Vegetables and Melons Outlook - Vanishing asparagus acreage

From the 44-page Oct. 23 Vegetables and Melons Outlook. The section on asparagus caught my eye....

Production of fresh-market asparagus declined 22 percent in 2008 to 0.72 million cwt with reduced acreage (especially in California) accounting for the drop. California growers have reduced asparagus area 50 percent over the last decade in response to increased import competition, greater acreage in other States and lower prices. Area has also been seriously eroded in Washington State, largely the result of plant closings/moving by asparagus processors. In 1989, Washington harvested 32,000 acres of asparagus but is now down to just 6,500 acres. In Michigan, where most of the crop is processed, harvested area dropped from 23,000 in 1989 to 11,200 acres in 2008. Between 2000 and 2008, the value of the U.S. fresh-market asparagus crop has dropped from $176 million to $64 million.

Imports have continued to fill in behind domestic producers in 2008. The volume of fresh asparagus imports during January-July was up 15 percent from the same period a year earlier and 73 percent above that of 5 years ago. Fresh asparagus imports are three times as large as a decade earlier, with imports now satisfying two-thirds of domestic consumption. Mexico and Peru accounted for most of the fresh asparagus volume imported through July. Although both countries are year round asparagus suppliers, volume from Mexico is greatest during the winter, while shipments from Peru are strong from late summer through the end of the year. With imports filling in for domestic output, U.S. per capita use of asparagus in 2008 is expected to remain steady at 1.17 pounds.

"Making money not sufficient justification for violating a rule"

Breaking news on the no-match rule. From the AP: In the story, Homeland Security Secretary Michael Chertoff is quoted as such:

"Groups like the Chamber of Commerce have told us, they haven't been coy about it ... there are many businesses that rely on illegal migration in order to carry out their activities and it would hurt them if they had to carry out the rule," Chertoff said. "In my experience, making money is not a sufficient justification for violating the rule since most people break the rule in order to make money."


TK: Them are fighting words; meanwhile the Chamber of Commerce says the cost of the regulation is prohibitive on small business; the government's own estimate shows 35,000 to 167,000 legitimate workers would not be able to work because of the rule, the chamber claims.

United Fresh said this in a release about the development:

"At this time we are consulting with our legal team to determine next steps in this process," said Robert Guenther, senior vice president of public policy at United Fresh. "Based on a preliminary analysis of the SFR, it appears there have been very little changes to the actual rule published last year. If the judge agrees that DHS has addressed all procedural objections, the No-Match rule could be effective immediately," Robert added.



For the link to the 100-page supplemental final rule, including its estimation of costs on businesses, go here.

Door open to protectionism

The USDA issued a final rule today that seems to open the door to state-sponsored protectionism in the trade of fruits and vegetables. Here is a summary of what the USDA did:

Special Need Requests Under the Plant Protection Act
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Final rule.
SUMMARY: We are amending our domestic quarantine regulations to establish a process by which a State or political subdivision of a State could request approval to impose prohibitions or restrictions on the movement in interstate commerce of specific articles that are in addition to the prohibitions and restrictions imposed by the Animal and Plant Health Inspection Service. The Plant Protection Act provides that States or political subdivisions of States may make such special need requests, but there are currently no procedures in place for their submission or consideration. This action establishes a process by which States may make a special need request.

DATES: Effective Date: November 24, 2008.

Here is the background on the topic from the USDA rule....

U.S.C. 7701 et seq.) gives authority to the Secretary of Agriculture to prohibit or restrict the importation, entry, exportation, or movement in interstate commerce of any plant, plant product, biological control organism, noxious weed, article, or means of conveyance if the secretary determines that the prohibition or restriction is necessary to prevent the introduction of a plant pestor noxious weed into the United States, or the dissemination of a plant pest or noxious weed within the United States. The Secretary has delegated this authority to the Administrator of the Animal and Plant Health Inspection Service (APHIS). Under section 436 of the PPA (7 U.S.C. 7756), no State or political subdivision of a State may regulate the movement in interstate commerce of any article, means of conveyance, plant, biological control organism, plant pest, noxious weed, or plant product in order (1) to control a plant pest or noxious weed; (2) to eradicate a plant pest or noxious weed; or (3) to prevent the introduction or dissemination of a biological control organism, plant pest, or noxious weed if the Secretary has issued a regulation or order to prevent the dissemination of the biological control organism, plant pest, or noxious weed within the United States. The only exceptions to this prohibition are when a State or political subdivision of a State imposes regulations which are consistent with and do not exceed the regulations or orders issued by the Secretary, or when the State or political subdivision of a State demonstrates to the Secretary, and the Secretary finds, that there is a special need for additional prohibitions or restrictions based on sound scientific data or a thorough risk assessment. On April 4, 2006, we published in the Federal Register (71 FR 16711–16716, Docket No. APHIS–2005–0103) a proposal 1 to amend the regulations by adding a new ‘‘Subpart—Special Need Requests’’ (7 CFR 301.1 through 301.1– 3) in which we set out procedures forthe submission and handling of special need requests. We solicited comments concerningour proposal for 60 days ending June 5, 2006. We received 17 comments by that date. They were from representatives of State agriculture departments, environmental groups, industry organizations, and private citizens. While the majority of these commenters supported the establishment of criteria for the submission of special need requests, all of the commenters expressed some reservations, which are discussed below by topic. We are making only minor changes in response to those comments.

TK: Some comments said that the special needs request process would take too long to be of any value. Other stated the special needs request should have a two year sunset and the USDA agreed, stipulating that states who wished to continue impose restrictions on interstate movement of must prove their need again. The USDA said two commenters said the rule would contribute to economic protectionism. Here is what the USDA said:


We disagree that the proposed rule promotes economic protectionism. Our process for deciding to either grant or deny a special need request will be determined exclusively on the basis of the best available science and the need to take the least restrictive action. In addition, the decision to grant or deny a special need request will be based on several specific criteria and each of those criteria will need to be satisfied through the presentation of compelling, science-based evidence. However, we have revised our criteria in order to clarify that we will not grant a special need request based solely on economic factors.

TK: To me, this new authority seems like it would be too easily politicized. I hope I'm wrong, but it seems this will muddy the waters with science that is skewed toward self-interest.

Fresh Talk poll: Business/social networking

The Fresh Talk poll this week asks what social/business networking Web sites that readers are members of. (You can mark more than one answer, by the way)

Its safe to say online business networking has expanded at a fast clip in the past two years or so, and I am personally an active member of linkedin ( I also have a linkedin group of Fresh Produce Industry Discussion Group members) and a semi-active user of Plaxo. My son even set me up with a facebook account, though I rarely use it.

I'm interested to see the extent of our readers' wanderings into this realm.

Headline roundup: organic ag to save Africa?, Fresh and Easy, Japan veggie meetings

A few headlines snatched from the Web this morning:

Fresh & Easy announces new stores in Arizona

Fresh & Easy Neighborhood Market today announced the locations of an additional eleven Fresh & Easy markets in Arizona. Fresh & Easy currently has 26 markets operating in the state, with another store opening on November 13th

McDonald's fattens profits - Say it ain't so - don't change that $1 double cheese

McDonald's cited the popularity of its sandwiches and drinks, but reiterated that it was discussing changes to its Dollar Menu because of the high cost of ingredients and expected to decide soon.

Same-store sales, or sales at stores open at least a year, were strong in the third quarter, rising 7.1 percent globally and 4.7 percent in the United States.

Dow sinks 514

Even with the aggressive steps the government has already taken, Treasury Secretary Henry Paulson told interviewer Charlie Rose on Tuesday that Americans would "have a number of difficult months ahead of us in terms of the real economy."


NY Farm Bureau asks that U.S. clarify alien worker situation

Recently, a major meatpacking company, which was utilizing the E-verify system, found out that several hundred of their employees were here illegally. The system didn't catch it.

An employer will only find out if a worker is here illegally if the Social Security Administration sends a letter stating that a Social Security number does not match a name. Even then, the letter comes with instructions that the employer cannot fire the worker based on that letter. Talk about a catch-22.

There are federal regulations to address some of the catch-22 situations, but these are far from being implemented. In the meantime, farmers are not hiring employees that they know to be here illegally. If they are, they are subject to very strict penalties, including potential jail time.

Congress has to fix the situation, and quickly, or the ability of this nation to feed itself will be severely compromised.

Can ID theft laws be used against immigrants?


The Supreme Court will decide whether the government can use new laws against identity theft to send illegal immigrants to prison or force them to leave the country.

QWhat's the back story?

AThe Bush administration, as part of its crackdown on workers here illegally, has increasingly relied on prosecutors and criminal laws to punish offenders, rather than the civil system of Immigration courts. The government has used charges — with the possibility of prison time — to persuade people to plead guilty to lesser Immigration violations. In other cases, defendants have been convicted of "aggravated identity theft," even without proof that they knew their phony ID numbers belonged to real people.


Roubini: worst is ahead of us

He believes that there will be a sharp decline in earnings, and not just for financial firms. Emerging markets, he said, will fall into crisis. And hundreds of hedge funds will close down, putting additional pressure on the stock market as they liquidate their positions, and making cash the best possible investment.

Yes, recent government actions have probably averted the risk of a systemic financial meltdown. But the risk of an L-shaped recession, where two years of economic contractions are followed by a lengthy period of subpar growth, is realistic. And that doesn't just apply to the United States, but to all developed economies, including Canada.

As for commodities, including oil, expect another 20 per cent slide.

Mr. Roubini is not uplifting, but you can't look away.

Organic farming could break cycle of famine in Africa

Organic farming may offer Africa the best opportunity to break out of the devastating cycle of poverty and malnutrition parts of the continent have faced in recent decades, according to a new report from the United Nations.

As reported by The Independent, the report suggests that organic farming methods can boost yields and incomes for small African farmers.

USDA FAS Food Trends - Japan

Apparently, if you’ve worked in Europe you may have experienced a veggie meeting. Y’know those meetings where you eat fresh vegetables instead of snacks, and drink vegetable juice instead of coffee. According to the journalist, veggie meetings have taken place in the United States. Well, veggie meetings may become fashionable here in Japan. Of course, the alleged instigators are vegetable juice producers taking advantage of a great opportunity and market trend, which were introduced in past JFT newsletters. The first is the greater health consciousness throughout all age groups. The second is the fight against metabolic syndrome. The third trend is the big vegetable juice consumption boom. According to a research company that has introduced veggie meetings, the sugar related nutrients and the chewing motion – assuming the staff can hear while crunching on carrots and celery -- help meeting participants to concentrate and increase productivity. It is also a method to get younger employees who usually lack vegetable consumption to eat vegetables regularly.
Leading companies have incorporated veggie meetings into their repertoire and the article suggests that universities may also introduce this practice for staff and student meetings.

Poll closed: Reaganesque win for Obama?

I guess we have to trust the American people's judgement about Barack Obama, because it certainly appears as if he is going to win. Here is the latest Fresh Talk poll about the third and final debate.

Who won the Oct.15 presidential debate?

McCain	7 (25%)
Obama	20 (74%)

Votes so far: 27
Poll closed

Truck rate report - Oct. 21

Truck rate decreases from 5% to 10% were common this week. From the USDA Truck Rate Report:

A shortage of trucks was reported for the following commodities and regions: onions from Idaho and Malheur County, Oregon and potatoes from Northwestern Washington. A slight shortage of trucks was reported for the following commodities and regions: onions from North and East Points Colorado, potatoes from Upper Valley, Twin Falls-Burley District Idaho, potatoes and onions from Columbia Basin Washington. A slight surplus of trucks was reported for the following commodities and regions: lettuce, mixed vegetables, strawberries and raspberries from Salinas-Watsonville California, and potatoes from San Luis Valley Colorado. A surplus of trucks was reported for the following commodities and regions:sweet potatoes from Atwater Livingston California, carrots and grapes from Kern District California, pears from Sacramento & San Joaquin Valley California, apple pears, grapes, melons, peppers, and apples from San Joaquin Valley California, citrus, bell peppers, strawberries and avocados from South District California, mixed vegetables from South Georgia, sweet potatoes from Louisiana and Mississippi, citrus, avocados and mixed vegetables from Mexico Crossings Through Texas and watermelons from Texas. North and East Points Colorado noted an adequate supply of flatbed trucks and a slight shortage of refrigerated trucks. LAST REPORT was issued for watermelons from Texas. All other districts reported an adequate supply of trucks.