Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, January 23, 2008

Here is a good benchmark powerpoint presentation on immigration statistics, particularly the spread of the influence of the immigration population to dozens of states.


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That guy

Whatever happened to the nominee for Agriculture Secretary? As Acting Secretary Chuck Conner has been blitzing the country with the Administration message and taking fire from Senate Democrats, Edward Schafer has been laying low, apparently waiting for his nomination hearing in the Senate. He won't have to wait too much longer. From the office of Sen. Tom Harkin:

Senators Tom Harkin (D-IA) and Saxby Chambliss (R-GA), the Chairman and Ranking Member respectively of the Senate Committee on Agriculture, Nutrition and Forestry, today announced a nomination hearing for former North Dakota Governor Edward Schafer. The hearing will take place on Thursday, January 24th at 3:30 pm in Room 328A of the Russell Senate Office Building.
The Committee will examine the nomination of Governor Schafer to be the Secretary of the U.S. Department of Agriculture.

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York

From my observations of him, Tim York has the personality and thoughtfulness to step into any leadership job in the entire supply chain and excel. As it stands, the industry veteran has been tabbed to serve as the chair of the board of advisers to The Center for Produce Safety at UC Davis.

From a press release:

The Center for Produce Safety at UC Davis has named Tim York, president of Salinas-based Markon Cooperative, as chair of the center’s new board of advisors. With 30 industry, academic, and regulatory members named to the advisory board of the Center for Produce Safety, UC Davis is poised to further advance its research and education partnerships on foodborne illnesses such as E. coli.

York brings a strong agricultural and food processing voice to the Center for Produce Safety. “Tim York’s leadership on the advisory board will allow UC Davis, other research centers, the produce industry, and regulatory agencies to work together to establish the critical scientific foundation for ‘best practices’ that provide a safe food supply for the public,” said Devon Zagory, interim executive director of the Center for Produce Safety.

“The Center for Produce Safety is a critical step forward for the produce industry,” York said. “The center’s mission is to provide ready-to-use, science-based solutions that prevent or minimize produce-safety vulnerabilities. I am pleased to have been asked to serve the industry in this capacity.”

Markon Cooperative, Inc., based in Salinas, Calif., is a leader in procuring fresh fruits, vegetables, and juices for food companies throughout North America. Under York’s leadership, Markon has long been a leader in food safety, quality control, and innovation. York formerly served as chair of the national Produce Marketing Association’s board of directors and served on the U.S. Department of Agriculture Fruit and Vegetable Industry Advisory Committee.

At the Center for Produce Safety’s first advisory board meeting, Zagory and York worked with board members to establish priorities for the center, such as developing university and produce-industry partnerships, assimilating research data on produce safety, and establishing an ongoing research program.

The Center for Produce Safety (
www.cps.ucdavis.edu) works closely with the Western Institute for Food Safety and Security (www.wifss.ucdavis.edu), also based at UC Davis, to address numerous food safety issues, including foodborne illnesses. The center was established in 2007, and will appoint its permanent executive director in February 2008.

TK: What follows is John Chadwell's excellent piece about Tim York in the 2007 Packer 25 leadership profile.

As far as resumes go, Tim York's is on the slim side. After all, he's 51 and has only held down two jobs in 30 years. On the other hand, there is no shortage of people willing to be listed on York's resume as references. It could be said that he isn't one much for jumping from job to job. Another way to look at it is that he is so good at what he does, he has been strongly encouraged to stick around as long as he likes. York was 21 when he went to work as the purchasing director for H. Hall & Co., a Salinas grower-shipper. In 1985, though, he found a home, as it were, at a new company just opening its doors in Salinas, Markon Cooperative Inc. Markon was the first produce purchasing agent for the foodservice industry and is now composed of nine leading independent foodservice distributors in the U.S. and Canada. Collectively, the co-op accounts for $12 billion in annual sales. "I think he has been a key force of Markon's success over the years," said Eric Schwartz, president of Dole Fresh Vegetables, Salinas. "When it comes to business acumen, he is very sharp and forward thinking, which is different for an industry that tends to be very reactive sometimes." There was a time, though, that York had plans other than working in the produce industry. As he left high school, his career path almost took another route. "I wanted to be a school teacher," he said. "My mom was a school teacher, my sister is (one) and now my daughter is a school teacher." He said that when he was growing up, there was one memorable teacher who made a difference in his life. "I think about a teacher I had at San Gabriel High School where I grew up," York said. "His name was Mr. Police. He was my mathematics teacher. He loved math, and his enthusiasm and the way in which he taught it made me love math. I saw the power of what a wonderful influence a good teacher can be." For some reason that he can't recall now, he didn't pursue teaching and found himself in the world of produce. As president of Markon, York has been vocal the last few months as part of a coalition of foodservice and retail buying organizations insisting that the major produce trade associations develop a single set of safety standards for the industry after it was nearly crippled by the devastating E. coli outbreak linked to fresh spinach. "Food safety will continue to be an issue for us in developing better guidelines and implementing them throughout the industry," he said. "We're going to continue to see food safety dominate much of the media around fresh produce." Schwartz said York has been the driving force pushing the retail food safety group to get leafy greens' standards implemented. "He's doing now what a lot of the trade organizations should have been doing from the very beginning," Schwartz said. "He stepped in and led that charge." Bryan Silbermann, president of the Produce Marketing Association, Newark, Del., said York has never been shy about speaking up for something he believes in. "He felt there was a need to get buyers together to discuss how they could address some of these food safety issues and try to do it in a way that didn't have suppliers running off in every direction," he said. "He really believes in industry service, which was made clear by his service on the PMA board. He is very willing to throw his energy into issues." York served for 10 years as a board member for PMA. He served as chairman of its foodservice division, as an executive committee member and in 2002 as chairman of the board. "His willingness to step up, his knowledge of the industry and his proximity to the supply side of the business has caused him to be well regarded," Silbermann said. Two other important issues besides food safety that York said will affect the industry in 2007 are transportation and labor. "Transportation will continue to be a major challenge for us as an industry," he said. "This will include fuel costs and the availability of transportation. AgJobs was recently reintroduced to the new Congress. Hopefully, we'll get good legislation that helps with our needs for labor. I think, though, that labor will continue to be an issue." With consumers continuing to be concerned about food safety, York believes there will be more of a movement toward locally grown produce. "Organic used to mean local, but doesn't necessarily mean that any more," he said. "Local is the new organic and will continue to be so." He said in 2007 consumers will demand a wider selection of products, particularly varieties of citrus. "Clementines a few years ago weren't even on the map. Now you go to any supermarket and you'll find them on the shelves," he said. "With the diverse cultures we have in America, we're seeing demand for more exotic fruits and vegetables. We're seeing a demand for more intense, traditional flavors, whether it's Mexican or Spanish or Moroccan cuisine." -- By John Chadwell
More to the story * Most admired: York said he admires J.T. Snow, former first baseman for the San Francisco Giants, because he was an excellent player who was committed to his craft and did it well. He also gave back to the community. He donated seats for underprivileged youths to come to the ball games. York said Snow used his God-given talents well and understood how privileged he was to be in the position as a professional baseball player.
* Hobbies: York enjoys water skiing, snow skiing and fly fishing. He also likes to run with buddies on weekends. He ran in the San Diego Marathon in 1999 and the Portland Marathon in 2005.
* Lesson learned: Not listening to his gut when it came to hiring some people over the years. He thinks he has very good instincts about people and needs to trust his instincts more.
* Most memorable moment: Going to Israel with his church group in 1996 and walking the road that Jesus traveled carrying the cross.
* Family: York and his wife, Lisa, have been married for 27 years. She is a nurse at a family practice. They have one daughter, Margaux, who is 24 and is engaged to be married in August. Their son, Weston, is 13.

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Corporate shakeup at Loblaws?

The Globe and Mail reports that some are predicting a management shakeup at Loblaws.

Loblaws is about a year into what has been called a three- to five-year turnaround, but the article notes empty shelves and underutilized space at the retailer.

The company is controlled by the Weston family. According to the article, "Loblaw has been led since the fall 2006 by a triumvirate of executives led by Galen G. Weston of the controlling Weston family. The others are deputy chairman Allan Leighton, a long-time adviser to the Westons, and Mark Foote, president of Loblaw and the principal operator behind the new strategy.

"We believe that the current triumvirate, individually talented though it may be, is not appropriate for long-term effectiveness," retail analyst Perry Caicco at CIBC World Markets said in a report.

"We are not going to add to the speculation about the specific nature of a management change, but suffice it to say that the current structure is not likely to be maintained past the second quarter of this year."

One analyst noted that "Loblaw's biggest problem is its superstores, which now have rows of empty shelves because the company is reducing its general merchandise offering and has too much space in the giant stores. He said the stores look like a grocery store "with general merchandise as an afterthought."

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The disputed border

I saw references to a couple of film projects on immigration. Here is what one effort says about its project:

At a time when America is in crisis, one man ventures to the southern border of Mexico in a big blue bus to discover the truth about ... all » illegal immigration. Filmmaker Chris Burgard’s movie is a striking and awakening vision of the true immigration story on our southern border. "Border" is a fresh and controversial documentary that takes a firsthand look at America’s failure to secure its borders and at regular citizens trying to take control again.


Here is a trailer from the movie:




Another CBS report about "The Border Film Project," which offers another perspective from both sides of the border.




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Cuke highs and lows

Mexican cucumbers in Nogales - Jan. 2 to Jan. 22 - http://sheet.zoho.com

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Hunger in America

While I touched on the irony of obesity in Africa in a recent post, Rick Bella of America's Second Harvest reminded us in a comment that we don't have to go beyond our borders to find hunger. Thanks to Rick and his organization for helping to ease the hardship of those who find themselves in a chapter of their lives where they cannot purchase enough food for their family. The Food Research and Action Center also does a good job in highlighting stories that bring this reality to the attention of policymakers.

Here are some FRAC summaries of hunger related news reports.

California Budget Cuts Will Affect Assistance Programs
(Monterey Herald, January 11, 2008)

Cuts in the governor's proposed budget will make it harder for resident immigrants to access the Food Stamp Program in California. Resident immigrants counting on the Food Stamp Program, which assists the state's seasonal job force and children through CALworks, will have to wait longer to be eligible for the assistance. The budget also calls for major cuts in other assistance programs and school spending. Monterey County director of social services Elliott Robinson called the cuts "major" and said, "If they are implemented, it will be very challenging and difficult…for children and families trying to make ends meet."

Food Stamp Challenge Continues to Reveal Scope of Hunger Problem

(Colorado Springs Gazette, January 10, 2008)

In this letter to the editor, Care and Share Food Bank board member Richard Wood reflects on his experience trying to live on $3.72 worth of food per day. Subsisting on a diet of mostly potatoes, bread, rice, water drove home for him the need for the Farm Bill to "nourish families [and enable] them to become self sufficient" through food stamps, The Emergency Food Assistance Program and the Commodity Supplemental Food Program.

Food Stamp Boost Considered to Help Block Possible Economic Recession
(NPR, January 11, 2008; Associated Press, January 11, 2008; Reuters, January 17, 2008, New York Daily News, January 21, 2008)

Food stamp recipients could receive 20 percent more buying power for six months, one of several economic stimulus tactics being considered by the federal government. The food stamp suggestion, which would boost benefit levels for six months, is a method supported by former Reagan advisor Martin Feldstein in a recent Brookings Institution forum convened to address current economic trends (including the current real estate downturn and lower hiring rates nationwide). According to Feldstein, increasing food stamp benefits could proceed quickly and recipients would most likely spend benefits quickly. A few days later, Federal Reserve Chairman Ben Bernanke went on record with a similar view, saying food stamps are small additions which could help stimulate the economy. Democrats view any plan as needing to be "timely, targeted and temporary." Experts see the issues are possibly affecting voter decisions in the fall, especially among those Americans worried about their well-being.


Some Women in WIC Buy More Fresh Produce in Farmer's Markets

(The New York Times, January 15, 2008)

Researchers found that women taking part in the WIC program who are given $10 vouchers for grocery stores or farmer's markets will eat three times more fresh produce than women in a control group. In addition, voucher recipients who shop at farmers' market eat more servings of fruits and vegetables compared to supermarket shoppers. WIC participants feel the farmers' market produce is fresher and told researchers they enjoyed the experience of meeting local growers. The report, published in the American Journal of Public Health, suggested that the new WIC allotment amounts still don't reach what's needed - the study's vouchers were for $10 each week, while WIC vouchers will only provide between $6-8 per month.

TK: The reader replies to this last story were illuminating. One comment decried LA supermarkets, another said that canned veggies would stretch the dollar more. Another wrote:

This policy on fresh foods should be implemented immediately, everywhere. I am appalled and disgusted by the so-called “food” that is given to WIC recipients. In my neck of the woods, virtually every recipient is African-American. And yet, the preponderance of products that some agencies give away to WIC recipients is dairy. Do government dairy farm subsidies outweigh the need to address lactose intolerance — something that affects 70 percent of the African American population? We won’t even get into the high sugar and fat content. A friend who is white stopped getting WIC long before she needed to because she really didn’t need a case of evaporated milk every month, or high sugar brand name yogurt cups, especially with a child diagnosed with ADHD. Put this together with the excellent recent column on the high price of healthy foods and you may start to figure out why low income people are less healthy. They start out that way, and it doesn’t get any better.

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Searching for the silver lining

I did what stock gurus said to avoid at all costs - I looked on in horror at the performance of my retirement fund in recent weeks. Of course, it is disconcerting to see the 13% drop so far, and my investments are skewed moderately toward guaranteed income funds. Listening to the radio in Chicago yesterday, I understand yesterday's drop in the stock market could have been much more severe had not the Fed cut key interest rates by three quarters of a point.

What seems to be clear is our economy's struggles have a bigger than expected impact on the world economy. Consider this analysis from India:

The subprime loan crisis, which is devouring America's real estate industry, was considered a local problem by many outside the US until they discovered how many major global players in fact stood quite close to the fire - thanks to complex deal making that goes on behind such mortgages.

The red hot economies of India and China, one growing at nearly nine per cent and the other between 11 and 12 per cent, and overall strengthening of other Asian economies such as Japan, created the impression among many observers that finally the world economy was significantly reducing its dependence on the US.

On the contrary, as it turned out in the last couple of days, the world still remains inextricably attached to the fortunes of the US economy.

That is where the uncertain politics in the US come into play in so much as they impact the rest of the global community. With less than a year left for the Bush administration and it having lost most of its initiative on any substantive issues, especially the economy, it is seriously doubtful whether there would be a turnaround any time soon.

In a sense the US economic management is caught in the vicissitudes of electoral politics. The Bush administration is practically into its lame duck period where the president no longer sets or controls the agenda. On the other hand there is no one other than George Bush who at least theoretically has the power and the platform to intervene by the sheer virtue of still being president. The dichotomy is that the platform has lost its effectiveness.

The global fall put the US Federal Reserve in a peculiar spot. If it was contemplating a hands-off approach, as many had speculated, it had to change gears suddenly in the aftermath. A hands-off approach may have been a strategy to send a signal to the rest of the world that the problem is not as serious as the markets had concluded. However, on Tuesday the Fed reversed that strategy and delivered a dramatic three-quarters of a percentage point cut. Obviously, the hope was that such a big cut would calm frayed nerves on the Wall Street. But it had the opposite effect as the Dow Jones fell irrespective of the announcement.

The Federal Open Market Committee seemed to foreshadow recession that in so many words. It said, "Appreciable downside risks to growth remain" without really succeeding to hide that it was concerned about recession.

"The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets," it said.

The announcement of a $150 billion stimulus package by the Bush administration coupled with the interest rate cut to bolster the US economy are measures that could well ease some of the pressures but at this stage it is anybody's guess when and if the global markets will be able to internalize the problems in the US without any significant loss.


TK: ABC's Consumer Comfort Poll shows a reading of -23 this week, which this report notes continues the longest consecutive negative double digits since 2002-03. Still, most consumers view their own finance with more optimism than the general economy. Fifty-six percent say their own finances are excellent or good, ABC reports. To the benefit of fresh produce marketers, it seems logical to expect consumer purchases of big ticket items to suffer more than purchases of food, including fruits and vegetables. Meanwhile, Congress and President Bush appear to be close to an agreement on a $145 billion stimulus plan that would provide individuals with rebates of as much as $800 and give married couples as much as $1,600.

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