Imports rule

For some years now, fruit and vegetable imports have been accelerating in volume and value, building momentum as a car without brakes hurtles down a mountain road.
The USDA Economic Research Service on Sept. 10 issued a report on fruit and vegetable imports that reinforces that perception, though without the allusion to a car careening out of control. The report can be found at this link.

From the introduction:
Between 1990-92 and 2004-06, annual U.S. imports of fresh fruit and vegetables surged from $2.7 billion to $7.9 billion (nominal dollars throughout the report), with the share of total U.S.
imports for agriculture rising from 11.5 percent to 13.3 percent. U.S. exports of fresh produce also rose but less rapidly. As a result, the United States has increasingly become a net importer of fresh produce (fig. 1). This report examines the evolving structure of U.S. fresh produce trade to provide insights into changes in this rapidly growing area of U.S. agricultural trade in 1990-2006.

Consider these stats from the report:

About fruit:
Meanwhile, import share of overall U.S. fresh fruit consumption greatly expanded. Between 1983-85 and 2003-05, the import share of U.S. fruit consumption increased from 2.3 percent to 15.5 percent for citrus and from 41.2 percent to 53 percent for noncitrus fruit (including bananas). Between 1993-95 and 2003-05, the import share of fruit consumption for the top three fresh fruits consumed by the average American, excluding bananas, also increased: apples (from 6 percent to 7.1 percent), oranges (from 1 percent to 4.2 percent), and grapes (from 38.5 percent to 54.8 percent).

About vegetables:

Although most fresh vegetables consumed by Americans are still domestically produced, imports substantially increased in share of consumption over the last two decades—from 9.3 percent in 1983-85 to 16.3 percent in 2003- 05. Even for vegetables with declining per capita consumption, such as potatoes and head lettuce, the import share of consumption increased over the past two decades—from 3.2 percent to 6.1 percent for potatoes and from 0.5 percent to 1.7 percent for head lettuce. In addition, although per capita consumption of carrots, cabbage, celery, and cauliflower declined after the 1990s, import shares increased. Thus, since the 1990s, the import share of U.S. fresh vegetable consumption has increased almost across the board. In particular, import share has risen for tender warm-season vegetables that enter the United States during the winter and early spring when domestic supplies are limited. Major vegetables in this category include tomatoes (import share rising from 24.2 percent in 1993-95 to 35.2 percent in 2003- 05), peppers (from 17.1 percent to 29.5 percent), and cucumbers (from 38.1 percent to 49.3 percent).

TK: This is a well done report, if slightly bloodless (as all government reports tend to be). The reports cites several factors why imports have increased in importance:
Desire for year round supply
Greater trade within NAFTA
Technological advancements in packaging and the supply chain in general

The growing share of imports should punctuate the need for consumer labeling of country of origin on fresh produce. While consumers may not make buying decisions based on labeling, they should have access to the information.

Remember 9/11

Retailer promotes "Locally Grown" with product farmer

From Rick Bella: There has been much talk recently about the value of promoting locally grown produce at retail. There are many approaches that one can take to do so, but one retailer recently took it to a new level. What if you actually had the grower present inside the produce department to speak with customers about their crop, items, how it was grown and the nutritious benefits their fresh produce had to offer? Wow, what a statement that could make. That’s exactly what Illinois based Dominick’s did.

Last month my wife and I visited the newly remodeled Dominick’s supermarket located in Northbrook, Illinois in support of long time friend and farmer Dan Hinkle of Hinkle Produce, Cissna Park, Illinois. During a visit at his farm, Dan explained that he would be present during a weekend at a newly remodeled Dominick’s store to promote his sweet corn. This naturally intrigued me so we decided to take a ride to see Dan on Sunday. As we entered the store, we were greeted by someone passing out fresh baked cookies from the bakery. We could also smell the freshly brewed coffee from the new Starbucks little store now located inside the store (one next door too). Yes I was getting excited as touring retail stores has been a big part of my career in the past 25 years.

As we rounded the corner we noticed that there were many vendors displaying foods, offering tastes, cooking and preparing a wonderful variety of foods. The hoopla was to celebrate the Grand Re-Opening of this store, one of many that Dominick’s operates in Chicago and surrounding suburbs. Finally after a few tastes along the way to the produce department (last aisle in this store which I found odd) was a huge display of fresh sweet corn, properly signed with a very attractive retail price. Standing next to the display was the actual grower of the product himself, Mr. Dan Hinkle. Dan’s eyes lit up as we approached, but he was quickly distracted by a little girl asking about the corn and if she could try it. “Sure” he said as he placed a small sized ear of corn on the little girl’s plate. Dan was handing out samples of his bi-color fresh sweet corn; corn that was “locally grown” just 90 miles due south of the Northbrook, Illinois store location.

Most customers at first thought that Dan was just a demonstrator handing out some samples. It was to their surprise when Dan asked if they liked the corn and he said, “good, because I grew it.” The look on shopper’s faces was priceless and that allowed Dan to give his pitch about the type of seed used, when the corn was actually picked (the day before) and the process of how it actually got to market or in this case that display at the local Dominick’s store.

The store was extremely busy that Sunday as the re-grand opening advertising and great specials offered drew customers in the store. But I couldn’t help thinking what an impression Dan must have made to the shoppers there. Almost every shopper purchased sweet corn at the special price of .16 cents per ear. The produce department was top notch offing great variety and overall displayed fresh selections in bulk for customers. But that day, customers received something more. They met one of the many growers who supply the 100+ store chain with food. Food grown in a little unknown town in southern Illinois called Cissna Park by a farmer they may have never known named Dan Hinkle. One customer, named Carol Pugh of Northbrook, Illinois, really made Dan’s day when she reluctantly tried a sample announcing that her father many years ago grew fresh sweet corn and she had never found any better than that. As she and her little girl tried the sample of bi-color corn, she smiled at Dan as asked her little girl to “get a bag honey; we’re buying some sweet corn today.” That would not have happened without Dan’s presence and Dominick’s commitment to offering a great promotion idea to its customers. That moment made the 2 hour drive for Dan worth the effort. Oh yes, a couple bags went home with us too... have you ever just had sweet corn for dinner? I recommend it for sure! Hinkle Farms can be located at http://www.hinkleproduce.com/

Discussion board roundup 9/11

On the message board of the Fresh Produce Industry Discussion Group, Big Apple posts this link to AP news of Rep. Collin Peterson in Kansas:

HUTCHINSON, Kan. Consumers could see the price of fruits and vegetables double if the nation does not address a looming farm labor shortage in the wake of tightening immigration enforcement, House Agriculture Committee Chairman Collin Peterson said.
Peterson, D-Minn., told producers attending the Kansas State Fair this weekend that the agriculture committee will focus on the immigration issue as it strives to do its part to make sure there is adequate labor. He said some crops will not be harvested this year unless something is done.
Peterson said after the forum that he has talked with judiciary committee leaders in an effort to hold either separate or joint hearings on the issue within the next two weeks.
“We are going to let producers come in and tell their stories, what they are concerned about. We think there could be significant increases in food prices caused by this if we don’t fix it,” Peterson said.

Big Apple also post news of the first Mexican long haul trucks making deliveries to the U.S. From the story:
The U.S. plans to give as many as 25 Mexican firms permission to haul cargo north of the border by the end of the month, and will add another 25 per month until reaching 100 — for a total of 1,000 trucks — by year's end under a one-year pilot program. The Mexican government also has committed to allow trucks from as many as 100 U.S. firms to travel anywhere in Mexico.


On the subject of "what is local produce?," the discussion group has an interesting thread going here. Some excerpts from the thread:

From KAKTUS:
I always considered the commodity to be locally grown if you could place the order today and receive it before the end of the day tomorrow. I know other people that consider it if grown not more than two counties away.

From Luis:
That's as good as any. The Wikipedia has a small segment on all kind of different answers to that question.
http://en.wikipedia.org/wiki/Local_food#What_defines_local_or_regiona...
As a curve ball and to confuse things, I would add the concept of "cultural distance" hinted on the article. Like when someone from India eats an India mango in NY. The product is local in the sense that is in close memory/emotion proximity. Sort of like when people move to a new city but keep rooting for their "home town" team. Labels like "Mexico Calidad Selecta" and accompanying eagle could trigger such a reaction from some shoppers of Mexican origin.
Probably someone has carried out an opinion survey on all of the above.

AsiaFruit Congress retail panel

I've had a chance to add the audio link of the retail panel from the AsiaFruit Congress in Bangkok on Sept. 6. Quite a bit of focus on direct sourcing, procurement and food safety among the various retailers in a session moderated by Chris White.

Spinach flashback