Opinion: promoting fruit value where it counts

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Opinion: promoting fruit value where it counts

By Eric Viramontes, president of VISER

Eric-Viramontes-292x300Have you noticed how much we participate every day in consumerism? In a situation in which all industries around us have not only created a necessity for their products but also positioning of added value, we are willing to pay.

Recently technologic advances have developed different formats like tablets and smart phones. By simply placing the next number up to the product name, society feels the need for the newest version.

Personally, I have been a user of the iPad, iPad II and now an iPad Mini. The difference between these devices is so small that I cannot point out what it is. They all serve the same function and hundreds of dollars were invested in them so that I could be up to date.

Today a shirt is worth more if it has a logo on it, which makes you a great person - and you paid for it.

Tennis shoes, glasses, clothing - today everything has a market value that the consumer is willing to pay for. This is the value of innovation, distinction, market strategy and competitiveness.

Strangely, this phenomenon has not occurred in the fresh fruit and vegetable industry.

The reality is that you have to be competitive and innovative. But the difference is that by being it, you only create the right to stay on  the market.

Today, if you don't have a safety management system, you are out of the game. You are not going to sell.

Some chains promise low prices. Others plan to increase their offering of organic products and many think about offering consumer-friendly packaging to consumers. No one, however, thinks about the higher cost of fresh products.

Consumers are told that they should know the origin of their fruits or vegetables, or that the woman of the house is interested in the type of technology used during production.

For obvious reasons, the concepts of responsibility and sustainability are great concepts for protectionism. But clearly neither has had a positive effect on product price. We see the price for organics getting closer to that of conventional products, which I am sure has not grown in value either.

In the tomato war between Mexico and the United States, we fought over cents in the price reference. During this period, the consumer price did not change. It was constant.

I do not blame supermarket chains for the lack of value in our industry. I think farmers as well are partly to blame.

Few seek out value-added innovation and when it is finally achieved, many are ready to imitate it.

If innovation is the source of specialty tomatoes with a market price of US$15, that should not slow down producers that are ready for the same: detracting from quality and selling for US$9 or what's worse, exceeding the offer in production peaks and receiving minimum market value.

In my strategic planning, whenever I think about the company mission - which is the reason for the organization's existence - I come across statements like: "produce and export world-class tomatoes or vegetables."

So I wonder, what do they do with tomatoes or vegetables that aren't world class? It turns out, everything gets exported.

I don't know what's happening in this industry. We are aware that the population consumes increasingly less fruits and vegetables. Today North Americans consume 40% less than Europeans and Latin Americans consume 60% less than Asians.

However, there are not serious campaigns to increase consumption. In this industry, there is no category or brand loyalty, and consumers are not willing to pay more.

What did we do wrong in the industry? Why is there no added value? Why haven't we earned consumer confidence?

I think these questions are the current challenges for marketers in the fresh industry.

Follow Eric Viramontes on Twitter at @ervs_viramontes.

www.freshfruitportal.com

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