Industry's "badge of honor" celebrating its 100th year
Industry's "badge of honor" celebrating its 100th year
Since 1901, The Blue Book has been considered the financial bible by members of the produce industry, who refer to it for comprehensive information regarding current and prospective clients and business partnerships.
In 1905, The Blue Book, published by the Produce Reporter Co. in Carol Stream, IL, implemented its Trading Membership designation as a way to recognize firms that have demonstrated themselves to be financially sound and in possession of an exceptional reputation for honest trading policies and payment practices.
In the century that has passed since the Trading Member designation was established, the criteria remain stringent, with a mere 10 percent of members deserving of the honor.
Specifically, members achieve the Trading Member designation based on information garnered from Trade Experience Surveys submitted by other members. With a scale of 1X to 4X, with 4X being the highest, Trading Members maintain an average of 3.35X and a 'B' or better pay description, indicating that most vendors report being paid in 28 days or less between invoice date and receipt of check.
To merit the honor, a company?s key principals (defined as officers or owners of record) must also have established and maintained in its line of business over at least five years an unusually fair trading policy to complement its sound financial position.
Another eligibility requirement is that all Trading Members agree to arbitrate through the Produce Reporter Co. any and all disputes or misunderstandings with a Trading Member.
The Blue Book also bestows Transportation Member designations on companies that uphold highly ethical business practices and an impeccable financial standing in the transportation end of the produce industry.
?Trading Member companies are the "best of the best? in the industry," said Jim Carr, president of the Produce Reporter Co. "In addition to their stable business practices, they have proven to be businesses with high moral standards that show respect toward their customers and competitors."
Mr. Carr said that The Blue Book?s highly trained staff constantly investigates the financial standing of its member companies, which submit audited financial statements or tax returns for review. If a ratings expert detects a change in the financial stability of a company, that company?s principals will be contacted and the issue brought to their attention.
?We try to give people an opportunity to correct the situation," said Mr. Carr. "Things will happen from time to time," such as a poor market in a specific year or a personal situation that might have had an effect on the business. In such a circumstance, "We might lower a rating from a 4X to a 3X, or add an 83 (indicating there is a special circumstance) to their report."
Mr. Carr said that the Trading Membership designation is occasionally removed from a company, but it is not a common occurrence. "We have removed several in the past couple of years. Usually, once a company earns the right to be called a Trading Member, they work very hard to maintain it. It's a matter of pride."
That pride factor was echoed by some of the current Trading Member firms.
Fred Duckwall, president of Duckwall-Pooley Fruit Co. in Hood River, OR, said, "Once you achieve the 4X rating, there is more incentive to maintain it. It's a point of pride."
Mr. Duckwall, whose firm is one of the older Trading Members, having received the designation in 1922, said that being a Trading Member sends a message to both suppliers and buyers that Duckwall-Pooley is a solid company that does business on a high moral level.
Adams Bros. Produce Co. in Birmingham, AL, is the third-oldest Trading Member, having earned the designation in 1918. Carl Adams, president of the company, said, "We have a reputation for being honest in an industry that is not always honest, and being a Trading Member reinforces that."
One example of how the Trading Membership has worked in Adams Bros." favor is that when times are tough and product might be in short supply, "I've been able to do business because suppliers know that they will get paid in 24 days," said Mr. Adams.
Mr. Adams also said that there were times when a truck has come in short on a load, and when he brought it to the attention of the shipper, "the shipper never questions me, because they all know that we are honest and good to our word."
Tim Fleming Sr., executive vice president of Strube Celery & Vegetable Co. in Chicago, said that the company?s 92-year heritage in the industry, along with its Trading Membership designation and solid reputation, are "all part of an equation for success."
Mr. Fleming related that when he first broke into the industry in 1967, Strube CEO Bob Strube stressed to him the importance of the company?s reputation and its status as a Trading Member " and the need to maintain that standing. He said that it's something the new generation of leaders at Strube " he, Jan Fleming and David Watson " also hold in high esteem.
Mr. Fleming believes that being a Trading Member has helped Strube gain new business throughout the years. "This industry is made up of relationships," he said. "It's almost like a dating service. You want to find someone in a certain area that would be a good partner, and someone with a Trading Membership represents a good potential mate."
Having earned the designation in 1929, Strube is one of the older Trading Members, and Mr. Fleming said that the company is proud of its standing and accomplishments. "We strive to maintain a high degree of ethics and morals in business, and the Trading Membership recognizes that," he said. "As a Trading Member, we try to be an example to the rest of the industry."
Thomas Produce Sales in Nogales, AZ, is one of 14 companies that will be listed as a Trading Member for the first time in the April 2005 edition of The Blue Book. According to Chuck Thomas, "It is an honor because it shows that both suppliers and receivers enjoy doing business with us."
While Mr. Thomas gives credit to the companies that have held Trading Member status for decades and generations, he said that it is the new designees that he especially admires. "Especially in this day and age, it shows that [new designees] have been working especially hard and doing the things they need to do to achieve it."
Another company that will appear as a Trading Member for the first time in the April 2005 Blue Book is United Fruits (California) Corp., an exporter in Santa Monica, CA. According to company President Jim Peterson, "It's humbling because becoming a Trading Member is based on feedback from the people you do business with. It won?t change how we do business, though. We?ll continue to uphold the same principles and ethics that we?ve had since I started the business in 1979."
Mr. Peterson said that the produce industry is unique since it's not uncommon for business transactions totaling hundreds of thousands of dollars to be conducted on the phone. "I use The Blue Book constantly when determining who to do business with, and when I see someone who is a Trading Member or who has a 4X rating, I have confidence in entering into business with them."
Marty Craner, president of B&C Fresh Sales Co. in Orange, CA, said that the Trading Membership designation her company achieved this year is a "great source of pride. It's the payoff for doing business the right way."
Ms. Craner anticipates that her company, which was founded in 1988, will gain more status as a Trading Member. "I think Trading Members are the benchmark. They set the example for the rest of the industry. When someone is thumbing through The Blue Book looking for companies to do business with and they see a company that is a Trading Member, it carries clout."
In 1905, The Blue Book, published by the Produce Reporter Co. in Carol Stream, IL, implemented its Trading Membership designation as a way to recognize firms that have demonstrated themselves to be financially sound and in possession of an exceptional reputation for honest trading policies and payment practices.
In the century that has passed since the Trading Member designation was established, the criteria remain stringent, with a mere 10 percent of members deserving of the honor.
Specifically, members achieve the Trading Member designation based on information garnered from Trade Experience Surveys submitted by other members. With a scale of 1X to 4X, with 4X being the highest, Trading Members maintain an average of 3.35X and a 'B' or better pay description, indicating that most vendors report being paid in 28 days or less between invoice date and receipt of check.
To merit the honor, a company?s key principals (defined as officers or owners of record) must also have established and maintained in its line of business over at least five years an unusually fair trading policy to complement its sound financial position.
Another eligibility requirement is that all Trading Members agree to arbitrate through the Produce Reporter Co. any and all disputes or misunderstandings with a Trading Member.
The Blue Book also bestows Transportation Member designations on companies that uphold highly ethical business practices and an impeccable financial standing in the transportation end of the produce industry.
?Trading Member companies are the "best of the best? in the industry," said Jim Carr, president of the Produce Reporter Co. "In addition to their stable business practices, they have proven to be businesses with high moral standards that show respect toward their customers and competitors."
Mr. Carr said that The Blue Book?s highly trained staff constantly investigates the financial standing of its member companies, which submit audited financial statements or tax returns for review. If a ratings expert detects a change in the financial stability of a company, that company?s principals will be contacted and the issue brought to their attention.
?We try to give people an opportunity to correct the situation," said Mr. Carr. "Things will happen from time to time," such as a poor market in a specific year or a personal situation that might have had an effect on the business. In such a circumstance, "We might lower a rating from a 4X to a 3X, or add an 83 (indicating there is a special circumstance) to their report."
Mr. Carr said that the Trading Membership designation is occasionally removed from a company, but it is not a common occurrence. "We have removed several in the past couple of years. Usually, once a company earns the right to be called a Trading Member, they work very hard to maintain it. It's a matter of pride."
That pride factor was echoed by some of the current Trading Member firms.
Fred Duckwall, president of Duckwall-Pooley Fruit Co. in Hood River, OR, said, "Once you achieve the 4X rating, there is more incentive to maintain it. It's a point of pride."
Mr. Duckwall, whose firm is one of the older Trading Members, having received the designation in 1922, said that being a Trading Member sends a message to both suppliers and buyers that Duckwall-Pooley is a solid company that does business on a high moral level.
Adams Bros. Produce Co. in Birmingham, AL, is the third-oldest Trading Member, having earned the designation in 1918. Carl Adams, president of the company, said, "We have a reputation for being honest in an industry that is not always honest, and being a Trading Member reinforces that."
One example of how the Trading Membership has worked in Adams Bros." favor is that when times are tough and product might be in short supply, "I've been able to do business because suppliers know that they will get paid in 24 days," said Mr. Adams.
Mr. Adams also said that there were times when a truck has come in short on a load, and when he brought it to the attention of the shipper, "the shipper never questions me, because they all know that we are honest and good to our word."
Tim Fleming Sr., executive vice president of Strube Celery & Vegetable Co. in Chicago, said that the company?s 92-year heritage in the industry, along with its Trading Membership designation and solid reputation, are "all part of an equation for success."
Mr. Fleming related that when he first broke into the industry in 1967, Strube CEO Bob Strube stressed to him the importance of the company?s reputation and its status as a Trading Member " and the need to maintain that standing. He said that it's something the new generation of leaders at Strube " he, Jan Fleming and David Watson " also hold in high esteem.
Mr. Fleming believes that being a Trading Member has helped Strube gain new business throughout the years. "This industry is made up of relationships," he said. "It's almost like a dating service. You want to find someone in a certain area that would be a good partner, and someone with a Trading Membership represents a good potential mate."
Having earned the designation in 1929, Strube is one of the older Trading Members, and Mr. Fleming said that the company is proud of its standing and accomplishments. "We strive to maintain a high degree of ethics and morals in business, and the Trading Membership recognizes that," he said. "As a Trading Member, we try to be an example to the rest of the industry."
Thomas Produce Sales in Nogales, AZ, is one of 14 companies that will be listed as a Trading Member for the first time in the April 2005 edition of The Blue Book. According to Chuck Thomas, "It is an honor because it shows that both suppliers and receivers enjoy doing business with us."
While Mr. Thomas gives credit to the companies that have held Trading Member status for decades and generations, he said that it is the new designees that he especially admires. "Especially in this day and age, it shows that [new designees] have been working especially hard and doing the things they need to do to achieve it."
Another company that will appear as a Trading Member for the first time in the April 2005 Blue Book is United Fruits (California) Corp., an exporter in Santa Monica, CA. According to company President Jim Peterson, "It's humbling because becoming a Trading Member is based on feedback from the people you do business with. It won?t change how we do business, though. We?ll continue to uphold the same principles and ethics that we?ve had since I started the business in 1979."
Mr. Peterson said that the produce industry is unique since it's not uncommon for business transactions totaling hundreds of thousands of dollars to be conducted on the phone. "I use The Blue Book constantly when determining who to do business with, and when I see someone who is a Trading Member or who has a 4X rating, I have confidence in entering into business with them."
Marty Craner, president of B&C Fresh Sales Co. in Orange, CA, said that the Trading Membership designation her company achieved this year is a "great source of pride. It's the payoff for doing business the right way."
Ms. Craner anticipates that her company, which was founded in 1988, will gain more status as a Trading Member. "I think Trading Members are the benchmark. They set the example for the rest of the industry. When someone is thumbing through The Blue Book looking for companies to do business with and they see a company that is a Trading Member, it carries clout."
