Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, November 30, 2007

Bob Carey rewind

I had the privilege to do a Q and A with former PMA executive Bob Carey earlier this month and the Q&A will appear in the Dec. 3 edition of The Packer. Here is a just a 3-minute audio excerpt where Bob talks about the early days at the Produce Marketing Association (then called the Produce Packaging Association). By the way, Bob mentioned he will try to make an appearance at the PMA show in Orlando next year.

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WIC rule

The latest on the long anticipated rule that adds vouchers for fruit and vegetable purchases to WIC food packages is that it may be published on Dec. 6 or Dec. 7. In fact, the USDA has scheduled a reception related to the WIC food packages for Dec. 6, according to Lorelei DiSogra of United. However, the USDA still has not released language of the rule yet.

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Retail report - yawn

The USDA's National Fruit and Vegetable Retail Report revealed a little less promotion activty for fruit and vegetables at retail this week. From the report:

Advertised Prices for Fruits & Vegetables at Major Retail Supermarket Outlets 11/24 to 12/06

Weekly ads of fruits and vegetables decline.
Produce ads declined in overall volume as the December holiday season begins in earnest. shoppers are focusing more on home items for the upcoming celebrations such as bows, decorations, and wrapping paper. Floral items such as amaryllis, Christmas cactus, cut flowers, holiday pack carnations, and poinsettias. Many retailers began featuring party
trays and prepared meals on a holiday theme. Christmas tree ads were also prevalent.
Overall, there were more vegetable ads which accounted for 56 percent of the overall total. Retailers were featuring more of the staple crops including baby peeled carrots, russet potatoes and sweet onions. Asparagus remains as one of the top vegetable features as well. Other items that were featured included assorted hard squash varieties, plum/roma tomatoes, and romaine hearts. Organic item promotions included carrots, cauliflower, lettuce, and onions. Packaged salads were also notably advertised. The top leading fruit ads observed were apples, blueberries, clementines, and pears. Retailers were also featuring various citrus commodities including juice oranges, satsuma mandarins, pummelos, and tangerines. Cherries from South America are beginning to be promoted. Organic item promotions included apples, avocados, navel oranges, and pears. Buy one, get one free and 10 for 10 ads were featured on apples, blueberries, grapefruit, mangos, oranges and potatoes.





U.S. Chilean cherry imports - http://sheet.zoho.com

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Consumers Union says....and do we care?

The comment period on the USDA's advance notice of proposed rulemaking seeking comments on the creation of a federal leafy greens marketing agreement/order is coming to a close Dec. 3, as I wrote about in an earlier post. With the end of the comment period comes various stakeholders weighing in on the concept. Below are the thoughts of Consumers Union, which just slid across my inbox this morning.
From CU:

Consumers Union Opposes Federal Marketing Agreement to Oversee the Safety of Leafy Greens

Consumers Union has provided comments on the USDA’s Advance Notice of Proposed Rulemaking regarding the proposal to handle regulations of leafy green products under the Agricultural Marketing Agreement Act of 1937. The comments, filed by Elisa Odabashian, West Coast Director of Consumers Union, nonprofit publisher of Consumer Reports, can be found here: http://www.consumersunion.org/pub/core_food_safety/005238.html

In its public comment, Consumers Union opposed the use of a federal marketing agreement to oversee the safety of leafy greens. It asserts that assuring the safety of leafy greens is the job of the US Food and Drug Administration (FDA) and that that agency should more vigorously address the problem.

"Marketing orders were not established to address food safety, and are not an appropriate means for doing so," Odabashian wrote. "Lawmakers must act decisively and immediately to give FDA and USDA mandatory recall authority to remove tainted food from the marketplace."

Consumers Union points out that the California Leafy Green Marketing Agreement was recently put into effect in that state to monitor the safety of leafy greens in the wake of last year's deadly spinach E. coli outbreak that sickened 205 and killed three across 26 states. In an attempt to shore up consumer confidence and to avoid being regulated from outside, the California leafy green industry--heavily influenced by Dole and other major players--developed its own best practices guidelines and trace-back systems behind closed doors and without public comment. The industry appointed itself as the safety oversight board, including some of the very companies, such as Dole, which have been accused of marketing contaminated leafy greens. The resulting marketing agreement, which is voluntary, was presented as the panacea for the safety of leafy greens. Odabashian notes, "But if not all leafy greens in the marketplace are subject to the same safety standards, and if Good Agricultural Practices (GAPs) are not required on every farm and Hazard Analysis Critical Control Point (HACCP) programs are not required at every processing facility, the door remains open for contaminated produce to reach consumers."

Consumers Union believes that Congress should establish a single food safety agency to ensure better safety of leafy greens, with substantial resources to hire more inspectors and enforce required GAPs and HACCP programs at processing facilities.

"Until the highest safety standards are rigorously enforced by a single agency that has robust, mandatory authority to inspect produce, farms and processors, and recall contaminated leafy greens from the marketplace, consumers and industry will continue to be harmed by tainted food," Odabashian concluded.

TK: CU clearly favors granting the FDA, or better yet, a single agency, with "robust, mandatory authority to inspect produce farms and processors and recall contaminated leafy greens from the market place." This issue is far from settled, and it will be revealing to see the comments of United, Western Growers, PMA and others who may choose to chime in to the USDA.
One story that I did this week for The Packer focused on a produce working group of the Association of Food and Drug Officials. That group will publish, probably sometime early next year, a first draft of a "model produce safety code" that will spell out on farm produce safety standards for all produce growers, with commodity specific standards being compiled in a separate way. If completed and perfected, this "model language" could eventually be adopted by states throughout the U.S. as mandatory on-farm regulation for produce growers. That working group has a wide representation of interests as well, including involvement from USDA, FDA, produce trade associations and the Center for Science in the Public Interest. While there many models out there being explored by the industry - a model produce safety code, a national marketing agreement/order for leafy greens, state specific regulations - I think we will continue to hear increasing and consistent calls from consumer groups for expanded FDA authority and oversight.






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Paradox

The December issue of the Northwest Horticultural Council News was informative, well written and insightful. I pull this excerpt to post on Fresh Talk. From NHC:

The complexities and paradoxes of the bundle of public policy issues that come under such terms as “food safety” and “green” are amazing. Do we want to encourage small farms? Then why require stringent record keeping and costly food safety testing requirements that serve to drive operations ever larger?

Do we want to reduce the unneeded material taken away in a shopper’s grocery cart? If so, why do retailers impose ever more plastic packaging requirements on shippers in the guise of food safety?
Should legal liability fears be a greater driver of food safety standards than science itself?

And the list goes on.


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Reports of a deal are greatly exagerrated

One produce industry lobbyist said there were rumors earlier in the week that the Senate has come to grips with a deal that would allow the farm bill debate to advance. However, the lobbyist said those expectations have been shot down by those closer to the process.

Likewise, Sally Schuff, writing for Feedstuffs in a story with yesterday's dateline, confirmed with Senate Agriculture Committee press secretary Kate Cyrul that no deal had been struck yet.
Possible amendments that Senate leaders are being pressured to consider include amendments on repeal of the estate tax, reform of the alternative minimum tax and even AgJobs.

It would be great to say that failure is not an option. Unfortunately, failure - and the waste of tens of thousand of hours of work toward a farm bill that is more equitable for the fruit and vegetable industry - is rushing headlong toward a divided Senate.

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Thursday, November 29, 2007

Retail report - Apples and Oranges

U.S. Retail Red Delicious Prices - http://sheet.zoho.com



U.S. Retail Navel Orange Prices - http://sheet.zoho.com

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Turnabout

This may not have been what the Good Book had in mind with the verse, "Do unto others as you would have them do unto you." Don Schrack of The Packer is doing a story this week about continued "issues" between Florida and California citrus leaders. The letter below explains itself, but watch for Don's story for the latest from industry leaders:

STATE OF CALIFORNIA PHYTOSANITARY ADVISORY
DEPARTMENT OF FOOD AND AGRICULTURE NO. 32-2007
1220 N Street, Room A-372
Sacramento, CA 95814
DATE: November 2, 2007
TO: All County Agricultural Commissioners
FILE: Summary of State Regulations – Florida
SUBJECT: Florida Requirements for Certification of California Citrus Fruits

The Florida Department of Agriculture and Consumer Services (FDACS) has informed us that, effective December 1, 2007, all shipments of citrus fruit from California to Florida must be certified free of Septioria citri, a fungal pathogen that can occur on damaged fruit surfaces. Inspection, treatment, testing, and certification procedures are outlined in the attachment which was provided by FDACS. The FDACS informed us that these procedures are a result of the requirements established by South Korea for the importation of citrus fruit from California. According to FDACS, Septoria citrii is not known to occur in Florida, and at this time, FDACS does not have data supporting that this pathogen occurs anywhere else in the United States except California. FDACS indicates in the attachment that California shippers may enter into compliance agreement with the county agricultural commissioner to follow the outlined certification procedures. Growers under compliance will be listed on an “Approved Citrus Shippers” list sent from CDFA to FDACS on an as needed basis. Growers that do not enter a compliance agreement and that do not appear on the “approved” list must use a stamp or sticker on the outside of each box, designed as in the attachment, to indicate to officials in Florida that the certification procedures were met.


Page 2
October 31, 2007
Under authority of Section 581.031(7), Florida Statues, Rule Chapter 5B-3.0038 F.A.C., the Florida Department of Agriculture and Consumer Services (FDACS) has declared a quarantine on citrus fruit from California and other areas of the country where Septoria citri is known to occur. The State of Florida will authorize firms to ship into Florida citrus fruit, which were grown in California, and which otherwise would be prohibited entry into Florida, under the following conditions: CDFA should ensure:
1. Prior to commencement of shipping, this office is provided with the names and addresses of
approved shippers.
2. Shippers may only be approved if under a compliance agreement (approved by FDACS) with CDFA to ship only citrus fruit that have been authorized.
3. Fruit shipped must come from a grove that has been inspected by CDFA inspectors within 30 days of harvest and found free of Septoria citri.
OR Latency testing for all counties in California as outline below:
• Only symptomatic fruit will be sampled
• Fruit harvested from a grower lot can be shipped within 45 days from the lab result date.
Samples must be taken 20 to 30 days prior to harvest
• 20 fruit sampled from each grower lot intended for shipment to Florida
• Incubation procedure of up to 7 days using isolated lesion will be used in conducting the
tests
CDFA will supply FDACS weekly with the grower lots tested positive for Septoria citri
CDFA will provide at any time during the season testing results of grower lots tested
4. Citrus fruit must undergo post-harvest treatment with an FDACS approved fungicide prior to shipping.
5. CDFA shall closely supervise shippers to ensure that only symptom-free fruit is shipped to
Florida. Supervision shall include regular on-site inspections and review of all citrus receipts and shipment records.
6. All citrus fruit shipped from California to Florida shall be certified as in compliance with 7 CFR 301.78, Subpart-Mediterranean Fruit Fly.
7. In addition to any certificate required by federal regulation, shipping invoices and each container or box shipped must be stamped with a certificate authorized by CDFA affirming that the shipment meets the entry requirements of Florida’s Septoria citri quarantine. In lieu of a paper certificate, a sticker or stamp-type certificate may be used with the following format: The citrus fruit in this shipment meets all Florida entry requirements for Septoria citri and has been inspected and found apparently free of Septoria citri.
(signature)
Authorized Representative
8. Citrus fruit shipped to Florida form California under these guidelines may be inspected, sampled, and tested upon arrival.
9. Violation of any of the conditions or the detection of any serious plant pest in any shipment shall be sufficient cause for immediate suspension from shipping.

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Call for support

I'm passing on this important message from America's Second Harvest Rick Bella:

America's Second Harvest Issues National Call for Support

America's Second Harvest is urgently calling for national support to raise funds to help millions of Americans facing hunger during the holiday season.

America's Second Harvest and the people served by food banks from coast to coast are facing a potential crisis. We are projecting an immediate food shortage of 15 million pounds -- the equivalent of more than 400 truckloads or 11.7 million meals -- by the end of the year.

Need is High Nationwide

The demand for food assistance is strong across the United States. The ailing economy and rising food and fuel prices are taking a toll on struggling families' budgets. Moms and dads face impossible decisions like whether to pay to heat their homes and keep their children warm or buy groceries to feed them. When they find themselves in desperate need, they turn to our network and the agencies we serve for help. Right now many of our member food banks and food-rescue organizations are seeing an increase in demand, as high as 20% in areas including Denver, Orlando and Phoenix.

The Farm Bill

Meanwhile, food banks nationwide are experiencing dramatic declines in food aid from surplus commodity purchases by the federal government. This has occurred because a healthy farm economy has required less intervention in order to support prices.

The Farm Bill, which is currently stalled in the Senate, authorizes funding for nutrition and food assistance programs for low-income families. Enacting a new Farm Bill would strengthen a long-term successful partnership between food banks and USDA, and provide much-needed food for those most in need throughout our nation.

America's Second Harvest food banks and the people we serve need a strong nutrition title in the Farm Bill enacted as soon as possible to begin replenishing dwindling inventories. Additionally, we need help from corporate and individual donors to help us replenish empty food banks shelves.

How You can Help

Make a Donation: The best way to help hungry Americans is to make a financial donation to America's Second Harvest. Your donation will help us secure and distribute food for this campaign that will benefit our food banks and their agencies in need. Help give struggling families a reason to be hopeful this holiday season. Call 800-344-8070 or visit www.secondharvest.org to give a gift today.

Urge Your Senator to Pass the Farm Bill: You can also help by visiting the Hunger Action Center at www.hungeractioncenter.org to contact your senators and urge them to push for the quick passage of the Farm Bill; please urge them to also support increased resources for federal nutrition programs, including $250 million with indexing for TEFAP food purchases for distribution to food banks.

While Americans across the country celebrate the holiday season, more than 35 million Americans, including 12.6 million children, live in food insecure households. Support is urgently needed to stock our food banks and get food and groceries to those in desperate need.

Now is the time to give your most generous gift. The need is more critical than ever.

http://www.secondharvest.org/how_to_help/call_to_action.html

Rick Bella
America's Second Harvest - The Nation's Foodbank Network
35 E. Wacker Drive, Suite 2000
Chicago, IL 60601

Office: 312-641-6507
Cell: 219-712-3685
Fax: 312-263-1730

www.secondharvest.org



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Maybe I'm amazed

Got to give it up for the Fresh Produce Industry Discussion Group this week. Members have been quite active in posting great links, stories and breaking news, such as a couple of accounts of the Peruvian port workers strike. I'll spend a little time updating some links to the group at the margin of this blog, so be sure to visit Fresh Talk from time to time (some of you receive Fresh Talk via email, of course ) for a running list of FPIDG threads. Also, I'm sure you will find it worthwhile to be a member of the discussion group and share in the limelight.

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New poll on traceability

I have been doing a fair amount of reporting and writing today about the Produce Traceability Initiative today. The Jan. 9 meeting of the steering committee for the Initiative will be an important event, as it will probably begin to define the strategy to encourage full chain traceability in the industry. I don't know what options will be considered by the group and trade press, disappointingly, won't be allowed for the first get-together. However, that hasn't stopped me from creating a Fresh Talk poll about about traceability. You've got six days to consider your options - and by the way, you can vote for more than one answer.

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Big increase in "tangerine"

The USDA Fruit and Tree Nut Outlook report puts into perspective year on year citrus production gains for the U.S. will be substantial, particularly for oranges and tangerines (clementines). Grapefruit has taken a hit, however. The report also suggests fruit grower returns have been sagging compared to year ago levels starting in mid-June. Also find some stats about projected California avocado production in the ERS publication. From the report:


The index of prices received by fruit and nut growers dropped below last year’s indices in June and has remained lower each month through October. Fresh orange, grapefruit, and apple grower prices were lower for September and October 2007 compared with the same time last year, but fresh lemon prices were higher. On the other hand, the Consumer Price Index for fresh fruit rose this September and October over last year, with higher prices for fresh lemons and bananas.
The 2007/08 U.S. citrus crop is forecast at 12.5 million tons, 22 percent higher than last season. Most of the increase is due to bigger orange and tangerine crops, while both the grapefruit and lemon crops are forecast to be smaller. California is forecast to produce 2.2 million tons of oranges in 2007/08, 29 percent more than last year’s freeze-damaged crop. Most of California’s oranges go to fresh use. Florida’s orange crop, most of which is processed, is forecast to reach 7.6 million tons in 2007/08. If realized, it would be the biggest crop since 2003/04, but still small compared with recent prehurricane season crops. Grapefruit production for the 2007/08 season is forecast at 1.5 million tons, 5 percent lower than 2006/07, and the smallest crop since 1912, excluding the hurricane-damaged Florida crops in 2004/05 and 2005/06. Florida’s crop, which accounts for about 70 percent of U.S. grapefruit production, is forecast to decline 8 percent from last season, to 1.1 million tons. Texas grapefruit production is forecast at 272,000 tons, 4 percent lower than last season, but the second biggest crop since 2000/01.
Florida's grapefruit production for the 2007/08 season is forecast at 1.5 million tons, 5 percent lower than 2006/07, and the smallest crop since 1912, excluding the hurricane-damaged Florida crops in 2004/05 and 2005/06 (table 6). Florida’s crop, which accounts for about 70 percent of U.S. grapefruit production, is forecast to decline 8 percent, to 1.1 million tons, the lowest in 75 years, excluding the hurricane years. A decline in both the number of trees and acres between 2006 and 2007 contributed to the decline in production. Smaller sized fruit were another factor. While fruit size is a seasonal factor limiting production, the crop in Florida’s acreage, along with the very small number of nonbearing acres, is likely to be a limiting factor on Florida’s grapefruit production in the future

Lemon production is forecast at 684,000 tons for 2007/08. California’s production is forecast to be 3 percent higher than last season, and Arizona’s production is forecast to be 40 percent lower.
The 2007/08 tangerine crop is forecast to total 433,000 tons, 28 percent higher than last season. While Florida is expected to have a bigger crop than last season, it would be smaller than 2005/06. California’s crop is forecast to be 61 percent bigger than last season and 30 percent bigger than 2005/06.

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Biggest surge ever

Note coverage here from The New York Times on the new study from the Center for Immigration Studies, a think tank that advocates reduced immigration. Here is the link to a working paper of the study itself. Critics say the Center for Immigration Studies doesn't spend enough time looking at the benefits immigrants provide, but don't quibble too much over the methodology on their estimates of the numbers of illegal immigrants. None of this takes away from the argument that agriculture needs a stable, legal work force.

Here are a few summary statistics from the report:
The nation’s immigrant population (legal and illegal) reached a record of 37.9 million in 2007.
Immigrants account for one in eight U.S. residents, the highest level in 80 years. In 1970 it was one in 21; in 1980 it was one in 16; and in 1990 it was one in 13.
Overall, nearly one in three immigrants is an illegal alien. Half of Mexican and Central American immigrants and one-third of South American immigrants are illegal.
Since 2000, 10.3 million immigrants have arrived — the highest seven-year period of immigration in U.S. history. More than half of post-2000 arrivals (5.6 million) are estimated to be illegal aliens.
The largest increases in immigrants were in California, Florida, Texas, New Jersey, Illinois, Arizona, Virginia, Maryland, Washington, Georgia, North Carolina, and Pennsylvania.
Of adult immigrants, 31 percent have not completed high school, compared to 8 percent of natives. Since 2000, immigration increased the number of workers without a high school diploma by 14 percent, and all other workers by 3 percent.
The share of immigrants and natives who are college graduates is about the same. Immigrants were once much more likely than natives to be college graduates.
The proportion of immigrant-headed households using at least one major welfare program is 33 percent, compared to 19 percent for native households.
The poverty rate for immigrants and their U.S.-born children (under 18) is 17 percent, nearly 50 percent higher than the rate for natives and their children.
34 percent of immigrants lack health insurance, compared to 13 percent of natives. Immigrants and their U.S.-born children account for 71 percent of the increase in the uninsured since 1989.
Immigrants make significant progress over time. But even those who have been here for 20 years are more likely to be in poverty, lack insurance, or use welfare than are natives.
The primary reason for the high rates of immigrant poverty, lack of health insurance, and welfare use is their low education levels, not their legal status or an unwillingness to work.
Of immigrant households, 82 percent have at least one worker compared to 73 percent of native households.
There is a worker present in 78 percent of immigrant households using at least one welfare program.
Immigration accounts for virtually all of the national increase in public school enrollment over the last two decades. In 2007, there were 10.8 million school-age children from immigrant families in the United States.
Immigrants and natives have similar rates of entrepreneurship — 13 percent of natives and 11 percent of immigrants are self-employed.
Recent immigration has had no significant impact on the nation’s age structure. Without the 10.3 million post-2000 immigrants, the average age in America would be virtually unchanged at 36.5 years.


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Wednesday, November 28, 2007

CPMA's Pandemic Planning Guide

It was good to visit with Jane Proctor of CPMA about the Produce Traceability Initiative this afternoon, drawing on her observations as to the difference between U.S. and Canadian government interest in the topic and thoughts about comparative industry adoption.

On another topic, she noted the development of a pandemic planning guide by CPMA. I thought I would share what they have put together. From Friday's edition of CPMA's Produce Now update:


Finalization of the CPMA Pandemic Planning Guide for the Fresh Produce Industry
The fresh produce industry is unique among the majority of food industries which supply the Canadian marketplace. There are over 400 different species of fresh fruits and vegetables from over 150 different countries consumed in Canada every year. Conversely, Canada exports $1 billion worth of horticultural products every year. Trading in fresh produce means “just in time” shipping, delivery, receiving and marketing to ensure the highest level of quality while fulfilling demand for product. Fresh produce is both highly perishable and an essential component of healthy diets for Canadians.
Due to these characteristics, the fresh produce industry will be singularly challenged in the event of an influenza pandemic. Even though the respective government agencies have indicated that in a pandemic situation the border between Canada and the United States would remain open, this is not a certainty. Border closures would have an extreme impact on the fresh produce industry. Similarly, any human resource shortages at border points would also negatively impact the flow of fresh produce into and from the Canadian marketplace.
The purpose of the CPMA Pandemic Planning Guide is to assist stakeholders in the fresh produce industry to plan, prepare, respond and recover from an emergency event. This includes impacts due to border closures; transportation, employee, or energy shortages; a population shift away from consumption of perishables and a slowing in monetary exchange amongst business partners, etc. The Guide is organized into four main sections which cover an overview of an Influenza Pandemic, Roles and Responsibilities, General Practices and Specific Practices/Considerations. Each section provides information and tools for individual organizations to adapt and use within their own emergency planning and business continuity activities.
The CPMA
Pandemic Planning Guide is available here.
This resource tool is free of charge to everyone. At time of writing The CPMA Pandemic Planning Guide is being translated to French and will be available shortly.

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Produce Traceability Initiative

Here are the just-released facts about the Produce Traceability Initiative. From a news release this morning. Developing....

Representatives of more than 30 companies from a broad cross section of the produce supply chain including retailers, foodservice buyers and produce suppliers have been appointed to serve on the steering committee of the Produce Traceability Initiative, an industry-led effort to enhance traceability throughout the supply chain. The initiative’s sponsor associations also announced today that the steering committee will be chaired by Cathy Green, chief operating officer of Food Lion, LLC.
The initiative was launched in October by Produce Marketing Association (PMA), Canadian Produce Marketing Association (CPMA), and United Fresh Produce Association (United Fresh).
The three trade associations came together earlier this year when the boards of directors of each organization recognized the need for greater progress in implementing a consistent whole-chain traceability solution. The steering committee will develop an action plan to help the industry meet this challenge, which may include promotion of industrywide traceability best practices, establishing timelines and goals for adoption, and a creating a validation process for accountability.

Participating companies currently confirmed to serve on the steering committee include:
* seven foodservice buyers: Amerifresh, Applebee’s International, Markon Cooperative, Inc., McDonald’s, Pro*Act, Sysco Corporation, U.S. Foodservice;
* nine retail buyers: Food Lion, H-E-B, W. Newell & Co. (Supervalu), The Kroger Co., Loblaws, Safeway Stores, Inc., Schnuck Markets, Inc., Wal-Mart Stores, Inc., Wegmans Food Markets; and
* 17 produce suppliers: AEPQ (Quebec Apple Packers), B.C. Tree Fruits Limited, Ballantine Produce Co., Inc., C.H. Robinson Worldwide, Inc., Dole Food Company, Inc., Domex Superfresh Growers, Driscoll’s, Duda Farm Fresh Foods, Inc., Fresh Express, Inc., Fresh Innovations, LLC., Frontera Produce, Ltd., Naturipe Farms, LLC., The Oppenheimer Group, Pandol Brothers, Inc., Ready Pac Produce, River Ranch Fresh Foods, LLC., and Tanimura & Antle.

The initiative’s sponsoring organizations have also invited other stakeholder associations representing key business segments of the North American food industry to participate, including Food Marketing Institute, Canadian Council of Grocery Distributors, Canadian Horticultural Council, International Foodservice Distributors Association, and National Restaurant Association.
The first meeting of the steering committee will be held Jan. 9, 2008, in Atlanta, Ga. The Perishables Group will act as the facilitator for the group’s meeting.

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Organic handlers in focus

This USDA Economic Research Service report could be valuable to organic growers and marketers. Here is a description of the report, called "Procurement and Contracting by Organic Handlers":

The vast majority of organic commodities pass through the hands of at least one middleman, also called a handler, on the way from the farmer to the consumer. Certified organic handlers are certified to handle organic products in accordance with National Organic Standards. Organic handlers perform numerous functions, including packing and shipping, manufacturing and processing, and brokering, wholesaling, or distributing.
The ERS organic handler database contains select results from the 2004 Nationwide Survey of Organic Manufacturers, Processors, and Distributors, administered by Washington State University, Social and Economic Sciences Research Center. The survey covered a variety of topics related to the procurement and contracting of organic products and ingredients. Data are available on 9 commodity groups, such as fruit and nuts, and 45 commodities, such as berries and citrus. The procurement data include information from 1,038 facilities; the contracts data include information from 686 facilities that use contracts.



TK: Especially interesting, I think, are procurement and contract data the USDA has compiled.

USDA description about procurement practices:
An interactive dataset that provides information about the procurement practices of organic handlers. Search by commodity or location (national, region, and State). Find details about basic characteristics of organic handlers, their purchasing characteristics, and information about their relationship with suppliers, including important supplier attributes.


USDA description of contract data:
An interactive dataset that provides information about use of written and verbal contracts between organic handlers and their suppliers. Search by commodity. Find out about common contract provisions such as compensation methods and pricing mechanisms

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Unanswered questions

One of the great features of online stories (and I'll throw blogs into this comment as well) is the ability to comment instantly on news. This quickly reveals the attitudes of readers about an issue like produce safety. Outrage, bafflement, confusion - all can be immediately reflected in reader comments.

I point to this story about a salmonella outbreak at a Quizno's restaurant in Minnesota. From the story in the Post-Bulletin:

A foodborne illness outbreak at Quizno's Subs, 3499 22nd Ave. N.W. in Rochester, wasn't the restaurant's fault.
Larry Edmonson, an epidemiologist with Olmsted County Public Health, said studies showed that tomatoes delivered to the store were contaminated before they even got to the restaurant.
Salmonella made more than 20 Quizno's customers and employees sick in October. The store closed for one day, hired a cleaning company to sterilze equipment and reopened.



That was the story; here was the reader comment:

So tomatoes were the culprit! No mention of where, or how, or what they were contaminated with, or if they're still getting tomatoes from that same source. This article leaves a few unanswered questions.

TK: Unfortunately, there have been far too many unanswered questions for consumers to wrestle with in relation to food borne illness linked to fresh produce. The longer these questions hang in the air, the less trust consumers will place in fresh produce at retail and at restaurants. The FDA has the primary responsibility to provide answers and clarity to the public and needs to step up their outreach.

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Tuesday, November 27, 2007

A ready market

Japan will be buying significantly more U.S. oranges and grapefruit this season, according to a report from the USDA Foreign Agricultural Service.
From the Nov. 20 report:

On oranges....

California orange groves were significantly damaged by freezing temperatures in the 2006/07 season and Japanese sales of U.S. oranges reached only 2.6 million cartons (44,500 metric tons). Post estimates the new crop U.S. orange sales to recover to the pre-freeze sales level of approximately 5 million cartons (85,000 metric tons). According to Japanese trade sources, the new crop California Navels are arriving Japan in late November, which signifies the start of U.S. orange sales for the new season. Groves completely recovered from the last season’s freeze and it has been reported that the new crop has many high quality fruits. Import prices are expected to be higher in this season since there are many high quality fruit, according to Tokyo citrus traders.


On grapefruit....

The sales of Florida grapefruit have been recovering very quickly in the Japanese market since the hurricanes hit Florida citrus growing regions in 2004 and 2005. Japanese traders expect sales of 9 million cartons (approximately 153,000 metric tons) in the 2007/08 season, which will be recovering almost 90 percent from the prior season to pre-hurricane levels. The first shipment of new crop grapefruit left Florida on September 24 with a load of 7,000 cartons (approximately 119 metric tons) and is expected to arrive in Japan by early November, according to Japanese citrus traders. The fruit quality of the new crop is good and the fruit is juicy. Fruit size in general this season is relatively small due largely to the short rainfalls in August and September in the growing regions. This season’s first shipment to Japan also was about one month later than the previous season. The Florida Department of Citrus schedules a trade seminar for Japanese grapefruit buyers, users and media people in early November and this event truly signifies the start of Florida grapefruit sales promotions in Japan. The sales in early season are relatively slow but earlycrop fruit are largely used as a gift pack during Japan’s traditional year-end gift giving season. Florida grapefruit sales will come in full force in the New Year when the flavor of grapefruit improves with higher sugar content and balanced acid levels. It is also important to note that domestic citrus products such as unshu mikan tangerines dominate the Japanese citrus market until late January. Japanese citrus traders begin making their full sales pitch to market Florida grapefruit in February. The sales target is approximately 2 million cartons (metric tons) each month until May, according to traders at Tokyo Ohta Fresh Produce Market.

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South Africa citrus prospects

Like Australia, South Africa has also been hit by a drought that has limited its citrus potential. Here is the USDA Foreign Agricultural Service assessment of South Africa's citrus outlook:


South Africa’s is expected citrus 2006/07 fruit production to decrease by 5.7 percent from last year to 1.65 million MT because of the carry-over effect of the drought in 2006. However, the 2007/8, production will increase to return to a more average volume . In 2006/07, South Africa’s local consumption for fresh citrus products is expected to increase by 19 percent as farmers are increasing their volume for sale in the local markets to overcome expected lower export prices. Exports are expected to decrease by 16 percent to total 1.10 million MT, due to lower total production and increase intent of growers to sell to the local market. The producers are uncertain about the export prices, and speculate about general improved export prices because of Spain’s lower total production and late harvest caused by heavy rains. Also, they are challenged by potential lower prices as posed by the Middle East and Europe’s- high stock volumes. In a Citrus Forum meeting held on October 23, 2007, stakeholders raised concerns about future shipping problems and congestions at the harbors because of increasing export volumes and unchanging capacity of local harbors. Quality standards will be prioritized to prepare for new markets like Russia and China. Market access issues experienced by South African citrus farmers in 2007 were barriers to trade such as high import tariffs to Iran South Korea and India markets, and SPS issues - The South African government received 18 citrus blackspot (CBS) disease reports from the EU in October this year.


On the future changes to the citrus industry in South Africa:

The South African citrus industry indicates that they are challenged by the current regulatory framework, especially the land policy, which is expected to transfer about 30 percent of farm land to the previously disadvantaged black farmers by 2015. The government received a total 79,696 land claims. The implementation of this new strategy already translated in about 1,465 land claims (96 percent) processed in 2006. From the 6,986 outstanding claims outstanding, 86 percent is agricultural land. A Majority of the citrus producing land are under the claims, which constrain farmers to invest on the land, considering that it takes a fruit tree about 15 to 30 years to mature and produce a crop.

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Winter storm on its way?

That's the skinny from the folks at AccuWeather. From an email I just received:

State College, Pa. -- November 27, 2007 -- AccuWeather.com meteorologist Henry Margusity reports in his blog that models show a trend in the direction of a storm this weekend. He suggests that a wave will come out of the Southwest and be captured by the northern branch digging into the East with the result of a major storm blowing up along the coast.
The air mass ahead of the storm will be very cold, so while some places will have rain, it may end up snowing and ice for several hours prior to any change over to rain. This will be the case for areas from the upper Tennessee Valley into Virginia and perhaps western North Carolina where cold air will be dammed-up.
“The extreme cold catching up to the storm has me concerned that some people will end up having several hours of extreme weather.” Margusity said. “I hate to use the "blizzard" word, but that is the extreme (potential) of the storm.”
Regardless, Margusity advises folks from the Plains to the mid-Atlantic and New England and Great Lakes to pay close attention to the storm because he believes this will be the first big snowstorm of the season.

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Grape market look in

Grape shipping point prices 11/1 to 11/26 - http://sheet.zoho.com

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U.S. farm policy - trade impacts

Some solid presentations about farm policy and trade are available from this Web site. The event was the Nov. 15-16 conference called : "DOMESTIC AND TRADE IMPACTS OF U.S. FARM POLICY:FUTURE DIRECTIONS AND CHALLENGES." Held in D.C., it offers some perspective on fruit and vegetable planting restrictions, the farm bill, direct payments, food aid, the impact of bio fuels on trade and other timely topics.

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Retail roundup 11/28 to 12/4 - Banana time

When in doubt, go bananas. That is apparently the mantra for produce merchandisers in suburban Kansas City this week, who made banana, oranges and blueberries prominent features in this week's food ads. Here are produce items featured this week:


Dillons Nov. 28 to Dec. 4
Golden ripe bananas: 2 lbs 88 cents (front page)
New crop premium fuji, braeburn, cameo, pink lady or jonagold apples: $1.69/lb
Large ripe avocados: 4 for $5
California cuties clementines: $6.99/5lb box
Kroger grape tomatoes: 2 pints for $5
Red seedless grapes: $1.99/lb
Colorado sweet yellow onions: 88 cents/lb
Kroger Idaho russet potatoes: 2 for $5
Fresh green cabbage: 2 lbs for 88 cents
Private Selection Organic salads: 2 for $6


Hen House Nov. 28 to Dec. 4
Driscolls blueberries: Imported from Argentina: 2 for $4/4.4 oz. package (front page)
Large, seedless and sweet navel oranges: 5 for $1 (front page)
Apple of the Week: Pacific Rose apples from Westcott Farms in Washington: $1.99/lb
Satsuma mandarins: $5.49/5-lb box: from Plaquemines Parish, Belle Chasse, La. by Ben Sr. and Ben Jr. Becnel.
Golden ripe pineapple: $3.99 each
Washington U.S. No. 1 Russet potatoes: 2 lbs for $1
Peruvian large sweet onions: 79 cents/lb
Dole Classic Iceberg mix: $1.18/1-pound bag


Price Chopper Nov. 28 to Dec. 4
Califorina navels: $1.49 for 4-lb bag (front)
Dole Classic Iceberg salad: $1.29/16 oz. package
Dulcinea Pure Heart Seedless Watermelons: $3.99 each
Green Giant baby cut carrots: $1.29/1-lb bag
Green Giant whole mushrooms: $1.29/lb
Sonya apples: $1.69/lb
Santa Sweet grape tomatoes; 2 for $4 (12 oz. package)
Tommy Atkins mangoes: 99 cents each
Large Russet baking potatoes: 2 lbs for $1
New Star spinach: 2 for $4/10-oz package)
Eat Smart Vegetable tray: $8.99/36 ounces


HyVee Nov. 28 to Dec 4
Bananas: 29 cents/lb (front page)
Driscolls raspberries: 2 for $4 (6 oz. package)
Fresh asparagus: $2.99/lb
Pro-Health microwavable russet potatoes: 3 for $2
Monterey sliced white mushrooms: $1.48
Texas Rio Star grapefruit: 3 for $1
Santa Sweet grape tomatoes: 2 for $4
Stemilt Anjou or Bartlett pears: 98 cents/lb
Dole Classic salad or cole slaw mix: 99 cents/16-oz. package
California navel oranges; $3.48 per 5-lb bag
DiLusso 7-layer salad: $3.99
Monterey whole or sliced baby bella mushrooms: $1.88/8 oz. package
Pom Wonderful pomegranates: 3 for $5
Dole celery hearts: $2.49
Bolthouse Farms 100% juice or smoothies: 2 for $5
Grimmway Farms carrot chips: 99 cents/ 16 oz. package
Dole Very Veggie Tray: $8.99/40 oz.
Midwest grown Haralson apples: $1.38'lb
Sunkist almond accents: $2.99
Popeye spinach: 2 for $4 (10oz package)
Stemilt pinata apples: $1.77/lb

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Frankel to UPGA

The Packer's David Mitchell is developing coverage on this breaking story.... From the United Potato Growers of America:

LEE FRANKEL TO LEAD UNITED POTATO GROWERS OF AMERICA

SALT LAKE CITY November 26, 2007—United Potato Growers of America today announced that Lee Frankel will lead the organization as president and chief executive officer of the national federated agricultural cooperative headquartered in Salt Lake City. Frankel will take the helm as of January 2.

Frankel holds a bachelor of arts in economics and a masters of arts in International Trade and Agricultural Policy from Stanford University. He has served the past 11 years as president of the Fresh Produce Association of the Americas, Nogales, Arizona. Frankel worked previously for five years as an international trade analyst with the U.S. International Trade Commission.

UPGA’s CEO Search Committee has reviewed several candidates over the past several months and has taken great care to select the right individual with proven leadership abilities and a solid track record. Lee will be a great complement to our professional staff at headquarters,” said Albert Wada, UPGA chairman.

About United Potato Growers of America
United Potato Growers of America was formed in March 2005 by growers to balance supply to consumer demand. UPGA’s mission is to reverse years of declining and unprofitable prices for growers, which have caused many growers to go out of business. At this time, UPGA members are in California, Colorado, Idaho, Kansas, Klamath Basin (on the border of California-Oregon), Montana, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, Texas, Washington and Wisconsin. United Potato Growers of Canada was formed last year in conjunction with UPGA.

UPGA was created under the provisions of the Capper-Volstead Act that was enacted in 1922 by Congress to allow growers to work collectively to market their products. UPGA’s vision is to provide a consistent supply of high quality potatoes at a reasonable price for everyone including the consumer. Call UPGA’s national office at (801) 517-9000 or visit
www.unitedpotatousa.com to learn more.


TK: One distributor in Nogales said that replacing Frankel will not be easy. With his knowledge of the workings of Washington D.C. and his acquired knowledge of the West Mexico industry, Frankel will be missed. Though the West Mexico deal has had three tough years in a row, the distributor indicated Frankel was well-appreciated for what he brought to the industry.


Here is the Packer 25 feature on Frankel from March 2006.


Lee Frankel, Fresh Produce Association of the Americas
By Bryan Scribner
In mid-September of 2004, a Medfly find in Tijuana threatened 100% inspection of host material coming across the Nogales, Ariz., border.
That could have subjected 300 to 400 loads of tomatoes, and hundreds of loads of other commodities from Mexico, to inspection and fruit cutting every day.
It just wasn't doable with 80 bays and the capacity to unload six trucks at a time at the border.
The biggest obstacle: Getting U.S. and Mexican officials to work together in forming a solution, said Bill Sykes, owner of The Sykes Co., Nogales, and chairman of the Fresh Produce Association of the Americas.
Sykes, chairman at the time, said he attributes much of that achievement to Lee Frankel, president of Nogales-based FPAA.
"For a time there, I thought that the border was going to be completely closed," he said. "But Lee did it. He got together with the right people and got them talking. It was a lot of work, but they got it done."
By Nov. 5 of that year, the inspection rate whittled to one in 20 shipments.
One of Frankel's best qualities is his ability to get people talking and to bridge communication gaps, Sykes said. He also has a valuable understanding of government.
In Washington, D.C., and elsewhere, Frankel gets things done right and in a timely manner, said Jerry Wagner, sales manager at Farmer's Best International LLC, Nogales.
When he talks to Frankel, Wagner said, "The first thing I do is I ask him if he's happy because I don't want him to leave."
At the association level, Frankel said his quest is to anticipate problems that pose a future threat to the fresh produce industry in Mexico. He strives to make sure the 120 members of FPAA are prepared to succeed as the business environment evolves.
It's not always glamorous, he said.
"The person that you rescue from being drowned is much more grateful than all the people you've saved by putting a decent, secure fence around the swimming pool so people don't fall in," he said.
A potential slip up could have occurred from the original draft of the Bioterrorism Act of 2002, something Frankel said would have devastated some Mexican growing operations, increased security risks, increased costs and caused significant produce damage.
Frankel was able to work with the U.S., Canadian and Mexican governments, along with associations south of the border, to help form a coalition that would guide the drafting of more workable rules.
But Frankel's work is not just about downgrading a forest fire into a camp fire. He also works to improve the operations and profitability of FPAA members.
In early January 2005, the Nogales Mariposa Port of Entry opened for Sunday crossings.
Although there was extreme opposition from some brokers, for some FPAA members, it was an essential tool to manage inventories and serve top tier retail, Frankel said.
To prevent future mistakes -- and to make sure members don't get caught off guard -- the ultimate goal of one of the FPAA's newest initiatives is to learn from others.
Specifically, the association must share information and resources with importers in Texas and California because at the end of the day, "No matter how much each local region likes to pride itself on service, product availability, different positive steps it's taking … a U.S. consumer, even a U.S. retailer or restaurant chain, they just see Produce from Mexico," he said.
"If there's a problem in one place in Mexico, it's a problem for all of Mexico."
With that consequence in mind, and with the call from his members to form a communication blanket to more closely align the efforts of those at the Mexican ports, Frankel is working to further establish relations with importers in Texas and San Diego.
After all, he said, the market share in Nogales will decline over time, and it makes sense to coordinate with those at other border crossings.
On Jan. 1, a San Diego division of FPAA became operational. While there is no staff or office, Frankel acts as the division's liaison, traveling from Tucson, Ariz., to San Diego to visit with importers, retail chains and wholesalers.
The division seeks to improve public relations, cold chain management, food safety, produce quality, certification requirements and convey production estimates, Frankel said.
In San Diego, the route to partnership formation was made easier through commonality of product and better understanding of importer operations, Frankel said.
Geographical and "cultural" differences limited the formation of a partnership with Texas importers, but Frankel said he hoped a similar division would be formed there in about a year.
"We need to pull together the importers from all across the border and try and take care of the problems more or less all at once," he said.
More to the Story
* Lee Frankel, president of the Nogales, Ariz.-based Fresh Produce Association of the Americas.
* Bio: Frankel, 38, received a bachelor's degree in quantitative economics from Stanford University, where he also completed a master's degree program in agricultural economics and international trade.
His first job was with the U.S. International Trade Commission, Washington, D.C. There, he was a fruit and vegetable international trade analyst for about five years.
In 1996, Frankel joined FPAA as managerial officer, a title that changed to president about two months after he started.
Frankel has served on the Produce for Better Health Foundation board, and he has been on government relations and international trade committees for the Produce Marketing Association and United Fresh Fruit & Vegetable Association. He also has been a board member of the United Agribusiness League.
* PERSONAL: Frankel enjoys bicycle racing, something he's been doing competitively for about 14 years. He participates in about four to five national or regional events each year.
He and his wife of five years, Lorena, are raising twin 18-year-old girls.

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Traceability initiative

While we wait for more details on the traceability initiative (traceability with teeth?) from PMA, United and CPMA - the first meeting of is reportedly set for Jan. 9 in Atlanta - here is a note from a FQcode about an upcoming speech by at the Southern Hemisphere Congress:

From FQcode:


This year, FQcode, has been invited to speak about one of its more important expertise, "Adding value to supply chain" given its wide experience in developing and implementing fresh produce management and traceability solutions. It will explain there, how traceability has become a main tool in order to get product differentiation into the supply chain.
FQcode traceability experience and expertise, is reflected on its more than 40 packinghouses over this region tracing their production and implementing FQcode's TRUE TRACEABILITY™ solution. They proves how this solution allows them to automate and have more control over operation, enhance food safety and limit product recall potential, protecting their brands.
Southern Hemisphere Congress is organized by Eurofruit Magazine and is specialized in international fresh produce business, joining every year, at the main southern cities. This year, will be on 28-30 November, at Hilton Hotel Buenos Aires.
If you want to learn more about traceability,
-Visit FQcode stand at Congress from November 28 till 30 at Hilton Hotel Buenos Aires.-Ask our tracebility expert,
Martin Kupferman (mkupferman@FQcode.com), and he will reply quickly.

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Monday, November 26, 2007

America's most obese cities

It is not something the Memphis, Tenn., Chamber of Commerce will publicize, but that city has just been named the most obese city in the U.S. Forbes magazine made the list up based on 2006 stats. From the story by Rebecca Ruiz:

To better understand the local and state implications of the obesity epidemic, we ranked the nation's heaviest cities. In doing so, we discovered states with multiple offenders, metropolitan areas with expanding waistlines and a high representation of Southern cities. Worse yet, after claiming the title of the most sedentary city, Memphis, Tenn., has also ranked first as the country's most obese.

Later...

While fast-food consumption is a minor factor influencing obesity rates, purchasing patterns often reflect larger health issues and habits in certain communities. The average American had purchased fast food 16 days of the month between January and September of this year, according to Quick-Track research conducted by the consumer tracking group Sandelman & Associates. Thirteen cities on our list, including Memphis, Austin, Texas, and Indianapolis, met the national average or higher. Residents of San Antonio eat fast food 20 days of the month, and had the highest frequency of the cities on our list.

Later.....


Others, such as Walter Willett, a professor of epidemiology and nutrition at the Harvard School of Public Health, believe our salvation lies mainly in ridding the grocery store of food he calls "not fit for human consumption." Among the items he would like to see purged, he says, are the "shelves of sugar water, the breakfast cereal section, dominated by refined starch and sugar, and white bread and rolls."
According to Willett, a healthier diet, in combination with increased levels of physical activity and environments that promote exercise, would drastically improve the country's obesity problem. "If we do this right," he says, "we'll improve our quality of life in many different ways."


TK: Good luck with trying to get rid of the cereal aisle. This story should reinforce the notion in Congress that the farm bill should be used to help expand the USDA''s fruit and vegetable snack program to begin to change the youth of America's eating habits.

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The coming crisis and commodity boom

If there is a compelling reason to rethink farm subsidies - particularly direct payments that are distributed regardless of the market price of program crops - we can find it in reports of long term trends that suggest rising prices, riots over food in developing countries and potential food rationing in developed countries. We can also ask if these alarmist projections have any basis in fact. Here is a link to a story that looks at the convergence of China's move to improve their diet from grain to protein and the impact of biofuel demand on world grain stocks.
From the UK Telegraph story:

Malthus may have been right after all, though two centuries early and a crank. Mankind is outrunning its food supplies. Hunger - if not yet famine - is a looming danger for a long list of countries that are both poor and heavily reliant on farm imports, according to the Food Outlook of the UN Food and Agriculture Organisation (FAO).

TK: Solving political and governance problems in Afria would go a long way to improvement in agricultural performance in those countries.

The farm crunch has been creeping up on the world for 20 years. Food output has risen at 1.3pc a year: the number of mouths at 1.35pc.
What has abruptly changed is the twin revolution of biofuel politics and Asia's switch to an animal-protein diet. Together, they have shattered the fragile equilibrium.

The world's grocery bill has jumped 21pc this year to $745bn (£355bn), hence the food riots ripping through West Africa, Morocco, Yemen, Bengal, and Indonesia.

TK: Here is a report about riots in India, here is a report out of China that described the science when a Carrefour offered a limited time deal on cooking oil.

Three people were killed this month in China at a cooking oil stampede in Chongqing. Mexico has imposed a ceiling on corn prices to quell a tortilla revolt.
Russia has re-imposed a Soviet price freeze on bread, eggs, cheese, milk, sugar, and vegetable oil until January. Russian bread prices have doubled this year. Global wheat prices have surged from $3.75 a bushel to $8.26 since mid-2006.
The FAO says the food spike has a different feel from earlier cycles. "What distinguishes the current state of agricultural markets is the concurrence of the hike in world prices of, not just a selected few, but of nearly all, major food and feed commodities," it said.
"Rarely has the world
felt such a widespread and commonly shared concern about food price inflation."
"There is a sense of panic," says Abdolreza Abbassian, head of the FAO's grains trading group. As so often these days, China is the swing player. It is replicating the switch to a diet of beef, pork, chicken, and fish that occurred in Taiwan and Japan when they became rich.
The US Department of Agriculture says the Taiwanese eat nine times as much animal protein as the Chinese.
Why does it matter? Because it takes 16lb or so of animal feed - mostly soya or corn - to produce a single pound of beef. It is considerably less for poultry. It takes 50 times as much water.
Until last year, China was able to grow enough grain to supply its ubiquitous poultry and fish farms. It has now become a net importer of corn for the first time in its modern history.
Urban sprawl across China's eastern seaboard is stealing most the fertile land, and the water tables of northern China are drying up. The same trends are under way in India, Vietnam, and much of emerging Asia.
Meanwhile, the Bush administration aims to supply 20pc of total US fuel needs from biofuels within a decade, up from 3.5pc today - a ploy to break dependence on oil demagogues and slash the trade deficit.
Credit Suisse says worldwide biofuel targets will take up 12pc of global arable and permanent cropland in 10 years, although new technology using the non-edible stalks will mitigate food displacement up to a point
.

TK: Alarmists touting a no growth agenda have been wrong before but the convergence of ethanol and the improving Asian diet does suggest a golden age for grains over the next few decades. Given rising grain and food prices, there is all the more reason to rethink the largess of direct payments to U.S. program crop growers.

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Fresh Talk Agenda

A little more going on this week than last week, and you can browse to the calendar at the end of the blog for specific event details. We can all dream of being in Maui with the NOA. Here is the Fresh Talk agenda as it stands for this week. Remember to send in notice of coming industry events to tkarst@thepacker.com

Monday, November 26
Packer sections: Chilean Produce/m Tex-Mex Winter Produce/m Michigan KYM/m Combo
Wednesday, November 28
National Onion Association annual convention
Fruit and Tree Nuts Outlook
Thursday, November 29
National Onion Association annual convention
Friday, November 30
National Onion Association annual convention
USDA Agricultural Prices
Saturday, December 1
National Onion Association annual convention
Sunday, December 2
National Onion Association annual convention

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"Killer App"

I thought the Fresh Talk blog was the "killer app" for the Web, but apparently the folks at http://www.tvworldwide.com/ beg to differ. The Internet TV site offers a bunch of archived videos for viewing, and many of them are educational (more than we can say about www.youtube.com). Big Apple of the Fresh Produce Industry Discussion Group notes that an archived version of the U.S. Maritime Security expo is offered here and the soon coming Web broadcast of this year's event is found here.

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"Not so fast" and "While you are at it"

There is push back and some alternative ideas on the proposal to create a national marketing agreement/order for leafy greens. Luis notes coverage of the issue from Supermarket News in this post. From SN coverage:

Community Alliance with Family Farmers, a small-farm advocacy group based (in Davis, Calif.) has said it opposes the proposed federal marketing agreement for leafy greens, a national food safety program modeled after the California Leafy Greens Marketing Agreement. Although many growers have publicly expressed support for the plan, CAFF argues that if the U.S. Department of Agriculture makes the agreement mandatory -- by imposing a marketing order -- small farms and local growers could be bankrupted by expensive mandates that are really designed for large, national operations.
"We don't think the federal marketing agreement is a good model for food safety," Kira Pascoe, CAFF's family farm food safety coordinator, said.


TK: Meanwhile, the U.S. government regulation Web site - www.regulations.gov - has other comments posted about the proposal. From a consumer:

"General Comment:Concered about e-coli--I googled it and found over 100,000 sites--all document anywhere from 25,000 to 85,000 cases of e-coli cases per year--e-coli was
identified and named it 1865, certainly not a "new threat" 95% of e-coli is found in the large intestines of humans and animals--in other words feces--in other words fertilizers-- Before the outrageous restrictions on food handling--a moderate amout of e-coli was consumed by everyone and the body produced immunities much the same as vaccines. The very idea that a million packages of spinach was recalled for 30 illnesses in obscene--The product was grown in lands that have produced spinach for generations without the FDA's interference--again OUTRAGEOUS OVER REGULATION !! "


TK: That consumer comment isn't going anywhere, but one thoughtful comment was submitted by Lloyd Ligier, vice president of business development for Pro*Act in Monterey, Calif. Ligier writes to USDA:

"Time and again we see product being delivered to foodservice customers in unrefrigerated trucks or worse, open bed trucks, from facilities that have little or inadequate refrigeration, have no pest control program, are not third party inspected, and do not have HACCP or any other food safety programs in place. This does not bode well for food safety, and is, or soon will be, a major problem in handling safe, source product."
"This is my 42nd year in the wholesale produce industry, all of my time spent in fresh produce distribution. Little has changed in those 42 years regarding jobbers or unqualified produce distributors. Under today's circumstances, with the efforts being put forth with the growers and fresh cut processors, there must be some effort put forth to qualify fresh produce receiving and distribution points."
"My suggestion is that GDP (Good Distribution Practices) should be established, and in order for a distributor to sell to any foodservice account, they should follow and be certified as a GDP distributor. "

TK: That is one bold proposal, my friends, and certainly resonates with the grower community. What do you think? Ligier says the system for GDP for distributors could be voluntary and still work its purpose. As in the case with the national marketing agreement for leafy greens, arguments over the applicability of any regulation to small farmers or small foodservice operators will be the swing issue.

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Almonds unstoppable?

Luis of the Fresh Produce Industry Discussion Group posts this news about the growth of almond demand.

From the story:

Shipments of 2007 California almond crop are breaking all records, according to Blue Diamond President and CEO, Doug Youngdahl. The industry shipped 18 percent more almonds in August through October 2007, than was shipped last year at the same time, he told the cooperative's growers at their 97th annual meeting. August shipments alone were a stunning 61 percent over last August and 20 percent ahead of the prior record set in 2004!
According to Blue Diamond, a cooperative owned by over half of the state's almond growers, at the current shipment pace, a 20 percent demand growth over the next year could solidify California almonds as the leading U.S. marketing model of the decade. "The 2007 crop forecast of 1.33 billion pounds, or 19 percent more than last year, is on target based on early receipts," said Youngdahl.
Despite increasingly larger crops, Blue Diamond has advocated over the last four years for grower returns that reflect steadily increasing demand. This has built a confidence in growers and the marketplace that is unprecedented in agriculture. Bearing almond acreage is expected to climb by at least 50,000 new net acres in 2008, followed by an additional 50,000 acres in 2009 and another 40,000 acres in 2010. While yields are rising, costs are also escalating.
At the same time, the Blue Diamond branded retail franchise has tripled in sales over the last four years and it's branded natural foods line has increased 50 percent in the last year. This has helped to contribute to another near-record overall sales year of $658 million (just $16 million short of last year's record). "This sales growth returned Blue Diamond growers another near-record year in payments second only to last year's record," said Youngdahl. "We also added new grower tonnage to our throughput which helps to offset production costs and increase grower return on investment."
Youngdahl attributed another bumper year in sales and competitive grower payments to an aggressive marketing and sales campaign that introduced 11 new branded products and myriad new uses of almonds in cereals, ice cream, confectionaries and baked goods. Backed by an aggressive new Blue Diamond television campaign featuring taste and health attributes of almonds, the branded program introduced "100 calorie packs" for weight management, a new Oven Roasted line for healthy snacking in self-measured servings, expanded the Nut Thins cracker line of wheat-free snacks and offered new Almond Breeze non- dairy beverage alternatives to lactose-intolerant consumers.



TK: Blue Diamond - see their Web site here - is finding plenty of reasons to celebrate the almond's success. But 140,000 new acres over the next three years is bound to test the limits of the almond's popularity.

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