Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Monday, December 3, 2007

High time in Hawaii

Andy Nelson of The Packer has this story about a proposed rule that would allow more irradiated tropical fruit varieties from Hawaii into the U.S.

Andy writes:

On Nov. 14, the U.S. Department of Agriculture announced its plans to open up mainland markets to irradiated mangosteens, dragon fruit, breadfruit, jackfruit, melon and fresh moringa pods grown in Hawaii, said spokeswoman Melissa O’Dell.The USDA will receive comments on the proposal until Jan. 14 before making its final decision, O’Dell said.In January, mangosteens will start coming into the U.S. in volume from Thailand, following a July USDA ruling.In 2006, the USDA gave the green light for irradiated mango shipments from India.Karen Caplan, president and chief executive officer of Los Angeles, Calif.-based Frieda's Inc., expects the approval process to be expedited, given the outrage among Hawaiian growers who have been trying to crack the U.S. market for years — only to see Thailand get approved ahead of them.“Once Thailand got approval, Hawaiian growers went ballistic,” she said. “I don’t know when fruit will begin coming in, but I would imagine that the USDA will work very quickly on this.”


From the Honolulu Star Bulletin of Nov. 21

"It's about time," said Bob Hamilton, a tropical fruit farmer and distributor on the Big Island. "We have mangosteen growing here. It's unfortunate that now Thailand can sell it on the mainland and we can't."
Hamilton said mangosteen from Central America is selling for more than $16 a pound in retail outlets in New York City. Farmers in Hawaii get about $6 a pound wholesale for mangosteen sold in local markets, he said.



TK: I was at Bob Hamilton's farm a couple of years ago and I can say he was anxious then about getting USDA approval for shipments of the mangosteen to the U.S. It is an episode like this one - when exporters from other countries seek and receive phyto approval ahead of a longstanding request from Hawaii - that stokes the ire of domestic growers who perceive the USDA seems more eager to facilitate imports than clear the path for U.S. produce.

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Fruits and Veggies - Are we selling hard enough?

Here is a link to a story by Meredith Cohn from The Baltimore Sun that I linked to in "TK Headlines" today. The article is headlined "Fruits, veggies a hard sell." We've seen this kind of story before, with the gist being "Mom said to eat your veggies, and we still aren't following her advice, decades later."

Cohn writes:

Yet, years after a concerted effort to boost consumption of healthful foods, Americans eat the same paltry amounts that they did in 1985, when the government first recommended two servings of fruit and three servings of vegetables daily.

But the story does look head on at uncomfortable truths, the soul-baring confessions of consumers who are semi guilt-ridden about food choices. Consider this excerpt:

"I try and go for the apple or pear, but believe me, I'd rather have the cookie," said Brentt Naylor, a 33-year-old Baltimore resident who not only shops at the hyper-health-conscious Whole Foods, but belongs to a community program that allows him a weekly bounty of locally grown produce. "You really have to set aside time to make vegetables tasty. It's taste and time."

Here is another....

And then there was Bryan Rupert, a 20-year-old ordering a pizza for dinner recently from a South Baltimore shop. He said he wouldn't know what to do with vegetables if he bought them, which he doesn't.

TK: Fruits and Veggies - More Matters campaign gets some ink in the story, as does the USDA fruit and vegetable program and pilot projects seeking to increase food stamp purchases of fruits and vegetables. Given the challenges of getting consumers to change, I wonder if it is time to aggressively promote a vegetarian message to baby boomer women. While most Americans won't go vegetarian, the very fact that the concept is promoted would raise the profile of fruits and veggies and create a buzz about an edgy marketing tack.

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Not total recall

The holes in the U.S. food safety system don't go overlooked in the office of Rep. Rosa DeLauro. Here is what she said about the USA Today article that examined the recovery rates of the USDA meat recalls.

Congresswoman Rosa L. DeLauro (Conn. -3) issued the following statement about the USA Today analysis, which drew attention to the fact that most meat recalled by the U.S. Department of Agriculture is never recovered. According to the analysis, for 73 meat recalls this year and last, recovery rates per recall averaged 44% and for the five recalls connected to food-borne illness outbreaks, the recovery rates per recall averaged 20%.

“That most recalled meat is never recovered, although frightening in its implications, is not a surprise. While the USA Today analysis of this long-standing problem emphasizes the importance of acting quickly when tainted food is discovered, it also highlights the desperate need to reform the food safety system to minimize or prevent these recalls and reduce the danger to the public of consuming contaminated meat that was subjected to a recall.

“The current voluntary recall system increases the risk of contaminated meat being consumed because companies are initially inclined to protect profits as opposed to ensuring the safety of their products. The ConAgra pot pie recall is a perfect example of this – the company, which initially refused to recall their products, blaming consumers for undercooking the pot pies, finally issued the recall days later after nearly 200 people in 31 states became ill.

“The USA Today article also notes that USDA is able to recover more recalled meat when the number of days between production and when problems are detected is minimal. However, if companies attempt to ignore problems after they are initially detected, it further reduces the chance of recovering tainted meat, and increases the risk of this meat being consumed by the public.”

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FDA alerts now available

Now the trade and consumers can receive alerts directly from the FDA. Here is the description of the new outreach:

FDA Launches E-mail Alert Subscription Service through Public Web site The U.S. Food and Drug Administration today announced a new e-mail service that alerts subscribers whenever information is updated on certain FDA Web pages. The service is free and available for a wide variety of FDA’s Web pages, including food safety protection, medical product approvals and consumer health information. “Being able to directly communicate with consumers, health care professionals and the regulated industry about the safety of our food supply and medical products is critical to FDA’s ongoing commitment to protecting the public health,” said Andrew C. von Eschenbach, M.D., Commissioner of Food and Drugs. “E-mail is the leading use of the Internet, and this service strengthens FDA’s ability to keep its audiences informed quickly and effectively.” To receive e-mail alerts, subscribers need only click on the red envelope icon located on participating Web pages. Each e-mail update includes a direct link to the FDA Web page that has been updated.Powered by GovDelivery, a private sector e-mail subscription management system used by several other federal agencies, the service allows subscribers the flexibility to personalize the information most important to them. A full list of currently available topics can be found at http://www.fda.gov/emaillist.html).

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South Africa - U.S.losing lustre

If it so tough to sell to the U.S. market, why does everyone want to do it? That's conundrum is worth considering in view of the fact that intelligence from South Africa indicates exporters there think the exchange rate and phytosanitary requirements make the U.S. market less than lucrative. The latest South African deciduous fruit report and outlook from the USDA's Foreign Agricultural Service is available here.

From the report:

The South African Ministry of Agriculture continues to support farmers with policies and to establish trade agreements with other governments to enable growers access to new markets. Statutory measures were updated to improve technical support through compulsory levies from growers. The recent statutory measure requiring all growers, exporters and traders to supply information on the quantity and price for deciduous fruit will enable the industry and all stakeholders to have concise information about the local supply chain. After deregulation of the state controlled markets through the Agricultural Product Marketing Act of 1996, it took some years to acquire close to accurate information because of fragmentation within the industry. By December this year, Chinese Fuji apples may be available in the local retailers and fruit markets because of a signed agreement between China and South Africa early this year. South Africa’s statistics for area planted are improving for apples, pears and table grapes, and updates are reflected at the PS&D tables appearing in this report below. The improvement is mainly because of newly established specific commodity forums that employs technical staff for annual tree census. The new statutory measure implemented this year that regulate records and returns relating to trees and production and marketing for both pomefruit and stonefruit through the Marketing Act of 1996, will also ensure accuracy for future statistics. The South African table grape industry (SATI) is now in its third year of operation as an independent industry after its separation from the Deciduous Fruit Producers Trust (DFPT). The industry, which is funded by its members, are setting up structures and programs to handle knowledge management, generic promotion, and market access for table grapes. The industry aims to develop into a competitive brand similar to the California tablegrapes Industry. The 2006/07 harvest for both apples and pears started on time, during the first week of December, and should end around November 30th. By week ending November 11, 2007 the apples and pear industry was in week 45 of both harvesting and exporting. The South African Pomefruit (apples and pears) Association expects the area planted to increase in 2008 because more wine grape farmers experienced losses and therefore may uproot the vines again to replant the fruit trees. Since 2004, the area planted for these fruit trees were uprooted and replaced with the vines for wine. South African farmers are doubtful that the United States is a lucrative market because of the costs involved in selling to that market such as: exchange rates, transportation costs, as well as the export sanitary and phytosanitary protocol that are considered difficult to comply with.

On trade.....

Total apple, pear, and tablegrape exports in MY 2006/07 are expected to increase by 3.9 percent to 697,600 MT, due to improved total production. Post forecasts MY 2008 apple and pear exports to remain the same as a year earlier at 280,000 MT and 132,000. Post forecast MY 2008 forecasts for tablegrape exports are at 287,500 MT, a 0.7 percent increase from MY 2007 because of expected increased demand. Post estimates MY 2007 apple exports at 280,000 MT, a 4.5-percent increase from the previous year. In 2005/06, apple exports totaled 267,863 MT. Major export destinations were the U.K. (38.8 percent), Malaysia (9.7 percent), and the Netherlands (6.1 percent). Post estimates MY 2007 pear exports at 132,000 MT, a 11.8-percent increase from the previous year. In MY 2006, pear exports totaled 118,107 MT. Major export destinations were the U.K. (20.3 percent), the Netherlands (20.1 percent), and Belgium (12.4 percent). Post estimates MY 2007 tablegrape exports at 285,600 MT, a 0.2-percent increase from the previous year. In MY 2006, tablegrape exports totaled 284,903 MT. Major export destinations were the Netherlands (27 percent), Canada (24 percent), and the U.K.(16.6 percent).

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Reporting from Santiago

Up after all? The Chile Fresh Deciduous Report was released by the USDA Foreign Agricultural Service in late November. The report states that despite challenges with the peso, production and exports of apples and grapes figure to be higher in 2008.
From the executive summary:

On apples:
The industry forecasts an expansion in fresh apple, table grape and peat production, as weather has been favorable in most growing areas. As a result exports of these selected fruits are also expected to expand in 2008. A smaller apple juice output is expected due to a reduced availability apple export rejects as a good quality apple harvest is forecasted.

On apples...

Although it is still early to predict production volume for the coming year, Chile's apple harvest for 2008 is forecasted to be larger than this year’s harvest, as weather conditions has been good in most growing areas. More than sufficient cold hours during last winter had a positive effect on budding, this will affect total production positively in quantity and quality of the production, as it was stressed by contacts in the industry. As a result of a good quality harvest, exports are expected to reach record figure of over 800,000 metric tons in 2008. As producers have been diversifying their orchards, during the last decade, by planting new and more productive varieties, i.e., Fuji, Gala, Jonathan, Braeburn, Pink Lady and Galaxies in replacement for the traditional varieties, such as Red Delicious and its variations (i.e., Richard Red, Starking, etc) and increasing density of their orchards, output in the coming years is expected to keep expanding. Red apple varieties constitute over 75 percent of total planting and output. The main green variety is Granny Smith, which is used both for fresh export (mainly to Europe and the United States) as well as for concentrated apple juice production.
A larger output together with low stocks of apples in the European Union explains the increase in total exports in 2007. For 2008 a stronger demand is expected, as production in the northern hemisphere has yet not recovered and exports are expected to expand further. Red apple varieties account for about two-thirds of exports, but sweet/sour varieties are increasing in share, while Chile's traditional varieties are losing ground. This trend is becoming more evident each year. Production and exports of new varieties, like Fuji and Pink Lady, are increasing significantly.


On grapes......

Poor weather conditions in some growing areas are the main reason for a slight fall in total production in 2007, when compared to the previous year. For 2008 an increase in total output is expected as weather during last winter has been good in most areas for grape production. Chile produces over 36 varieties of table grapes for export. Thompson Seedless, Flame Seedless and Ribier account for the bulk of production. Varieties like Red Globe, Superior Seedless, Crimson and Autumn Royal have increased significantly in the last few years, as most of the replanting has been with these varieties. Table Grapes are planted from Region III (Copiapo) to Region VII (Curico-Talca).
Table grape export volumes in 2007 fell as a smaller output was obtained. For 2008 a total production expansion is expected together with a good quality production which will result in
an export expansion. As in the past, table grapes are being imported during the off-season. A weaker dollar, would suggest that these imports could increase. However, transport costs remain high due to low volumes and there is also an ample supply of competing low priced
fruits available year around in Chile.


On pears......

As for other fresh fruit, weather has been favorable for pear production in most growing areas; as a result total output for 2008 is expected to be slightly larger than the previous year. The latest planting statistics published in the recently agricultural census show that total planted area to pears is slightly larger than our previous estimate. There are over 36 pear varieties grown in Chile. Packam's Triumph and Beurre Bosc make up over 60 percent of Chile's exports. Other important varieties in Chile are Abate Fetel, Coscia, Summer Bartlets and D’Anjou. Although production levels are not expected to change significantly, industry sources have indicated that exports could fall due to an increased competition from Argentina, Chile’s main competitor for pear exports, principally to the European Union, which is also Chile’s main export market. Close to 50 percent of exports are destined for the EU. As a result Chilean exports will depend on fluctuations in the Argentinean production. Additionally, due to increasing cost and lower returns for pear exports an increasing numbers of producers are selling their production to the local processing industries, according to industry sources.

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Farm bill optimism fading

The Specialty Crop Farm Bill Alliance is meeting again by teleconference at 11 a.m. Eastern time and no doubt will hear the latest on the status of Senate work toward proceeding with the farm bill debate. However, a quick survey of the agricultural trade press this morning reveals pessimism that a deal can get done this year.


From the Cattlenetwork.com this morning:

Although a few members of congress still express hope that the bill will be passed before the end of the year, a show of hands among the pundits, seers and political wonks says it won’t happen. The betting line is a new bill won’t pass until at least the first quarter of 2008. Failing that, you can cross it off the agenda until after the November election.


TK: Congress has been getting lower marks in public opinion surveys than President Bush, and that's saying something. The Senate can count on the fact that rural America and much of agriculture will be none too pleased if they fail to pass a new farm bill in 2007.

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