Kathy Kuzava, president of the Georgia Food Industry Association, took time out during one of her busiest seasons of the year – the legislative session that just got underway – to share her thoughts on several issues with existing, or potential, impact on Peach State grocers.
Can you tell us the latest on the safety of chicken and eggs due to the recent bird flu outbreak?
Georgia Agriculture Commissioner Tyler Harper reassured Georgians that poultry products available for retail sale in Georgia are safe and wholesome.
According to the commissioner, “Every Georgian can and should have 100 percent confidence in the safety and security of poultry products offered for sale in the state of Georgia.”
Highly Pathogenic Avian Influenza was detected in a commercial flock in Georgia for the first time since the outbreak began in 2022.
Harper said, “The recent detection of HPAI in a commercial poultry flock in Elbert County will not impact Georgians’ ability to purchase poultry products like meat or eggs at the local grocery store or restaurant, nor will it impact retailers’ ability to offer these products for sale. Georgia and USDA have rigorous meat inspection standards to ensure the safety of our food supply, and no infected birds have entered the food supply chain.”
Talk about Georgia’s economy.
Georgia’s economy continues to be strong, and the state has been named “top state for business” for an unprecedented 11 years in a row. Our population, which hit 11 million for the first time in 2023, continues to grow.
Gov. [Brian] Kemp continues to push for a strong pro-business agenda and announced the acceleration of Georgia’s historic income tax cuts, with a proposal to drop the income tax rate to 5.19 percent this year.
A flourishing population and sustained job growth will keep Georgia’s economy growing in 2025 – just a bit more slowly than in 2024, according to economic forecasters at the University of Georgia Selig Center for Economic Growth.
The forecasters report:
- Georgia’s economy is projected to grow by 2.4 percent in 2025, a slowdown from the 3.1 percent the state saw in 2024. However, the state’s GDP is projected to grow faster than the nation’s, which forecasters project to grow by 1.6 percent in 2025.
- The number of jobs will rise by 1 percent in 2025, slower than the 1.5 percent gain estimated for Georgia in 2024 but higher than the national job growth rate of 0.6 percent. The report says that Georgia is likely to see job losses in retail and information due to advances in technology and competition from online retailers.
- Georgia’s unemployment rate is poised to increase from 3.7 percent to 4 percent, lower than the 4.3 percent expected at the U.S. level. This increase in unemployment will be due to slowed hiring rather than layoffs. This slight loosening of the labor market will help hold inflation steady at 3.0 percent in 2025.
How will the new administration in Washington affect the food industry?
With President Donald Trump and a Republican Senate and House now in control, we are hopeful to see an extension in the 2017 corporate tax cuts and an ease of regulations for grocers.
Our industry has been concerned over the Environmental Protection Agency’s refrigeration rules, as well as the Food and Drug Administration’s FSMA 204, the new food traceability rule set to take effect in January 2026.
FMI, NGA, our retailers and wholesalers have been working for an extension for compliance with FSMA. We are cautiously awaiting how Trump’s call for high tariffs may affect the price of groceries.
[RELATED: NGA Backs Senate Resolution To Overturn EPA’s Final Rule]
How important is tort reform to Georgia’s grocers?
Lawsuit reform is GFIA’s No. 1 priority. Even with the governor’s backing, this will be a tough battle to fight. When driving down the interstate, pay attention to how many billboards promise a windfall to anyone that has an accident. The television and radio advertisements encourage the public to use our businesses as an ATM.
Georgia grocers across the state have experienced a surge in frivolous lawsuits and a skyrocketing cost of insurance coverage in Georgia. Meaningful and balanced legislation is needed to protect our customers and our grocers, who are the backbone of every community.
Georgia legislators began their new legislative session on Jan. 13, and we applaud Kemp for making it clear that lawsuit reform is his top legislative priority. He said, “The tort reform legislation my office will introduce in the coming days will be comprehensive – but fair. Because in Georgia, we believe those who do wrong should be held accountable. And if you have been wronged, you deserve justice!” He even hinted at a possible Special Session if meaningful, impactful tort reform is not passed this session.
During one of the governor’s listening sessions, GFIA board member John Triplett, co-owner of Brunson and Triplett Enterprises, a 10-store, family-owned supermarket company, thanked our elected officials for addressing our industry’s concerns.
“The increased cost of liability insurance could result in the closure of some grocery locations, causing food deserts,” he said.
In recent years, the number of lawsuits and their costs have risen at disproportionate rates compared to other Southeastern states, raising the cost of doing business in the state and hurting competitiveness. In fact, a study by The American Tort Reform Foundation shows that abuse of a civil justice system costs the average Georgia family $5,050 per year.
A Georgia grocer explained, “I don’t believe customers understand that when people file a frivolous slip-and-fall claim, it hurts every hardworking customer through higher prices.”
How can The Shelby Report readers help with the cause?
The GFIA looks forward to working with the governor and the General Assembly to advance this critical legislation.
Real examples from business owners of higher insurance costs or frivolous lawsuits are needed so legislators understand the importance of relief. The GFIA has set up an Action Center on its website, www.GFIA.org, that will connect retailers to their legislators along with prepopulated messages to send. Also, we would love to have every Georgia grocer visit the Georgia Capitol in the next few months.
The governor referenced Triplett in his State of the State address when he said that one business owner’s statement stuck out to him: “At this point, I don’t feel like I’m able to run my business. I’m just trying not to lose it.”
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