ANAHEIM, Calif. — The International Fresh Produce Association’s Global Produce & Floral Show kicked off Oct. 19 with a rousing State of the Industry address by CEO Cathy Burns.
The information-packed address gave produce industry professionals a look at the good news, the bad news and the news — like the explosion in artificial intelligence — that is both exciting and scary.
Burns cited a host of challenges facing the global fresh produce and floral community from geopolitical tensions, extreme weather events and consumer health trends, emphasizing that action is the answer to overcoming these hurdles.
“You can change the health of the world,” she said. “The great truth is, no matter the size, nature, source or timing of any challenge, action is the answer. Because aspiration without action is just a dream.”
Weather and climate challenges
Extreme weather events have more than doubled in the past 30 years and could force more than 122 million more people into hunger and poverty within the next seven years, said Burns, who shared highlights from a recent IFPA global study on creating a climate-resilient future:
- The world is currently on a path to a global mean temperature rise in the range of 1.5 to 4.5°C by the end of the century. The higher end of this range would push agriculture far beyond manageable thresholds.
- Climate change is the second-biggest consumer issue (following inflation) that needs action from governments, the public, and businesses.
- Consumers expect businesses and producers to, at a minimum, help solve insufficient supply of safe and nutritious food, overconsumption, and waste.
“IFPA’s sustainability strategy includes IFPA having a seat at larger tables where food systems conversations are happening,” Burns said. “We continue to lead environmental benchmarking work within the Consumer Goods Forum to ensure the most realistic and workable standards are created to provide consistency for the supply chain. We are also participating in the November COP28 conference in Dubai to ensure industry representation and that fresh produce and floral is part of the solution though climate-smart agriculture practices.”
Human sustainability
In today’s tight labor market, sustainability is about more than environmental health.
While businesses the world over grapple with sustainability from an environmental perspective, human sustainability — created when companies support their employees in becoming healthier, more skilled and connected to a sense of purpose and belonging — has emerged as a priority, Burns said.
Currently, 48% of employees and 53% of managers report that they’re burned out at work.
“The reality is when people are burned out, they are less engaged. And that low engagement costs the global economy $8.8 trillion,” Burns said.
She added that the key to getting and maintaining a competitive edge is not only developing people and managing them well, but also ensuring their well-being is maintained, because failure to support employee well-being costs $322 billion per year globally in lost productivity.
Diversity, equity and inclusion in produce and floral remains a key part of IFPA’s strategic work, and the organization recently launched a toolkit to help its members along their DEI journey.
The role of AI
While the role AI will play in the workforce remains unclear, its potential for efficiency is profound.
Research shows that AI, which has experienced more than 400% growth in less than two years, will create $130 billion in operational efficiencies, Burns said.
Citing McKinsey data, Burns said AI will most likely impact sales and marketing, software engineering and supply chain logistics.
However, Burns cautioned, “[AI] is no replacement for the institutional knowledge and the relationships people have with each other,” adding, “We cannot lose empathy in pursuit of efficiency.”
Produce’s ‘greatest hurdle’
More than half of the world's population is predicted to be obese or overweight by 2035, and 40% of the world's population is already there. Roughly a half-billion people are currently living with diabetes worldwide, with more than 95% having Type 2 diabetes, Burns said.
“It's no secret our greatest hurdle is consumption,” Burns said. Despite growth in fresh produce over the past few years, “we are capable of so much more.”
With the Centers of Disease Control and Prevention finding that more kids ages 1 to 5 consumed a sugar-sweetened beverage than they consumed a daily vegetable or a daily fruit and that 1 in 3 kids did not eat a daily fruit and nearly half did not eat a daily vegetable, Burns doubled down on IFPA’s nutrition policy initiatives.
“IFPA will continue to fight for full fruit and vegetable benefits in the WIC program and will continue efforts to have interventions like produce prescriptions embedding into the healthcare system and integrating them as a part of standard practice of clinical care,” Burns said. “IFPA’s collaboration with a North Carolina nonprofit saw it transform a $500,000 produce prescription grant into an $8 million in redemption of fruits and vegetables in a little over a year.”
In addition to IFPA’s policy efforts, the IFPA Foundation for Fresh Produce will work to grow consumption through a portfolio of consumer-related programs and offerings.
Advocacy and action
With these challenges and opportunities in front of the industry, Burns called on IFPA members and the industry at large to be ready to advocate locally, domestically and globally.
“This community is the voice of authority and we can help solve some of the biggest problems in the world,” Burns said. “Change starts here. Growing consumption starts here. Changing the world through advocacy starts here.”