Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, January 14, 2009

Fruit and vegetable consumption - Will price make a difference?

Here is a USDA ERS report called "Fruit and vegetable consumption by low income Americans: Would a price reduction make a difference?"

At first blush, I have to say the title of the report appears incredibly condescending. Think about it; Do fruit and vegetable prices matter to a low income American, or is he so stupid that higher prices might move the consumption needle?

Of course, that kind of meaning is not the authors intent. Here is an excerpt from the executive summary:


American diets continued to fall short of the recommended consumption levels of fruits and vegetables. On average, Americans consumed 1.03 cups of fruits and 1.58 cups of vegetables per day in 2004, compared with the recommended 1.80 cups of fruits and 2.60 cups of vegetables Individuals eligible for benefi ts through the Supplemental Nutrition Assistance Program owincome consumers) ate even smaller amounts of fruits and vegetables—0.96 cup of fruits and
1.43 cups of vegetables. Using a range of price elasticities and estimates of food consumption by low-income Americans, USDA’s Economic Research Service calculated that a 10-percent price discount at the retail level would encourage low-income households to increase their onsumption of fruits by 2.1 to 5.2 percent (from 0.96 cup to 0.98-1.01 cups) and vegetables by 2.1 to 4.9 percent (from 1.43 cups to 1.46-1.50 cups). In 2004, low-income households spent $3.91 billion on fruits and $3.71 billion on vegetables at retail outlets. Discounting the prices of fruits and vegetables by 10 percent for low-income households would cost the Government, on average, about $308 million per year for fruits (7.9 percent of recent expenditures on fruits by low-income Americans) and $274 million for vegetables (7.4 percent of recent expenditures on vegetables by low-income Americans).

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CAC coverage and other Jan. 14 headlines

The California Avocado Commission continues to receive media scrutiny. Here are a few links on that and the other news of the day:

The Packer coverage
The lede:

California’s attorney general is reviewing an audit of the California Avocado Commission’s credit card expenses, which total more than $1.5 million over a three-year period.

LA Times coverage The lede:

Something has been rotten at the state agency behind a splashy $7-million annual marketing blitz on television, billboards and in food magazines to promote California-grown avocados, a new state audit indicates.

SF Chronicle coverage
(AP) The lede:

The former head of the California Avocado Commission misspent tens of thousands of dollars in farmers' contributions to remodel his home office and purchase an iPod, plasma TV and other personal items, according to a state audit released Friday.

The New York Times
The lede:

Luxury suites. Shopping sprees. Four-star hotels. Such was life in the high-flying world of the California Avocado Commission. That, at least, is the image presented by a blistering report released last week by the California Department of Food and Agriculture, which painted the commission, a state-established trade group financed by growers, as a kind of free-spending, avocado-gone-wild farm party.

TK: These headlines are sober reminders that the responsibility of member/industry oversight of commissions and associations is not to be taken lightly.


More headlines....

School takes fresh cut apples off menu because of listeria concerns
Wisc. district acted as precaution

Drop in U.S. trade deficit small comfort as exports keep plunging


Illegal immigrants stay in U.S. despite recession
Study to be released today by the Migration Policy Institute in Washington.


Hot and dry conditions stir drought concerns in California

Food addiction may be cause of obesity
High sugar foods may trigger craving like an addiction


Key parts of Georgia immigration law not enforced State agencies are not using federal database to check status of applicants.

California growers fight lettuce virus
From The Packer

Farmworker advocaates sue over new H-2A rules


Chiquita protection scandal resurfaces

Guest workers needed for Australia citrus harvest

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Organic dustup

The Senate Agriculture Committee will conduct a hearing today at 10 a.m. to review the nomination of Governor Tom Vilsack for the Agriculture Secretary post. Meanwhile, organic consumer advocates continue to raise a ruckus about the pick while organic corporate interests have been supportive. Should be interesting if this topic comes up today. From the Cornucopia Institute, a comment about the divided organic community.

"We hate to see what appears to be the grassroots lining up in opposition of this nominee and corporate investors breaking with their most dedicated customers. This split is not healthy for the organic community," Kastel added.

Although The Cornucopia Institute is not endorsing either petition drive, they have not given up hope that the election of Barack Obama will usher in material changes at the USDA's National Organic Program.

In a candid communiqué to the Obama transition team, The Cornucopia Institute described the USDA's National Organic Program (NOP) as "dysfunctional" and experiencing a "crisis in confidence" and asked for the Obama administration to make its rehabilitation a priority.

Their letter described the NOP’s long-standing adversarial relationship with the majority of organic farmers and consumers and the groups that represent them. It said, based on information gathered from freedom of information documents: "Senior management, with oversight of the NOP, has treated industry stakeholders arrogantly and disrespectfully and has overridden NOP career staff when their findings might have been unfavorable to corporations with interests in the organic industry.”

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Fresh cut veggies duck the recession

The latest Fresh Talk poll attempted to identify the most recession-prone fruits and vegetables. Alas, the list was just a partial one, so it wasn't really a fair vote. I was amazed that fresh cut vegetables avoided any votes at all in the survey which was stated as follows:

What commodity is most vulnerable to a pullback in consumer spending on produce?
Asparagus
17 (37%)
Fresh cut fruit
13 (28%)
Fresh cut veggies
0 (0%)
Pineapple
10 (22%)
Clementines
5 (11%)


Votes so far: 45
Poll closed

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