The labor situation

Watch CNN's The Situation Room sometime this week to see the Florida perspective on the labor situation.

From the newsletter of the Florida Fruit & Vegetable Association:

"FFVA Board Member John Stickles hosted CNN’s Miami correspondent John Zarrella Jan. 14, answering questions about the agriculture industry’s need for a dependable, legal workforce. Stickles, general manager of Dover-based Florida Pacific Farms, discussed the H-2A program, which he uses to obtain workers. The piece is part of a series leading up to the Florida primary elections covering issues of interest to the state. It is scheduled to air on “The Situation Room” program sometime this week."

Upmarket retailing in the UK

Guest blogger Lance Jungmeyer chiming in ...

UK retail behemoth Tesco is joining upscale retailers as it opens a slate of two- to three-story department stores. It is taking square aim at the likes of Marks & Spencer, Debenhams and others.

According to this Financial Times article, the thinking behind this store is that it is all-encompassing.

'In a marketing document describing the multi-level town centre store as a "whole new concept", Tesco said the shops would sell food, televisions, clothing, homewares and toys over two or three floors, with escalators linking the levels.'

The article notes that, one way or another, Tesco already gets one out of every seven pounds spent in all of British retail. This new format is a way to shave more market share from top-end competitors.

Speaking of the upper crust, if you have ever been to the granddaddy of all retail stores, the nine-story KaDeWe in Berlin, you can understand the appeal of a high-end retailer of foods, spirits, clothing, books, hi fidelity audio/video and more. A good chunk of one floor is dedicated to toy trains alone.

The food retailing floors (Yes, floors) are a sight to behold. From the cooking stations to the monster meat department and spotless produce department, it is a virtual circus of sights, smells and tastes.

Apple revival

Demand for local food is leading to an apple and pear revival in the United Kingdom, says this USDA Foreign Agricultural Service report. From the mid-December report:

Up until two years ago UK apple and pear production was in decline after many UK producers 'grubbed-up' their orchards in response to European Union production policy.

TK: Grubbed up? That's a new one...

Today UK production is experiencing something of a revival in response to strong consumer interest in buying local and seasonal produce. Demand for UK apples and pears is said to be outstripping supply, and each of the main UK supermarket chains are actively competing with each other to source home -grown fruit and to promote old English heritage varieties.

TK: I wonder if this trend for heritage varieties will come to the U.S.

There are over 400 commercial growers of apples and pears in the UK, covering an area of around 10,000 hectares. The UK's main commercial orc hards are located in the South East of England, particularly in the counties of Kent, East and West Sussex, Surrey and Hampshire. With renewed vigor in UK production, there is diversification away from the traditional dessert apple variety of Cox towards Gala, Braeburn, and newer varieties such as Jazz (Braeburn/Royal Gala cross) and Kanzi (Gala/Braeburn cross). The latter two varieties are available in commercial volumes in the UK for the first time this year. In fact, 200,000 Jazz trees have been planted over 200 acres in the last 1-2 years representing the largest single variety planting that the UK industry has experienced for many years. In addition, the Elstar/Gala cross known as Rubens has been under trial for the last three years in the UK, and 100,000 trees are intended to be planted by 2008.

TK: Jazz coming on strong, thanks to Enza.

Research and development into UK apple production is also increasing. UK supermarket chains are working with local growers to try to increase volume in a sustainable way, and to
explore the production of organic varieties that can grow in the British climate. Several of the major supermarket chains are closely linked to trial sites carrying a range of varieties. Sainsbury's Supermarkets appears to be leading the way with its “Concept Orchard” scheme in conjunction with Orchard World (http://www.orchardworld.co.uk/products/). The principal goal of the scheme is to boost yields through high-density planting, and to build up the UK's organic range with traditional English varieties as well as newer varieties. The British share of the UK organic apple market currently stands at only three percent. Domestic apples and pears are usually available on the UK market from mid- September to the end of January (depending on supplies). In one marketing year, UK production currently supplies 20 percent of the total UK apple market, and 16 percent of the total UK pear market. Apple imports increased 21 percent by value in the year to June 2007 (marketing year 2006). However, they decreased one percent by volume. Fresh fruit (as is also the case with all other major food groups) has experienced price inflation in response to greater costs of global production and distribution. US apple exports to the UK primarily consist of premium Red Delicious, Cripps Pink (marketed as Pink Lady), Empire, McIntosh, and organic variants of these. US exports to the UK increased 10 percent by value in the year to June 2007, and 3 percent by volume.

TK; U.S. exports haven't taken a significant hit yet with the "apple revival" but retail investment in the UK apple sector is a model built on self-interest with a view toward generating consumer goodwill.