest companies that survive the longest, but rather the companies that are the most adaptable. He said one of the ways Oppy is adapting to COVID-19 challenges is looking for as much automation as possible to save labor.
Consumer perspective
Asked by Burns what they thought about consumer perceptions of fresh produce and the industry now, the panelists had different perspectives, with Anderson more optimistic than Taylor.
“I think we’re now looked at from more of a health perspective than I think we might have been before,” Anderson said. “People are eating at home a lot more often and realizing that a lot of the products that we sell are good and healthy for them,
“My opinion is our consumption is on an upward trend, and I think that our image of our industry is more positive as a result of COVID,” Anderson said.
Taylor said he is a little concerned that the industry’s products are viewed by consumers as a luxury.
“The first thing on (the shopper’s) list was toilet paper, then it was paper towels, and it was Clorox, then it was the frozen food aisle, and then it was in the center of the store to stock up on things that they could go into their bunker with,” he said. “And we were the last thing.”
While that hoarding behavior has eased, Taylor said leafy green acreage for the spring will be down compared with last year, and overall consumption may be down as well.
“I agree people have a greater awareness of the health benefits of a plant-based diet, but I’m not sure they’re acting on that yet,” Taylor said.
Looking ahead
The spread of vaccinations across the country could expand foodservice demand in 2021, but the panelists said the first quarter of 2021 won’t likely see much of an uptick in foodservice sales.
Taylor Fresh Foods won’t start increasing production until the end of March or the first of April.
“Even then, it is not going to be back 100%; it will be back at 85% or 90% (of normal),” Taylor said.
With some many restaurants closing or under pressure, the short-term outlook has changed, he said.
Longer term, Taylor said that employee retention will be very important to future success.
Anderson said tight labor conditions are prevalent all over the world and represent a challenge to the global produce industry.
“We operate in 27 different countries and I can tell you there are not too many places where people are saying labor is not an issue,” he said.
The panelists said that current employees who came to the industry after losing their previous non-ag job during the pandemic might be tempted to go back when the economy recovers.
“We are going to make sure we take extra good care of the folks we have on board so that (they) are not tempted to walk across the street,” Taylor said.
Taylor and Anderson expressed optimism for the future of the industry in the long term, with some caveats.
“I’m not sure that the pandemic caused a billion dollars to be invested in indoor growing agriculture but that’s what’s happened the last six months,” Taylor said, joking that for “some reason” very smart people think produce is a lucrative industry.
“I think they’ll be disappointed when they’re done, unfortunately, but on the bright side anytime someone is selling fresh fruits and vegetables, it’s good for the industry,” he said.
Anderson said the industry has a vibrant future but must focus on products that taste great, are convenient and fit the needs of consumers. That, he said, will bring more consumers to fresh produce.
“I see it to be a bright future,” Anderson said.
Taylor said the government will be increasingly motivated to encourage people to eat fruits and vegetables for better health.
“I continue to believe we are in the right spot,” he said.
