Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, January 16, 2009

"not sustainable for retailers and their suppliers"

Steve Lutz of The Perishables Group shot me an email today with produce retail sales and volume numbers from the month of November. The gist, in Steve's words,


The general story—volume off in every produce category except for berries grapes, avocados and lettuce. Prices up nearly 6% for total produce. Net result…higher overall dollars (+3.8%) but volume continues to decline. The trend is not sustainable for retailers or their suppliers.




TK: More coming on the specific numbers, but is interesting to note that while grape volume per store/per week was up nearly 23% in November, total grape dollars were actually off by 0.2% compared with last November. Average retail grape prices in November were off 18% compared with a year ago.


For more info on The Perishables Group:at www.perishablesgroup.com



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Who are you? The breakdown

The latest Fresh Talk poll illustrates the diversity of the blog readership. Previous polls have inquired about the age of Fresh Talk readers, which skews older than you might think. You can find all past Fresh Talk polls at this link. Though many religiously avoid voting in any poll, I thank those who did participate.



Fresh Talk readers: who are you?
Retailer
5 (17%)
Wholesaler
3 (10%)
Grower/shippers
9 (31%)
Association/government
6 (20%)
Public/general
6 (20%)


Votes so far: 29
Poll closed

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Fresh-cut Fundamentals Workshop Set for March 5th in Yuma

The UC Davis Postharvest Technology Research & Information Center today announced a new addition to its portfolio of produce industry educational course offerings: Fresh-cut Fundamentals. The intensive one-day workshop scheduled for Thursday March 5, 2009 in Yuma, Arizona is now open for registration, including online registration at: http://postharvest.ucdavis.edu/Announce/Fundamentals.shtml

The workshop curriculum provides information regarding underlying principles that govern fresh-cut produce quality while providing practical tools for application in the processing plant. Operations, quality assurance, manufacturing and maintenance managers, as well as anyone interested in assuring the quality of fresh-cut produce would benefit from this workshop. The training is geared to all levels of fresh-cut produce industry professionals from small, local and regional produce processors to large businesses with nationwide distribution. The workshop will be highly interactive and hands-on, with attendees sharing information and working in small groups throughout the day.

The program was designed and will be delivered by fresh-cut produce technical experts from three nationally- recognized Universities.
  • Marita Cantwell, Ph.D., UC Davis, Department of Plant Sciences
  • Jorge Fonseca, Ph.D., MBA, University of Arizona-Yuma Agricultural Center
  • Jim Gorny, Ph.D., UC Davis, Postharvest Technology Research & Information Center
  • Bill Hurst, Ph.D., University of Georgia, Food Science & Technology Department
  • Jim Thompson, P.E., UC Davis, Biological & Agricultural Engineering
"This workshop offers an opportunity for anyone working in the fresh-cut produce industry to arm themselves with tools they can use to monitor and control fresh-cut produce finished product quality and ultimately reduce operating costs" said Jim Gorny, workshop faculty director. "With rising production costs and downward price pressures from buyers, finding operational efficiencies while maintaining product quality is imperative for any fresh-cut produce enterprise."

Attendees may register for this and other upcoming educational outreach activities sponsored by the Postharvest Technology Research & Information Center via their website at http://postharvest.ucdavis.edu or by contacting Ms. Pam Devine, registration coordinator, at (530) 754-4326 or pwdevine@ucdavis.edu.

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The deflated CPI and other headlines for Jan. 16

The latest Consumer Price Index confirms the economy is looking a little deflated.

Here is the link to today's Consumer Price Index from the Bureau of Labor Statistics, which showed an overall decline in prices in December. The report showed that, on a seasonally adjusted basis, the CPI decreased 0.7% in December, which was the third consecutive decline. The index is only 0.1% higher than December2007.

The BLS reported the fruits and vegetable index declined 2.4% in December, the fourth consecutive decrease, with fresh vegetables down 4.4%.

In good news, the transportation index fell 4.4% in December, the fifth consecutive monthly decrease. The index is down 13.% over the past year.

Average price data show that the average price of red delicious apples slipped to $1.18 per pound, down from $1.26 in November but up from $1.12 at the same time last year.

The average price for navel oranges was 93 cents per pound, off from $1.06 in November but up slightly from 91 cents per pound in December 2007.

The average retail price for bananas was reported at 63 cents per pound, down from 64 cents per pound in November but up from 53 cents per pound the same time last year.

Tomatoes registered average retail prices of $1.73 per pound in December, up a penny from November but down from $2.15 per pound in December 2007.


Here are other headlines snatched from the Web this snowy morning in KC:

Sow the seeds program offering grants
grants to help farmer education in extending fruit and vegetable season in Wisc., Minn., and Iowa.

Retailers must adapt, Wal-Mart official says
Some suppliers may go bankrupt, says W-M exec. Also notes rise in use of multiples (two for one, etc) and coupon use

Eating low fat doesn't have to be high cost Very positive article about fruit and veg affordability, with one nutritionist saying fresh produce provides great "bang for buck." Top low fat foods that are kind on the budget include: eggs, apples and other fruit, canned vegetables and beans.

North America's demand for fruits, vegetables expected to grow
News release about Rabobank report; no link provided to actual report, tho.

Community growth through food
Report about CSAs in northwest Ohio

Disagreements likely to flare up again over COOL
Will Congress close loopholes?

Pestered over pesticide use
A sharp British retort to EU regulation:

People have been consuming conventionally-grown fruit and vegetables for many decades, yet when is the last time someone dropped dead from pesticide poisoning? (Unless it was a desperate farmer driven to suicide by ceaseless meddling from EU bureaucrats).


Trucking restrictioins eased in Florida because of cold snap

Sales of organic mushrooms remain strong From The Packer

Weak pound to hike banana prices in England


U.S. food makers ask Obama to increase FDA funding

GMA asks for $900 million in food related spending at the FDA by fiscal year 2012, up from $510 million in fiscal year 2008, also request authority to put in place mandatory recall and standards for f/v producers.

Vilsack not the right choice for ag secretary From the Progressive...

Obama could have picked someone who was knowledgeable about organic farming and local and regional food systems. Someone who knew the difference between growing food and growing commodity crops.Someone who felt more at ease mending a fence or thinning carrots than sitting in a corporate boardroom.

TK: Right!

Napolitano outlines immigration policy she expects demand side and supply side responses

Mexico's same store sales fall 1.7% in 2008



Roubini: Bank bailout $1 trillion short

Major drug bust in Fresno

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