2010 ABA Annual Convention – Rising to the Challenge - Leading in Times of Change

Without a doubt, this past year has been tremendously challenging for our country and for our industry. Our country is experiencing the most difficult economic times since the Great Depression.

The current so-called, “Great Recession” has had a tremendous impact to our economic health and confidence in free enterprise. Once again, it will be the entrepreneurs and risk takers, including bakers and suppliers, that will lead our country back. While Washington and many states debate and argue over how best government can help, it will be the baking industry leaders gathered at the 2010 ABA Convention who will make the important decisions that will help start to put our country back on the right path.

The 2010 ABA Convention is designed to provide attendees with ideas, strategies and hopefully motivation to lead the economy back – one baker or supplier at a time. Governor Jeb Bush will highlight successful leadership strategies for businesses and government. Todd Jones with Publix will discuss doubling down on customer service and how bakers can collaborate on this business growth strategy. Rich Karlgaard of Forbes magazine will provide keen insights into the current status of our economy and where it might be heading. U.S. Chamber of Commerce President Tom Donahue will share his thoughts on how to restore confidence and support for our free enterprise system. Obviously having the right political environment to spur sustainable business growth is critical and Eugene Robinson of MSNBC and Bill Kristol of Fox News will debate this at the American Bakers PAC dinner.

The convention also will focus a little closer to the baking industry with a panel of members of the Grain Foods Foundation Clinical Advisory Committee providing valuable information for each baker to lead the debate over healthy lifestyles both in Washington and in their local markets.

Equally as important as the speakers and discussions, are the opportunities to network with peers, customers and suppliers. It is tempting to stay close to the business and trim travel costs during tough economic times, but it is precisely during these times that the industry needs to gather to share experiences, swap ideas and develop strategies. The 2010 ABA Convention, March 14-17, in Boca Raton, Fla., is the place to make that happen.

Sincerely,

Robb MacKie
ABA President & CEO

What a Difference a Year Can Make

Policy Making by Urban Myth

The recent controversy over the science surrounding global warming is a clear precursor to the looming debates over obesity, nutrition and labeling policy.

I seriously doubt there is an orchestrated campaign to promote nutrition policy based on conventional wisdom rather than evidence. However, some of the recent pronouncements from the First Lady, Members of Congress and political appointees in the Administration seem to be factually challenged. A case in point is in the context of the Child Nutrition Reauthorization, where the First Lady called for more fresh and locally grown fruits and vegetables and less "processed foods" in school meal programs. One admires Mrs. Obama for weighing in on the subject, but pushing limited and expensive food choices with little difference in nutritional value is difficult to justify especially in a time of tight school budgets. It is a further disservice to the 18 million Americans facing hunger related issues.

Another case in point, the misinformed belief by some key officials at the Department of Agriculture and Food and Drug Administration that enriched grain products are of limited nutritional value. As the recent Myth vs. Fact brochure produced by the Grain Foods Foundation clearly illustrates, enriched grains are the key source of 8 of the essential recommended nutrients. 

The ultimate case surrounding sugar has prompted serious calls in Congress for taxing certain beverages and foods containing sugar. Sadly, with rampant consumer confusion over what constitutes a healthy and balanced lifestyle our policy makers who should know better are caught up in promoting urban legend.
 

November 2009 - It's the Economy...
 

I recently met with a U.S. Senator for whom I have the greatest respect. He shared a chilling conversation he had with a member of the Senate leadership that ran to the effect of, “Just give us a little more time to take care of health care, climate change, taxes and federal spending and then we can focus on improving the economy.”
 

When asked whether I thought businesses, particularly small businesses could hang on much longer, I emphatically responded, “No, and with all of the new costs being dumped on them, there won't be much left to rescue.”
 

Certainly, the baking industry has been spared the most severe aspects of the current recession, but our customers have not. Each month the economy loses another half million jobs, production sputters along despite shrinking inventories, and consumer confidence continues to weaken. Regardless of whether one believes our economy has hit bottom yet, no one thinks the recovery will be immediate and robust. If the economy doesn't rebound quickly and strongly, I fear that bakers will share the impact facing other sectors of the economy.
 

Unfortunately, our leaders in Washington have taken their eyes off the ball. None of the front burner issues in Washington would create economic growth. In fact, they all could cost jobs, increase costs to businesses, and explode our national debt. Particularly frustrating is the apparent willingness by the President on down to talk about anything but economic recovery.  
 

As Senator Lincoln (D-AR) said in regard to card check and Senator Lieberman (I-CT) said in regard to health care, with our economy in serious distress Congress and the President should be singularly focused on economic recovery before considering other priorities. Or as former President Clinton was fond of saying, “It's the economy, stupid.”

October 2009 — Regulatory Agencies Cranking up Agendas

The President recently bowed to political reality in stating that climate change legislation was being put off until 2010. His statement indicated that health care reform is priority one for the remainder of this year. Does that mean bakers can breathe a large sigh of relief? The answer is unequivocally no.

While legislation is on the back burner, the Environmental Protection Agency is just getting cranked up. There is much the EPA can do under the broad authority granted to the agency under the Clean Air Act and Clean Water Act and other environmental laws. ABA is bracing for increased regulatory activity that could once again capture bakers in its grasp.

EPA is not the only agency pushing an aggressive regulatory agenda. The Occupational Safety and Health Administration is pushing hard on issues such as diacetyl, combustible dust and, yes, even the oldie but goodie ergonomics. Other agencies, including FDA and USDA are all fully staffed and ready to roll out their own agendas.

ABA’s committees are all working through the details of these regulatory initiatives to determine what impact, if any, they will have on bakers. The ABA Energy and Environmental Health Committee and the Safety Committee have particularly detailed and prescriptive agendas with which to contend. Under very capable leadership, these committees are developing ABA’s strategies to these agendas. 

The success or failure to avoid or at least mitigate the impact of these aggressive agendas will depend greatly on the thoughtful input of each ABA member represented on each ABA committee. One needs only to remember the tremendous savings to the industry as a result of the Energy & Environment Health Committee’s successful negotiation of the industry-wide settlement with EPA over refrigerants. Each ABA member should have an executive at the table to help tackle the coming regulatory wave.