Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Tuesday, February 10, 2009

Senate passes stimulus

From C-Span today:


The Senate, by a vote of 61-37 passed H.R. 1, the economic stimulus legislation. Three Republican Senators voted for passage.

See this link for the debate. What are the differences between the House and Senate versions? From the AP:

Key differences between the $827 billion Senate version of President Barack Obama's economic recovery plan and the $820 billion version that passed the House last month.

SPENDING

_State aid: The Senate bill has $39 billion in education aid to states. The House measure includes $54 billion. It also includes a separate $25 billion block grant for states to use on other programs.

_Direct aid to individuals: The Senate devotes $17 billion for one-time $300 payments to Social Security recipients, poor people on Supplemental Security Income and veterans receiving disability and pensions. The House has $4 billion to provide a one-time additional Supplemental Security Income payment to poor elderly and disabled people of $450 for individuals and $630 for married couples.

_School construction: The House provides $19.5 billion to build and repair school and university facilities. The money was stripped from the Senate bill.

TAXES

_Alternative minimum tax: The Senate devotes $70 billion to "patch" the alternative minimum tax, saving more than 20 million taxpayers a 2009 tax increase averaging about $2,000. The House bill does not include that provision.

_Homebuyer tax credit: The Senate provides $35.5 billion for a $15,000 tax credit for purchasers of homes bought in the year after the bill takes effect. The House includes $2.6 billion and limits its smaller $7,500 credit to first-time homebuyers for homes purchased from Jan. 1, 2009 to July 1, 2009 and phases out the credit for couples making more than $150,000.

_Carbuyer tax deduction: The Senate devotes $11 billion to make interest payments on loans for new cars and automobile sales taxes deductible. The House bill does not.

Chat - Don Goodwin



Don Goodwin is president of Golden Sun Marketing, Minnetrista, Minn., and is chief operating officer and partner in Imagination Farms, the licensee for Disney's Garden Fresh label. Don on Feb. 10 took time for a chat with The Packer’s National Editor Tom Karst.





9:58 AM me: Don. Thanks for making time for another Fresh Talk chat. I understand you just returned from Fruit Logistica. What did you hope to accomplish there and were you pleased with the show?
10:00 AM Don: I was very pleased with the show. My goals for this show are much different than the goals I have for PMA. My focus at Logistica is to spot trends; products, packaging, and themes. I look for these on behalf of our clients at Golden Sun Marketing which include seed distributors, grower/shippers, distributors and retailers.
10:02 AM me: Don. did you get a feel on how is the economy impacting the produce trade in Europe? Do you think the challenges are the same, for the most part?
10:04 AM Don: Many people mentioned the economy in our meetings. I suspect that the impact is similar in Europe as it is here in the US. People mentioned a shift in demand to lower priced items. Despite the economic issues, I did spot a fair amount of new or re-emerging ideas.
10:06 AM me: There is a sentiment about consumers trading down. In your discussions with your clients and others, how do you think that will influence both retailers and consumers when it comes to produce brands like Disney and other labels that carry value in the market place?
10:08 AM Don: While I suspect we have been impacted with the Disney program, it has been hard to spot as we continue on a strong growth track. Many retailers are looking for ways to spike sales. Branded programs can do this if deployed correctly.
10:10 AM me: Yes, branded programs can grab attention... just this week HyVee is running Disney oranges at 69 cents/lb in the KC market. Don, how long have you operated Golden Sun Marketing. What's a typical week like for you, and how do you contrast it to the days you were at Target and working for others in the industry?
10:16 AM Don: Golden Sun Marketing(GSM) was formed in November, 2003. We focus on strategy and marketing for the fresh produce supply chain from seed to retail. A typical week usually includes air travel, conference calls and client meetings. It is much different than my days at Target as focus much of my time on strategy while moving from project to project. We are always looking for ways to bring our clients insight. Attending Fruit Logistica is about gaining insight.
10:18 AM me: Where did you grow up? When did the fresh produce/business bug bite you?
10:20 AM Don: I grew up 30 minutes south of Chicago. I started working for Jewel Food Stores at 16 years of age when Jewel was an independent company. After a few months bagging groceries, they moved me to produce. I loved it from the first moment I built a display
10:22 AM me: What's the equivalent challenge for you today - what keeps you motivated and energetic?
10:25 AM Don: I feel I have always had a strong inner desire to achieve and learn. The industry is fast paced and provides many opportunities to learn. I am intrigued by how we can learn something new and implement it with one of our clients to achieve results. How can GSM help their clients implement some of the trends we spotted at Fruit Logistica? It is a fun challenge.
10:28 AM me: Great insights. One last question and I should let you go. As you look ahead to 2009 and beyond, are you optimistic our country can weather this recession? Do you think it will profoundly change the industry?
10:33 AM Don: I am optimistic but cautious. I think this may be the longest and deepest recession that I will ever experience in my lifetime. It will and should change our industry. We need to adapt more quickly to the consumer's needs. They are screaming for value while still expressing an interest in healthy eating. We, as an industry, are capable of leveraging the recession if we can reinforce that healthy eating and value can be synonymous.
Thanks for the opportunity!
10:34 AM me: Don. Thanks again. I appreciate your time.

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Produce promotions - Red hot valentine



Produce promotins from Feb. 11 through Feb. 17 featured hot deals on Chilean grapes, asparagus, blueberries, oranges, potatoes, apples and more. A sampling:


HyVee
69 cents/lb for Disney jumbo navel oranges
Butter gold potatoes: $2.48/5 lb bag
Vine ripe tomatoes: 68 cents/lb
Plumcots: $1.99/lb
Pink lady apples: $1.28/lb
Chilean blueberries: $1.99/6 ounce
Dole Iceberg lettuce: 69 cents/head

Price Chopper
Blueberries: $2.99/pint
Asparagus: $1.39/lb
Red delicious apples: $1.29/lb
Earthbound Farm organic mini carrot: $1.69/16-oz bag


Hen House
Asparagus: $1.69/lb
Sweet and juicy peaches: $1.49/lb
New Star Baby Spinach: $4.99/16 oz
Italian kiwifruit: 4 for $1
5-lb bag of Russet potatoes: 2 for $4
Jumbo artichokes: 2 for $4
Green Giant portabella mushrooms: $2.99/lb
Green, purple or orange cauliflower
Man''s Steam in bag vegetables: 2 for $4, 12-ounce, assorted varieties



Hen House 2-day sale Feb. 13-14
Dole bananas: 49 cents/lb
Red delicious apples: 49 cents/lb

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Avoiding catastrophe: Obama's plea for stimulus bill and other top headlines

An excerpt from President Obama's press conference on Monday. I missed the press conference last night. I've heard mixed reports about it. How did he do?




Other headlines snatched from the Web:

Economic crisis comes first Washington Post coverage of Obama presser

Heart shaped potatoes hit shelves
The Mirror
Supermarkets are to introduce an ideal treat for Valentine's Day romantics - heart-shaped potatoes. The unique roasting spuds grown in France are now allowed to be sold in Britain after an EU ruling banning the sale of misshapen fruit and vegetables was scrapped in November.

Napolitano: recession could help efforts to curb illegal immigration FoxNews

Grapes on Wal-Mart floor cause $50K in injuries, suit says From The Record
Betty Gomerac was shopping at the O'Fallon Wal-Mart on April 23, 2007, when she fell on grapes that were spilled in the aisle, according to the complaint filed Feb. 4 in St. Clair County Circuit Court. Because of the fall, Gomerac was made sick, sore, lame, disordered and disabled, received injuries to the soft tissues of her cervical, shoulder and lumbar area and incurred medical costs, the suit states.

Markey pushes climate change legislation From FT
Mr Markey said the debate in Congress was no longer focused on whether to pass climate change legislation but on how much to spend on it. His committee’s goal is to complete legislation by Memorial Day so it can go to the House floor.

Access to local food sprouting on the Web
Portland Press

Dubbed the Maine Street Marketplace, the delivery system is the latest initiative by Maine farmers to meet the growing demand for locally grown food, fueled by concerns over global warming, high energy prices and food safety.Brenner and Penny Jordan, co-owner of Jordan's Farm in Cape Elizabeth, are leading the initiative, along with the Greater Portland Council of Governments; Cape Farm Alliance; Threshold to Maine Resource Conservation and Development, and the University of Maine Cooperative Extension in Cumberland County.




Multivitamins disappoint Newsday
Researchers suggest to get nutrients from food: vitamins do nothing to prevent cancer or heart disease. Score for fruits and vegetables....

U.S. relies on states for food safety inspections
From AP

State investigators performed more than half the Food and Drug Administration's food inspections in 2007, according to an AP analysis of FDA data. That represents a dramatic rise from a decade ago, when FDA investigators performed three out of four of the federal government's inspections. The Agriculture Department is responsible for meat and dairy safety.

Increased inspection responsibilities have not been accompanied by big spending increases in many states responsible for the bulk of the nation's food production.

The FDA covers some costs for states to perform inspections. But in Pennsylvania and Ohio, for example, each state's own food safety spending increased only slightly since 2003, less than the rate of inflation; in California and Massachusetts, just barely more than inflation; and in New Jersey, spending has remained about the same. Those are among states with the largest numbers of food-processing plants.

Pentagon reports troop obesity up USA Today
From 1998 to 2002, the number of service members diagnosed as overweight remained steady at about one or two out of 100. But those numbers increased after 2003, according to the study, and today nearly one in 20 are diagnosed as clinically overweight.





21 supermarkets fined in NY for selling expired foods From Newsday:
Whole Foods hit for more than $12,000

Growers and buyers pack house for MDA event From American Farm
A buyer-grower meeting attracts near 180, spurred by interest in local food

Produce is foodservice focus
QSR
Leaders from Produce Marketing Association (PMA), National Restaurant Association, and International Foodservice Distributors Association (IFDA) have joined forces on a multi-phase project to identify opportunities to increase fresh produce use in foodservice to promote healthy lifestyles.

Canadians pay wide range in prices for healthy foods
CBC news
Research from Heart and Stroke Foundation..
"Healthy eating is in danger of being out of reach for many Canadians, a problem which may only get worse given the current downturn in the economy."

UK official: recession could be worst in 100 years
Reuters. Yet this Bloomberg columnist published in Seattle PI says we aren't headed to a depression.

Buying organic "well worth the cost" From Natural News

An Armyworm invasion - what if?
Dennis Avery in American Daily

Senate stimulus bill lacks E-verify reauthorization
News release from FAIR

U.S. dairy farms in crisis Reuters
Many of the more than 60,000 dairy farms in the United States have been cutting costs, selling off their cows, or leaving the dairy business altogether as milk prices plummet 35 percent in just the past two months while dairy farm operating costs remain uncomfortably high.

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