Payback is heck and other top headlines

As you know, fruits and vegetables are among the items that are vulnerable to payback in its trucking dispute with Mexico.  Here is the link to an AP story that lists some of the goods targeted by Mexico in its cross-border trucking dispute with the U.S. From the story, a partial list of items::

 

Christmas trees, onions, pears, apricots, cherries, strawberries, dried fruit mixes, potatoes, peas, almonds, fruit and vegetable juices, prepared soups, wine, pet foods, shampoo, hairspray, aftershave, deodorant, plastic kitchenware, printer paper, toilet paper, refrigerators, coffee makers, dishwashers, washing machines, sunglasses, ball point pens, marking pens, pencils and yarn.

More coverage on the issue from the Christian Science Monitor.

In a statement released late Monday, Mexican Commerce Minister Gerardo Ruiz Mateos said the products – agricultural and industrial goods – come from 40 different US states and their total commercial value in 2007 was $2.4 billion. The products were not further identified in the statement.The tariffs are allowed under NAFTA, since the US has not honored its requirement under the treaty to allow Mexican trucks to operate on US highways."In moments of economic crisis, when we should avoid protectionism at all costs, the US decision goes the other way and sends a negative signal to Mexico and the rest of the world," Mr. Ruiz said in the statement.A $410 billion spending bill approved by US lawmakers and signed by President Obama last week explicitly withdraws funding for a pilot program that gave some Mexican trucking companies the right to ship goods beyond the border zone and to their final US market (click here for the Monitor's story on the move). Some US companies were also allowed to do the same in the opposite direction.

 

More headlines snatched from the Web:

School's indifference to fresh fruit hard to swallow Tennessean

There are 97 Metro schools eligible for federal grants with few strings attached — money to buy fresh fruits and vegetables to introduce some of Nashville's poorest children to healthy foods they've never tasted.Only three Nashville schools applied, and that is difficult to understand. At a time when Metro school officials are scrambling to cut their budget, it seems lazy and indifferent not to go after up to $50 in good-for-you fresh food for each child.Tennessee schools are eligible to get about $1 million for this program from the 2008 farm bill. But you've got to ask.Schools have one more chance. The program has reopened enrollment for one month. Apply, for goodness' sake! It's a simple, effective effort to help little ones learn to like things they may not be seeing in their cash-strapped homes: bananas, grapes, oranges, kiwi and fresh veggies."These are the schools where there are a lot of kids who are not going to see fresh fruits and vegetables in their neighborhoods, due to a lack of access," said Cassi Johnson, director of Food Security Partners of Middle Tennessee.

More matters when it is the good stuff Mail Tribune

When it comes to maintaining and improving health, "portion control" is a hot catch-phrase. The food police tell us to carefully watch serving size and control snacking impulses. I hear their voices every time I get a yearning for that second helping of pasta or a between-meal cookie.When it comes to fruits and vegetables, that advice goes away completely. When it comes to items on the produce aisle, the recommendation — loud, clear and without reservation is: "More Matters."In the past, we heard "five a day," which typically referred to two servings of fruits and three of vegetables. And then, later on, we were told to "eat five to nine," usually meaning a higher ratio of vegetables to fruits. And now — check it out. The folks at www.morematters.org say it more engagingly than I ever will. Or how about this way of saying it: www.eattheview.org.

Perplexing produce ABC News Karen Caplan gets some love

Although exotic fruits and vegetables still represent 1 percent of all produce sales, "some things once introduced as specialty items are now mainstream and not considered exotic anymore," said Karen Caplan, president of Freida's Specialty Produce in Los Alamitos, Calif. She explained that chili peppers were once new to the average American consumer. But these days most everyone is familiar with these hot peppers and as further indication of their widespread popularity, salsa has eclipsed ketchup as the country's most popular condiment. Mangoes and kiwis were also once viewed as unconventional and are now commonplace in stores.

Playing with food - helping kids love healthy eating Gaston Gazette

Before you give up on those peas and carrots, keep in mind it may take up to 10 times of trying a food before your child will decide he likes it. And if he suddenly decides he doesn't like something he did previously or only wants to eat waffles, that's OK too.

Aussie growers upset with NZ free trade deal Foodweek online

 

 

U.S. Chamber: Card check could contradict principles of international labor law

From the Chamber of Commerce this afternoon:

The U.S. Chamber of Commerce and the United States Council for International Business (USCIB) sent a letter to Congress today outlining how provisions of the Employee Free Choice Act (EFCA)—also known as card check legislation—contradict the principles of international labor law as defined by the International Labor Organization (ILO).

“Not only will card check legislation hamper economic growth and recovery,” said Randel Johnson, vice president of Labor, Immigration, and Employee Benefits at the U.S. Chamber. “The secret ballot and arbitration provisions included in the bill are in violation of the principles of international labor law.”

The U.S. Chamber and USCIB highlighted two provisions in the card check legislation that would modify the National Labor Relations Act if the legislation were to pass Congress. They include the elimination of the secret ballot in union elections and imposition of a compulsory arbitration scheme to set the terms of initial collective bargaining agreements. The Chamber believes these provisions are inconsistent with the principles of international labor law as set forth by the ILO and the 1998 ILO Declaration on Fundamental Principles and Rights at Work.

The ILO, which has examined labor laws throughout the world, considers the secret ballot election to be the preferred means for workers to select a union. The ILO prefers the secret ballot election because the risk of reprisal is significantly diminished where workers can express their sentiments in the secrecy of the voting booth. As far as requiring a compulsory arbitration scheme, the ILO has discouraged this practice because it interferes with voluntary collective bargaining and freedom of association. These arguments are elaborated on in more detail in a law review article by Stefan Jan Marculewicz that is attached to the letter.

“We ask Congress to seriously consider the ramifications of passing this legislation,” continued Johnson. “It is important that Congress preserve the cornerstones of American democracy, which includes the ability of every worker to vote in private and for employers and employees to reach a bargaining agreement without federally appointed arbitrators.”

The letter and article can be viewed at: http://www.uschamber.com/issues/letters/2009/090318_efca.htmThe U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

Consumer Food Prices - February

Bucking overall deflation, the index for fruits and vegetables climbs in February. From the Consumer Price Index report this morning:


The food and beverages index declined 0.1 percent in February after rising 0.1 percent in January. The food at home index, which declined 0.1 percent in January, fell 0.4 percent in February. Within food at home, the dairy and related products index fell 2.4 percent in February, with the milk index declining 5.7 percent. The milk index has declined 10.0 percent over the past year. The fruits and vegetables index was the only major grocery store food group to post an increase, rising 0.4 percent in February after declining in each of the past five months. The other four groups posted modest declines, from 0.1 percent for the meats, poultry, fish and eggs index to 0.5 percent for the cereals and bakery products index. Over the last year the food at home index has risen 4.8 percent. Among the major grocery store food groups, the cereals and bakery products index had the largest increase over the past year at 8.9 percent, while dairy and related products was the only index to decline, falling 1.7 percent. Among the other indexes within the food and beverages major group, the food away from home index rose 0.3 percent in February, while the index for alcoholic beverages declined 0.2 percent, the first decline since December 2005.

Chat - Tony Freytag

The Packer's National Editor Tom Karst on March 9 chatted with Tony Freytag, marketing director of sliced apple marketer Crunch Pak, Cashmere, Wash.

4:24 p.m. Tom Karst: Hey Tony

4:25 p.m. Tony Freytag: I am here

4:26 p.m. Tom: Great. Thanks for taking time for another Fresh Talk chat. I might change up the order of my questions today. I want to ask what are some things you are working on of late at Crunch Pak? What's a typical week like for you?

4:28 p.m. Tony: Usually Hectic. Crunch Pak is pretty lean in structure so as a manager I am involved in numerous areas. Especially product development and design. Those issues along with the management of brokers around the country and regional managers keeps me on the phone a great deal. Travel is sporadic, I am coming up on three weeks of constant travel so will be living out of a suitcase.

4:29 p.m. Tom: When you visit your customers, what are the typical conversations like? What are you most excited to share concerning developments there? What do your customers tell you about the category?

4:32 p.m. Tony: Conversations are usually a review of our mutual business. This is from the aspect of how are they doing in sales and movement and how are they doing in comparison to their competition in the market. We have tools that help us look at things in perspective. Our retail customers are great feedback, as is their customers. With a branded product, every package we produce has our name and website on it. This gives great access to us, and ultimately gives us the feedback from a consumer, the ultimate customer, as to how we are doing. The numbers we share with the retailers are only part of the picture, the rest comes from consumers. That is invaluable information.4:34 p.m. On the new front, we see organic continuing to move up in the market. Right now there are some constraints via the economy, but if history is any gauge, there will be a time we look back on this and hopefully we have learned. To answer your question, you will see continued emphasis from us on organics and the snacking categories.

Tom: Regarding consumer feedback, what happens when consumers send you an email - do you write back, etc?

4:38 p.m. Tony: Our policy is to respond the same day to feedback; hopefully in just a few minutes or hours. We want to know all the news. If it is good, that is great and we like to know where they bought the product, how they are using it; a snack, in a lunch, party tray, etc. If the review is not positive, we want to know even more; where did they buy it, when did they buy it, what was the appearance, etc? We ask for the coding on the back of the package as this tells us so much; where the apples came from, when they were packed, what line they were packed on, even down to the staff that packed it. It helps us be better. Finally we want to know if they would like coupons to utilize for the future and thankfully, most do! We find the consumers like our product very much. The critique is generally positive as they want to buy again and again. Bottom line, if the quality is amiss, we want to know about it. Right away!

4:39 p.m. Tom: Sounds like everything is in place for the information loop to be complete, which I think is important.

Tony: We are always asking what someone would like to see from us? A new package type, a new convenience, a new fruit mix.

4:40 p.m. The information loop is critical. The moment we lose that connection, we will be out of business.The moment we lose site that it is all about the product, then we are gone!4:41 p.m. Tom: Take us back to the early days of the fresh cut apple business. When did you first become involved with the apple business, and subsequently fresh cut apples...?

4:43 PM Tony: I became involved in the "produce" business in the early 90s. While still in Texas I had a client that was in the pecan business. 5000 acres of pecan trees that he wanted to take from a commodity driven business to some type of value added. We developed retail packaging, retail stores, mail order and an early website. That was my first adventure in "value added"

.4:45 p.m. As for fresh cut or sliced, that was in the late 90s. The first research was pears, then with apples. We continue to research pears but the apple business has kept us very busy. I experimented with the Nature Seal product in my kitchen. My kids loved it. There were times when I had samples in my extra refrigerator that would disappear. I found out my son would come over and help himself. He loved them. My daughter was active in ice skating and would pack baggies of the sliced apples for a quick snack. It sort of went from there.4:46 p.m. Sliced apples are really not very old as a category. As early as 2003, you could hardly find sales data on sliced apples. Today that is quite different. I believe over 70% of all retail grocery stores have sliced apples today

.4:48 p.m. Tom: Wow...very interesting beginnings and of course the category is big and growing still. I know pears have wanted in on the fresh cut deal for quite some time... do you think it will happen soon? What's your quick take on the USDA purchases of sliced apples for schools?

4:51 p.m. Tony: Two very good friends in the business are Kevin Moffitt and Chris Zanobini from California. When we all get together, they are always asking when pears will be on the menu. Crunch Pak is constantly researching the idea and trying to identify the right eating qualities the consumer wants. We would like to do pears. One challenge has been our growth. It may sound strange, but our focus is on apples and as we do more, we can't lose sight of our quality. Pears also take different equipment and we have generally been short on space. it will happen!

4:55 p.m. Tony: As for USDA. The bids will go in over the next week (through March 17). We are excited about this as it is another opportunity for the industry to get sliced apples into the hands of more people. Kids in particular. If a child eats sliced apples at school and then comes home to tell their parents, I believe most parents will be happy to buy those same snacks at their local grocery store. And as many, we are all concerned about obesity. If more fruit and vegetables are consumed, that problem will diminish. That is a benefit that is widespread. We also see the program as helping support our retail program. With over 75% of our business at retail, that is very important

.4:57 p.m. Tom: Yes, it seems sliced apple will have a lot of appeal in the schools, and the ability to brand market could have some follow through demand for you and others. Well, I know I've kept you a while. so to wrap up, I'd like to ask you what you think your business will be like in five years?

5:00 p.m. Tony: In a nutshell....the business will be different than what it is today. A broader mix of price-points, a wider array of snacks. We added apples and grapes to our mix over the last 6 months and it has been a good addition. We will continue to mix it up. All that said, our business will be apples. That is what we do, and we believe we do that very well. We won't lose sight of that!

5:01 p.m. I believe our business of the future will have to be even more in-tuned with the consumer. The better we are at that, the better we will be. Hope this answers a few of the questions. Thank you for having me.

Tom: Good perspectives... I really enjoyed this. Thanks for taking the time today

.5:02 p.m. Tony: It was my pleasure.

United Fresh: Fresh Facts on retail

From the inbox, report of the quarterly Fresh Facts on Retail from United:



United Fresh is pleased to release its quarterly research report, Fresh Facts on Retail, for the fourth quarter of 2008. �The report recaps retail sales trends for the top 10 fruits and vegetables, value-added and convenience produce items, emerging market opportunities such as fresh meals and salads sold in delis, and organic produce.� In addition, the year-end report includes analysis of the impact current economic conditions may be having on the produce market.
United Fresh members can download a copy of this report here for free.
Fresh Facts on Retail is sponsored by Del Monte Fresh Produce and produced in partnership with the Perishables Group which tracks and provides analysis of retails sales data.�
Key findings in this edition include:
In Q4 2008, produce department weekly sales per store were up 2.3% over the previous year, but this was likely due in large part to retail prices 6.1% above the prior year.
Volume of produce movement was down 3.6% for Q4 compared with the previous year.
Among the top 10 fruits, only grapes, strawberries and avocados were up in volume year-over-year.
Among the top 10 vegetables, not a single commodity showed volume increases.
Value-added fruits showed a decline of 6.5% in dollars and 6.0% in volume.
Value-added vegetables showed a decline of 4.9% in dollars, but a larger decline of 10.1% in volume.
Perhaps surprisingly, organic fruit and vegetables still showed slight increases in volume, with fruit up 5.6% and vegetables up 0.3%.
Looking across 2008, peppers, berries and bananas were the only categories to post positive growth every month of the year.
"The economy is clearly having an impact on these Q4 volume declines," said United Fresh Senior Vice President for Member Services Victoria Backer.� "But this won't be the end of the story, as produce companies and retailers are adapting to ways to move more produce even in these difficult times," she said.� "We're pleased that senior executives of the Perishables Group will be discussing these findings and additional research on ways to promote produce in the current economy during our upcoming United Fresh 2009 convention in Las Vegas."
Fresh Facts on Retail can be downloaded here free of charge to all United Fresh members, and for $50 to non-members. For questions about specific data contained in the report, please contact Kelli Beckel at the Perishables Group, at 773-929-7013.

United's traceability demo center

Blogging from Nebraska, this slid across the inbox yesterday....


The United Fresh Produce Association announced today that a new Produce Traceability Demo Center will be added as a featured attraction on the United Fresh 2009 convention show floor, April 21-24, in Las Vegas.

This new destination center is designed to answer industry members’ questions about the industrywide Produce Traceability Initiative (PTI), including details about how to get started, steps each company needs to take to meet the PTI’s milestones, and resources available to help individual companies incorporate whole-chain traceability standards.

The center will feature an 8,000 sq.ft. display area including exhibits, private meeting rooms, and a roundtable discussion area with 100% focus on produce traceability. The Traceability Center is where growers, packer-shippers, wholesalers, foodservice and retailers will go to meet professionals and get answers to their most pressing questions on traceability. From learning how to secure their company prefix to meeting PTI milestones ahead, attendees will find solutions to their traceability challenges in the Produce Traceability Demo Center:

Staff experts from GS1, the first step in GTIN traceability and case coding. Companies can even work with GS1 experts onsite to sign up for their company prefix.
Table-top displays featuring vendors with hardware and software traceability solutions.
Daily schedule of informal roundtable discussions with produce and retail companies sharing their experience with traceability.
Private meeting rooms to visit with potential vendors to talk about your unique business needs.

The center is hosted by the United Fresh Supply Chain Logistics and Technology Council as a service to industry members, and will be staffed by Dan Vaché, Vice President of Supply Chain Management, to help industry members throughout the show.

“With clear milestones and timelines established for total supply chain traceability by 2012, thousands of companies across the supply chain are now turning their attention to the real practical questions - where do I start and what are the next steps,” said Vache. “We’re excited to be working with so many sponsors and other companies to put together a real destination center on the trade show floor to answer these questions.”

The following companies are presently sponsoring displays in the Traceability Demo Center -- FoodLogiQ, Ramsay Highlander, RedLine, YottaMark, TraceGains, KPG Solutions, Inc., and GS1 US.

The following individuals are currently scheduled to share their experience with traceability during discussion roundtables -- Reggie Griffin, Corporate Vice President, Produce& Floral Merchandising and Procurement, The Kroger Co.; Larry Nottingham, Manager of Information Systems & Technology, Pandol Brothers; Jim Corby, Vice President Produce, Food Lion LLC; Steve Grinstead, President/CEO, PRO*ACT.

For more information about the Traceability Demo Center, or to have your company included in the center, please contact Dan Vaché at 425-629-6271