The end of the rope

President Bush does not want another short term extension to hash out seemingly intractable funding details of a new farm bill, setting up a blame game if questions aren't answered by Friday. Just what we didn't want. From the office of Sen. Tom Harkin:

Statement of Chairman Tom Harkin (D-IA)

White House Calls for One Year Extension of Current Farm Bill

Washington, D.C. – Senator Tom Harkin (D-IA), Chairman of the Senate Committee on Agriculture, Nutrition and Forestry and the Senate-House conference committee on the farm bill, today issued the following statement after the White House called for a one year extension of current farm law.

“The administration continues to dig in its heels on the farm bill by rejecting reasonable offsets that the White House itself used for other legislation and by now calling for a one year extension of current law.

“The President's call for an extension is just the latest example of this administration's lack of cooperation to enact a new, stronger farm bill. It makes me think that they do not want a new bill – one that makes investments in energy, conservation and nutrition or that extends support for growers of fruits, vegetables and horticultural crops. What we need is for the President to roll up his sleeves and cooperate with the Congress so that we can get this bill done.”

Moving down the road

While money issues remain to be resolved, the conference committee dealt with the specialty crop language in the farm bill today. From the office of Sen. Tom Harkin:


Crop Insurance, Commodity Exchange Reauthorization and Support for Fruit and Vegetable Growers Clear Farm Bill Conference Committee

Conference Committee Chairman Announces Approval of Crop Insurance, CEA Reauthorization and Specialty Crop Titles

Washington, D.C. – Senator Tom Harkin (D-IA), Chairman of the Senate Committee on Agriculture, Nutrition and Forestry and the Senate-House conference committee on the farm bill, today announced that the committee had approved three major initiatives of the bill: Crop Insurance, the Commodity Reauthorization Act and support for growers of fruits and vegetables. Staff for committee members continues to work through a few remaining issues in each title, which are expected to be resolved.

“Each conference meeting brings us closer to a new farm bill. Today, in shoring up resources for crop insurance, growers of fruits and vegetables and in increasing security and regulation over commodity trading,” said Harkin. “The adoption of these titles moves toward our overall goal of passing a strong, national bill.”

Highlights of the provisions agreed to today include:

Crop Insurance:

“The crop insurance program plays a critical role in protecting farm income and in fixing policy problems that have emerged since our last crop insurance legislation in 2000.” – Chairman Tom Harkin

Clarifies rebating rules and treatment of farmers as crop insurance agents under Federal Crop Insurance statute.

Allows groups developing new crop insurance products to get up to 50 percent of their estimated expenses in advance.

Authorizes the Risk Management Agency to renegotiate the Standard Reinsurance Agreement in the 2013 reinsurance year, or earlier, if adverse circumstances arise.

Repeals authority for the Premium Reduction Plan.

Requires the Risk Management Agency to conduct studies or undertake research and development on a number of issues and potential commodity insurance policies, including organic crop insurance premiums and price election, crop insurance policies for beginning farmers, skip-row cultivation practices, dedicated energy crops, aquaculture, poultry production, and policies for bee-keeping operations.

CEA Reauthorization Title:

“This reauthorization brings much-needed updates to the Commodity Exchange Act: ensuring it will provide greater transparency and accountability in our energy markets, provide the public with greater protection from fraud, and increase the monetary penalties for violations of the Act to help deter people from attempting to game energy markets or other markets.
– Chairman Tom Harkin

Provides greater transparency and accountability for energy markets that influence the prices that consumers and businesses pay (the Feinstein-Levin Bill).

Extends the Commodity Futures Trading Commission (CFTC) fraud authority to principal-to-principal futures transactions.

Expands the civil and criminal penalties for violating the Commodity Exchange Act (CEA).

Fruit, Vegetable and Horticulture:

“This farm bill is a tremendous achievement for the specialty crop industry, which faces unique challenges in today’s competitive global marketplace. This farm bill provides fruit and vegetable growers with the tools they need to address those challenges. The investment for these growers is historic, and greatly expands the nationwide reach, benefit and importance of this legislation.” – Chairman Tom Harkin

Promotes Organics: The Specialty Crops title includes a provision authorizing greater funding levels for the National Organic Program in order to ensure proper compliance and oversight.

Greater Transparency in USDA Purchasing Processes: This provision mandates an independent evaluation of the purchasing processes used by the Department of Agriculture. This evaluation will bring greater transparency to the processes that the Agricultural Marketing Service (AMS) at USDA uses under its Section 32 authority to buy perishable commodities.

Grant Program to Improve the Movement of Specialty Crops: The title includes a provision that strengthens our national transportation infrastructure for specialty crops by authorizing the Secretary to make grants to State and local governments, grower cooperatives, and producer, shipper and carrier organizations in order to improve the cost-effective movement of specialty crops throughout the United States.

Food Safety Education Initiative: This provision authorizes a new program at USDA to educate the fresh produce industry and the public about ways to strengthen food safety by reducing pathogens in fresh produce and implementing sanitary food handling practices.

On the lighter side - Baracky the movie

Costa, Putnam to introduce food safety bill Wednesday

Food safety legislation will be introduced tomorrow by two industry allies in Congress. From an email from Costa's office:

U.S. Representatives Jim Costa (D-Calif.), a member of the Committee on Agriculture and Adam Putnam (R-Fla.) chairman of the House Republican Conference will brief reporters on the Safe FEAST Act, food safety legislation they will introduce Wednesday (April 22).

Nearly 25,000 cases of food-borne illness were reported in the United States during 2006. To protect the food supply and consumer confidence, the Safe FEAST Act (Safe Food Enforcement, Assessment, Standards and Targeting Act) will establish new mandatory food safety requirements to identify and prevent potential sources of food-borne illness

Sustainability - what's in it for me?

I was reading a compilation of Dilbert cartoons the other day, and one made be think of sustainability, believe it or not.

In the strip, an alien ship is pictured rocketing to earth. Having arrived, the aliens came upon Dogbert. The aliens say something like, "We have come to share our technology and knowledge with you and help the peoples of this world live in peace and prosperity forever."


Dogbert replies, "What's in it for me?"


The aliens look at each other with dumbfounded expressions; the next frame shows them rocketing back to outer space.


How does this relate to sustainability? Perhaps because the industry has more than a little Dogbert in its psyche. What is in it for them? Whatever the definition of sustainability is - Tim York and Jeff Dlott have skillfully addressed the issue of "sustainability outcomes" contrasted with "best practices" in the April 21 issue of The Packer - the industry's self interest is a powerful motivator.

If someone tells a supplier that sustainability will meet customer and consumer demands, Dogbert's question remains - what's in it for me?

Shoppers cards work - really,they do

I'm not the biggest fan of "shopper" cards, and believe me, I have plenty of company out there. Check out this site, called www.nocards.org, for a taste of the opposition. Still, the FMI says cards have their value. From a news release today:

Food retailers are using technologies in numerous ways to remain competitive, meet consumer demands and become more efficient in order to improve sales and profits, according to the Food Marketing Institute (FMI) Food Retailing Technology Benchmarks 2008 report, which was released here today.
The technology study found that 48.8 percent of retailers have a frequent shopper program and 90.0 percent of their customers participate in it.
Identifying shopper needs and trip habits can lead to greater customer satisfaction, greater basket sizes and better category management. Among supermarkets in the survey, 84.2 percent claim a greater number of weekly store visits from program participants and 76.5 percent cited higher gross margins for shoppers holding frequent shopper cards.

Most grocery shoppers today have a choice of several food retailers and formats. However, consumers are making only 1.9 trips per week for their groceries, down from 2.1 trips per week in 2006. With fewer opportunities to interact with the shopper, retailers must maximize the shopping experience.
Frequent shopper programs are used to attract consumers to supermarkets. The programs provide data to the retailer to better meet the needs of the consumer. As a result, the programs improve the efficiency of store operations and provide a cost-effective way to customize product selection. Retailers maximize their selling space and save customers money through discounts when they are able to maintain an inventory that reflects the store’s demographics.
In addition to product discounts offered through frequent shopper programs, other benefits to the consumer may include:

Automatic electronic coupon deductions, 85.0 percent.

Points toward store discounts on any product, 55.0 percent.

Donations to charities, 40.0 percent.

Points towards specific free products in store, 40.0 percent.

Washington cold bites into fruit crops

The Packer's Andy Nelson has coverage here about the cold snap in Washington. From Andy's story:

Temperatures in Washington plummeted below 20 the weekend of April 18-20, endangering crops.And snow and more cold are forecast the week of April 21.Record low temperatures in Yakima were recorded both April 18 and April 20, said Loren Queen, marketing and communications manager for Yakima-based Domex Superfresh Growers.Domex won’t know how extensive damage to its cherry, pear and apple trees is until April 22 or April 23, Queen said April 21.

Here is some coverage from The Yakima Herald from this morning, which indicates the three days of record setting cold have dented some apple orchards by 15% to 20% and some cherry orchards worse than that.

United in Las Vegas for 2009 - and beyond?

I heard rumblings of United's decision to stay in Vegas for 2009 when I was in DC last week, but was never able to connect with Tom Stenzel to ask him about it. What happens after 2009? While United surely has wiggle room to do what it feels is best, don't be surprised if the show stays in Vegas for a few years. Here is a release from United Fresh Produce Association about next year's show:

United Fresh Produce Association Launches Expanded 2009 Show in Las Vegas

Washington, D.C. - United Fresh Produce Association announced today that it will expand its annual trade show and convention to focus on produce innovations, fresh meals, and technology solutions for the retail and foodservice marketing channels, and the total fresh produce and fresh meals supply chains.

UNITED FRESH 2009 will be centrally located at the Sands Expo Center and The Venetian Hotel in the middle of the Las Vegas Strip, April 22-24, 2009. Both the full expo and all convention education programming will be easily accessible from the magnificent Venetian Hotel, which will serve as the headquarters hotel for the event.

UNITED FRESH 2009 is the umbrella show encompassing two unique expos – United Fresh Marketplace and United FreshTech. New for 2009, each expo will feature its own show floor Learning Center, where attendees will focus on business strategies and education for success. This on-floor education will complement the traditional United Fresh Annual Convention featuring a full array of general sessions, workshops, receptions and networking events bringing the entire industry together to focus on increased sales and profitability.

As part of its expanded focus on fresh foods, UNITED FRESH 2009 will feature a new Meal Solutions Showcase highlighting innovation and product development that combines fresh fruits, vegetables and other fresh foods into prepared meals and healthy snacks. This new focus on fresh prepared foods will serve the growing business of in-store foodservice operations and the wide array of restaurants and other channels traditionally focused on prepared foods.

UNITED FRESH 2009 will once again feature its Food Safety & Research Pavilion, bringing together an expanded number of companies with food safety solutions for each segment of the supply chain, as well as universities and government agencies with tools and research to assist the industry. The show will also include a Featured Product Center with an opportunity for attendees to evaluate new products, an International Visitors Lounge, and a series of private business suites that exhibitors may choose for meetings on the show floor.

Also new for 2009, the association will launch UNITED FRESH 2009 ONLINE! later this summer, creating a virtual trade show marketplace that allows potential buyers across the world to search an interactive exhibitor database for new products and services, contact exhibitors directly for product information, and learn about new business opportunities leading up to the Las Vegas show in April. Exhibitors who sign up for the 2009 show will automatically be included in this online virtual marketplace, offering a year-round marketing platform.

“UNITED FRESH 2009 will build on the successful launch of our show in Las Vegas this year, which will welcome more than 100 companies as new exhibitors, with thousands of qualified buyers and attendees already outpacing last year’s registration,” said United Fresh President Tom Stenzel. “As we look to 2009, it’s clear that there will be a growing commitment to the show from foodservice and other marketing channels in addition to its supermarket base, as well as strong interest from buyers and sellers in the expanding fresh meals sector. Fresh produce is at the center of much of this new product development, and our unique combination of both the FreshTech and Fresh Marketplace expos provides the only event where the total supply chain and business leaders in this growing category come together,” he said.

“We have enjoyed a great relationship with the Food Marketing Institute these past five years, but with FMI’s decision not to hold its traditional supermarket show in 2009, we’ve actually been able to appreciate the underlying strength and potential of our own event as a multi-channel, total supply chain show serving a much broader audience of buyers,” Stenzel said. “We’re excited that UNITED FRESH 2009 will be able to forge its own unique platform in highlighting produce innovations, fresh meals and technology solutions, rather than being viewed only in its connection with one retail channel. Already, a number of foodservice providers are stepping up their attendance at the show, and we see our expanded fresh meals focus in 2009 serving both in-store supermarket needs as well as traditional restaurants and facilities where fresh produce and fresh foods are served.”

Details about UNITED FRESH 2009 will be shared with current exhibitors in Las Vegas, who have first priority to reserve space and begin sign-ups onsite May 3. The priority period will run through June 15, 2008, during which a waiting list for new exhibitors will be established first-come, first served. As a courtesy to current FMI exhibitors interested in the UNITED FRESH 2009 show, United Fresh will also extend early-sign to these companies during the priority period

Late start

Well, this gives the conference most of the day to work out differences, at least. From the office of Sen. Tom Harkin:

Senator Tom Harkin (D-IA), Chairman of the Senate-House Conference Committee on the farm bill, (Monday) announced a meeting for all Senate and House farm bill conferees.

The conference committee is scheduled for Tuesday, April 22, 2008, at 4:30 PM in room 345 of the Cannon House Office Building (Cannon Caucus Room).