Big box, lower cost

A U.S. Department of Agriculture study looks at the impact of nontraditional retailers like Wal-Mart, Costco and Target on the way the Consumer Price Index is calculated. The USDA says the share of sales going to traditional retailers fell from 82% in 1998 to 69% in 2003. The study noted that dairy prices at the big box stores were 5% to 25% lower than at conventional supermarkets. Because the CPI has not kept up with the changing ratio of sales in big box stores, the gains in the CPI may be overstated. In other big box news, Wal-Mart reported positive sales growth in December.

Picking at food with vigor

A New York Times article previews what is now widely expected to be active Congressional inquiry into food safety regulation in the coming year. The reporter states, "A population panicked by two major food poisoning incidents this year will push for more frequent food safety inspections, healthier food at restaurants and schools, and greater accountability from growers and processors."
Whether or not the population is panicked is perhaps open to debate, but clearly many are distressed. And Congress is dusting off legislation that would "get a tighter grasp on farmers and food processors," the article notes. It will be a happy new year if the industry can translate this activist Congress into an ally for funding not only for food safety regulation but also expansion of fresh produce demand through the farm bill.
In what could be promising news, a vaccine against E. coli in cattle has been granted preliminary approval in Canada. This wouldn't be a panacea; the article points out the pathogen can still be carried in wild animals and enter the environment through contaminated ground water.