United Fresh Produce Association

Being United Makes All the Difference

www.unitedfresh.org

United Fresh Produce Association• Founded in 1904• Headquartered in Washington DC• 1,500 companies; 10,000 individuals

• More than 100 commodity boards; local, regional, national, international associations

• Members in every state, 25 countries• 300 volunteers on boards, councils

• We bring together the total produce industry supply chainGrowers, wholesalers, fresh processors, distributors, retailers, restaurants, service providers, allied associations

Our Mission

1. Bringing supply chain partners together to grow your businesses2. Developing solutions for companies to address complex issues3. Providing training to enhance your team’s skills, leadership4. Shaping government policy that affects our industry5. Growing fresh produce consumption for long-term success

United Fresh Produce Association

Industry Profile• 230,755 farms • 9.8 million acres • $57.2 billion market value• 98% of Fruit and Vegetable are

Family Farms• $7.4 Billion Export of Fruits and

Vegetables• 7,600 Schools Participate in FFVP• Over 4,200 Salad Bars Donated to

Schools

Crop ComparisonCommodity Market Value Acreage

Corn $67.2 billion 94.5 million

Soybean $38.7 billion 76.1 million

Fruits, Berries, Tree Nuts $25.9 billion 5.5 million

Vegetables, Melon, Potato $16.9 billion 4.2 million

Wheat $15.8 billion 49.0 million

Rice $2.9 billion 2.7 million

Fresh Fruits and Vegetables

Fruits, Berries, & Nuts Vegetables, Melons, & Potatoes

State Market Value % of US Market 1. California $17.6 billion 67.9%2. Washington $2.9 billion 11.2%3. Florida $1.8 billion 6.9%4. Oregon $517 million 2.0%5. New York $308 million 1.2%6. Georgia $308 million 1.2%7. Michigan $257 million 1.0%8. Texas $252 million 1.0%9. Wisconsin $219 million 0.8%10. Pennsylvania $160 million 0.6%Top 10 States $24.3 billion 93.9%

State Market Value % of US Market 1. California $6.3 billion 37.5%2. Florida $1.3 billion 7.7%3. Washington $1.1 billion 6.5%4. Idaho $968 million 5.8%5. Arizona $764 million 4.5%6. Wisconsin $555 million 3.3%7. Oregon $492 million 2.9%8. Texas $474 million 2.8%9. Michigan $463 million 2.7%10. Georgia $412 million 2.4%Top 10 States $ 12.8 billion 80.0%

Fresh Fruits and Vegetables – Production

2000 2005 2010 2013

All fresh fruit $2.1 billion $2.7 billion $4.0 billion $5.0 billionAll fresh vegetables $1.2 billion $1.5 billion $2.1 billion $2.4 billion

Fresh Fruits and Vegetables – ExportsTop 10 Produce

Exports by Commodity

1 Apples2 Oranges3 Potatoes4 Grapes5 Lettuce6 Onions7 Cabbage8 Tomatoes9 Grapefruit10 Watermelons

Top 10 Exports to Destination Countries

1 Canada 2 Mexico3 Japan4 South Korea5 Hong Kong6 Taiwan7 India8 China9 Indonesia10 Rest of the World

Top 10 Exporting Fruit and Veg States in the US Total Export Value1 California $ 3.7 Billion2 Washington $ 986 Million 3 Florida $ 569 Million 4 Oregon $ 184 Million5 Michigan $ 177 Million 6 Arizona $ 172 Million 7 Idaho $ 138 Million 8 New York $ 125 Million 9 Georgia $ 105 Million 10 Wisconsin $ 99 Million

Import Share of Consumption Source of Fruit and Vegetable Imports1980 1990 2000 2010

All fresh fruit 26.7% 34.9% 42.4% 48.8%

All fresh vegetables 8.0% 10.3% 13.2% 24.5%

Avocados 2.2% 13.2% 48.9% 79.7%

Grapes 13.6% 37.0% 45.2% 50.3%

Melon 10.3% 15.5% 25.1% 28.9%

Asparagus 10.8% 29.8% 59.0% 89.1%

Garlic 12.5% 17.4% 29.0% 59.5%

Tomatoes 22.3% 20.5% 30.0% 52.3%

2012 Value PercentageMexico $7.0 billion 51.3%Chile $1.2 billion 8.8%Canada $1.2 billion 8.8%Guatemala $923 million 6.8%Costa Rica $920 million 6.7%Ecuador $449 million 3.3%Peru $448 million 3.3%Honduras $258 million 1.9%Columbia $246 million 1.8%Rest of World $996 million 7.3%

Fresh Fruits and Vegetables – Imports

Per Capita Consumption (Lbs) Fresh vs. Processed (Lbs)

1980 1990 2000 2013 % Change

All Fresh Vegetables 113.0 147.1 174.5 169.8 50.3%

All Fresh Fruit 88.4 92.0 101.2 110.5 25.0%

Broccoli 1.4 3.4 5.9 6.8 386%

Strawberries 2.0 3.2 4.9 7.9 295%

Bell Pepper 2.9 5.9 8.2 10.3 255%

Grapefruit 7.3 4.4 5.0 2.8 -62%

Peach/Nectarine 7.1 5.5 5.3 3.1 -56%

Head Lettuce 25.6 27.8 23.5 12.5 -51%

1980 1990 2000 2012 % ChangeFresh Fruit 106.5 117.0 128.8 131.0 23.0%Processed Fruit 159.3 141.0 158.0 113.7 -28.6%

Fresh Vegetables 151.8 176.4 200.8 191.7 26.3%

Processed Vegetables 186.2 214.8 223.5 203.2 9.1%

Per Capita Consumption (Lbs) 30 Year Trend % Change

Fresh Fruits and Vegetables – Consumption

All Fresh Vegetables 50.3%All Fresh Fruit 25.0%

Seafood 22.0%Meat & Poultry 4.0%

Connecting the Total Supply Chain for Fruits and Vegetables

Total Supply Chain CommitmentFor over a century United Fresh has brought together companies from every segment of the fresh produce supply chain. Just as fresh fruits and vegetables need basic elements – sun, water, and soil – to flourish, so does our industry. Through our broad base of members, we are able provide the ideal climate to bring the industry together on key policy and regulatory issues, build strategic partnerships, and create long-term initiatives to solve industry challenges.

Key Volunteer Leadership GroupsMarket Segment BoardsGrower-Shipper BoardWholesaler-Distributor BoardFresh-Cut Processor BoardRetail Food Service BoardExpert Advisory CouncilsGovernment Relations CouncilFood Safety & Technology CouncilSupply Chain Logistics CouncilFinance & Business CouncilProduce Marketing and Merchandising Council

United Fresh Produce Association

Critical Issues Impacting Entire Supply ChainFood SafetyUnited Fresh has worked closely with industry members, regulators, Members of Congress, and other interested stakeholders to analyze and provide detailed comments for the proposed rules under the Food Safety Modernization Act (FSMA). Now that FDA has published the final rules under this law, the industry is examining how these new rules will be implemented and enforced. In addition, we are examining how the rules will work together through the produce supply chain.

Immigration ReformFor more than a decade the produce industry and agriculture partners have made an overwhelming case for legislation to reform our broken immigration system and help us build a legal and reliable workforce. And while Congress has come close several times to addressing this issue, fear and politics have always intervened. Long-term, we must have a twofold labor solution – a pathway to legal status for our valued undocumented workers already engaged in agriculture, and a new guest-worker program to bring in skilled ag workers to do jobs that Americans are just unwilling to do.

Nutrition PolicyUnited Fresh leads the produce industry in shaping federal nutrition policy to drive increased consumption of fresh fruits and vegetables. This is accomplished through several key legislative vehicles including the Child Nutrition Reauthorization bill, the Farm Bill, and annual appropriations legislation. Policy success through federal programs such as the Fresh Fruit and Vegetable Program, school lunch, school breakfast, SNAP, and WIC, have provided millions of children and families access to fresh fruit and vegetables throughout the year.

Farm Bill ProgramsThrough the leadership of the Specialty Crop Farm Bill Alliance – where United Fresh serves in a leadership role – the Farm Bill has become a significant policy tool to help increase the competitiveness of the fresh produce industry in a global market place. Programs such as Specialty Crop Block Grants, Specialty Crop Research Initiative, pest and disease programs along with trade enhancements such as MAP and TASC, have all provided critical tools and created new opportunities for fruit and vegetable producers across the country. United Fresh will continue to advocate for strong investment in Farm Bill programs that help the fresh produce industry.

Trade PrioritiesGiven the increasingly global nature of the fresh fruit and vegetable industry, United Fresh will continue to work with allies to achieve a US trade policy that is comprehensive and produces tangible benefits. While the Trans-Pacific Partnership (TPP) has, for the time being succumbed to a changing political atmosphere, United Fresh remains supportive of the agreement and will be joining other agriculture stakeholders to renew efforts to secure passage of the agreement. In addition, in light of the incoming President’s frequently stated intention to revisit the North American Free Trade Agreement (NAFTA), United Fresh will join with partners within agriculture to take advantage of any re-negotiation of this agreement to maximize the benefits to the fresh produce industry for all countries involved.

Regulatory ReformFruit and vegetable grower-shippers saw the current Administration take an increasingly aggressive approach to environmental, labor, and business regulations relevant to our industry. Regulations such as Waters of the United States, review and approval of various crop protection tools, the approval and administration of H-2A labor applications have all contributed to a business environment that impedes production and creativity. United Fresh will continue to push for needed reforms of the regulatory environment such as ensuring that the public and industry have adequate time to review proposed regulations while making recommendations on current regulations that need ample review.

Grower-Shipper Priorities

InfrastructureWe support efforts for a comprehensive legislative package to address America’s faltering transportation and infrastructure systems. Because the overwhelming majority of fruits and vegetables produced domestically are transported by truck, such a focus on transportation could be very beneficial to the fresh produce industry. We will collaborate closely with other industry stakeholders and transportation interests to increase federal funding for construction and maintenance of roads and bridges. We will also support efforts to ensure that the federal policy for Hours of Service (HOS) for truckers balances safety and efficiency.

Child NutritionOne of the major success stories of United Fresh’s focus on federal nutrition programs has been the efforts by the industry to grow business through distribution of fresh produce to schools. For example, the Fresh Fruit and Vegetable Program for instance has lead wholesalers and distributors of the fresh produce industry to develop new business models that include schools and other educational institution along with their traditional customers. Child nutrition programs have allowed their fresh produce distribution industry to build markets and lifelong customers building economic value across the industry.

Wholesaler-Distributor Priorities

Child NutritionBy the Numbers….School Lunch and School Breakfast9.1 Million Students/1.5 billion school breakfast served 18.8 Million Students/3.1 billion school lunch servedWIC $558 million in Fruit and Vegetable Vouchers

Fresh-Cut Processor Priorities

Ports and BordersThe movement of fresh fruits and vegetables (both imports and exports) has continued to increase in recent years. This includes both ports of entry and border crossing routes. While the need for security, food safety and invasive pest controls at border crossing and ports of entry is clear, it appears increasingly that there is not an adequate level of resources and personnel to process the level in a timely and efficient manner. United Fresh will engage in dialogue with key agencies with jurisdiction over produce imports and exports such as Department of Homeland Security, FDA and USDA to identify resource gaps and work with key lawmakers on Capitol Hill to strengthen current resources

Technology InvestmentBillions are invested annually in research and discovery of new agricultural technologies within universities and government labs. If these can be commercialized into usable solutions for farmers, there will be a clear impact in providing safe food, more efficient production systems, and less environment impact as the population grows to 9 billion people by 2050. Currently, there is a significant gap between the research in the lab and into a practical application for fresh produce companies. At the same time, regulatory policy, environmental changes, and shifting consumer preference are continually galvanizing new areas for innovation.

ResearchResearch serves as both a foundation and a catalyst for growth in the advancement of any industry. For the fresh fruit and vegetable industry, successful research projects have the ability to reduce the future burden on the federal government through greater public access to healthy products, enhanced exports to growing consumer economies around the world, pest and disease resistant crops, reduced resource consumption and a variety of other beneficial applications. Unfortunately, federal investment in research and extension addressing those challenges has not kept pace with the dynamic growth and needs of fresh produce.

Retail-Food Service PrioritiesFood Waste/RecoveryIn September of 2015, the Federal Government led by the USDA and EPA announced the first-ever national food waste reduction goal, calling for a 50-percent reduction by 2030. As part of any legislative or regulatory initiative, we support three fundamental goals: including reducing the amount of food waste generated; redirecting safe and nutritious fruits and vegetables to those in need, and recycling food waste where possible. In addition, issues such safety and quality dates and labeling, federal preemption, and consumer education must be factored into any requirement on the fresh produce industry.

Federal Food LabelingRetail, food-service and their produce suppliers are faced with an array of federal labeling requirements including COOL, federal nutrition labeling guidelines, menu labeling, to the just passed GMO labeling law. Ensuring proper compliance and adequate consumer information is paramount for our industry. In addition, United Fresh strongly believes in the importance of providing nutrition information to consumers to empower them to make the best choices for their dietary needs.

Tax PolicyTax laws can have a profound impact on business decisions. Certainty about tax rates plays an important role in whether fresh produce companies up and down the supply chain expand and hire. United Fresh Produce Association urges Congress to support tax provisions that encourage businesses to grow and create jobs. Any effort at reform, however, must recognize the diversity of the industry and create a level playing field for all its members, not just certain groups. “Corporate only” reform, which has been suggested by some as the quickest route to passing a bill, would disadvantage a significant portion of businesses in the food industry including the fresh produce industry.

United Fresh Coalitions & PartnershipsImmigrationAgriculture Workforce CoalitionBusiness Industry Political Action CommitteeEssential Worker Immigration Coalition ImmigrationWorks USANational Council of Agricultural Employers Partnership for a New American Economy

Health & Nutrition Child Nutrition ForumLet’s Move InitiativeNational Alliance for Nutrition & ActivityNational Fruit and Vegetable Alliance

TransportationAgriculture Transportation CoalitionAgriculture Transportation Working Group

Agriculture Alliance for Food & FarmingFruit and Vegetable Dispute Resolution CorporationMarket Access Program CoalitionMinor Crop Farm AllianceSpecialty Crop Farm Bill AllianceUnited States Chamber of CommerceUSDA Women in Agriculture

Food Safety Alliance for Listeriosis PreventionAssociation of Food & Drug Professionals (AFDO)Center for Produce SafetyFood Safety Preventive Controls Alliance (FSPCA)FSPCA Model Plans Working Group Food & Agriculture Sector Coordinating CouncilFood and Beverage Industries AllianceHygenic Design Summit Institute of Food TechnologiesInstitute for Food Safety and Health (IFSH)International Food Protection Training Institute (IFPTI)International Association for Food ProtectionInternational Federation of Produce StandardsListeria Working Group Local Food Safety Collaborative ProjectPartnership for Food Safety EducationProduce Industry Alliance National Advisory Committee on Microbiological Criteria for Foods Produce GAPs Harmonization Initiative - Technical Working Group; Steering Committee; Calibration Committee; Operations CommitteeUC Davis Advanced Produce Safety WorkshopWhole Genome Sequencing Alliance

Thomas E. Stenzel Robert L. GuentherPresident & CEO Senior Vice President, Public Policy202.303.3406 202.303.3409tstenzel@unitedfresh.org rguenther@unitedfresh.org

Lorelei DiSogra, Ed.D., R.D. Dr. Jennifer McEntireVice President, Nutrition & Health Vice President, Food Safety & Technology202.303.3403 202.303.3419ldisogra@unitedfresh.org jmcentire@unitedfresh.org

Julie Manes Angela Bezon TiwariDirector, Government Relations Director, Grassroots & Political Action202.303.3404 202.303.3416jmanes@unitedfresh.org atiwari@unitedfresh.org

Erin Grether Lootens Parker LinnManager, Grassroots Coalitions Government Relations Assistant202.303.3402 202.303.3423egrether@unitedfresh.org plinn@unitedfresh.org

United Fresh Key ContactsFebruary 14-16 United Fresh Government Relations Washington, DC Winter Meeting and Board Fly-In

June 13-15 United Fresh 2017 Convention and Chicago, IL Annual Meeting

Sept 18- 20 United Fresh Annual Washington Washington, DC Conference

Important 2017 Dates

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