Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Monday, August 25, 2008

Competition in Australia

Complaints about shrinking margins for growers are not unique to the U.S. The USDA FAS has published a report retail competition in Australia. Find it here. From the report about a study from the The Australian Competition and Consumer Commission:



During the inquiry, one significant concern raised was whether the gap between farm gate and retail prices for groceries has been widening in recent times, such that farmers and suppliers are getting less, while retailers are getting more. Concerns were also raised about the long-term future of small family-run independent supermarket operators and smaller retailers such as butchers, bakeries and greengrocers and their ability to compete with the major supermarket chains (Coles and Woolworths). The ACCC report focuses on competition in the Australian grocery sector – specifically whether a lack of competition is an explanation for the concerns identified above. The report analyses the extent to which competition (or a lack of it) has contributed to increased grocery prices. The supply chain and bargaining power of Coles, Woolworths and Metcash (the major wholesaler to the independent sector) are given detailed attention. The competitive position of independent retailers also comes under close scrutiny, with an analysis of the factors that may make it difficult for independent grocery retailers to compete aggressively with Coles and Woolworths on price. The report concentrates on basic staple products essential to households. A full copy of the inquiry report is available on the ACCC website here.

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Working with the Amish

I had a conversation with USDA officials today about the USDA GAP program. Look for coverage in The Packer. Got some clarification on the GAP audit and whether or not Amish agricultural practices - specifically the use of draft horses - are a deal breaker. Meanwhile, one New York observer said the Amish/Mennonite continuum of technology used in agriculture is not extremely clear. For example, some Amish may use a tractor, others may not. Here is a resource I found on the Web concerning "working with the Amish."

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FAS reports of note

I was scanning the USDA FAS Web site for attache reports of note. Here are a couple you might want to check out:

India agricultural situation - Aug. 14 From the report:
Signaling its willingness to return to the negotiating table for a global trade deal with the WTO, India said a resumption of the Doha development Round talks now depends on WTO Director General Pascal Lamy getting similar response from the U.S.

Also...

Tesco is planning to develop a wholesale cash and carry business in India, with an initial investment of $120 million in the first two years.


Japan food trends - Aug. 14 From the report:

Chinese medicinal cuisine, “yakuzen”, offers health benefits and medicinal efficacies similar to traditional Chinese medicine (TCM)* except it is prepared by a chef. One company offers such cuisines developed by a nutritionist and pharmacologist. A menu offers anti-aging items such as drinking vinegar.

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Looking for wisdom

My daughter just went through sorority rush week, complete with long days, "cut lists," tearful calls home, happiness, the fateful decision and a momentary bout of second guessing. There should be a profound quote that is applicable for such a roller coaster experience, but I'm still looking. Meanwhile, there are some quotes of the day for Fresh Talk readers:


Selected from Michael Moncur's Collection of Quotations - August 25, 2008

Politics is not the art of the possible. It consists in choosing between the disastrous and the unpalatable.
John Kenneth Galbraith (1908 - 2006)

This quote rings true relative to produce safety legislation. The end result may well be unpalatable in view of associated costs, but one can hope the industry can avoid unmitigated disaster.

I went into a McDonald's yesterday and said, 'I'd like some fries.' The girl at the counter said, 'Would you like some fries with that?
Jay Leno (1950 - )

So true.... the art of add on selling. Would you like a load of squash with those strawberries?

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Farm bill side by side and other ERS notes

Luis of the Fresh Produce Industry Discussion Group first tagged this new release from the ERS, a side by side comparison of the farm bill of 2008 and the farm bill of 2002. Find the ERS link here.

Another ERS study that I don't think I've linked to before is found here. The title of the report is called "Phytosanitary regulation of the entry of fresh fruits and vegetables into the United States." Lots of data here about who can export what to the U.S. From the overview:

Increased trade in fresh fruits and vegetables provides U.S. consumers with a variety of benefits including the possibility of improved nutrition by making these products available year-round. Imports of these products are regulated by USDA's Animal and Plant Health and Inspection Service (APHIS) to reduce the risk of inadvertent entry of pests and diseases that could harm agriculture, public health, navigation, irrigation, natural resources, or the environment.

This data product identifies which countries, under APHIS phytosanitary rules, are eligible to export to the United States the fresh fruits and vegetables that are most important in the American diet. Current data represent country eligiblility as of June 2008. Previous (2007) data represent eligibility as of February 2007. Data on the absolute and relative importance of these countries in international production and trade, individually and in aggregate, are also included. This data product supports the objectives of the Program for Research on the Economics of Invasive Species (PREISM) under which ERS funds and conducts research to improve the economic basis of decisionmaking concerning invasive species issues, policies, and programs.

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The Packer Extra - Aug. 25

Here are the items from The Packer Extra email newsletter this morning....




FDA finds salmonella at eight U.S. firms
The Food and Drug Administration has completed its first round of sampling produce items found in fresh salsa, and at least eight domestic companies had products that tested positive for salmonella. Go here for the story:

http://www.elabs3.com/ct.html?rtr=on&s=ikv,xxf0,4hgn,a0hg,2afx,df8d,kcoe


Industries dispute exclusion of nuts, dried fruit
While representatives of the nut and dried fruit industries are upset that they were excluded from the U.S. Department of Agriculture's fresh fruit and vegetable snack program in the 2008 farm bill, fresh produce industry advocates say those commodities were never intended to be part of the $1 billion initiative. Go here for the story:

http://www.elabs3.com/ct.html?rtr=on&s=ikv,xxf0,4hgn,j3za,kh5n,df8d,kcoe



Six L's introduces heirloom-style tomato
A new heirloom-style tomato is making its way to retail shelves. The Vintage Ripe tomato, grown and shipped by Six L's Packing Co. Inc., Immokalee, Fla., hit stores in mid-August in bulk and in four-pack clamshells. Go here for the story:

http://www.elabs3.com/ct.html?rtr=on&s=ikv,xxf0,4hgn,9pdf,6gz3,df8d,kcoe


Pineapple yields drop, prices soar
A phenomenon known as natural flowering has put a dent in late summer supplies of pineapples. Prices are up as much as 50% compared to f.o.b.s a year ago, and they could go higher, some importers said. Go here for the story:

http://www.elabs3.com/ct.html?rtr=on&s=ikv,xxf0,4hgn,j5wg,bu25,df8d,kcoe



Giant, Stop n' Shop launch changes chainwide
On Aug. 22, customers started seeing traces of the new look for Giant and Stop & Shop supermarkets. A new logo, employee uniforms, redesigned store platforms and new features such as enhanced fresh prepared foods and a "family-friendly" checkout lane are part of changes scheduled to take place . . . Go here for the story:
http://www.elabs3.com/ct.html?rtr=on&s=ikv,xxf0,4hgn,l3oc,18rm,df8d,kcoe

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Lamont powerpoint

George Lamont of New York - winner of The Packer/Grower 2008 Apple Man of the Year award - gave this powerpoint at the U.S. Apple Association's Marketing Conference in Chicago on Aug. 21. George took the role of presenting the crop overview, a function that former U.S. Apple exec Jim Cranney performed so well for so many years. Cranney moved on earlier this year to lead the California Citrus Quality Council. Note that the U.S. Apple Association's crop estimate of 207.1 million bushels for 2008 - down from the USDA estimate of 218.2 million bushels - was not included in this powerpoint since the US Apple estimate was released on Aug. 22.


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