Argentina lemons

The USDA in the Sept. 27 Federal Register has extended the availability of a draft pest risk assessment for Argentina lemons for 60 days. Now the comment period will end Dec. 11.

One source said the extension was wanted by all parties; Argentina to work on data that shows the Medfly should not be a concern for Argentina lemons, and Arizona and California sources who are raising red flags about the Medfly. While lemons are not generally thought to be a Medfly host, Spanish lemons - perhaps picked off the ground - were found with Medfly last season. That has caused the Medfly issue in Argentina to take on added importance in Argentina's quest to export lemons to the U.S.

Wisdom of Solomon

Despite the investment of six months of consultations, discussions of a merger of PMA and United failed to yield fruit this year. The reasons are somewhat hard to decipher between all the talk of "core competencies" and "collaboration." Suffice to say that the boards of each association see the unique value of having two national associations. PMA is most known for marketing and networking, while United's strengths are government relations and lobbying. While these attributes could be complementary for a unified association, the vision for a common organization failed to win the day. At the end of the day, there are enough differences between the groups that a merger wasn't going to mesh. The good news is that each association appears committed to work with the other on various issues of common concern.

Never say never, but one wonders how long will it take for talks of a merger to resurface. It won't likely be in the next year. That means each association must find ways to thrive in an industry struggling with profitability issues. United needs a strong financial showing with its expo in Las Vegas and beyond.

Did personalities and egos play a role? Perhaps. Did the desire for one organization to exercise the upper hand over the other lead to some resistance? Human nature being what it is, quite possibly. How about the paid staff? How can the president of any association feel about merger discussions that could change his job security?

That selfless industry-first mindset required would be hard for me to possess.

Remember the wisdom of Solomon, whose command to divide a baby by the sword revealed to him who the true mother of the child was. The mother was willing to give her child to a rival to keep the baby alive. In that context, I will twist that story to say that whatever president, board, or association is willing to give up position for the good of the industry should be the one rewarded with leadership.

However, with no Solomon present and no sword in hand, we trust the boards of each association that both two mothers will be better than one.

Fruit outlook cloudy

Lower prices for most deciduous fruit were noted in the USDA's ERS Fruit Situation and Outlook report, issued yesterday. From the report, it seems apple growers still appear to be in a fairly strong position for 2007-08. Unmentioned in the report is the growing power of clementine production in California; from a recent conversation with a citrus marketer, I get the idea the growing footprint of that deal figures to increasingly crowd out clementines from Spain and make life none too easy for Florida tangerine shippers as well.


The index of prices received by U.S. fruit and tree nut growers remained below a year ago in
August as it has since May of this year. At 153 (1990-92=100), the index fell 5 percent below the August 2006 index due to lower prices for fresh-market apples, grapes, peaches, and all oranges and grapefruit. At the retail level, prices in August were higher for oranges, lemons, bananas, and strawberries. Light ending-season supplies of 2006/07 apples combined with a forecast smaller domestic crop in 2007 point to a continued strong market for U.S. apples during the 2007/08 marketing season. USDA’s National Agricultural Statistics Service (NASS) forecast the 2007 U.S. apple crop to be 7 percent smaller than in 2006, totaling 9.3 billion pounds. Production is expected to be lower across much of the Nation, including most major appleproducing States—Washington, Michigan, Pennsylvania, California, and Virginia.
NASS forecast the 2007 U.S. pear crop to be 1.76 billion pounds, 4 percent larger than last year. Among the three Pacific Coast States that produce a major share of the U.S. pear crop,
production is forecast to increase in California and Washington, but decline in Oregon. Combined production in these three States for Bartlett pears and other variety pears is forecast up 4 percent and 6 percent, respectively. The increase in production will likely hold 2007/08 fresh-market pear prices down from last season, but lighter supplies of competing new crop apples will help moderate some price declines.

On oranges.....

NASS released its first forecast for the 2007/08 California navel orange crop on September 12. According to results from the 2007/08 California Navel Orange Objective Measurement Report, 1.6 million tons of navel oranges are forecast to be harvested this season. If realized, this crop would be 27 percent bigger than last season’s frost-damaged crop, but 9 percent smaller than the average-sized 2005/06 crop. Trees experiencing the greatest impact of the freeze are likely still recovering, affecting the overall crop size. The survey also reports that there are 130,000 bearing acres of navel oranges in California’s Central Valley (composed of Fresno, Madera, Tulare, and Kern Counties), 1,000 more than last season. The trend toward increased planting of navel oranges has been going on since the early 1990s, although the rate of increase has slowed over the past few years. Trees are planted more densely on the newer acreage than the older ones, increasing the average number of trees per acre to 130, up from 121 trees between 1992/93 and 1998/99. The forecast for a smaller than average crop could result in strong grower prices this season. Reports, however, of smaller than average fruit size can dampen the extent of the increase, especially from export markets. In recent years, about 30 percent of the crop is exported each season.

On Florida citrus....

Florida NASS Field Office Conducts Citrus Inventory


NASS’ Florida Field Office and the Florida Department of Agriculture and Consumer Services conducted a special commercial citrus inventory of selected counties which were among the top 10 producers for all citrus. (Inventories are generally conducted every other year, but the industry requested a special one be conducted this year following one in 2006.) The inventory found a 4.1 percent loss in acreage between 2006 and 2007 in the 7 counties selected—Collier, DeSoto, Hendry, Indian River, Martin, Lee, and Polk. In 2006, these 7 counties accounted
for 56 percent of Florida’s citrus acreage. Martin County, in Southeast Florida, experienced the greatest drop in citrus acreage between 2006 and 2007 with a 12 percent decline. Over the past 5 years, between 2002 and 2007, the bulk of the acreage losses occurred due to acreage removed in response to citrus canker and the major hurricanes that directly hit Florida in 2004 and 2005. Over this time period, Florida lost 19 percent of its citrus acres. The greatest losses occurred in Indian River, with a 30 percent decline, and Martin, with a 27 percent decline. Polk and Hendry, the No. 1 and No. 2 counties in terms of number of acres, also experienced heavy losses. While official NASS estimates for all of Florida’s citrus crops will not be released until October 12, early private estimates have already been published, forecasting a bigger Florida orange crop for the 2007/08 season. The bigger crop will likely reduce grower prices from the very high prices received in 2006/07, but should remain above average. Demand from processors is still strong as they continue to replenish inventories. Also, although this season’s crop may be up from last season, it is likely to still be below average for pre-hurricane years. Higher prices will help growers offset some of the increases in the cost of production as they face higher prices for fuel, increased expenditures for disease control, and potentially tight labor availability at harvest.

Statement from PMA

This from PMA about the end to merger talks....

To: All PMA Members
Re: Discussions with United Fresh Produce Association (UFPA)

On behalf of PMA's Executive Committee (names listed below), we are writing to give you an update on the outcome of our discussions with UFPA.
For the past six months, a group of PMA volunteer leaders has been in discussions with UFPA leaders to explore the feasibility of a merger between our two associations. As with all PMA leadership groups, the members involved represented a cross section of our supply chain, including grower/shippers, processors, distributors, as well as retail and foodservice buyers.
UFPA and PMA representatives met in March and July to discuss the potential merger as well as the feasibility of a formal structural collaboration. During the discussions, it became apparent to us that UFPA's and PMA's core competencies and cultures are different, and that each association carries out its mission in distinct ways. After careful deliberation at our recent meeting, the Executive Committee determined that at this time, it is in our members' best interests to have the two separate associations continue to focus on the unique value they each bring to the industry.
While the merger talks have been discontinued, please rest assured that both organizations will continue working together in a spirit of allied industry partnership on issues such as food safety, traceability and more. As in the past, PMA will also collaborate with UFPA and others to ensure your perspective is well represented in public policy debates. PMA will continue to participate in government relations and public affairs activities when such participation is in the best interest of our members across the supply chain.
We know both associations are committed to providing future services and value to their members under the leadership of their Boards of Directors, and pledge our continued cooperation in areas of mutual interest. We look forward to seeing many of you at Fresh Summit in Houston next month.
Peter Goulet
Chairman of the Board
Janet Erickson
Chairman of the Executive Committee
Members of PMA's Executive Committee are:
Janet Erickson, Chairman of the Executive Committee
Peter Goulet, Chairman of the Board
Bruce Taylor, Chairman-Elect
Dave Corsi, Secretary/Treasurer
David Gill, member at large
Rob Robson, member at large

This just in

This release from United just slid across the inbox: Developing..


PMA, United Fresh End Merger Discussions

The Produce Marketing Association and United Fresh Produce Association have announced that the organizations are ending any further discussion of potential merger at this time, but will continue to cooperate in areas of mutual interest to each association’s members.

A joint exploratory group of six Board members from each association met together twice in the last six months, in March and July, to explore potential areas of common interest and collaboration. During those meetings, the two groups expressed a variety of views on the potential value of merger or some formal structural collaboration, and discussed candidly the pros and cons from each Board’s perspective.
Following the July meeting, each association agreed to make a determination of whether to continue talks on potential merger, or suspend further consideration. Although the two Boards did not come to an agreement on proceeding with further discussion, both expressed their commitment to working together on common issues in a spirit of allied industry partnership, while recognizing that each organization has its unique views about its mission and mandate in serving the industry.
“United Fresh has long been committed to being the strongest possible association advocate and essential expert resource for our industry,” said United Fresh Chairman Emanuel Lazopoulos, Del Monte Fresh Produce. “We have built an association environment in which all sectors throughout the supply chain can come together as real partners to develop solutions that best meet industry needs. That mission has driven strong annual growth in new membership, revenues, expertise and services now for many years, with expanded programs such as our new crisis management/recall training program just announced.”
One of our core values at United Fresh is to always be open to partnerships and cooperative relations that might best serve our industry, and thus we’ll continue to work with PMA and other allied partners in areas of mutual interest. But United Fresh will also continue to grow our unique expertise and services to the fresh produce industry, providing an essential value to produce companies, retail and foodservice partners, and allied suppliers across the total supply chain,” he concluded.

New crop apple shipments taking off

Colon cancer study

One study has found that high intake of fruits and vegetables doesn't seem to protect against colon cancer. From WebMD:
"People in the highest vs. lowest intake of fruits and vegetables had a 9 percent lower risk of colon cancer overall, but it did not reach statistical significance," McCullough says. When the researchers evaluated the association by site of the cancer, they found those who ate the highest amounts had a 26 percent reduced risk of distal colon cancers. "For proximal colon cancer (the rest of the colon) there was no association," Koushik says. "Even though we saw this [positive] association with distal colon cancer [risk], the differences between distal and proximal were not statistically significant."

TK: Lord help any of us if we get the grim news of colon cancer. I still feel better about what I am doing to my body by eating an apple than a Twinkie. While the halo effect of fresh produce may or may not descend to all parts of my being, this study won't take away the conviction that it does.

PBH releases this statement: From Elizabeth Pivonka:

"While the findings of this study suggest that a diet high in fruits and vegetables may not ward off colon cancer, the overall health benefits of a diet high in fruits and vegetables are indisputable. As National Cancer Institute scientists also point out, people who consume generous amounts of fruits and vegetables as part of a healthful diet are likely to have reduced risk of chronic diseases, including stroke and perhaps other cardiovascular diseases, type 2 diabetes and certain types of cancer including lung, oral, esophageal, and stomach. Also, as part of a healthy diet, eating fruits and vegetables instead of high-fat foods may make it easier for people to control their weight."