Mango Market Look In

Funding breakdown

Here is a specialty crop accounting of the House Ag Committee's manager's mark of the farm bill. From the office of Rep. Dennis Cardoza. Meanwhile, committee markup continues tomorrow.

PROGRAM MANDATORY FUNDING (In millions)
Technical Assistance for Specialty Crops 38
Pest Detection and Surveillance 200
Fruit and Vegetable Snack Program 350
Specialty Crop Block Grants 365
Specialty Crop Research Initiative 215
Section 32 Funding (includes 225 for the DOD Fresh Program) 406
Seniors Farmers Markets 75
Clean Plant Network 20
Organic Cost Share 25
Organic Data Collection 5
Dedicated Organic Research 25
Farmers Market Promotion 32
Fresh Cut Produce Safety Grants 25
Air Quality Mitigation Program (EQIP) 150
Conservation Innovation Grants 25

More good news for A2H

Here is an email from America's Second Harvest and Rick Bella to the group's partners in the produce world. Congratulations for a great work and record volume.
From Rick:


It is with great pleasure that I announce to you that the Fresh Produce Program has again broken another record. Our fiscal year ended on June 30th, and as the dust settles from our work last year, I will report a program total of 115,900,000 pounds. That’s one hundred fifteen MILLION pounds from national donors to our network of over 200 member food banks. Food banks also received local donations from many sources besides the national offerings listed above.

State association programs grew over 300% last year with more and more members experiencing the value of collaboration. We certainly couldn’t have enjoyed this growth without the great support from many of our donor and supplier partners. This year, 27 members each received over one-million pounds of fresh produce with some members recording 10-million and 6-million pounds.

The program produced $7.9M in f.o.b. purchases to support network needs. Another $2.6M was provided to the transportation industry to transport fresh produce to member locations across the U.S.

We would like to thank each of you for the fine work in the past 12-months and look forward to continued growth in our new fiscal year. A complete listing of our donor partners will be available in our annual report. Thank you all for a productive year. As always, please let us know how we can improve our program. We value your advice.

Sincerely,
Rick

Rick Bella, Director of Purchasing & VAP
America's Second Harvest-The Nation's Food Bank Network
35 E. Wacker Drive, Suite 2000
Chicago, IL 60601

Welcome to the conversation

The food safety "conversation" grows. From President Bush today on the White House Web site:

The American people expect their government to work tirelessly to make sure consumer products are safe. And that is precisely what my administration is doing. I've called together key members of my Cabinet to review the procedures in place, the regulations in place, the practices in place to make sure that our food supply remains the safest in the world. The world is changing, and in order to make sure that we can continue to have the confidence of our consumers, that we will continually review practices and procedures to assure the American consumer.
And so I've asked Mike Leavitt, the Secretary of HHS, to lead a task group that will report back to me in 60 days on a strategy that will review procedures in place and regulations in place to make sure that they're meeting the needs of a changing world; that part of our strategy is we work with our countries from which we import goods to make sure that their procedures and practices will give us comfort. And, finally, we'll be working with companies that import goods from around the world, to make sure that their practices meet the high standards that we set for the United States.
This is a serious issue -- food safety and consumer safety is a serious issue. We take it seriously and we spend a lot of time on it in this administration. So Michael, I want to thank you very much for taking on this task force. It's important for the American people to know their government is on top of the situation and constantly reviewing procedures and practices. So thank you.

Here is the link to the executive order for the task force.


From Rep. Rosa DeLauro:

Congresswoman Rosa L. DeLauro (Conn.-3) issued the following statement about President George W. Bush’s executive order creating a government working group to recommend steps to improve the safety of food imports.

“Today, the President responded to the outcry of public concern over food safety in this country. Unfortunately, instead of announcing a comprehensive proposal to beef up our inspection of imports, the Administration has created a working group to recommend steps.

“It is also disconcerting that that Secretary Leavitt will lead the panel, particularly when it was his agency that was responsible for dismissing an FDA proposal to strengthen regulations of fresh cut produce. And in creating the group the President did not include the Commissioner of the FDA. Even though the FDA is part of HHS, it is the agency responsible for the safety of 80% of our food.

“While I welcome the President to the conversation, we need to move beyond talking and begin taking concrete steps to improve our food safety. It starts with providing mandatory recall authority, so agencies can move quickly to remove tainted products from the shelves and continues with the FDA insisting on equivalent standards with our trading partners.

“In the past claims that a lack of resources has prevented the FDA and the USDA from performing its duties, and in the Agriculture, FDA Appropriations Bill, I take steps to address this issue. However, based on the litany of evidence that continues to mount, it has become all too clear that a lack of commitment from leadership is also to blame for a disjointed food and drug safety system that fails to prioritize public health.”

And here is a link to testimony by Andrew Eschenbach of the FDA in testimony before the House Energy and Commerce Committee's Investigations and Oversight Subcommittee. From his prepared remarks, on the FDA's plan:

I expect the plan to focus on efforts by industry to prevent food problems, and FDA interventions that provide the tools and science necessary not only to head off outbreaks of foodborne illness but address intentional contamination as well, and also to ensure compliance with preventive controls that are designed to stop problems before they arise.

Should associations resist the urge to merge?

That's a question found in this research paper I found on the Web about mergers between nonprofit associations.



Here are some observations from the paper:


Mergers are a growing phenomenon in nonprofit organizations, yet little is known about the manner and motivation of such efforts. While some preliminary research of mergers in the health care and social services fields has emerged, mergers among associations have not been studied. Association executives contemplating such actions have little to guide their partnering efforts and anecdotal evidence suggests that many such efforts are never consummated or fail to fulfill their initial promise.



TK: With the exception of IFPA and UFFVA, mergers in the produce world are invisible.



The findings from the fieldwork led to explication of a theoretical framework that underlies the merger process in trade associations. Among the additional key findings from the study of these fourteen cases were the following:
1. Mergers are prompted by changes in an association’s external economic environment, specifically changes in the composition of the industry and alterations in the association’s membership base.

TK: Industry consolidation has arguably reduced the membership base of both PMA and United. PMA is more flush with cash than United.For 2005, PMA's IRS Form 990 total assets were $11.9 million. Prior to its merger with IFPA, the United Fresh Fruit and Vegetable Association's 2006 Form 990 showed assets of $3.97 million.

2. In order for associations to consider substantive action, a critical mass of awareness among organizational players regarding the need for change must build in the organizations. This critical mass of awareness is contingent on three factors: the attentiveness and proactivity of a catalyst leader, a mechanism for scanning and understanding the changing external environment, and support for action among a nucleus of organizational players.

TK: My impression is the major catalyst for change comes from PMA and its board, though there may be champions for the cause in United's board. In any case, it is a critical mass? The industry wonders about marketing/expos and government relations; must both organizations do both? And who is the lead dog for crisis communication?

3. Two fundamental shifts in thinking about the relationship among the merger players underlie the merger decision: associations must view each other as valued, prospective partners rather than competitors; and, the dominance of one of the partners in the merger transaction must be either informally or formally accepted. Successful mergers are built upon the success of precursor partnering activities.

TK: There's the catch. "The dominance of one of the partners in the merger transaction must be either informally or formally accepted." The balance sheet points to PMA as the dominant association, but United's role in lobbying for hundreds of millions in government support is hard to overlook. As to the last point, how well have PMA and United worked together in the past? That's a good indication of how they might do when combined.

5. Four factors are critical in moving from awareness to action: a skilled catalyst leader must be present; a nucleus of individuals within the organization must be positioned to embrace and drive the action; an extended time period must be allowed for discussion and processing of the merger; and opportunities to build and preserve social capital must be incorporated throughout the process.

TK: An extended time period for discussing and processing the merger(check), but who is the skilled catalyst leader? Is there a nucleus of individual within each organization to embrace and drive the action?

6. The implementation of the merger decision requires extensive choreography of process and people. The use of a transition champion brought in for an interim period for the purpose of merger implementation contributes to merger success and insulates key executives and board members from negative consequences..

TK: It is great that United and PMA are talking. It can only mean that communication is happening. But ultimately I think there is too much going on in Washington for United to have the time to focus on a possible merger with PMA. I believe a blue ribbon panel should be comprised of members of each board. That powerful panel should issue findings to be considered by the boards of PMA and United, with recommendations on ways the groups can avoid redundancy and increase their utility to their members and the industry.

Packer Award

Greg Johnson, managing editor of The Packer, presented the Foodservice Achievement Award (now the Sixth Annual) at the PMA Foodservice Conference in Monterey, Calif. on July 15.

Here is an extended excerpt from the award presentation:


As you might expect, this year’s Foodservice Achievement Award winner also has shown leadership in the industry’s mission to regain consumer confidence.

In the aftermath of the September E. Coli crisis with spinach, suppliers analyzed their process of getting product to market because it was clear, the system wasn’t good enough.

Industry associations worked with their members to come up with better protocols and restore consumer confidence in a number of leafy greens. And of course, the government got involved.

But what it took to get the industry firmly headed in the right direction was a group of foodservice and retail buyers who began to work with suppliers to develop a single set of safety standards for the industry. Our honoree knew that and helped lead the group.

One industry peer said: “We had a brief window of urgency to take the pressure off the trade groups and let them do their work. With that buyer group, his credibility was very much on the line.”

Another peer said of our honoree: “He took the approach of saying to suppliers ‘There are reasons you should do this’ rather than with a threat.”

The result is the California Leafy Green Products Handler Marketing Agreement, which provides a minimum threshold food safety protocol that is specific, measurable and verifiable.

Our honoree’s company made food safety a priority long before last fall’s problems. This company has a two-tiered approach for its suppliers.

It has a baseline set of requirements for all suppliers, with proof of third-party certifications. And for suppliers of its proprietary brands, it requires GAP, GMP and HACCP programs, and full traceback to field level with that information printed on master cartons and internal packaging.

His company has been an agenda-setter in foodservice for years. It was the first produce purchasing agent for foodservice. Started a little over 20 years ago, this company today procures, markets and delivers fresh produce for 10 independent foodservice distributors across North America, and its members account for more than 12 Billion Dollars in annual foodservice sales.

One colleague said: “The company really woke up the industry to foodservice needs. It’s the pioneer to all the foodservice distributors. Most suppliers would say this: It’s the elite company to do business with.”

Our honoree leads this company, but not with an overt, omnipresent or dictatorial style.

“He puts you at ease with the way he relates to people,” One peer said. “You don’t realize how important he is because he’s so warm and genuine.”

Another said “He’s a very good listener. He articulates a point of view without ever being condescending. He’s thoughtful and patient.”

PMA President Bryan Silbermann got to know him pretty well with the 10 years he served on various PMA boards and the one year he spent as chairman.

Bryan said at the time our honoree left the board: “Perhaps what sets him apart the most is his ability to take the broad view at all times, truly taking off his company hat to put on his industry hat in representing all the members of this great association. Perhaps that’s because as president of his company, he has to run what is practically a mini-association, answering to multiple bosses, keeping different agendas from upsetting the broader goals.”

Keep in mind, this was before his work on the food safety buyer group and on the Ag Secretary’s Fruit and Vegetable Advisory Committee.

On the personal side, he’s been with the same company for 22 years, the last 10 as president. He lives and works right here in the Salinas Valley. He’s been married for nearly 30 years. He’s active in his son and daughter’s lives. He’s taken leadership roles in his church. He runs marathons. He organizes dinners at industry meetings.

In short, he’s got the perfect make up for leadership, which is a good reason why he was in this year’s Packer 25, our annual profile on industry leaders.

Perhaps the best thing any of his peers said about him is the following about his work on food safety: “This won’t be the last thing he takes leadership of, believe me.”

Ladies and Gentlemen, your 2007 Packer Foodservice Achievement Award Winner, President of Salinas, California-based Markon Cooperative, Tim York.

The manager's amendment

Here are some of the changes impacting f/v programs in House Agriculture Committee chairman Collin Peterson's manager's amendment this morning: See links here for the language and here for the summary of the manager's amendment. By the way, I noted the Mulch blog had some coverage from Fresh Talk this morning.

From the summary:

SEC. 4303. EXPANSION OF FRESH FRUIT AND VEGETABLE PROGRAM.
Amends the Richard B. Russell National School Lunch Act to increase funding for the fresh fruit and vegetable program to $70,000,000 in each of fiscal years 2008 through 2012, and expands the program 35 schools in each State, plus additional schools in each State in proportion to the student population of the State.


SEC. 7310. ORGANIC RESEARCH: Adds $25M for FYs '08-'12, in addition to current authorization of appropriations.


SEC. 7411. SPECIALTY CROP RESEARCH INITIATIVE: Adds $215M for FY's '08-'12 in addition to current authorization of appropriations.
SEC. 7511. FRESH CUT PRODUCE SAFETY GRANTS: Adds $25M for FY's '08-'12 in addition to current authorization of appropriations.

Title X – Horticulture and Organic Agriculture
For the Specialty Crop Block Grants, add an additional $100M for FY's '08-'12 to what we have in the base bill.
For the Clean Plant Network, add $20M for FY's '08-'12, in addition to current authorization of appropriations.

Cardoza reprise

From the office of Rep. Dennis Cardoza, the opening statement at yesterday's farm bill mark-up hearing:

OPENING STATEMENT OF REP. DENNIS CARDOZA
2007 FARM BILL
HOUSE AGRICULTURE COMMITTEE MARK-UP

Mr. Chairman and Members,
I would like to report that I met with the Chairman today and am pleased with his strong commitment to specialty crops in the Manager’s Amendment. Investment in specialty crops will strengthen the bill, bring broad and strong support to the bill and provide for a new vision for agriculture in this nation. Chairman Peterson and I also met with the Specialty Crop Alliance, and I am pleased to report that the Alliance is also in strong support of the Manager’s Amendment.
The Manager’s Amendment offers us an unprecedented opportunity to link healthy eating with support of our nation’s specialty crop industry. At a time when our nation is facing a health crisis with obesity and other diet-related illnesses, it is essential that the next Farm Bill policy promote healthy eating.
Increasing access to fresh fruits and vegetables in schools, to food stamp recipients and the elderly isn’t just good for specialty crop growers--- it’s good for our nation’s health.
Increasing consumption of these healthy products through research, marketing and promotion programs isn’t just good for specialty crop growers--- it’s good for our economy.
Areas of this country that grow specialty crops have not received their fair share of funding under previous Farm Bills. The Manager’s Amendment will finally give the specialty crop industry the support it deserves. I thank the Chairman for his commitment to support.
The Chairman’s Mark also offers us an unprecedented opportunity to reward environmental stewardship. Providing support to farmers who invest in air and water quality improvements, conserve water or restore wildlife habitat isn’t just good for farmers---- it’s good for our environment and good for the nation.
The Chairman’s Mark also offers us an unprecedented opportunity to turn some of our "problems" into solutions--- investing in technologies that convert livestock manure, plant biomass or even switch grass into energy isn’t just good for farmers--- it’s good for our energy independence, good for our fight to address global warming and good for our nation’s security.
This bill represents a new day and a new vision for agriculture by providing a strong link between agriculture and our nation’s environmental, energy, nutrition and economic goals. I want to thank the Chairman for all his work toward achieving these goals. I look forward to today’s hearing and to continuing to work with the Chairman, my colleagues on the Committee and the over 120 co-sponsors of the EAT Healthy America Act on adopting a bill that meets these goals.