It’s traditional to begin a meeting such as this by reciting accomplishments of the past – what initiatives GMA has led and how we’ve progressed on key objectives. 

Today – instead of looking back – I want to look at the challenges in our future. It is less important to look back at what we’ve accomplished, than to look ahead at the many ways GMA can serve the industry. 

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In the public policy arena, a high priority is to keep the biotech issue from ballooning into the public policy fiasco that unfolded in Europe. We must continue to lead in bringing together all segments of the industry into a working alliance with government to keep your products free from public distrust and controversy over biotechnology. Today, we are awaiting the finalization of new FDA procedures for strengthening the approval of biotech foods, and for voluntary labeling guidance – requested by GMA and FMI – to assure consumers’ confidence in how these products are regulated.

There is also an important international component to the biotech issue. We cannot succeed if we stand alone in the world. We must help ensure a consistent biotech policy in North America and continue to work with and provide our expertise to our counterparts in Mexico and Canada. Simply said, it’s crucial that we establish, maintain and promote a clear and consistent North American policy on biotech foods.  

In fact, the international work on this issue is only just beginning. Our ongoing work within the Codex Alimentarius, an organization of 163 countries that develops regulatory models for use in countries around the world, is critical. We must ensure that Codex does not abandon science-based policy for political factors. We clearly demonstrated our capabilities in this arena in May, when Codex did not accept proposals from the EU on the precautionary principle and mandatory labeling of biotech foods. But this fight is far from over – and we will continue to fight on your behalf to ensure that science-based policy prevails over political policy. 

Additionally, we continue to face a challenge in educating consumers about biotechnology. While the responsibility to inform consumers about the safety and benefits of biotech lies in the hands of the biotechnology industry, GMA is working with these companies to ensure that advertising, public relations and other communications efforts sponsored by that industry are effective. With that said, it is also vital that the biotech companies make good on their promises to our industry and to consumers – promises to make products that have tangible value-added benefits to consumers. Without progress in this area, we run the risk that consumers will never understand or accept this promising technology.

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In international trade, we’re at a critical juncture in making progress to break down barriers that impede our ability to profit and grow by freely moving our products around the world. The Free Trade of the Americas Agreement provides an enormous opportunity to open a large market from Canada to Argentina, but high tariffs on processed foods – the highest of any sector – will almost certainly hinder growth. For example, average tariffs in Latin America on agriculture and food products range from 39 to 54 percent, compared to roughly 15 percent in the United States. And tariffs in the Caribbean are even higher, at 86 percent on average. 

In our testimony last month before the U.S. House of Representatives on proposals for creation of the Free Trade Area of the Americas, GMA reminded Congress that negotiations on agriculture should place significant emphasis on eliminating these trade barriers because of the extraordinary growth potential for processed foods and beverages in the world arena.

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Another area where GMA must continue its leadership initiative is the issue of childhood obesity. Radical proposals that would burden our industry with taxes and restrictions on advertising are becoming more commonplace. GMA will continue its proactive lead on the issue, promoting the positive message of balancing sound nutrition habits with physical fitness, while working with the Administration and the states to ensure public policies that promote physical fitness. We have already begun strengthening efforts to persuade the Administration to reenergize the President’s Council on Physical Fitness and we are supporting state legislation to bring physical fitness back into our schools. Our goal is to address this national health issue in a positive, constructive way that involves all stakeholders.

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As we strive to reach our policy goals, we now also have an opportunity to exercise leadership with the new FDA commissioner, and with Congress, to strengthen the capability of FDA and to ensure it has the resources to do its important work. The FDA must be positioned as a world-class safety agency with the best science and scientists. With the proper resources and increased credibility, we can help assure that public confidence on our food safety system remains high.

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Turning to the other important mission of GMA – our Industry Affairs efforts – we are facing a time when all companies are struggling for top line growth and undertaking massive business transformations to improve supply chain efficiencies. One of our strengths as an organization is our ability to build a critical mass of resources and collaboration to address industry efficiency challenges. Never has that spirit of collaboration been more important than it is today. Seeking alliances with competitors, customers and potential allies outside our “normal” domain will be a requisite for success in the 21^st century. 

With that spirit of collaboration in tow, we’ve just written a new chapter in our history with Saturday’s first CEO/President’s Forum. From this dynamic and thought-provoking session, a new joint industry committee will develop an “industry agenda” of collaborative industry work for the coming years.  

With a new agenda based on collaboration, we cannot overlook the need to improve and modernize outmoded supply chain practices. We must find more creative and results-oriented ways to address costly business practices that have survived the old era into the new. It requires a new drive and commitment to eradicate troublesome problems ranging from unsaleables, to invoice deductions, to non-value added fees and other costs. Our work ahead – the agenda we’ve set for our industry affairs team – has never been more important. And it continues to provide an opportunity for GMA to be an integral part of your business.

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As technology ushers us into a new era, rapidly transforming our businesses and transactions with customers, the development and widespread use of standards is becoming an imperative to success. True e-commerce in this industry cannot occur until global standards are developed to allow company systems and products to communicate through a common language. We must vigorously support the work of the Global Commerce Initiative to create a new level of supply chain efficiency for GMA-member companies and for other manufacturers and trading partners across the world’s borders.

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Finally, you should know that today we truly have a new GMA – a tremendous infusion of new people from all segments of our companies who are engaged in GMA's work, many for the first time. Driven by consolidation and massive organizational restructuring, we have an enormous array of new talent entering the GMA “volunteer workforce.” GMA is reaching out to these new executives to secure their engagement and their understanding of the value proposition that we represent. Part of that connection is conveying how GMA involvement can be an important part of both professional development and industry leadership.  

Since we met last year, we’ve made considerable progress in our organization, with new members and new initiatives to tackle emerging issues. Our alliance with ASMC is a positive outcome for the industry and a positive move in further enhancing our resources. Our new GMA/ASMC Sales Committee, the combining of our work in the GM/HBC area, and a new beginning for GMA in joining in on ASMC’s foodservice work, are all examples of this positive association combination.  

While GMA is operating in a new climate, our mission remains clear. Simply put, we continue to be your advocate – to persuasively and effectively speak for this industry in the nation’s capital, the state capitals and, increasingly, in the global arena; to be your advocate to our customer organizations; to continue working to improve productivity and efficiency; and helping to identify and eradicate business practices that impede those objectives. With your support and your leadership, GMA will continue to be the “go to” organization for accomplishment. 

Thank you.