Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Saturday, October 18, 2008

Commodity bust leads to environmentalism bust?

Writing in The National Post, Lawrence Solomon said the public is getting green fatigue. Politicians who push "green taxes" may do so at their own peril, and corporations who tout sustainability may have their veracity doubted. Is the sustainability movement over before consumers have even used their reusable bag? From the Post:

Stock market indexes have plummeted from their inflated peaks. Oil and other commodities have likewise plummeted. The next commodity to tumble from unsustainable peak levels: environmentalism.

In part, I am making this prediction because, in my 30 years as an environmentalist, I have never seen so many governments and so many corporations so profusely espousing so many environmental causes. Where promoting environmentalism was once seen as daring and counter-cultural, today it has become banal, no longer the exclusive preserve of a Body Shop chain, but of every retailer down to Wal-Mart. For the same reason that clothes go out of fashion after the masses embrace them, mass-marketed environmentalism will come to be disdained. That won't sell for long.

I am predicting a collapse of today's Wal-Mart environmentalism for another reason, too: Much of it is misguided, based on misunderstanding and vacuity.

Global warming is by far the biggest such example. Those who have been following my Denier series in these pages know that large numbers of distinguished scientists dispute the conventional wisdom on climate change, making absurd the claim that the science is settled on climate change. And yet government and corporate propaganda -- in global warming and elsewhere -- strip away all subltety and uncertainty in their public relations programs, portraying environmental problems and proposing environmental solutions in cartoon-cutout simplicity that, more often than not, accomplish nothing good or make matters worse.

While governments and industry discount major environmental issues that affect crown corporations and crown resources (nuclear power, forestry), they stir up concerns in consumer areas that have high visibility and often pose few true hazards. The results are often perverse: Blue Box recycling programs that promote waste; ethanol blends for automobiles that benefit the farm lobby while depleting the land and fouling the air; bans on incandescent bulbs that ignore consumer preferences but please light bulb manufacturers seeking lucrative new markets; public transit systems that run near-empty buses along low-density routes; "Right-to-Farm" laws that legalize polluting practices; demonization of private water systems, including bans on water bottles, when private systems have a superior safety and environmental record -- in short, most of the environmental policies that governments put before the public are wrong-headed.

A third reason for my prediction that environmentalism has peaked is the instinct for self-preservation among the political leadership. Thinking they could raise revenues while appearing green, opportunistic politicians have been promoting environmental taxes without having a credible case to make. The result, increasingly, is political ruin. The federal election results this week are, in good part, a testament to Liberal leader Stephan Dion's failure to sell his Green Shift -- the Liberals obtained the lowest share of the vote since Confederation. In England, where citizens face the world's highest burden of green taxes, the ruling Labour Party received a miserable 3% of the vote in by-elections earlier this year and London's mayor, the greenest in Europe, was thrown out of office. Across Europe, once-green politicians are now backing away from their earlier commitments to push green agendas.

In stock and commodity markets, when values fall from unrealistically high levels, they often fall further than justified. When environmentalism falls from its high values on the realization that many concerns have been oversold, it too will likely fall further than justified. Environmentalism will then need to reestablish public trust before real environmental gains can be made.

As history shows, after being burned in the stock market, investors often stay away for years, fearful of being burned again. The lack of trust harms the greater economy. We have no history of what happens when citizens feel taken in by false environmental claims. But we may soon find out.

- Lawrence Solomon is executive director of Energy Probe and author of The Deniers.

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Precious and few

I always keep an eye out for interesting USDA FAS reports, but lately it seems there has been a drought of reports pertaining to the fruit and vegetable market. However, I noticed a 55 page report on the Japanese market that's more than a worthy read. Find it here. From the report:

From the summary page:

Even with the recent food scares, there continues to be significant opportunities in the Japanese food market for U.S. exporters. For example, Japanese consumers are becoming more health conscious and organic, naturally prepared, and functional foods are growing in popularity.


Later...

As of 2007, supermarkets handled 34% of food retail trade. Over the last 10 years, total store sales have jumped by more than 40%, while the number of stores has risen by 20%. Leading supermarkets are building larger stores, aided by declining land prices and the easing of restrictions on store size. Average retail floor space nearly doubled to 1,000 m² in 2004, compared to 500 m² - 600 m² in 1991.

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National Retail Report - Oct. 17

From the USDA National Retail Report of Oct. 17:

Fall Season Promoted Nationwide
Retailers continued to promote the fall season and its activities, especially Halloween. Ads were prevalent nationwide for such items as pumpkins, candy, apple cider, Indian corn, and caramel apples. Retailers featured many apple varieties not included in this report, such as Cortland, Empire, and the increasingly popular Honeycrisp. In addition, there were many
promotions related to Breast Cancer Awareness Month. Overall this week, the number of fresh produce ads changed minimally for both fruits and vegetable. The top 5 featured items were: grapes, strawberries, pears, OTV tomatoes, and asparagus. A few items featured in many ads this week that are not captured in this report were winter squash, kiwi, and tangerines.

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