Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Thursday, August 23, 2007

Mixed messages

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

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

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

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

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Full steam ahead

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

Here is the report from CNN via PR Newswire:

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

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PMA response to Peru disaster

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


Dear Bruce, Jim, and Tom;

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

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

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

All my best,

Nancy


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

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Apple show

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

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

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

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

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Tomatoes and food safety

The Washington Post published an extensive piece by Goody Solomon on Aug. 22 about food safety and tomatoes. Here is the link passed along by K-State's Food Safety Network.

Ponder food safety, as we tend to these days, and tomatoes don't readily come to mind -- unless you are at the Food and Drug Administration, which launched a Tomato Safety Initiative in Virginia in July. The program will move to Florida during the fall growing season, with plans to reach other locales.
Its dual purpose is to find practices that might lead to contamination and devise ways to fix them. Twelve outbreaks with a total of 1,840 cases of food-borne illnesses linked to fresh and fresh-cut tomatoes have occurred since 1998, according to the FDA. Most were traced to Virginia's Eastern Shore and Florida, two major growing areas, and a few to
Georgia, South Carolina, Ohio and California. Salmonella was the main culprit.

Under the initiative, teams of experts (from federal, state and local government; the produce industry; and a university such as Virginia Tech) visit farms and packing facilities to assess conditions such as water and animal proximity.
Because water can carry bacteria, investigators look at irrigation water, wells, chemical mixing procedures and the results of drought and flooding, said Jack Guzewich, a specialist in food-borne diseases at the FDA Center for Food Safety and Applied Nutrition.
"Animals can be anything from reptiles to birds and mammals -- the whole zoological garden," Guzewich said. "Feces get into land and water, and, in some cases, an animal comes in contact with the plant."
The expert teams have completed their Virginia visits. They went to more than 50 growing fields and three packing facilities. But the data have not yet been entered "to see to what extent patterns start to emerge," said Michelle Smith, an interdisciplinary scientist at the Center for Food Safety and Applied Nutrition. The information will help the agency decide the best regulatory approach, she said.
The produce industry applauds this effort. "It will provide the FDA a sense of what is going on
in the industry and provide the industry with input from the FDA directly on things to minimize risks and change practices," said David Gombas, senior vice president for food safety and technology at the United Fresh Produce Association.
In contrast, Caroline Smith DeWaal, director of food safety at the
Center for Science in the Public Interest, faults the FDA's reliance on voluntary performance. The CSPI has petitioned the FDA to mandate on-farm food safety plans dealing with such factors as manure uses, clean water and worker hygiene.

TK: Here is the link to the FDA announcement on tomato safety initiative from June 12. Better to have the focus on this FDA initiative on tomatoes now rather than after a major foodborne illness outbreak.

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