Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Monday, November 30, 2009

Washington Times: Health bill fails to block illegals from coverage

Washington Times: Health bills fail to block illegals from coverage


Health bills fail to block illegals from coverage

Stephen Dinan

Hundreds of thousands of illegal immigrants could receive health care coverage from their employers under the bills winding their way through Congress, despite President Obama's explicit pledge that illegal immigrants would not benefit.

The House bill mandates, and the Senate bill strongly encourages, businesses to extend health care coverage to all employees. But the bills do not have exemptions to screen out illegal immigrants, who usually obtain jobs by using false identities and are indistinguishable from legal workers.

A rough estimate by the Center for Immigration Studies suggests that the practical effect of the mandates would be that about 1 million illegal immigrants could obtain health insurance coverage through their employers.

Democrats who wrote the House bill said that employer coverage for illegal immigrants is not intentional, but rather the outcome of people breaking the law.


"It's possible an employee could deceive an employer with a fraudulent document, just as under current law, to gain employment, just as it's possible for all sorts of criminal activity to occur, and why we have law enforcement," said Nadeam Elshami, a spokesman for House Speaker Nancy Pelosi, California Democrat, who wrote the final House bill.

Republicans said that loopholes in the bill could allow coverage to just about any illegal immigrant who wants to cheat the system.

"This is a complete cover-all-the-gaps federal health insurance for illegals, whether it be under Medicaid, the refundable tax credit or whether it be under their employers who would not be able to verify their employers unless we fix E-Verify," said Rep. Steve King of Iowa, the top Republican on the House Judiciary Committee's immigration subcommittee.

How to deal with immigrants, both legal and illegal, remains one of the thorniest issues in the health care debate. In his address to a joint session of Congress in September, Mr. Obama specifically challenged Republicans who said his plans would extend coverage to illegal immigrants.

"This, too, is false -- the reforms I'm proposing would not apply to those who are here illegally," Mr. Obama said.

That statement elicited an outburst of "You lie" from Rep. Joe Wilson, South Carolina Republican.

Most of the focus has been on whether the bills in the House and Senate go far enough to screen out illegal immigrants applying for public benefits. The Senate bill is generally considered to have stronger provisions than the House version to exclude participation by illegal immigrants.

The employer mandate could play a major role in coverage for illegal immigrants, but the effect has not been widely understood.

Steven A. Camarota, research director for the Center for Immigration Studies, said about 6.5 million illegal immigrants work in the United States, though nearly half do so off the books and wouldn't be counted for purposes of employer-sponsored health insurance.

Of those who work on the books, about 2.3 million already have insurance through their employers. That leaves at least 1 million who would need insurance and could obtain it from an employer under the proposed mandates.

"It's definitely significant," Mr. Camarota said.

Democrats said their bill doesn't change eligibility for benefits for illegal immigrants but it does change laws on who must provide insurance. Any employer with a payroll higher than $500,000 would be required to provide insurance for employees.

The House bill offers tax credits for two years to help small businesses provide insurance, including businesses that hire illegal immigrants.

But Mr. Elshami said businesses are already prohibited from hiring of illegal immigrants.

The Senate bill is more complex. It would urge companies to provide insurance, then penalize them for each employee who applies for credits for the health care exchange.

Jim Manley, a spokesman for Senate Majority Leader Harry Reid, Nevada Democrat, said the bill includes a screening process to keep illegal immigrants from getting credits in the health care exchange. But even illegal immigrants would be counted in the penalty against employers, so companies would be paying for having hired them.

"In this scenario, an employer would have to provide a responsibility payment for an undocumented worker. But that undocumented worker wouldn't be getting coverage through the exchange," Mr. Manley said.

Robert Rector, a senior research fellow at the Heritage Foundation, called the debate "an absolute charade" because Mr. Obama and Democratic leaders have signaled their intent to try to pass a bill legalizing illegal immigrants next year.

Once their legal status is secured, Congress would have to decide their eligibility for public benefits. Democrats have been pushing for broad inclusion, and their health care proposals give equal treatment to legal immigrants and citizens.

Republicans say the government should do more to push for a legal work force in the first place.

"If it was not bad enough that illegal immigrants take jobs that rightfully belong to citizens and legal immigrants, now they will get health care benefits that should go to Americans," said Rep. Lamar Smith of Texas, the top Republican on the House Judiciary Committee. "If they were not in the country, we wouldn't have to worry about emergency room or health insurance costs at all. And Americans would have these jobs."

A Congressional Research Service report notes that the House Democrats' bill does not expressly prohibit illegal immigrants from getting health insurance and, in fact, would mandate that they obtain insurance if they meet the "substantial presence test."

That test calculates U.S. residency based on the number of days per year a person is in the country.

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Industry Week: Food Traceability: The Missing Ingredient from Your Supply Chain

Industry Week: Food Traceability: The Missing Ingredient from Your Supply Chain

Real-time visibility and financial gain from the farm to the dining room table

Monday, November 30, 2009
By Jim Burleigh

Over the past few years, security precautions have been put in place to protect this country from domestic and international terrorists, health-related outbreaks, and even financial shenanigans among others. In spite of that, however, the most important pipeline-the food supply-has mostly been ignored and even neglected. The European Union has had food traceability regulations in place since 2005 with the U.S. taking a less than direct approach with voluntary, mostly arbitrary programs. With the U.S. Food Safety Enhancement Act of 2009 (HR 2749) having already passed the House and a similar Senate version (S510) on the fast track, mandated system-wide traceability is coming. While food safety may be the catalyst, the benefits extend beyond food safety and into the supply chain by increasing visibility, and potentially long-term profitability.

From a food safety perspective, traceability is a necessity if businesses are to have a clear and immediate visibility into the source for food and ingredients received and more importantly, the recipients. This not only minimizes damages for individual companies, but protects industries and their partners from damage to reputation and sales. If the sales of unsafe items are ever made, the ability to track distribution is critical in both reducing the costs and scope of a recall.

However, one significant aspect of system-wide traceability that has an even more immediate financial impact is real-time inventory visibility and ongoing collaboration across the supply chain. Fundamentally, traceability is about collecting and understanding data to make informed and critical decisions. Traceability systems are nothing new, and many food suppliers use them for numerous reasons including supply chain management, specialized targeted marketing, and food safety and quality control traceability. But, while the technology has existed for years, the high price tag and IT resource requirements have been barriers to adoption to all but the largest companies.

From the farm to the dining room table, retailers such as Wal-Mart and Sysco and logistics companies including D.B. Schenker and Associated Global Systems (AGS) have implemented some form of traceability system. And, understandably, the vast numbers of businesses today are even more sensitive when discussions about system-wide tracking system arise in an uncertain economy. Conversely, this also explains why less than 30% of warehouses in North America have an inventory management system in place. The consequence is that most companies have no visibility into their supply chain let alone traceability.

Because traceability inherently also means real-time visibility and collaboration, financial benefits can be reaped rather quickly. Livestock provides a good example of how traceability works both from an inventory management and business perspective. Over the past several years, an industry that has had its fair share of recalls due to contaminated product is the meat industry. Time and time again, discovering the source has proven difficult and time consuming not to mention devastating to the industry's image. To identify the origins of a specific piece of meat, information must be available to determine the specific animal it came from and the ranch where the animal resided.

One method of tracking is through a unique identifier similar to a license plate. Similar to a car, assigning a license plate on each piece of meat identifies the ranch. By entering the animal identification number through a specially established Web site, businesses can access information related to the animal and ranch. Consumers would have access to the compliance and health inspection history for that ranch. For the ranch, it's all about visibility into its supply chain. On a typical day, the ranch can streamline operations, diversify product offerings and revenue channels, and improve customer and partner relationships. In the case of a recall, the ranch can identify exactly what has been recalled and its origins using the identification number, which not only saves times but a significant amount of money and resources.

Although price sensitivity explains the hesitation and resistance by businesses, technological innovation such as on-demand Inventory Management Systems has made traceability affordable and with the many financial benefits, a worthwhile investment. Also known as Software-as-a-Service, the on-demand approach in inventory management has gained momentum within the small business community as well as with large enterprises because of its cost-effective and flexible framework. Via a Web browser and a live Internet connection and using a tracking method such as bar-coding or RFID, businesses have visibility on every item across single or multiple facilities within their supply chain. From fruits, vegetables and livestock to packaged goods and crates, any item can be monitored and tracked anywhere within the supply chain.

Supply chain-related activities and the ability to reduce costs while creating additional revenue is the difference between those who succeed and those who don't. While important in the perception of food product quality and safety for consumers, traceability of products and activities in the supply chain is a new factor of competitiveness for businesses of all sizes.

Like it or not, traceability and supply chain management go hand in hand. Risks will define the livelihood of your business whether they come from product recalls and liability or from more agile competitors. Real-time visibility and collaboration with those in the supply chain will determine how effectively you respond. While the fundamentals of business may not have changed, the rules certainly have, and only you can take advantage of them.

Jim Burleigh is CEO of SmartTurn and has more than 19 years of software experience. He is a seasoned supply chain innovator. www.smartturn.com

Christian Science Monitor: Copenhagen's baby step on climate change: More electric cars?

Christian Science Monitor: Copenhagen's baby step on climate change: More electric cars?

China and US cooperation in promoting such vehicles is a concrete step against global warming. But how to measure claims in miles "per gallon"?

As the two largest carbon polluters, China and the US have yet to agree on much before the international conference on global warming in Copenhagen next week.

But they are cooperating on at least one thing – rapid acceleration in the production of electric and hybrid vehicles.

During his trip to the climate-change conference, President Obama can point to his recent pact with Beijing to jointly share information on standards, research, and demonstration of such vehicles. That should help make up for his dashed hopes that Congress would have set targets for cutting carbon emissions by now.

Mr. Obama is banking heavily on electric and hybrid cars to reshape the world's energy future. Earlier this year, he promised to "put one million plug-in hybrid vehicles on America's roads by 2015." But besides the new cooperation with China and the billions in subsidies to bolster this small industry, his main policy tool is to push automakers to produce fleets that run with an average 35.5 miles per gallon by 2016.

The industry, sensing the heat, is also counting on electrics and hybrids as part of their future. Last summer two automakers conducted a brief bragging battle over whose triple-digit mileage figure for its future electric car is higher. General Motors put its long-ballyhooed Volt at 230 miles per gallon. Nissan countered that its new Leaf would get 367 m.p.g. Both are expected in showrooms in 2010.

But all the m.p.g. talk at this stage is a little silly. No standard exists for measuring the "gas mileage" of plug-in vehicles that run on electricity. The Volt, for example, actually has two propulsion systems, an electric motor powered by rechargeable batteries and a gasoline engine. It begins using gasoline after about 40 miles of driving on batteries alone. How much gasoline a driver would use could vary widely, depending on how many trips over 40 miles in distance a driver took.

Nissan's Leaf won't use gasoline at all, so in terms of gasoline used, the mileage will be, well, infinite.

Both cars will recharge their batteries from the electric grid, introducing more complications. The cost of electricity varies by locale and sometimes by the time of day. It could be generated by a coal-fired power plant (bad for planet-heating carbon emissions) or renewable wind or solar energy.

The Environmental Protection Agency is far from ready to apply mileage figures to either vehicle. The EPA will need a new system for measuring fuel economy, perhaps using two figures, one estimate for gasoline used per mile and the other for electricity per mile. Or perhaps it will assign a single number based on the estimated total cost of fuel per mile driven.

Either new car is likely to be several times more efficient than the current m.p.g. king of the road, the Toyota Prius. It gets a mere 50 m.p.g. and can't be plugged into the electric grid.

Will the Volt and Leaf even be affordable?

Speculation puts the Volt at $40,000 to $45,000 and the Leaf at $25,000 to $40,000, though a $7,500 government rebate could reduce those figures considerably. A 2010 Toyota Prius costs as little as $22,000.

While Toyota remains leery of all-electric cars, other Japanese automakers are committed to bringing them to market. Malls in Japan will be putting in charging stations. Meanwhile, China's top automakers are conducting joint R&D to turn out state-of-the-art electric vehicles. India's Reva carmaker wants in the game too. At the recent auto show, Renault CEO Carlos Ghosn said he expects electric cars to grab 10 percent of the worldwide market for all vehicles by 2020.

The electric car has been jolted back to life and could become the kind of technological solution to climate change that many nations can agree on. Even if Copenhagen fails to set global goals on overall carbon reduction, at least such a concrete step in reducing vehicle pollution is already being taken.

Drexel University School of Public Health : Seniors who eat plenty of fruits and vegetables less likely to die from heart disease

Health Day News - Diet, Cognitive Ability May Play Role in Heart Disease

THURSDAY, Nov. 19 (HealthDay News) -- Seniors who eat plenty of fruits and vegetables and who have good cognitive function are much less likely to die from heart disease than those who have poorer cognitive function and eat fewer fruits and vegetables, a new study has found.

Researchers at the Drexel University School of Public Health in Philadelphia analyzed diet and cognitive data on 4,879 people (3,101 women and 1,778 men), age 70 and older, who took part in the U.S. Longitudinal Study of Aging. The participants were followed for an average of seven years.

The analysis revealed that:

* Those who ate three or more servings of vegetables daily had a 30 percent lower risk for dying from heart disease and a 15 percent lower risk for dying from any cause during the follow-up period than those who ate fewer than three servings of vegetables a day.
* There was a significant association between higher consumption of fruits and vegetables and decreased prevalence of cognitive impairment.
* People who scored high on cognitive functions tests were less likely to die from heart disease or any other cause during the follow-up than were those with low scores.

The study was to be presented Wednesday at the American Heart Association's annual meeting in Orlando, Fla.

The Organic Center - "Impacts of Genetically Engineered Crops on Pesticide Use: The First Thirteen Years"

The Organic Center - "Impacts of Genetically Engineered Crops on Pesticide Use: The First Thirteen Years"

Genetically-engineered corn, soybeans, and cotton now account for the majority of acres planted to these three crops. A model was developed that utilizes official, U.S. Department of Agriculture pesticide use data to estimate the differences in the average pounds of pesticides applied on GE crop acres, compared to acres planted to conventional, non-GE varieties.

The basic finding is that compared to pesticide use in the absence of GE crops, farmers applied 318 million more pounds of pesticides over the last 13 years as a result of planting GE seeds. This difference represents an average increase of about 0.25 pound for each acre planted to a GE trait.

GE crops are pushing pesticide use upward at a rapidly accelerating pace. In 2008, GE crop acres required over 26% more pounds of pesticides per acre than acres planted to conventional varieties. The report projects that this trend will continue as a result of the rapid spread of glyphosate-resistant weeds.

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Global Economic Analysis: Commercial property losses looming

Global Economic Analysis: Commercial property losses looming

Fitch is warning Insurers Face $23 Billion Loss on Commercial Property.

U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may lose as much as $22.6 billion on investments in commercial real estate through 2011, Fitch Ratings said.

Losses on investments in apartment buildings, offices, shopping malls and other commercial real estate will begin to increase in the next 6 months to a year as rents decline and vacancies increase, said Fitch Senior Director Andrew Davidson. Life insurer losses on commercial real estate have been “virtually nil” so far, he said.

“It will be more of a 2010 and 2011 issue,” Davidson said in an interview today. “It will put some stress on the capital positions as they realize the losses.”

Life insurers held more than $450 billion in commercial loans and mortgage-backed securities at the end of 2008, Fitch said in a related report. The delinquency rate on U.S. CMBS rose to 4.01 percent at the end of October, almost seven times what it was a year ago, Moody’s Investors Service said yesterday.

MetLife has recorded three straight quarterly losses and Hartford Financial Services Group Inc. has lost money since June 2008 as investments that include those backed by commercial and residential mortgages dropped in value. New York-based MetLife and Prudential have said commercial mortgage defaults will climb in the next year.

The credit crisis has driven $138 billion worth of U.S. commercial properties into default, foreclosure or debt restructuring, according to New York-based Real Capital Analytics Inc. Commercial real estate prices have plunged almost 41 percent since October 2007, the Moody’s/REAL Commercial Property Price Indices show.

With that plunge in commercial real estate prices, there will be staggering losses percentage-wise on any foreclosures. Perhaps the insurance companies can survive the hit, but small undercapitalized, over-leveraged banks will not be able to do so.

Business Strategy Innovation: Do you have social media influence

Business Strategy Innovation: Do you have social media influence

Do You Have Social Media Influence?
by Mike Myatt

Social Media InfluenceSocial media influence; the harsh reality is that you either have it or you don't. I'm going to tell you the cold hard truth about social media...what you need to know that most people won't tell you. While anyone can have a social media presence, not everyone possesses social media influence. It's clear to those in the know that social media is a universe of the haves and have nots. It's the difference between relevance and irrelevance, visibility and anonymity. You might have something to say, but without influence, nobody will be listening. Put simply, having a social media presence without influence is little more than an exercise in frivolity. In today's post I'll share some thoughts on the importance of social media influence in the building of personal and corporate brand equity.

The amount of influence, or lack thereof matters in all areas of life, and social media is no different. That said, before we go any further I think it's important to address social media critics and the naysayers by answering the questions: Does social media work? Is social media right for business? Can you generate an increase in revenue and brand equity with social media? How does social media compare with other mediums? Watch the video below and judge for yourself:





Okay, it should be clear after watching the Socialnomics video that social media can produce huge ROI, but only if you know what you're doing. The one thing that each of the personal and corporate brands profiled in the video all had in common is that they leveraged social media influence to accomplish their objectives. If you choose to dive into the social media world without a strategy, without understanding how to create social media influence, you will not be pleased with your results. Like anything in life, if you're going to do something, you're better off to do it right or not to do it at all.

There's nary a week that passes where I don't have a conversation with somebody who proudly proclaims that they created a Twitter page, to which I usually respond; "that's great, but why?" Don't get me wrong, recognizing the value of participating in the most powerful medium on the planet by getting in the game is a good thing, but it's an even better thing when coupled with a plan. Let me say this as clearly as I can...a ready, fire, aim approach will rarely find the target.

For all you well intended ad agencies, consultants, marketing managers, brand managers, entrepreneurs, and professionals ready to dip your toe, or your clients toe in the water that is social media, keep in mind that it does no good whatsoever to have a blog that only has one published post in the last 6 months, a Twitter page with 4 followers, a LinkedIn profile with 18 connections, a Facebook account with 7 friends, etc. It's like flashing a neon sign that says I'm irrelevant and nobody cares. It won't do anything to help you, it will only hurt you. In today's world no one wants to do business with a company that's not connected, has no influence, isn't engaged, and that doesn't get it.

While having little or no online following can easily brand you as being without influence, having legions of followers solely for the sake of amassing large numbers doesn't necessarily mean you have any real influence either. Anybody can amass tens of thousands, if not hundreds of thousands of followers just by following as many people as they can and waiting for them to reciprocate. The important thing to understand is whether or not anything of substance or value underpins the numbers? Think about it for a moment...almost nothing can hurt a brand faster than constantly messaging irrelevance to a large constituency. Not a good move.

Who you choose to follow on Twitter, which blogs you read and comment on, who you add as a friend to your Facebook account, or which invitations you accept on LinkedIn speaks volumes about what you're attempting to accomplish online. Like most things, building and maintaining your social media footprint should be engineered by design, but the truth is that most people allow it to be constructed by default. In a perfect world you would build relationships with the largest possible universe of targeted constituents where you can productively engage and contribute. Just as you don't want to add to the noise, nor do you want to remain part of the silence. Having a relevant, highly engaged social media following means you have influence and can create action.

So, how do you start to build social media influence? The best way is to start off on the right foot by not tainting your brand or reputation. Don't begin by trying to sell something, but rather by listening, engaging in conversations, building trust, and adding value. Contribute knowledge and information to the constituencies that you want to build influence with. Become a part of them as opposed to a vendor to them...This is a difficult concept for old-school marketers to get their arms around, but a critical one nonetheless. I would strongly suggest reading two previous posts: "Shut-up and Listen" and "Stop Selling and Add Value" as support for these positions. Following are a few tips to help you build influence online:

1. Don't breach trust - you work far too hard to create a trust bond with your followers, so don't blow it by not following through on your commitments. I would also suggest resisting the temptaion to have all your communications be self-serving. Do this and you'll be viewed as just another sales broadcast. When you do sell, do it properly, and for the right reasons.

2. Don't be a jerk, hater or taker - People don't want to hear from those they don't like. If you want to build lasting social media influence you must be seen as valuable resource and not a taker of other's time, resources or ideas.

3. Have command over your subject matter - If you don't know what you're talking about, remain silent. Voicing your opinion isn't nearly as important as helping someone else refine their thinking with wise counsel. The easy rule is to stay out of conversations where you don't add value.

4. Listen and respond - If you're forcing an agenda rather than responding to the needs of your followers you'll lose any chance at creating influence. Remember that most people will go to great lengths to help someone who has been of assistance to them.

5. Publish quality content that adds value - what you produce in terms of content will be become synonymous with your online reputation. It will either serve you well, or be your undoing.


As I've espoused before, I'm not a huge fan of one-size-fits-all strategies, and this opinion holds true in regard to building your network as well. Despite countless opinions to the contrary, I've come to the conclusion that while no single 'right' methodology exists for building your online network, I regularly observe many 'wrong' approaches...

The bottom line is that you'll be successful in creating real social media influence when you take the time to seek out wise counsel, and implement an authentic approach to a well crafted social media strategy.

Ithaca Journal: Upstate-based Wegmans plans growth in Northeast corridor

Ithaca Journal: Upstate-based Wegmans plans growth in Northeast corridor

Wegmans is opened its 75th store Sunday, in Leesburg, Va., and is already a major retailing presence in Pennsylvania and the Washington, D.C., area.

Wegman, who along with company President Colleen Wegman sat down for an interview last week, said the grocery chain would open its first store in Massachusetts in 2011. The plans are to build in Northborough, near Worcester. Another Massachusetts store may be located in Westwood, though no date has been set.

"We see our growth in a defined crescent between Washington and Boston, extending from Pennsylvania, Virginia and Maryland and up into Massachusetts," Danny Wegman said. "We're looking at Connecticut."

ABC News: 3 Years After E. Coli Outbreak, Is Spinach Safer?

ABC News: 3 Years After E. Coli Outbreak, Is Spinach Safer?


Three years after an E. coli outbreak, thought to be linked to spinach, took three lives and left 205 people sick, "Good Morning America" discovered that while the industry instituted new safety standards to prevent bacterial contamination, there are no requirements to test salad products before they get to market.

Are leafy greens any safer now than they were during E.coli breakout?
Some producers do test their products, but it is not always clear how robust those testing programs are.

The Food and Drug Administration oversees 80 percent of food in America, including spinach, but two years ago the FDA's Science Advisory Board issued a report saying the agency was "at risk of failing to carry out its mandate, leaving our citizens at risk of grievous harm."
Currently, FDA food inspectors visit food processors an average of once every decade, even though they carry out 7,000 inspections a year.

"We have to do better," FDA commissioner Dr. Margaret Hamburg told "Good Morning America." "The food safety programs at FDA have been woefully underfunded for years. There are serious gaps, and we can do better."

Leafy green producer Earthbound Farms, which was linked to the 2006 E. coli outbreak, is nestled in San Juan Bautista, Calif., in Salinas Valley, where 80 percent of U.S. leafy greens are grown.
"To find out that our product was associated with a national outbreak was absolutely devastating," Earthbound vice president Will Daniels told "GMA." "In hindsight there was more that we could do."

The root cause of the E. coli outbreak was never confirmed, but groundwater contaminated by wild pigs and cattle was the likely culprit. Earthbound learned a hard lesson, Daniels said: The salad maker was forced to overhaul its food safety program.

"Our testing programs are designed to catch those contaminated products," Daniels said.
Earthbound now tests all of its salad, including baby spinach, for harmful bacteria, like E. coli, not once, but twice before it heads to the supermarket, he said.

According to Daniels, the company processes approximately 2.5 million pounds of leafy greens every week and catches about 3,000 pounds of contaminated greens on the first round of raw product testing and another 300 pounds on the second round of end-product testing.
Other salad growers unconnected to the 2006 outbreak have new standards as well.

Because of what happened in 2006, we had to take responsibility," said Joe Pezzini, chief operating officer at Ocean Mist Farms and chairman of the California Leafy Greens Marketing Agreement Board, which developed the new standards.

The new standards include audits, monthly water tests and a 400-foot barrier between cattle and salad fields. But critics say suggesting new standards is not enough.
"What we have now is a voluntary system, which is clearly not doing the job," said Erik Olson of the Pew Health Groups, Food Safety Programs.

Citing salad recalls since 2006, critics suggest more product testing.
The FDA provides "guidance" for California salad makers, but none of their suggestions are mandatory, creating a food safety system that Hamburg said is "inadequate."

Reuters: Greener trains put pressure on trucking

Reuters: Greener trains put pressure on trucking

NEW YORK, Nov 11 (Reuters) - U.S. truck operators are under pressure to improve energy efficiency as rail companies tout their green credentials and bid to win more freight haulage.

The American Trucking Association says trucks transport about 70 percent, or 10 billion tons of all U.S. freight annually. But they use at least three times as much energy as trains per ton carried, analysts say.

The recession cut the amount of freight hauled around the country more than 10 percent compared to last year, says the American Trucking Association. But that was a temporary blip.

"As we expect a tremendous increase in freight volume in the coming years, we believe there are significant economic, environment and efficiency benefits in moving as much of it as possible on rail," said Robert Sullivan, of CSX, the third-largest U.S. railroad by revenue.

The 2.2 million registered semi-trucks, which account for most U.S. heavy long-haul transportation, averaged 5.1 miles per gallon (8.2 km per 3.8 litres) in 2007, said the Center for Transportation Analysis at Oakbridge National Laboratory.

Rail companies, which would like to become a green alternative to trucking as the economic recovery gathers steam, were boosted when Warren Buffett's Berkshire Hathaway (BRKa.N) (BRKb.N) recently agreed to spend $26 billion to buy railroad operator Burlington Northern Santa Fe Corp (BNI.N).

The deal was interpreted as the legendary investor making a "green bet" on trains based partly on the view that railroads are more efficient than trucks when energy prices are high.

Congress is considering bills that would extend a 25 percent tax credit to all new freight rail expansion.

On the other side of the ledger, the Rocky Mountain Institute, a nonprofit environmental group based in Colorado, has created the National Council for Freight Efficiency to help the freight trucking industry become more environmentally efficient. But some truckers don't want to hear the message.

DON'T WANT TO HEAR

"As soon as you say green, (truck operators) shut down," said Hiroko Kawai, who heads the institute's trucking transformation and business development efforts.

One way railroads are attracting freight away from highways is double stacking, where one container can be stacked on top of another, doubling efficiency, said CSX's Sullivan.

But truckers say railways lack the national infrastructure necessary to pose a real threat to their business.
"If they tried to shift freight to rail, the railroad system would come to a grinding halt." said Clayton Boyce, a spokesman for the American Trucking Association.

"We've been cutting our fuel consumption long before the rail roads started their green ad campaign," he said.

Truck manufacturers and operators are under government pressure to raise efficiency through voluntary programs like the Environmental Protection Agency's SmartWay initiative.

The program certifies trucks that have been outfitted with equipment to reduce fuel use and emissions.

In California, older trucks entering large ports and rail yards must be gradually replaced by more efficient models. Drivers who let the motor of their trucks run while at a standstill are fined.

The Rocky Mountain Institute says the fragmented trucking industry makes achieving progress complicated.

In a recent study, it highlighted common ways that truckers waste energy, from returning empty after deliveries to keeping the engine running all night while parked to stay warm.

Report: UK Produce Industry Struggles On

From FreshInfo and Plimsoll Industry Analysis - UK produce industry struggles on


Some 244 companies in the market are finishing the year amid financial problems with some companies described as “clinging on” before inevitably running out of time, according to Plimsoll Publishing’s yearly round-up.
The new 2010 edition of the Plimsoll Industry Analysis shows a buffeted market emerging from recession with a third of companies making a loss and one in three companies in financial difficulty.

Turlock Journal - Water package is more litigation, less irrigation

From the Turlock Journal -Water package is more litigation, less irrigation


Turlock Journal

Assemblyman Bill Berryhill, R-Ceres, represents the 26th Assembly District in the California Legislature, which includes the communities of Ceres, Denair, Escalon, Linden, Lockeford, Manteca, Modesto, Ripon, Stockton and Turlock.


Many environmentalists supported this package because they want to stunt the growth of the state by shutting off the water spigot. In doing so, they are content with thousands of Californians leaving this state a year, instead of promoting sensible water policy and economic growth.
Now, whether or not California voters decide to pass this water bond, we’re left with a state takeover of our water resources in the Delta, and little say in how it is managed. It essentially creates a Coastal Commission for the Delta.
Some are celebrating this package as a bipartisan compromise, but this deal simply highlights the dysfunction of this institution.
The Legislature declared there is a problem with the governance of the Delta, claiming there are too many agencies with overlapping jurisdiction, creating confusion and gridlock. But rather than streamlining these regulatory agencies, this Legislature “solved” the problem by creating an extra layer of bureaucracy to oversee the dozens of other bureaucracies.
After witnessing this year’s budget fiasco, somehow I don’t think the voters would agree that the problem with the State government is that it’s not big enough. But that is exactly the message Sacramento sent by approving this water package.

DallasNews.com: Time hasn't made immigration reform easier

Dallasnews.com - Time hasn't made immigration reform easier


WASHINGTON – Immigration, after 10 months on the president's back burner, got its very own trial balloon the other day.
Homeland Security Secretary Janet Napolitano went before a friendly crowd at a liberal think tank Friday and proclaimed that the time has come for comprehensive reform – a goal that has eluded Congress so many times, it has become a third rail of American politics.
It's different now, she argued: Border security is tighter than ever. Inflows of illegal immigrants have dropped by half. Benchmarks for fencing much of the border and roughly doubling the Border Patrol have been met. Lawmakers have hashed out the arguments so many times, the next debate can be streamlined.
"We are in a much different environment than we were before," she said.
We shall see.
Health care and Social Security, after all, have been in crisis for years. The fact that each side's arguments are well-honed doesn't make the positions less entrenched. And keep an eye on the 2010 midterm elections. Congress will become more paralyzed as they get closer.
"It's not going to go away. It's there. We have to address it," said Rep. Henry Cuellar, D-Laredo, a moderate whose border district is at the heart of the debate.
The Obama administration's idea of a "tough and fair pathway to earned legal status," as Napolitano put it in her speech to the Center for American Progress, would require that immigrants register, pay fines, pass criminal background checks, pay taxes and learn English.
For anti-immigrant hardliners, that didn't sound onerous. It sounded like amnesty for 12 million or so foreign lawbreakers – and at exactly the wrong time, with unemployment in double digits and rising.
It's been only two years since Congress rejected efforts to enact "comprehensive" reform: beefed-up security and workplace enforcement, a new guest worker program and some mechanism to allow undocumented workers to emerge from the shadows.
The argument for moving ahead with those other elements hinges largely on whether security benchmarks have been met. Napolitano insisted they have.
"We have attained, I believe, basically, control between the ports of entry," she said.
That is, basically, a pretty bold statement. Critics don't buy it.
"How can they claim that enforcement is 'done'?" asked Rep. Lamar Smith of San Antonio, the top Republican on the Judiciary Committee and a key GOP player on immigration. With 400 miles of Southwest border unfenced and millions of undocumented workers still competing for increasingly scarce jobs, Washington should be talking about deportation, he said, not legalization.
Sen. John Cornyn, R-Texas, noted with at least a tinge of criticism that Obama had promised to make immigration reform a first-year priority, "but it has now been delayed until 2010." It's nice to see Napolitano "becoming more engaged," he said, but Obama should offer a a concrete proposal "sooner rather than later."

That part of the environment hasn't changed all that much. Overcoming it will take more than a trial balloon from a Cabinet secretary.

"Obama needs to be stronger on his comments," Cuellar said. "There's a lot of us that wish he was a lot more outspoken, like he has been on a lot of other issues."

In coming months, we'll get a clearer gauge of Obama's sincerity. And we'll learn if all those security-firsters were simply playing for time or really would be willing to tackle the rest of the issue.

That's the dare Napolitano threw down in her speech.

"The way you lay this out is to say, 'We've made progress, we've reached these benchmarks,' " Cuellar said. "Whether people buy or might not buy the argument, at least that's the message."

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Loyola: One out of five Type 2 diabetics morbidly obese

From Sciencedaily.com Loyola University study

ScienceDaily (Nov. 23, 2009) — A Loyola University Health System study has found that one out of five Type 2 diabetics is morbidly obese -- approximately 100 pounds or more overweight.

Researchers reported that 62.4 percent of U.S. adults with Type 2 diabetes are obese, and 20.7 percent are morbidly obese. Among African American adults with Type 2 diabetes, 1 in 3 is morbidly obese.

"The rate of morbid obesity among people with diabetes is increasing at a very alarming rate, and this has substantial public health implications," said Dr. Holly Kramer, a kidney specialist and lead author of the study published online in the Journal of Diabetes and its Complications.

Kramer and colleagues examined data from the National Health and Nutrition Examination Surveys completed during the years 1976 to 2006. The surveys, known as NHANES, included interviews and physical examinations of representative samples of the U.S. population.

Between the survey periods 1976-1980 and 2005-2006, there was a 141 percent increase in the rate of morbid obesity among adults with Type 2 diabetes, the most common form of diabetes.

Morbid obesity is defined as having a body mass index (BMI) greater than 40. BMI is a measure of body fat based on height and weight. For example, a 5-foot-2-inch adult with a 40 BMI weighs 218 pounds (82 pounds overweight), while a 6-foot-2-inch adult with a 40 BMI weighs 311 pounds (117 pounds overweight).

The greatest growth in obesity has been among diabetics who are morbidly obese. Thus, focusing solely on overall obesity rates "hinders the complete comprehension of this massive public health problem," Kramer and colleagues wrote.

Diabetics already are at higher risk for cardiovascular disease, and obesity further increases this risk, especially among women. Obesity also increases other diabetes complications, including end-stage kidney disease. Other obesity complications include sleep-disordered breathing, arthritis and fatty liver disease.

Approximately two-thirds of adults with Type 2 diabetes are obese and about one-third of adults without diabetes are obese. Obesity is defined as having a BMI greater than 30 -- approximately 30 pounds overweight.

Between 1976 and 2006, the average BMI of Type 2 diabetics increased 17 percent, to 34.2. The average BMI of adults without Type 2 diabetes increased 11.5 percent to 28.1. (A BMI of 25 or more is considered overweight.)

The average age of adults with Type 2 diabetes increased from 56.7 years in 1976-1980 to 59.9 years in 2005-2006. The percentage of Type 2 diabetics who were men increased from 42.9 percent to 46.3 percent.

Among the reasons for the increase in obesity among diabetics and the overall population are inexpensive food, larger portion sizes and consumption of sugary soda, Kramer said. Stomach-stapling gastric bypass surgery can be a last resort for morbidly obese diabetics who have been unable to control their weight through diet and other lifestyle changes. In many patients, weight-loss surgery can eliminate the need for diabetes-related medications.

A-Rabbers : Baltimore solution to food deserts

From the Baltimore Sun A-rabbers as solution to 'food deserts'

An arabber (or a-rab) is a street merchant who sells fruits and vegetables from a colorful, horse-drawn cart. Once a common sight in American East Coast cities, only a handful of arabbers still walk the streets of Baltimore.

Progressive, health-conscious people up in Michigan launched an effort to bring fresh fruits and vegetables to Detroit's "food deserts" - large sections of town with plenty of liquor stores and fast-food places but few or no supermarkets or farmers' markets. A small fleet of vendor-style trucks now bring produce to people who have neither well-stocked food stores in their neighborhoods nor cars for schlepping groceries from distant markets.

A $75,000 loan from the Michigan Economic Development Corp. and the Michigan State Housing Development Authority got the Food Movers program moving in August.

People in inner-city Detroit, many of whom have high rates of obesity, diabetes and heart disease, are now connected with Michigan farmers. The Food Movers trucks are stocked with local produce.

We can do the same thing in Baltimore, without the trucks. We still have - though just barely - the a-rabs and their ponies. And we have opportunity.

South Africa Fresh Deciduous Annual 2009 - USDA FAS

South Africa Fresh Deciduous Annual 2009 - USDA FAS

South Africa’s total deciduous production is forecast at 1,551,900 MT for marketing year 2009/10. For marketing year 2008/09, South Africa’s total deciduous fruit production is estimated at
1,424,818 MT. This represents a 4.3 percent increase compared to 2008 total production of 1,365,135 MT. The average prices for 2009 on fresh produce markets show that the prices of apples have slightly declined from R4,257 per ton to R4,197 per ton. Prices for pears and grapes have both increased; pears have increased from R3, 727 per ton to R3,988 per ton in 2009 while the price of grapes increased from R5,719 per ton in 2008 to R6,713 per ton in 2009.

It is estimated that there are about 2,254 producers of fruit for fresh consumption in South Africa, comprising of 1,174 producers for stone fruit, 954 producers for dry and table grapes and 700 producers for pome fruit. South Africa producers grow fruit both for processing (canning/ drying) and for fresh consumption. South African producers produce organic grapes for the U.S. market but the volumes for these grapes are always very small because of the production costs and distance to the market. Production of these grapes isn't more difficult in South Africa compared to other countries, but added difficulties arise from the lengthy transport time to the market. For instance, conventional grape packers can use sulpher pads and other permitted pre-harvest chemicals for preservation, but this isn't allowed for organic grapes. Generally, the production costs of organic grapes are about 30 percent more than the conventional equivalent.

Carbon Footprint The effects of the climate changes are predicted to have a deep impact on the fresh fruit export industry since the industry is a contributor towards greenhouse gas emissions that are causing global warming and climate change. The fruit industry is taking steps to conform to consumers’ requests by complying with carbon footprint audits and is also involved in the project of carbon calculator.

Fruit industry electronic data flow Traditionally, shipping and inspection data was manually recorded and channeled from pack house and exporters to the Perishable Product Export Control Board (PPECB). This method was tedious, time consuming, and took at least 14 days for the information to be available. This impacted on turn-around time for marketing decisions. Since 2007, the South African fruit industry embarked on an initiative to implement an electronic data flow system. The initiative is aimed at making information available to producers and exporters within a week after shipment.

Marketing The South African deciduous fruit industry is highly developed and geared for the export of a large percentage of its production. Apples rank first, followed by table grapes, pears, peaches, plums, and apricots in the South African fresh fruit exports. The current world recession had a significant effect on types of packaging used in packaging the deciduous fruit. In the past the UK market demanded grapes packed in 9kg cartons and served as a more favorable destination for South African exporters. However, higher demand and prices in the Northern European open market forced exporters to focus on 4.5 kg packaging for these markets. The exporters of grapes to the UK and Europe reported an increased demand as average households are opting for healthier and affordable diet.

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USDA Fruit and Tree Nut Outlook

From the USDA ERS - Fruit and Tree Nut Outlook Report


USDA’s National Agricultural Statistics Service (NASS) forecasts the 2009/10 U.S. citrus production at 10.9 million tons, down 9 percent from last season and down 15 percent from
two seasons ago. Only tangerine production is forecast higher than last season. Although total orange production is forecast down, California’s production of fresh-market oranges should be ample and are reported to be of high quality. While bigger than last season, California’s navel orange crop is likely to be below average for 2000-09. The high quality of the fruit and the smaller than average crop size is likely to result in strong grower prices this season.

Florida’s orange crop is forecast down from the previous two seasons and may be the smallest since the frost-damaged crop in 1989/90, except for the hurricane-damaged crop in 2005/06. Weather played a factor is the smaller crop as did the continued decline in bearing trees. Since an average of 95 percent of Florida’s oranges go to making juice, the smaller crop is forecast to drive orange juice production down to the second lowest level since 1990/91. Large juice stocks entering the new season, however, should provide for sufficient supplies to meet
market demand.

Grapefruit production is forecast down in the three major-producing States—Florida, Texas,and California. With lower grapefruit production out of Florida, grapefruit juice production is also expected to be down this season. Overall supplies are expected to be tighter than last season, potentially driving up retail prices.

California’s lemon crop, while expected to be smaller than last season, should be about average size and enough to meet consumer demand. California’s tangerine/mandarin production continues to grow as more acreage comes into production. Florida’s tangerine production is also expected to be higher than last season, returning to a more-average quantity. U.S. pecan trees are on their “on cycle” this year and production is expected to be higher than last year, but lower than 2 years ago, the last on-cycle. With production expected to be higher prices will likely be down.

NASS forecast the U.S. 2009/10 grapefruit crop at 1.2 million tons, down 9 percent from last season and the fourth consecutive season of declining production (table 6). If realized, this season’s crop would be the smallest since the Florida hurricane reduced crop in 2004/05. Florida’s crop accounts for 70 percent of total U.S. grapefruit production, with Texas and California producing the remainder. Prior to the hurricanes of 2004/05 and 2005/06, Florida’s production averaged about 80 percent of the U.S. total.

Florida’s grapefruit crop is forecast to reach 842,000 tons, 9 percent lower than last season. Adverse weather factors, declining acreage, and a lower than average fruit set per tree all contributed to the production decline. Production is expected to be higher this season in the Indian River production area, the biggest grapefruit production area of the State, but down in the Southern and other production areas. Shipment began a few weeks later in the Indian River area this season over last, with Florida’s Citrus Administrative Committee (FCAC) reporting only about a third of the quantity shipped compared with last year through the first of November. For the whole State, fresh shipments were running behind last season through this time period, but were higher than in 2007/08. Shipments have been down so far to both domestic and export markets. Due to the lack of available fruit early in the season, the FCAC is reporting free-on-board (f.o.b.) prices for both white and red seedless grapefruit averaging between $3.50 and $5.00 per 4/5 bushel box higher this season over last. Higher prices are likely to persist, both at the grower and
consumer levels this season, in response to the smaller supply.


Texas’ fresh grapefruit crop is forecast down 4 percent this season from last, partially due to high temperatures and drought conditions throughout much of the summer. Although rains arrived in September, the summer’s weather contributed to a late start to the harvest this season. According to AMS shipment data, as of November 8, Texas’ grapefruit shipments were about 85 percent of the quantity shipped during the same period last season. Domestic shipments were behind last season, but exports were slightly higher.


Tangerine and mandarin production is forecast to reach 509,000 tons for the 2009/10 season, 14 percent more than last season, but 3 percent less than 2 seasons ago (table 9). Florida’s production is forecast to increase 27 percent, but much of that increase is due to a return to more average quantities after adverse weather factors in the second half of last season’s tangerine harvest reduced the quantity of late-season Honey tangerines. California’s production is forecast to increase 5 percent, as its mandarin industry continues to grow, with more acreage producing
commercial-sized crops. For the 2009/10 season, NASS’ California field office reports that there are 30,000 acres of tangerine/mandarin trees bearing commercial crops, up 11 percent from last season. In fact, the tangerine/mandarin acreage was the only citrus acreage to increase this season. Arizona’s production is forecast to increase the most of the three States, however, its production is very small relative to California’s and Florida’s. Higher than average fruit set per tree accounts for Florida’s increased production this season. NASS’ Florida field office reports there has been a decrease in the number of bearing trees for all of Florida’s major tangerine varieties—Fallglo, Sunburst, and Honey. Florida’s tangelo production (which is counted separately in
Florida but included with the tangerine/mandarin forecast in California) is forecast down 13 percent this season, with both the number of bearing trees and the fruit set per tree down.
AMS shipment data show Florida tangerine shipments picking up during the first week of November. Due to a slow start at the beginning of this season, however, total shipments through November 8 were only slightly more than half the quantity shipped the same time last season. The bad weather that hit Florida last season, reducing the tangerine crop, occurred later in the season and mostly affected supplies of later-variety Honey tangerines, and did not impact tangerine supplies this early in the season.

California produces numerous varieties of mostly mandarins, including satsumas at the start of the season, followed by several varieties of clementines and murcotts, these last varieties account for most of the growth in acreage. By the beginning of November, satsuma shipments were reported to be underway, but it was still too early in the season for data on murcotts or clementines. Tangelo shipments do not get fully underway in both California and Florida until the winter months.

Fresh tangerine/mandarin prices are likely to be strong out of California this season as its industry continues to grow and its markets continue to expand. As supplies increase, the industry will be able to market these crops more aggressively in more tates, increasing grower returns. Consumers have shown strong preferences for mandarin varieties due to their lack of seeds and easiness in peeling and eating. These easy peel varieties have been popular on the East Coast and Midwestern
States for awhile now, almost all imported, and their popularity has remained quite strong. Florida’s early variety tangerines, the Fallglo and Sunburst, while having their own set of consumers, are finding it hard to compete with imported mandarins and now those coming from California, as American consumers continue to demand more convenient products, and no seeds in their fruit. As a result, prices for Florida’s early variety tangerines do not receive the price premium of the California fruit. The forecast for a bigger crop this season is likely to put downward pressure on grower prices for all Florida tangerine varieties. However, there is the potential that there will be fewer clementines from Spain available in the U.S. markets this season, which could help boost demand for Florida’s tangerines. Spain’s clementines traditionally compete with Florida’s tangerines in the East Coast and Midwest markets. As of the end of October, the first month of Florida’s tangerine season, the Florida Department of Citrus reported that shipments were down 20 percent over the same time last season, but revenues from shipments were 1 percent
higher than last season. While shipments to Canada were only a fraction of those to the domestic markets, returns from these shipments were strong, helping boost overall revenue at this early date.


October marks the start of the harvest period for California kiwifruit and indications from the California Kiwifruit Commission (CKC) suggest that production for the 2009/10 marketing season (October through September) will be up around 16 percent from the freeze-damaged crop of the previous season. Given this projected growth rate, production for this season would be expected to increase from the 23,000 tons that NASS reported for the 2008/09 season to 26,680 tons—about the normal crop size for much of the past 10 years. While not having a completely frost-free growing period this season, frost problems were more severe last season when an abnormally early bloom exposed many of the blossoms to a mid-April freeze, driving down production to its lowest level since 1985/86 as well as some quality issues. Industry sources have indicated that besides the expected increased volume for this season, crop quality will be much more improved than from last season. Fruit is sizing up well, with more uniform shape and blemish free appearance, attributes that will help move the crop in markets this marketing season. Kiwifruit bearing acres in California has remained fairly steady at 4,200 acres over the past 3 years with most of this acreage clustered in the San Joaquin and Sacramento Valleys. Picking of the crop typically lasts through November, and with the aid of cold storage, supply availability lasts through around May. NASS
will release its first estimate for the 2009/10 California kiwifruit crop in January 2010.

Cumulative early 2009/10 shipments of California kiwifruit were running 27 percent above the previous season through the first week of November, driving f.o.b. kiwifruit prices lower than the same time a year ago. According to industry sources, fruit appears to be falling mostly in the 33 size range and USDA’s AMS have reported free-on-board (f.o.b.) shipping point prices in the Central and Northern San Joaquin Valley from October through early November between $14-
$15 per 9-kilogram (or 19.8 pounds) container loose of the Hayward variety, $3-$4 lower than what they were priced the same time last season. Harvesting extends through November and continued greater supplies than last season should keep the downward pressure on prices.
Domestic demand should benefit from the abundance of good-quality supplies and lower prices. On a per capita basis, U.S. consumption estimates for fresh kiwifruit have remained at slightly less than half a pound per person over the past five marketing seasons, although domestic consumption improved somewhat in 2008/09 from the previous season to 0.48 pounds per person with increased imports. Imports continue to capture a bigger share of the domestic kiwifruit market, with its share at a record high in 2008/09 at 81 percent of domestic consumption (fig. 4). Nearly all the imported volume comes from Chile, New Zealand, and Italy each year. Except for Italian kiwifruit, which account for almost 20 percent of total annual import volume, most imports enter this market during the domestic off season, extending availability of fresh kiwifruit to U.S. consumers during much of the spring and throughout the summer. Imports during the 2008/09 season, October through September, rose 9 percent in volume from the previous season. Imports from Chile topped all other foreign shipments in 2008/09, accounting for 38 percent of total import volume and increasing 16 percent from the previous season. Imports
from New Zealand declined 15 percent while those from Italy posted the biggest increase, up 55 percent, although volume is between 9-14 million pounds less than those from Chile and New Zealand. Having a similar shipping season with California kiwifruit, the sharp increase in imports from Italy was strongly influenced by the lack of supplies from California last season. Prospects for further growth in imports from Italy this season will likely be discouraged by the expected
larger 2009 crop in California and predictions of reduced production in Italy due partly to inclement weather. The projected bigger California crop of exceptional quality points to better export prospects for the domestic industry this 2009/10 season relative last season. U.S. kiwifruit exports in 2008/09, October through September, declined 16 percent from the previous season to 13.9 million pounds, down 18 percent in value to $11.3 million. Exports were down to most of the United States’ top kiwifruit export markets, except to Mexico which received the largest shipment volume from the United States in 2008/09, 22 percent more than what they had received the previous season. U.S. shipments were very strong to Taiwan but only accounted for 2 percent of total export volume. Volumes sent to Canada, historically the leading market for U.S. kiwifruit exports, fell 40 percent while bigger declines were posted to smaller markets in Central America and the Caribbean.

U.S. avocado supplies for the upcoming 2009/10 marketing season (November through October) will likely top the previous record of approximately 1.2 billion pounds achieved in 2008/09, with increases expected from California, Mexico, and Chile—the country’s three main sources for avocados. After having one of the smallest crops in several years, this will be an “on-year cycle” for the California avocado crop. Supplies from Chile are also expected to make a comeback after a
freeze in 2007 reduced production levels in the country for two straight years. U.S. avocado imports from Chile during the 2008/09 through September grew 42 percent from the same time in 2007/08, but 2007/08 volume was only about half of what was shipped the previous season. Most of the growth in imports from Chile in 2008/09, however, is already reflected in the supply increases from the country’s crop this year which started shipments to the United States in July. Mexico filled in for the supply gaps during most of 2008/09. Imports from Mexico in 2008/09,
November through September, totaled 620 million pounds, up 41 percent from the same time the previous season, already at a record-high. The Economic Research Service projected that despite the small California crop last year, per capita avocado consumption during 2008/09 continued to increase, reaching an all-time high of 3.9 pounds per person, up 9 percent from the previous season (fig.5). Preliminary indications from the Hass Avocado Board suggest that production in California for the 2009/10 season will be 60 to 90 percent larger than in 2008/09 and both shipments from Mexico and Chile will set new record-highs. Barring any weather abnormalities, there should be ample supplies for retailers to promote this coming marketing season, likely driving down 2009/10 avocado prices. As of the first two weeks of November, hass avocados were priced an average of less than a dollar ($0.97) each for U.S. consumers, down from $1.21 during the same time last season (2008/09) and $1.19 each from the same time two seasons ago.


Although the shipping season for this year’s U.S. blueberry crop ended in early October, domestic consumers may still look forward to buying fresh blueberries this fall and winter as increased imports from South America have extended availability in the United States during the time of the year when there is no domestic production. Imports from Chile and Argentina both have shown a growing presence in the U.S. fresh blueberry market over the past two decades, although Chile plays a more dominant role. Over the past 2 years, Chile has surpassed Canada as the United States’ top supplier of imported fresh blueberries, increasing its share of total import volume from an average 20 percent during 2000-03 to 49 percent in 2007 and to 53 percent in 2008 for a total of 61.9 million pounds. Imports from Argentina averaged 14 percent of total import volume over the same two-year period, up from 2 percent during 2000-03. Whereas almost all of U.S. fresh blueberry imports came from Canada in the early 1990s, that share in 2000-03 diminished to an average of 78 percent, dropping further to an average of 48 percent in the last few years. Imports from Canada enter the U.S. market during the summer, the same time as the peak harvest period for domestic production. The bulk of the supplies from Argentina usually become available during the fall while the heaviest volumes from Chile arrive around January and February. Earlier predictions from industry suggested that with favorable weather during most of the growing period, this year’s blueberry crops in Argentina and Chile were looking excellent in terms of quality and volume and therefore, good volumes were likely to move through the U.S. market this fall and winter. Heavy rains at harvest time, however, dampened fresh blueberry shipments from Argentina in October through mid-November, with season-to-date volumes down by as much as 56 percent compared with the same time last year, based on AMS data. Free-on-board (f.o.b.) shipping-point prices for Argentine blueberries entering through Miami International Airport ranged from $26-$32 per flat of 12, 4.4-oz/125-gram cups with lids the last week in October, compared with $16.50-$20.50 per flat the same time last year. Prices are likely to soften as Chilean supplies begin to reach the market in the weeks ahead. While still remaining strong, f.o.b. shipping-point prices for Argentine blueberries in early November fell to $20-$24 for flats 12 4.4-
oz cups with lids. Last year the same time, prices ranged from $12-$17 per flat. At the retail level, fresh blueberry prices remained soft almost all throughout the spring and summer months because of increased U.S. production but strengthened thereafter as supplies tightened. In October, U.S. consumers paid an average $2.95 per 4.4-ounce package, compared with $2.56 the previous month and $2.87 in October 2008, based on AMS data. Prices in November strengthened further, averaging $3.33 per package through much of the month, 62 cents higher than what consumers paid for this product last year at the same time. NASS will report its first official estimate of U.S. blueberry production for 2009 in January 2010. Crop estimates, however, from the North American Blueberry Council (NABC) suggested that total domestic production (both cultivated and wild) for 2009 was expected up 3 percent from last year. With this projected growth rate, production for this year likely would be around 454 million pounds, up from the 439 million pounds reported by NASS in 2008 (table 10). Production was projected to have increased in 7 of the 14 States for which NASS reports annual blueberry production (including Maine for wild blueberries), with most major blueberry-producing States showing growth, except New Jersey. Cultivated blueberries accounted for 80 percent of this year’s production and wild varieties for
the remainder.

NABC also estimated the fresh use portion of production to be up 20 percent in 2009 from a year ago, and based on last year’s NASS fresh-market production, this year’s fresh-market crop would amount to around 232 million pounds. Production for the fresh market has increased rapidly in recent years in response to strong demand in the domestic and international markets (fig.6), narrowing the gap withproduction going for the processing sector. Production for the processing sector in 2009 is projected to decline 9 to 10 percent from a year ago to approximately 220
million pounds. A major portion of processed blueberry production is frozen blueberries for which demand has remained fairly steady in the last few years at around 0.37 pound per person, fresh-weight equivalent. Should projections for 2009 production be realized, this would be the first time that fresh-market domestic production will match or even exceed processing production. As has traditionally been the case, cultivated blueberries comprise most of the fresh-market crop and nearly all the wild blueberry crop moves through the processing sector. Increased availability of fresh blueberries in the United States this year, both from domestic production and imports, combined with lower prices to U.S. consumers through most of the season, likely helped drive up demand during 2009. Even if the growth in imports slows this year compared with last year and exports continue to rise, domestic per capita consumption of fresh blueberries is projected to set a new record high this year, at 0.99 pound per person. Domestic consumption has trended upwards over the last two decades at a growth rate faster than for domestic production. Supply expansion, extended availability, and growing consumer awareness of the health-promoting benefits derived from increased consumption of blueberries all helped to achieve marked increases in domestic per capita fresh blueberry consumption in recent years.

Despite the increase in domestic production, U.S. fresh blueberry imports during 2009 through September were up 25 percent from the same period last year, with volumes from Chile, Canada, Mexico, and Argentina posting significant increases. The only country that shipped less volume to the United States this year to date was New Zealand. Imports from southern hemisphere producers (Chile, Argentina, and New Zealand) for this period reflect previous-crop supplies. Import volume from Canada was up 14 percent, January through September, with most shipments occurring during the summer, while most supplies from the other countries entering the first half of the year. Demand for U.S. blueberries in its major markets in Asia, particularly in Japan, Hong Kong, and Taiwan, helped boost overall U.S. fresh blueberry export volume for this year. Cumulative exports for this year, January through September, totaled 63.5 million pounds, up 1 percent from the same time last year. Over 90 percent of total exports went to Canada. Relative to last year, however, exports to Canada so far this year are down slightly partly due to increased production in that country. Production increases and growth in imports over the past three years has expanded supplies of frozen blueberries in the United States. However, inventory levels have
soared in recent years due to lack of demand growth in this market, driving down frozen blueberry prices. End-of-the year inventories in 2008 were at a record high at 153.4 million pounds, increasing 34 percent from the previous year, based on NASS cold storage data. Prices received by growers in 2008 for processing-use blueberries declined by about 44 percent from the previous year, averaging $0.857 per pound for cultivated blueberries and $0.60 per pound for the wild varieties. Free-on-board (f.o.b.) shipping point prices for frozen blueberries in Michigan in 2008 averaged $1.32 per pound in 2008, compared with the 2007 average of $2.03 per pound. Although processing-use production was projected down in 2009 and imports have slowed, frozen blueberry prices continue to be pressured down by large inventories and weak exports. Primarily because of the lack of need for imports given the current supply situation, U.S. frozen blueberry imports for this year, January through September, mostly from Canada, were down 15 percent in volume from the same time last year. For the same period, sharply lower shipments to Canada and Japan, the United States’ top two export markets for frozen blueberries, drove overall exports this year to date down 42 percent. USDA had purchased a total of 24.6 million pounds of frozen blueberries for donation to child nutrition and other related domestic food assistance programs for
fiscal year 2009 to help return some balance to the U.S. frozen blueberry market. Another 8.4 million pounds of frozen blueberries were purchased for fiscal year 2010. These purchase totals equal approximately 11 percent and 4 percent, respectively, of the 223 million pound average U.S. blueberry production that moved through the processing sector during the last three years.

Australia exempts ag from emissions trading scheme: USDA FAS

From the USDA FAS - Australian Emissions Trading Scheme Excludes Agriculture

The government of Australia agreed to exclude indefinitely agricultural greenhouse gas emissions from the carbon trading legislation. This move does not ensure that agricultural producers will permanently avoid some sort of payment on their emissions.

On November 16, the government of Australia agreed to exclude indefinitely agricultural greenhouse gas emissions from the carbon trading legislation according to media reports and agricultural sources. Nonetheless, most sides agree that this move does not ensure that agricultural producers will permanently avoid some sort of payment on their emissions. Australia’s Parliament still needs to finalize the decision through the legislative process. The National Farmers Federation (NFF) and members of the opposition party in Parliament are quoted in the media as encouraging the government to compensate farmers for improvements that reduce greenhouse gas emissions. The Australian Minister for Climate Change has indicated that the government is looking at how this could be accomplished through either a system of rewards or some sort of payment for their emissions through regulations or taxes.

One local agricultural think tank, the Agricultural Farm Institute, has said that excluding agriculture from emissions trading means that agricultural producers will not need to purchase permits or report their emissions each year. And that means they will avoid emissions taxes altogether. Some of the potential taxes being discussed reportedly include taxing livestock emissions through a tax on milk, dairy products, and meat initially paid for by the dairy or meat processor. Concerns have been expressed that in the end the producers and consumers would bear that end cost. Another possible tax being discussed is a tax on intensive nitrogen based fertilizers. To date, the government has preferred that all emission reducing mechanisms be compliant with the Kyoto Protocol. The government is reportedly interested in changing the Kyoto Protocol carbon accounting rules to allow for carbon stored in soils, pastures, and crops. The NFF said the government should adopt regulations that will reward farmers for their efforts whether or not it is counted towards Australia meeting Protocol targets or not. In addition, the NFF is arguing that Australian farmers should be offered incentives similar to those that are finally agreed upon in the United States.


Composition of Greenhouse Gas Emissions from The Australian Agricultural Sector (2006) (Source: ABARE, Center for International Economics)
Stomach Gas Emissions -65%
Prescribed Field Burning - 13%
Agric. Soils Cropping -12%
Agric. Soils Animal Prod. -5%
Manure Management - 4%

Report: number of US diabetics to double in 25 years

From AFP: Number of US diabetics to double in 25 years: study

WASHINGTON — The number of Americans with diabetes will nearly double over the next 25 years, rising from 23.7 million in 2009 to 44.1 million in 2034, according to a study by the University of Chicago.

In the same period, medical costs associated with treating the disease will triple from 113 billion dollars to 336 billion dollars, even without a rise in the incidence of obesity, according to the study published in the December issue of Diabetes Care.

"If we don't change our diet and exercise habits or find new, more effective and less expensive ways to prevent and treat diabetes, we will find ourselves in a lot of trouble as a population," said lead author Elbert Huang.

The study said its projections, despite being significantly higher than other recent estimates, may be too conservative because they assume the rate of diabetes and obesity, a risk factor for the disease, will remain stable.

In 1991, scientists projected that the number of Americans with diabetes would reach 11.6 million people in 2030, but some 20 years before that date the figure is already double that.

The study's authors acknowledge that obesity rates have risen steadily in past years, but predict that they will level out over the next decade and then decline slightly from the current 30 percent level to around 27 percent in 2033.

The US health program Medicare, which provides health care for older Americans, spends some 45 billion dollars a year on diabetes treatment for 8.2 million people.

By 2034, the number of people with diabetes covered by the program is expected to rise to 14.6 million, according to the study, with associated costs rising to 171 billion dollars a year.

LA Times: Doomsday looming for LA port truckers

LA Times: Doomsday looming for thousands of truckers? From the LA Times from Nov. 27:

The bans are part of the much-acclaimed "clean trucks" initiative that authorities say has already cut toxic emissions about 70% since its introduction in October 2008 at the nation's busiest harbor complex. Parallel state clean-air regulations also go into effect Jan. 1.

Many laud the move toward greener technology in the so-called diesel alley corridor of south L.A. County, where port pollution has been blamed for elevated cancer rates, widespread asthma and other health ailments. Ports nationwide are considering similar bans.

While no one knows for sure, some estimate that the ban will deny more than 5,000 truckers access to their principal source of employment. Many, like Cervantes, are already reeling from the effects of the recession, living paycheck to paycheck.

About 20,000 truckers are registered to work at the port complex, officials say, but regular users amount to about half that number.

Those affected are mostly working-class immigrants from Mexico and Central America who were able to make a living in what was long a largely unregulated, and freely polluting, industry. But clean-air concerns have changed all that.

"This is hitting us hard," said Nelson Romero, president of the National Port Drivers Assn., a group that says it has more than 1,000 members and is seeking to extend the Jan. 1 deadline. "It's not fair that everything falls on us."

The truckers group staged a noisy protest in downtown Los Angeles earlier this month, driving their rigs around City Hall. But officials say an extension is not in the cards.

"We do sympathize with these guys -- everyone's struggling to hold on to a job these days," said Art Wong, a spokesman for the Port of Long Beach. "But the public health risk here is so great that we need to move ahead with this ban on the trucks."

Most truckers have known about the impending ban for more than a year.

Some managed to take advantage of government subsidies to purchase new, "clean" trucks, costing more than $100,000. Others were able to retrofit their older models with filters -- a $20,000 stopgap until 2012, when all rigs not meeting 2007 clean-air standards will be banned from the ports.

"I don't think I could have afforded a new truck without the government's help," said Alejandro Flores, 45, who used a government grant to purchase a 2009 rig that runs on liquefied natural gas.

But truckers say those with new or retrofitted vehicles are a distinct minority. Many had bad credit or simply could not afford the monthly payments, even with subsidies.

"I thought about buying a new truck, but nobody could guarantee me the work I need to pay it off," said Jose Rodriguez, who was buffing the front fender of his 1998 Freightliner, one of scores of trucks waiting in line on a recent evening to pick up loads at the Port of Long Beach.

Rodriguez, who has been a trucker for two decades, says he's not sure what he's going to do come Jan. 1.

"I've supported my family this way for many years," said Rodriguez, 44, a native of El Salvador and father of two who lives in Riverside County. "Now, my wife is worried. I'm worried."

Several truckers in line complained that they were lucky to earn $200 in a 15-hour day, less than half of what they could have netted two years ago. They say companies have slashed rates and passed along costs. Business at the ports is down 15% to 20%.

"We're like slaves," said Federico Garcia, 37, of Lynwood, who said he had already sold his old rig and was working as a company driver now. "We've lost our freedom."

Some community activists who pushed for a cleanup sympathize with the truckers' plight. They point to official assurances that large shipping concerns, not drivers, would pay the price for the cleanup

"We need clean air, but not on the backs of the truckers," said Martha Cota, 46, a long-time Long Beach resident who suffers from asthma, as do her two sons.

Many truckers and their allies complain that much of the public funding went to big trucking firms. Trucking giant Swift Transportation, for instance, received almost $12 million to bring 591 clean trucks into the port. Another major national player, Knight Transportation, was paid $4.4 million to bring in 172 clean trucks.

Officials deny any favoring of big companies. Much of the more than $200 million in clean-truck subsidies went to small firms, often family-owned, said John Holmes, operations director at the Port of Los Angeles. Government aid has helped offset the costs of about 4,000 clean trucks, he said.

"There was no focus on anybody who was bigger than anyone else," said Holmes, who visited the 25 largest U.S. trucking firms to promote the program and ensure there were enough participants. "We're in a delicate balancing act here, too. We want responsible companies in this."

Cervantes was among dozens of soon-to-be unemployed truckers meeting recently at a church in Long Beach. All owned their own rigs. They spoke of losing homes and families, of not being able to pay medical bills, and of a future filled with uncertainty.

"There will be no Christmas for us this year," said Romero of the port drivers association.

Green here to stay?: Green Revolution study by Grail Research

From the PR newswire, "Green Revolution" study by Grail Research


Study Provides Unique Insights to Help Companies Improve Their Communication Strategy and Effectively Influence the Shopping Behavior of Green Consumers

CAMBRIDGE, Mass., Sept. 29 /PRNewswire/ -- Grail Research, a global strategic research and decision support firm, today announced the availability of its study of "green" sentiment, titled "The Green Revolution." The report -- based on a nationwide survey of U.S. consumers -- provides new insights into consumer preferences, behaviors and attitudes toward green products.

"To effectively capitalize on the large and growing market for green products, businesses need to know what's driving consumer purchasing behavior. Our research was designed to help organizations understand how consumers define green, how committed they are to being green and what drives their decisions to purchase green products in specific categories," said Grail Research Client Service Officer Silvia Springolo. "Empowered with that knowledge, organizations can tailor their green communications, branding and marketing strategies to most effectively influence consumer shopping behavior and drive revenues."

The study, which is available on the Grail Research Web site, www.grailresearch.com, was commissioned to address several fundamental questions that the firm believed remained unanswered about the green revolution:

1. What does green mean to consumers? Does it relate to packaging, energy consumption, organic ingredients, all of these or something else entirely?
2. How committed are consumers to sustainable products, especially in tough economic times?
3. How do die-hard green consumers differ from their "light green" counterparts in attitude, behavior and demographics?
4. How effective have leading green companies been at establishing their green market positioning with consumers?

Key findings from Grail Research's "The Green Revolution" report include:

Green is here to stay:

* 84% of consumers currently purchase at least some green products.
* Only 1% of consumers who purchased green products have abandoned the category.
* A high percentage of green consumers expect to convert to green products in new categories, including cleaning products (93%), paper products (90%), fruits and vegetables (89%), electronics/small appliances (88%), durables (81%), packaged food (79%), health and beauty (74%) and apparel (59%).
* Price is the main reason non-green consumers have not purchased green products (69%).

Green consumers are more diverse than many companies believe:

* Green has some penetration in all demographic segments; however, the majority of green consumers are married women with no children under 18 in the home (57%).
* The 8% of consumers that purchase the majority of their products green (i.e. "dark green" consumers) are more likely to be older, more educated and more affluent.
* Dark green consumers have a better understanding of what green means, and their decision to buy green is driven more by environmental and health concerns.
* Dark green consumers are also much more likely than light green consumers to go directly to the green products section of a store.

Purchase drivers aren't just about the product being green:

* Consumers expect green products to be on par or superior to their non-green counterparts with regard to safety (72%), healthiness (70%), quality (66%) and price (65%).
* Each product category has a unique set of green features that is most important for driving purchases. Recyclable product packaging is the only green feature that is considered important for multiple product categories.

Companies' green initiatives are important to consumers, but in many cases they have not been effectively communicated

* 93% of consumers feel that a company's "greenness" is at least somewhat important to their purchase decision.
* However, on average 85% of consumers are unaware or cannot recall the green initiatives of companies like Hewlett-Packard, Estee Lauder and Intel, which are recognized by industry groups as leaders in the green revolution.
* Consumers rely on product labels (63%) and word of mouth (45%) as their primary sources of information about green companies and their products. Advertising (38%) and company Web sites (18%) are not as important to consumers.

The recession has impacted green but not trumped it:

* Almost two-thirds of consumers have changed their green purchase behavior in response to the recession.
* Most of these consumers have switched to less expensive green products (41%) or simply reduced the overall amount of green products that they use/consume (19%).
* However, 16% of consumers have actually increased their use of green products.

For additional information or to access the full report, please visit the Grail Research Web site at: www.grailresearch.com/green_revolution.

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Roubini: Prescription please

From NYUlocal.com, the latest from the gloomy Mr. Roubini:

Likening our fate to one of the apocalyptic films on Dan’s list is probably a more optimistic outlook on the future of civilization than NYU Stern Professor Nouriel Roubini’s latest column about the economic crisis for NY Daily News.

He predicts unemployment will rise throughout 2010 and plateau at 11% for at least two years. Roubini cites the weak labor markets as a possible catalyst for a (terrifying) double dip recession. To avoid imminent doom, he advocates “a bold prescription that increases the fiscal stimulus with another round of labor-intensive, shovel-ready infrastructure projects, helps fiscally strapped state and local governments and provides a temporary tax credit to the private sector to hire more workers.”

What’s he basing all this off? Well, I’ve hidden the facts listed in his article after the jump to give fair warning to anyone who isn’t a freshman: it’s grim reading if you plan on entering the job market before 2013.

# On top of the 7.5 millions full-time jobs that have already vanished, the sum of reduced hours for people who managed to cling onto employment accounts for the equivalent of another 3 million jobs lost.

# There are about six applications for every one job availability.

# Jobs lost in construction, manufacturing and finance are probably gone for good.

# The US is losing an average of 200,000 jobs a month, which is 50,000 more than during the last recession.

# Official unemployment is 10.2%, but you take into account those who have simply given up on finding a job or are forced to work part-time, it is actually around 17.5%.

# Unemployment continued to rise for 18 months after the recession.

Report: Fruits and vegetables best bet for healthy skin

From Emaxhealth.com

Researchers from the UK found that skin with a rosy, yellowish, bright glow reflects good health. The way our skin looks tells a lot about overall health. The scientists also say the way to maintain a healthy skin appearance is by eating a diet rich in fruits and vegetables.

“In the West we often think that sun tanning is the best way to improve the color of your skin,” said Ian Stephen from the University of Bristol “but our research suggests that living a healthy lifestyle with a good diet might actually be better.” The scientists say consuming richly pigmented fruits and vegetables is the best way to improve skin color that is a sign of good health and also naturally attractive.

The researchers used computer software allowing 54 males and females to manipulate skin color to produce the healthiest appearance. The participants chose to increase the yellowness, brightness and rosiness of the skin – tones that reflect good blood flow and good health. The scientists say adding healthy tone to skin occurs naturally by eating more fruits and vegetables.

“Most previous work on faces has focused on the shape of the face or the texture of the skin, but one of the most variable characteristics of the face is skin color,” said Dr. Stephen. “The only natural way in which we can make our skin lighter and more yellow is to eat a more healthy diet high in fruit and vegetables.”

“We knew from our previous work that people who have more blood and more oxygen color in their skins looked healthy, and so we decided to see what other colors affect health perceptions. This has given us some clues as to what other skin pigments may relate to a healthy appearance.”

Yellow tones to the skin are preferred because of ‘carotenoid pigments’ that are found in fruits and vegetables. Healthy skin that is lighter and rosier was perceived as more attractive, compared to dark tanned skin, because it relates to good heart and lung health. Less rosy skin from smoking and disease leads to less rosy skin tones. Eating fruits and vegetables provides the body with antioxidants that lead to good health inside and out, and also produces skin tones that reflect optimal health and well-being.

Canadian Fresh Deciduous Fruit Annual 2009 - USDA FAS

Canada Fresh Deciduous Fruit Annual 2009 - USDA FAS


Cultivated and bearing area of both apples and pears continues on a downward trend in Canada. Bearing area for apples is forecast at 16,149 hectares in 2009/10. Canada’s pear bearing area is expected to drop by nearly 28 percent from 1,095 hectares to 791 hectares in 2009/10. The drop in cultivated area for pears is largely due to CanGro’s January 2008 announcement that it would close its St. Davids, Ontario canning facility – the last fruit canner in the province and the only Canadian cannery east of the Rockies. Overall better weather conditions is forecast to boost 2009/10 apple production to 410,000 MT which imports will continue to represent about 40 percent of total consumption and total about 170,000 MT. In 2009/10 pear production is forecast at 7,600 MT with the 70,000 MT of imports providing 90 percent of total fresh consumption.

Apples Based on preliminary industry reports, prospects point to higher production levels for the marketing year (MY) 2009/10 Canadian apple crop compared to the previous year. Sunnier weather during the spring this year compared to last year’s cloudy skies has greatly aided pollination. Better pollination has led to bigger, less misshapen fruit with the corresponding corollary of higher yields and better pack outs. Post forecasts that 2009 production levels may increase between four and five percent to reach 410,000 metric tons (MT). Canada Statistics nonetheless still anticipates that the cultivated area for apples will continue to fall in coming years. Cultivated area for apples is forecast to drop in 2009/10 by five percent from 20,300 hectares in 2008/09 to about 19,275 hectares due to the Canadian apple industry’s ongoing downsizing. Bearing area is forecast to drop to just over 16,000 hectares. Despite the overall good yields in 2009, especially in British Columbia (Canada’s third largest apple producing province), lower new plantings combined with high production costs and increased competition from imports from the United States and China are pressuring the Canadian apple industry to reduce its overall cultivated area.

Although apple production in 2009/10 was hurt by apple scab in Ontario (Canada’s largest apple producing province) during the summer followed by some hail and frost damage, British Columbia’s very good crop this year is mitigating any potential shortfalls. British Columbia’s strong showing in 2009 comes despite late-season hail storms in the important apple producing region of the Okanagan Valley (affecting mainly the areas north and south of Penticton) that damaged a portion of the crop. While British Columbia’s hail damaged crop has been picked, its suitability only for processing will likely drive down processing apples’ price.

Declining Bearing Area
According to Statistics Canada, the cultivated area for apples during 2009/10 will fall to 19,275 hectares, or by over 1,000 hectares or 5 percent compared to the previous year. Likewise the bearing area dropped to an estimated 16,159 hectares. The decline in cultivated area is part of a multi-year downward trend that has seen cultivated area for apples drop an average of almost 3 percent over the past five years. Changing agricultural practices, resulting in higher density plantings in smaller areas, along with smaller producers exiting the industry due to production costs outpacing market returns is leading to a decline in cultivated area. Of the major apple-producing provinces, Ontario with 6,880 hectares under cultivation in
2009/10 is the largest followed by Quebec (6,232 hectares), British Columbia (3,602 hectares), Nova Scotia (2,226 hectares), and New Brunswick (243 hectares). The following chart illustrates the decline in Canadian apple production during the 10-year period from 1999 to 2008. Production over time evidences an average annual decline of roughly 4 percent during the ten year period. Due to market forces pushing production down it is unlikely that the 2009/10 higher forecasted production levels of 410,000 MT are likely to arrest the long-run downward trend.
Working against producers’ long-term commercial expansion is the declining profitability of apple cultivation. More affordable imports from the United States and China combined with high production costs and a strong Canadian dollar continue to force the apple industry to downsize. Many apple growers are responding to the evolving market situation by converting orchards over to new plantings of vinifera grapes and cranberries, as well as by turning land over for new housing development. Other growers intent on remaining in the industry are turning to newer, more popular varieties such Ambrosia and Honeycrisp and intensive planting systems in an attempt to remain competitive with imports. To assist producers adapt to industry pressures and changing markets, Canada’s federal and provincial authorities have established replant programs (see, Policy Section).

Pears Canada’s cultivated area for pears has dropped roughly by half since the late 1990s. The decline in area under cultivation is primarily the result of urban encroachment on orchards, negative growth in consumption, and the pear processing industry’s downsizing. Ontario, with 526 hectares dedicated to pear cultivation in 2009/10, continues to account for roughly two-thirds of Canada’s commercial pear production. British Columbia, with 243 hectares under cultivation, is Canada’s second largest pear producing province.