COOL heats up and other headlines

Agriculture Secretary Tom Vilsack was supposed to have a teleconference today concerning possible new unofficial guidance on country of origin labeling. The event didn't happen, and one Washington lobbyist suggested that the USDA was trying to bring industry stakeholders out of the loop (USDA apparently held meetings with meat groups and big farm lobby groups Tuesday morning and briefed consumer groups that afternoon but excluded some stakeholders, including fresh produce ) up to date on its new views on COOL before facing the press. The guidance hasn't been released yet, but it is expected to raise the bar on meat labeling, roasted peanuts and, possibly, fresh cut produce. Here is some coverage found on the Web tonight:

USDA proposed changes to COOL could cloud Obama's trade talks Sally Schuff

Uncertainty about what changes will be proposed was heightened this morning when USDA abruptly cancelled a press teleconference on the issue, which had been scheduled for 10 a.m. EST.David Ray, American Meat Institute spokesperson, told Feedstuffs that AMI "met with the Secretary yesterday morning (Tuesday) and were told we could expect a letter detailing his views." AMI was not on the USDA call on Tuesday when consumer groups were reportedly being briefed by USDA officials.The COOL rule has been under review by the Obama Administration as part of a White House instruction from Chief of Staff Rahm Emmanuel. All departments were ordered to review Bush Administration rules made during the final weeks of that Administration that had not yet gone into effect.Ray pointed out that the interim final COOL rule became effective on September 30th, 2008. Changes to that rule were incorporated into the Final Rule, which was published in January, 2009. The Secretary said USDA will implement the Final Rule published in January on its planned effective date of March 16, 2009, Ray noted.

U.S. meat label idea may revive Canadian trade spat Chuck Abbott and Reuters

Vilsack asked meatpackers during a meeting on Tuesday to voluntarily put more details on meat labels. The Agriculture Department delayed a public unveiling of the plan on Wednesday but a spokesman said Vilsack was going ahead with the idea.

"The damage is done," a U.S. farm lobbyist said, because USDA increased frictions just before the U.S.-Canada meeting. Said another farm lobbyist: "The whole thing blew up in their faces." The lobbyists spoke on condition of anonymity.

Other headlines snatched from the Web tonight....

Will fighting climate change cost us, or save money? Seattle PI.com
Two new competing studies present squarely opposite pictures on the costs of fighting climate change. And it may just be that they're both right.
The cost to Washington of doing nothing would rise to $3.8 billion annually by 2020, according to a study by the University of Oregon's Climate Leadership Initiative and ECONorthwest, a consulting firm.
The other recent report came from the Colorado-based Western Business Roundtable, and it took the approach of adding up the costs associated with the Western Climate Initiative, the Cap'n Trade program being advanced by Washington, other Western states and a number of Canadian provinces.The Business Roundtable figures that putting the Western Climate Initiative into effect would cost Washington $4.3 billion annually by 2020, translating into a $2,300-per-family penalty. The study says:

In addition to directly harming consumers, the higher energy prices likely to result from a WCI-like plan could seriously affect the production side of the West's economy. Contrary to claims that the WCI plan would spur an economic stimulus from "green investment" and "green-collar" job creation, the approach is much more likely to retard economic growth, GDP and job creation.

That's a key point. If green jobs could save our economy, that would be one thing. But if not, these costs would be real, and not offset.

Basin, Western Fuels wins BNSF rate case chron.com

Expand need grants to students in U.S. illegally Seattle Times

What is misunderstood or unrecognized is that these students and their parents contribute greatly to our state's economy. For one, they are taxpayers themselves. With every job held, or every purchase made, they pay taxes.The value of their work is most evident in agricultural, where Washington state ranks No. 1 in production of several hand-harvested crops, including red raspberries, hops, apples and sweet cherries. In 2007, Washington produced 91 percent, 77 percent, 57 percent and 51 percent, respectively, of those crops harvested in the entire United States. Their combined value: more than $2.2 billion in 2007, with apples valued at $1.75 billion.

Chilean grape volumes should rise in March Coverage from The Packer

Japan food trends: February USDA FAS

Some people are purchasing specialty boxed lunches, which one would normally eat outside, just to take home to eat. Supermarkets are shifting to lower priced items and changing group stores from the flagship brand to the lower brand stores.


Obama fights foreclosures NYT

Almost one in 10 home mortgages is either delinquent or in foreclosure, and analysts estimate that at as many as six million families could lose their homes over the next three years in the absence of government action.The plan has three components. The first would help homeowners who are still current on their payments, but who are paying high interest rates and cannot refinance because they do not have enough equity in their homes, a problem afflicting growing numbers of people as housing values tumble.A second component would assist about four million people who are at risk of losing their homes. It would provide incentives to lenders who alter the terms of loans to make them affordable for the troubled borrowers. A third component would try to increase the credit available for mortgages in general by giving $200 billion of additional financial backing to Fannie Mae and Freddie Mac.

IFOAM: Organic movement still growing

From the inbox tonight, an updte from BioFach 2009:


(Bonn, Frick, Nuremberg, February 18, 2009) The International Federation of Organic Agriculture Movements (IFOAM) and the Research Institute of Organic Agriculture (FiBL) will present the latest statistics about organic agriculture worldwide at BioFach 2009. The results of the study titled ‘The World of Organic Agriculture: Statistics and Emerging Trends 2009’ will be presented at the world’s largest trade fair for organic products on Friday, February 20th 2009, at 10 a.m. in Room Shanghai of the Messezentrum Nürnberg.

32.2 million hectares are certified according to organic standards (data as at the end of 2007). “Compared to the data of the previous survey, 1.5 million hectares more were reported”, says Helga Willer of FiBL. “At the level of the geographical regions, growth was strongest in Latin America and Africa.”

“The growth in developing countries shows that organic agriculture can contribute to meaningful socio-economic and ecologically sustainable development, especially in poorer countries,“ notes Diane Bowen, IFOAM’s Interim Executive Director.

With its vast grazing lands, Australia continues to account for the largest certified organic surface area, 12 million hectares, followed by Argentina (2.8 million hectares), and Brazil (1.8 million hectares). The greatest share of the global organic surface area is in Oceania (37.6 percent), followed by Europe (24.1 percent) and Latin America (19.9 percent). In terms of certified land under organic management as a proportion of national agricultural area, the Alpine countries, such as Austria (13.4 percent) and Switzerland (11 percent), top the statistics. The global market for organic products reached a value of over 46 billion US Dollars in 2007, with the vast majority of products being consumed in North America and Europe, according to Organic Monitor.

"Policy makers in developing countries need to know the number of farmers involved in organic agriculture as well as its challenges and development potential globally. This type of information is difficult to find but is crucially important to help support the sector's development. ‚The World of Organic Agriculture’ provides a unique and important global service in this regard," says Alexander Kasterine, Senior Market Development Officer at the International Trade Centre.

The results of the study ‘The World of Organic Agriculture’ are presented for the tenth consecutive year at BioFach. In addition to the chapter on organic agriculture worldwide, the book contains completely revised reports about the emerging trends in the geographical regions as well as background information on issues like standards and legislation, food security or the activities of UN organizations. The study includes comprehensive data sets and numerous illustrations and graphs. Further data are available at the newly launched www.organic-world.net homepage.

Since 2008, support has been provided by the Swiss State Secretariat of Economic Affairs (SECO), within the framework of its support activities for organic production in developing countries and by the International Trade Centre (ITC). NürnbergMesse has supported the performance of the global survey and production of the yearbook, carried out by IFOAM, FiBL and the German Foundation Ecology & Agriculture SÖL, since 2000.

Pictures from Fruit Logistica

Pictures courtesy of Kevin Moffitt of Pear Bureau Northwest

Stimulus breakdown

Found a helpful link to unpack the various parts of the stimulus package. Find it here.

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

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


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

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

Here are the responses to your query:

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

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

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

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

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


Other headlines snatched from the Web this morning:





Obama signs stimulus bill Business Journal

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

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

More stimulus coverage from Philly.com.

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

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


Changing of the guard at Wal-Mart CNN

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

Wal-Mart outpaces a weak economy NYT

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

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

New York fruit values drop Democrat and Chronicle.com

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

Vilsack COOL press conference postponed AgWeb


Detecting striped versus blushed honeycrisp apples Science Daily


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

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

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

French biotech policy measures bogged down USDA FAS

Taiwan's new organic labeling rules USDA FAS

Microstrategy signs deal with Whole Foods Indus Business Journal

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

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

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


Seeking more crop per drop California Farm Bureau

Obama to announce foreclosure plan CNN

NRA on NYC menu labeling

This arrived last evening in the inbox from the National Restaurant Association:

National Restaurant Association Executive Vice President for Public Affairs Beth Johnson issued the following statement in response to today's U.S. Court of Appeals decision to uphold a New York City Board of Health regulation that dictates how nutrition information should be provided in some of the city's restaurants:

“The only way to ensure consumers get the nutrition information they want and need is for the federal government to establish a uniform national nutrition standard that requires chain restaurants to provide consistent, detailed nutrition information in writing in their restaurants.

“The decision by the U.S. Court of Appeals for the Second Circuit in favor of the New York City menu labeling mandate does not help more consumers get more nutrition information. Rather, it makes a confusing patchwork of state regulations even worse. As a growing number of cities and towns move ahead with different versions of menu-labeling mandates for restaurants, America’s consumers face a bewildering array of locally mandated nutrition data. Some people may get access to more information – but no one is getting all the nutrition information they need to make smart food choices when dining out. We need one national standard so everyone can have access to the nutrition information they want when they want it. And that is what the LEAN (Labeling Education and Nutrition) Act will provide.

“The LEAN Act is based on the success of the federal Nutrition Labeling and Education Act (NLEA) and proposes expanding it to restaurants. NLEA was enacted over a decade ago to provide consumers with nutrition information on packaged foods and beverages. It has been credited with helping consumers make healthier food choices when shopping for food or eating at home. The LEAN Act will expand NLEA to require point-of-sale nutrition data on standardized menu items sold by chain restaurants. This gives customers in chain restaurants the same comprehensive nutrition data about menu items that they have gotten used to reading on packaged food labels.

“Until we have a single, consistent national nutrition standard to provide detailed nutrition information in chain-restaurant locations to every consumer, we will not be giving people the information they want and need to make smart food choices when they dine out.”