Snack rules

I opened up the English language newspaper The Nation in Bangkok on Sept. 7, and one of the lead stories in the business section is headlined “TV producers, advertisers protest snack ban”
The story’s lede says that “producers of children’s programs may suffer heavily from a loss of revenue following the ban on some ads.”
The head of Thailand advertising association said revenues could drop 10% as a result of the new regulation, which is effective Sept. 1 in trial form.
From the story: “He (head of the advertising association) suggested the government try educating adults on the danger of letting their children grow fat and remind them to read the ingredients on every package.”
That’s pretty funny. I can hear that conversation with a 5-year old. Remember, son, always read the nutrition label. Always.
An alternative, Mr. Ad Guy, would be to limit junk food advertising to kids by “adults.” Thailand’s regulation is not that draconian, as it only limits advertising to children to 10 minutes per hour, it doesn’t eliminate it totally. All cartoon characters are not allowed in food advertising targeted to children, and advertisers must spend two minutes for every ten on the “right way” to consume snacks.
Rising obesity is a problem here in Thailand and every other Asian country. Trying to get out ahead of the issue is not a bad idea, notwithstanding the shallow objections of the junk food advertisers. They should pitch their talent to fruit and vegetable marketers and everyone would be better off. Speaking of, be sure to check out the poll question this week on pitching fruits and vegetables to kids.

Does size matter to Tesco?

Here is an excerpt from the AsiaFruit Congress, with Chris White of Eurofruit Magazine asking Jonathan Sutton of Tesco about how Tesco values size of supplier when direct sourcing.

DeLauro reaction to Interagency Working Group

While finding the interim report incomplete, Rep. Rosa DeLauro finds some good things in today's Interagency Working Group report on import safety:

“Although I would have preferred that the Administration had not delayed the release of an action plan, this interim report at the very least, is an acknowledgement that a serious problem exists in our food safety system and as such, deserves attention.

“As they say however, the devil is in the details and vague discussions about building blocks and frameworks on how to increase accountability, enforcement and deterrence is helpful, but I hope the action plan that is forthcoming will contain details about how to ensure the safety of imported products.

“Specifically, the action plan should detail how bad actors will be held accountable, how strict safety standards will be developed and enforced, and how such a system would be funded. For example, if the working group proposes moving towards a risk-based inspection system for imports, it should ensure that the system is based on meaningful scientific data – a problem USDA is currently facing. The action plan also should discuss how mandatory recall authority could impact the government’s ability to intervene when a recall occurs.”

Farm bill math

With the Washington Public Policy Conference about to convene, the shape of the Senate farm bill has yet to take firm shape. One Washington lobbyist told me, speaking on background that Sen. Tom Harkin, Senate Agriculture Committee chair, and Sen. Kent Conrad, D-N.D., are attempting to work together to see if they can bring a bill out of the Agriculture Committee with 13 to 15 votes in support, rather than just the 11 votes necessary to prevail. Broader support within the committee could forestall wholesale changes to the farm bill on the Senate floor.
"Conrad is in the driver's seat, no question; Harkin wants Title I (commodities) reform more than Conrad," the lobbyist said. Harkin wants savings from Title I reform to help fund priorities in conservation and nutrition. Apparently markup in the Senate Agriculture Committee may be delayed until after the Senate Finance Committee identifies tax-break related funding opportunities for conservation and energy programs.
While tax breaks and credits aren't useful in addressing f/v industry priorities, any tax measures that can be devoted to conservation and energy through the Senate Finance Committee may make room for other funds to be used for f/v priorities. Sen. Debbie Stabenow, D-Mich., will be a key ally in the process, as she sits on both the Finance Committee and the Agriculture Committee.

While originally slated to start the week of Sept. 17, Senate Agriculture Committee now is not expected to begin markup by then.

New Import safety report

Here is the link to the just issued report on import safety by the interagency working group appointed by President Bush in July. The reports notes that in fiscal year 2007 we will import $350 billion in goods from Canada and $341 billion from China. The government says we can't inspect our way to import safety, but they do see room for change.


From the report's introductory letter by Michael Leavitt, Secretary, Health and Human Services and chair of the Interagency Working Group on Import Safety:

The Interagency Working Group on Import Safety is pleased to submit this initial report, Protecting American Consumers Every Step of the Way: A strategic framework for continual improvement in import safety, in accordance with your Executive Order of July 18, 2007. The report outlines an approach that can build upon existing efforts to improve the safety of imported products, while facilitating trade.
Americans benefit from one of the safest food supplies and among the highest standards of consumer protection in the world. Our task is to build on this solid foundation by identifying actions for both the public and private sectors that will help our import safety system continually improve and adapt to a rapidly growing and changing global economy.
Approximately $2 trillion of imported products entered the United States economy last year and experts project that this amount will triple by 2015. The federal government cannot and should not attempt to physically inspect every product entering the United States. Doing so would not only bring international trade to a standstill, but would also distract limited resources from those imported goods that pose the greatest risk. Instead, we have to be smarter about what we do.
While we acknowledge it is not possible to eliminate all risk with imported and domestic products, being smarter requires us to find new ways to protect American consumers and continually improve the safety of our imports. We recommend working with the importing community to develop approaches that consider risks over the life cycle of an imported product, and that focus actions and resources to minimize the likelihood of unsafe products reaching U.S. consumers.
This will require shifting from reliance on "snapshots" at the border to interdict unsafe products, to a cost-effective, prevention-focused "video" model that identifies and targets those critical points in the import life cycle where the risk of unsafe products is greatest and verifies the safety of products at those important phases. Such a risk-based, prevention-focused model will help ensure that safety is built into products before they reach our borders.
Import safety is a public-private responsibility and some agencies and private parties are leading the way towards a more preventative system. There are important roles for the private sector, foreign governments, the U.S. government, and state and local governments. As with domestic products, recognizing best practices and incentives within the private sector and building consensus among the public and private sector are cost-effective and proven ways to minimize risks.
Supporting this model are six building blocks: 1) Advance a common vision, 2) Increase accountability, enforcement and deterrence, 3) Focus on risks over the life cycle of an imported product, 4) Build interoperable systems, 5) Foster a culture of collaboration, and 6) Promote technological innovation and new science.
Over the coming weeks, we plan to solicit extensive comments and recommendations from the public, and we will provide to you a follow-on Action Plan by mid-November. The Action Plan will be based on this Strategic Framework and will lay out a road map with short- and long-term recommendations for improving import safety.

Here is FDA reaction:

STATEMENT BY COMMISSIONER von ESCHENBACH ON THE RELEASE OF THE STRATEGIC FRAMEWORK DOCUMENT ON IMPORT SAFETY
Background: HHS Secretary Leavitt today delivered to President Bush a strategic framework on import safety. The framework was developed by the Interagency Working Group on Import Safety, established by the President July 18 to examine our nation’s system for assuring that all of our imported products are safe. For more information, visit: http://www.importsafety.gov.
"I strongly endorse the release of the Strategic Framework developed by the Interagency Working Group on Import Safety and commend Secretary Leavitt for leading this comprehensive effort.
Recent recalls of imported products have caused Americans to question the safety of imports. Americans rightly expect to purchase food and medical products without having to worry about their safety; and assuring the safety of these products is a core part of our mission at the FDA. The President has charged the Interagency Working Group to focus their efforts on how to work smarter and better with importers, manufacturers, and other governments to better assure that the imported products we purchase are indeed safe. As part of this Presidential initiative, Secretary Leavitt and I have traveled extensively these past few months throughout the U.S. visiting the Agency's field operations. Across the country, we witnessed our field staff standing shoulder to shoulder with our partners from the U.S. Department of Agriculture and Customs and Border Protection and others, working together to assure the safety of imported products. In visits to nearly 20 cities/ports from Oakland to Miami, including El Paso, Tex.; Newark, N.J.; and Memphis, Tenn, we saw dedicated professionals doing difficult work; observing first hand the diligent efforts of FDA employees and what they do every day to protect the American people. Most importantly, we heard from these professionals many ideas on how they believe we could do this job better and smarter.
The three organizing principles that form the keystones of the Strategic Framework: Prevention, Intervention and Response are ones we embrace strongly here at FDA and are principles we know will guide us towards better and smarter import safety strategies. We know that in the 21st century's global economy, our efforts to assure product safety for Americans cannot just begin at our borders, they must begin at the time the products are produced in other countries. I am excited about the fact that these principles have been embraced by the Framework, and I look forward to working with the Group on the Action Plan to be released in November. Together, we will further integrate and enhance our processes relating to the safety of imports."

Reaction from the USDA

Statement by Secretary Mike Johanns Regarding the Strategic Framework for Import Safety September 10, 2007
"I commend Health and Human Services Secretary Mike Leavitt for his leadership, as chair of the Interagency Working Group on Import Safety, in producing the Strategic Framework for import safety, which he presented to President Bush today.
"The Strategic Framework establishes the building blocks upon which the U.S. system of import safety can be strengthened, recognizing that the U.S. enjoys one of the safest food supplies in the world. Secretary Leavitt has traveled the country to collect input from those involved with importing goods, while also bringing together the collective ideas of the twelve federal departments that make-up the working group.
"The Strategic Framework will serve as the foundation for an Action Plan being developed by the working group, which we hope to present to the President in November. The action plan will provide specific short- and long-term recommendations.
"I look forward to being joined by Secretary Leavitt this Wednesday as we tour a small meat processing plant in Kansas City, Missouri, and meet with Midwest producers to hear their recommendations about strengthening import safety.
"I am also pleased to host a public meeting at the U.S. Department of Agriculture's Jefferson Auditorium in Washington, D.C. on October 1, 2007, to provide consumers and advocates an opportunity to offer comments about import safety. Details about the public meeting and comment period, the Strategic Framework and other import safety information are available at www.importsafety.gov ."

What is locally grown?

Can anyone give me their definition of locally grown? I got a call from an East Coast distributor today who observed that one of his New England suppliers is touting "locally grown" as justification for a hefty premium. What is the defnition of locally grown?

A day's drive? Two hours? In the same county?

Here is what Whole Foods says on its Web site:

Local produce is by definition seasonal. In spring in California, that means artichokes; summer in Michigan means blueberries and autumn in Washington means apples. We value this natural diversity and have firm guidelines for using the term "local" in our stores. Only produce that has traveled less than a day (7 or fewer hours) from the farm to our facility can be labeled "locally grown."

Poll closed!

The latest Fresh Talk polling period has come to a close, with most reporting they see a bigger role for the "buy local" fresh produce in the future.

The question was:
In terms of consumer purchases of fresh produce, will the "buy local" trend be more significant or less significant in two years?

The answers:
Much more significant
5 (29%)
Slightly more significant
5 (29%)
About the same
5 (29%)
Less significant
1 (5%)
Much less significant
1 (5%)

The next Fresh Talk poll question: More and more fresh produce marketers are using kid-friendly cartoon characters on packaging. Will this trend result in greater sales for the fresh produce industry and a long-term increase in fruit and vegetable consumption by children?

China on their minds

A Sept. 7 presentation at the Bangkok AsiaFruit Congress by Patrick Vizzone, a Honk Kong based regional head of Asia food and agribusiness for Rabobank International Asia, presented the highlights of a recent survey of the Asian fresh produce trade. Whether prompted or not, he noted China came up often in the answers of industry leaders surveyed. Here is the audio link to his presentation.

In general, he said China has great potential in the long term as an import market for fruits and vegetables. China's internal market conditions will influence the course of their export growth. While China has a huge trade surplus in fruits and vegetables, it accounts for only about 2.5% of their total production.

The issue of whether China's growth in exports are sustainable was also raised, as water and contamination may limit the country's potential to expand, some Asian produce industry leaders believe.

As for more general topics, Vizzone said some of Asia's "winning" commodities for the future were identified in the survey as citrus, grapes and apples, The Rabobank survey also showed general optimism about growth prospects for the produce trade in Asia.

Contrary to perception, perhaps, traders don't believe a low cost strategy will be the way to succeed in Asia. Differentiation by food safety, brand and proprietary variety will be significant, traders believe.

46 new messages

The tyranny of the email inbox cannot be overrated. I find that any disruption in the schedule of accessing email can lead to quickly overflowing inbox and stern warnings from the Vance administrator that my email account has exceeded its limit. Emails are missed that may never be opened. Being in Bangkok for just three full days, bracketed by 20 hours plus in the airport and on jumbo jets coming and going, I have missed my share of email. One of my email accounts tracks Google news alerts, which tumble into the inbox with the kind of ordained regularity that both satisfies and terrifies.

Here is a honest attempt to catch up with some headline highlights of news while I was away.

Calculate How Many Fruits and Vegetables to Eat Each Day From KABC
No matter how many times you hear it, 90 percent of Americans don't eat enough fruits and veggies. So the government is launching a new web tool to help families figure out ways to get more greens. Parents hungry for ideas on using fruits and vegetables can tap into a new resource guide from the Centers for Disease Control and Prevention.
The goal of the campaign is to encourage Americans to consume more fruits and vegetables in all forms, cooked, fresh, frozen, canned, dried, and juiced.
Here's the Web site.


Program has color-coded way of promoting fruits, vegetables From the Toledo Blade:
Welch’s 100 percent Grape Juice is supporting the Fruits & Veggies — More Matters public health initiative which encourages Americans to add more fruits and vegetables to their diets. To support this, Welch’s has declared Sept. 24-28 to be “PACK Week: Pack Assorted Colors for Kids Week.” During this week, parents are encouraged to include more fruits and vegetables in a variety of colors into their children’s snacks or lunch boxes.

Mexican trucks approved for long-haul trips in U.S.
Federal officials have confirmed that the first Mexican truckers have been given authorization to run their long-haul rigs throughout the United States under the Department of Transportation's Mexican trucking demonstration project.
The word came during a late-night surprise teleconference held by John Hill, the administrator of the Federal Motor Carrier Safety Administration. He told selected reporters that Transportes Olympic of Nuevo Leon was the first company to be given the authorization. "This program was literally announced under the cover of darkness," James P. Hoffa said in a Teamsters press release issued by his office today. "I have no doubt the Bush administration knows how angry the American people are about it."
Hoffa continued, "I cannot understand why George Bush is jeopardizing the safety and security of the American people

Hey it's good to be back home again

Thanks to the magic of the international dates line, I left Bangkok at 4 a.m. Saturday and by 5:30 p.m. that same day I landed in KC. One day in the office Monday and then I'm off to the Washington Public Policy Conference in Washington, D.C. from Tuesday until Friday. There is much to process about the AsiaFruit Congress and Asia Fruit Logistica, but there probably won't be a lot of time for retrospection. I will try to post a couple of reports from some of the sessions, though - particularly the retail panel, which featured pretty candid exchanges with suppliers.

My flight back home was uneventful. On the Bangkok to Tokyo leg I sat next to an American whose technology company has four plants in Asia to complement its home plant in North Carolina. On the next leg I sat next to a guy from Wichita who had married a Chinese woman over a year ago and is still trying to get her immigration papers approved by the U.S. so she can move to the U.S. with him.

American interaction with Asia and China is bound to increase on business and personal levels in the years ahead. An interesting presentation by Rabobank at the AsiaFruit Congress revealed that there are somewhat mixed views about China's future as an f/v exporter and importer. More on that session in some coverage from The Packer.