Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, February 28, 2007

Mexico direct?

Will the pilot program that will soon allow 100 approved Mexican trucking companies to ship beyond the 25 mile border zone result in direct shipments of Mexican produce to U.S. retailers?

From Nogales International:

In about two months, as many as 100 approved Mexican trucking companies will be able to deliver goods beyond the 25-mile border zone for the first time since 1982.At least that's the plan described by U.S. Secretary of Transportation Mary Peters during her Friday visit at the Nogales Mariposa Port of Entry.The yearlong pilot program might seem controversial on many counts, including national security, and its affect on U.S. workers and roadway safety, but Peters said its ultimate goal is an increased efficiency that is expected to be cost effective for both U.S. and Mexican consumers.
With U.S.-Mexican trade rising last year to $332 billion, and Mexico exporting $198 billion in goods to the United States, with more than 80 percent shipped by truck, the time for this move seemed right, said officials."Every day thousands of Mexican trucks must drive across our border, through cities like Nogales, and then come to a stop at an imaginary line," Peters said. "There, these trucks must sit idle until a U.S. truck arrives and the cargo is switched from one to the other.Transferring products from one truck to another costs consumers $400 million a year, the U.S. Department of Transportation says, so this program's aim is to cut those costs.
How will this impact Nogales? In a 2004 story for The Packer, I wrote:
Only big buyers in Southwest U.S. cities are likely to request direct shipments, and only the largest and most sophisticated west Mexico shippers moving high volume commodities will be capable of providing direct service, observers said.
The lack of backhaul cargo for Mexican trucks could be a liability in direct shipments to many cities, distributors said.
"If you look at the issue of direct buying from the farmers, it could be feasible for a few really large shippers and big chains to do it," said Allison Moore, director of communications for the Fresh Produce Association of the Americas.

TK: Those 2004 predictions about direct shipments may underestimate the eventual reality, but Nogales figures to remain the focal point for west Mexico produce for the foreseeable future.

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The importance of Remus

Why is the Uncle Remus Saucy Fried Chicken Restaurant important? It's inside a Chicago Wal-Mart, of course, and it is a sign the retail giant is trying to be a good neighbor and sensitive to local needs. This AP story from STLtoday describes Wal-Mart's urban outreach, characterized by this Chicago store that opened last September. The success of local businesses around the urban Wal-Mart will be closely watched to see if this initiative is a "publicity stunt" or an anchor for redevelopment.

The New York Times takes a run at Whole Foods today in this feature, asking "Is Whole Foods Straying from its roots?" Some jilted organic consumers say the chain is not doing enough for the local growers. Whole Foods move toward the middle is not a problem until their stockholders tell them otherwise.

Here, Target misses the mark, but it's good news. The company beat fourth quarter estimates. It brings to mind what one former Target executive told me about the company. "Ready Fire Aim!", he said, is one of their tenets of business. Now I'm not sure what that means - perhaps they are more nimble and quicker to respond than Wal-Mart - but the concept of shooting first and asking questions later appears to work for them.

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Hearing about horticulture

The House Agriculture subcommittee for Horticulture and Organic Agriculture met this morning. USDA Deputy Secretary Chuck Conner testified for the Administration about the White House farm bill proposal.

Organics seemed to be a hot topic, with one question whether imported organic produce is subject to the same rigor as U.S. grown produce. Another question was about the sustainability of funding for bio-fuel research on cellulosic ethanol.

As an aside, I was talking with Bill Washburn recently and he said an exciting project on producing hydrogen from produce waste is on the verge of wider commercial exploitation. Back to the subcommittee:

Subcommittee chairman Dennis Cardoza, D-Calif., asked Conner about the Administration's position on flex acres. Of course, the White House wants to delete the f&v planting prohibition on farm program acres because of Brazil's challenge to the U.S. cotton program.

"We feel it is extremely important to address this concern raised by the WTO," Conner replied to Cardoza. "We want and we must have direct payments continued to be classified as green box; it's paramount we address the WTO concerns." Cardoza promised further inquiry into the issue.

Cardoza also asked about the EQUIP conversation program and asked how it could be made more accessible to growers. In closing, Cardoza said he was committed to produce a responsible, equitable and innovative farm bill for horticultural producers.

TK: I don't see much give in the Administration's position on the flex acres provision. It will be an important strategic decision to expend a lot of political capital trying to fight it, or simply try to leverage its elimination with greater funding for f&v priorities. I'll be heading to Washington D.C. later today to attend the Ag Outlook meeting, so we'll see if that topic comes up again when Western Growers' Tom Nassif speaks to the conference.

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FDA cutting labs

Despite yesterday's news that the number of FDA food safety inspections dropped by 46% between 2003 and 2006, the news today is that the FDA is proceeding with plans to close more than half of its labs. According to a story reported by Public Employees for Environmental Responsibility, the FDA will act before Congress can stop them.
From their story:

According to briefings of agency staff, FDA’s current network of 13 laboratories will be reduced to six as a result of closing facilities in Denver, Detroit, Philadelphia, Kansas City, San Francisco, Winchester (Massachusetts) and San Juan (Puerto Rico).
"FDA has yet to explain why slashing its network of laboratories will make it more capable of protecting the American people,” stated of PEER Executive Director Jeff Ruch, noting that a previous review by the Government Accountability Office failed to confirm any fiscal savings from a similar laboratory consolidation plan a decade ago. “FDA claims it wants to move into the 21st century but seems determined to leave its own employees behind.”


TK: Critics say the closings will slow agency response time by increasing the miles samples have to be transported for testing. FDA needs to make a case for these closings that makes sense, and so far they haven't.

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War of Words

There continues to be a battle for the hearts. minds but especially the pocketbooks of consumers in the U.K. over the issue of food miles and "carbon footprint." In this article, Kenyan vegetable exporters accuse some U.K. consumers of backstabbing them over the issue.
From The Nation:

Customers of Tesco and Marks & Spencer who pick up a pack of fresh, green, healthy looking beans (most of which is grown in Kenya) will soon be faced with an aeroplane symbol, telling them that the vegetable has been transported by air to the supermarket.
Ambitious strategies unveiled in January by Tesco, the biggest British retailer, and Marks & Spencer both promise to ramp up locally sourced food and cut down on imports, as one of a packet of measures to reduce their carbon dioxide emissions.
Neither firm has offered much detail on when or how they will switch from imports to locally produced food. But their goals will support the growing trend for counting "food miles", a somewhat misleading indicator of pollution that could do significant harm to Kenyan horticultural exports.
First coined in the early 1990s, food miles is narrowly defined as the distance travelled by a food product from its source to the consumer's plate. The longer the distance, the more pollution caused by the food while in transit - a combination of the fuel emissions, and packaging and technology required to keep the food fresh.
Professor Gareth Edward Jones from the University of Wales who is leading a government-funded study into the advantages and disadvantages of consuming locally produced vegetables compared with vegetables from overseas, says transport is only a small part of food's total carbon budget. Where and how vegetables are grown also counts.
"Making fertiliser is a hugely intensive process. Africa doesn't use much fertiliser compared to Europe as it typically uses organic sources," he points out.
Some studies suggest that growing vegetables in a greenhouse could be more harmful than the gases emitted by transport to and from Africa. But the real problem area is much closer to home, says Professor Edwards-Jones.
"Food use in the home - how you cook it, and store it (in a fridge or freezer) - is a much more important share of the energy consumed," he says. "But when we tell this to people in Britain they get very upset. And for the media, conveying the message to get a more efficient cooker or fridge is a boring one."
"Buy local", on the other hand, carries much more sway in a country that has seen income and jobs in its agricultural sector in steady decline.
Professor Edwards-Jones is convinced that recent calls for local sourcing and support for local fresh produce is more about backing the nation's farmers than any environmental concerns.

Professor Edwards-Jones puts it differently: "About 10 per cent of consumers are what I call 'food agitators', or those that are consistently concerned about ethics. They will put pressure on retailers to improve their carbon footprint. The retailers follow these agitators, not the 90 per cent who don't care."
"Food miles is such an emotive issue and unfortunately I think food miles will come out on top, even though it is based on misleading information."

TK: I think Professor Jones makes some good points. How consumers use electricity in their home - note Al Gore's $1,200 monthly electric bill - may have a greater "carbon footprint" effect than food miles. And I do see how that food miles can be seen as a non-tariff trade barrier by exporters in Kenya, New Zealand, Chile and everywhere else where exports are important.

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Fresh Direct guilt

I was reading a blog today about the "moral misgivings" people in NYC have about using Fresh Direct, a food delivery service in the city. All I can think is that the lives of city dwellers are far, far different than my minivan-owning, grocery-shopping, and (relatively) guiltless suburban life. Here is the link to the blog and here is a selection:

If something is convenient, it seems to nullify all debate. Case in point is the ongoing moral struggle seen in patrons of Fresh Direct. They love getting fancy food and fresh produce delivered to their door, but have serious misgivings about the pollution, congestion and waste produced by the company's trucks and packaging. While I do think FD could probably find better packaging methods, I'm not sure I see a way the company could feasibly maintain their delivery schedules without using those big trucks. It kind of seems like the people who are complaining about them are trying to assuage their own guilt over using the service in the first place.The Brooklyn Record had a recent post which led to a lot of discussion about ways in which food delivery companies could reduce pollution. I commented that it was important to remember what a luxury it is to have such a service, and how it comes with a price. At that point I was told that FD is a 'necessity' for certain people, mainly because there is no decent grocery store in their neighborhood. This got me to thinking, we live in a city with one of the most extensive mass transportation systems in the world which, despite its problems, provides its citizens with flat-fare access to most of the city. Yet despite this we have a whole bunch of people who apparently live so far off the grid that they must compromise their ecological morals and, regretfully, have to have their avocados brought to their door.

TK: I'll have to give considerable thought to how I am compromising my ecological morals. I'm drawing a blank so far.

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A poll

As you can see, I've added a poll this week to the blog. The initial question has to do with farm bill priorities. Think of it this way: if there was $1 billion available and it could only go to one priority - the fruit and vegetable snack program, block grants to states or funds for generic promotion - where would you place the funds?

I hope you give the poll a shot. I will leave it up for about a week, give or take. Feel free to submit your idea on this post for the next blog poll.

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Tuesday, February 27, 2007

Downer Dow

The U.S. stock market took a major hit today, a historic freefall that was the worst since 2002. Here is a report from Bloomberg that explains how the plunge was preceded by a 9% drop in China's stock market. The Dow lost as much as much as 546 points, or 4.3%, during the day.
Taking a peak at a portfolio of produce stocks, I didn't see any gainers except a modest showing higher by Fresh Del Monte, which released its fourth quarter and complete 2006 results.

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Dairy's WIC hit

For fresh produce marketers, the USDA's proposed rule that would add fruit and vegetable vouchers to WIC food packages is a slam-bam winner, both to the industry and to WIC participants. But there are other voices. Here is a letter posted to the USDA's Web site about the proposed rule from the Council of Northeast Farmer Cooperatives, a group of dairy outfits:
From the letter:

Reduction in dairy products in the WIC program If the rules as proposed are implemented fluid milk sales to the program would fall by 23%. For cheese it is estimated that the decline in sales would be 35% or 40 million pounds. The total value of the loss in sales of dairy products would be about $400 million or 29% of current WIC annual expenditures on dairy products. These reductions in the use of dairy products will clearly affect both the short and long term nutritional benefits of WIC in negative way.


TK: This excerpt really doesn't address WIC participants being negatively affected. It's all about dairy farmers' incomes. And the fact Agriculture Secretary Mike Johanns well known upbringing on a dairy farm in Iowa can't make this decision easy for him. Still, I think Johanns is committed to acting in accordance with federal dietary guidelines and adding fruit and vegetable vouchers. Perhaps the easiest play of this issue would be to delay it until the next Administration; we can only hope Johanns was serious when he said he wanted his people to get this rule processed by September.


One thing about the dairy folks, though, is they are committed to promotion. Here is an Adage story how dairy assessments are funding a branded "emoticon" to teens.


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LA Times: veggie free speech threatened

That's the gist of an editorial from the LA Times today. The editorial states that legislation introduced by a Thousands Oaks Republican state lawmaker Audra Strickland - which would allow growers to sue anyone who disparages their product - is an infringement of civil rights.
From the editorial:

Food libel laws started springing up after CBS' "60 Minutes" aired an episode in 1989 about the chemical Alar, thought to be a carcinogen, being sprayed on apple trees. Now 13 states have such laws, which got their first court test in 1996, when Texas cattle ranchers used the state's agricultural libel law to sue talk-show host Oprah Winfrey because she aired an episode critical of practices thought to increase the risk of mad cow disease. They lost the case. That didn't discourage Strickland, who introduced her bill after the state's growers were hit hard by an E. coli outbreak last fall traced to California bagged spinach. One of the purposes of the 1st Amendment is to encourage debate, and food libel laws would have a chilling effect on this speech. Though plaintiffs under Strickland's bill would have to prove that defendants knew their statements to be false, or acted with reckless disregard for the truth, the threat of a lawsuit alone is enough to discourage many people from speaking out.

There's a better way to protect farmers from rumors. After losing the Winfrey case, Texas ranchers set up a hotline for people to call if they heard anyone in the media trashing red meat. The offending radio or TV host is then hit with a flood of materials about the health benefits of T-bones. That kind of aggressive PR may not always be pleasant. But it's preferable to laws against criticizing your spinach.


TK: From a distant reading, I think the proposed law does go too far. I think most people are predisposed to believe the best about vegetables; there are no vegetable hate groups, are there? I think the aggressive and positive PR, as the editorial suggests, is more effective than the threat of a lawsuit.

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FDA rapped for declining inspections

The FDA's declining inspections were highlighted in a widely circulated AP story this morning, posted here at the Fort Worth Star Telegram.
The lead paragraph:

The federal agency that's been front and center in warning the public about tainted spinach and contaminated peanut butter is conducting just half the food safety inspections it did three years ago.

.....

Between 2003 and 2006, FDA food safety inspections dropped 47 percent, according to a database analysis of federal records by The Associated Press.
The analysis also shows that there are 12 percent fewer FDA employees in field offices who concentrate on food issues and that safety tests for U.S.-produced food have dropped nearly 75 percent, from 9,748 in 2003 to 2,455 last year, according to the agency's own statistics.



TK: This may not make it any easier to convince consumers that strong federal oversight of produce safety is a step forward.

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Monday, February 26, 2007

New buzz about bees

The New York Times is the latest newspaper to examine the die-offs in bee colonies faced by the nation's bee keepers. Some researchers suggest an "AIDS" of the bee industry might be at work:
From the Times article:

Researchers are also concerned that the willingness of beekeepers to truck their colonies from coast to coast could be adding to bees’ stress, helping to spread viruses and mites and otherwise accelerating whatever is afflicting them.
Dennis van Engelsdorp, a bee specialist with the state of Pennsylvania who is part of the team studying the bee colony collapses, said the “strong immune suppression” investigators have observed “could be the AIDS of the bee industry,” making bees more susceptible to other diseases that eventually kill them off.
Growers have tried before to do without bees. In past decades, they have used everything from giant blowers to helicopters to mortar shells to try to spread pollen across the plants. More recently researchers have been trying to develop “self-compatible” almond trees that will require fewer bees. One company is even trying to commercialize the blue orchard bee, which is virtually stingless and works at colder temperatures than the honeybee.



TK: As I remember from a trip to Leamington a couple of years ago, one Ontario greenhouse was experimenting with sonic waves to help pollination. The story notes imported bees from Australia are being brought in to buck up U.S. honeybees. Now about half of the nation's honeybees are in California pollinating the almond crop. Now covering nearly 600,000 acres of California farm ground, another 100,000 acres of almonds will be added by 2010 - bees willing, that is.

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Shades of green

It ain't easy being green. Especially when being green isn't green at all.
Conducting a study for the Department for the Environment, Food and Rural Affairs, researchers at the Manchester Business School in England said the environmental benefits of organic food are "not clear cut."
Here is the link to the lengthy PDF file, Environmental Impacts of Food Production and Consumption report.

TK: The 199 page report is fill of acronyms, including BREFs, CERA, EIPRO and a half a dozen others. Here are few points from the executive summary:

There is certainly insufficient evidence available to state that organic agriculture overall would have less of an environmental impact than conventional agriculture.

Organic agriculture poses its own environmental problems in the production of some foods, either in terms of nutrient release to water or in terms of climate change burdens.

Evidence for a lower environmental impact of local preference in food supply and consumption overall is weak.

TK: The study says fruits and vegetables account for about 2% of the EU's total global warming potential: Don't ask me how they came up with that stat. Overall this study is fascinating but exceedingly complex and maddeningly inconclusive.

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Free to roam

In perhaps 60 days, selected Mexican trucking companies will have the freedom to drive deeper into the U.S., the Department of Transportation says. But it won't happen without a fight and perhaps further delay.
From the Insurance Journal:

The news that Mexican trucks will be allowed to haul freight deeper into the United States drew an angry reaction Friday from labor leaders, safety advocates and members of Congress. They said Mexico has substandard trucks and low-paid drivers that will threaten national security, cost thousands of jobs and endanger motorists on the northern side of the Mexican border.

TK: The counter from the Bush Administration is that the U.S. inspectors will oversee Mexican trucking companies.

Again from the Insurance Journal:

Access to all U.S. highways was promised by 2000 under the 1993 North American Free Trade Agreement, as was access through Mexico for U.S. carriers. That aspect of NAFTA was stalled by lawsuits and disagreements between the two countries, though Canadian and U.S. trucks travel freely across the northern border. The Bush pilot project will let Mexican truck companies travel from Mexico throughout the United States and back. According to the Transportation Department, U.S. inspectors will inspect every truck and interview drivers to make sure they can read and speak English. They'll examine trucks and check the licenses, insurance and driving records of the Mexican drivers. Inspectors will also verify that the trucking companies are insured by U.S.-licensed firms.
The first Mexican trucks are expected to drive into the United States beyond the border area in about 60 days, the Transportation Department says.

TK: One member of the National Transportation Safety Board worries that the DOT has barely enough inspectors for domestic carriers, much less if the agency divert resources to the border. About 25% of U.S. rigs are taken off the roads after random inspections and the percentage is higher at Texas border crossings. Others are concerned that there will be no way to adequately monitor the time spent behind the wheel for Mexican truckers. Setting aside safety concerns, this rule makes sense for the produce industry, as it figures to take costs out of the system. Congress could put up a detour to this DOT roadmap, though.

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Cuba after Castro

Whatever happened to Fidel Castro? It seems he was deathly ill for a while and now there is nothing in the news about him. I read this Business Week article about life after Castro and find that his death is still "imminent." Meanwhile, U.S. business interests suspect Fidel's brother Raul, five years younger at 75, is poised to expand U.S.-Cuban trade. Some members of Congress are anxious to give agricultural exports to Cuba a boost. Rep. Jerry Moran has introduced H.R. 1026, to "to facilitate the sale of United States agricultural products to Cuba, as authorized by the Trade Sanctions Reform and Export Enhancement Act of 2000."

Moran's bill seeks to clearly define the language from the 2000 legislation. In particular, the bill defines "payment of cash in advance" so as to make it more workable for export sales. Rather than being paid in advance of shipping agricultural products to Cuba, Moran's law would define the term this way:
"The term `payment of cash in advance' means, notwithstanding any other provision of law, the payment by the purchaser of an agricultural commodity or product and the receipt of such payment by the seller prior to--
`(i) the transfer of title of such commodity or product to the purchaser; and
`(ii) the release of control of such commodity or product to the purchaser.

The proposed law would also make it easier for Cuba deal directly with U.S. banks, rather than having to go through third party banks in other countries. The legislation reads:

Notwithstanding any other provision of law, the President may not restrict direct transfers from a Cuban financial institution to a United States financial institution executed in payment for a product authorized for sale under the Trade Sanctions Reform and Export Enhancement Act of 2000 .

TK: I may be a dreamer, but I'm looking forward to the day when Sherri here at Vance books a flight to Havana for me for a convention in Cuba - perhaps a winter meeting of the Florida Fruit & Vegetable Association.

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No E. coli on BJ's Mushrooms

There turned out to be no dangerous E. coli found on lots of mushrooms recalled last week by BJ's Mushrooms, a press release from the company says.
From the release:


BJ's Wholesale Club, Inc. confirmed today that results from two outside laboratories reveal that all Wellsley Farms brand fresh mushrooms tested negative for E. coli. On February 20,
2007, BJ's voluntarily recalled its pre-packaged Wellsley Farms brand fresh mushrooms purchased between February 11 and February 19, 2007 due to a potential health risk


TK: Joe Caldwell of Monterey Mushrooms told me last week the industry might experience this type of "false positive" episode more in the future as retailers implement tests that may point to the presence of bacteria but not necessarily pathogens harmful to humans. We can hope BJ's learned something about their testing process as a result of the recall.

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Rats!

This story notes that the New York City KFC/Taco Bell where a New York TV crew captured "dozens of rats" hard at work just after closing time had passed a heath inspection the day before. Yikes. Also, if you haven't seen the video of the scurrying rats, the linked story has the feed for the video.

"It doesn't look like the inspection that was done Thursday met our standards," said Geoffrey Cowley, a health department spokesman. "I don't want to prejudge that. We're concerned and we're going to carefully reevaluate that inspection."


TK: You think? Don't go out on a limb, Mr. Cowley. This sordid tale doesn't exactly inspire confidence in city inspectors or KFC/Taco Bell.

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The day Bush killed America

The day Bush killed America is the day a guest worker program is passed. That's the outrageous if angry point made in this column posted by Mark Lowry on the American Chronicle.
This is where he loses it:

The ignoble day legislation granting amnesty or guest worker status to millions of illegals is passed, will go down in history with recognition equal to the day John Kennedy died, the Alamo, Pearl Harbor, 9-11, and Neville Chamberlain’s “peace in our time” declaration. All will remember where they were when Bush killed America. Mark that day well; you will need to explain to your children why you did nothing to stop it.

TK: The passion about the immigration issue is easy to underestimate by produce advocates, but reactionaries like Lowry are quick to remind us of this point: No matter how reasoned and strong the arguments are for a guest worker program for agriculture, name calling and fiery rhetoric will likely be the response.

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Sunday, February 25, 2007

Japan takes spuds but not Idaho's

Japan's refusal to take Idaho chipping potatoes in recently reopened trade is frustrating the majority of Idaho growers who do not have the potato cyst nematode. That may not mean much to the Japanese, who are notoriously tough on imports.
From Capital Press:


The Idaho State Department of Agriculture and U.S. Department of Agriculture have tested more than 35,000 soil samples since last spring when the nematode was first discovered.The pest has been found in just seven fields comprising less than 1,000 acres near Shelley, Idaho."Some other states have done some testing, but I don't think it's anywhere near what we've done," said Michael Cooper, ISDA's plant industries bureau chief.


TK: The fallout from the discovery of the potato cyst nematode continues, though reopened chipping potato sales to Japan from Washington, Oregon, California and other potato states not named Idaho will help all potato growers. Meanwhile, one southeast Idaho grower is ready to sue the state over what he said was public disclosure that the potato cyst nematode was found on his ranch.

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The coming trade wars with China

The author of this column makes a sobering and convincing case that China is rapidly gaining leverage over the U.S. in dangerous ways. Peter Navarro, professor at the University of California in Irvine, says China is taking its surplus greenbacks and investing them in the U.S. bond market, keeping our interest rates low. At the same time, China is keeping its exchange rate artificially low, fueling an unabated export boom to the U.S.

Today, as a result of its currency manipulation, China has become the largest monthly net buyer of US securities. More than two-thirds of its massive and highly undiversified $1 trillion in foreign currency reserves are estimated to be invested in US bonds. China will very shortly eclipse Japan as America's largest creditor. And its foreign currency reserves are projected to double within a few short years.
Here's the clear and present danger: What may have started out as a simple mercantilist currency gambit for China to sell its exports cheap and keep imports dear has morphed into a powerful weapon to hold off any effective US response to China's unfair trade practices. And make no mistake: Such practices run the gamut from a complex web of illegal export subsidies and currency manipulation to rampant piracy and woefully lax environmental, health, and safety standards.

From time to time, US politicians have railed against these practices – and the collateral hollowing out of America that China's "weapons of mass production" have brought about. However, any time that the Bush administration or Congress threatens any kind of significant and tangible action – as opposed to simply beating its chest – China can now credibly threaten to stop financing US deficits and start dumping greenbacks.
This is a very credible threat. If executed, inflation, the costs of imports, and interest and mortgage rates would skyrocket. With higher housing costs leading the way, consumers would soon be overburdened. The result: a nasty stagflation shock.


TK: The author predicts the long term picture is even "scarier," if that is possible. In five years, the Chinese government may orchestrate an accelerating acquisition of strategic U.S. companies, thus silencing more voices against Chinese mercantilism. Perhaps one of the most costly parts of the Iraq war is that Congress may not see the warning signs in our one-way trade with China.


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Saturday, February 24, 2007

Food safety a yawner for the U.K. consumer

It's too bad we don't have a mirror poll for the U.S., but this story about a survey in the U.K about consumer concerns finds that food safety ranks low on their list of top worries.
From the story in Food Production Daily:

Food safety ranked 13th in the list of issues consumers cited as among their top concerns in the annual survey by the Food Standards Agency (FSA). The survey helps the FSA set its priorities and focus its resources. Just under one in ten UK respondents, or nine per cent 9%) mentioning food safety as one of their top three issues of concern.

TK: The survey said 60% of consumers, when asked directly, said they were concerned about food safety issues. But crime terrorism and health services topped the list of worries. This survey does show a nice increase in consumer confidence in the U.K.'s FSA since 2000. I would speculate a poll surveying consumer confidence in the U.S. FDA would reflect the opposite trend here over the past year.

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LA produce vendors face investigation

That's the word from the The Los Angeles Times, which reports here about the action related to public health inspections.
From the story:

The county department of public health mandated 63 closures of downtown wholesale produce vendors after an investigation by KNBC-TV revealed unsanitary conditions, vermin and lax regulation at the market housing the vendors, officials said this week. County health officials filed 25 reports of investigation in support of criminal complaints with the city attorney, including one against the firm that operates the Seventh Street Produce Market. Seven more reports will be filed by March 9, according to a public health document. The department also is drafting an ordinance that would require owners of wholesale produce facilities to have public health licenses

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USDA again puts off APHIS fee for Canadian imports

Reaction to the USDA's further delay in the controversial APHIS inspection fees for Canadian fruit and vegetable imports indicate it won't get any easier when the agency finally pulls the trigger. Rep. Louise Slaughter, D-N.Y., chair of the House rules committee, favors eliminating the fee.

The fees were first set to go into effect in November, but then pushback from Canada moved the date to January, then March. This Federal Register notice explains why the effective date was moved from March 1 to June 1.:

We are making this change to allow additional time for us to conclude discussions with the Government of Canada regarding risks, inspections, and costs associated with land-border traffic entering the United States from Canada.

TK: Three delays and counting. Given that track record, I can't see this fee happening as planned in June, either.

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Friday, February 23, 2007

More ports subject to e-manifests

The trials and travails of Mexican trucks making it into Arizona was documented in this blog earlier that detailed problems with the a new CBP requirement for electronic manifests. Now the Customs and Border Patrol is giving notice that trucks entering into New York and Michigan, effective May 24, will be required to provide advance cargo information through the Automated Commercial Environment Truck Manifest System.
From the CBP release:

This is the third group of ports to be required to use ACE for the filing of e-manifest. “The more information we have in advance, the more we can protect the homeland and facilitate commerce,” said Lou Samenfink, executive director for CBP’s Cargo Systems Program Office. “With e-manifests, CBP officers are able to pre-screen trucks and shipments, and dedicate more time to inspecting suspicious cargo without delaying the border crossings of legitimate carriers.”
The use of ACE for filing e-manifest became mandatory on January 25 at land border ports of entry in Arizona and Washington and the ports of Pembina, Neche, Walhalla, Maida, Hannah, Sarles and Hansboro in North Dakota. On April 19, ACE will become mandatory at land border ports of entry in California, New Mexico and Texas. CBP will provide 90 days’ notice through publication in the Federal Register before requiring the use of ACE.


TK: The "facilitating commerce" piece of the ACE system seemed to be missing from the early experience in Arizona, but the industry can only hope the CPB and suppliers are learning to adjust with this rolling phase-in.

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FDA: More questions than answers

The FDA has set the dates for the widely anticipated food safety hearings, and that info and more is found in this link. The first meeting is in Oakland on March 20 and the second in Maryland on April 13. The industry's call for strong federal oversight will be explained in these hearings.

Bring your three ring binder. The FDA wants a lot of input. Here are their questions:

For each stage in the supply chain, and for each industry sector, what are the risks or practices that could lead to microbial contamination of fresh produce?

How can or should current practices be changed to reduce the risk of contamination?

For each stage in the supply chain, and for each industry sector, what current practices (including, for example, following the GAPs/GMPs Guide) reduce the risk of microbial contamination of fresh produce? What data are available to support a conclusion that the risk of such contamination is lower than it would be without the practice in place?

Is fresh produce, or inputs such as agricultural water, sampled and tested for pathogens or indicator organisms at any stage of the supply chain? If yes, please describe the sampling and testing done.
Beyond the Federal actions described in sections I.B. through I.E, what new Federal actions, if any, are needed to enhance the safety of fresh produce? On what aspects of the produce supply chain should the measures focus?


In identifying possible Federal interventions or actions, to what extent can or should we take into account the wide variation within the fresh produce industry with respect to, e.g., the size and type of establishments, the nature of the commodity produced, the practices used in production, and the vulnerability of particular commodities to contamination?

To what extent should such measures apply to specific products, sectors of the industry, regions, or businesses?

For example, is there a need for special treatment for different commodity groups?

What types of records and other information, from what types of facilities, are or would be most useful in facilitating traceback efforts?


Are written food safety plans, written SSOPs, periodic assessments, training, and/or the establishment and maintenance of records useful for risk identification and risk mitigation or management purposes?
If yes, to what extent are these practices in place, and in what sectors of the industry?

How should adherence to the GAPs/GMPs Guide or new produce safety guidance(s) be measured and verified by the grower or operator, government regulators, or third-party auditors, in the event of any new recommended Federal action or in the event you are not recommending any new Federal action?

If you are recommending any new Federal measures, please describe how they might affect certain small businesses, such as roadside stands, farm gate operations, farmers’ markets, or other small businesses involved in direct sales.



TK: As we anticipate these important meetings, is it too much to ask the FDA to provide more answers to the industry and the public about what farming practices led to E. coli contamination of spinach and lettuce in recent foodborne illness outbreaks?

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Sunkist's next steps

Here is coverage from The Packer's Don Schrack about the Sunkist annual meeting in Visalia. .
From Don's story:

Sunkist president and chief executive officer Tim Lindgren on Feb. 21 said total revenues for 2006 were $1.1 billion, an all-time high. He said growers of valencia oranges, grapefruit and lemons enjoyed record or near-record returns. Because of the January freeze, however, Lindgren said Sunkist in 2007 would focus on downsizing operations and reducing expenses. But he expressed guarded optimism.“Sunkist does not expect the freeze to have a materially adverse impact on its financial position,” Lindgren said in a company news release


Here is more coverage from the Tulare Advance Register about how crop expectations are slightly improved.

County crop losses, thought initially to be as high as 80 percent, now are being estimated at about 50 percent, officials at the Visalia Convention Center gathering said. Losses varied wildly depending on location and elevation, growers said
Damage to navel oranges is of greatest concern, Chrisman said. Navels are the major hand-fruit oranges, Chrisman said, while Valencias — which tend to be more thin-skinned and ripen later — are more suited for juice production.


TK: I was visiting recently with Bill Washburn, president of Foodpro International Inc., San Jose, Calif. Washburn has a long association with Lindgren and obviously is a big believer in what he can do for Sunkist. Washburn observes Lindgren, who was president of Sunkist's affiliated cooperative Fruit Growers Supply Company for 26 years, brings a strong operational focus to Sunkist. Washburn said Lindgren will look at cost-savings in the organization from top to bottom, considering everything from Sunkist's pricey headquarters to the number of processing plants to the company's number of sales offices throughout the U.S. Washburn said
This reading of Lindgren comes through in a Sunkist press release about the meeting as well.
"We will challenge every aspect of Sunkist’s operation in order to implement the most effective and cost efficient support for bringing our growers fruit to market…increasing utilization, reducing assessments and increasing returns," Lindgren said in the release Though Lindgren's window as leader of Sunkist is thought to be two years or so, he apparently is not in caretaker mode. Aside from the domestic initiatives, Washburn also notes that Lindgren was busy at Fruit Logistica networking with other global citrus suppliers and identifying opportunities for Sunkist.

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Marler on liability

If you haven't checked out http://www.marlerblog.com/, you may want to. The Seattle lawyer is in the news a ton, first for representing victims of E. coli on spinach, and now for salmonella on peanut butter. In this story about Marler, reprinted on his blog, he seems to say it doesn't matter to him where the fault lies in foodborne illness outbreaks, he and his clients will get paid.
From the Verdictsearch story:

Once the food companies and their insurers understand the concept that they are liable if they are in the chain of distribution, no matter where in the chain the contamination occurred, the focus shifts to damages and what a jury would be likely to award, Marler said.

Later in the piece..

Marler gave an example of his approach to settlement in another set of cases involving contaminated lettuce. "I went into mediation and all the defense attorneys were pointing fingers at each other, so I put my head down on the table," Marler said. When the mediator asked him if he was okay, Marler said to the distributor in the lettuce case, "In a few months your insurance company is going to settle and then the rest of you are going to settle and until then you're going to keep fighting me." Marler then stood up and announced, "But I'm in Seattle, it's a beautiful day and I'm going to the beach."


TK: If there are any growers and processors who don't feel motivated to go to the nth degree to meet rigorous food safety standards, they may well be reminded by their insurance premiums.




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More mojo

Another research study has been done to contribute to the growing body of work that reveal the benefits of fruit and vegetable consumption. This time, a study conducted in China showed a remarkable preventive effect of fruit and vegetable consumption on the incidence of lung cancer.
From the report:

The reduced risk is particularly evident in smokers but is also apparent in non-smokers. The details of this study appeared in the February 2007 issue of the Annals of Oncology
Many studies have suggested that a high intake of vegetables and fruits reduces the incidence of several types of cancer. The relatively high concentration of anti-oxidants is the most common explanation for this effect. Attempts to decrease the incidence of certain cancers by providing anti-oxidants in the form of vitamins has, in general, not been as successful as consuming natural food.



TK: This reminds me of a discussion I had with Lorelei DiSogra about the early days of research on the link between reduced cancer risk and fruit and vegetable consumption. It was that research, which DiSogra helped organize and present, that was the spring board to 5 a Day, first in California and then at the national level. The world needs less cigarettes and more fruits and vegetables, and slowly but surely it may happen.

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Thursday, February 22, 2007

The man behind the vision

Who is Hein Deprez, the CEO and founder of UniVeg? And what does he want with Ready Pac?

I visited this morning Mayda Sotomayor of Seald Sweet and Bruce McEvoy, director of global affairs for Belgium’s UniVeg Group, owner of Vero Beach, Fla.-based Seald Sweet LLC. Mayda had just returned from a trip to South Africa were Hein Deprez was present. She said Hein - whom she describes as a low key personality with tremendous vision for the industry - had been looking to make another investment in North America for a while.

McEvoy said UniVeg is involved with fresh cut processing companies that feature the kind of innovation that Ready Pac is known for in the U.S. As I was looking at the links in the UniVeg Web site, I noticed one UniVeg company in Sweden, Hot Cuisine, specializes in ready to eat meals. Its expertise is in applying three technologies to fresh and frozen ingredients:

Sous-vide cooking (in pouches)
Steam pasteurisation (in trays)
M.A.P. (Modified Atmosphere Packaging)

TK: With access to all the fresh cut technology in the U.S. and ready to eat meal technology in Europe, this UniVeg investment in Ready Pac looks to fit the classic ideal of "cross-fertilization." Perhaps fresh cut citrus may be a future side benefit as well for Seald Sweet.

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All about peppers

The USDA has unleashed a gaggle of spreadsheets about bell pepper and chile pepper production, and you can find them all here. However, the most important spreadsheet of the bunch is published here. The USDA reports that the percentage of U.S. consumption of bell peppers that is imported has risen from about 22% in 2000 to nearly 30% in 2006. Per capita consumption of bell peppers is 7.6 pounds in 2006, the highest reported usage ever in the U.S. and up from 7.1 pounds in 2005.

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Whole Foods plus Wild Oats

Hold on to your granola bar - Whole Foods Inc. said it will buy Wild Oats for $565 million.
This story by The Packer's Pamela Riemenschneider illuminates:

The companies announced Feb. 21 they had signed a definitive merger agreement under which the Austin, Texas-based retailer will purchase Wild Oats’ common stock for approximately $565 million. Whole Foods also will assume Wild Oats’ existing net debt, estimated at $106 million.“Our companies have similar missions and core values, and we believe the synergies gained from this combination will create long-term value for our customers, vendors and shareholders as well as exciting opportunities for our new existing team members,” John Mackey, Whole Foods co-founder, chairman and chief executive officer, said in a news release.
Mackey said it could take up to two years to fold Wild Oats’ operations into Whole Foods, which is similar to other acquisitions made by the natural foods retailer.“We expect this acquisition to be similar and that over time we will recognize significant synergies through G&A cost reductions, greater purchasing power and increased utilization of facilities,” he said. “We are particularly excited to gain many talented team members who will provide valuable support in reaching our growth goal of $12 billion in sales in 2010.”According to the companies, Wild Oats’ largest stakeholder, the Yucaipa Cos., which bought about 18% of Wild Oats’ shares in 2005, has committed to the sale.

TK: The market likes the fact that Whole Foods absorbed a competitor, but I wonder if organic growth is such that another Whole Foods-like retailer will spring up to present a fresh challenge.

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Carbon footprint backlash

It's a strange term and a weird expression - a carbon footprint backlash - but of course we know exactly what it means. People that ship fresh produce from afar to distant markets - such as Africa to the U.K. - are worried. Here is a report from the BBC about how Kenyan vegetable exporters are puzzled about why they are the bad guys in the environmental campaign against food miles.

Rutgers professor William Hallman said yesterday that E. coli tainted spinach and lettuce becomes the point of reference in every foodborne illness story, and I see that truth everyday in various stories. Here is a column from a West Virginia paper about peanut butter that makes the obligatory reference.
From the column:

Now, it seems folks are getting sick — including a few locally — after eating peanut butter possibly linked to a national salmonella scare. This comes on the heels of the spinach, green onion and lettuce scares last year.


Here is another story from The Salt Lake Tribune about E. coli and lettuce, quoting sources from Natural Selections and Fresh Express.


TK: It should be noted that peanut butter, chicken breasts and pasta sauces had foodborne illness outbreaks linked to those products this week. But, for now, at least, it all ties back to fresh produce.

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Krafty

With the recent travails fresh produce has endured - the bright light of media inquiry, the FDA statements about E. coli linked to spinach and lettuce - it is easy to forget that fruits and vegetables still have a lot going for them. Note the news on The Packer's Web site that Univeg has signed a letter of intent to invest in Ready Pac. Also, I was visiting this week with a leader in the industry who was gave me some background on private equity interest in fresh produce companies.

Now this morning I found this story on Kraft Foods at MediaPost's Marketing Daily.
From the Feb. 21 story:

A comment made by Kraft Foods CEO Irene Rosenfeld at yesterday's presentation to analysts had some observers wondering if the giant food products maker is working out a way to give on-the-go consumers both the convenience and healthy food they demand.
"We also have some innovative ideas about how to optimize the supply chain by partnering with providers of fresh produce," said Rosenfeld. "The result--branded, prepared salads that offer a whole new level of convenience, freshness and quality." A Kraft spokesperson said later the company would not amplify.
Kraft is working on using its proprietary technologies in concert with its trusted brands, Rosenfeld said, to build complete meal solutions as it does with Oscar Mayer Deli Creations, which are just launching.
Rosenfeld has talked of focusing more effort on higher-margin, ready-meal offerings as well as brands such as its "Back to Nature" lineup, which tap into rising demand for healthier foods.
The long-awaited reorganization will include increased marketing spending and a refocus of its product lineup in a bid to boost organic sales growth to 3 to 4% next year.


TK: The path from the drawing board to the supermarket is sometimes too far to bridge, but let's hope Rosenfeld's lofty dreams of using fresh produce in prepared salads is the start of something big for this food marketing giant.

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Wednesday, February 21, 2007

S. 654

Sen. Dick Durbin, D-Ill., introduced the Safe Food Act on Feb. 15th with these words.

The E. coli outbreaks from fresh produce that occurred at the end of 2006 may prove to be the critical events for the produce industry as the Jack in the Box outbreak was for the meat industry. Three people died and nearly 200 were sickened in 26 States due to E. coli that was traced back to packaged spinach.
The breadth of the problem of foodborne illness is stunning. The Centers for Disease Control and Prevention estimate that as many as 76 million people suffer from food poisoning each year. Of those individuals, approximately 325,000 will be hospitalized and more than 5,000 will die. Children and the elderly are especially vulnerable to foodborne pathogens. Despite these statistics, our food supply is still the safest in the world; however, there are widening gaps in our food safety system due to the fact that food safety oversight has evolved over time and is spread across several agencies.

TK: From the farm bill to food safety, there is a lot of activity on Capital Hill in the next few weeks. While some talking points for a single food safety agency resonate - "USDA has jurisdiction if the sandwich is a packaged open-face meat or poultry sandwich that contains one slice of bread. If the sandwich is a closed-face meat or poultry sandwich, meaning it has two slices of bread, FDA inspects it" -- other arguments such as cost/benefits of a new agency militate against it. The industry should stay out of this debate if possible.

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Border traffic yielding

The International Herald Tribune reports here that illegal immigration from Mexico to the U.S. has slowed. That fact could exacerbate what is sure to be an already tight agricultural labor market in 2007.

From the story:

The only barometer to gauge whether migrants are being discouraged to attempt entering the United States is how many migrants are caught. In the past four months, the number has dropped 27 percent compared with the same period last year. In two sections around Yuma and near Del Rio, Texas, the numbers have fallen by nearly two- thirds, officials from the U.S. Department of Homeland Security say. Many veteran officers in the force are now beginning to believe that with sufficient resources, the border can be controlled. The new measures range from simply putting more officers out on patrol to erecting stadium lights, secondary fences and barriers of thick, steel poles to stop smugglers from racing across the desert. The Border Patrol has deployed hundreds of new guards to watch rivers, man surveillance cameras and guard fences. The U.S. government has also begun punishing migrants with prison time from the first time they enter illegally in some areas. For instance, along the 210 mile border covered by the Del Rio office of the Border Patrol, everyone caught crossing illegally is charged in federal court and sentenced to at least two weeks in prison.


While AgJobs waits for action in the Congress, more growers are are showing interest in the H2A program, this news story notes. Several thousand agricultural workers in the guest worker program will be employed on the West Coast, officials say. This story recounts a visit to Washington by California Farm Bureau leaders.
From the California Farm Bureau Web site:

CFBF board member Wayne Vineyard of Lincoln said this about John McCain: "I was impressed with him. He seemed like he was on our side when it comes to immigration reform. He said he thinks we need an agriculture-workers-only piece of legislation and that its the only thing that's going to pass before the presidential campaigns get started in August. McCain told us he thinks the votes are there to do it, if the legislation ever gets out of committee and onto the floor for a vote."

TK: California industry leaders say the alternate bearing cycle means heavier yields for peaches and nectarines for 2007. The challenge of harvesting more tree fruit while facing the biggest shortage of workers ever is creating uncertainty in the market.

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All clear or not

I checked in today with William Hallman, lead researcher of the New Brunswick, N.J.-based Rutgers Food Policy Institute, of spinach research notoriety. You can check out this for the conclusion of the Rutgers study, posted earlier on my blog. Other posts about the study can be found with the blog search function.

In an interview for a story about fresh cut processing, I asked Hallman if consumers are frustrated the FDA has not nailed down what happened with the E. coli and spinach.
"I think it was more frustrating during the event," he said. "They expect food to be safe, they expect the government is doing a good job of assuring safety and the fact that weeks went by (without clear answers) was both surprising and frustrating," he said.

Now, he doubts that most consumers are at the edge of their seats to find out more details. "What consumers are interested in is that someone has solved what the problem was," he said. But some consumers may still be waiting, he said. The fact that there was really no all clear signal that involved information of how the E. coli got on the spinach is likely troubling some consumers, he said. "The all clear signal was less than all clear," he said.


TK: Hallman noted that because the FDA has not been able to pinpoint the farm or specific way the pathogen got on the product, it suggests to consumers the problem is large. Hallman has some keen observations about consumer behavior, including the basic question asked by many; "Why can't something be done about this?" The industry is moving fast to do something, but Hallman correctly notes that the E. coli tainted spinach will be a point of reference by the media for every E. coli outbreak that occurs in the near future.

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Sunkist meet

Sunkist Growers will hold its annual meeting in Visalia today, and this story notes that representatives from crop insurance companies and government agencies will be on hand.
Sunkist President Tim Lindgren will give the annual report for 2006.

TK: A key player as Sunkist move forward is Mark Tompkins, general manager of Sunkist Global Sourcing. I think my first conversation with Mark goes way back to the early days at Pronet, the Vance commodity news service that kicked off in 1984. From a Sunkist press release last year

As General Manger Sunkist Global Sourcing, Tompkins is responsible for securing production and folding it seamlessly into the Sunkist international sales and delivery network. Currently Sunkist is sourcing complementary citrus fruit from South Africa, Australia, and Mexico and delivering it to customers in North America and Asia.

TK: Getting Sunkist's U.S. growers comfortable with the idea of sourcing citrus from other countries is one thing, and that hurdle has largely been cleared. Getting growers from other countries in the Sunkist fold is yet another formidable challenge, and little easier than the first.

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Tuesday, February 20, 2007

Where's the remote?

The guy that made possible the couch potato has died in Idaho. It sounds too ironic to be true, but this story asks us to "hit the mute button for a moment of silence: the co-inventor of the TV remote has died."

Robert Adler was best known for his 1956 Zenith Space Command remote control, which helped make TV a truly sedentary pastime. In a May 2004 interview with the Associated Press, Adler recalled being among two dozen engineers at Zenith given the mission to find a new way for television viewers to change channels without getting out of their chairs or tripping over a cable.
But he downplayed his role when asked if he felt his invention helped raise a new generation of couch potatoes. "People ask me all the time - 'Don't you feel guilty for it?' And I say that's ridiculous," he said. "It seems reasonable and rational to control the TV from where you normally sit and watch television."

TK: Adler's work was not done; he never solved the problem of the remote disappearing between couch cushions, did he?

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Experience retailing

Cooking class, singles night, wine tasting....
Retailers such as Wild Oats and Whole Foods try to be much more than the local supermarket, and this feature story from Maine shows several ways they get it done.

Grocery shopping is a chore for many people; their priority is speed and price. Others see a trip to the supermarket as an experience. Tempting foods and recipes to ponder. Healthier ways to eat. Purchases that help form relationships between local growers and the community. It's likely that the thousands of people who mobbed the sneak preview tour and grand opening last week of the new Whole Foods Market in Portland fit into the latter category. These folks also are apt to eat in the store's trattoria or sushi bar, attend a cooking or nutrition class, or meet in the community room. What's more, while only 15 percent or so of shoppers are loyal to a single store, those customers generate between 55 percent and 75 percent of sales, according to a study cited by the Food Marketing Institute.

TK: Steve Lutz of The Perishables Group says the company will be releasing a big organics study about the time of FMI and United. Lutz said that one of the central points of focus is understanding the differences in behavior between light and heavy users. How can traditional supermarkets take light organic users and turn them to heavy users? What do traditional supermarkets have to do to compete with Whole Foods and Wild Oats? Demographics of each store location are a key indicator in determining potential of organic sales, Lutz said. Perhaps cooking class and singles night help, too.

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Chilean raisins, the new grapes?

That's the premise of this feature in The Santiago Times, which describes the appeal of the dried fruit.

From the story:

With 2006 generally recognized as a poor year for Chilean table grapes because of competitive markets and a low valued US$, some producers are looking to try their hand in raisin production. For table grape farmers in Chile, excess production and low prices have made it difficult to shift into other products. For this reason, some farmers are considering dedicating all their grapevines to raisin production.José Olmedo produced table grapes in Region V until 1990, when he began to produce raisins exclusively. He says he can never lose while he continues to produce raisins. “While with grapes there was always the risk that I could lose money, I’m always sure of earning something with raisins. Not very much, but something.

TK; Don't worry too much about Chilean fresh grapes fading away anytime soon. Season to date exports to the U.S. through Feb. 10 were 400.9 million pounds, up 23% from year-ago levels.

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Dean Florez, deal-maker

The California state senator, a Democrat from Shafter, has been in the headlines on a fairly regular basis, often criticizing industry efforts to implement the leafy greens marketing agreement. Here is a story that looks at his desire for compromise with the industry.
From the Salinas Californian:

Pronouncing himself dissatisfied with the ag industry's efforts to regulate itself, Florez has introduced legislation for state regulation of leafy greens. Learning Friday, however, that he faces a likely veto by the governor even if he succeeded in winning legislative approval for his proposal, Florez said he's now considering the idea of a "hybrid commission" - an independent panel to ensure food safety - that combines his goals with some aspects of an industry leafy-greens marketing agreement that promises improved food-safety practices.'

TK: Florez, an investment banker by background, said he out to make a deal with the industry. Just how that would benefit the industry is not clear to me. The threat of a veto may have neutralized his potential influence, but I'm sure we will continue to see Dean Florez in the news.

Meanwhile, the first meeting of the California Leafy Green Products Handler Marketing Agreement is set for Friday Feb. 23 in Woodland. Serious heavy lifting is on tap; six hours were allotted for the meeting. Among the agenda items, according to the CDFA:

Discussion of minor amendments to marketing agreement
Discussion of contracts for management and inspection
Establishment of first year assessment rate and preliminary budget
Establishment of committees
Discussion and possible acceptance of industry metrics

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Wal-Mart as economic engine

Remember all the anecdotal stories about Wal-Mart coming into a town and ending the dreams of a family owned hardware store, a fabric store, etc.? Now Wal-Mart has taken that concept and is standing it on its head. Here is a report that suggests Wal-Mart can help energize a depressed area of Indianapolis:

The chain builds a store, then pumps resources and money into surrounding local businesses. The Indianapolis Supercenter will go up near the old Builder's Square at 46th and Lafayette Road.
The nation's biggest retailer and state's largest employer, Wal-Mart has designated the Lafayette Square store part of its 'Jobs and Opportunities Initiative.'
"We'll fund local business development, we'll host seminars working with small communities and small businesses and we'll teach them how to leverage the benefits a new Wal-Mart Store can bring to the community," said Menzer.


And amazingly, some small businesses say it is all good.

"It will be great. It will help my business," said Hiren Patel, owner of Patel Brothers Grocery store. Patel hopes the new store will help attract more customers to his year old grocery, which specializes in Indian cuisine.

TK: There is never total approval for Wal-Mart in anything they do, and this is no exception. One grocery store merchant in the depressed area said Wal-Mart will likely shut him down.

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RFID and reefers

Putting active RFID tags on truck containers is the brainchild of the trucking company profiled in a computer magazine here.
From Computerworld:

While containers can be monitored while in ships and trains, historically, they vanish into black holes when being trucked on highways, says Rick Kessler, CIO of Horizon Lines and its IT subsidiary, Horizon Services Group. To overcome the lack of highway readers, the company placed so-called active RFID tags, which use an internal power source to contact readers, on 5100 containers. The active tags have a range of about 90m and can be read while moving at speeds of up 120 km/h. Horizon officials won’t disclose the amount of savings generated by the new process, but notes that it permits a shipper to know the exact location of a load, the time of delivery, and allow it to schedule its operations more precisely and plan for any exceptions, delays or high priority movements.
The Horizon Services Group, he says, is studying methods for deploying an RFID reader network on the highway system in the US.

TK: Here is a piece about Canadian consumer acceptance of RFID in grocery stores, and read this story to see how RFIDs may one day be in all of us. I can't say I'm thrilled.

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Apple wax and consumer awareness

As I work on an update on fresh cut salad sales, I was visiting yesterday with Steve Lutz of The Perishables Group. As we talked about whether the sales slide in packaged salads and packaged spinach reflects a change in consumer behavior, he brought up the case of wax on apples.

"There is a huge difference between consumer awareness and action," Lutz told me. "It can have a zero impact on behavior." He recalled from his days at the Washington Apple Commission when surveys showed a high level of awareness of wax on apples. In fact, some consumers were "concerned" about wax on apples.
But the correlation of the issue at store level showed that consumers in fact preferred waxed apples over unwaxed apples. They would buy more waxed apples than unwaxed apples if given the choice.


Lutz cautions against drawing too many conclusions about consumer behavior relating to bagged salad and bagged spinach until more time is passed. How much of the current decline in sales is attributable to demand and how much is related to supply? We may be better to tell in a few months, he believes.

Related to consumer confidence, here is a story about how consumers are returning to a Houston restaurant where patrons were possibly exposed to Hepatitis A.

From the story comes a quote from a trusting soul:

“My mom had warned me that there was a problem about a week ago, I guess, but I figured it was probably a pretty safe bet since it was on the news and in the paper that they probably have everything cleaned up by now,” diner Paige Gutierrez said.


TK: The chicken of demand or the egg of supply? In any case, The Perishables Group has figures that show bagged spinach sales for the 19 weeks ending Jan. 20 were down 47.8% compared with the same period a year ago.

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