Attack on SoCal supermarkets

Here is news of a straight- on attack on U.S. supermarkets.

LOS ANGELES -- Acclaimed documentary director Robert Greenwald will hold a telephone press conference Monday to announce the launch of "SupermarketSwindle.com." The hard-hitting multimedia campaign will expose the corporate excesses of the leading grocery chains, whose ballooning profits and CEO compensation are coming at the expense of tens of thousands of workers and millions of consumers. In 2005, Greenwald and his company Brave New Films took on the world's largest retailer in his scathing documentary Wal-Mart: The High Cost of Low Price. Greenwald's new project will explore how Ralphs, Albertsons and Vons, Southern California's three top supermarket chains, are following Wal-Mart's business model by slashing benefits and cutting wages to achieve ever-higher profits and executive pay. The campaign is expected to increase pressure on the chains as a potential strike looms.

TK: If responding to competitive pressures is a crime, then Southern California chains are guilty. We'll see if this PR attack campaign plays out.

Chilean clementines

The shortfall in South African clementines is supporting the Chilean clementine deal this year, one handler told me today. Depending on the shipper, Chilean clementines should remain active through July and into the first week of August. Though the 3-pound bag is becoming more popular, the 5-pound carton remains the dominant pack.
While citrus is not top of mind for produce managers or consumers, the distributor said movement was steady. Through June 23, season to date shipments of Chilean clementines arriving in U.S. were 14 million pounds, up from 8.7 million pounds the same time a year ago. South African season to date clementine shipments for the same date were 2.7 million pounds, down sharply from 8.1 million pounds at the same time last year.


Meanwhile, Spanish exporters were burned by the navel season, one importer said. California shippers were able to stretch out their supplies and keep their retail accounts after the freeze, relegating Spanish navels to wholesalers at terminal markets where returns were less. However, the Spanish lemon deal has met steady demand and prices at $17-18 for 120s and 140s. Supply will dwindle by September, one handler said. While the shortfall in South African navels appears to leave the door open for a stronger U.S. valencia deal, Spanish valencia exporters are not too eager to revisit the U.S. orange market.

A baseline for fruits and vegetables

House Agriculture Committee chairman Collin Peterson said the chairman's mark of the farm bill will include $685 million in paid-for baseline funding for fruit and vegetable priorities. He revealed this in a teleconference with reporters today. Peterson credited Rep. Cardoza for working to include the work of the hort subcommittee in the chairman's mark. Peterson did not reveal how the $685 million (over 5 years, apparently) would break down - specialty crop block grants, fruit and vegetable programs etc - nor did he fully explain where the funds would be found (but crop insurance and change in the timing of counter cyclical payments account for the majority). He did say more funding would be sought. "This is just a start. At some point in the process we look to identify offsets that would improve fruits and vegetables beyond what we have now."

Peterson is also going to put forward a second farm bill, that will include $17.5 billion over five years of reserve or contingency funds for various titles of the farm bill, including $1 billion for f/v priorities.

TK: This is a big breakthrough. Very good news. Still details to be revealed about how the funds will break down. But having a baseline for funding is huge and a tribute to the lobbying efforts of United, Western Growers and the specialty crop farm bill coalition. Also, Dennis Cardoza has come up big if this is what it appears. Peterson was also asked about the idea of attaching the AgJobs bill to the farm bill. He laughed and said. "I have enough problems as it is without getting embroiled in that..... and we don't have jurisdiction." However, Peterson acknowledged it was a very important issue for agriculture.

In addition, Peterson said he was not inclined to include any provision about country of origin labeling in the farm bill, saying he has indicated to industry that there will be mandatory COOL by Sept. 30 of 2008. He left the door open just a little if there was consensus on the issue, however.

I didn't get the chance to ask about f/v planting restriction on program crop acres in the chairman's mark.

The two bills - the pay go bill and the bill funded with reserve funds - will be released on the House Web site July 6. Full committee markup is July 17 and the bill is scheduled to be on the House floor by July 26, Peterson said.

Farm bill traction

Now that Congress dropped the ball on immigration reform, the specialty crop industry turns its attention to the remaining top legislative priority - the 2007 farm bill. An extension of the 2002 farm bill is the worst possible outcome for the fresh produce industry, yet a two-year extension is not beyond the realm of possibility, as this coverage in The New York Times points out. Good coverage of this point is also found in the farm policy blog, found at this link.

The possibility of massive changes to the farm bill on the House floor is not out the question. Some wonder if the pay-go rules that demand budget offsets for new spending might be suspended for the farm bill. In any case, it appears the ambitious schedule of wrapping up work on the farm bill before the August recess may be slipping away.

Tom Nassif of Western Growers told me this week that specialty crop growers can't be told that any money for their projects beyond the baseline will have to come from offsets. That principle might apply if specialty crop programs had been receiving tens of billions of dollars for decades, but right now there is no baseline for specialty crop priorities. Farm subsidies are foreign to fruit and vegetable growers, and the entire specialty crop coalition insists that funding for priorities like the specialty crop block grant program and the fruit and vegetable program for schools must be real and mandatory.

In that context, here is a June 26 letter from the governors of Texas, New York, California and Florida to the leaders of the House and Senate Agriculture Committees.
Excerpts below:

As Governors of the country’s four most populous states, we represent more than 174 million acres of cropland, with products valued at more than $65 billion. While our states are very diverse, we also have much in common. We believe in the vision of healthy people, a clean environment, and a robust agricultural sector. As your committees begin consideration of the 2007 Farm Bill, we would like you to consider several issues of importance to our states.
In addition to these six priorities, our states have many other issues of importance that will be provided to the Committees through our respective congressional delegations.

Specialty Crops: Fruits, vegetables, nuts, horticulture and other specialty products now make up almost 50 percent of the farm gate receipts in this country. Our four states alone contribute over half of this amount and their production is an important component of the agricultural sector in our states. This farm bill should provide increased funding and program flexibility for specialty crop programs, including research and development of production, harvesting, and handling techniques, and open up USDA’s commodity, conservation, and disaster assistance programs, in which specialty crop producers have traditionally had limited opportunity to participate. We agree that it is necessary to not only increase funding but also provide a permanent allocation for the Specialty Crop Block Grant that was authorized in the Specialty Crop Competitiveness Act of 2004. This grant has been used with great success by states to provide a wide array of programs that assist our specialty crop producers to maintain and enhance their competitiveness in the market.

Invasive Species: Whether it is Citrus Canker in Florida, the Asian Longhorned Beetle in New York, the Glassy Winged Sharpshooter in California, or the Mexican fruit fly in Texas, invasive species are a serious problem and require a significant commitment of resources to address. It is essential that the Farm Bill include strong language that provides critical resources in a timely fashion to vigorously respond to and eradicate these threats. Full funding for the Animal and Plant Health Inspection Service is necessary. It is important that, while maintaining funding levels for pest management, additional dollars also be provided for prevention efforts on ports and other pathways of entry. As border states, we all have increased susceptibility through our ports and borders.

Crop Insurance: Increasing the amount of risk eligible for crop insurance coverage and expanding the safety net programs for all farmers, including crop specific revenue insurance, should be part of a final Farm Bill. Also, a structure should be established for providing assistance beyond crop insurance after natural disasters. There is a tangible need for a long-term solution to the ad hoc nature of current disaster assistance.

Conservation: The farm bill must reauthorize and expand funding for all conservation programs as a strategic investment in our nation’s agricultural infrastructure. By increasing outreach and technical assistance funding, states can more effectively deliver and target conservation programs to those farmers who want to participate in the most cost effective environmental programs. By bolstering partnerships with cooperating organizations and agencies, we enhance the availability of technical assistance. Conserving farmland, rangelands, and private forests benefits all Americans.

Nutrition: The Farm Bill must maintain the highly successful Food Stamp Program (FSP), including Food Stamp Nutrition Education, as part of efforts to promote healthy eating and help prevent obesity. Despite recent national increases in participation and significant reductions in state error rates, challenges within the FSP remain. There are simply too many households eligible for benefits that do not participate, particularly among the working poor. States need the flexibility to develop and implement systems that enable more eligible individuals to receive food stamps. It is also essential that the Farm Bill support healthy diets, farmers market programs, better nutrition and greater access to fruits and vegetables. Expanding initiatives such as the successful Fruit and Vegetable Snack Program will promote achievement of the Dietary Guidelines for Americans and help to realize our mutual goal to improve nutrition for low-income families and communities for generations to come.

Organic Agriculture: We support provisions that expand support for organic products, allowing our farmers to access this growing and lucrative market. To meet this increasing consumer demand for organic food, we should support farmers who have decided to use organic techniques, especially those who are transitioning to organic agriculture.

We understand that legislation of this scope and complexity involves a long and arduous process to realize final completion. We hope that as the legislative process continues, we can be a resource for you and your staffs as you consider these and many other important issues. Please do not hesitate to contact us if we can provide more information.

Sincerely

Governor Eliot Spitzer
Governor Charlie Crist
Governor Rick Perry
Governor Arnold Schwarzenegger