This year retail competition is more fierce than ever. As the recession hits consumer’s wallets, retailers have collectively moved into battle mode. Price pressure is larger than ever. We have all long known that the easiest way to increase value for retailers is by reducing the buying price. And in a fresh produce world of abundant availability and standardized specifications “the price” is often the only thing we can talk about in commercial relationships.

So if this year is going to give even more price pressure; is there a way out of that discussion? We believe the answer is yes. And it starts with a much broader definition of “value”.

We generally have a narrow perception of consumer value. Most of the time, we consider it to be synonymous with “very low price”. But there is much more value to be added to the relationship between suppliers and key retail customers, and to the consumer. That is also what many full service supermarkets themselves do; don’t try to be continuously the cheapest but strengthen the relationship with your primary consumer by creating additional value.

So, how do we create value in the fresh produce world without being distracted by price?

Let’s start with a simple question; have you ever met a consumer that wants to buy bad tasting produce because it is cheaper? I didn’t think so. When “taste” is superior, “price” plays a minimal role. Anybody merchandising strawberries knows that the impulse character has little to do with price and everything to do with taste and smell.

Yet, instead of trying to give consumers products with great taste, our systems are focused on just meeting the minimum requirements. Think about it. We prefer varieties for their long shelf life, pretty much regardless of their taste. We harvest climacteric fruit as early as possible; even when it means that they never reach the optimal sugar content when ripe. We trade mango varieties that have a red color so that they look ripe, even though they are hard and contain fibers. Our quality systems are designed to assure that we bring products to the consumer with Brix levels that must be above a minimum; that is very far way from pursuing great taste. Meanwhile production is mostly driven by maximizing kilo’s. All this unfortunately contributes very little to satisfying the consumer.

By not focusing on optimizing quality and taste we have effectively helped the commoditization of our industry. To put it more positively; one of the biggest opportunities to decommoditize fresh produce is by focusing on quality and taste.

Because margins are thin as a result of the commoditization pressure, our fresh produce industry also gives itself little room to innovate. Sure, we’re not developing new mobile phones and of course it takes 7-12 years to breed a new tomato variety. But that should not keep us away from creating new forms and when it comes to innovation the only limiting factor is our imagination. There are so many ways to add value to the relationship between producers and retailers that it is amazing to see that we are mostly only able to discuss “price”.

A commitment to creating new levels of consumer value is the basis for a sustainable fresh produce world. This will require a concerted effort to drive innovation in the fresh produce world; from field to retail shelf.

We live in economically challenging times. But it is a great moment to go back to the essence of our business; to continuously deliver added value and to surprise the consumer with exciting and great tasting fresh fruit and vegetables.