Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, December 31, 2008

Dec. 31 deadline - GAP comments roll in

It is the last day the FDA is accepting comments on revisions to Good Agricultural Practices, and naturally the docket is overloaded with last day submissions. Check out the federal docket here.

So far, comments from PMA, United Fresh, California Citrus Quality Council, Association of Food and Drug Officials, Scott Horsfall, Chris Schlect, Russell Land, Florida Department of Agriculture and Consumer Services, the National Potato Council and James Gibbons.

Here is a link to a file I put together analyzing responses from various group about question #1 from the FDA, regarding ranking of risks in the revised GAPs/GMPs document.

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Looking back

The amazing thing about this "publish now" world of Fresh Talk is that the blog - and the companion Fresh Produce Industry Discussion Group - is developing a little bit of history. Specifically, there are more than two years of posts - 3,200 plus in number - since we started in November 2006. I notice when people are online that at least one in five is looking at Fresh Talk archives. While not in the old timey class of the "50 years ago" feature in some of your community papers, it's a start...

Here is a selection from this day in 2007.

New Year's resolution again

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Cup of cheer and other headlines

If turning the page to a new year can't make us optimistic, nothing will. Don't look for a pick me up in the following headlines, though....


2009: the year the economy changed your life And you thought 2008 was bad... this piece is not a cup of cheer we need for the new year.... by end of 2009, real unemployment rate predicted near the all time 1930s Depression high of 25% says one gloomy economist


Local food supplants organics and what's ahead for 2009
From the piece:

That fast food may not offer the best nutrition. But, sadly, some will ignore nutrition in favor of calories as money gets tighter.

I wouldn’t be surprised if a setback in healthy eating becomes the top food story of 2009.

Produce supplier saw recession coming From the Des Moines Register, some coverage of Brendan Comito, 41, chief operating officer of Capital City Fruit.

Two more stand trial in China milk scandal

At least six babies in China died this year and 294,000 fell ill after drinking milk laced with melamine, which is normally used to make plastic.

Colorado must plan for its water future
East slope v. west slope

Mexico's economic troubles grow


Is sustainability the worst example of official jargon? From coverage of the Centre for Policy Studies report on "newspeak"

Few words have become more heavily used or abused in government or corporate affairs than "sustainable". It now occupies a lofty position in the towering hierarchy of buzzwords. It is commonplace today to stick the word "sustainable" in front of almost anything, to talk of "sustainable development", "sustainable transport", "sustainable housing", "sustainable communities" and so on.

And more...

Companies now devote large sections of their ever-expanding annual reports to voluminous
jargon-ridden environmental reports and updates with impressive sounding statistics and targets. Annual reports ballooned to a colossal size as the credit crisis approached. But now shareholders and even ‘stake-holders’ may be thinking that perhaps it would have been better if more effort had been put into ensuring a business model that worked than that the canteen coffee cups were made from fibres from sustainable forests.

Five tips to help families eat right on a budget in 2009

Fresh vs. frozen rekindled.."Don't assume fresh is best." ?!??!

Agricultural Prices - USDA's December report

October home prices fall 18% in 20 metro areas

The 20-city index is down 23 percent from its 2006 peak. Fourteen of the 20 metropolitan areas showed record declines in the year ended in October.

Parents accused of killing with kindness New UK program aims to reach parents and modify their behavior so they scare their kids skinny. Graphic examples of children dying early from diabetes, heart disease and cancer will be publicized, say report.

Earthbound Farm to verify liquid organic fertilizer


Chile threatens to sue disappeared tricksters

Nebraska illegal immigration bill to include E-verify

Economy seen behind lagging behind immigration renewals Cost of renewals seen as factor

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Tuesday, December 30, 2008

Produce traceback - Is PTI good enough for reformers?

Doug Powell of the Food Safety Network finds this gem from the Center for Infectious Disease Research and Policy in Minnesota. This well written piece by Maryn McKenna explores what's ahead for the new Administration, beyond the not insignificant task of fixing the economy.

But simmering in the background is a substantial grassroots movement that is pressing the new administration to enact change within the government as well, at the U.S. Food and Drug Administration (FDA). And a key part of any reform may involve correcting the deficiencies in what is now a complex and fragmented system for tracing contaminated produce items to their source.


TK: the story goes on to examine the Salmonella Saintpaul outbreak, the "one step up and one step back" already in place and the Produce Traceability Initiative. Here is what the report said about PTI:


The initiative, which is voluntary and would roll out between 2009 and 2012, gives reformers some of what they seek: It establishes a universal code that follows produce wherever it goes in the system. But it labels produce only by case, not by individual item. And it does not establish a single database than can be queried in a single step in seconds. The produce industry resisted appeals for that, fearing it would place too great a financial burden on smaller producers. The industry chose instead to have the information on each step of a case's progress reside in the computers of the various businesses it moved through.

That may not be enough to bring produce traceability and food safety in line with a reform agenda. Several recent analyses of what needs to change at FDA insist that guaranteed rapid access to provenance information is the key piece needed to make trace-back work. In September, the GAO recommended that FDA be allowed to access information more directly in emergencies, both to identify suspect foods and to ascertain whether other foods processed in the same facility also pose a threat.

And last May, the Food Safety Research Consortium, a group of researchers from seven institutions who are funded by the Robert Wood Johnson Foundation, called for a fully accessible "network of networks" across the food safety system. "There is no effective system for ensuring rapid government access to critical trace-back information," Michael Taylor, a research professor of health policy at George Washington University and the project's leader, testified in July.

TK: The story concludes with the thought that food safety reform may have to wait in line behind a host of economic issues that Obama must address. But that won't diminish the need, experts say, for a sleeker food safety system that can deal with multi-state foodborne illness outbreaks.










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Tom Mathison- A legend remembered

Above: Tom in earlier days in a pear orchard



Above: Tom and West Mathison
The passing of Tom Mathison is a sad event for the produce industry because he still had so much passion for his company and fruit marketing. I had a chance to visit with Roger Pepperl, West Mathison and Desmond O'Rourke yesterday about Tom, and the themes of optimism, innovation, problem solving and relationship building came through in those conversations.

Lee Peters of Fowler Farms writes in an email today:

I can think of no other person in the apple industry that has made such a profound impact on all of his competitors other than Tom Mathison. He has been respected by all and will be greatly missed.


Feel free to add comments to this post or shoot me an email at tkarst@thepacker.com with your observations about Tom Mathison..

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Irradiating leafy greens

Find the link here to a story about irradiating leafy greens included in one of Doug Powell's recent Food Safety Network updates. From the story:


“The problem the leafy green industry faces is there is absolutely no kill step in the process of cleaning, rinsing and bagging the product. There is nothing they can do,” explained Peter Schoch, Rayfresh’s CEO. The potential for widespread contamination is compounded by the mingling of greens from different sources in processing plants, he said.

Food irradiation – which does not in any way render food radioactive – today uses gamma rays from radioactive material or machine-generated electron beams, Schoch said, both of which tend to cause cellular damage and visually degrade food. X-rays promise a gentler, more scalable solution. Rayfresh recently landed its first contract to build an X-ray machine to treat ground beef for Omaha Steaks, which inspected the prototype at MSU. The university’s validation work was pivotal in winning that first order, Schoch said.

“We also have very significant interest from people who produce and use food service lettuce,” he added, a product connected to a recent E. coli illness outbreak in Michigan and other states.



TK: Apparently Rayfresh uses a technology that doesn't require as much irradiation energy as competing methods, meaning it may be more adaptable to use at food manufacturing plants rather than special secure facilities. We'll follow with interest...

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Monday, December 29, 2008

Retail Promotions - New Year's resolutions

Here is a quick rundown of fresh produce ads for the upcoming week.


Wal Mart - Jan. 4 to Jan. 10
Fresh tomatoes: $1.50/lb
Fresh clementines: $3.98/3-pound bag


Hy-Vee Dec. 31-Jan. 6
Disney Garden oranges: .69/lb
Hy-Vee Garden salad: .68/1 lb package


Price Chopper - Dec. 31 to Jan. 6
Dole Iceberg mix: 16 oz/69 cents
Chilean Bing cherries; $2.99/lg

Hen House - Dec. 31 to Jan. 6
Blackberries: $2.99/15 oz
Blueberries: $3.99/18 oz
Cherries: $2.99/lb

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CSAs - a new food economy?

How wide and deep will the growth of Community Supported Agriculture be? This story, just published in The Franklin News online, explores the topic. From the story:


A new food economy that focuses on buying and eating locally is changing the way Americans shop for their food, according to a professor of agricultural economics.

"For many people, local (food) has become more important than organic," said John Ikerd, a professor at the University of Missouri. "These are people who show a strong preference for foods that are locally grown, seasonally available and produced without unnecessary additives or preservatives,"ᅠIkerd told the recent Virginia Farm Bureau convention. The local movement represents an evolution toward a new American food economy, he said. The new food economy provides opportunities for American and Virginia farmers, particularly those with small farms that have found it difficult to compete in today's global markets, Ikerd said. Beyond roadside stands and farmers' markets, he said, the local food movement has boosted the use of community-supported agriculture systems (CSA). Current estimates range from 1,500 to 2,000 CSAs nationwide.


TK: "Changing the way Americans shop for their food" may be a reach, but local food will remain a hot button consumer issue for 2009. More supermarkets and restaurants will attempt to source local food, while consumers who are willing want to work and pay a little more may try the CSA route. Vulnerabilities could be the short attention span of consumers, the definition of local and how local farms fit into the grid of Good Agricultural Practices/sustainability.

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Recession no help to immigration reform - Fresh Talk poll

The latest Fresh Talk poll was largely ignored by our readers, who obviously were distracted by holiday activities. Nevertheless, the poll shows no optimism for comprehensive immigration reform in view of our lagging economy. The results:



What impact will the recession have on the quest for comprehensive immigration reform?
Help
2 (33%)
Hurt
4 (66%)
No effect
0 (0%)


Votes so far: 6
Poll closed

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GAPs - A threat to small and midsize farms

Here is a comment submitted for the rulemaking related to GAPs for fruits and vegetables. As the comment indicates, there is concern about the impact of GAPs going forward relative to the sustainability of small and mid-size farms...


There is not doubt that food safety is of paramount importance to Compass Group.

At the same time, I am concerned that the proposed GAP standards are not scale neutral and may undermined the future for small and midsize family farms, especially who have adopted environmentally sound production practices. As they stand, the standards encourage adverse environmental impacts (e.g. farmers tearing out buffer strips to reduce wildlife habitat and adding toxic agents to waterways to reduce the number of frogs that might jump into their fields). They also have the potential to further concentrate production in the hands of a diminishing number of very large players, thereby amplifying the scope and magnitude of the problem when food safety problems occur.

As a major buyer we are committed to grow our Buy Local purchasing initiative that would include the support of regional family farms where we do business. Our first preference is be to partner with farms who have adopted environmentally sound production practices. I would like to see a regulatory framework that actually achieves real food safety without creating barriers for small and mid-size growers and without undoing years of sustainable practices.

Marc Zammit, Vice President Corporate Sustainability Initiatives, Compass Group

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Sunday, December 28, 2008

Leftover pecan pie and top headlines of Dec. 29

The soon coming end of the holiday break is palpable, with our oldest already heading back to Washington state and our other two kids leaving at the end of this week. The time has been a mixture of gift giving, festive holiday meals, scrabble games, lots of togetherness and leftover pecan pie. In the end, it was a fun and memorable time, though not free of the typical relationship tensions and newly felt concessions to the reality of a more frugal Christmas. Now, back to the world of produce and politics, of recession and retailers, of apples and asparagus.

Organic farms unknowingly used synthetic fertilizer Big story from the Sacramento Bee about company that sold organic fertilizer that was spiked with a synthetic version. The company controlled about a third of the market in 2006, story says. No farm expected to lose organic certification, new rumblings whether other fertilizer brands sold were also spiked

Rough year for farmers Coverage from southwest Michigan

Employers busted by Ariz. hiring law: 0 so far landmark law difficult to enforce

USDA office of ecosystem services to facilitate future carbon trading to mitigate climate change

Homegrown food trendy When times are tough, the tough start vegetable gardening.

Coke rejects FDA regulation on labeling Issue of the word "plus" on diet coke product that has vitamins and minerals

Food labels made easy Chicago Trib story about reading food labels quickly, including a reference to the 5 and 20 rule.


DHS sued over e-verify U.S. Chamber of Commerce and others sue DHS because E-Verify program, by statute, is meant to be voluntary for companies...

State wage laws also protecting illegal workers Story about "Fish man" in Boston who sued supermarket for overtime he was never paid and won the case, despite his status. From the story:

At Super 88, the fish man said, he was paid both by check and in cash. The check made it appear that he worked normal hours and was paid overtime. In reality, he worked 14-hour shifts six days a week - for a flat rate of $6 an hour. The cash made up the difference.

Recession slices into Vegas
October stats show lower numbers of visitors, hotel occupancy and conventions.

Biodiesel project in Chile
First commercial cultivation of jatropha trees in Chile, to produce oil for biodiesel.

25th murder of year for Salinas a record for the city

Mexican officer accused of working with cartels

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Saturday, December 27, 2008

How much would you pay for a hass avocado?

I was scanning through my emails and found a digest email from one of the discussion groups I belong to - this one about food and cooking. Here is the text of the opening salvo, with a question from Andy:


My favorite produce market laid an egg! They priced Hass avocados at $1.30/ea. where only two weeks ago they were their usual $0.80/ea.

Oh well. I have grapes!

How much would YOU pay for a Hass avocado?


Thus started a barrage of response from the discussion group members. Here are a few:

From Tammy:


I think I've paid as much as $1.50. I had a hankering, what can I tell ya?



From Omelet


No more than $.50 each, max. They are often on sale 2 to 3 for $1.00.

Any higher than that, I simply don't buy them.

I can live without avocados out of season.


Notbob responds:


Where the heck you at? Chile? Are you sure they are Hass 'cados? If so, you should be wholesaling them to the rest of the country! ;)


Carol writes:

I only buy them when they're under a dollar each, which isn't very > often. The current price here is $1.49 each. Too rich for my blood.



Peter writes:


If I saw Hass avocados for $1.30 I would jump all over them. $2 is a good price here (North Carolina).



Boron says:


Trader Joe's was selling guacamole "kits," that had two guacs, an onion, a tomato, some garlic and a jalapeno. $2.49 for the lot.

Great value. We were getting them 3-4 times a week when they had them.


Andy responds again:


The supermarket across the street from the produce market sells small Hass for $2.00/ea. They've been priced that high forever. After pitted there's probably only two or three tablespoons of edible avo. The BUMS!!!



TK: Interesting exchange about avocados, and how different consumers perceive the value sweet spot (in addition to other issues such as pit size, fresh guac vs. process, Calif. v. Mexican supply, etc.. For example, Andy said the more expensive ripened avocados were "priced to rot" - "not bad if you need guacamole tonight, but..." An interesting exchange about consumer perceptions of value and more proof about the need for produce marketers and retailers to engage and educate consumers.

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Friday, December 26, 2008

The day after Christmas and top headlines

Here is hoping that all Fresh Talk readers who celebrated Christmas found reason to be joyful, whether it was in the quiet hush of a candle light service, or in the joyful noise of kitchen talk before Christmas dinner, or the heartfelt expressions of love and thanksgiving that always should be part of our gathering together as families. It was all of those things to me this year.

Here are some top headlines related to our world of produce and the world at large as we have been otherwise engaged:


A safer seasonal feast? From Natural News, words of caution about fruits and vegetables... you may not want to read if you have blood pressure issues

McDonald's in Japan pays 1,000 to stand in line
Golden Arches admits it paid crowd, apparently to to create buzz for release of quarter pounder burger..Tsk, tsk

Japan's recession and deflation worries At least Wii is doing well.....

Getting immigration right
NYT edit calls for change from Bush immigration policies

How to fix the California budget SF Chronicle columnists says consider this solution:
If we added back 19 cents in taxes for every gallon of gasoline, we'd raise $3.4 billion, and a gallon of gas would still cost less than $2.

Organic farmers and sustainability
Letters to the editor on UK Times Online. One offers: could it be that sustainability and profitability are related? Another says it is high time for biotech to be embraced rather than the moving the goalposts for organic....

Black women are shrinking fast food and obesity contribute, says researcher

Mortgage rates drop to historic lows

Fresh and Easy delays northern Calif. expansion
the economy and business model both to blame, say experts


Fast food joints as predictor of student health
Less healthy kids when their school is close to fast food restaurants

Has global stag deflation arrived?
Roubini's take: downside risks remains for equities, corporate bonds, commodities, housing and emerging market asset classes... but the Wii is safe.

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Wednesday, December 24, 2008

Food policy advocates invest hope in Obama


Packer Managing Editor Fred Wilkinson here.
Get a load of President-elect Broccoli Obama, or is it Barack Obroccoli?


An article in The New York Times looks at how various food policy reform advocates have high hopes the incoming administration of President-elect Barack Obama will implement changes in areas from school lunch nutrition standards to treatment of farm animals.


Like many Obama voters, according to the article, these food policy reform dreamers may have read more into the Obama campaign's "change" mantra than may actually be there:



"Although Mr. Obama has proposed changes in the nation’s farm and rural policies and emphasizes the connection between diet and health, there is nothing to indicate he has a special interest in a radical makeover of the way food is grown and sold."


But, the report continues, U.S. consumers' tastes and expectations regarding food and diet have changed, and the new president could signal a new direction:



"Still, the dream endures. To advocates who have watched scattered calls for changes in food policy gather political and popular momentum, Mr. Obama looks like their kind of president. Not only does he seem to possess a more-sophisticated palate than some of his recent predecessors, but he will also take office in an age when organic food is mainstream, cooking competitions are among the top-rated TV shows and books calling for an overhaul in the American food system are best sellers."

For a decidedly less journalistic take on what Obama's presidency may mean for food policy, check out this blog http://obamafoodorama.blogspot.com/.

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Dec. 24 - Safely ensconced and top headlines

All the family is home and safely ensconced in warm confines of home. One last attempt at top fresh produce headlines before Christmas holiday....


First Chilean fruit shipment reaches Delaware port JOC reports

The year’s first shipment of winter fruit from Chile called the Port of Wilmington, Del., onboard Pacific Seaways’ chartered reefer vessel M/V Royal Klipper on Dec. 19.

Last season the port handled 150,000 pallets of Chilean fruit with a retail value of $600 million for distribution that ranged north to Canada’s maritime provinces and west to the Mississippi River.


Targeting obesity along side hunger
Coverage from The Washington Post

But with hunger and obesity reaching unprecedented levels, some anti-hunger activists are beginning to soften their stance. According to a report by the Partnership for America's Economic Success, toddlers whose families have gone hungry are three to four times as likely to be obese. If the current recession resembles past downturns, the independent Center on Budget and Policy Priorities predicts, the number of Americans in poverty could rise by as many as 10 million, driving up obesity, diabetes and cardiovascular disease.

"It was a very slow and difficult transition for me and my organization," said Kenneth Hecht, executive director of California Food Policy Advocates, a Los Angeles-based anti-hunger organization. "What we wanted to do was get more calories to people. Now we find it isn't more calories. It's more of the right calories."

To that end, the organization lobbied for a bill that would create incentives for recipients of food stamps to purchase healthful food. Gov. Arnold Schwarzenegger (R) signed the bill into law in 2006, but the program never received funding.

The debate in California attracted national attention, however. In the 2008 farm bill, Congress allocated $20 million for a pilot program to explore how to create incentives to purchase fruits, vegetables or other healthful foods in order to improve the diets of food stamp recipients and potentially reduce obesity. Several nonprofit groups and foundations are experimenting with similar incentives.



FDA changes approach to third party inspections FDA says it will abandon random inspections in favor of looking at high risk facilities. Note this paragraph from Federal Times

FDA will also improve food safety by working more closely with the private sector — but will not turn over inspections to private companies, he said.
“We’re not in the business of contracting out FDA inspections,” he said.
Instead, the agency wants to take advantage of the private inspection data that many companies already collect. Major food retailers, for example, require their produce suppliers to meet certain standards, and they inspect those suppliers regularly. Acheson said FDA could use that information to shape its high-risk list.
FDA is working on a pilot program with several major shrimp producers. The companies will send FDA information about how they certify suppliers; Acheson said the agency would periodically send its own inspectors to “look over their shoulders.”

TK: How exactly does FDA want to utilize data from private third party inspectors to create its "high-risk" list? Surely, such a strategy would compromise the relationships between third party auditors and their customers...

The Guacamole crisis How the water crisis is hurting California avocado growers

Groups sues to block use of E-Verify to screen out illegal workers Lawsuit filed against Homeland Security Secretary Michael Chertoff by Society for Human Resource Management, the U.S. Chamber of Commerce, the Associated Builers and Contractors Inc., the American Council on International Personnel and the HR Policy Association.

Sunrise Farms sprouts recalled for salmonella contamination
Routine food safety tests conducted on the sprouts by the Wisconsin Department of Agriculture turned up positive for salmonella, said the Wisconsin AG Connection. The Capital Times reported that none of Sunrise Farms’ other sprout mixes are included in this recall and that, to date, there have not been any reports of illness according to the Health Department.

2008 in review: Salmonella outbreak has nation fearing tomatoes
Another top of the chart rating for salmonella outbreak in review of top 2008 news

Britain's slide toward recession accelerates
GDP falls by 0.6 in third quarter, largest drop in 18 years.

Is a new food policy on Obama's list
NYT coverage Foodies can hope, but....

Although Mr. Obama has proposed changes in the nation’s farm and rural policies and emphasizes the connection between diet and health, there is nothing to indicate he has a special interest in a radical makeover of the way food is grown and sold.


Wal-Mart labor settlement: preemptive strike against unionization

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Tuesday, December 23, 2008

Chat - Patrick Delaney of United Fresh


Dec. 23 chat with Patrick Delaney, communications manager at United Fresh:



1:27 PM me: Thanks again for being available for a Fresh Talk chat. for starters tell us about your job with United and what you do during a typical day...
1:28 PM patrick.n.delaney: Thanks for having me. A typical day for me starts with a combing of the top news stories pertaining to our work here in Washington, and our member work throughout the US and internationally. I try to break down the news coverage by hard news, editorial and blogs, divided between our different focus areas.
1:30 PM From there I take a broad look at the media outreach plans for out various initiatives, and either pitch stories or field calls for each effort.
me: interesting - you are no stranger to google alerts as well, no doubt
1:31 PM patrick.n.delaney: With our 2009 Convention in Las Vegas around the corner, we're currently concentrating on a great deal of print work, so I find myself editing more than usual, which is fine by me.
Absolutely. The Google Alert is a real lifesaver, and budget saver when compared to bigger clip services
me: What's your background - where did you grow up and go to school, that type of thing?
1:34 PM patrick.n.delaney: My background is in radio, actually. I got my start on air in Baldwin City, Kansas at a college radio station. From there, I moved back to Kansas City, where I'm from originally, and worked with several of the stations there. After moving to Washington in 2004, I shifted off-air to the promotions and marketing side, working as a development contractor in public radio, then with Clear Channel as a promotions coordinator while I finished my degree.
1:35 PM Before joining United Fresh, I worked in creative design and research for a small public relations firm in Bethesda, Md. handling project work and radio promotional campaigns for Procter & Gamble, Unilever, General Motors, British Petroleum and a few others.
1:36 PM me: That's quite a background... Do you see some podcasting in your future for United..and what do you like about United Fresh and working with the produdce industry?
1:37 PM patrick.n.delaney: I do love radio, but it's something that I enjoy much more now that I'm on the outside looking in, and having the opportunity to work WITH, rather than work FOR.
1:39 PM Podcasting is a really unique step in a great direction for communications, especially for member service organizations, and I would love to bring that type of exposure to United Fresh. At my last post, a colleague of mine put together a series of podcasts on pet health for a veterinary association here in town, and was met with some fantastic results.
1:40 PM It really is the results that speak so highly of podcasting. I feel that when viewed from a traditional media standpoint, the podcast can seem tricky or overinvolved, but if you really break it down, it's no different than a simple audio recording.
1:41 PM Podcasts would allow an organization like ours to push out critical information on a whole host of issues, engaging our members in feedback at the same time, so it's definitely something that I am interested in.
1:42 PM me: true..I need to get my arms around the podcasting concept a little better - I think it can serve an audience, providing there is enough critical mass to justify the work...
1:43 PM patrick.n.delaney: That is the tricky part, convincing the audience that simply because it's called a "podcast" doesn't mean that they have to jump through the hoops of downloading it, transferring it to an mp3 player, etc...
rather they can listen from their desktops at work or laptops at home.
1:44 PM The sangs lie in the perception, rather than in the actual function of the podcast,
snags, sorry.
me: i think technology ... as in Webinars, Webcasts, etc., will also be a part of future trade communications, both from media and of course associations
1:46 PM patrick.n.delaney: Absolutely. The industry is modernizing, and to keep up, we've got to modernize with it. As for work here at United, I've been amazed at the involvement I've had with all of our publics. From members, to press, to our Board.
1:47 PM me: i'll try the old question...what do you like best about United and what is the most challenging part of your job?
1:49 PM patrick.n.delaney: I have colleagues at large PR firms that have years of tenure, but zero client interaction, making it extremely hard for them to focus on the end goals of their respective campaigns. The best thing about being here at United Fresh is the fact that there's never a doubt who and what we're working for. Our members and our board have been eager and willing to help me acclimate to a new industry, and excited to see what I can bring to the Association.
1:52 PM me: good point...you are never far from member interaction
1:53 PM patrick.n.delaney: The most challenging part of the job here is finding the time in the day to publicize everything we want to publicize. At previous posts I've been confronted with the problem of trying to promote the unpromotable. That is truly not the case here, and from the convention to our member programs to our work with the school fruit and vegetable snack programs and beyond, there is always another press release to write or member alert to push out. We're not lacking in content by any means!
1:54 PM Traffic is the other difficult part of the job. DC isn't the place for a leisurely drive.
1:55 PM me: I appreciate your time but I never like to keep people too long in chat mode lest they won't come back. Good to visit with you and feel free to be a guest Fresh Talk blogger or guest again for a Fresh Talk chat. Thanks Patrick.
patrick.n.delaney: Excellent, Tom, thanks!

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Retail Market Share - 2007

Luis of the Fresh Produce Industry Discussion Group passes on this data on U.S. retail market share. How will the economic challenges impact the market share in 2009 and beyond? More consolidation perhaps, with Wal-Mart to grow ever larger and the middle and upper end market concepts under pressure.

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Dec. 23 - Waiting on the weather and top headlines

We have our son flying in from Portland today (which just got about a foot of snow), so we - along with millions of others - are watching the skies today. I think of a sign I saw on MNF at the Bears-Packers game as the masses huddled in the frigid cold. Al Gore: global warming?

Here are some top headlines today:

Organic farming not ready for prime time
From the Southeast Farm Press

I’d like to see Pennsylvania organic methods applied to a few pest-infested hillsides in the Southeast. The fellow from Rodale said weeds in organic cropping are controlled with a roller/crimper device which flattens weeds into a mat of residue rather than killing them. A special planter finds enough dirt to plant a seed.

Sustainability is agriculture's new sizzle
Coverage of wine industry sustainability efforts

Commercial real estate developers look for bailout as massive debt looms


The amount of new commercial mortgage-backed securities -- loans that are sliced, packaged and sold as bonds -- fell from $200 billion in 2007 to only $12 billion in the first six months of the year, Wechsler said. "We've gone from 55 miles per hour to zero," he said.

Fresh and Easy eases off in northern California
Coverage from The Packer

Ag secretary can't walk away from our valley
Edit from The Modesto Bee

A focus on better nutrition is also an economic opportunity for valley farmers. Better nutrition is often as simple as eating more fruits and vegetables, and who knows more about fruits and vegetables than valley growers? Thus a push for better nutrition could fuel a move toward a more sustainable economic environment for the valley's farmers.


8 million foreclosures forecast through 2012

Further, though mortgage walkaways have been important, the disease hasn’t infected the general population. However, should the downward spiral in home prices, neighborhood condition and equity deterioration continue, more and more mainstream borrowers are likely to walk away from their homes. .... That is, the deeper the foreclosure crisis penetrates into the gene pool, the greater the percentage of American consumers with impaired credit, and therefore limited ability to access credit. Therefore, foreclosures aren’t only a housing-related phenomenon and should foreclosures spread, a large percentage of of the population could suffer impaired credit, which in turn would hurt credit availability.


Record settlement in wake of IFCO raid AP coverage of IFCO case

Newspapers adapt to social media


Kansas lawmakers to revisit immigration issue


Mexico cuts direct investment forecast $17 to $18 billion in 2008 down from $23 billion last year

Ohio food co-op raid sparks court case
Retail store wasn't complying with state law requiring license, but co-op says state unlawfully seized records

Flu shows resistance to flu drug

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India fresh fruit market - USDA FAS

Go here for a recent USDA FAS report on India's fresh fruit sector. From the report:


India is a net exporter of fresh fruits with exports primarily dominated by mangoes and grapes (See anexure V for more details). Bangladesh, Nepal, the Middle East and several EU countries are the major export destinations for Indian mangoes and grapes. Indian fresh fruit imports of 77,450 tons during IFY 2007-08 were just 0.12 percent of total fruit production in India. However, fresh fruit imports registered a significant 826 percent increase from IFY 2000-01 to IFY 2007/08. Unlike exports, more than 85 percent of total Indian fruit imports are dominated by temperate fruits. Imports of most fresh fruits in 2007- 08 have been trending upward (21 percent increase than the previous year) and the growing middle income population and expanding organized retail are expected to continue driving increased imports. However, during the current year (2008/09) the rupee has depreciated against the USD, raising the cost of imports. If the trend con nues further, the impact is expected to reduce total annual fresh fruit imports for the current year.

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Monday, December 22, 2008

Dec. 22 top headlines

Be sure to check out The Packer's coverage (Don Schrack) of the Rabobank 2009 North American Food and Agribusiness Outlook. Among the nuggets:

“With this economic downturn, we may see a shift towards whole commodities or even frozen produce rather than fresh-cut,” Rijke said. “Fresh-cut is more expensive, and I think price will become more of a limiting factor in 2009.”

Other top headlines snatched from the Web this morning:

Fruits and vegetables a tasty ticket to a better life
Well written piece published in Alaska

Crispy Green joins forces with PBH
Freeze dried....is it wrong of me to think that "fresh is best?"

Editorial: childhood obesity Fort Worth Star-Telegram offer fruit and vegetable friendly editorial, reference to Aramark's Cool Caf program....

IFCO settlement announced
From a press release, IFCO has agreed to pay $20.7 million in civil forfietures and penalties over four years, making this the largest corporate settlement in a work site enforcement case to date. This case related to a government investigation of IFCO in in February 2005 that illegal alien laborers at the Albany IFCO plant were observed ripping up their W-2 forms. ICE agents eventually conducted a work site enforcement actin at 40 plnats in 26 states that netted 1,182 illegal aliens at those plants.

Bending the organic rules in the UK Coverage from UK Times online that says organic farmers have asked the UK government for an easing of orgranic standards "in an attempt to survive the recession." As with consumers bracing for a recession and retreating from organic food, the instinct for self preservation among organic growers kicks in. From the story:

The drastic move by organisations including the Soil Association follows a dip in sales of organic produce and fears for the future of Britain's 5,000 organic farmers.

Sales of organic food slumped 10 per cent in the 12 weeks up to the end of November, according to the latest figures from the consumer researchers TNS. Overall food sales over the same period were up 6 per cent.

Organic certification bodies, including the Soil Association, the country's biggest campaigner for organic food and farming, asked Hilary Benn, the Rural Affairs Secretary, last week for approval to relax the rules for an indefinite period. They want their members to be able to use conventional animal feed instead of organic food concentrate, which costs double.

Limiting unhealthy snacks boosts fruit, vegetable consumption South Carolina study says...

Farm bank thrives amid crisis

Bill and Melinda Gates Foundation seek USDA assessment of local food sourcing in Africa for school feeding programs


Homeland Security: Employers can't use expired documents


Target's customers revisiting Wal-Mart

Spain moves to restrict immigration as economy slows


Japan's export industries suffer

Recession shock shakes oil market


Chile's farming families


Chile retailer stock jumps on Wal-Mart offer

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You can't shrink your way to prosperity

I mentioned last week that Steve Lutz and I visited about October retail numbers in the produce department. Steve shared that overall produce sales in October (4 weeks ending Oct. 25, precisely) were up 3.8% in volume but off 4.8% in volume compared with year ago numbers.

Among the laggards: Specialty fruit were off 12.9% in dollars and 30.1% in volume compared to a year ago, while tomatoes were off 9.9% in dollars and 12.7% in volume compared with a year ago. Grapes, pears, melons, carrots and citrus all were among the items down both in dollar sales and volume for the four week period. Amazingly, higher prices for bananas and potatoes allowed dollar sales to climb by 19% and 28%, respectively, despite volume decreases of 3.2% and 0.9%.


Look for some coverage in
The Packer about produce department retail trends and how much of this performance is related to the economy versus supply and demand conditions.

By the way, we added a member to our Fresh Produce Industry Discussion Group (and about five to the companion www.linkedin.com group) over the weekend, and there is more good insight from Luis on the retail market share question I asked last week, too.

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Sunday, December 21, 2008

Fresh Talk Poll - Food safety still dominates agenda in five years

Sustainability makes a run at food safety, but the biggest issue the fresh produce industry will face in five years, says our Fresh Talk voters, is food safety: The results of the Fresh Talk poll ending Dec. 21:



What will be the biggest produce industry issue in five years?
food safety
13 (41%)
traceability
4 (12%)
sustainability
10 (32%)
food miles/local food
4 (12%)


Votes so far: 31
Poll closed

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Dec. 21 - Credit cards and supermarkets: what Luis found

Luis of the Fresh Produce Industry Discussion Group is one of the greatest resource people you will run across, an "answer man" among answer men. Recently I asked the group if anyone had an idea of how much credit card sales account for out of total supermarket sales. I wondered if the credit crunch and declining credit limits could also impact supermarket sales. Luis ran down the answer and more. Luis, Big Apple and others are great resources for the fresh produce trade, and we could use your help too. Join today.

Here is what Luis found:

In 2006, 29% of the dollar volume of payments at grocery stores were made with a credit card and 33% with a debit/ATM card. One can also compare payment methods at three different types of restaurants. So, credit may be squeezed for a few but the majority is likely to have to
deal with higher fees (transaction, what-not etc.) and higher interest rates as banks shy away from risk and hunt for revenue.

More details from this FRB Boston report (with some rounding error).
http://www.bos.frb.org/economic/eprg/conferences/payments2006/papers/...

Page 13
Payment Method Share of Dollar Volume: 2006
Grocery Stores
Cash: 21%
Check: 18%
Debit/ATM card: 33%

Credit Card: (25+3+1)= 29%

Page 15.
Payment Method Share of Dollar Volume: 2006
High Priced Restaurants
Cash: 20%
Check: 3%
Debit/ATM Card 12%

Credit Card: (59+5+1) = 65%

Page 16.
Payment Method Share of Dollar Volume: 2006
Mid-Priced Restaurants
Cash: 36%
Check: 2%
Debit/ATM Card 23%

Credit Card: (36+2+1) = 39%

Page 16.
Payment Method Share of Dollar Volume: 2006
Quick Service Restaurants
Cash: 66%
Check: 3%
Debit/ATM Card 17%
Credit card: (12+1+0) = 13%

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Saturday, December 20, 2008

National Retail Report - Dec. 19

From the USDA retail report of Dec. 19:

Ads were once again focused on holiday themes this week. Hams and roasts were often featured prominently on front pages and shared the space often with a variety of citrus, especially Clementines. Retailers also promoted fully prepared meals along with party trays and gift baskets, many of which included fresh and fresh cut produce items. Fresh cut flower
arrangements and potted poinsettias were also featured widely. Overall fresh produce ad activity was up more than 32% compared to last week; fruits were up nearly 14% and vegetables were up more than 61%. The top 5 featured items were: sweet potatoes, pineapples, cherries, Clementines, and blueberries. The most significant increase was seen on sweet potatoes which were featured nearly as often this week as they were in the week prior to Thanksgiving. Imported produce, especially fruits, continued to be featured quite heavily
this week.

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Friday, December 19, 2008

Dec. 19 - Top headlines

One of the harder to find pieces of data relating to U.S. supermarket sales is market share and changes to market share. ACNielson does not release those numbers, and I haven't been able to connect with IRI about my request.

Do any Fresh Talk readers have a link to any recent market share numbers for U.S. supermarkets? If so, email me at tkarst@thepacker.com and I'll share them in this space as well.


Food banks gain as holiday revels trimmed companies give to food banks instead of clients, employees

Monterey Mushrooms helps combat national Vitamin D deficiency
Does the Vitamin D factor make mushrooms more of a staple?

The Sun Bella(TM) brand sun ripening process was developed through a collaborative research program with the U.S. Department of Agriculture (USDA) by exposing the mushrooms to ultra violet light, thus increasing the stable level of Vitamin D to a minimum of 100% of the level recommended by the FDA. Sun Bella(TM) brand mushroom's increase in Vitamin D does not include any additives, supplements, or chemicals and the vitamin D is stable--maintaining its nutritional value even after cooking or freezing. Mushrooms are the only fruit or vegetable that naturally contain Vitamin D--obtained through sun exposure the same way humans naturally receive the nutrient. Monterey's unique process is approved as organic by the California Certified Organic Farmers.


School take steps to give kids more fruits, vegetables

The program -- dubbed "Cool Caf" -- is being tested in 16 schools and resulted in up to a 50 percent increase in fruit and veggie consumption at several, says Cathy Schlosberg, vice president of marketing at Aramark.

"Not only are students eating more fruits and vegetables, but our staff is, too," says Andra Gwydir, principal at Wedgwood Elementary School in Florissant, Mo., which is testing it


Top food stories of 2008
rise in food prices #1, tainted milk #2, salmonella outbreak in tomatoes #3, locally grown #4, COOL #5, big food companies nutrient standards #6 and #7 jalapenos test positive for salmonella...
That ranking tells the tale; tomatoes take the brunt of salmonella outbreak, though jalapenos had the positive link.

Discount grocers win over shoppers Aldi has 1,000 stores by early 2009 and will add 75 more next year

Food banks report dramatic increase in demand 30 percent increase in request for emergency assistance

Auto makers to get $17.4 billion Ford says no thanks



Wal-Mart may try to open second Chicago store
First store in September 2006, but resistance for labor unions has stymied

Mexico joins U.S. beef row
dispute over COOL and impact on livestock sales to U.S. meatpackers

Economy impacting seafood consumption
70% of consumption occurs in restaurants, so sector is taking a hit; 2007 consumption was 1% lower than 2006, study says

Lempert's five trends for 2009
local food, downsized store formats among the five

Smart eating at the office from FreshDirect


Urban areas struggle to find grocers, fresh food
fast food is king in south LA

Global economy to contract in 2009


Senate leader Reid revives hope for immigration reform


Changing face of immigration
4 part series of Miami Herald is worth a look

Biochar offered as climated reduction tool

Central Chile shaken by quake
6.3, but no damage reported

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