By:
Chuck Woods (352) 392-1773 x 281Source(s):
Jeffrey Brecht jkb@ifas.ufl.edu, (352) 392-1928 ext. 213
Jean-Pierre Emond jpemond@ufl.edu (352) 392-1864 ext. 229
Scott Charlton scott.charlton@publix.com (863) 284-5562
Jeff Wells Jeff@agware.com (813) 752-7952 ext. 223
GAINESVILLE, Fla. — Described by researchers as the first of its kind in the world, the new Center for Food Distribution and Retailing at the University of Florida will help the nation’s $950 billion retail food industry provide consumers with high quality products at affordable prices.
The center will conduct research and education on the entire food distribution chain from farm to fork, with an emphasis on perishable food products such as fresh produce, meat, fish and baked goods, said Jeffrey Brecht, director of the center at UF’s Institute of Food and Agricultural Sciences.
He said the center will also focus on improving packaging design and developing new technologies such as radio frequency identification on food products to replace the current bar code system and speed customers through the checkout counter.
“When it comes to perishable food products — which account for half of all retail food sales — high losses translate into razor-thin profits that average about 1.4 percent,” Brecht said.
“For perishables, only 19 percent of the retail price represents the amount paid to growers,” he said. “The balance covers marketing and distribution as well as losses, which means there are real opportunities for improving the process from growers to the shelves of a retail store.”
One of the best ways for a retailer to keep or gain market share is by presenting a perfect produce section, he said. The positive image gives customers a better perception of the overall quality of the business.
“In the minds of many customers, if the store provides high quality fresh produce, it is probably maintaining the same high quality for other products in the store,” he said.
“However, keeping this ‘freshness image’ requires an inventory turnover of almost 50 percent each day – the highest percentage in a retail store after the meat and fish sections.”
As a result, the average lost revenue for a fresh produce section in a supermarket is about $200,000 per year, said Brecht, a horticultural sciences professor.
The interdisciplinary center, which includes scientists from five UF departments working in cooperation with major national food distributors and retailers, will generate research-based information for the food industry, consumers and students. Participating UF departments include agricultural and biological engineering, food and resource economics, food science and human nutrition, horticultural sciences and plant pathology.
Jean-Pierre Emond, an associate professor of agricultural and biological engineering and co-director of the UF center, said their advisory board includes executives from major supermarket chains such as Ahold, Publix and Wal-Mart. More than $1 million in research support commitments have already been received from firms such as Franwell Inc. in Plant City, Fla.; Ingersoll-Rand Co. Ltd., in Bridgeton, Mo.; and IPL Inc. in Quebec, Canada.
“While the primary focus is the Florida food distribution and retailing industry, the UF center will have an impact on the worldwide industry,” Emond said. “The center will also introduce new concepts in food distribution and retailing at the undergraduate and graduate levels as well as through continuing education programs.
“Outreach efforts will target the entire food industry, ranging from growers and packers to shippers and transportation services as well as warehouse operators, wholesalers and retailers.”
He said radio frequency identification — or RFID — is one of the hottest new technologies in the distribution and retailing industry, and it will eventually make bar codes on products obsolete.
“RFID tags will revolutionize the checkout counter,” Emond said. “Instead of waiting for individual food items to scanned, customers will be able to have the cost of all their purchases totaled electronically in a matter of seconds.”
The tags contain a microchip and a tiny antenna that send the price and other information about the product to a computer. In the future, the technology will allow products to be tracked through every stage of the supply chain, recording temperature, shock and other conditions during shipping, Emond said.
“We will work closely with the industry to help them adopt these new technologies to limit losses and make further improvements in freshness, quality and safety,” Emond said.
He said 40 percent of the perishable produce from Central and South America enters the United States through Florida, making the state a logical site for the new center. Because of the rapid globalization of agricultural trade, the center is expected to become a valuable source of information for food distribution.
Scott Charlton, senior vice president of manufacturing and distribution at Publix Supermarkets Inc. in Lakeland, Fla., said the UF center is “a valuable partner providing a unique level of expertise that is not readily available to our industry. It will help us improve overall quality and service to our customers.”
Jeff Wells, president and chief executive officer of Franwell Inc., said its relationship with the new food distribution and retaining center is an important strategic alliance.
“The center provides a platform for our retailing customers who are competitors to collaborate in solving difficult problems that affect us all,” he said. “This shared cooperation would not be possible outside the center, which provides a framework for research on neutral ground for all its members.”
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