Industry must confront change, Stenzel says

Industry must confront change, Stenzel says

CERRITOS, Calif. — Ignore, resist or embrace?

Those are the choices members of the produce industry face today, whether they’re dealing with the new administration in Washington, D.C., or with changes in their own industry, Tom Stenzel told members of the Anaheim, Calif.-based Fresh Produce & Floral Council.

Speaking on “The Challenge of Change” at a May 3 luncheon, the president and CEO of the United Fresh Produce Association told FPFC members that President Donald Trump is sticking to his promise to shake up Washington.

That promise will have a distinct effect on three areas of the produce industry — international trade, immigration reform and regulatory reform.

Some of the president’s proposals might actually benefit the produce industry, Stenzel said. But many won’t.

Trump’s pulling out of the Trans-Pacific Partnership and threats to quit the North American Free Trade Agreement fall in the latter category.

“He’s very antagonistic toward free trade,” Stenzel said.

Fortunately, the president tempered his tone on NAFTA and said he would be willing to “renegotiate” the trade pact rather than do away with it, Stenzel said.

“We can probably live with that,” he said.

But still, the volatility in Washington sends a message to trade partners worldwide that the U.S. is not a stable country to sell to or buy from, Stenzel said.

Stenzel opposes efforts to stifle competition by taxing imports. Trump has floated the idea of a 20% border tax to pay for the building of a wall on the U.S./Mexico border.

“We’ve got to stand for free and fair trade,” he said. “Trade wars never succeed.”

On the immigration front, Stenzel said the Trump administration “clearly has an anti-immigrant philosophy,” but he said immigrants can be found in every segment of the produce industry.

The administration’s current enforcement policy is having “a chilling effect on our industry,” Stenzel said, and is causing daily labor shortages and a slowing in migratory labor patterns.

“We’ve got to find a way to help these people become legal residents of the U.S.,” Stenzel said.

On the plus side, Stenzel said Trump may be more likely than other recent presidents to actually implement immigration reform.

Finally, Stenzel said it’s good that the new administration favors a business-oriented regulatory climate with balanced environmental protections.

He expressed concern about the recent rollback of nutrition and health advances, but Stenzel pointed out that the fruit and vegetable standard the industry fought for remains intact.

While industry members may be tempted to ignore or resist many of these changes, Stenzel said that’s not the answer.

“Get engaged, don’t drop out, and make sure your views are known,” he said. “This is our chance to make a difference.”

Stenzel then turned to the produce industry, which he said also faces change.

The key to staying abreast of change is to focus on the consumer and emphasize “faster, fresher and more flavorful,” he said.

He suggested that marketers try to win over consumers by offering products that emphasize flavor as well as price and shelf life, offering local products, providing a wide selection of stock-keeping units and investing in the cold chain.

 

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