A question from Rick

A question from our good friend Rick Bella of America's Second Harvest. I think of the USDA's Agricultural Prices report first. Does anyone have any other thoughts for Rick on cost comparisons?



Hi Tom,
I know that you track produce f.o.b. costs over past years and usually post those to the blog.

I have pasted below our experience with costs over the past 5-years and wonder if you have comparable data in the categories listed.

Naturally, packs and sizes varied but we’d like to just get a feel for what the industry did on like items listed. Can you assist or point me in a direction to obtain this type of data? Some of our own increases were due to program pack changes moving to more retail sized packaging which naturally costs more.

Thanks much and I hope we can get together at United. Rick

F.O.B. cost per pound - top 10	2003-2007 percentage change	4 year Compound annual growth rate
Potatoes	46.0%	9.9%
Apples	6.1%	1.5%
Watermelon	28.2%	6.4%
Onions	103.0%	19.4%
Yams	106.7%	19.9%
Carrots	29.1%	6.6%
Cabbage	36.7%	8.1%
Oranges	-56.6%	-18.9%
Pears	270.0%	38.7%
Sweet Corn	81.0%	16.0%

Colombia Tariff Ticker

I like this concept as a visual way to present the argument for free trade. Check out the link here. From the office of Secretary Schafer:


Statement by Secretary Schafer on the launch of the Colombia Tariff Ticker

The live calculation shows the rising costs on American exports

Today, the Bush Administration launched a tool for Americans to see just how much money is being paid to Colombia in tariffs for our products going into their country, while the Colombian products arrive on our shores duty free!
President Bush sent Congress legislation to implement the Colombia Free Trade Agreement. (FTA) The House changed the rules in the middle of the game, delaying a vote to implement the agreement. This important agreement would provide a level playing field for America's farmers, ranchers and businesses. Instead, the House is continuing to work against the best interests of the American people.
At a time when Americans are living and working in a strained economy, why is it that Congress has voted to allow Colombian goods to arrive on our shores duty free, but will not vote to give our agricultural products shipped to that country the same status? Apparently Congress' priorities are not with the American people.
Since the Colombia FTA was signed, nearly $1 billion in tariffs have been assessed to U.S. products being exported to Colombia. In the meantime, Colombian exports have come into the U.S. duty-free. This is not in the best interest of America and certainly not in the best interest of American farmers.
With the Agreement in place, tariffs on more than 70 percent of U.S. agricultural products destined to Colombia will be immediately eliminated.
Once implemented, our trade relationship with Colombia will only improve. By establishing more equitable market access conditions, the Agreement will level the economic playing field for American farmers, ranchers, manufacturers, and service providers who have faced barriers to Colombia's market.
It is time for Congress to act in the best interest of America's economy, America's farmers, and America's citizens. It is time for Congress to pass legislation to implement the Colombia Free Trade Agreement.

One week extension to the farm bill

I've been working on a couple stories for The Packer and a column, but I did listen in to the morning session in the Senate, with a colloquy between Sens. Craig, Harkin and Chambliss about the farm bill. End result was that Harkin wanted a two week extension and received a one week extension, but everybody is feeling pretty good that the conference is moving toward a basic conclusion to the whole package by Wednesday or so next week.

Rice rationing

In this the new golden age of agriculture, it seems consumers may soon need some gold coin to buy staples. This story from the UK talks about panic buying of rice:

The move by the world’s biggest retailer, which owns Asda, constitutes the first time that food rationing has been introduced in the US. While Americans suffered some rationing during the Second World War for items such as petrol, light bulbs and stockings, they have never had to limit consumption of a key food item.
In Britain rice is being rationed by shopkeepers in Asian neighbourhoods to prevent hoarding. Tilda, the biggest importer of basmati rice, said that its buyers — who sell to the curry and Chinese restaurant trade as well as to families — were restricting customers to two bags per person. “It is happening in the cash-and-carries,” said Jonathan Calland, a company executive. “I heard from our sales force that one lady went into a cash-and-carry and tried to buy eight 20kg bags.”
Wal-Mart said that Sam’s Club, its wholesale business, which sells food to restaurants and other retailers, had limited each customer to four bags of long-grain white rice per visit. In the past three months wholesalers have experienced a sharp rise in demand for food items such as wheat, rice and milk as businesses stocked up to protect themselves against rising prices.

TK: As a guy who thinks having two jars of peanut butter is being "stocked up" it does give one pause to see public conciousness of rising food prices - perhaps followed by fear of dwindling supply - begin to drive decisions at retail.