Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, August 31, 2007

Lime and avocado medley

The lime and the avocado markets have moved in opposite directions in recent days. The market on hass is backing down somewhat, while the hurricane in Mexico has supported the lime f.o.b.

Tropical brew 8/20 to 8/31 - http://sheet.zoho.com

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Thai time

I think I will eat at a Thai restaurant next week. In fact, Thai restaurants will be my only option.

I'm headed to Thailand for an AsiaFruit Congress, leaving Monday and returning Saturday. I expect I will be able to post on the blog from Bangkok, if the Internet connection at the Amari Atrium Hotel is in fine working order.

One of the stories I started following this week was the Defense Supply Center in Philadelphia and their process of privatizing the Department of Defense Fresh Program that supplies fresh produce to schools and military foodservice facilities. As I understand the process, they are shutting down government field buying offices for produce (with about 11 remaining right now) and are in the early stages of awarding more than 40 long term contracts to produce distributors throughout the country.

Already a year after the bids were received by the Department of Defense, the vast majority of long term contracts have yet to be awarded. I noted there was some frustration with the pace of the privatization process when I talked to one distributor this week and I wonder if others feel the same way; shoot me any thoughts with a comment here, on the discussion board or at tkarst@thepacker.com.

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This week in spinach

Calif. spinach 8/27 to 8/30 - http://sheet.zoho.com

Calif. spinach movement 8/27 to 8/29 - http://sheet.zoho.com

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Spinach and food safety headlines 8/31

As the voluntary recall of spinach grabs the headlines, less press seems to be directed at the recent actual E. coli outbreak linked to meat in the Northwest. Is the press more keenly tuned to produce safety than the safety of beef? Is there a tacit acceptance of periodic outbreaks of E. coli linked to meat as opposed to incidents and recalls tied to produce? One thing is certain, spinach and food safety are in the news cycle and it will be darn hard to get them out. By the way, thanks to the Food Safety Network at K-State for these links.

Dole Food takes new steps to head off more E.coli From Reuters;
Dole Food Company, a top U.S. food and fruit producer, has stepped up testing and tracking of produce to prevent outbreaks of E.coli like the one that sickened hundreds last fall, the firm said on Thursday.
Eric Schwartz, Dole's president for worldwide vegetables, told Reuters in an interview the company is testing samples from every acre of spinach and other vegetables that will be marketed under the Dole label. If a harmful bacterium or other problem is detected, plants from that area will not enter the processing chain.


INTERAGENCY WORKING GROUP ON IMPORT SAFETY TO HOLD PUBLIC MEETING From USDA:
The Interagency Working Group on Import Safety is announcing a public meeting to explore actions that public and private stakeholders can take to promote the safety of products imported into the United States.
The public meeting will be held from 8 a.m. to 6 p.m. on Monday, Oct. 1, 2007, in the Jefferson Auditorium, South Building, U.S. Department of AgrFRiculture, 1400 Independence Ave., SW., Washington, D.C. 20250.

Spinach Recall Sparks Oversight Calls From the AP
Consumer advocates and some lawmakers say that a Salinas Valley company's recall of spinach because of a salmonella scare shows that the federal government must do more to protect the nation's food supply, but industry officials call it proof that their voluntary regulations are working.
Metz Fresh, a King City-based grower and shipper, recalled 8,000 cartons of fresh spinach Wednesday after salmonella was found during a routine test of spinach it was processing for shipment. More than 90 percent of the possibly contaminated cartons never reached stores, company spokesman Greg Larson said.



Alberta farmers' market produce under scrutiny From CBC
In an unusual move, Alberta health inspectors are buying fruits and vegetables at farmers' markets in the Calgary and Edmonton areas to test its safety.
The produce will be examined for parasites and bacteria that cause diseases such as E. coli and salmonella, says Sandra Honour, who is with the food safety division of the Agriculture Department.
"There is not common testing done on Canadian-produced food, by the province, to be able to feed back directly to producers on how good they are and how they could improve their practices," Honour told CBC News.
"This is designed to both give us a baseline so that we can let consumers know how safe Alberta-produced food is as well as the producers can have information as to which practices provide them the best opportunity to ensure their product is safe."


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Thursday, August 30, 2007

DeLauro statement and Consumers Union pile on: What about test and hold?

You knew this was coming, of course:

Congresswoman Rosa L. DeLauro (Conn.-3) issued the following statement about the recall of spinach because of Salmonella contamination. DeLauro serves as chairwoman of the Agriculture – Food and Drug Administration Appropriations Subcommittee.

“In what can only be described as disturbing irony, the one year anniversary of the spinach recall that claimed three people and sickened hundreds more, is observed with yet another recall of potentially contaminated spinach, this time with Salmonella.

“Earlier this year when the Food and Drug Administration submitted a plan to strengthen guidelines for fresh cut produce, the Department of Health and Human Services rejected it. This latest spinach recall is a reminder that the FDA should immediately move forward to create a system for the produce industry that focuses on preventing hazards by applying science based controls, from raw material to finished product.

“It is time for the FDA to renew their commitment to their mission of protecting the public health, and make a declarative statement that the goal is to prevent food-borne illness not just to react when outbreaks occur. Until then, unfortunately for the American people, an opportunity missed for the FDA, leaves the public holding the bag.”



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From Consumers Union:

“It’s been one year since the E. Coli spinach recall and we have yet another serious incident. Eight thousand cartons left the plant for distribution in the U.S. That’s 8,000 too many. There needs to be a hold and test policy that prevents food from ever leaving the plant. There’s also a glaring need for across-the-board improvements to the FDA to enable its staff to do more routine inspections with the full authority to recall contaminated vegetables. At this point, we’re relying on the leafy green industry to essentially police itself,” said Jean Halloran, a Consumers Union food safety expert.



TK: Does there need to be a hold and test policy in place? I asked that question in the Fresh Produce Industry Discussion Group and got this thoughtful response from Alex Coles, director of Supply Chain Food Safety:

Ah... the eternal question. There are several trains of thought on this: We all know you can't test safety into a product. We have heard about the difficulties of finding the proverbial needle in the haystack. "Then we should use statistical sampling to find it" they say. Unfortunately, statistical sampling is most useful when the contamination is distributed equally throughout the lot you are testing. That is not to say it will not find it, but the chances of finding it are extremely low. I don't have my chart for probability of detection in front of me, but to get a 99% confidence level of finding contamination at 0.1%, one would need to test over 600 samples. It could be done...
Let's look at testing turn around time. Unless you have a lab onsite, capable of testing pathogens, you need to add a day right off the bat for transportation. Standard methods take several days to return results; usually 3 days for a negative response up to 5 or 6 days for confirmation. It could take a full week to get results. With such a short shelf life, are our customers willing to received product that is 5-6 days old? Probably not.
With that being said, there are companies that are testing raw materials and finished products and stopping things at their door. For years, testing companies have been working on improving rapid method testing however the faster you try to go, the less reliable your answers could be. How fast is too fast? We are after all, trying to enrich and recover living organisms including those that are simply "injured" by the process.
This is a very difficult situation for all of us - growers, processors and customers alike. We don't have a good answer and we test as often as possible using the best information out there. More focus should be put on intervention to reduce the chances the product is contaminated to start with. Testing of the system, not the product, is a better solution.

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Closer to Tesco

What is this Wild Rocket Foods you speak of? That was my thought as I read this piece in The Press Enterprise online.
From the story:

Whether the mango was whole, diced, chopped into a salsa or pureed into an organic mango lemonade, chances are it will have hung on a tree just three days before landing on grocery store shelves of the proposed Fresh & Easy Markets from British grocer Tesco.
That's a promise from Wild Rocket Foods, which will open its Riverside distribution and processing facility before the end of the year. The company is also aiming to be a green leader in its industry, said James Truscott, vice president of sales and marketing.
Company officials introduced themselves to Riverside business leaders Wednesday morning, offering mango souvenirs lining a table inside the Mission Inn's Spanish Art Gallery room alongside displays of produce - Wild Rocket's staple product.
Based in the United Kingdom, the company has chosen Riverside to base it's first U.S. processing plant to be close to Tesco, its only customer so far. Tesco is building a massive campus at the Meridian business park on the former March Air Force Base as a distribution facility for its forthcoming stores in California, Arizona and Nevada.
Wild Rocket Foods is sister company to United Kingdom-based Natures Way Foods.


TK: Mango marketers must be happy to hear about this development, as it sounds Wild Rocket has taken the art of adding value to the mango to an uncommon level.Here is a link to their Website. The UK supplier seeks to hang on to their Tesco business, even as the UK chain moves into the Western U.S. How many more savvy British companies will set up shop over here?

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Rebuilding confidence

More talk about rebuilding confidence, greater traceability and increasing demand for local and organic food is found in this link from Investors.com: From the story:

In the year since three people died and more than 200 were sickened by E. coli after eating contaminated raw spinach, and other reports have surfaced about tainted pet foods, fish and peanut butter, food companies are facing growing pressure to regain trust of consumers, whose confidence in the safety of what they eat is at an 18-year low.

Later....
In response to growing safety concerns, the Food Marketing Institute, a trade association whose board members include chief executives of 81 companies such as grocery giants Wal-Mart Stores Inc. (WMT), Kroger Co. (KR) and Safeway Inc. (SWY), formed a task force in October devoted to food safety.
"There's a great interest by both the supplier community and retailers to identify and trace foods," said Jill Hollingsworth, FMI's group vice president of food safety programs. "Retailers want to know more about where foods come from. The old system is just not enough anymore."


Later...

Banana producer Chiquita Brands Inc. (CQB) said this month that North American demand for its Fresh Express salad was still sluggish after an industry E. coli outbreak in spinach last September dampened consumers' confidence in bagged salads.

TK: Is it time for a greater PR/advertising piece from the industry to tell the story of what is being done to protect consumers? Death from a thousand cuts and the stubborn statistics that show a lack of confidence in food safety seem to call for a more aggressive marketing response, from both the industry and individual companies. The question is, does the timing of that response dovetail with on farm progress in food safety practices? The questions relating to improvements in FDA oversight have not been fully resolved, but much has been done at the farm level. Certainly, the leafy greens marketing agreement is one key part of the food safety story that should be told to consumers.

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Wednesday, August 29, 2007

Spinach recall

Calif. central coast spinach  8/21 to 8/29 - http://sheet.zoho.com



From the story by John Chadwell of the The Packer:

Metz Fresh, King City, Calif., notified the Food and Drug Administration and the California Department of Public Health on Aug. 28 that it has voluntarily recalled bagged spinach after it was determined there was a positive test for salmonella.This is the first instance of a positive finding for a pathogen on a product produced by a signatory of the California Leafy Green Products Handler Marketing Agreement, which was established after the Sept. 14 E. coli outbreak linked to fresh spinach.Greg Larson, spokesman for Metz Fresh, said Aug. 29 the recall was for 8,118 cases of spinach that were distributed under the Metz Fresh label to retail outlets and the foodservice sector throughout the U.S. and Canada.

From the FDA news release:

FOR IMMEDIATE RELEASE -- Salinas, CA -- August 28, 2007 -- Metz Fresh, LLC is voluntarily recalling bagged spinach as a result of a positive test for Salmonella found during routine company testing.
The spinach is distributed under the label Metz Fresh, in both retail and food service packages. These include 10 and 16 oz bags as well as 4-2.5 lb. and 4 lb. cartons. The only Metz Fresh product affected is spinach that bears the tracking codes 12208114, 12208214 and 12208314. It was distributed in the continental United States and Canada.
There have been no reports of illness or problems related to this spinach.
Salmonella is a common food borne pathogen that can cause severe illnesses, including fever, abdominal cramps and diarrhea. While most individuals recover in three to five days without medical intervention, the infection can be life-threatening to young children, the elderly and those with compromised immune systems. Consumers with any of these symptoms should call their physician.
Consumers are advised to discard this product or return it to the place of purchase for a refund. Consumers with questions about the recall should contact 831-386-1018.
"Nothing is more important to Metz Fresh than the safety of our consumers, period," said Andrew Cumming, President of Metz Fresh. "As soon as we learned of the presumptive positive test, we directed all customers to hold all boxes of the spinach affected as a precaution. Now, with this positive test confirmation, there is no question that we would recall and destroy all spinach bearing these three codes."
The positive test came during independent lab testing Metz Fresh conducts on all of its products. Through its labeling and numbering system, Metz Fresh has already tracked, located and put 'holds' on the vast majority of the cartons of spinach affected. That spinach will not be released into the marketplace.
While the positive test came from only one sample of many on three packing lines, Metz Fresh has, as a precaution, chosen to recall all of the spinach from the ‘field lot’ packed that day on all three lines.
Metz Fresh is keeping appropriate authorities updated on the status of the voluntary recall



TK: Thankfully no illnesses linked to this recall, which may be reassuring to consumers that testing protocols are in place. Here is coverage from the AP, Foodconsumer.org, Fox.

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Peruvian relief update

Lance Jungmeyer here ...

I received word back from Bruce McEvoy on progress of industry humanitarian efforts for Peru, and here's what he had to say:

I’ve had a good dialogue with Nancy Tucker of the PMA on the need for a broad based industry relief effort. Nancy and I have also discussed the need for a legitimate foundation to be the collection point but also to provide oversight. The next step is to elevate the discussion within the PMA and Nancy plans to do this after the Labor Day Holiday.

I’ve also been talking with Priscilla Lleras of the Peruvian Asparagus Importers Association. Priscilla recognizes the needs outlined in the FAO report and she and colleagues are also exploring the formation of a Produce Disaster Relief Organization to support the longer-term needs. I still think we need the umbrella of a PMA to rally the industry and I’ve encouraged Priscilla to also make contact with Nancy Tucker.

Regards,

Bruce


It's not too late to pledge help to this effort, and here's hoping that a disaster relief organization of some sort can come to fruition.

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No match compliance

Here is guidance from the National Council of Agricultural Employers on the no match rule. I published to the Fresh Produce Industry Discussion Group, as Google docs doesn't support pdf files. The file contains scenarios relating to the no match rule and suggested appropriate actions by employers.

From Sharon Hughes, NCAE executive vice president, comes these introductory remarks:

As you are probably aware, the Department of Homeland Security (“DHS”) has issued a new regulation about how to respond to a Social Security no match letter or a notice of suspected document from DHS itself.1 There are a number of ambiguities in the new rule and it is unclear how it will ultimately be applied. Based on several hours of discussion with high DHS officials, it is clear that DHS will apply the rule rigidly and strictly. In these conversations, DHS officials signaled that ambiguities both in the facts and the law will likely be construed against employers. The guidance that follows is therefore conservative.2 While others may recommend a more aggressive approach or seek loopholes in the rule, such approaches involve more risk. Whether you follow such an aggressive approach or the more conservative one set out in this guide is ultimately a business judgment in the particular circumstances. Unfortunately, the no match rule does not cover many of even the most likely scenarios that agricultural employers will encounter. Conversations with DHS officials indicate that the agency will take a rigid approach to applying it. If an employer deviates from the rule, DHS may, but not necessarily will, deem the employer’s response to be unreasonable and evidence of knowing employment of unauthorized workers. Moreover, nothing in the rule lessens the duty to act reasonably in situations not addressed in the rule and its explanatory comments where there is information that a person is or has become unauthorized. DHS will consider whether the employer’s conduct was reasonable when viewed under the totality of the circumstances.

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Labor Day blowout

The food section is packed with ads this week to fuel festivities for the Labor Day weekend, with no lack of variety in produce promotions. I see HyVee even ran a lime promotion this week, which have seen higher prices in the wake of the hurricane in Mexico.


Wal-Mart: Prices Sept. 2-8:
Tomatoes on the vine: $1.50/lb
California Bartlett pears: 84 cents/lb

Hen House August 29 through Sept. 4
Features a Meet the Growers event with Dan Kuhn & The Depot Market, Courtland, KS and Missouri Western Fruit Co., Waverly, Mo.

Locally grown Twin County Family Farms whole seedless watermelon: $2.99/each
Andy's Candy Corn: 8 pack for $3:
Stemilt Artisan Naturals peaches and nectarines: $1.69/lb
Large, supersweet Dinosaur Egg pluots at $1.99/lb
Fresh black mission figs: 2 for $4
Locally grown candy sweet yellow onions grown by Stanberry Farms in Stanberry, Mo.
Portabella mushrooms: $2.99/lb
Santa Sweet grape tomatoes: 2 for $4
Mineola tangelos: 2 for $1
Dole Cole Slaw or classic salad (1 pound bag): 99 cents
Apio Veggie Tray: $8.99 each

HyVee Aug. 29 to Sept. 4
Columbine, green, red or black seedless grape: $1.18/lb
Bananas: 59 cents/lb
Greenhouse tomatoes: $1.38/lb
Pro Health russet potatoes: 3 for $1
Kandy honeydew melon: 2 for $4
California Bartlett pears: 88 cents/lb
Dole celery: 88 cents/stalk
Dole salad mix: classic romaine, greener selections, just lettuce, spinach or iceberg butter crunch 9 to 12 ounces: 3 for $4
Australian ellendale tangerines: $1.99/lb
Bland Farms Rocky Mountain sweet onions: 88 cents/lb
Ripe hass avocados: 2 for $3
Sunkist choice lemons or tangy limes: 2 for $1


Dillons Aug. 29 to Sept. 4
Ripe red whole seedless watermelon (16 pound average) $2.99/each
Red, green or black seedless grapes (conventional or organic) $1.79/pound
Tree ripe Colorado peaches: $1.79/lb
Ripe cantaloupe: 2 for $5
Tomatoes on the vine $1.99/lb
Wrapped corn 5-pack: $3.49
Bartlett pears: $1.49/lb
Red or black plums or nectarines: $1.79/lb
Fresh Express Cole Slaws: 10 for $10
Kroger or Naturally preferred baby peeled carrots: 1 lb 2 for $3
Fresh white mushrooms: 12 ounce: 2 for $5
New crop gala or paula red apples: (3-lb bag) 2 for $6

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American Harvest

A documentary film that is friendly to the role immigrants play in America and American agriculutre, American Harvest is being promoted at this Web site.
From the Web site:
Immigrants are dying to feed America.
Discrimination of immigrants has existed in the United States since the English persecuted the Irish at the beginning of this country’s history. It was once generally considered that if you were Greek or Southern Italian you were not white. Anti-immigration sentiment is nothing new in the U.S.
American farmers and agriculture rely on immigrants to do jobs that Americans won’t do or feel that are simply beneath them. This is causing problems for many people. Some see the problem first hand. Others only see the problems in the news from the perspective of those extreme points of view of the left and the right side of our political system.
American Harvest attempts to shed light on the changing face of the United States in particular as it relates to Agriculture. This film also points out the flaws and inconsistencies of the current U.S. policy on immigration.
The filmmakers follow both legal and illegal farm workers and the farmers caught in the middle of a flawed immigration policy.


Below is a trailer for the film.




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When worlds collide

The Internet has changed the speed at which the industry reacts to information, and it has changed the way the "outside world" relates to the industry. One good example of this is that I was looking at the Fresh Produce Industry Discussion Group this morning (we added two new members today- yee haw!) and I found that one of the posts linked to a story put out by another division within Vance Publishing Corp., owners of The Packer.

What's more, Doug Powell of K-State's Food Safety Network subscribes to a clipping service that sends him Danny Dempster's column about produce safety printed in a Canadian newspaper. (By the way, Danny and I talked the other day and I will try to unpack that conversation later. ) Meanwhile, I refer to the Food Safety Network post and Jim Prevor also notes Danny's column in his blog. Now Doug Powell in Barfblog has a commentary on the comment.

What does it all mean? The industry and the public are becoming one. Anything said in an industry seminar will be shouted from the rooftops. One year after E. coli and spinach, a lot of people care what the industry says and does. We can like it or not, but that's the new paradigm.

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It's a horse race

The Fresh Talk poll this week is fairly tight, with only one day of voting left. To the question:
"Should a radura symbol or any other labeling be required to inform consumers fresh produce was irradiated?"
The results so far 13 yes and 9 no - still close enough for a lead change down the stretch.


The news about Sen. Larry Craig still continues to capture a lot of media bandwidth. Here is a transcript from the O'Reilly Factor last night.
I'm intrigued as to what the industry's reaction will be: It could be quiet support, public disappointment or no comment. I have a call into United to get their reaction but haven't talked to Robert Guenther or Tom Stenzel yet. I will try to weigh in with Sharon Hughes of the NCAE as well. From all appearances, Republicans are quickly distancing themselves from Sen. Craig. It's hard to imagine the circumstance that Craig can before a forceful champion for immigration reform or any other issue now.

I'm thinking the next Fresh Talk Poll has found its topic.

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Tuesday, August 28, 2007

Reds down but not out

Washington Apple F.O.B. 6/2 to 8/27 - http://sheet.zoho.com


The US Apple Association reports that gala variety apple production will narrowly edge golden delicious for the second straight year as the No. 2 apple variety. Of course, goldens have owned the runner up spot to red delicious for many years. U.S.red delicious production for this year is forecast at almost double gala - 53 million cartons compared with 28 million cartons - but reds are down a whopping 10 million cartons from a year ago.

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Halo of local v. organic

Local produce or organic produce - which has the stronger pull on the consumer? Don Harris, vice president of produce and floral for Wild Oats Markets Inc., Boulder, Colo. addressed the Aug. 24 session of the U.S. Apple Association in Chicago. After his presentation on organics at retail (covered separately for The Packer), Harris entertained a few questions from the crowd.

One the questions addressed the appeal of local versus organic produce. Particularly, how does Wild Oats weigh the appeal of organic produce from another state compared with locally grown conventional produce?

Interestingly, Harris said the stronger "halo" effect is often all about local produce.
"We would stay with the local (deal) till it is done and go to the other; we find local conventional produce has a better halo effect than organic from another area," Harris said. "The magic is to have organic and local."

I asked Don if Wild Oats uses loyalty cards.

As an aside, I have mixed feelings about loyalty cards. I enjoy not having to use a loyalty card, but of course if you comparison shop at some supermarkets you are compelled to pick up shopper or loyalty cards or feel the pain in your wallet. Thus, I have three "loyalty" cards.

Back to Don. He said Wild Oats issued loyalty cards to their shoppers about three years ago, and 58% of those who received them mailed them back. "It was an invasion of privacy to some of them," he said. Perhaps it relates to the old "hippie" ways of anti-establishment, but for whatever reason, Wild Oats shoppers have generally not been receptive to the idea.

"Some sent the cards back whole, some in pieces and some with colorful phrases and metaphors," Harris said with a smile. He noted Whole Food also reportedly found only spotty acceptance when they have attempted loyalty cards.

Don had a meaty, statistic-filled presentation to the U.S. Apple Outlook conference, and provided the kind of buyer to supplier input that every grower meeting should strive to secure.

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Career killer?

One of the produce industry's biggest champions in the Senate may be a lame duck. Sen. Larry Craig, R-Ida., is expected to announce in September whether he will run for reelection in 2008. However, recent events may have taken the drama out of it. This report in Roll Call details Craig's plea of disorderly conduct earlier this year related to an incident in a restroom of the Minneapolis Airport.
From the Roll Call story of Aug. 27:

Sen. Larry Craig (R-Idaho) was arrested in June at a Minnesota airport by a plainclothes police officer investigating lewd conduct complaints in a men’s public restroom, according to an arrest report obtained by Roll Call Monday afternoon.
Craig’s arrest occurred just after noon on June 11 at Minneapolis-St. Paul International Airport. On Aug. 8, he pleaded guilty to misdemeanor disorderly conduct in the Hennepin County District Court. He paid more than $500 in fines and fees, and a 10-day jail sentence was stayed. He also was given one year of probation with the court that began on Aug. 8.
A spokesman for Craig described the incident as a “he said/he said misunderstanding,” and said the office would release a fuller statement later Monday afternoon.
After he was arrested, Craig, who is married, was taken to the Airport Police Operations Center to be interviewed about the lewd conduct incident, according to the police report. At one point during the interview, Craig handed the plainclothes sergeant who arrested him a business card that identified him as a U.S. Senator and said, “What do you think about that?” the report states.

TK: Here is a link to the backstory about Sen. Craig, including previous murky allegations dating from more than 20 years ago. Here is coverage from today's Idaho Statesman. Obviously, Craig's GOP conservative family values work against him big time in this case, though it is not inconceivable that he could somehow get past this. It is unfortunate for the industry that Sen. Craig may be wounded and ineffective in advancing AgJobs and specialty crop priorities in the farm bill. In the words of one lobbyist, Craig has carried an " awful lot of the industry's water" in the U.S. Senate. "This is not helpful."

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Monday, August 27, 2007

Amazon Fresh and other thoughts

Cal over at our Fresh Produce Industry Discussion Group started an interesting thread about Amazon Fresh. He cites a number of Web links describing the fledgling service and its business potential. Check it out and chime in if you think Amazon can succeed where WebVan failed.

Other threads at the discussion group:

Where to go when a child refuses to eat Luis posts a NYT piece about how doctors handle that rare child who absolutely refuses to eat. Luis add some thoughts about the battle of wills between parents and children over food. (How often are vegetables involved, I wonder).

Critical use exemption for methyl bromide for 2008 Luis post FR rule about process for another year of critical use exemptions for methyl bromide use.

Agents raid pork plant Big Apple posts story of immigration raid in Nebraska

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Wherever possible

TK: It's a nice public relations move, but I have trouble putting much stock in the announcement by Fairmont Hotels & Resorts that would revamp all of its menus by the fall to incorporate locally grown, sustainable or organic ingredients "wherever possible."
Give me numbers, give me a percentage, give me anything that is measurable and I would tend to pay more attention to this move. From The Nation's Restaurant News:

"Our guests are very savvy, experienced diners, and they also are becoming more conscious of how their consumer choices affect the planet," Serge Simard, vice president of food and beverage for the chain, said in a statement. "Our new approach will make it easy for our guests to make individual, sustainable food choices as part of a global effort."
Fairmont indicated that it would complement the menu overhaul with the adoption of programs like inviting guests to visit the farms where their hotel's food was grown, or accompanying chefs on shopping trips to local green markets.

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More fruits and vegetables equated with loss of planting prohibition

The farm policy discussion is heating up again. More headlines are rolling in about the f/v component of the farm bill. The piece by Brasher suggests the Senate remove the planting restriction on program crop acres, a notion that is admantly opposed by produce lobbyists.

Brasher: Farm bill prescription calls for more fruits, vegetables From The Des Moines Register:
Your doctor may already be telling you to eat more fruits and vegetables. Now, the President's Cancer Panel is weighing in, recommending that the farm bill be used to increase fruit and vegetable consumption. The panel, whose three members include one of the nation's best- known cancer survivors, Lance Armstrong, should meet farmers like Gary Boysen of Harlan, Ia.Boysen is growing 65 acres of sweet corn, peppers, tomatoes, cantaloupes and other produce this year, and he says the market is growing. The produce is sold at area supermarkets, Wal-Marts in nearby Atlantic and in Council Bluffs, and to wholesalers as far away as Wichita, Kan.He'd like to increase his acreage in the future, but there is one major impediment: federal farm policy.Farmers who grow federally subsidized crops such as field corn, soybeans, wheat and cotton can't convert land to fruit or vegetable production, even for only one year, unless they permanently give up their right to collect federal payments on that acreage.

From United, news about WPPC roundtable of journalists:

United Fresh is excited to offer conference attendees a new general session this year as part of their WPPC 2007 experience. At the WPPC General Session on Thursday morning, attendees will hear from Dan Morgan, reporter from the Washington Post, Catharine Richert, reporter from Congressional Quarterly, and Jerry Hagstrom, reporter from the National Journal. "We are excited to offer our conference attendees a unique opportunity to interact with individuals who actually write about the important issues confronting our nation's lawmakers," said Robert Guenther, senior vice president of public policy for United Fresh.

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Nuke 'em

Dennis Avery of the Hudson Institute writes here that testing won't save produce from E. coli. What will? Irradiation, for one thing. Avery stirs the pot again, well-timed for my poll question about irradiation labeling this week. How about this quote: "We want our food to be politically correct even more than we want it to be safe."
Dennis, it is you, not Al Gore, who bring us the inconvenient truth.

Avery writes:

Mr. Will Daniels oversees food safety at Earthbound Farm in Salinas, CA - the company that last year grew and packaged the bagged spinach that killed three people, including a 2-year-old boy, due to contamination with E. coli 0157 bacteria. The spinach also sickened at least 200 other people, many with serious kidney failure.
“We thought we were the best, but clearly that wasn’t enough,” says Daniels.
After the tragedy, Earthbound Farms hired a food safety microbiologist, who immediately told his new bosses that they were kidding themselves if they thought it wouldn’t happen again.
“Another bullet is coming your way,” he warned. “Will the processing eliminate the [bacterial] hazard? The answer for this industry is no. You can reduce; you cannot eliminate.”
Earthbound has nevertheless put in place the most aggressive testing and safety program in the industry. All its greens are now tested for pathogens twice—on arrival from the field and again when the packaged products come off the processing lines. The testing has confirmed the fears: some of the produce is still contaminated.
“We’re not going to rest until we explore every possible safety improvement,” says Daniels.
The problem is that neither
farmers nor the federal government are doing all they could to stop the deadly E. coli from poisoning customers. Electronic irradiation could destroy 99.999 percent of the dangerous bacteria, effectively eliminating the E. coli danger. Irradiation simultaneously kills the spoilage bacteria, keeping the produce fresher longer.
Irradiation is now being used widely to protect hamburger from the E. coli dangers, with a major irradiation plant in Sioux City, Iowa. Irradiation is even more important for lettuce and spinach, because we most often eat them raw. But the Food and Drug Administration has been sitting on a petition to permit irradiation of leafy greens for eight years. They’re afraid if they give approval, the food-scare activists will howl with rage. Never mind the kid who died and a hundred people with kidney failure. We want our food to be politically correct even more than we want it safe.
Nor are organic farmers protecting their customers. The Earthbound field on which the contaminated spinach was grown was managed organically, in transition to organic certification, under lease to a company co-owned by Earthbound. Composted manure may have been used to provide the Earthbound crops with nitrogen. Composting can kill bacteria, but its safety can’t be guaranteed.
On the other hand, E. coli bacteria with the same signature were found in a nearby free range cattle herd, and
wild pigs were moving through the area. We can’t defend open fields from bacteria that are everywhere—but, with irradiation, we could kill the bacteria that actually get into our food.
The mega-bucks food scare industry, of course, is against irradiation. They demand “more natural” food production and less processing. Crumbling under pressure, the major
grocery store Safeway has just announced it will no longer market meat packaged with carbon monoxide gas even though it keeps meat fresher, longer, in the consumer’s refrigerator, thereby providing an extra safety margin. In other words, the food industry is being forced by food-fear rhetoric to abandon technologies that benefit consumers.
How many people will have to die? When will we realize—again—that Mother Nature is a harsh mistress, unleashing deadly viruses and proliferating bacteria along with her sunlight and rain. Survival of the fittest is her motto.
Humans used to consider that our ability to think was part of our survival equipment. Now it seems we rely on dumb luck. Poor little child. Poor grieving parents. Poor
FDA?
Dennis Avery
DENNIS T. AVERY is a senior fellow for Hudson Institute in Washington, DC and the Director for Center for Global Food Issues (
http://www.cgfi.org/ ). He was formerly a senior analyst for the Department of State. Readers may write him at Post Office Box 202, Churchville, VA 24421.

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Farm bill roundup 8/27

Take integrated approach to a food-and-farm bill Writing in The Des Moines Register, Neil Hamilton of Drake University suggests the Senate should look to improve the diet of Americans through the farm bill. He suggests that Congress should:

- Expand the fruit and vegetable snack program to cover additional states and schools - so more kids have access to fresh, nutritious food. Better yet, purchase locally grown fruits and vegetables so schools are connected to nearby farms and the program supports local economies.
- Fund the specialty-crop block grants and give states flexibility to support innovative projects. Support ideas such as the "fresh checks" used in several states to provide food-assistance recipients with bonus checks to buy nutritious produce at farmers markets.
- Implement the much-delayed COOL - country of origin labeling - program, and give consumers the information they want and need to make food choices. Making informed choices is a basic tenet of our democracy. Congress should end efforts to keep consumers in the dark on the origins of our food and what is in it
.- Allow the interstate shipment of state-inspected meat, done in ways that do not threaten consumer safety but do create opportunities for rural food businesses. Isn't it ironic that we accept shiploads of food with few inspections from China, a country with at best a rudimentary appreciation for the rule of law, but we bar meat produced here and inspected by state employees from moving across state lines?
- Accelerate the move to organic food by supporting producers as they convert their farms and by funding the research critical to this form of production.
- Amend the popular value-added producer marketing grants to include cooperative efforts to process and market foods in regional food systems like the one Iowa has built over the last 10 years.

The key is whether we approach food and farm policy as an integrated whole or as unrelated blocks. The farm bill can't be food stamps in this jar, farm programs in another and conservation over here. All these issues are parts of a comprehensive policy - one that expands opportunities for farmers and food businesses, that gives consumers access to healthful foods and that addresses the nutrition needs of all citizens - kids, mothers and seniors.Recognizing that all citizens deserve a healthful, nutritious diet - and delivering on that promise - should be the hallmark of a sustainable food.


Draft proposal for commodities from Harkin From Farms.com:
A draft proposal for commodity programs circulated by Senate Agriculture Committee Chairman Tom Harkin, D-Iowa, would create a supplemental crop-insurance program in lieu of continued ad-hoc disaster programs. The plan would also shift the counter-cyclical programs to a national per-acre revenue target price. Marketing loan rates would also be adjusted based on average annual prices over the past five years. Harkin has sent copies of his proposed chairman's mark to other members of the Senate Agriculture Committee, but those documents have not been made public.

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More apple charts - US Apple Association

U.S. Apple Processing Utilization - http://sheet.zoho.com


The value of fresh cut apples has accelerated from next to nothing in 2000 to about $12 million last year.



U.S. Apple Utilization Summary - http://sheet.zoho.com

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The UK's Wal-Mart

Tesco's is coming to the U.S. with a reputation as a innovative and effective international retailer. As it prepares to launch U.S. Fresh & Easy stores in Western states, it is taking some abuse in the U.K. What did Jesus say.... "A profit is not without honor except in his own country."

From the UK Telegraph:

Manningtree to fight Tesco superstore plan : There have been widespread fears that Tesco's dominance of the market is creating 'ghost towns' because small High Street shops are being forced out of business.
The Competition Commission is looking at the effect of the big retailers on local competition in its latest inquiry which was extended recently after emails were discovered from Asda and Tesco allegedly instructing suppliers to lower their prices.
A survey of 50 senior directors of supermarket suppliers published last week found that three quarters do not believe their firms are protected by Office of Fair Trading rules. More than half said they feared making complaints against supermarkets because they might lose their contracts.


Call for supermarkets watchdog
A watchdog with legal powers to stop the exploitation of farmers and other small suppliers by the UK's biggest supermarkets should be created as soon as possible, a high-profile group of MPs, pressure groups and think tanks said this weekend.
A group of 16 wide-ranging organisations, including the Campaign to Protect Rural England and the New Economics Foundation, is calling for the creation of an independent ombudsman along the lines of Ofcom, the TV and radio regulator, to keep the power of the UK's Big Four supermarkets - Tesco, Asda, J Sainsbury and Wm Morrison - in check.
Calls for the establishment of a supermarket watchdog, already being dubbed Ofshop by some insiders, come as supermarkets face renewed scrutiny over their treatment of food producers, manufacturers and farmers. Earlier this month the Competition Commission, the government's competition regulator that is 15 months into a massive investigation of the £95bn supermarket sector, ordered Tesco and Asda to hand over millions of emails from earlier this summer after evidence of alleged threatening behaviour came to light.


'Suppliers suffer from supermarket price cuts'
In the Eighties a joke used to do the rounds of food manufacturers: "What is the difference between a member of J Sainsbury's buying team and a terrorist?" Answer: "You can negotiate with a terrorist."
This gallows humour was intended as a lighthearted dig at the power of Sainsbury's, which was then the UK's biggest supermarket group, by its suppliers. But 20 years on, the debate over supermarkets' dominance rages as wildly as ever.
We buy three-quarters of our food from the so-called "Big Four" supermarkets - Tesco, Asda, Sainsbury's and Morrisons. As a result of this massive share, the government competition watchdog has embarked on its third major inquiry into the £95 billion sector in seven years. A major issue for the Competition Commission's inquiry, which began in May, is supermarkets' behaviour towards the food producers and farmers from whom they buy their goods.
Last week The Sunday Telegraph reported a dramatic twist in the inquiry. The commission, which is due to publish its initial findings on supermarket power next month, has unearthed a number of emails that it suspects point to threatening behaviour by two of these retailers, Tesco and Asda, towards their suppliers.

t t
TK: I've heard the terrorist joke before in a different context, but it works. Another funny line comes from the last line of the "watchdog" story:" All supermarkets deny that they exploit their suppliers." The better decision would have been to say, "no comment." The relationship between suppliers and retailers is what it is. The supermarket wields the power in almost every instance.

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Teaching a man to fish


TK: Here is a column by Dean Kleckner, a trade analyst with deep ties to American agriculture. Kleckner is featured in the Weekly Trade and Technology newsletter, and his column this week speaks to what he believes is the most beneficial kind of long term assistance Peru could receive - economic opportunity via a free trade deal. It is also worth pointing out that U.S. produce companies that do business with Peru already give the best assistance to Peru by providing a market opportunity for fresh produce like asparagus, citrus and onions from the South American country.

From Dean:

A horrific earthquake in Peru has left more than 500 people dead and thousands homeless. In Pisco, the hardest-hit city, 80 percent of the buildings have collapsed. The place “seems like it was bombed,” said a local official, according to the New York Times.
Americans have responded to this natural disaster with prayers, compassion, and donations. Last Sunday, many churches held special collections for the victims. Organizations such as the Red Cross (800-HELP-NOW), Catholic Relief Services (877-HELP-CRS), and Save the Children (800-728-3843) are pitching in as well. In Washington, the Embassy of Peru has established two bank accounts for accepting financial help (visit the website or call 202-833-9860).
All of these first-response efforts will help in the short term by making sure Peruvians have food, water, and other basic necessities.
The earthquake caused such massive destruction, however, that Peru will be plagued by long-term problems. The best way for the United States to help it address these significant challenges won’t be through foreign aid, but rather through international trade--and specifically through the passage of the U.S.-Peru Free Trade Agreement, which is currently before Congress.
It all goes back to the famous proverb: Give a man a fish and he will eat for a day, but teach a man to fish and he will eat for a lifetime.
Right now, it’s appropriate to give suffering Peruvians all the fish they can eat, so that they can begin to climb out of the ruins of an earthquake that measured 8.0 on the Richter scale, plus a series of brutal aftershocks. Once they’re back on their feet and standing on stable ground, everyone’s interest lies in making sure they can stay there and begin the difficult process of reconstruction.
Rather than giving them handouts, we should provide them with economic opportunities.
To a certain extent, we already do: Trade between the United States and Peru is currently worth more than $7 billion annually.
Yet we can do better. Approving the free-trade deal would boost this $7-billion figure. Much of the new economic activity would benefit Peruvians and create jobs for them. It would help them build upon recent success: Their economy is currently growing by nearly 8 percent a year and inflation is less than 2 percent. The Economist says that this is Peru’s “best overall performance since the 1960s.”
More trade also would benefit Americans, who would have better access to the Peruvian marketplace. Two-thirds of all U.S. agricultural products immediately would enter Peru without paying tariffs and all tariffs would vanish over the next 17 years.
This is a win-win, because it would give our farmers a new export market and reduce the cost of food in Peru.
And that’s only one portion of the pact. The agreement also would improve access for manufactured goods, the service sector, and investments. It would strengthen intellectual property rights in Peru, too. In recent months, the deal has been revised to include new labor standards and environmental protections.
The bottom line is that the U.S.-Peru Free Trade Agreement would increase the ability of Americans and Peruvians to exchange goods and services with each other. The only losers would be tariff collectors and economic isolationists, of which the U.S. has plenty.
The trade deal already has the full support of the White House. Its fate in Congress remains unclear, though it appears to have bipartisan support. Earlier this month, before the earthquake struck, congressional Democrats led by House Ways and Means chairman Charlie Rangel met with Peruvian officials in Lima--and Rangel indicated a desire to hold hearings in September.
Those hearings are now more important than ever. They represent the best way for the United States to help Peru recover from its recent tragedy.
Because of the earthquake, the Peruvians have our sympathy. It’s now imperative that we give them more than our condolences--and provide them with the kind of hope that only economic opportunity can deliver.

Dean Kleckner, an Iowa farmer, chairs Truth About Trade & Technology www.truthabouttrade.org

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Lime hot

Mexican limes F.O.B. Texas 8/6 to 8/22 - http://sheet.zoho.com

Cal of our Fresh Produce Industry Discussion Group started a thread about the hot lime market, with some people talking about rumors of possible $40 per carton prices at the border. As the above chart shows, the lime market has already had a significant run up in prices this month.

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U.S. Per Capita Apple Consumption

U.S. Per Capita Apple Consumption 1993-94 to 2006-07 - http://sheet.zoho.com



Per capita fresh consumption of fresh apples hasn't kept pace with apple juice, but growers are generally pleased with the profitability of the fresh market and expect another good year in 2007-08.

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Sunday, August 26, 2007

Apple Variety Output

U.S. Apple Variety Production - http://sheet.zoho.com


Above is one of the data sets from the U.S. Apple Association Marketing and Outlook Conference. The trend of rising gala output and falling red and golden delicious harvests continues.

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Fun for consumers

Here is the link to Desmond O'Rourke's presentation at the U.S. Apple Association Marketing Clinic on how "fun" plays into marketing fresh produce. Conversely, O'Rourke touches on how marketing food as healthy can be done at your own peril.

From the introduction:

Most of us build our marketing and promotion efforts for apples and other fruits on the basis of a few major assumptions that we know to be right.
Consumers are rational. True, except when they behave irrationally.
Buyers are adults. True, except for the times when they want to behave like children.
Consumers understand their own motivations. True, except when they are screwed up or deceive themselves.
Consumers can tell you what they want. True, but they sometimes lie both to themselves and to others.
In the next few minutes, I hope to show why we need to be much more cautious in our assumptions about consumers. I will present some recent research evidence that examines how and why consumers really think and behave. Finally, I will suggest some new approaches that will be needed throughout the apple industry as we consider future efforts to woo consumers.

TK: You'll appreciate Desmond's take on this issue. Here is the audio from his remarks.

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More thoughts on the Peru disaster

TK:Bruce McEvoy continues the public dialogue about the industry response to the earthquake in Peru. Here in a letter to Nancy Tucker of PMA, Bruce expresses thanks to Nancy Tucker for information she shared about Caritas.
Then he writes:

I’m going to continue the dialogue with our colleagues in order to further explore what the broader produce industry might do to support the relief efforts in Peru. I want to address awareness of the need, and the importance of simplicity in fundraising.

If you are not directly involved in production or sourcing produce from Peru, you are probably aware of the tragedy but the details can be overshadowed by other daily issues and concerns. We have to find a way to get the facts to the industry, in order to trigger that latent compassion and generosity that resides in all our industry friends, the willingness to support a humanitarian relief effort.

In 2004 the PMA allowed me to address the International Forum in order to position for the trade the post-hurricane situation in Florida. We used very simple and factual sound bites of what happened, and we certainly had no need to exaggerate. You could hear a pin drop in the room, and many of our friends had tears in their eyes in learning the true extent of the damage, particularly the number of displayed farm workers. Immediately following the session a number of retailers promised to support special promotion features as a source of fundraising. Other companies suggested donations from established foundations within the industry, and of course there were personal gifts

Once the industry is focused on a campaign, for example raise $1 million for Farm Worker Housing Relief and Child Care, the process has to be simple and clear. What registered Foundation will hold the funds and contributions? How will the funds be used? Who will have oversight on the actual use of relief funds? Following the 2004 hurricanes we lost valuable time and probably significant donations because we couldn’t tell a retail partner or other donors where to send the contribution. Finally, we were able to host this special Farm Worker Relief Fund within the registered foundation of the Florida Fresh Fruit and Vegetable Association.

I dwell on the need for an umbrella industry effort since the situation in Peru mirrors our experience in Florida. A natural disaster that touched the hearts of people around the work, and relief was instantaneous. Yet when the headlines were gone of the front pages thousands of farm workers and their families were still homeless. That’s when we need to reinvigorate hope! Perhaps we have one Peru Day in October to conduct fundraising and to elevate the need. We certainly can get the message out through friends in press, but there is still the need for that industry umbrella. As I’ve stated previously, this is beyond the scope of one company. It needs a proactive industry or time will solve the problem.

As always, I look forward to your insights.

Regards,

Bruce

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Saturday, August 25, 2007

Why don't we eat more?

That's the gist of The Los Angeles Times piece on produce consumptoin this morning. The lede makes me laugh:

If fruit and vegetables are so great, everyone must be eating tons! Well, they aren't.

TK: Any lede that contains an exclamation point is priceless. Let's continue!

The latest survey from the U.S. Department of Agriculture, published in March using data collected from 1998 to 2002, found that just 28% of American adults get their basic two servings of fruit, and 32% get their three vegetables.

TK: The article goes on to say that the deficiency in f/v consumption is probably worse now and then explores why we don't eat like should. (Hank, why do you drink?) One expert says we are programmed to like fat, sugar and salt, and an accusing finger also is pointed out the disparity in advertising dollars between what f/v spends and what fast food/manufactured food processors spend. Other problems include lack of knowledge of how to prepare produce, availability and cost. What caught my eye in this story - given my recent trip to the U.S. Apple Association Outlook and Marketing Conference - was the last line of the story:

"If you had an apple on the counter, lots of people would pass it by. But if you cored it and pared it, the apple would go in seconds." '

TK: U.S. Apple estimates now put the volume of fresh apples used to make apple slices between 2 million and 3 million cartons per year and the category is growing fast. More later on the presentation at the conference by Tony Freytag, marketing director of Crunch Pak LLC .

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Discussion board roundup 8/25

Turns out I was looking at the Fresh Produce Industry Discussion Group this morning and come to find out that I am only the third most prolific poster to the board I this month. We now have 76 members, and I like to see the continuing increase in the size and activity of the group.
I have got to tip the hat to Big Apple and Luis, who continue to post great links and insights. Here is a rundown of what's active right now.

Mixed messages What's the true picture of risk of foodborne illness linked to fresh produce

Almond ads face labor threat Luis post link from Fresno Bee that reveal labor tensions threaten the California almond industry's ability to tap Market Access Program funds for overseas advertising.

How can the industry help Peru - A letter from Bruce McEvoy? Responses to both Bruce McEvoy's letter and PMA's response found here.

China to launch new label on exports Big Apple posts the link with the info that a new labeling system for China's food exports will begin Sept. 1. The Economic Times reports:
Food exports that have passed inspections will carry the label "CIQ", which stands for China Inspection and Quarantine, the China Daily reported, citing a regulation from the nation's quality watchdog. Packing must also carry information, such as the producer's name and address, batch number and production date, to keep the source of any potential quality problems on record and stem fake exports, the report said. The new labeling system would begin on September 1.

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Friday, August 24, 2007

Fresh Talk Poll #4 - Irradiation labeling or not

We have three polls in the can, and the results of all three previous Fresh Talk polls can be found here. Here are the results of last week's poll:

Have foodborne illnesses linked to spinach and lettuce generated distrust of produce among restaurant operators?
1. Not at all
1 (7%)
2. For a period, but not now.
7 (53%)
3. Not for all produce items, but definitely for spinach.
3 (23%)

4. Yes. Foodborne illness outbreaks have significantly reduced operator trust in produce.
2 (15%)


This week's Fresh Talk poll is this:
Should a radura symbol or any other labeling be required to inform consumers fresh produce was irradiated?

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China is in the house

One of the great things about the U.S. Apple Association Marketing and Outlook conference here in Chicago is the international flavor of the presenters. This year, the clinic had apple experts from both China and Europe give windows of insight to their world.

The presentation about the Chinese apple industry - primarily focusing on apple juice concentrate - spoke to the normal issues of crop size, supply and demand and capacity. However, Michael Choi, of Zhonghu America Corp. also spoke to the issue of food safety.

As for supply and demand, the Chinese apple crop is pegged at 21.2 million tons, down from last year's harvest of 26.05 million tons in 2006 (Choi said the official estimate for last year was too high). Acreage has decreased by 2% but yields have been increasing in recent years. A greater percentage of the crop is being processed, with about 30% being used for processing compared with less than 10% used for processing about eight years ago.
Even though China doesn't use all the 4,00 metric tons per hour capacity it has for processing juice concentrate, Choi said another 1,000 metric tons per hour capacity is being added for the upcoming season.

As for food safety, Choi ticked off several reasons why buyers should trust the safety of apple juice concentrate from China. "We have no issues compared with the other imports like toys," he said.

Growers are audited on pesticide use, with every single lot testing. Extreme filtration, high temperature processing, aseptic packaging, cold storage and refrigerated container transport to the U.S. The only possibility for adulteration may be when the concentrate may be sweetened or made more acidic when it arrives in the U.S.

Choi listed an alphabet soup mix of HACCP and quality control protocols that Chinese facilities satisfy. Out of 150 days of processing during the year, a Chinese apple juice plant may have auditors in it 30 of those days from various third party or Q and A teams. Perhaps the weakest part of his case was his point that U.S. FDA, USDA and Customs also inspect Chinese apple juice imports.

China's long-running bid to win access to the U.S. market for its fresh apples continues (Choi didn't speak to this point) and U.S. apple industry sources said it may come up this fall in meetings between the two countries. However, China's spate of food safety issues has hurt its cause, notwithstanding the impressive-sounding arguments for the safety of apple juice concentrate imports.

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Thursday, August 23, 2007

Mixed messages

Danny Dempster of the Canadian Produce Marketing Association has drawn some flak for his column about produce safety. Some academic critics have called him to task for painting too rosy a picture on produce safety. This Barfblog post is an example of the criticism:
From Ben Chapman:

While Dempster plays down the FBI statistics, he forgets to mention one that I like to use -- the Ontario Ministry of Agriculture Food and Rural Affair (OMAFRA) Food Safety Science Unit (FSSU) estimates that 41 per cent of foodborne illness in Ontario can be attributed to produce. This exceeds every other food group including meat, fish, dairy and eggs. So is produce the safest thing you can eat in other parts of Canada, just not Ontario?, as

Bob Brackett of the FDA addressed the issue of what was happening with produce related foodborne illnesses in December 2005 when I visited the FDA offices. Remember this is before the spinach related foodborne illness. From the archive:

A new focus: In the past, Brackett said, produce has been considered one of the least risky of all foods, with less than 1% of foodborne illness outbreaks linked to fruit and vegetables.
Now that percentage is from 12% to 15%, and Brackett said produce is associated with foodborne illness outbreaks nearly as much as any food the FDA regulates -- at about the same level of seafood.
"This is something that has happened in the last decade," he said, adding that there is only speculation why fresh produce is linked to greater numbers of outbreaks. For one thing, people may be eating more produce and have more exposure. A second possibility, Brackett said, is that more produce being consumed comes from large distribution centers throughout the country. Any mistake in handling from those facilities can be spread more easily, he said.
Another potential reason might be that regulators are paying more attention to produce in their surveillance of foodborne illness outbreaks than they have before.
"Whereas in the past, there was an assumption that (an outbreak) couldn't have come from produce, they are now looking at (the link) harder and finding it," he said.
Brackett notes high profile outbreaks of foodborne illness in recent years have been tied to honeydew melons, cantaloupe, sprouts, green onions and lettuce.
"The ones that are really alarming to me involve E. coli O157:H7 because it is so virulent it can be life threatening," he said.
Brackett said there is a sense of urgency at the FDA to handle food safety problems, particularly for commodities that have been associated with the outbreaks.
"Those are the ones we want to see very specific guidance, to really look at and get much more detailed," he said.
Lettuce has attracted attention, and Brackett said the value-added component of the industry merits further study.
While the development of new value-added fresh-cut products may have focused on shelf life, texture and taste, Brackett wonders if enough research has been devoted to food safety.
"There has not been as much research on the environmental ecology of pathogens, and there's a gap there," he said. "The more we know, the more we can do to prevent it."
By December 2006, Brackett said, the guidance for lettuce should be completed, with details not only about whole lettuce but also fresh-cut lettuce.
"That's the next priority," he said.
Brackett said the government's message to encourage greater consumption of fresh fruits and vegetables is challenged by the increase in illness outbreaks.
He said the food safety question is truly in the industry's court.
"We want to see them succeed," he said.

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Full steam ahead

Don Harris of Wild Oats is speaking tomorrow at the U.S. Apple Association marketing conference on "Retail Perspectives on Organics." Visiting with him briefly at a reception tonight after my presentation of the 2007 Apple Man of the Year award to Jeff Crist of Crist Bros. Orchards, Inc., Walden, N.Y., Harris passed on the news that the U.S. Court of Appeals denied the Federal Trade Commission's request for a stay on the Whole Foods-Wild Oats merger, and that transaction is cleared to go forward.
Of course that leaves much of the Wild Oats team up in the air as to what will happen next. How many will be assigned to Whole Foods Rocky Mountains, how many will go to Austin, how many will be released? Those are all questions that now loom large.

Here is the report from CNN via PR Newswire:

Whole Foods Market, Inc. and Wild Oats Markets, Inc. today have announced they are now legally cleared to proceed with their merger as the U.S. Court of Appeals for the District of Columbia has denied the FTC's request for a stay to preclude the closing of the merger pending the FTC's appeal and has dissolved the August 20, 2007 administrative injunction, which had prevented the transaction from going forward while the court considered the FTC's motion.
"We are pleased to have cleared what we expect to be our last legal hurdle," said John Mackey, Chairman, CEO, and co-founder of Whole Foods Market. "We look forward to closing this merger and 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 and existing team members."
Whole Foods Market's tender offer to purchase outstanding shares of common stock of Wild Oats expires Monday, August 27, 2007, at 5:00 p.m., Eastern Time.
On February 21, 2007, Whole Foods Market entered into a merger agreement with Wild Oats, pursuant to which Whole Foods Market, through a wholly-owned subsidiary, has commenced a tender offer to purchase all of the outstanding shares of Wild Oats at a purchase price of $18.50 per share in cash. On June 6, 2007, the FTC filed a suit in the federal district court to block the proposed acquisition on antitrust grounds and seeking a temporary restraining order and preliminary injunction pending a trial on the merits. Whole Foods Market and Wild Oats consented to a temporary restraining order pending a hearing on the preliminary injunction, which concluded on August 1, 2007. On August 16, 2007, the U.S. District Court for the District of Columbia denied the FTC's motion for a preliminary injunction. In order to permit an orderly review by the District Court and the Court of Appeals, Whole Foods and Wild Oats agreed not to consummate the transaction until noon on Monday, August 20, 2007 in order to permit the FTC to have an opportunity to request a stay of the District Court's decision pending appeal. On August 17, 2007, the FTC filed with the District Court a motion for a stay pending appeal, which was denied the same day. The FTC also filed a motion with the U.S. Court of Appeals for the District of Columbia for a stay pending appeal the District Court's order. On August 20, 2007, the United States Court of Appeals for the District of Columbia Circuit issued an administrative injunction preventing the transaction from going forward, pending further order of the Court of Appeals, in order to allow the court sufficient opportunity to review the FTC's motion

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PMA response to Peru disaster

TK: A letter from Nancy Tucker follows. It speaks to the Bruce McEvoy's earlier letter asking how the industry could best deliver aid to Peru's earthquake victims. Thank you, Nancy, for a thoughtful and helpful response.


Dear Bruce, Jim, and Tom;

It has been great to see the concern that you all have voiced regarding the impact of the earthquake on the industry and people of Peru. Our members in that country have told us that while their business operations are very functional, there is a huge need for support to help thousands of farm workers and others rebuild their homes and their lives.

We asked our members and colleagues in Peru how we might best support the rebuilding efforts in the country. We learned that many of the commodity groups (asparagus, citrus, etc.) are engaged in valiant efforts to help their workers. However, many of our contacts recommended that we support an organization called Caritas (more information at (
http://www.caritas.org/) that is very engaged in responding to this disaster. Information on their efforts can be found here: http://www.caritas.org/jumpNews.asp?idLang=ENG%26idChannel=3%26idUser=0%26idNews=5234

PMA has a long tradition of supporting our members in times of special humanitarian need – whether it be from hurricanes, earthquakes, droughts, freezes, etc. - both in the U.S. and abroad. PMA is donating $1000 to Caritas for relief efforts in Peru and offers the information about this organization for other companies to consider if they wish to support these efforts.

All my best,

Nancy


Nancy J. Tucker, CAE
Vice President, Global Business Development
Produce Marketing Association
1500 Casho Mill Rd.
P.O. Box 6036
Newark, DE 19714-6036
USA
Tel +1-302-738-7100 ext. 3005

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Apple show

The U.S. Apple Association Marketing and Outlook Conference is under way, as wind storms and tornado warnings surround Chicago. The regional crop discussions are taking place now, and the theme of this year's crop outlook is positive for the growers. The USDA has predicted a national crop of 221 million bushels, off 7% from last year and 2% below the five year average. US Apple modifications to that estimate, released next morning, will likely be limited but typically fall on the short side of the USDA.

Today, presentations on China and European apple production were followed by talks about the role of genetic research in apple research from Washington State University researcher Amit Dhingra and a lighthearted talk by tree fruit expert Desmond O'Rourke called "Fun for Consumers."

O'Rourke highlighted research that shows consumers are averse to doing the right thing when it comes to healthy eating choices. Even without tasting food items, they believe the food tastes badly if it is said to be good for you. And consumers may not be as savvy as we think they are. O'Rourke said one study showed that even some wine experts were unable to distinguish between red and white wine in blind taste tests.

How to solve this puzzle in marketing? O'Rourke didn't have time to unpack all the possibilities, but perhaps the central message is that consumers are attracted to things that are illegal, immoral or make them fat. Do we need an outlaw brand for produce, a PLU sticker with a Raiders skull and crossbones? I'll take the credit when we see it in the store.

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