Chilean grape imports

It seems like the peak of summer, with bargain grapes and stone fruit advertised heavily in produce ads. Here is a picture of Chilean grape volume that made the promotions possible. Yet season to date statistics show that Chile's grape shipments to the U.S. were off about 25% compared with last year through March 8.

California, Florida restaurant closures

Guest blogger Lance Jungmeyer here ....

The national housing crisis is having ripples at restaurants in California and Florida.

According to a recent article in Nation's Restaurant News (subscription required), there are closings and retoolings planned.

For instance, Lone Star Steakhouse & Saloon is closing 26 of its lowest-performing restaurants, including seven of eight Florida branches. The company blamed "soft economic conditions there, such as high insurance, food, occupancy, utility and labor costs."

In Florida, more than 37,000 homeowners were filing for foreclosure in January, with Cape Coral/Ft. Myers in a particular world of hurt.

It's not any easier on the Left Coast, where the article notes that more than 57,000 California homes were on track to be foreclosed in January, a 120% rise over the previous year. The Stockton and Riverside/San Bernardino areas seem the hardest hit.

"Independent restaurants also are struggling to bring in customers in California. Diners responded so well to Restaurant Week promotions in San Diego and Los Angeles this year, for example, that many fine-dining establishments decided to extend their value-priced prix fixe offers.

"Other restaurants are dropping corkage fees, offering lower-priced midweek specials and reformatting menus to lower prices."

What sort of economic conditions are you seeing? I'd like to know. Drop me a line at ljungmeyer@thepacker.com

Teetering on the edge of weight loss

Harris Teeter has a new, free weight-loss program for its customers.

From dailypress.com:

"Harris Teeter grocery stores have introduced a new health and weight loss program called "YourWellness For Life."

The free program provides brochures, guidebooks and meal-planners that take customers through a 15-week program. As participants follow the plan, they can also refer to special in-store food labels such as "Excellent Source of Calcium," "Good Source of Fiber" and "Sugar Free" to help them make healthy meal choices."

On global food safety systems

This thread from the Fresh Produce Industry Discussion Group has sparked a great exchange about global food safety standards - some argue there is nothing "standard" about them. And what are the respective roles of private versus government guidelines? Monachus from the group writes this (you will want to join the discussion group for the full post of Monachus - it's worth it):

The matter of the comparability of standards is a subject of considerable interest in Canada. So much so that the fresh produce stakeholders - the Canadian Horticultural Council (producer/packers), the Canadian Produce Marketing Association (repackers/wholesalers),
the Canadian Federation of Independent Grocers (small chains & independents) and the Canadian Council of Grocery Distributors (major chains) - joined together in 2007 to commission a review of the Canadian HACCP-bases food safety programs for producer/packers and repackers/wholesalers and 15 programs from outside of Canada. While previous studies have focused on mostly one-on-one comparisons, this is the first "large" scale review that looked at these two key segments of the supply chain.

The results of this study are available on the CPMA website at:......

McBlogging

Guest blogger Lance Jungmeyer chiming in ...

More and more, companies are turning to the power of the blog in order to unleash the creative process within their ranks. Sometimes, these are public, as in the case of Wal-mart's blog.

Other times, they are intended for internal use only.

Such is the case with McDonald's new Station M blog.

Brandweek reports that McDonald's intends for employees of its some 15,000 locations in North America to blog about new products, promotions, operations and more. It sure would be nice to have a peak behind the scenes. For instance, one could find out how many salads are sold daily, vs. being thrown away. Or one could learn what percentage of Happy Meals are sold with fresh-cut apples instead of fries.

Extension amendment on the slate

The Senate passed a short term extension yesterday, and House will consider a similar amendment today.April Slayton of the House Agriculture Committee passes on this language:

H. R. 5578

To extend agricultural programs beyond March 15, 2008, to suspend permanent price support authorities beyond that date, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 11, 2008

Mr. PETERSON of Minnesota (for himself and Mr. GOODLATTE) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

---

A BILL

To extend agricultural programs beyond March 15, 2008, to suspend permanent price support authorities beyond that date, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. EXTENSION OF AGRICULTURAL PROGRAMS.

(a) Extension- Except as otherwise provided in this section and notwithstanding any other provision of law, the authorities provided under the Farm Security and Rural Investment Act of 2002 (Public Law 107-171; 7 U.S.C. 7901 et seq.) and each amendment made by that Act (and for mandatory programs at such funding levels), as in effect on September 30, 2007, shall continue, and the Secretary of Agriculture shall carry out the authorities, until April 18, 2008.

Shattered

I see the Pundit has some coverage today of the grape shatter issue. Big Apple of the Fresh Produce Industry Discussion Group aptly wrote this headline about this issue in a post dated Feb. 26:

ACTION: Proposed rule. Standards for Grades of Table Grapes; AMS is proposing an additional 5 percent allowance for shattered grapes. Wholesalers prick up your ears.


TK: The comment period closes March 28, and it doesn't appear consensus is at hand. Here is the long and somewhat tortured background of this issue, lifted from the proposed rule:

In November of 2005, AMS received two petitions requesting a revision to the United States Standards for Grades of Table Grapes (European or Vinifera Type). These petitions were received from the CGTFL on November 9, 2005 and Western Growers on November 23, 2005
(European or Vinifera Type), which included a 10 percent allowance for shattered berries en route or at destination only in consumer units; the comment period ended on March 27, 2006. AMS received fourteen comments in response to this notice. Twelve comments supported the proposal; one from a regional agriculture trade association, one from a table grape association, and ten from members of the table grape association. Each of these comments indicated that new improvements to consumer packaging resulted in less shrinkage and a more sellable product to consumers, and with this These two trade associations represent more than 85 percent of the European or Vinifera type table grape production in the United States. They requested an additional 10 percent allowance for shattered berries en route or at destination for grapes in consumer containers. The petitioners stated that they feel change, specific to consumer containers, is warranted as the majority of table grapes are now being sold in consumer containers which allows shattered berries to be fully utilized/sold. On January 24, 2006, AMS published in the Federal Register (71 FR 3818) an Advanced Notice of Proposed Rulemaking (ANPR) soliciting comments on the proposed revision to the United States Standards for Grades of Tabe Grapesimprovement, a revision of how shatter is scored was needed. One comment opposing the proposal was received from a national trade association representing wholesale produce receivers. The receivers' association stated that an additional allowance for shattered berries would be unfairly damaging to receivers and consumers. Finally, one comment was received from a trade association of shippers of table grapes from the State of Sonora, Mexico. The shippers' association supported the idea of revisiting the standards for table grapes, however, it wanted to investigate the potential effects of an added ten percent allowance during the upcoming season before supporting this revision. The association indicated that the 10 percent allowance seemed high. As a result of the comments received from the ANPR, AMS published in the Federal Register (71 FR 55367) a proposed rule on September 22, 2006. Taking into account the comments received, AMS believed that it would be more beneficial to the overall industry to fully utilize shattered berries that are not otherwise defective, in consumer containers. The majority of table grapes are now sold in consumer containers. A 60-day comment period was allowed for interested parties to comment on the proposed revision. The comment period ended on November 21, 2006. In response to the proposed rule, AMS received fourteen comments. Twelve comments supported the proposal. Two comments were from regional agricultural trade associations; one comment was from a national table grape association; and nine comments were from members of an agricultural trade association representing growers, packers, shippers and exporters of table grapes. These comments were almost identical to the majority of comments received from the ANPR regarding current packaging and marketing procedures. The comments indicated that because of changes in packaging and marketing practices, a revision of how shatter is scored was warranted. Two comments opposed the proposal. One comment was received from a national trade association representing wholesale produce receivers, and one from a grower and shipper of table grapes. The receivers' association stated that they saw no reason to provide a special allowance for shattered berries in consumer containers. The comment stated that the proposed allowance would enable more lower-quality product to qualify for the U.S. No. 1 grade. The comment also argued that the proposal actually allows 22 percent shatter at destination. The commentor also noted that the percentage would be higher if the Perishable Agricultural Commodities Act(PACA) Good Delivery tolerances were taken into account. PACA tolerances may be taken into account when AMS resolves contract disputes under the PACA. The comment received from the grower and shipper of table grapes opposing the revision stated that it was not appropriate to change the current grade standards and thereby downgrade the industry's and consumers' perception of table grapes in general. The comment also proposed a new grade, ``U.S. No. 1 High Shatter'' as an alternative. However, the original proposal was for an additional allowance for en route or destination inspections only. Developing a new grade would have resulted in that grade needing to be applied at shipping point in order for it to be applied en route or at destination. Therefore, developing an additional grade was and is not being considered at this time. One request for a reopening of the comment period was received from a receiver/wholesaler after the comment period ended. At that time, AMS believed that reopening the comment period would not facilitate resolution and would only prolong the then current state of uncertainty, with regard to whether a 10 percent allowance for shattered berries would be allowed. However, due to the lack of industry consensus concerning the proposed rule, AMS published in the Federal Register (72 FR 35668) a notice to withdraw the proposed rule on June 29, 2007. AMS subsequently met with CGTFL and several of its members. CGTFL stated its continued interest in an additional allowance of 10 percent for shattered berries en route or at destination for grapes in consumer containers because the majority of table grapes are now sold in these, which allows shattered berries to be utilized. AMS also met with the North American Perishable Agricultural Receivers (NAPAR), several of its members and other wholesale produce receivers. Generally, the receivers stated their opposition to an additional allowance for shattered berries based on their belief that such an allowance would be detrimental to the grape industry and consumers. On October 5, 2007, AMS received a second petition from the CGTFL requesting a revision to the United States Standards for Grades of Table Grapes (European or Vinifera Type). Its petition revision repeated the original request for an additional 10 percent allowance for shattered grapes en route or at destination for grapes in consumer containers. The requested change of the petitioners for a 10 percent allowance for shattered berries in addition to the 12% tolerance for total defects could potentially allow for 22 percent defects in a lot and still grade U.S. No. 1 Table. We believe that such a possible percentage is too high and would not appropriately reflect what is expected by industry and consumers in a U.S. No. 1 Table grade. Accordingly, AMS is not proposing this requested 10 percent allowance because AMS believes it would weaken the standard and reduce consumer confidence in the grade. However, AMS recognizes that a change in packaging and marketing has occurred in the Table Grape (European or Vinifera Type) industry. Additionally, AMS believes that due to improvements in packaging, marketing, and shipping that a revision to the current U.S. Standards would be beneficial to both the industry and consumers. Therefore, AMS is proposing a 5 percent allowance for shattered grapes be added to the United States Standards for Grades of Table Grapes (European or Vinifera Type). The proposed allowance is specific to table grapes en route or at destination in consumer sized packages. The standards currently provide in section 51.886, Table II Tolerances En Route or at Destination, a 12 percent total tolerance for bunches and berries failing to meet the requirements of grade for en route or at destination. Revising section 51.886, Table II, by adding a 5 percent allowance for shattered berries would mean that shattered berries would not be scored as a defect against the 12 percent total tolerance until the amount of shattered berries exceeds the 5 percent allowance. For example, if a lot has 17 percent shattered berries, 12 percent would be reported as a defect and the lot would meet the requirements of the U.S. No. 1 Table grade provided no other defects were present; however, if a lot of berries has 18 percent shattered berries 13 percent would be reported as a defect, which would cause the lot to fail to meet the requirements of the U.S. No. 1 Table grade by one percentage point. To enable utilization of this revision in the 2008 season, this action provides a 30-day comment period for interested parties to comment on the proposed revision. Also, AMS is particularly interested in comments and factual data that would demonstrate that this proposed revision would either positively or negatively impact financially interested parties. Specifically, data that shows expected financial losses due to adjustments made by shippers or conversely, expected additional expenses that would be incurred by receivers due to shattered berries in amounts of five percent or greater.

Produce Promotions - March 12-18

The Easter bunny/St. Patrick's Day pot o' gold is out in force, and ad prices for Chilean winter fruit continue to wow. Here is a rundown of produce promotions in the suburban Kansas City market:

Wal-Mart
Asparagus $1.98/lb
Pineapple gold: $2.86

HyVee
California navel oranges: $2.48/5 lb bag
Thompson green or red seedless grapes: $1.28/lb
Dole Premium classic salad: 2 for $3


Price Chopper
Green seedless grapes: 99 cents/lb
Fresh green cabbage: 19 cents/lb
Nature Seeet cherubs tomatoes: $2.99/10.5 oz
Dole Greener selection 2 for $4
Red potatoes: 69 cents/lb
Washington granny smith apples: 99 cents/lb
Red, russet or Yukon Gold potatoes: 2 5-lb bags for $3


Hen House
New crop red potatoes: 2 lb bags for $3
Fresh green cabbage: 4 lbs/$1
White seedless grapes: 99 cents/lb
Cantaloupe: 2 for $4

All about China

In my recent travels to Russia, one of the traders mentioned that Chinese apples were being withheld from some export markets so there would be some supply available for the Olympics later this year. China's rise as an economic power is well documented, and this report from USDA FAS brings a lot of context to the changing economy, the rise of foodservice and the growing middle class. From the 41-page report, about food safety and traceability:

More than 95 percent of Chinese consumers rank food safety as a “very important” in shaping their food purchasing behavior. Food safety has become a major public concern here over the past few years as a number of food product and contamination cases have surfaced in the media. These range from parasite-infected snails, to antibiotic residue in fish, to poultry and egg contamination with Sudan Red dye –reportedly fed to chickens so they would produce red egg yolks. These and other health scares have brought greater scrutiny and tighter controls on food products and food safety. Reportedly, 621 food production licenses of 564 producers were revoked in an effort to improve food safety in 2007. In September 2007, the government launched a national campaign to improve food safety in the catering sector, focused on school dining hall and small restaurant inspections in particular. The website www.51trace.org was created to trace food product origin as well as provide food safety alerts and updates. Food product health and safety scares have served to create strengthened consumer awareness about food safety, and food origin, which could potentially be a boon for some food exporters since imported food and beverages, including wine, from the United States generally enjoy a good reputation for meeting high quality and product safety standards. However, given the new levels of awareness and product perception on the part of the consumer, new market rules continue to evolve. While there has been some debate in the international press about food safety measures for the Olympic Games, the government here has implemented a strict tracking system designed to secure the safety of ingredients during the production of food supplies. In addition, procedures require samples of all food to be used be inventoried for possible further testing as necessary. More than 350 ingredients that fall under the 10 basic food categories for the Olympic Games are under government supervision and inspection by the Beijing Food Security Office (BFSO), with food suppliers selected required to use highly strict standards mandated by the BFSO. Based on post’s observation, the designated Olympic hotels food supply, including meat, vegetables, packaged food and beverages are under scrutiny from point of production to delivery to ensure food safety and security. The tracking system is expected to provide maximum food safety for hotel guests during the Olympics, and beyond.

TK: Quite a glowing report from Post about China's food safety efforts, considering the U.S. Olympic team will bring its own produce to China. No Chinese fujis needed for the U.S. team... From a Feb. 22 story from the TimesOnline:

Chinese Olympic organisers yesterday criticised US athletes who are bringing their own food to the Games in Beijing this summer instead of trusting local cuisine.

Competitors are banned from importing their own food into the athletes' village under rules drawn up by the International Olympic Committee (IOC) that are designed to protect the rights of sponsors such as McDonald's and to police the use of illegal substances.

The United States Olympic Committee, which will have more than 600 people in its delegation, is planning to transport its own produce because of fears about public health and food standards in China.

The athletes will eat their three daily meals at their training camp at a local university, which is outside the official confines of the Olympic Park.

Contemplating the future of Hawaiian agriculture

One environmental blog site has raised the issue of biotech crops in Hawaii. Here is how the issue was framed by the site:

At a staff meeting yesterday, we threw out this idea: How amazing would it be if “grown in Hawaii” was known world-wide to mean “organic and GMO free”?

As the most remote archipelago in the world–we are at the crossroads of the future of agriculture. We can either choose to become a haven for pure, high-quality, high-value organic and GMO-free food, or an isolated testing ground for corporate biotech to try out their genetically modified pharmaceutical and mcfood crops. What’s it going to be?

To remain silent on this issue, is the same thing as choosing. Unless we raise our hand to say “NO”, the future for Hawaii IS unrestricted, unmitigated, unlimited biotech. From last year’s Star Bulletin:

Pineapple will give way to biotech seed crops in Kunia as Monsanto Co. expands its acreage in the state by purchasing lands once tended by Del Monte Fresh Produce Hawaii.

Monsanto has entered an agreement to acquire 2,300 acres of agriculture-zoned land from the James Campbell Co.

See full article at: http://starbulletin.com/2007/04/05/news/story02.html

TK: By the way, the blog said it is a a project of KAHEA: the Hawaiian-Environmental Alliance, a non-profit 501(c)3 working to protect the unique natural and cultural resources of the Hawaiian islands. If Hawaii wants a vibrant agriculture economy, it obviously can no longer lean on the pineapple trade or the sugar business. While KAHEA may dream of a Hawaii that is "organic and GMO free," the reality is that well regulated biotech development makes economic sense for the islands.

That's a lot of double cheeseburgers

News here that McDonald's sales in February were up more than 11%. I guess this goes to show that even in an economy lurching toward recession, there is still room for growth at some foodservice outlets - and that not all countries of the world decry the "Americanization" of their diets. At least "menu variety" is mentioned as well - we are hoping that is positive for fruits and vegetables as a worthy element of the Golden Arches lineup. From the story from QSR:

McDonald's Corporation announced today that global comparable sales rose 11.7 percent for the month and 8.6 percent for year-to-date February. Systemwide sales for McDonald's worldwide restaurants increased 19.9 percent in February, or 13.2 percent in constant currencies. McDonald's February sales results reflect strong performance across each business segment, as well as a benefit of about 4 percentage points from an extra day due to leap year.

"Our focus on our customers around the world continues to deliver results and drive McDonald's global business," says McDonald's CEO Jim Skinner. "Through the Plan to Win, we're committed to providing our customers the menu variety they want, with the convenience and value they expect from McDonald's."

February comparable sales increased 8.3 percent in the U.S. as McDonald's market-leading breakfast, Premium Roast Coffee and everyday value offerings continue to fuel performance.

In Europe, strong results in the U.K., France, Germany and Russia drove comparable sales up 15.4 percent for the month. Europe's combination of premium beef and chicken menu selections, balanced with everyday affordability, continues to drive results.

Kudos to PBH

The Produce for Better Health Foundation must be pleased with this piece from Commonvoice.com. Connie Bennett writes:

Hurrah to the Produce for Better Health Foundation for its new, innovative FoodChamps.com website to make shopping for and eating fruits and vegetables more enjoyable and fun for kids.

Parents, if your kids are reluctant to eat their fruits and veggies, go online with them and show them the colorful, new website, FoodChamps.org, offered by the the non-profit Produce for Better Health Foundation, whose mission is to create a healthier America through increased consumption of a variety of fruits and vegetables.

Just look at the variety of fun on FoodChamps.org for kids 2 to 5 and 6 to 8. For instance, your children will find games, coloring sheets, activity pages and recipes that children can make (with adult guidance).

The PBH, which has gained recognition for its 5 A Day for Better Health program -- the nation’s largest public-private nutrition education initiative -- also recently unveiled its a website just for parents, too --FruitsandVeggiesMoreMatters.

Among my favorite features on both sites are:

The Supermarket Scavenger Hunt.

Top 10 Reasons to Eat MORE.

Fruit and Veggie Nutrition.

Mom2Mom

TK: A well deserved review of PBH efforts. Clearly, there is considerable effort being expended to make the "More Matters" Web sites compelling for both mothers and children. The Foodchamps.org site featured math games, a game for matching food with the government's MyPyramid graphic and a couple of other naming/matching games. While I might want even more sophisticated/interactive/role playing games for the future, this is a good starting point.