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NEWARK, Del. -- In two weeks, the Produce Marketing Association here will use its annual convention as a platform for releasing a new produce study, one that PMA president Bryan Silbermann promises will set reliable benchmarks for sales, market penetration and so on, for an industry undergoing rapid change.However, the study itself can be seen as a most telling benchmark, for a trade association --

Stephen Dowdell

October 6, 1997

7 Min Read
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STEPHEN DOWDELL

NEWARK, Del. -- In two weeks, the Produce Marketing Association here will use its annual convention as a platform for releasing a new produce study, one that PMA president Bryan Silbermann promises will set reliable benchmarks for sales, market penetration and so on, for an industry undergoing rapid change.

However, the study itself can be seen as a most telling benchmark, for a trade association -- and by reflection an industry -- trying to re-invent itself to fit the Information Age.

"It is time for us. If we are going to be viewed as the association that represents the industry, then we have to have numbers about this industry that make sense on a consistent basis," said Silbermann in an interview with SN.

And beyond the numbers, Silbermann said the PMA study, called Fresh Tracks, will shed light on the issues that produce retailers have identified as their major concerns.

In an interview with SN, the association executive would not reveal which specific issues the research will flag as critical, hoping not to preempt what promises to be a centerpiece of the convention. But what did surface in the interview was the theme of change for an industry based historically in the tactile world, but faced with -- and becoming increasingly dependent on -- the more abstract universe of information.

Information, and better access to it, is fast infusing every aspect of the produce business, in forms that range from the marketing and merchandising messages of branding, to consumer education in the store and in cyberspace, to employee training on networking and the conduct of business in a virtual world, Silbermann said.

The Information Age is also spawning change at PMA in how it operates and in the services it provides.

One example is PMA's Virtual Trade Show, a site on the World Wide Web where for months produce buyers have been able to register for the convention, plan their show strategy and gain easy access to exhibitors in advance of the event.

"The Virtual Trade Show is expanding the reach of the physical show's presence to the Web, where anybody who wants to find out more information about an exhibitor can find them, see where they are on the show floor and print out a map that highlights the booths they've selected," Silbermann explained.

In the Information Age, it is an easy step for such a device to go beyond an electronic novelty to other important functions, which Silbermann said PMA will explore, but carefully.

"As a trade association, one has to be very careful about the role one plays in providing a forum on the Internet," he said.

"When you have a trade show that brings buyers and sellers together, which is after all the primary reason for PMA's existence, you have the context that makes all the sense in the world. But some might say, 'Since you've got the framework in place, why not make a day-to-day forum for trading,' for example.

"Well, that is not the role of a trade association, in my view; legally there are some issues about that. I don't see this turning into a buying place. But certainly in terms of a forum for industry issues, discussion groups, committee and task-force work being done on the Internet, I see that as a very valuable tool."

Such a "virtual forum" could only serve an industry comfortable in a virtual world, and Silbermann says the produce community is definitely, if gradually, heading there. "A year ago, very few of our board members had e-mail addresses. By the time our new board is installed in October, many of them will have addresses, and some of them prefer to communicate that way."

Communication is a pivotal function for PMA, Silbermann said. It is a foundation for what he considers the three pillars that define the organization: "We are about networking, information and education. We are not about lobbying or representation in the classical sense of an association.

"We are there to try to improve the environment for marketing produce in North America. Within that broad framework, we are trying to enhance the industry's efficiency, provide a networking opportunity, provide information and education."

It is that departure from the "classical" model of a trade association -- an organization representing the interests of a specific industry segment -- that enables PMA to take the lead in projects such as 5 a Day for Better Health, the promotional and educational campaign that cuts across industry lines, he said.

"I would argue that the 5 a Day program is another example of that evolution of the industry, and of PMA, in bringing buyers and sellers together to get something done."

In Silbermann's view, PMA's services are likely to be needed more than ever by an industry facing change driven by some complex forces.

Among the most compelling of those forces is consolidation, which he said is prodding produce industry players to operate more efficiently. "With larger players at the buyer end, and therefore consolidation at the supplier end in order to supply the heavy volume needs that those buyers have, people are looking at efficiencies."

That search has led PMA into analyses of technologies such as electronic data interchange, returnable packaging, further expansion of PLUs, category management, Web-based communication and more. "It is making huge changes in our industry," he said.

On the other hand, the lack of standardization in the industry "is also going to remain a challenge," Silbermann suggested. "Because of the nature of agricultural product, you will never be able to completely standardize this industry, and I am not sure you want to. The uncertainty is part of what makes it fun; the opportunity for larger risks and larger rewards than grocery products. What appeals to consumers is that it is not a square box or a round can."

But produce needs to be convenient, too, especially if it will secure a growing role in the home-meal replacement market -- and that need is also affecting the industry's dependency on information.

"Value-added, fresh-cut and home-meal replacement lumped together will be a huge trend," Silbermann said. "The rate of growth [in packaged salads] is slowing down, but if you look at the efforts behind those products, you can see it raises the marketing stakes for the entire industry.

"It also speaks to the issue of branding. There are proponents on both sides of that issue, but if you were able to put a litmus paper into a ground-up collection of the brightest minds in the industry, you would find that paper coming out showing people think branding will increase."

But if HMR will indeed be a driver in produce, then PMA must continue to preach to retailers a message of change with regard to their handling and merchandising practices, he said.

"Temperature abuse has absolutely got to disappear in the supermarket produce department of the future," he said. "We have made a heck of a lot of progress, but there is still a long way to go in some stores. I will tell people that if you can't keep it below 41 degrees, you should not be carrying the product.

"Value-added produce still, in certain companies, is treated as a stepchild, without the proper investment in refrigeration it requires. I would hate to see food-safety concerns drive that decision; it ought to be a quality-based goal."

That concern guides PMA's participation in The Partnership for Food Safety Education. "We know the majority of food-safety problems occur because of poor handling -- whether it is within industry's four walls or in the consumer's home. The messages will be simple, about washing your hands and avoiding cross contamination, which for produce are especially vital because there is often no kill-step of cooking involved."

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