Bringing home the orange juice

There is much good for Florida in the latest spending bill, says Rep. Adam Putnam, R-Fla. From the office of Adam Putnam:

WASHINGTON, D.C. – Florida agriculture will benefit from new legislation passed this week, said Congressman Adam H. Putnam (R-Fla.), who worked to include the provisions.

“This session of Congress was very hectic at the end, and it was very touch and go for awhile, but it turned out to be a pretty good year for Florida agricultural research”, said Putnam. The benefits are in two bills Congress passed this week, the omnibus spending bill and energy legislation. The spending bill includes the following provisions:

Citrus Health Response Plan: The $35 million program will provide means for enhanced, control, detection, and survey, in addition to identifying minimum production standards to enhance the industry’s ability to produce fruit suitable for trade, protect the integrity of the citrus nursery certification program, and provide a mechanism by which citrus pests and diseases do not spread to other citrus-producing States.

Citrus Canker/Greening Research: $1.3 million will go toward the critical continuation and expansion of vital Citrus Canker and Greening research by the University of Florida (UF) Institute of Food and Agriculture Sciences (IFAS), through the Cooperative State Research Extension and Education Service (CSREES), to improve technologies for treatment and detection, methods of movement and containment, and means to control and eliminate these devastating diseases.

Citrus Waste Utilization: A research program to develop bioenergy from renewable sources such as citrus waste received $393,000.

Florida Renewable Energy Program: the University of Florida’s Florida Center for Renewable Chemicals and Fuel received $750,000 to advance the development of new alternative energy technologies.

In addition, the energy bill, which was signed into law earlier this week, includes a Renewable Fuel Standard that requires the annual use of a certain volume of renewables in transportation fuel. By 2022, 16 billion gallons would come from cellulosic biofuels, including those made from Florida-based feed-stock.

W.E. Coon

It was great to talk to Bill Coon today, as we exchanged holiday greetings and got caught up with family news this morning. Bill is always gracious to make a supportive comment about The Packer or my efforts with the blog.

Bill's call brings to mind an article I came across when doing some research about Bob Carey before my recent Q&A with the long time leader of PMA. Paul Campbell, former editor of The Packer, wrote this on June 24, 1996:

Bob Carey's retirement signals end of an era
Two months ago, Bill Coon retired from THE PACKER, and on July 1, Bob Carey will retire from the Produce Marketing Association. Thus, an era has ended.
It's out with the old, and in with the new, a natural occurrence. But don't forget the contributions these two men made to the produce industry. And don't forget the unique relationship that has existed between PMA and THE PACKER over the years.
PMA and THE PACKER grew up together -- the parallels in their progress and growth are remarkable. I joined THE PACKER in September 1966 and planned to work there a couple of years to ``get some journalistic experience.'' I stayed 18 years. I had worked only a month before attending my first convention -- the Produce Packaging Association meeting at the Palmer House Hotel in Chicago. Knowing nothing about the produce industry, conventions, airplanes or Chicago, it was quite a learning experience for me. I remember the exhibit hall was very small, and one could walk through the exhibits in a couple of minutes. At this time, both PMA and THE PACKER were searching for the keys to their future. Both knew they needed to change their approach, and they knew it had to do with retailing and marketing, but they hadn't quite put it all together yet.
PMA changed its name three or four times to reflect the marketing changes. A turning point for PMA was 1969. The organization had begun making a strong effort to get more retailers to join, and Chan Copps was only the second retailer -- and the first since Mal Ellison in 1962 -- to be president. Starting in 1969, the president of PMA was a retailer at least every other year, sometimes two years in a row.
It was about this time, too, that we started our face-to-face interviews with the outgoing PMA president each year. My first one was with Bob Callendar in Buffalo in 1970. I think I interviewed every president from then on until 1984.
In 1971, the PMA convention returned to Chicago, and it was at this convention that I started attending PMA board meetings. The reason for attending the board meetings was to gain insight into the industry and get ideas for future stories. I began to realize then the tremendous respect Bob Carey and the PMA board had for THE PACKER's publisher and vice president Jim Connell and Coon, and vice versa.
Even then, PMA planned its convention sites a few years in advance, and Connell was pushing hard for the association to come to Kansas City in 1975.
A lot of resistance existed among board members, which was understandable because Kansas City didn't have the appeal of a San Francisco or a New Orleans. They were concerned that having the meeting in Kansas City would hurt attendance. At the same time, realizing how much Connell had helped publicize and promote PMA, they didn't want to offend him.
I overheard Ralph Pinkerton, then with the California Avocado Board, say to Carey, ``Why don't we give Connell an award?'' ``What for?'' Carey asked.
``I don't know, but it's a lot easier than going to Kansas City,'' he replied.
In any event, the board finally did decide to come to Kansas City in 1975.
The Kansas City convention was a success. It also was the first year of the floral seminar, so this added a new and exciting element to the PMA convention. By the mid-1970s, PMA had obviously found its niche, which was to get retailers to join and come to the convention.
The program was stacked with retail-oriented speeches and material, and retailers were beginning to flock to the convention. The floral seminar each year also gave retailers another reason to convince their bosses of the benefits of PMA.
The 1970s brought an explosion of new produce items from the United States and around the world. No longer was the produce director at the chain stores considered a stepchild. His department now was the most important in the store. Suddenly, eating more fresh fruits and vegetables was the thing to do. Consumers became more nutrition-minded as experts advised them produce was healthy.
Certainly, some luck was involved in the boom at PMA and THE PACKER during the 1970s and early 1980s. On the other hand, the two organizations were prepared to capitalize on the situation.
Foodservice became more important to both organizations beginning in the mid-1970s, and eventually THE PACKER gave Produce Man of the Year awards to foodservice gurus Joe Stubbs of Sunkist and Joe Brennan of Marriott Corp.
As usual, and most importantly, the No. 1 thing the produce industry has going for it is that it offers good, healthful products. You can't beat that for a public relations tool.

Paul Campbell was the editor-in-chief of THE PACKER from 1972 to 1985 and was associate publisher from 1983 to 1985.



TK: Paul's thoughts about Bob Carey and Bill Coon certainly put into perspective their impact on both the organizations they led and the industry they influenced for so many years.

Poll Closed: Case Not Closed

The Fresh Talk poll was a real horse race this week. The question:

Would the industry benefit from a USDA generic promotion order, with mandatory assessments, for fresh produce?

Yes 8 (42%)
No 10 (52%)
Unsure (6%)


TK: So most believe a national generic promotion order would not benefit the industry. However, I would say the case is not yet closed. Could a promotion order be combined with a scheme for food safety oversight? I appreciate the input from those who find the idea less than stellar. Some believe relying on AMS would be a mistake, while others believe the market will provide a solution. Others say that mandatory assessments have been tested in courts and found wanting. Still, the industry needs to grapple with raising the profile of consumer messaging, and a national promotion order could do the trick.

Go to New Zealand and pick some apples

Labor shortages aren't unique to the U.S.. In fact other countries can lay claim to more pronounced shortages of farm workers. This link and another tells the story of the labor shortage in New Zealand. From the story in The Southland Times:

Summerfruit New Zealand chairman Basil Goodman said there were $35 million dollars of export cherries hanging on the region's trees but no one knew where to find the 3700 seasonal workers needed to pick them.

"And the situation does not look any brighter for summerfruit, apples or grapes," Mr Goodman said

TK: Now that a labor shortage has been declared in several fruit growing regions, backpackers can apply for changes in their visitor permit to allow them to do seasonal work. Even with a new government program to bring workers in form the Pacific Islands, backpackers will still be welcome to work the apple harvest in February. On a related note, here is the link to a recent USDA Foreign Agricultural Service report on New Zealand apples. A highlight about organics:

New Zealand apple exports are forecast to fall 7.6% to 270,000 tons in MY 2007/08 continuing a downward trend after reaching a peak of 364,554 tons (19.8m cartons) in MY 2003/04. Over the longer term, exports are expected to remain in a band between 215,000 to 325,000 tons (12 and 18 million cartons). Prices for the Braeburn variety, which accounts for approximately one third of total exports, deteriorated badly at the end of the season and overall pool prices paid by exporters to growers are likely to be well below the cost of production. One bright spot in the sector is organic production, which accounts for 10% of total planted area. Prices for organic apples were 2.5 times higher than for conventionally grown fruit in MY2005/06. However, margins slipped this past season as a result of increased organic production in South America. Along with organic apples, new varieties in short supply command good prices such as Jazz, Tentation, and the Pacific series.

Later.....

High prices for organic apples are a primary factor driving production. In MY2005/06, organic fruit returned between NZ $42.84 per carton (18kg) and $58.87 per carton depending on the variety compared with a range of $17.02 to $34.24 per carton for conventionally grown fruit. For the main varieties - Braeburn and Royal Gala – returns on the organic versions were 2.5 times higher than for the conventional variety per carton. On orchard operating costs are higher for organics but only on the order of 10 to 30%. On balance organic orchards in MY2005/06 were much more profitable. However, during the MY2006/07, prices for organic apples fell due largely to increased organic supplies from
South America.