Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, May 30, 2008

United Leadership Class

From the United Fresh Produce Association:

Each year, 12 new candidates are selected to take part in the United Fresh Produce Industry Leadership Program, a year-long program that teaches leadership skills to future industry leaders. Over the upcoming program year, these class members will participate in a number of trips focused on the core goals of the program: leadership development; business relationships; government and public affairs; and media and public communications. Throughout the program, the class also will take part in customized field and facility tours, train with expert educators, and meet with key industry leaders and innovators. The program begins in June with the first trip to Central/Northern California, followed by trips to Washington, DC/Wilmington, DE, Southern Florida, and Las Vegas, Nevada for the 2009 United Fresh convention.



Following are the members of the 14th Produce Industry Leadership Class:




Katy Blowers is a Marketing Specialist for Church Brothers Produce Company in Salinas, CA. Born and raised in the Salinas Valley, Katy has grown up as part of the agricultural community. After graduating from Cal Poly, San Luis Obispo, she joined the US Foodservice procurement office, beginning her immersion in the produce industry. Now at Church Brothers, she helped to establish CB Logistics, the transportation entity for Church Brothers, then moved on to the marketing department. Her role as Marketing Specialist encompasses promotions, communications, public relations, event coordinating and community outreach. Additionally, she plays an active role in the development and and promotion of the new Disney Garden line.

Ricardo Crisantes is the General Manager of Cris-P Produce Company, based in Nogales, Arizona. Cris-P Produce markets and distributes organic fruits and vegetables from Mexico. Ricardo is responsible for all aspects of the business for Cris-P Produce, including sales & marketing, grower relations and operations. He oversaw the introduction and development of “Organic Tomato-on-the-Vine,” one of the most successful lines for the company. Prior to joining Cris-P Produce, he was a National Sales Representative for Albert’s Organics. He attended the University of Southern California, earning a bachelor’s degree in Business Administration. He currently serves as the Chairman of the Board for Greenhouse Produce Company of Vero Beach, Florida.


Maile Shanahan Geis is the Marketing Director for the Buy California Marketing Agreement (BCMA), the entity that administers the “California Grown” consumer education campaign. In her role, she oversees the marketing and promotional activities of the statewide campaign, including public relations outreach, advertising programs, retail and foodservice merchandising, and industry communications. Prior to joining the BCMA, she served as marketing manager for Apio, Inc., a leader in the fresh-cut vegetable category. She graduated from California Polytechnic State University , San Luis Obispo, with a bachelor’s degree in agricultural business and a concentration in marketing.

John Gurrisi is the Director of Total Quality, Global Fresh Produce for Darden Restaurants Inc. His responsibilities encompass every aspect of fresh produce safety for over 1700 restaurants including well known brands such as Red Lobster, Olive Garden, Longhorn Steakhouse, Bahama Breeze, Seasons 52 and Capital Grille. Additionally, he serves as an active member on the United Fresh Food Safety and Technology Council, and currently holds a position as Conference Vice-Chair and Executive Board for the Conference for Food Protection. He is a Registered Environmental Health Specialist and he has Bachelors in Biology from California State University in Chico, CA.





Robert (Bob) Kirch is the Executive Vice President & Chief Operating Officer for Caito Foods. He joined Caito Foods in 1995 after holding several positions with Kraft Foods. Bob has worked with many aspects of the business including merchandising, procurement, marketing, and business development. In his current role, his primary responsibilities include the development, design, operation, and improvement of ongoing systems that create and deliver products and services. Caito Foods, founded in 1965, is a leading wholesale produce distributor based in Indianapolis , Indiana.



Amy B. Kunugi is the General Manager of Southern Colorado Farms located in Center, CO. She is a graduate of Cornell University with a bachelor’s degree in plant science. After college, she served in the U. S. Peace Corps for three years in Guatemala and Bolivia teaching vegetable production using appropriate technologies in rural communities. In her current role at Southern Colorado Farms, she is responsible for the production of lettuce, spinach, carrots, potatoes, cabbage and several other commodities on 3,800 center-pivot irrigated acres, which 1,600 acres are certified organic. She has served on the Colorado Certified Potato Growers Association Board, the local VALE board, and the accountability committee for San Luis Valley CSU Extension.


Justin Parnagian is a third generation Principal of Fowler Packing Co. based in Fresno, California. Fowler Packing is a grower, packer and shipper of stone fruit, table grapes and clementines. Justin attended UC Davis and graduated with a bachelor’s degree in agricultural economics. Growing up in the business, he has held numerous positions within the company, from the field to plant operations; he found the right “fit” in the sales department. As sales manager, he is responsible for all aspects relating to the marketing and sales for the company. He also serves on the Boards of the California Grape and Tree Fruit League as well as the California Tree Fruit Agreement.


Todd Penza is a Salesman at Pinto Brothers Inc., located on the Philadelphia Regional Produce Market. He represents the third generation to join the family-owned fruit and vegetable wholesale distribution business and the forth generation with A. Penza Trucking Inc. He received a bachelor’s degree in business administration from Villanova University and spent a year with a volunteer program in Chicago before joining the business. He is responsible for sales to a variety of customers, buyers and brokers that enter the market daily and he oversees operations to ensure that the customer orders are delivered properly. He also coaches high school football and lacrosse at Archmere Academy.



Mark Shaw began his produce career with Markon Inc. in 1985 by learning the business from the ground up as a Quality Control Inspector. He traveled between Salinas, California to Yuma, Arizona for two years, before he shifted to the office as a Buying Coordinator. From 1988 through 2002, he worked as a Produce Buyer responsible for purchasing both commodity and value added products. During this period he started taking more operations responsibilities, where he is now responsible for all aspects of Markon’s buying office and inspection staff.



Tammy Sparkman is a Produce Buyer for Sam's Club. She has extensive retail experience, and began her career in produce when she joined Sam’s in 2000 as a replenishment associate. She has been promoted several times from Assistant Buyer in Floral, Assistant Buyer in Produce, and now currently Produce Buyer 2. She has direct responsibility for the following commodities in all U.S. locations: tomatoes, peppers, cucumbers, melons, apples, pears and cherries. In 2007, she was selected as one of Produce Business’s “Forty under Forty” and has attended multiple management courses which include Walton Institute, Dale Carnegie, Leadership Foundations, Global Food Safety Initiatives and Sustainability Training.




Brian Thure is the Vice President of Processing and Distribution Operations for River Ranch Fresh Foods. He oversees plant production, operations engineering, distribution and logistics, operations accounting and purchasing. His first position at River Ranch started in 1997 as a Sales Analyst, after two years of playing offensive line for the Washington Redskins. He rejoined River Ranch in 2003 full time after a four year term of coaching college football for the University of Colorado and University of Idaho. He graduated from the University of California, Berkeley in with a bachelor’s degree in business administration with an emphasis in accounting.



Mike Wise joined the Horton Fruit Company, Louisville, KY in 2002 as a Management Executive. His position supervises all the changing dynamics of procurement and enhancing vendor rel
ations, managing production costs for specific commodities, growing existing customer sales and new business development with a focus on value-added merchandising. Prior to working at Horton Fruit, he held various positions at Chiquita Brands Int’l. in Cincinnati, OH, where he started his produce career 14 years ago in the transportation services and sales services group, which led to a position of Business Development Manager. He has a bachelors degree in accounting from Wilmington College of Ohio and coaches youth sports year-round.













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PACA fee increases - final rule

From the May 30 Federal Register, a final rule about PACA fee increases. Follow the link for comments about the rule.

Amendments to Rules of Practice Regulations Under the Perishable Agricultural Commodities Act (PACA) To Increase Reparation Complaint Filing and Handling Fees

AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
Summary: The Department of Agriculture (USDA) is amending the Rules of Practice under the Perishable Agricultural Commodities Act (PACA) to increase from $60 to $100 the fee for filing an informal complaint;
and to increase from $300 to $500 the fee for handling a formal complaint.

DATES: Effective Date: June 30, 2008.

FOR FURTHER INFORMATION CONTACT: John Koller, Director, Dispute Resolution Section, 202-720-1442.

SUPPLEMENTARY INFORMATION: This final rule is issued under authority of Section 15 of the PACA (7 U.S.C. 499o). The Perishable Agricultural Commodities Act (PACA or Act) establishes a code of fair trade practices covering the marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce. The PACA protects growers, shippers, distributors, and retailers dealing in those commodities by prohibiting unfair anf fraudulent trade practices. In this way, the law fosters an efficient nationwide distribution system for fresh and frozen fruits and vegetables, benefiting the whole marketing chain from farmer to consumer. USDA's Agricultural Marketing Service (AMS) administers and enforces the PACA.
The PACA program is financed by license and user fees and has an annual operating budget of approximately $10 million. Currently, annual expenses exceed revenue by $3 million, a disparity that is projected to increase each year by another 3 to 5 percent. Greater than half oft he program's expenditures are payroll and related expenses, followed at a distant second by the cost of maintaining office space through rent, communications, and utility expenses. The PACA license and complaint filing fees have remained unchanged since 1995, in part due to a one-time Congressional appropriation of $30.45 million deposited into the
PACA reserve fund on October 1, 2000.
One of the most important functions of the Act is to require that PACA licensees fulfill their contractual obligations, and the Act provides a forum, before the Secretary, where firms that buy and sell fruits and vegetables can settle commercial disputes outside of the civil court system and recover damages for losses they have suffered. These cases are called ``reparation cases.'' In 1995, Section 6 of the PACA (7 U.S.C. 499f) was amended to require a $60 filing fee for filing an informal reparation complaint and a $300 handling fee for filing a formal reparation complaint with USDA under the PACA. Section 6 of the PACA also authorized the Secretary of Agriculture to alter the filing and handling fees by rulemaking. During its January 2007 meeting, the Fruit and Vegetable Industry Advisory Committee (Committee) recommended to the Secretary that the fee for filing an informal reparation complaint be increased to $100, and the handling fee for filing a formal reparation complaint be increased to $500. The Secretary accepted the Committee's recommendation. This final rule implements the recommendation by increasing from $60 to $100 the fee for filing an informal reparation complaint; and increasing from $300 to $500 the fee for handling a formal reparation complaint.
PACA Rules of Practice applicable to reparation complaint proceedings inform the industry of USDA's procedures and requirements for the handling of informal and formal complaints under the Act (7 CFR
part 47). Section 47.3(a) of the current Rules of Practice (7 CFR 47.3(a)) requires that a $60 filing fee accompany any written correspondence and related documents pertaining to the transaction(s)
involved in the dispute before AMS can process and open an informal reparation complaint on behalf of the complainant. When an informal reparation complaint is filed, AMS makes every effort to assist the parties in reaching a settlement of their dispute while gathering documents as part of its investigation. Mediation
services are also offered to the parties throughout the informal handling of the complaint. If an informal settlement cannot be reached, however, the complainant is given the opportunity to file a formal reparation complaint. Section 47.6(c) of the current Rules of Practice (7 CFR 47.6(c)) requires that a complainant filing a formal reparation complaint pay a $300 handling fee to AMS to initiate formal complaint proceedings. Under formal complaint procedures, USDA's Judicial Officer issues a binding decision in the case. In Fiscal Year 2007, there were 1575 informal reparation complaints and 347 formal reparation complaints filed with AMS under the PACA. Over 91 percent of the informal complaints filed under the Act were resolved informally within 4 months. These complaints involved produce transactions valued at over $18.4 million. USDA issued formal decision and orders in 347 cases involving award amounts totaling approximately $5.8 million. The largest award issued by USDA in Fiscal Year 2007 ordered payment of over $257,000 to a fruit and vegetable dealer.
In Fiscal Year 2006, AMS received 1483 informal reparation complaints of which 92 percent were resolved informally within a 4- month timeframe. In Fiscal Year 2006, informal settlements exceeded $18.7 million. There were 300 formal reparation complaints filed under the Act that year. AMS does not expect this final rule to raise a significant amount of revenue for the PACA program (estimated at $144,000 annually), but
by increasing the fees for filing informal and formal reparationcomplaints, AMS believes that the burden for financing the PACA program will be shifted more towards those who benefit directly from using PACA
program services.


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