The long wait for the sliced apple pilot program and other top headlines

I asked Jimmie Turner, spokesman for USDA AMS, about the relaunch of the USDA's pilot program to purchase sliced fresh apples. As you remember, the program was suspended after early glitches.


From The Packer's coverage on Dec. 8
USDA hits roadblock for sliced apple program
By Tom Karst, National Editor
The U.S. Department of Agriculture halted its planned purchase of nearly 3 million pounds of fresh apple slices, primarily for school lunches, in early December because of confusion on the online bidding process.
The department initially awarded contracts to four of nine suppliers on Nov. 21 but notified the companies on Dec. 1 that the contracts were terminated for the 2.9 million pounds of apple slices.
"Most of the bidders were unfamiliar with the process," said USDA Agricultural Marketing Service spokesman Jimmie Turner. "In the interest of being fair to all parties and to ensure the best price to the government, we decided to terminate the invitation. We intend to reissue an invitation."
One fresh-cut processor whose contract was terminated said some companies that had problems with the online bidding filed formal complaints.
"That's why the USDA cancelled all the bids they had awarded and decided to go back to the drawing board and redo things," said Al Vignieri, president of Sunset Orchards, Richland Center, Wis.
Turner said the USDA would issue another invitation to bid in the near future but did not specify a date for the invitation to bid, how much product will be sought and what time frame deliveries are desired.
The pilot program has been viewed as the agency's first step into value-added produce purchases for school lunch programs and is expected to be followed by purchases of other commodities like baby carrots.
Vignieri has other concerns about the program, including that some of the people involved on the distribution end said the process would involve keeping warehouses stocked with fresh sliced apples so schools could pull product whenever they want. With sliced apple's limited shelf life, that would be problematic, he said.
Vignieri said he hopes that aspect of the program will change with a new bid, and he was encouraged the program will continue.
"I didn't get any indication from USDA they were going to throw the towel in. They just wanted to refashion things," he said.
Tony Freytag, marketing director of sliced apple marketer Crunch Pak, Cashmere, Wash., said USDA was apparently looking for a higher level of coordination between distributors and suppliers and other logistical issues with the program.
"To USDA's credit, they want to get this in place, and that's exciting for the industry and for us as potential players," he said. "From what I hear, they are trying to move at a quick place to get this reinstated as a bid."

TK: Here is what Jimmie said yesterday about where the program stands.

Here are the responses to your query:

USDA’s Agricultural Marketing Service has been working with states and schools, and fresh cut apple processors, since we terminated contracts to ensure the success of the program;

We are expecting orders from states and schools in the near future;

Once we receive those orders we’ll release the invitation soon after that, with bids due 2 weeks after the invitation;

AMS’s plans are to expand the fresh cut apple program for deliveries in the fall when schools return to session.

TK: It is somewhat disconcerting that the program isn't up and running at this point. While the industry has every reason to have the USDA "get it right," one wonders if the agency can sustain the confidence of the trade if this pilot program does not get off the ground this season.


Other headlines snatched from the Web this morning:





Obama signs stimulus bill Business Journal

While massive government spending may be required in the short term to get the economy moving, “we need to begin restoring fiscal discipline and taming our exploding deficits over the long term,” Obama said.

“None of this will be easy,” he said. “The road to recovery will not be straight and true. It will demand courage and discipline, and a new sense of responsibility that has been missing — from Wall Street to Washington.

More stimulus coverage from Philly.com.

Recession worst since the 1930s,Greenspan says Reuters. Not exactly a lot of help....

The stock market, meanwhile, is being suppressed by "a degree of fear not experienced since the early 20th century," Greenspan said. "Certainly by any historical measure, world stock prices are cheap. But as history also counsels, they could get a lot cheaper before they turn."


Changing of the guard at Wal-Mart CNN

Scott overcame an initial reluctance to engage these detractors, and he wound up transforming the company. But the untold story of his tenure is the internal war Scott waged as he dragged the company into the 21st century from its clannish roots. When a group of executives known as the "boots" - for their love of cowboy boots - threatened to divide management, Scott cleaned house during a 2005-06 purge, even though many of the boots had been friends of founder Sam Walton. The final piece in Scott's remaking of Wal-Mart was grooming a successor, Mike Duke, also 59, who took the helm on Feb. 1. Only the fifth CEO ever to lead the company and the first to have never worked directly with Walton, Duke is a longtime Scott protege.

Wal-Mart outpaces a weak economy NYT

For the three months that ended Jan. 31, Wal-Mart’s profit was $3.8 billion, or 96 cents a share, compared with $4.1 billion, or $1.02 share, a year ago. That included a charge from settling dozens of class-action lawsuits in which the company was accused of systematically cheating workers out of wages. Wal-Mart’s results were also hurt by the performance of its international and Sam’s Club divisions.

North American debut of the Red Prince apple Market Watch
Riveridge Produce Marketing is pleased to announce a whole new apple experience with the North American launch of the Red Prince apple. This exciting new apple variety is available exclusively at Meijer stores throughout Michigan, Ohio, Illinois, Indiana and Kentucky.

New York fruit values drop Democrat and Chronicle.com

While the New York apple industry is benefiting from a "buy local" trend, the industry was hurt by hailstorms in the summer, said Peter Gregg, a spokesman for the New York Apple Association.That was followed by a dip on the demand side around the time of the Wall Street panic, said Gregg.

Vilsack COOL press conference postponed AgWeb


Detecting striped versus blushed honeycrisp apples Science Daily


German courts rule ag commodity check-off programs illegal USDA FAS
From the report:

The German Constitutional Court has ruled that the mandatory check-off system for agricultural commodities violates the German constitution and is illegal. The court ruled that the check-off program unfairly interferes with entrepreneurial freedom and stated that the information gathering and agricultural promotions are no longer a government task to be financed with special duties. As a consequence of the ruling, the German agriculture and food industries will either have to develop their own sector-related generic promotion programs and information gathering and analysis or general governmental funds will have to be provided to accomplish these efforts.

Caught on tape: waterfront police taking crates from Del Monte's docks in Gavelston The Daily News

French biotech policy measures bogged down USDA FAS

Taiwan's new organic labeling rules USDA FAS

Microstrategy signs deal with Whole Foods Indus Business Journal

Earnings preview: Whole Foods AP
Share price of stock has fallen by 75% in last 52 weeks

The trouble with regulation Motley Fool chimes in on FTC overwrought pursuit of Whole Foods

"Murdock study" at Duke to examine blood samples as links to chronic disease WRAL.com


Seeking more crop per drop California Farm Bureau

Obama to announce foreclosure plan CNN