Organic Trade Association - "unprecedented marketing"

Other than paying a hefty price premium, why do "we" like organic food (and shampoo, clothes, etc)? The Organic Trade Association is about to tell us and convince the rest of us to join the party....


Organic Trade Association launches unprecedented marketing initiative From the news release:

As the longstanding voice of leadership in the $23.6 billion organic industry, the Organic Trade Association (OTA) http://www.ota.com today announced that the 1,700-member organization is launching an extraordinary consumer marketing and public relations campaign that will reach more than 25 million consumers in the year 2009 alone.

"This unparalleled effort to educate consumers about the benefits of organic comes at an historic point of change for America," explained Christine Bushway, who assumed her position as Executive Director, OTA, in September. "Never has there been as much evidence backing the benefits of organic to public and environmental health, as many organic farmers on the land, and as many educational programs preparing a new generation of organic farmers. But never in recent years has there been as high a level of consumer spending confusion and concern. The role of this campaign is to set the record straight and help consumers make the educated choice."

Bushway outlined a full range of strategic marketing and public relations initiatives that are being implemented under the direction of organic marketing veteran Laura Batcha, Marketing Director, OTA. Featured components of the plan include:

-- Generate trial and purchase of organic products through the award-winning "Go Organic for Earth Day(TM)" retailers program, a new Go Organic(TM) for Back to School sales promotion, and the successful bi-annual Taste for Life special magazine issues.

-- Build organic's cachet among consumers and get them active in the organic community by rolling out a fully integrated advertising campaign for organic, re-launching the OTA's consumer website and e-newsletter The O'Mama Report for greater mainstream appeal, and sponsoring consumer events ranging from intimate in-home consumer parties to large-scale demonstration events.

-- Spearhead major on-line presence of organic through proactive use of web 2.0 tools to correct inaccuracies and proactively communicate about organic. Tools include: "Organic on the Green: A Blog to feed the organic revolution in campus dining"; a bi-monthly Blogwatch tracking organic coverage; OTA Blog, to provide an organic perspective; and upgraded Member Forum technology.

-- Deliver powerful information tools to OTA members and increase their use, especially the highly regarded Manufacturers Market Survey, and launch the first-ever Organic Input Almanac to quantify and communicate environmental benefits of organic.

TK: This is clearly a counter punch to the economy's right uppercut to the organic industry, though there is nary a word about the recession in the news release. Can the OTA message make a difference? There is no dollar figure attached to this marketing initiative, so one has to doubt how much consumer messaging will occur in prime time. I think brand loyalty will become more important to marketers of organic produce in the economic downturn, but it is probably a tall order to ask this campaign to recruit new customers; cash-strapped, worry-laden consumers likely won't seek out organic produce for the first time no matter how unprecedented this initiative may be.

Lessons learned - according to the Produce Safety Project

A new report on the Salmonella Saintpaul investigation was released this week, and The Packer will have coverage of the issue in the Nov. 21 issue. The 32-page report was released by the Produce Safety Project, which is described as an initiative of The Pew Charitable Trusts at Georgetown University.

The report is characterized as an "in-depth review of the public record of last summer's Salmonella Saintpaul outbreak" A copy of the report and the executive summary can be found here.

From the executive summary:

For this report, PSP reviewed all of the public statements and Web site postings of the CDC and FDA; the transcripts of the FDA/CDC media calls; press releases and Web site postings by state public-health departments and industry trade associations; and media coverage from around thecountry. In addition PSP staff attended and monitored the oversight hearings held by Congressional committees. Based on that review, PSP calls on federal public-health officials to follow through on their commitment to undertake a thorough and comprehensive post-mortem analysis of the Salmonella Saintpaul outbreak and report their findingspublicly. The analysis should focus on:

• The need for preventive safety standards for fresh produce.

• Reforms needed to address organizational and capacity shortcomings in the public-health system’s response to foodborne-illness outbreaks at the local, state and federal levels.

• Procedures and systems needed to ensure accurate risk communication to the public and affected industries.

Preventive Safety Standards for Fresh Produce

FDA officials consistently pointed to this outbreak as further proof of the need for preventive safety controls forproduce but said they need Congress to act. In fact, FDA, under its existing statutory authorities, has established similar preventive control systems through its Hazard Analysis and Critical Control Point (HACCP) regulations for seafood and juice, and has proposed on-farm safety measures for shell eggs.5 Moreover, in early 2007, FDA officials cited those same existing statutory authorities when they unsuccessfully sought approval from the Department of Health and Human Services (HHS) to move forward on produce-safety tandards.6 The recent Salmonella Saintpaul outbreak shows the immediate need to establish preventive safety measures using existing legal authority.

Organization and Capacity

Questions about the food-safety system’s lack of organization,capacity and coordination and their resulting impact on the effectiveness of the public-health response are raised by comparing the CDC’s Mortality and Morbidity Weekly Report article7 on the outbreak (hereafter, “CDC Outbreak Report”) with the public statements of FDA and CDC officials during the outbreak. For instance, the epidemic curve (or “epi curve”) published in the CDC outbreak report shows that some 50 percent of the confirmed cases began before the FDA nationwide consumer advisory on June 7 recommending that consumers avoid eating certain tomatoes. While there was a drop in cases after that announcement, it appears that the most sustained drop began around June 24. Maybe this drop was a factor of the incubation period for the illness, or maybe it points to an off-target intervention. A post-mortem analysis should examine this question. In addition, the discussion in the CDC outbreak report of cluster investigations in mid- tolate-June raises questions about why FDA and CDC officials continued to maintain so steadfastly and for so long that tomatoes were the leading suspect for being the vector for Salmonella Saintpaul.

Risk Communications

From the beginning of the outbreak, public-health communication to the media and the public was disjointed and confusing. Five different agencies – two federal and three state –“announced” the outbreak over the course of four days with significant variations in facts and messages. Then, three weeks into the public-communications effort, the CDC significantly changed – with no explanation – the manner in which it presented outbreak data, from raw number of cases in a state, to cases per million in a state, to a range of cases per state. While the change in presentation of data by CDC may have been worthwhile, it begs the question of why established procedures were not in place before this outbreak began. These failures in communication may well have contributed to the public’s decision to stop buying and eating tomatoes altogether in June and July. To date, much of the analysis of the outbreak has focused on the “traceback,” FDA’s attempt to locate the source of contamination.8 As important as that discussion is, if the post-mortem analyses are limited to that aspect, deeper and even more fundamental structural and organizational shortcomings risk being neglected. Indeed, these shortcomings in the nation’s food-safety system are not new, having been documented repeatedly during the past decade by many expert bodies, including the National Academies of Science,9 the Government Accountability Office,10 and the FDA’s Science Board.11 The key question here is whether the nation’s food-safety policymakers will learn the lessons of this outbreak and fix the system. To learn those lessons, they need to undertake a thorough, in-depth and transparent review of what went right this past summer, what went wrong, what could be done better, and what should never happen again.

TK: Look for a timeline at the end of the report, which describes some of the communications from PMA and United during the outbreak investigation. It will be interesting to see how industry leaders weigh in on this report, but my first take is that is overly prescriptive; notably, of course, "preventive safety standards for fresh produce."

ADAPEX - Costa Rica mini vegetables

ADAPEX, a, Cartago, Costa Rica-based mini vegetable marketer (label Minys) was my first visit of Wednesday of Nov. 12 during my Nov. 11-15 trip to Costa Rica, sponsored by the Foreign Trade Corporation of Costa Rica (Procomer) . ADAPEX - representing 35 associated growers with farms that average 4 or 5 hectares each - exports mini vegetables to the U.S. and Canada and radicchio to Italy. Overall area produced is about 75 hectares.
The first started exporting to the U.S. in 1996 after exhibiting in the PMA show. Tarcisio Mora is the general manager of ADAPEX and is pictured in the last couple of shots in the slide show. Some of the products the company markets include baby zucchini, baby corn, baby carrots and radicchio. The mini-vegetables are shipped by air to the U.S. in 1,000 kilogram air containers, while radicchio is shipped in 15 metric ton ocean containers to Italy, with that trip taking about 15 days. Italy receives about 12 containers of radicchio per year,, Mora said, while mini vegetable shipments to the U.S. can run as many as three cargo planes per week.
The peak shipping season for mini vegetables is January through August and by mid-November the firm was exporting baby corn to the U.S. Meanwhile, radicchio season for Italy is February through April - the only months of the year Italy is not producing the commodity. Mora said 45% of a worker's wage in Costa Rica is comprised of social charges (health insurance, social security), which makes Costa Rican labor rates more expensive than its neighbor and rival in Guatemala. ADAPEX is in the process for HACCP certification for 2009 and also plans to expand marketing of mini vegetables to Europe next year. Mora said European buyers are generally more stringent on food safety audits than U.S. buyers but both markets are moving to certification of Good Agricultural Practices. Mora also said that the troubles in the U.S. - plus competition from other Central American countries in mini vegetables - is increasing the importance of finding new markets for mini vegetables in Europe. Mora also said growers are pleased that Costa Rica lawmakers last week finalized the process to make CAFTA effective, as that will open the door to zero tariffs on machinery and other inputs from the U.S.

Britain's cut the fat plan

Nine towns and cities have been designated "healthy towns" in Britain to combat the obesity epidemic. Here is coverage from the BBC in this youtube clip and below is coverage from The Christian Science Monitor. The article talks about "electronic tracking tags" that log how far consumers run or walk in a day, with the longer distances being rewarded with points that could give consumers points toward purchasing sports equipment, health club dues or accumulate toward a "healthy day" off. Consumers are also given extra points for eating healthy foods like fruits and vegetables.

I think the idea is worth exploring here in the states. For example, why can't the U.S. implement a system that rewards consumers for purchases of fruits and vegetables with "food stamp" dollars? For every fresh produce purchase, the consumer would receive a 15% discount or some other incentive scheme. Obesity isn't going away, and the U.S. government isn't trying hard enough to be creative in the ways the problem is confronted.

Why not establish a voluntary government program that would reward consumers who measure a healthy body mass index with a bonus or tax credit of $200? Why not provide a government credit for the cost of health insurance if taxpayers maintain a healthy lifestyle?

More pilot programs to fight fat - such as Britain's recent foray - must be attempted by government and by private industry. The obesity epidemic is spreading because we fail to exercise enough and continually make poor decisions about food. It is that tacit public acceptance of obesity that public health officials must try to derail with extreme prejudice.

Poll closed - value is dominant theme for 2009 fresh produce marketing

Another Fresh Talk poll, another irrefutable truth. Well, of a sort, anyway. The latest Fresh Talk poll asked:

What will be the most significant consumer trend in fresh produce marketing during the next six months?

Local produce	5 (29%)
Search for value/price	12 (70%)
Stronger organic demand	0 (0%)
Search for new varieties/tastes	0 (0%)

Votes so far: 17
Poll closed

Back in the office - The Nov. 17 Packer

Back in the office today, with much to come from my Costa Rica visit. Just getting settled into my third story perch here at 10901 West 84th Terrace in Lenexa. Besides reviewing and deleting email messags (! System Administrator: Your mailbox is over its size limit.), I take a look at the Nov. 17 issue of The Packer. Some selected highlights:

Page 1
Washington produces record apple crop - Pamla Reimenschneider
U.S. Apple estimates U.S. fresh holdings as of Nov. 1 totaled 114 million bushels, up from 101 million bushels last year and 99 million two years ago. Washington fresh holdings were 94 million bushels, up from 81 million last year. Pamela gets reaction from Keith Mathews, Loren Queen, Roger Pepperl, Ken Severn and Nancy Foster.

Page 1 art - Pic by me of Alberto Bonilla of B & C Exportadores in Costa Rica looking at the firm's chayote crop.

page 1 art - Pic by Greg Johnson of Western Growers officials from the association's annual meeting in La Quinta, Calif.

Romaine investigated in Ontario outbreak - David Mitchell
Public health officials in Ontario are investigating whether an E. coli oubreak is linked to romaine lettuce. David interviews Ontario health officials, the CDC, the Canadian Food Inspection Agency and more.

Initial United Fresh consumer survey suggests safety concerns - David Mitchell
David looks at the United Fresh Issues Scan report from United, noting the startling statistic that showsreveals 32% of consumers are very concerned or extremely concerned about the safety of fresh produce. David interviews Amy Philpott and reviews highlights of United's Issues Scan report, which United says will be issued annually.



Page 2
J. Marchini offers specialties for winter - Don Schrack

Taylor Ann offers snacking apple

Tradewatch

Murphy scholarship applicants sought

Page 3

Prepacked produce confessions - Pamela Riemenschneider
Pamela is back from maternity leave and this "Aisle Wandering" column is a funny and self revealing piece about the new mom's appreciation for convenience in fresh produce.

Pack association names president - Brian Frederick
Jerry Welcome is the new president of the Reusable Packaging Association

California Giant starts retailer training effort - David Mitchell

Produce First! to use event to promote produce on menus - Brian Federick

Retailer chain picks up two locatoins - Ashley Bentley

Sysco links restaurants to producers - Jody Shee
Interesting read about Sysco Corp. effort to link locally grown produce to restaurants in their region


Page 4

Western Growers discusses sustainability topics - Greg Johnson

Growers receive leadership honors


Page 5

Industry leaders plan meeting with FDA, CDC - David Mitchell

Produce safety center awards first grants - Don Schrack

Mexican buyers visit California exporters - Jose Escobedo

Taiwanese longans prepare for U.S. entry - Andy Nelson



Edit page

Ample apples, ample opportunity - Editorial

Industry thinks economy will bounce back in 2009 - Dan Galbraith
Good, timely data on industry perceptions of how recession could impact business


Lessons from produce carry over into everyday life - David Mitchell
David Mitchell's farewell column talks in part about his appreciation for the industry sources who help make the job of reporting about fresh produce easier. We're sad to see David go, though not begrudging his new opportunity. David's coverage of the Salmonella Saintpaul outbreak was incredible and an enduring example of great journalism at The Packer.

B1 Crops and Markets

California water woes threaten produce - Don Schrack

California gold kiwifruit enjoys strong demand - Andy Nelson

Premier Citrus Packers LLC adds deal, expands volume - Doug Ohlemeier

Handling and Distribution - B4

Less is more for Smurfit-Stone pack line - Dan Galbraith

Wal-Mart leaves produce out of Packaging Scoreboard for now - Dan Galbraith



Special sections

Florida citrus - Doug Ohlemeier

Chilean produce - Jose Escobedo

California Winter Desert Vegetables - Don Schrack