11/28/05 Another giant reaches out

11/28/05 Another giant reaches out

One noticeable trend in the retail world these days, in the context of agriculture, is the attempts by mega-corporations to reach out. They reach out to the producers of their raw products to explain what it takes to satisfy customer demand yet assure that both the retailer and the producer remain in business. They reach out to consumers to explain how important agriculture is to both the livelihood of their industry but also the American way of life. Wal-Mart officials have spent the last two years reaching out in those realms, with an example being a session on Wal-Mart's definition of its relationship with the produce industry during the annual Washington State Horticultural Association convention. Now another giant is doing the same thing. Representatives of McDonalds attended the recent Washington Cattlemen's Association convention and will be on hand for the 2005 Hort Association convention. John Hayes is Senior Director of McDonald's U.S. Supply chain. And at a recent symposium in Chicago, Hayes was quick to point out that the success of his business was vitally dependant on the success of U.S. farmers and ranchers. HAYES: McDonalds is dependent on all areas of the agricultural community. If you look across the board, whether its beef, pork, dairy products, in virtually every category we are either one of the largest or the largest single purchaser. So it's very important for us to produce a very robust system out there that McDonalds wants and that our producers expect. So we value our relationship with American agriculture. And many in the Northwest and U.S. like what McDonalds has been doing these days as far as support of American ag. The fast food chain is the single largest buyer of U.S. beef, potatoes, and now, with recent introductions of its Apple Dippers and Fruit Salad products, apples. But Hayes says the reciprocal effect of consumers understanding the importance of U.S. agriculture to McDonalds and the world is ag producers understanding that they are not selling a commodity but fresh, high quality raw ingredients needed to provide a complete dining experience for the consumer. The way Hayes puts it, buying food is a much more personal and emotional experience than buying a manufactured product. HAYES: I think the American agricultural producer needs to understand that, because sometimes there are too far removed from that marketplace. They don't see what happens in the grocery store or in the restaurant when a consumer comes in and wants to ask questions about the products that they are going to buy. And I think we're all responsible to that consumer. It's really the American consumer coming to agriculture through McDonalds and we take very serious that responsibility.
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