One year later

Look back in this blog's archives and you will see the very first entry was posted on this date a year ago. Fully one year and more than 1,500 posts later, Fresh Talk lives on. Thanks to The Packer for its investment of my time, Kingsburg for its sponsorship of the site, Fresh Talk readers from 89 countries (mainly one, admittedly), our growing stable of guest bloggers and the ever more active Fresh Produce Industry Discussion Group members who have made the site more interesting by their presence.

Obstruction alert

The Senate continues to struggle with a way to proceed on the farm bill. From the office of Sen. Tom Harkin comes this broadside against the Republicans:


Republicans Continue to Block Debate on the Farm Bill

As Senate Republicans continue on their record-setting pace for filibusters, they are finding new ways to shut down business in the Senate. The Farm Bill was brought to the floor last week with a request by Majority Leader Harry Reid that only relevant amendments be considered. The Republican response? They objected. Now, after more than a week of negotiating, Republicans are still blocking debate. Today, Republicans have objected 5 times to considering bipartisan and even Republican amendments. Actions speak louder than words, and sadly Republican actions clearly show that they are more interested in slowing progress than actually passing the Farm Bill.


WHEN THE BILL WAS INTRODUCED, REPUBLICANS OBJECTED TO LIMITING AMDENDMENTS TO THOSE RELEVANT TO THE FARM BILL

Senator Reid: Mr. President, I ask unanimous consent that amendments to HR 2419 be relevant to the bill or to the substitute amendment.

The Presiding Officer: Is there objection?

Senator Chambliss: Objection, Mr. President. [Senate Floor Proceedings, 11/6/07]


AFTER A WEEK OF NEGOTIATING, REPUBLICANS ARE STILL BLOCKING DEBATE – OBJECTING 5 TIMES TODAY

OBJECTION #1

Senator Harkin: Mr. President, I see my friend, Senator Chambliss, is on the floor. I think we both are very frustrated. I don’t think, I know we’re both very frustrated that we are stymied on this Farm Bill. We’re just not moving anywhere. But in hopes that maybe we can get something moving, I’m going to propound some Unanimous Consent requests to see if we can’t break ahead and move ahead on this. So, Mr. President, I would inquire of my colleague, Senator Chambliss, as to whether or not we can agree to a time limitation for debate with respect to the pending Dorgan-Grassley Amendment.

Therefore, I would ask Unanimous Consent that there be 60 minutes of debate prior to a vote in relation to the Dorgan Amendment number 3508 with the time equally divided and controlled in the usual form, that upon the yielding back of the time, the Senate vote in relation to the amendment, that no second-degree amendment be in order prior to the vote.

Presiding Officer: Is there objection?

Senator Chambliss: Mr. President?

Presiding Officer: The Senator from Georgia.

Senator Chambliss: Mr. President, unfortunately based upon the status of the amendments at this point in time – based upon the status of the amendments at this point in time and based upon the comments by the Majority Leader this morning, that this point in time, I’m going to have to object. [Senate Floor Proceedings, 11/14/07]


OBJECTION #2

Senator Harkin: Mr. President, I now ask unanimous consent that we proceed to the Lugar-Lautenberg amendment regarding farm program reform, that there be two hours of debate with respect to the amendment prior to a vote, that no amendments be in order to the amendment prior to the vote, that the time be equally divided and controlled in the usual form, that upon the use of yielding back of the time the Senate proceed to a vote in relation to the amendment.

Presiding Officer: Is there objection?

Senator Chambliss: Again, as much as I would love to accommodate the Chairman of the committee, based upon the status at this time and the comments of the Majority Leader this morning, I’ll have to object. [Senate Floor Proceedings, 11/14/07]


OBJECTION #3

Senator Harkin: In light of that objection, I would inquire whether we could enter into agreement on the Roberts Amendment Number 3448, that there be 90 minutes of debate with the time equally divided and controlled in the usual form, that upon the use of yielding back of time, Senate proceed to vote in relation to the – the Senate proceed to vote in the relation to the Amendment with no Second-Degree Amendment in order prior to the vote.

Presiding Officer: Is there objection?

Senator Chambliss: Mr. President?

Presiding Officer: The Senator from Georgia.

Senator Chambliss: Mr. President, again, based upon the process that we’re now involved in and the comments by the Majority Leader this morning relative to the Farm Bill, I’ll have to object. [Senate Floor Proceedings, 11/14/07]


OBJECTION #4

Senator Harkin: Well, Mr. President, let’s see if there could be agreement to consider the Stevens amendment number 3569. Again, that there be 60 minutes of debate prior to a vote in relation to the amendment, with no amendment in order to the amendment prior to the vote and that the time be equally divided and controlled in the usual form, that upon the use or yielding back of time, the Senate proceed to vote in relation to the Amendment.

Presiding Officer: Is there objection?

Senator Chambliss: Mr. President, once again based upon the process we’re now engaged in and the comments of the Majority Leader this morning, I’ll have to object. [Senate Floor Proceedings, 11/14/07]


OBJECTION #5

Senator Harkin: Mr. President, I would ask Unanimous Consent that we proceed to the Allard amendment number 3572, that there be 60 minutes of debate prior to a vote in relation to the amendment with the time equally divided and controlled in the usual form, with no second-degree amendment in order prior to the vote, that upon the use or yielding back of the time, the senate proceed to vote in relation to the amendment.

Presiding Officer: Is there objection?

Senator Chambliss: Mr. President, reserving the right to object.

Presiding Officer: The Senator from Georgia.

Senator Chambliss: I would say that there may be some common ground. Iwould ask Unanimous Consent that the Unanimous Consent request of the chairman be modified and that the pending amendments and motion to recommit be withdrawn and that the only amendments in order be the bipartisan list of first-degree amendments that i have sent to the desk and that all first-degree amendments be subject to relevant second-degree amendments.

Presiding Officer: Does the Senator so modify his request?

Senator Harkin: Mr. President, and I’m certain the Senator will have another unanimous consent request of his own very shortly, as he just ennunciated. Mr. President, have just profounded five requests for votes in relation to amendments that are relevant to the Farm Bill. As we heard, there was an objection to each one of those. [Senate Floor Proceedings, 11/14/07]

As Thanksgiving nears, the cupboards of millions are bare

From Rick Bella:
Annual USDA Report Finds 35.5 Million Hungry in America as Food Banks Struggle to Stock Shelves: Points Out Critical Need for a Strong Farm Bill

Today, as many of us are planning menus and deciding which holiday gatherings to attend, the United States Department of Agriculture released a sobering reminder that millions of Americans are making decisions between rent, utilities, medicine and the most basic necessity -- food. Its annual study of hunger in America indicates the number of people living at the margins of hunger, struggling to make ends meet and put food on the table, has increased from 35.1 to more than 35.5 million, including 12.6 million children. Remarks from America's Second Harvest CEO Vicki Escarra: "This study is just one more testament to why food banks and hungry Americans need Congress to pass a strong nutrition title in the Farm Bill."

More than one in ten Americans is hungry or at risk of hunger. Meanwhile, food banks across teh country are experiencing dramatic declines in food inventory. Many empty shelves were filled with food from the federal government just a short time ago. Surplus food donations, or bonus commodities, from USDA to food banks have declined more that 70 percent in the last three years due to a strong agriculture economy. In 2006, the value of this food support to food banks was down $175 million from 2003. Food banks are also struggling to meet the rising costs of transporting food and groceries.

A continued rise in food prices is also compounding the food shortage. In October, the Associated Press reported the U.S. is currently facing the highest rates of food inflation since 1990, 4.2 percent annually -- twice the rate of overall inflation. The report found that milk prices are up 18 percent since the start of the year; eggs cost 35 percent more than they did a year ago and the USDA estimates overall food price inflation will run 3 percent to 4 percent in 2008.

Strong Farm Bill is Essential for Millions
America's Second Harvest - The Nation's Network of foodbanks is hopeful that some help is on the way this year in the form of a strong nutrition title in the Farm Bill. Nutrition programs funded through the Farm Bill, such as The Food Stamp Program and the Emergency Food Assistance Program (TEFAP) are the first line of defense for millions of low - and fixed income Americans. Federal funding for these programs has not kept pace with need since the passage of the last Farm Bill in 2002 and significgant investments must be made to ensure that they are bolstered to reach the people that need them most. Adequately funding TEFAP at $250 million with the amount indexed for inflation in the Farm Bill this year will ensure that food banks can keep up with increasing demands for emergency food assistance. The House passed its version of the Farm Bill in late July with $4.3 billion in new investments for federal nutrition programs, and the Senate is debating the Farm Bill this week.

Hunger is one of the most solvable problems facing the U.S., yet it reaches into every community across the country. The holidays tend to amplify the problem, but the need is truly year round and millions of Americans are living day-to-day dependent on the generosity of strangers. You can help by your donation of food or funds. Visit www.secondharvest.org for more details or contact Rick Bella at 312-641-6507 or email rbella@secondharvest.org

No match delayed by SSA

From the United Fresh Produce Association comes word of a delay in the dreaded "no match letters." From United:




SSA Won’t Issue “No-Match” Letters in 2007

This week the Social Security Administration (SSA) announced that the agency will forgo issuing no-match letters to employers this year because of the pending lawsuit challenging the Homeland Security Department’s (DHS) worksite enforcement regulations. United Fresh, along with American Nursery & Landscape Association, U.S. Chamber of Commerce and several other associations, are parties to the lawsuit, which was filed in California in August 2007.
On Oct. 10, a federal judge in California granted a preliminary injunction barring SSA from sending out the no-match letters because it is being argued that the DHS did not follow proper procedures under the Administrative Procedures Act before threatening possible criminal and civil liability for employers that failed to respond to the letters. Under the Act, DHS is required to first analyze the impact of its regulations on businesses.
SSA spokesman Mark Hinkle stated that the SSA will not issue any employer no-match letters during 2007. However, SSA indicated that it will resume the issuance of no-match letters in 2008 and focus on wage reporting for 2007.
United Fresh will continue to track the administration’s actions and analyze the impact that they could have on produce businesses. For additional information regarding the SSA and DHS’s policy regarding “no-match” letters, visit the SSA website.

Conner in KC

Acting Secretary of Agriculture Chuck Conner is in Kansas City today, and several Vance editors including yours truly had a chance to visit with him prior to his speech before the National Association of Farm Broadcasters. Conner continues to state Administration objections to the farm bill, and says President Bush wants a farm bill he can sign. Besides the farm bill, questions to Conner about food safety, the pending citrus rule, the WIC food package rule and the status of free trade talks. Developing for The Packer....

"Republicans' goal is to kill the farm bill"

Sen. Dick Durbin is laying into the Republicans right now, criticizing Republicans for not limiting themselves to a reasonable number of amendments that pertain to the farm bill. Earlier compromises have broken down and the tone of Durbin's address seems to indicate there is much fence mending that needs to be done before the farm bill can proceed.

Shrink has shrunk

A new study from the Food Marketing Institute reports that "shrink" is down at supermarkets but organized crime activity and gift card fraud cases are up. I had no idea the extent that organized crime exists for the big box and supermarket retailers.

From the FMI news release:

Shrink in supermarkets declined for the third straight year, to a median of 1.52 percent of sales in 2006, as food retailers devoted more technology, training and employee vigilance to combat theft and other losses, according to the Food Marketing Institute (FMI) Supermarket Security and Loss Prevention 2007 report, which was released here today. The 2006 shrink figure is down from 1.69 percent of sales in 2005 and 2.00 percent in 2004.
At the same time, supermarkets continue to report increases in organized retail crime — thefts committed by sophisticated gangs that sweep baby formula, medicines and other expensive items off shelves and fence them through flea markets, pawn shops and Internet auction sites. Nearly six in 10 of the food retailers surveyed (59.6 percent) reported an increase in these crimes in 2006, about the same number in last year’s report (62.5 percent). The FBI estimates that these gangs steal up to $30 billion in products a year from all retailers.

Food retailers are taking action to thwart organized retail crime, according to the report. In fact, 93.6 of the loss prevention executives surveyed are allocating more resources to deter and detect it and to help law enforcement capture and prosecute the perpetrators. The measures include:
Provide more loss prevention training, cited by 52.3 percent.
Install more closed-circuit television (CCTV) cameras, 52.3 percent.
Track these crimes regionally or nationally, 50.0 percent.
Help develop legislation to address the problem, 47.8 percent.
Add security personnel, 36.4 percent, and systems, 31.8 percent.
Use product-marking technology to identify stolen products, 34.1 percent.
Retailers Seek a Federal Law to Fight Organized Retail Crime

Two FMI members, Safeway Inc. and Target Corp., presented the industry’s case to Congress for legislation to make organized retail crime a federal felony at an October 25 hearing of the House Judiciary Crime, Terrorism and Homeland Security Subcommittee.
Retailers spend an estimated $12 billion a year to fight retail theft, testified Target Vice President of Assets Protection Brad Brekke. For example, the company built forensic laboratories with latent fingerprint and other technologies to support investigations. Safeway created a whole division to fight these crimes throughout the U.S. and Canada.

“Other Top-Line Results
Shoplifting
Retailers apprehended 507 shoplifters per company in 2006, averaging 16 per store and $34 per incident.
The most frequently stolen items were meat, health and beauty care products, over-the-counter medicines, liquor and razor blades.
Robberies and Bad Checks
Two-thirds of companies reported at least one robbery, costing retailers an average of $8,891 per incident.
Retailers accepted more than $28 million in worthless checks, resulting in a median loss of $284,124 per company in 2006.

Employee Theft
Nearly 40 percent of all shrink was attributed to stealing by store employees in 2006, averaging 3.1 cases per store. Losses averaged $362 per store and $193 per incident. The checkstands and service departments continue to be the most vulnerable, accounting for a combined 75 percent of employee theft.

Gift Card Fraud on the Rise
The growth in gift cards is spawning new forms of fraud. Examples include tampering with bar codes to increase the value on stolen cards and buying gift cards with worthless checks or stolen credit cards, effectively laundering them.
Nearly all stores offer gift cards, and 76.7 percent of companies reported some type of fraud, theft or tampering in 2006 — up from 65.7 in 2005.

Methodology

The report was based on surveys from 47 companies operating 8,893 stores. It was made possible by the generous support of Checkpoint Systems, Inc. To purchase Supermarket Security and Loss Prevention 2007 (retailer/wholesaler FMI members $95, associate members $145, nonmembers $195), visit the FMI Store at www.fmi.org/store/.

Moving ahead

Lorelei DiSogra of United Fresh said it appears there is agreement between Republican and Democrats about how to handle amendments to the Senate farm bill, which should clear the way for votes on such amendments today. Stay tuned....

Down down under

The USDA's Foreign Agricultural Service reports that Australia's citrus outlook for 2008-09 has taken a hit because of the drought there. Valencia trees continue to be pulled in favor of navel orange plantings. Even so, fresh orange exports in 2008 may be down 10% from this year, the FAS said.
From the Nov. 5 FAS report:

At the time of writing this report, Australia is experiencing a severe and prolonged drought. Despite recent rainfall, dry conditions continue to affect citrus production in Australia providing poor soil moisture in crop growing areas and low levels of irrigation water reserves in the catchment areas. In the most extreme cases, some citrus producers will be focused on keeping trees alive until more water is available, rather than trying to maximize productivity. Industry reports have provided strategies for surviving severe drought conditions while the Federal government has made available drought assistance funding to drought affected farmers. Traditionally, Australia produced mostly Valencia oranges. However, over the past decade Valencia production has given way to Navel production with Navel oranges now consistently out-producing Valencia’s. Significant imports of frozen orange juice and fresh oranges have played a role in this industry restructure. The advent of drought and the sharp declines in water availability have seen the shift towards Navel production hasten. Advances in irrigation technology and industry restructure have also been hastened by the severity of the drought. Industry sources suggest that perhaps the bulk of the impact of the drought is yet to be experienced and are anticipating even more difficult conditions in 2008/09. The full effects of current tree removal, constrained fruit set and the exit from the industry of some
producers will likely not be realized until next year. Industry sources maintain some hope however that the industry can recover once current drought conditions cease. They cite removal of older trees and the hastened progression towards production technology as vital to the industry’s long term productivity. Post advises that anecdotal evidence suggests that planting of new trees during the current drought has not subsided, and has likely increased relative to bearing trees. The removal of older varieties and the fact that newly planted trees require less water to maintain has encouraged producers to replant. The Australian citrus industry currently has about 13 organizations providing leadership services and representation. Difficult conditions currently being experienced have given rise to debate regarding industry structure. The industry is currently conducting a series of grower meetings to discuss future options.

Fresh Oranges

Total orange production for CY 2008/09 is forecast at 350 thousand metric tones (TMT), down sharply on the revised estimate for the previous year. Industry sources advise that tree removal for 2007/08 could be as high as 12 percent and that as much as another four percent of trees have effectively been “decommissioned” for the 2008/09 season. In terms of the productivity of remaining trees, industry sources advice that “fruit set” has been affected by drought conditions and this will likely significantly lower yield potential. Further,extremely low levels of irrigation water reserves will likely constrain production for the foreseeable future even if climatic conditions return to near normal levels. Production for 2007/08 has been revised downwards to 419 TMT, an historically low level which has been driven by the smallest Valencia crop for 32 years. Post notes that falling Valencia production is a long-established trend in Australia that began over a decade ago. Drought conditions currently being experienced have hastened this decline.
Exports
Exports of Australian oranges in 2008/09 are forecast at 100 TMT, down from the revised estimate of the previous year. Post advises that despite the large production decline, the reduction in exports is expected to be proportionally lower. Industry sources are anticipating improved average quality in both 2007/08 and 2008/09. A smaller crop and the associated improved management capability, together with a continuous improvement in management practices, are expected to see noticeable improvements in average crop quality. Crop quality typically has a large impact on export volumes and so export volumes are not expected to decline as much as production.