Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, February 27, 2009

Taking the air out of commodity prices and other headlines

People gotta eat, but it kinda smells like deflation in the recent Ag Price report. From the report:


The preliminary All Farm Products Index of Prices Received by Farmers in February, at 127 percent, based on 1990-92=100, decreased 12 points (8.6 percent) from January.

Fruits & Nuts:  The February index, at 121, is up 1.7 percent from January but 18 percent lower than a year ago.  The price increase for strawberries more than offset price decreases for apples, lemons, and oranges.

Commercial Vegetables:  The February index, at 130, is down 25 percent from last month but 10 percent above February 2008.  Price declines for lettuce, broccoli, cauliflower, and onions more than offset price increases during February for snap beans, sweet corn, and tomatoes.

Potatoes & Dry Beans:  The February index, at 157, is down 5.4 percent from last month but 17 percent above February 2008.  The all potato price, at $8.94 per cwt, is down 46 cents from January but up $1.43 from last February.

Salad category faces economic hurdles Coverage from The Packer and Dawn Withers

According to a July 2008 report by market research firm Mintel Group International Ltd., Chicago, Dole has 29% of the market "but is struggling with declining sales and has lost nearly a full percentage point in share during 2007 and 2008. According to figures from Chicago-based market research firm Information Resources Inc., retail bagged salad sales (excluding Wal-Mart) for the year ending Jan. 25 totaled $2.85 billion. Of that, Fresh Express accounted for $1.21 billion (42%), and Dole sold $807 million (28%).

Mortgage delinquencies up to start the year Housing wire.com
Delinquent mortgages are continuing to pile up according to a new report released Friday by Equifax Inc., which showed the number of mortgage holders who were 30-days-past due in January was up 50 percent from last January. Projections indicate, according to the report, that 30-day mortgage delinquencies, which have continued to increase, will result in even more 60- and 90-day delinquencies.


Budget choices test Obama's political skills
NYT opinion

For divided Congress making up is hard to do
National Journal

Democrats line up behind Obama's ambitious budget
NYT

Best of the heart healthy foods
Examiner.com
Several studies have found that serving for serving, vegetables rule when it comes to preventing a heart attack.This point was demonstrated recently by researchers who analyzed the diets of 680 people who were brought to a European hospital with suspicious symptoms of a heart attack.  Half had had a heart attack but the other half didn't.No surprise -- it turned out that those who didn't have a heart attack were healthier eaters than those who were admitted and treated. But the researchers took their scientific data further and came up with estimated odds for developing heart disease based on intake of fruits and vegetables in both groups.


What do the numbers mean on my fruits and vegetables?
Examiner.com

Color test enhances tomato analyzer software

Safeway earning call transcript Seeking Alpha

USDA Ag Outlook Forum links

Here is the link to the speeches and presentations at USDA's Agricultural Outlook Forum.

Here are some selected highlights:

Keynote Address
Tom Vilsack
Secretary of Agriculture
Webcast

2009 Agricultural Economic Outlook
Foreign Trade Outlook
Joseph Glauber
Chief Economist, USDA
Webcast
Speech Presentation


Food Prices & Market
Chris Policinski
President & CEO, Land O'Lakes, Inc.
Presentation

U.S. Food & Nutrition Assistance Programs: How
Good is the Safety Net?

Steven Carlson, Director, Office of Research, Nutrition,
and Analysis, Food and Nutrition Service, USDA,
Alexandria, VA
PDF

Transportation Issues: Now and Tomorrow
Moderator: David R. Shipman, Associate Administrator,
Agricultural Marketing Service, USDA, Washington, DC

USDA is carrying industry's water - thank God

The USDA has recently announced a campaign that will encourage Americans to "eat healthy" during this recession. This is a well-timed campaign, both an aid to consumers and a helpful message to the fruit and vegetable industry. From the story

The USDA has launched an ad campaign to educate parents about the importance of making sure kids get good nutrition and exercise.The department said few children get enough vigorous exercise or eat the recommended five servings of fruits and vegetables a day.

Agriculture Secretary Tom Vilsack said good nutrition should be a priority, even in a recession."If your youngster is overweight and has juvenile diabetes, there is a huge cost to society and a huge cost to your family medical expenses and you have to factor that into your decision-making process," Vilsack said.Vilsack said if families can't afford fresh food, they can buy canned or frozen vegetables and fruits -- they have a longer shelf life and are relatively inexpensive.According to the USDA's dietary guidelines, children and adolescents should try to get at least 60 minutes of physical activity most days of the week or, preferably, every day of the week.


TK: This story illustrates why the fresh produce industry has never felt compelled to field a credible generic message to consumers. The government is doing the "heavy lifting," putting the good news out about the benefits of fruits and vegetables (in any form, by the way), not to mention good ole exercise. The "voice" of the industry to consumers is quiet. While the Produce for Better Health Foundation does many good things for the industry, it does not have the dollars to spend on mass media. Likewise, this USDA program will only receive limited press notice, as it is largely a public relations effort. While we can thank heaven  fruits and vegetables are supported in government nutrition policy, I believe the industry has abdicated the responsibility of funding, crafting and delivering a generic fresh produce promotion message.. Changing this reality would necessitate the creation of a promotion or marketing order for fresh produce. I hear no buzz about that issue whatsoever. I think the bargain of USDA promotion of fresh produce robs the fresh produce industry's standing with consumers.



Calderon: U.S. should fix economy, then immigration AP

In an interview with The Associated Press, Calderon said his pragmatism dictates that "the priority right now is to re-establish some kind of order in the economy.""Immigration reform is a commitment of President Obama; I know that and he told me that, and it could be a very good thing to do in favor of Mexico and other nations," Calderon said in English. "But the best thing that President Obama and his government could do in favor of Mexico and the region is to solve the economic problem in the U.S."


Let the immigration reform debate begin About.com


Fruits and veggies: nutrients take a dive Environmental Working Group

Not only does it taste worse than it did 50 years ago, but our fruits and veggies also contain fewer vitamins and nutrients, according to the February issue of the "Journal of HortScience."Donald R. Davis, a former research associate with the Biochemical Instititue at the University of Texas, Austin, claims that your local produce aisle contains five to 40 percent fewer essential minerals, including magnesium, iron, calcium and zinc.
Davis points the finger at what's called the "dilution effect," claiming jumbo-sized fruits and vegetables, which are more common now than five decades ago, contain more mineral-diluting "dry matter" and fewer nutrients.Additionally, growing consumer demands for fresh fruits and vegetables have caused farmers to use chemical fertilizers and pesticides to create a faster harvest, which means produce has less time to absorb nutrients from the soil. Selective breeding, which helps increase crop yield, may also be at fault. One study of commercial broccoli grown in 1996 and 1997 in South Carolina found that this "genetic dilution effect" may have led to declines in protein, amino acids and as many as six minerals.On top of this news, we recently found out that multivitamins that could help supplement this decline may be more placebo than miracle pill. So what are we to do?According to the USDA, some studies have shown that organically-grown produce contains slightly higher levels of trace minerals, vitamin C, and antioxidant phytonutrients than conventionally grown crops.It's easy to say, "Buy organic." But in these tough financial times, not everyone can afford what I consider to be a luxury. The Environmental Working Group has a handy produce list that's broken up into the "Dirty Dozen" and the "Cleanest 12," which can help decipher which organic fruits and veggies you should try to buy when you can and which you don't need to bother with.


Advocates brief Congress on food program From PE.com

Rodney Taylor traveled thousands of miles this week so that the fruits and veggies headed to school cafeterias around the country wouldn't have to.Taylor, nutrition services director for the Riverside Unified School District, helped pioneer a national program that supports the use of produce from local farms on school menus. On Thursday, he and other advocates of the Farm to School Network gave a congressional briefing in Washington in hopes of finding federal funds to expand the program.


How Obama's proposal affects California SF Chronicle

The president's plan is modeled on California's cap-and-trade program, capping emission levels and allowing power plants and other emitters to buy and sell credits to release carbon dioxide. Obama is counting on revenue, estimated at $645.7 billion over a decade, to fund investments in renewable energy and other programs. Critics call it a tax on energy firms, which could pass the added costs on to consumers. House Minority Leader John Boehner, R-Ohio said, "Let's just be honest and call it a carbon tax that will increase taxes on all Americans who drive a car, who have a job, who turn on a light switch." 

Potato processor leaves growers in the lurch Capital Press

Lamb Weston, a division of Con-Agra Foods, has decided to grow a larger share of its own potatoes this year through joint ventures or custom-farming arrangements, according to industry officials in Idaho. The move away from traditional contracts with independent growers has angered many Idaho producers who thought they had acreage commitments for the crop they will plant this spring, said Dan Hargraves, executive director of the Southern Idaho Potato Cooperative.

Coupons are hot, clipping is not Market Watch

Tesco, ASDA cut prices as UK supermarkets battle for shoppers  Bloomberg
Tesco Plc and Wal-Mart Store Inc.'s Asda, the two biggest U.K. supermarket chains, plan to cut prices for a second time this year as they battle to prevent discount competitors making inroads into their market share.

Officials say Mexico dangerous for spring break
Eaminer


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Fresh Talk poll: Obama's shaky start

Can we take four years of this? Our Fresh Talk readers aren't so sure....


How do you think President Obama is doing so far?
I'm feeling good - Better than expected
8 (17%)
Wait and see - About as expected
11 (24%)
I'm worried - what have we done
26 (57%)


Votes so far: 45
Poll closed

Lucas: Obama's ag budget "completely out of touch"

From the inbox this morning, more signs that general ag interests aren't happy with Obama's budget proposal:

Ranking Member Frank Lucas opposes President Obama’s budget proposal that calls for eliminating direct payments to farmers with more than $500,000 in annual sales. The President’s $3.5 trillion budget plan also calls for the elimination of cotton storage payments, a reduction in subsidies for crop insurance, and a funding cut for the Market Access Program that promotes U.S. goods overseas. This proposal comes just months after Congress passed the 2008 Farm Bill, which has not been fully implemented.


“This proposal attacks family-run farms all across rural America. The people who provide us with the safest, most abundant food supply in the world are being asked to shoulder the burden of our economic crisis.

“We made a commitment to our producers when we passed the 2008 farm bill. Now, during an economic crisis, now when our producers are trying to make planning decisions, now when they’re trying to address higher input costs, we’re going to renege on our promise to them.

“Direct payments allow farmers to show bankers and Farm Credit that they have the income to repay their loans. And, direct payments provide producers with the flexibility to respond to market signals when choosing crops.

“At a time when the USDA recently reported that U.S. net farm income is down 20% from last year, I find it hard to believe that this is the time the administration has chosen to take $10 billion out of the only stable form of support our producers can count on in a difficult economy. This proposal is ill-timed, ill-conceived, and completely out of touch with the realities of production agriculture,” said Ranking Member Frank Lucas.