DENVER (March 19, 2010) United States Potato Board (USPB) President and CEO Tim OConnor addressed the Board Members and industry members who traveled to Denver, CO, March 9-12,for the USPBs 38th Annual Meeting at the Westin Tabor Center. His remarks focused on the importance of demand for potatoes and called for competition amongst industry sectors to diminish.
Divisions amongst industry sectors are not helpful in responding to and solving the industrys most significant problems: declining demand, the threat of acrylamide, obesity, low-carb diets, changing consumer lifestyles and meal preferences. These problems are not sector-oriented and require the entire industrys concerted effort to overcome.
Increasing long-term demand is the industrys biggest problem, OConnor said. Declining demand is driving the entire industry; in fact, all of our greatest threats are industry related and not specific to one or just a few sectors.
If we dont solve these issues, tomorrow looks just like yesterday for the industry. It is critically important the USPB continues to address long-term demand in its next five-year Long Range Plan. Our largest problems and best opportunities are long-term.
To emphasize the need for the USPB to remain focused on the continued development of long-term demand, OConnor distributed the results USPB programs delivered during Fiscal Years 2005-2009, for the full Board, and the industry partners in attendance to consider:
International Marketing
o US Potato exports have exceeded $1 billion the past two years supported by the USPBs market access and development program initiatives
o 444 new products developed, 108 of which have been commercially launched
o 572 new menu items have been introduced
o 100 customers have switched their purchasing to US potato products
o 124 retailers now carry US potatoes in their chains
o 41 samples of US potatoes have been sent to interested buyers
o US potatoes are being sold in 64 new channels
Domestic Marketing
o 10% increase in potato volume and 4.8% increase in dollar sales, on average, have been attained by retailers who have successfully implemented USPBs Best-In-Class programs
o 10% improvement in consumers attitudes about the nutritional value of potatoes
o 62 chefs, representing 51 restaurant chains, with a total of 113,805 units and $150 billion in sales, have attended the USPBs Foodservice Seminars. Forty percent of which have added new potato items to their menus
o 4 nutrition research studies completed in the area of potassium, antioxidants, Glycemic Index and satiety; and one weight management study, currently underway, to reinforce the positive nutrition profile of the potato
o 84 healthy potato recipes added to consumer recipe database
o 7,066 news stories about potato nutrition have been published or broadcast in newspapers, magazines, television, radio and online media
o 5.25% increase in potato menu mentions on Top 200 restaurant chain menus between second half of 2005 and first half of 2008
Although these results from past USPB program work show definite maximization of industry resources increasing the demand for potatoes and potato products, there are still difficult challenges. Why havent we fixed the industrys declining demand? OConnor inquired.
The answer is declining demand is more than a USPB problem, it is an industry problem. Those of you who produce and market potatoes must find ways to make your products more convenient. We need your help making potatoes fit into consumer lifestyles and unlocking positive nutrition messages.
Nutrition and convenience are our two barriers, and the USPB simply does not have all of the bells and whistles to solve these problems without your help and support. This is hard work, but we must stay the course and keep working on issues as they arise, together, as an entire industry.
USPB
