In an era of new regulations, global trade, and change to come, Canada’s produce industry trade associations look forward to the challenge. Representatives from three of the largest organizations share their visions and goals with Blueprints.
THE TRADE
Agriculture has always been a vital part of the Canadian economy, going all the way back to its earliest settlement. Canada’s top trading partners remain the United States and Mexico, but China has become an increasingly important destination as well. Canada recently unseated Argentina as the fifth-largest exporter of food products in the world, representing 3.5 percent of total global exports.
With so much at stake, trade associations have their hands full. Regional associations and commodity groups all do their part, but for the purposes of this article, we talked to the leaders of three organizations: the Canadian Produce Marketing Association (founded in 1925 as the Eastern Canada Fruit and Vegetable Jobbers), the Association Québécoise de la Distribution de Fruits et Legumes, known as the Quebec Produce Marketing Association in English (founded in 1947 as the Quebec Fruit and Vegetable Wholesalers Association), and the Ontario Produce Marketing Association, founded in 1990.
The organizations operate independently but share information, some clients, and perform services regionally as well as nationally. All three cooperate and work together, and while each has its own agenda, process, goals, and resources, the groups are not rivals, all working toward the betterment of the industry.
To get a sense of the challenges and opportunities faced by those buying and selling produce in Canada, we spoke with leaders at each of these dynamic organizations, asking about the future of fresh food marketing. Each header includes three words chosen by the interviewee to describe the Canadian fruit and vegetable industry.
CANADIAN PRODUCE MARKETING ASSOCIATION (CPMA)
“Collaborative, Evolving, Competitive”
Before discussing the differences between the American and Canadian produce trade, CPMA’s president Ron Lemaire wants to point out the similarities. “Both are experiencing consolidation within the retail sector, both have a knowledgeable and socially active consumer base, and we have similar concerns related to weather, water, and growing global competitiveness,” he explains.
This doesn’t mean that differences don’t exist, however; he notes that for produce, Canada is an import-dependent nation, and must therefore think globally as well as collaboratively. There are also differences in the size, makeup, and origin of the country’s consumer base. But the largest difference, he notes, is between the two countries’ regulatory systems: “While we work diligently to encourage a harmonized North American perimeter approach to regulations and trade on our continent, our two governments still create barriers that can have a negative impact and drive extra costs into our business.”
Helping navigate these barriers is just one of many services CPMA provides. “We set annual goals, which support our five-year strategy,” explains Lemaire. “Our goal to improve population health and industry prosperity drives everything we do.”
The CPMA operates along three business lines—corporate services, market development, and industry simplification—which work collaboratively in such areas as market research, consumer promotion, government relations, food safety, traceability, coding and efficiencies, networking, membership services, and education. By engaging a wide range of stakeholders, CPMA hopes to connect the most impacted groups and individuals to achieve an optimal result.
“Our actions are always tied to a broader strategy,” Lemaire explains, “and aligned with the diverse needs of our stakeholders.
In an era of new regulations, global trade, and change to come, Canada’s produce industry trade associations look forward to the challenge. Representatives from three of the largest organizations share their visions and goals with Blueprints.
THE TRADE
Agriculture has always been a vital part of the Canadian economy, going all the way back to its earliest settlement. Canada’s top trading partners remain the United States and Mexico, but China has become an increasingly important destination as well. Canada recently unseated Argentina as the fifth-largest exporter of food products in the world, representing 3.5 percent of total global exports.
With so much at stake, trade associations have their hands full. Regional associations and commodity groups all do their part, but for the purposes of this article, we talked to the leaders of three organizations: the Canadian Produce Marketing Association (founded in 1925 as the Eastern Canada Fruit and Vegetable Jobbers), the Association Québécoise de la Distribution de Fruits et Legumes, known as the Quebec Produce Marketing Association in English (founded in 1947 as the Quebec Fruit and Vegetable Wholesalers Association), and the Ontario Produce Marketing Association, founded in 1990.
The organizations operate independently but share information, some clients, and perform services regionally as well as nationally. All three cooperate and work together, and while each has its own agenda, process, goals, and resources, the groups are not rivals, all working toward the betterment of the industry.
To get a sense of the challenges and opportunities faced by those buying and selling produce in Canada, we spoke with leaders at each of these dynamic organizations, asking about the future of fresh food marketing. Each header includes three words chosen by the interviewee to describe the Canadian fruit and vegetable industry.
CANADIAN PRODUCE MARKETING ASSOCIATION (CPMA)
“Collaborative, Evolving, Competitive”
Before discussing the differences between the American and Canadian produce trade, CPMA’s president Ron Lemaire wants to point out the similarities. “Both are experiencing consolidation within the retail sector, both have a knowledgeable and socially active consumer base, and we have similar concerns related to weather, water, and growing global competitiveness,” he explains.
This doesn’t mean that differences don’t exist, however; he notes that for produce, Canada is an import-dependent nation, and must therefore think globally as well as collaboratively. There are also differences in the size, makeup, and origin of the country’s consumer base. But the largest difference, he notes, is between the two countries’ regulatory systems: “While we work diligently to encourage a harmonized North American perimeter approach to regulations and trade on our continent, our two governments still create barriers that can have a negative impact and drive extra costs into our business.”
Helping navigate these barriers is just one of many services CPMA provides. “We set annual goals, which support our five-year strategy,” explains Lemaire. “Our goal to improve population health and industry prosperity drives everything we do.”
The CPMA operates along three business lines—corporate services, market development, and industry simplification—which work collaboratively in such areas as market research, consumer promotion, government relations, food safety, traceability, coding and efficiencies, networking, membership services, and education. By engaging a wide range of stakeholders, CPMA hopes to connect the most impacted groups and individuals to achieve an optimal result.
“Our actions are always tied to a broader strategy,” Lemaire explains, “and aligned with the diverse needs of our stakeholders.
Our approach recognizes the connections between supply chain players, nonfood players, and consumers, as well as understanding the implications of the natural capital and natural resource bases.”
Such an approach avails members of the vast knowledge and expertise of CPMA’s staff of employees and volunteers, drawing from a pool of regional, national, and global experts in industry issues. Practical benefits include discounted programs and services, including label review, online training and education, industry bulletins and food safety alerts, and government advocacy. There are also special programs like the “Half Your Plate” marketing initiative and new e-learning platform featuring a comprehensive set of online tools with podcasts, webinars, and training software.
Lemaire is quick to point out the unique challenges facing Canada, such as weather conditions, increased competition, and a lower-value Canadian dollar which benefits those selling outside of the country but negatively impacts local buyers and consumer pricing. But in his view, what the country shares with America, including labor challenges, a lack of new farmers joining the agricultural sector, and access to new technologies, is far more noteworthy.
“The most significant change we have seen, I believe, is the increasing sense of ‘now’ when it comes to information acquisition and dissemination,” he observes. “This change is driving global expansion, increasing collaborative business models, and spurring product innovation.”
ONTARIO PRODUCE MARKETING ASSOCIATION (OPMA)
“Practices, Progress, Possibilities”
From her office at the Toronto Produce Terminal, OPMA’s new president, Virginia Zimm, talks enthusiastically about her first few months on the job, which she says have been very rewarding. “I have come to know the industry from a different point of view,” says the former food industry marketing and public relations executive, “and I have also discovered how I can help the membership achieve success on many levels. I have an intimate knowledge of the produce world, and that puts me in good stead to represent an organization that is here to serve its membership to the betterment of the industry.”
Zimm is not shy about discussing the unique problems of the Canadian produce industry. “Currently, we’re working without the security of a PACA-like trust provision,” she states. “This puts growers, packers, and shippers in a very vulnerable position should an insolvency issue occur in Canada.”
She also points to differences in the tolerance standards of American and Canadian inspection regulations, higher fuel costs north of the border, and a shorter growing season as major issues facing Canadian growers and shippers. She is just as quick to point out the possibilities and opportunities of operating in such an environment, especially in the area of innovation, which she believes is the key to Canada’s future.
“Human health, education, and the local food movement, all wrapped up in a healthy measure of innovation—will be the future,” she predicts. “I’d like to see the produce industry emancipate the Canadian health care system, and I think it can. I’d like to see us create a healthier society with less dependence on curative procedures by introducing preventative measures through the ingestion of more fruits and vegetables.”
Such zeal is reflected in Zimm’s determination to channel it into practical outlets, like introducing new varietals and growing practices, creating better packaging and increasing shelf life, fine tuning logistics, and building consumer knowledge. She believes innovation will add value at all levels of the supply chain while still maintaining best practices.
These practices arise from membership, sponsorship, and service goals created by partners at all levels of the value chain—grower-shippers, packers, wholesalers, brokers, processors, retailers, and foodservice. “We’re directed by a board that has representation from all segments of this chain, and together we build our service offerings and assist each member with opportunities to connect with other members and create mutually beneficial business arrangements.”
Some of OPMA’s specialties are providing cost-effective marketing programs, both business-to-business and business-to- consumer; acting as a liaison for access to Canadian regulatory bodies like the Canadian Food Inspection Agency; and hosting three annual networking events to help members build relationships. “All our services are valuable,” asserts Zimm, “depending on what is required by each member.”
L’ASSOCIATION QUÉBÉCOISE DE LA DISTRIBUTION DE FRUITS ET LÉGUMES (AQDFL or QPMA)
“Demanding, Dynamic, Efficient”
The AQDFL is known in English as QPMA, or the Quebec Produce Marketing Association, and therein lies one of its challenges. Quebec is Canada’s most Francophonic province, where French is the official language and 78 percent of the population speak it exclusively, but much of the organization’s work involves liaising with English-speaking members and groups. This duality can be problematic, especially from a marketing or labeling point of view.
Fortunately, QPMA’s chief executive officer Sophie Perreault is more than familiar with this challenge and ready to meet it at every turn. Of course, language issues are more or less set, while other trials facing the
QPMA are more in flux—like the exchange rate between the American and Canadian dollars—and its ongoing impact on Canadian produce businesses.
It can be a difficult matter to sort out, but, she notes, it has its advantages as well as its disadvantages. While the currency value is advantagous for the American side, it also provides opportunities for Canadian growers to export more produce to the United States. In turn, America’s loss is Canada’s gain in terms of growing conditions; the consequences of the California drought have also opened up new windows for Canadian produce exporters.
The issue of climate change presents both similarities and differences between growers on either side of the border; while environmental protections have been a priority in Canada longer than in the United States, the country’s commitment to reducing emissions to slow climate change faltered under the Harper administration, it will be reprioritized under the new Trudeau government.
“Climate change and its impact on crops will be among the biggest issues facing the Canadian produce industry over the next five years,” Perreault insists, and navigating the legislation and changes is a major part of QPMA’s services for members. “We offer lobbying and assistance with government relations, as well as networking and promoting fruit and vegetable consumption through continuous information.”
Perreault points out that Canada faces other unique challenges, including the regional differences and distinctions between provinces. But through QPMA’s work to promote, facilitate, and support partnerships between industry players, she has seen many positive changes come about. “We’ve seen a strengthening of relationships between growers and retailers, making them more able to respond to consumer trends of buying local and organic produce,” Perreault notes.
“This has led to a multiplicity of produce, whatever the season and weather conditions. A few years ago, for example, clementine (mandarin oranges) were only available for three months out of the year; now they are available almost all year long. We have a demanding consumer base, but also a dynamic market that is ready to meet its needs.”
THE FUTURE
No one, not even these industry association heads, has a crystal ball that can predict what will have the greatest impact on the produce trade over the next five years. Yet all three—Lemaire from CPMA, Zimm from OPMA, and Perreault from QPMA—pointed to several common factors: food safety, sustainability, the power of social media, and the emergence of new technologies as the most likely to impact the future of Canadian produce.
An increasingly well informed consumer base, where one voice can be amplified a thousand-fold over social media, and the challenge of a rapidly modernizing regulatory environment that requires growers and sellers to do more with less, are the kinds of hurdles these organizations will have to clear in the coming years.
But Lemaire isn’t worried. “The diversity of the sector in Canada means not all issues are equal to all players; some have adapted and built business models that have established them as global category specialists,” he contends, pointing to the Canadian greenhouse sector as a major success story. “For many Canadian companies, with adversity comes change—and improved business.”
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