Spain's pain

While California's citrus growers received a shock of freezing cold, Spanish citrus growers have endured warmer than normal temperatures which has sped maturity and reduced export prospects for the remaining clementine crop, despite the market opportunity in the U.S. Prospects are better for oranges, however. Here is a USDA FAS report talking about Spain's pain. And an excerpt below:

To the point of potential, additional Spanish citrus exports, just as the unseasonable weather has affected the California citrus crop, so too unseasonable weather has affected the Spanish citrus crop. Exceptionally warm winter weather here in Spain may be partially to blame for the current low Clementine prices, because the crop has ripened at a quicker-than-normal pace. Because Clementines, in an advanced stage of maturation, are too delicate to export, it is next to impossible that any of the remaining crop could be exported to the United States to help overcome the apparent U.S. shortage. Thus in the Tangerine supply and demand table below, we are reducing our forecast of domestic Clementine production and exports.
However, in the case of oranges, which are a later (than Clementines) maturing fruit, Spain does have the potential to increase exports to the United States. Spain and the United States have an agreed pre-clearance inspection program, so the basis for increased exports is in place. On the Spanish producer side there may need to be some additional work to assure that their oranges meet the export inspection protocol, but we don’t see major obstacles at this point, unless a phytosanitary problem does emerge as the crop is harvested and exported. As a result, we are increasing by our forecast of orange exports, while decreasing slightly our forecast of production. The increased export forecast not only comprises additional exports to the United States, but also includes “backfill” exports that will likely be precipitated from the tremendous devastation to the California citrus crop.



And here is a FAS report from England detailing some encouraging diet trends the U.K.

Data published in Defra’s latest Expenditure and Food Survey indicate fruit and vegetable purchases rose at their highest rate for twenty years between April 1, 2005 and March 31, 2006.


Here is a detailed examination of the EU grape situation and how reform of their ag policy could change their outlook.

A link

Here is a link to the USDA's document on specialty crop proposals. These proposals are certainly substantial and are a good starting point for discussions of what is achievable in the 2007 farm bill for specialty crop growers.


Here is the link to all of the proposed titles to the farm bill.

Billions more but no planting prohibition

Ag Secretary Mike Johanns said the Administration will favor adding billions to fruit and vegetable purchases for school nutrition but said the USDA's plan also advocates dropping the fruit and vegetable planting prohibition on farm program acreage from the farm bill. The planting restriction must go because of WTO challenges to U.S. farm programs, he said.
Here are the highlights:

Johanns also said the USDA's plan would cut off farm program payments if individuals have an adjusted gross income of $200,000 or more, which is the top 2.3% of taxpayers. He said that will save $1.5 billion.

Over a ten-year score of the farm bill, he said the USDA would add $2.75 billion for fruit and vegetable purchases for schools. Apart from that, the USDA will provide $500 million for school's to provide fruits and vegetables either for the snack program, the breakfast program or the school lunch program.

The USDA's plan will increase Technical Assistance for Specialty Crops by $68 million over 10 years, and increase Market Access Program (export promotion) funds by $250 million over 10 years.


'I have to believe the proposals on specialty crops will be very well received," Johanns said near the end of his news conference.

That is true, if the industry can get beyond the elimination of the planting restriction.

Here is an ERS study on what elimination of the planting restrictions would mean.

Times have changed

Ag Secretary Mike Johanns is presenting the Administration's proposal as I write this, and it is clear from his Powerpoint title - Times have changed - that there will be some items of interest to fruit and vegetable marketers in his proposal.

Developing....

Behind the curtain

Agriculture Secretary Mike Johanns is set to unveil the Administration's proposals on the farm bill this morning, at about 9 a.m. Central time. The USDA will have Johanns presentation hooked up to the Web, so we may have a real time reaction.

Meanwhile, here is a piece that is a good overview of how specialty crop producers are trying to influence the farm bill. It also points out that some specialty crop growers in California do receive farm program payments via crops like cotton.
From the Farm Press piece:

Often California growers farm both commodity and specialty crops. One of those is Charlie Fanucchi, a Kern County, Calif., farmer who grows cotton and fresh produce. He is the chairman of Calcot, the largest cotton marketing cooperative in the West, and is also a director of Western Growers. He believes both commodities and specialty crops can achieve their goals of continued commodity support and increased specialty crop funding in the new farm bill.
"There are 268 million acres of program crops in the U.S. and it is important that those crops continue to receive direct payment support," Fanucchi said. "You take that money away and you destroy rural America."
He noted that the government pays $11 billion in direct payment support for commodity crops. "This represents only 11 percent of the department's $100 billion budget. I think the money for the specialty crop element of the new farm bill can come from some other area of the department?s budget than direct payments."

Program crops and specialty crops are is not quite like "east is east and west is west and never the twain shall meet." But the suggestion is close enough for argument's sake. I don't think it is realistic to expect specialty crops to get more without program crops getting a little less. After all, new specialty crop money is certainly not coming from food stamps.


Here is the latest thinking on how the farm bill might impact the WTO talks.

More Matters matters

Elizabeth Pivonka of the Produce for Better Health Foundation tells me yesterday the March 19 launch plans for the Fruits and Veggies: More Matters brand are proceeding nicely.
She noted that PBH controls the licensing process of the Fruits and Veggies: More Matters Brand, unlike in the past when the government owned the 5 a Day for Better Health brand. That means PBH licenses the brand to the Centers for Disease Control which in turn licenses the states. PBH licenses the industry directly for use of the brand. Pivonka said while some critics may come after the brand from the obesity angle, both PBH and CDC have stats at the ready to show that 90% of Americans don't eat the recommended servings of fruits and vegetables. Even if obese Americans ate more fruits and vegetables, the logical thinking is those servings would replace more calorie-dense food and be a net positive for their health. "We have a response for that (criticism)" Pivonka said.


Note the industry licensing numbers below.

It is time to get on the Fruits and Veggies: More Matters horse and ride it.

From the latest PBH Direct newsletter in late January:

Excitement is building around the launch of the new Fruits & Veggies—More Matters™ program at 10:00 a.m. PST on March 19 in San Francisco, Calif. While efforts in support of the Fruits & Veggies—More Matters launch will build over the entire year, the initial launch event will take place in a supermarket setting and is designed to introduce the new brand’s attributes while keeping an eye on connecting with our target audience....
In addition to PBH’s San Francisco launch activities, plans for media events in Atlanta and New York City are underway along with tentative plans in Chicago, Boston, and Washington, D.C. Centers for Disease Control & Prevention—the Fruits & Veggies—More Matters lead health authority—The American Cancer Society and American Diabetes Association also have activities planned in support of the March launch.

The new Fruits & Veggies—More Matters™ brand is available for licensing. To date, 132 companies have signed up, including 30 retailers representing more than 17,000 stores across the United States. PBH is encouraging industry licensees to incorporate the new brand into their marketing programs and materials immediately, so that the marketplace is as saturated as possible when the foundation officially unveils the brand March 19....