USDA National Retail Report - July 18

From the July 18 USDA National Retail Report:


Fresh Produce Ads Rebound After Last Week’s Lag
Summer themed ads continue yet again this week. However, some retailers appeared to be highlighting more general grocery items and staples prominently than in previous weeks. There were an abundance of “10 for $10” specials throughout the store and across the country. Retailers also continued to take the opportunity to highlight seasonally available and locally grown fresh produce. After last week’s decline, overall fresh produce ads rebounded with an increase of nearly 10%. Fruit ads increased more than 9% and vegetable ads increased almost 11%. As evidenced by the top 5 featured items (peaches, grapes,
nectarines, plums, and cherries), fruit ads continued to eclipse vegetables in ad space, accounting for nearly 62% of total produce ads. Stone fruits were especially popular featured items and corresponded to an abundance of domestic product this season.




Fruits as Percentage of Total Fruit Ads - July 18, 2008
Bananas 1%
Avocadoes, hass 5%
Apples, red delicious 0%
Bananas, organic 0%
Watermelon, seedless 3%
Watermelon, mini 4%
Blueberries 0%
Cantaloupe 6%
Honeydew 1%
Grapefruit, red 0%
Grapes, green/red 11%
Clementines 0%
Cherries 8%
Strawberries, organic 5%
Strawberries 8%
Plums 9%
Pineapple 3%
Limes 3%
Lemons 1%
Oranges, navel 0%
Peaches 13%
Pears, bartlett 0%
Mangoes 6%
Nectarines 11%


Vegetables as Percentage of Total Vegetable Ads -July 18, 2008
Broccoli, organic 1%
Broccoli 4%
Beans, round green 5%
Tomatoes on the vine 11%
Tomatoes, organic 1%
Tomatoes 3%
Cabbage 2%
Carrots, baby organic 4%
Carrots, baby 8%
Asparagus 1%
Tomatoes, grape organic 3%
Tomatoes, grape 6%
Celery 1%
Corn 4%
Cucumbers 7%
Lettuce, iceberg 2%
Lettuce, romaine 3%
Mushrooms,white 9%
Onions, yellow 3%
Sweet Potatoes 0%
Squash, zucchini 9%
Potatoes, russet 1%
Peppers, bell red 3%
Peppers, bell green 3%
Onions, sweet 7%

Doha - Agreement at hand?

Yes, there are still government officials working on the Doha global trade talks. Yawn . From the office of Sen. Tom Harkin:


U.S. 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, joined 15 members of the Committee today urging a balanced outcome to Doha Round trade negotiations. In a letter to U.S. Trade Representative Susan Schwab, the lawmakers expressed concern over decisions in the agricultural negotiations that can impact domestic producers. Trade ministers from key World Trade Organization member countries are expected to meet next week in Geneva in an effort to complete a framework agreement for the Doha Round.

“Twice before, the United States rightly rejected an unbalanced framework agreement and opted instead to continue discussions towards achieving a comprehensive result that will generate new trade flows,” wrote the Senators. “Discussion in Geneva must fulfill the underlying mandate of the Round to foster development, yet this objective need not and cannot be an exercise in which developed countries like the United States accept an unbalanced outcome. Neither U.S. agriculture nor individual commodities should have to shoulder an unfair burden of the negotiations. If you are presented with an unbalanced text, we urge you to reject it in favor of continued negotiations.”

Text of the letter is below:


July 18, 2008

The Honorable Susan Schwab
United States Trade Representative
600 17th Street, N.W.
Washington, D.C. 20508

Dear Ambassador Schwab:

As you prepare for the World Trade Organization ministerial meeting next week, we want to express our keen interest in the negotiations. Unfortunately our trading partners up until now have not committed to a balanced outcome involving an ambitious result in market access. Reductions in trade-distorting domestic support must be accompanied by real market access gains that are comparable in magnitude and will provide net gains for U.S. agriculture. Anything less will not receive our support.

The October 2005 proposal put forward by the United States would require substantial cuts in U.S. farm programs. These reductions in domestic support were carefully calibrated in relation to market access gains. However, many of our trading partners continue to call for greater cuts in U.S. farm programs while refusing to make significant tariff reductions. The provisions of the most recent text on sensitive products, special products, the proposed new special safeguard mechanism (SSM) and exceptions for recently acceded members do not inspire much confidence that a balanced agreement can be reached.

Twice before, the United States rightly rejected an unbalanced framework agreement and opted instead to continue discussions towards achieving a comprehensive result that will generate new trade flows. Discussion in Geneva must fulfill the underlying mandate of the Round to foster development, yet this objective need not and cannot be an exercise in which developed countries like the United States accept an unbalanced outcome. Neither U.S. agriculture nor individual commodities should have to shoulder an unfair burden of the negotiations. If you are presented with an unbalanced text, we urge you to reject it in favor of continued negotiations.

Very truly yours,

Tom Harkin Saxby Chambliss
Patrick Leahy Pat Roberts
Kent Conrad Thad Cochran
Max Baucus Lindsey Graham
Blanche Lincoln Norm Coleman
Debbie Stabenow Mike Crapo
E. Benjamin Nelson John Thune
Ken Salazar
Amy Klobuchar
Robert Casey, Jr.

Peppers and avocados - salmonella

Here is David Mitchell's coverage from The Packer this afternoon. From David's story:


Grande Produce, Hidalgo, Texas, has voluntarily recalled avocados, serrano peppers and jalapeño peppers after lab tests by state health departments in Texas and North Carolina found salmonella in the products.Texas Department of State Health Services said in a July 17 news release that the salmonella found by that agency in the hot peppers did not match the Salmonella Saintpaul strain responsible for more than 1,200 reported illnesses in 42 states, Washington, D.C., and Canada.However, test results to determine the salmonella strain detected in jalapeños and avocados by North Carolina officials are pending.Meanwhile, the North Carolina Department of Agriculture and Consumer Services said it has asked a Charlotte food distributor to recall jalapeño peppers and Hass avocados it received from the Texas distributor.“We do not know yet whether this is the Salmonella Saintpaul strain, but these potentially contaminated products must be removed regardless,” North Carolina public health director Leah Devlin said in a news release.

Chat - Dan Galbraith

Today I had a Fresh Talk chat with Dan Galbraith, sections editor for The Packer. Dan is responsible for making sure The Packer's special sections - primarily addressing growing and marketing of produce - are well planned and executed. Find previous chats here.

11:51 AM me: Great thanks for helping me out with another Fresh Talk chat. First of all, tell us where you were born and raised, so to say

11:55 AM sections editor: Happy to oblige. Believe it or not, this is the first chat I've ever done, so please excuse my formality with capitalization and punctuation -- occupational hazard, I guess. :) Anyway, I was born in Omaha, Neb. some years ago. Let's not get any more specific than that on this point! Sometimes, I think I'm still in the process of being "raised" or "growing up", so to speak, but I spent my first 18 years in Omaha. Pretty sheltered upbringing, I guess you'd say. I wasn't even allowed to drive on the interstate until I went to college at Central Missouri State University in Warrensburg.

11:58 AM me: Nebraska - you have that in common with our Markets Editor Andy Nelson, of course - and I also come home to my parents in Bertrand, Neb. "The Good Life" as they say. Dan, you have been a guest blogger for Fresh Talk in the past and I think you said you might be next week at the PMA Foodservice show, so thanks for your work there. Before I ask you what you do at The Packer (for the benefit of our readers) what was your path to The Packer? How did you get from Central Missouri State to Vance Corp.?

12:02 PM sectionseditor: I started as a small-town sportswriter, became a sportswriter/columnist, developed into a sportswriter/ columnist/photographer, morphed into a sportswriter/columnist/photographer/page designer. Then I took a real leap and became a managing editor/design editor/columnist/photographer for a daily newspaper. Recently added Web site administration, sections editing and blogging to my repertoire ... Let's just say that every employer I've ever had has put the phrase "Other duties, as assigned" on my job description! :) I stay pretty busy.

12:04 PM me: Versatility is needed today, for sure. Now tell us a little bit about what the"sections editor" does for The Packer. You have a lot to keep track of, am I right?

12:11 PM sectionseditor: The Packer has 130-140 special sections annually, and I am in charge of long-range planning for those, assigning staff writers and freelance writers to complete them, putting together the sections calendar about a year in advance and constantly updating it, doing first-read editing of all the material that comes in for special sections on a week-to-week basis. On top of all that, though, I also supervise staff writers in our field offices, provide supervisory support for freelancers scattered about and basically run The Packer's student internship program. The supervisory stuff is probably what I would consider to be the most enjoyable part for me because I like playing what role I can in developing people. I also enjoy the long-range planning -- it's like working a crossword puzzle, which is challenging but also fun.

12:13 PM Oh, almost forgot -- I also write editorials, columns and sometimes news stories, provide input at editorial board and other meetings, cover trade shows and other special events and am in charge of editorial responsibilities for our Produce Pulse survey project, which is very interesting.

me: Your work accounts for a lot of pages in The Packer every year. Where can readers contact you if they have a comment or suggestion for a new special section, whether that is a shipping section, know your market or section of another type?

12:14 PM sectionseditor: I can be reached at dgalbraith@thepacker.com or 913-438-0767.

12:15 PM me: Dan, what do you like todo in your down time? Any family vacations this year?

12:17 PM sectionseditor: Most of my vacation time is spent visiting relatives and friends out-of-state, and sometimes I just like to take off a couple days at a time and do little more than sleep, eat and watch TV or movies. Sometimes that can be the best kind of vacation, don't you think? But you're more of a traveler, I know!

12:18 PM me: Nothing better than rolling up to mom and dad or a sister or brother - in fact we have my sister visiting us from Texas tonight... Dan I'll let you go cause I've kept you quite a while. Thanks for the chat and we'll look forward to some more blog posts from you in the future, too.

12:19 PM sectionseditor: Thanks, Tom. Enjoy your weekend!

Headlines - Consumer confidence and traceability

Major league attention is being paid to the fresh produce industry these days. While the attention isn't always about the wholesome goodness or the unfailing attributes of fruits and vegetables, it is remarkable scrutiny nonetheless. Here are a couple of headlines from high profile writers that illustrate the point;

Tracking produce proves complex The Washington Post
From the story:

Investigators said the complexity of the produce distribution system has been their biggest impediment, and some produce industry leaders agree that tracing fruits and vegetables could be easier. Though the technology to do so already exists in the form of bar codes that appear on nearly everything we buy, it could take as long as five years before the entire food industry applies it to food safety.
Produce outbreaks are notoriously hard to trace. In at least half of all produce outbreaks, health officials have never determined what made people sick. The short shelf life of most fresh fruits and vegetables means it's less likely the items will still be in people's refrigerators when investigators come looking. Plus, there are many paths produce can take to reach consumers. In the salmonella probe, health officials said the practice of repacking made it harder to trace tomatoes to their source. Repacking involves sorting produce for size and color to meet a customer's specifications. Fresh tomatoes are often repacked, sometimes more than once. For investigators, the practice can open a multitude of new leads. Investigators trying to find the source of contaminated jalapeños have run into "the same spider web," said David Acheson, a top food safety official at the FDA.
For some produce industry leaders, references to spider webs sound like excuses for mistakes in judgment. "We are not dealing with failure of traceability. We are dealing with the fact that the trace-back did not support the single point of contamination hypothesis," said Tom Stenzel, president of United Fresh Produce Association. "We would submit that trace-back worked; we just weren't listening carefully enough to what it was telling us."

TK: The assertion by Stenzel and other industry leaders that "trace-back" worked will be closely scrutinized in upcoming hearings. Will this claim be supported by the officials at FDA or CDC? How does this position sync with the desire to get the industry moving on broader progress on traceability solutions for the supply chain? If trace-back worked, what's the rush on the part of industry players in moving forward with the traceability initiative? There is a delicate balance act going on between defending the industry, pointing out the errors of the FDA and preparing the industry for new demands and mandates.

Another headline: Food Safety Worries Change Buying Habits

TK: Jay Martini also linked to this AP story in another blog post. The upshot is that consumers "overwhelmingly support" setting up a trace-back system for produce, with four in five supporting "enforceable federal standards." As if on cue, the stars are aligning for Congressional action, it would seem.

Traceability and salmonella hearings loom large

Luis of the Fresh Produce Industry Discussion Group notes that the anticipated traceability hearing in the House Agriculture Committee, subcommittee on Horticulture and Organic Agriculture has been scheduled for 1 pm on July 30 at the Longworth House Office Building.

The topic: To review legal and technological capacity for full traceability in fresh produce.


Meanwhile, the House Energy and Commerce Committee, subcommittee on oversight and investigations has scheduled a hearing July 31. From the House Web Site:


The Recent Salmonella Outbreak: Lessons Learned and Consequences to Industry and Public Health Subcommittee on Oversight and Investigations
Hearing10:00 a.m. in room 2123 Rayburn House Office Building



On the Senate side, there is a hearing July 23 on childhood obesity. From the Senate Health Education Committee, subcommittee on Children and Families


Title: Childhood Obesity: The Declining Health of America’s Next Generation – Part II
Date: Wednesday, July 23, 2:30 p.m.
Place: SD-430


TK: The traceability and salmonella hearings will be very important for the fresh produce trade. No list of witnesses yet, but whoever takes a turn on a panel for those two subcommittees will be asked some tough questions and be provided ample opportunity to make a defense of the industry.

Free At Last?

Where were you when word came from the front?

I was negotiating downtown Boston traffic when I heard the breaking news on the radio from Acheson that, yes, tomatoes are OK. My goodness, this came as such a revelation that I wanted to stop the rental car in the middle of Boylston Street, get out and scream to the assembled multitudes, forget about your beloved Red Sox! We can eat tomatoes again, I'm telling you!

Of course, the FDA & CDC want it to be over, but then the mind wanders & as a result I must respectfully submit the following dialogue from that educational thriller, 'Animal House':


D-Day: War's over, man. Wormer dropped the big one.
Bluto: Over? Did you say "over"? Nothing is over until we decide it is! Was it over when the Germans bombed Pearl Harbor? Hell no!
Otter: Germans?
Boon: Forget it, he's rolling.
Bluto: And it ain't over now. 'Cause when the goin' gets tough... [thinks hard] Bluto: the tough get goin'! Who's with me? Let's go! [runs out, alone; then returns] Bluto: What happened to the Delta I used to know? Where's the spirit? Where's the guts, huh? "Ooh, we're afraid to go with you Bluto, we might get in trouble." Not me! I'm not gonna take this. Wormer, he's a dead man! Marmalard, dead! Niedermeyer...
Otter: Dead! Bluto's right. Psychotic, but absolutely right. We gotta take these guys. Now we could do it with conventional weapons that could take years and cost millions of lives. No, I think we have to go all out. I think that this situation absolutely requires a really futile and stupid gesture be done on somebody's part. Bluto: We're just the guys to do it.
D-Day: Let's do it.
Bluto: LET'S DO IT!

Man, it feels good just to read that. Makes me all warm & fuzzy inside.

Back to reality, then. The financial cleanup from this toxic waste is one thing, but the psychological rebound will be quite another. Check out the AP from this morning:


WASHINGTON - Troubled by the tainted tomato scare, nearly half of Americans are concerned they may get sick from eating contaminated food and are avoiding items they normally would buy, an Associated Press-Ipsos poll has found.

Although three in four remain confident about the overall safety of foods, the poll found that consumers overwhelmingly support setting up a tracing system for produce in the wake of the salmonella outbreak first linked to tomatoes and, now, hot peppers.


Enjoy your weekend, folks.

Jay