Executive Leadership Summit - Santiago Takeaways

May 21, 2024

Washington, D.C. - Consumer trends in fresh produce, global packaging, and accessing organizational resources and networks were a few of the topics discussed during the May 14 the International Fresh Produce Association’s (IFPA) Executive Leadership Summit in Santiago, Chile. This event convened 150 Chilean and global supply chain leaders and covered global industry and consumer trends, discussion groups on key topics, and a deep dive on produce packaging. Key takeaways from this invitation-only program included:

NielsenIQ’s analysis of consumer shopping behaviors, which found global fresh food moved from sixth place to fourth place in fast-moving consumer goods globally. Contributing to this growth is consumer interest in building, maintaining, or improving health and wellness.

Specific to Chile, groceries have capitalized in the online market with fruits and vegetables as a standout food group, as well as showing steady growth in traditional brick-and-mortar supermarkets.
Avocados, tomatoes, and lettuce are the top 3 produce items purchased, with potatoes on an upward growth arc.

In Europe, the Plastic Packaging Waste Reduction (PPWR) rule was passed by EU Parliament. IFPA’s message to policymakers there is that food safety, food quality, and no new carbon miles are nonnegotiable. IFPA continues to work in partnership with the Alliance for Sustainable Packaging for Foods to negotiate industry relief from the PPWR rules.

The Alliance and IFPA have successfully negotiated an exemption of liability for operators on hygiene and safety issues, an allowance/exception for industrially compostable sticky labels (functional PLU stickers and promotional labels), as well as plastic pallet wrapping and straps.
Panelists discussed the vocabulary of terms around packaging (i.e. biodegradable, home compostable, “green” packaging, etc.), recognizing these phrases are a challenge for consumers and could benefit from further clarification, simplification, and education.

A look at what’s on the minds of IFPA’s Board of Directors, with concerns ranging from sustainability, packaging and plastics, and standardization around sustainability; rising costs and the effects on consumers; finding talented and committed employees to work in the industry; expenses in acquiring land and production inputs; innovations around water use, including working with breeders on new varietal development; and growing diet-related disease worldwide, for which produce is part of the solution.

After ELS participants engaged in robust table discussions on what they heard throughout the program, they shared insights on opportunities and challenges for the industry and IFPA. Among these were:

On trends that can boost produce consumption and maintain industry competitiveness, new breeding techniques (perhaps through CRISPR and artificial intelligence) to offer new textures and flavor and reduce reliance on ever costly inputs. Health is an overarching trend and opportunity, when linked with food as medicine and produce prescriptions – particularly combined with younger generations’ interest in wellness and fitness. Storytelling via technology is a method to embed messaging and extend our reach.
On attracting top talent, the industry can leverage new technologies and lean into its purpose and position as helping feed the world and improving its health. The global nature of the industry may appeal to those who are interested in living abroad and the excitement of working in produce and floral as innovative industries doing good for the world may be another recruitment approach worth exploring.
On packaging alternatives and potential tradeoffs in food safety, quality, marketing, and sustainability, the industry must continue to manage and balance costs, along with government involvement. If certain packaging methods/options are banned, this will minimize the consumer experience, undercut their expectations, and negatively affect consumption.

The importance of collaborative advocacy between IFPA and its membership to ensure burdensome laws regulations are not enacted was emphasized by several groups of Summit participants. The next major event to focus on advocacy will be The Washington Conference from June 10-12. The event welcomes leaders from across the fresh produce and floral industry to address pressing public policy matters with the U.S. Congress and Administration. Registration is open now.

Executive Leadership Summit - Santiago Takeaways

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