Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Tuesday, October 30, 2007

CSPI White paper gets nod from DeLauro

Here is a statement from Rep. DeLauro on the 20-page CSPI White Paper on food safety:

DeLauro
Statement on CSPI
Food Safety White Paper

Washington, D.C. – Congresswoman Rosa L. DeLauro (Conn.-3) issued the following statement about the white paper from the Center for Science in the Public Interest: “Building a Modern Food Safety System: For FDA Regulated Foods.” “CSPI has drafted a comprehensive document that serves as an excellent reference source for anyone who would question whether our food safety system is broken. CSPI also dispels the notion that food-borne illnesses in the U.S. are insignificant, and reminds us that significant work remains in ensuring the safety of our food supply. “The CSPI document also provides exceptional guiding principles for Congress as we move forward with plans to modernize our food safety system. Many of these principles are being incorporated into the new bill I am drafting– The Food Safety Modernization Act – that would implement a modern food safety system with mandatory recall authority, inspection authority, and science-based performance standards. “I am looking forward to working with my colleagues in Congress to move forward with the ideas in my new bill, and in the CSPI report. The current environment indeed gives me real optimism that reform of the food safety system can be accomplished soon and those of us in Congress should take advantage of this unprecedented opportunity.”

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USDA ERS Fruit Yearbook

Find the USDA ERS Fruit and Tree Nut Yearbook, released today, here.

From the report:

Bearing acreage dropped 7 percent for citrus and almost 1 percent for major noncitrus crops between 2005 and 2006, but increased 2 percent for miscellaneous noncitrus crops and 1 percent for tree nuts. Bearing acreage declined for all major citrus fruit, mostly led by the loss of acreage in Florida.

Orange acreage fell in both Florida and California. California growers are removing Valencia orange trees due to weak demand for the fruit. Most of the grapefruit acreage loss occurred in Florida, with California and Arizona acreage declining slightly. Grapefruit bearing acreage has remained constant in Texas since 2002/03 at 18,500 acres. Lemon acreage declined by 1,000 acres in Arizona, but California’s acreage remaining unchanged between 2005 and 2006 at 44,000 acres, and accounted for 77 percent of the total. The 5-percent decline in total tangerine acreage was a result of fewer acres in Florida, even though California continues to plant more acres of different tangerine varieties that are showing strong popularity among American consumers. These varieties, such as clementines, are at present still mostly imported.Among noncitrus fruit crops, bearing acreage fell between 2005 and 2006 for apples, peaches, pears, tart cherries, plums/prunes, apricots, figs, Hawaiian pineapples, and kiwifruit. Some of the decline was offset by increased bearing acreage of sweet cherries, avocados, bananas, dates, and Hawaiian papaya. The number of bearing acres remained relatively unchanged for grapes, nectarines, and cranberries. Total fruit production declined 4 percent in 2006 from 2005, totaling 30.2 million tons, the smallest quantity produced since 1991 While citrus production was up 1 percent in 2006, it was still low relative to recent years, as Florida’s trees still felt the effects of the hurricanes in 2004 and 2005 and diseases, such as citrus canker and citrus
greening, continued to hinder Florida’s production. Noncitrus production fell 8 percent in 2006 from 2005, with 16.9 million tons produced. Smaller peach, grape, tart cherry, apricot, fig, Hawaiian pineapple, avocado, nectarine, kiwifruit, and papaya crops contributed to the decline in noncitrus production.Tree nut production increased 9 percent between 2005 and 2006 to 1.6 million tons (in-shell basis).

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Poll closing

Again I invite participation in this week's poll question, which will expire tomorrow. Hundreds have visited the site this week but only a handful have voted in this poll. The injustice of it all....

In my argument the other day about the need for a national checkoff assessment for fresh produce, I didn't raise the issue of how that goal of a generic fresh produce promotion campaign funded by mandatory assessments might conflict/compete with commodity-focused promotion orders such as watermelon, potatoes and mangoes, to a name a few.

In this thread at the Fresh Produce Industry Discussion Group, Big Apple publishes the notice from the USDA that approves an assessment increase for the National Watermelon Promotion Board.

From the final rule's summary:
This rule amends the Watermelon Research and Promotion Plan (Plan) to increase the assessment rate on producers, handlers, and importers of watermelons from four cents to six cents per hundredweight. Domestic producers and handlers will pay three cents per hundredweight each and importers will pay six cents per hundredweight. The increase is provided for under the Plan which is authorized by the Watermelon Research and Promotion Act (Act). The National Watermelon Promotion Board (Board), which administers the Plan, recommended this action to sustain and expand their promotional, research, and communications programs.


TK: The increased assessment for the watermelon board merely adjusts for inflation - after all, the last time assessments were changed was more than 10 years ago. Still, of 40 comments received, 13 comments opposed the assessment hike. That's a tough crowd, and it reflects how difficult it would be to create a whole new mandatory assessment program for fresh produce promotion. Even so, no one told George Washington that crossing that Delaware River in December would be easy. Like the General, we have to look at the upside.

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More than bananas

Chiquita recently reported a restructuring of their operations, and the The Packer's David Mitchell wrote this about their moves:

As part of a restructuring initiative announced Oct. 29, Cincinnati-based Chiquita Brands International Inc. said its plans to axe the line of fruit bowls it introduced in 2003 and instead will focus its fresh-cut efforts on value-added salads and snack packs.“Over the last year or so, we introduced new products, like Chiquita Apple Bites, as healthy snacks,” said Chiquita spokesman Mike Mitchell. “Those have been much (more well) received by consumers and customers.”In addition to its Apple Bites, Chiquita introduced single-serving bags of grapes, carrots and snap peas this summer in test markets.Mitchell said Chiquita plans to honor its fruit bowl commitments to customers but will convert fresh-cut plants in Edgington, Ill., and Salinas, Calif., from fruit bowl production to snack pack and bagged salad production in the next few months.

TK; In other news, Fresh Del Monte today issued a fresh report about their third quarter performance.



From their release:


For the third quarter of 2007, Fresh Del Monte reported net income of $29.9 million, compared with a net loss of $82.9 million for the comparable prior year period. Net income for the first nine months was $145.4 million, compared with a net loss of $83.4 million during the same period in 2006. The significant increase in net income for the first nine months of the year was due to continued andd sstained improvements throughout the Company’s operations. “It is gratifying to see the actions we took in 2006 to drive global improvements have had a very favorable impact across all of our business segments,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. “Our team did an exceptional job in terms of focusing our sales and marketing efforts and increasing efficiencies, and these efforts have resulted in one of the best third quarters in our history, during what is traditionally our most challenging three-month period.” Abu-Ghazaleh added, “We continue to face challenges in our industry and our business related to the high cost of fuel, raw materials and transportation. As always, we will remain sharply focused for the balance of 2007 to manage those challenges and drive performance.”

TK: One of the things that stood out to me on the Del Monte's third quarter balance sheet is the fact that bananas accounted for 37% of sales but just 10.1% of profits for the third quarter. In contrast, "other fresh produce" accounted for 45% of third quarter sales and 69% of profits. Wall Street has wanted banana companies to diversify and both Fresh Del Monte and Chiquita are doing exactly that.

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Farm bill up next week

In his teleconference this morning, Sen. Tom Harkin said the farm bill will be on the floor of the Senate Monday next week, Tuesday at the latest. Harkin said he expects a full and vigorous debate on the floor, and said the discussions should take most of the week.

Harkin spent some time talking about the new ACR program, with reporters quizzing Harkin on how many growers would actually sign up for the program and thus generate savings to be spent on other priorities. Harkin left open the idea that Title I funds could be shifted to nutrition and conservation resources via hard caps on subsidies to program crop growers.

You get the idea that there are parts of this farm bill that Harkin himself would like to change on the floor of the Senate. It should be a wide open and intriguing debate next week.

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Import safety

The issue of consumer product/ import safety has not gone away. In fact, there is a press conference today that Rep. DeLauro and Speaker Nancy Pelosi will attend on the issue: Note these details:

Pelosi, Key Members to Hold News Conference on Consumer Product and Toy Safety

Washington, D.C. – Speaker Nancy Pelosi and Representatives Bobby Rush, Rosa DeLauro, Bart Stupak, and Diana DeGette will hold a news conference tomorrow, Tuesday, October 30, at 1:45 p.m. on Democratic efforts to promote consumer product and toy safety. Donald L. Mays from the Consumers Union (CU) will also give remarks. Members will discuss legislative efforts to address this issue in the upcoming weeks.

WHO: Speaker Nancy Pelosi
Chairman Bobby Rush (IL-1), Subcommittee on Commerce, Trade,
and Consumer Protection
Chairwoman Rosa DeLauro (CT-3), Subcommittee on Agriculture
Appropriations
Chairman Bart Stupak (MI-1), Subcommittee on Oversight and
Investigations
Vice Chair Diana DeGette (CO-1), Subcommittee on
Oversight and Investigations
Donald L. Mays, Consumers Union (CU)

WHAT: Press conference on Consumer Product and Toy Safety

WHEN: Tuesday, October 30 at 1:45 p.m.

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Noel Noel

This just slid across the inbox. Sounds like South Florida may be vulnerable from this tropical storm/turning hurricane.

State College, Pa. -- October 30, 2007 - AccuWeather.com reports that Tropical Storm Noel will parallel northern Cuba today before making a run towards South Florida. Additional strengthening is possible in the next 24 hours, potentially causing Noel to reach hurricane status.

After grazing the northern Cuban coast, Noel is expected to turn more northwestward towards the northwestern Bahamas. Wednesday night, Noel should pass virtually over Freeport on Grand Bahama Island.

A tropical storm watch may be issued for southeastern Florida later today as Noel is forecast to come within 80 miles of the shoreline. The coast will be spared of a direct hit thanks to an upper-level trough of low pressure sweeping in from the west. The trough will keep Noel east of the entire Eastern Seaboard.

While Noel will not make landfall, Florida will still be adversely affected by the storm. The tight pressure gradient between Noel and a strong area of high pressure to the north will cause winds to howl over the state, as well as the other beaches along the Southeast coast. The strongest winds, potentially reaching tropical-storm-force Wednesday, will blast South Florida.

Tropical Storm Warnings are in effect for northeastern Cuba, and the central and southeastern Bahamas. A Tropical Storm Warning and Hurricane Watch have been issued for the northwestern Bahamas.

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Lemon look in

Calif//Ariz lemons 10/1 to 10/29 - http://sheet.zoho.com


Pro*Act's market report stated Oct. 24 that demand exceeds lemon supplies on 95’s through 200’s for all shippers and that condition is expected to remain that way through October and into November. The market certainly reflects a premium over last year.

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