USDA Fruit OUtlook on strawberries

http://www.ers.usda.gov/Publications/FTS/2010/Mar03/FTS341.pdf
Back in January, NASS released this year’s strawberry area forecast for California,Florida, and Oregon—the top three strawberry-producing States in the country.Total strawberry area for 2010 was forecast to decline by 1,500 acres in Californiaand by 100 acres in Oregon. Production area in Florida, on the other hand, wasforecast to increase by 100 acres. Mostly influenced by fewer acres in California,combined harvested area for the three States is forecast to be down by 1,300 acresthis year, totaling 48,200 acres. Both California and Florida were forecast toharvest this season’s entire planted area while 300 acres in Oregon will not beharvested. With the forecast decline in harvested acreage and based on 3-yearaverage yields per acre, ERS projects a potential drop in U.S. strawberry productionof 6 to 7 percent from a year ago. Additional weather problems that may ariseduring the remaining growing and harvesting period could further reduce theprojected production for this year. On the flip side, the possibility of significantincreases in yields, should excellent weather conditions prevail this spring andsummer, could bring about moderation to the currently projected productiondecline for 2010.California remains the dominant strawberry-producing State in the country,representing over 80 percent of total harvested area and close to 90 percent of totalvolume produced. Strawberry area in California has expanded over the last 10years (declining only in 2001, 2007, and likely in 2010) in response to increasingconsumer demand and higher grower prices, especially in the fresh fruit side of themarket. U.S. strawberry production for fresh use increased an average 8 percentannually year-after-year since 2002, except in 2008, at the same time that freshstrawberry imports into the country also continued to climb (table 14). Thepresence of imports in this market is year round, but most of the shipments coincidewith the domestic shipping season. Hence, the recent growth in imports, averaging16 percent annually in the past 5 years, signals continued strong demand to fill infor supply needs in the domestic market, especially with robust exports taking uparound 12 percent of the fresh-market crop. U.S. fresh strawberry exports set newrecord-highs each year since 2005, reaching 272 million pounds in 2009. Canadareceived 85 percent of the total export volume in 2009 and exports to the countryincreased by 9 percent. Though exports fell significantly to Mexico and the UnitedKingdom, both major markets for the industry, exports were strong to East Asia,most particularly to Japan, Hong Kong, and Taiwan, and to the Middle East.Strawberries rank as the fifth most popular fresh-market fruit in the United States,following bananas, apples, oranges, and grapes, and they top the list for berries.Domestic fresh strawberry demand has trended upwards with average annualconsumption estimated at 6.0 pounds per person from 2005-09, almost double theaverage during the early 1990s. Per capita consumption rose consecutively over thelast 8 years, reaching an estimated 7 pounds per person for the very first time in2009. The frozen strawberry market serves more as a residual market forstrawberries, given the higher returns in the fresh market. Demand for frozen
strawberries has remained fairly steady over the past decade, with annualconsumption averaging between 1 and 2 pounds per person.In California, there are five major strawberry growing districts—OrangeCounty/San Diego, Oxnard, and Santa Maria in the south and Watsonville/Salinasand San Joaquin in the north. There are also two strawberry planting seasons inCalifornia. Acreage planted in the fall produces for the winter, spring, and summerstrawberry market, and makes up around 90 percent of California’s total strawberryarea. Fall supplies come from plantings done during the summer. The smallerstrawberry area forecast for California in 2010 stems from the fewer acres plantedlast fall in almost all of the State’s strawberry-growing districts, except in Oxnard,which is the second-largest producing district in the State. According to theCalifornia Strawberry 2010 Acreage Survey released by the California StrawberryCommission, strawberry acreage planted in the fall decreased by 6 percent from theprevious year while acreage for this summer is projected to increase almost 17percent from last summer. Oxnard and Santa Maria growing districts will accountfor all of the acreage this summer.Strawberry varieties developed by the University of California continue to representa majority of California’s strawberry area. However, proprietary varieties arecapturing a growing share of the State’s strawberry acreage, with expandingpresence in Oxnard, Watsonville-Salinas, and Santa Maria districts (fig. 4). Overthe past 10 years, acreage planted to proprietary varieties rose from an average of30 percent from 2001-03 to around 39 percent from 2007-09.
The acreage survey indicated acreage planted to UC varieties is projected to declineby 10 percent from a year ago for a total of 22,464 acres while acreage planted toproprietary varieties is projected to increase 5 percent to 14,479 acres, representing39 percent of the State’s total acreage. Among UC developed strawberry varieties,Albion continues to be the most predominantly planted, with more than half of totalacreage (excluding those planted with proprietary varieties). Other prominent UCvarieties include Ventana and Camino Real, varieties that became available for thefirst time in 2002. Declines in acreage are expected for these three major UCvarieties in 2010. Acreage growth is expected for the San Andreas variety, a morerecent UC variety that has similar production patterns to Albion but exhibits moresuperior qualities, planted primarily in the Oxnard district but also has acreage inSanta Maria, Watsonville/Salinas, and Orange and San Diego County growingdistricts. Very limited acreage was first reported for this variety in 2008,representing only a tiny fraction of the State’s total strawberry area. It is a very newvariety in that licensing and transfer outside of California only started in January2010. Acreage planted to the San Andreas variety in 2009 rose sharply, capturing 3percent of total acreage and for 2010; this share is expected to increase to 7 percent.

Wal Mart Reportedly Targets Asia Growth

http://www.thestreet.com/story/10712699/1/wal-mart-reportedly-targets-asia-growth.html?cm_ven=GOOGLEFI

Wal-Mart Reportedly Targets Asia Growth
BENTONVILLE, Ark. (TheStreet) -- Wal-Mart(WMT), the world's largest retailer, is eyeing a launch of its e-commerce operations in China and Japan, as it looks to drive sales by expanding its online presence into new global markets, the Financial Times reports.
A Wal-Mart job advertisement for a "product localization manager" for Japan and China lists responsibilities that cover preparing for the launch of an e-commerce business, the newspaper reports.
Eduardo Castro-Wright, Wal-Mart's vice chairman, said in January that the new business unit would weigh expansion "both in developed markets where we currently have stores and an online presence, and in markets where we don't."
Wal-Mart's latest move comes as other U.S. retailers are also using the Internet to expand their international reach. Gap(GPS) recently said it would also launch an online service in China later this year, the Financial Times notes.

Lincoln, Chambliss: USDA should revisit crop insurance changes

Lincoln, Chambliss Continue to Urge USDA to Revisit Crop Insurance Changes

Washington – U.S. Senate Agriculture, Nutrition and Forestry Committee Chairman Blanche Lincoln, D-Ark., and Ranking Member Saxby Chambliss, R-Ga., along with 28 U.willingness to reconsider its previous proposals as the Standard Reinsurance Agreement (SRAS. Senators, today expressed appreciation for the Risk Management Agency’s (RMA) ) renegotiation proceeds.

Despite a modest reduction in the size of the proposed cuts between the first and second drafts, the Senators expressed their concerns with RMA’s proposals that may undermine the crop insurance program, reduce the quality of service and availability of the program, and harm rural America through job loss. The Senators also noted concern with RMA’s approach of proposing significant cuts to the program prior to the completion of a study of program delivery costs.

Text of the letter is below.

Mr. William Murphy
Administrator, Risk Management Agency
U.S. Department of Agriculture
South Agriculture Building, Room 6092-S
1400 Independence Ave, SW
Washington, DC 20250

Dear Mr. Murphy:

As the Standard Reinsurance Agreement (SRA) renegotiation proceeds, we write to express our appreciation for the Risk Management Agency’s (RMA) willingness to reconsider its previous proposals. We strongly encourage a thorough review of comments on proposals contained in the second draft from the crop insurance industry and other interested parties to ensure that the federal crop insurance program remains a viable risk management tool for producers. The program has made significant gains over the last decade in terms of acreage insured, the range of products provided, program integrity, and service, gains which are in large part attributable to the work of the private sector companies and their local agents. The new SRA should build on these gains rather than incorporate provisions that may compromise this risk management tool, which is a critical part of the farm safety net.

We remain concerned about the magnitude of the nearly $7 billion in proposed cuts over the next ten years to the program reflected in the second draft of the SRA. By comparison, the 2005 SRA was estimated to save $410 million over ten years and the 2008 farm bill included savings of $5.6 billion over ten years. While we believe there may be some efficiencies to be identified through the SRA renegotiation process, we are concerned that the level of program cuts in the second draft will seriously—and negatively—affect several insurance companies’ ability to continue to offer much-needed risk management products in many areas of the country.

In April 2009, the U.S. Government Accountability Office recommended that RMA conduct a study of the costs associated with selling and servicing crop insurance policies, and we understand that RMA has recently committed to initiate such a study. Given the significant changes proposed to determine administrative and operating expense (A&O) reimbursements and underwriting gains or losses, we find it difficult to understand the justification for these proposals when empirical data on actual delivery costs is lacking.

It is important that the SRA provide fair and adequate compensation for program delivery so that farmers and ranchers continue to have access to the program. This objective brings into question the new proposal in the second draft to cap commissions paid to crop insurance agents, who are a crucial component of the delivery system. We remain concerned about proposals that may undermine the program, reduce the quality of service and availability of the program, and harm rural America through job loss.

Thank you for your work in managing the federal crop insurance program and please let us know how we or our Agriculture Committee staff members, Stephanie Mercier and Christy Seyfert, can be of assistance.

Sincerely,

Blanche Lincoln
Saxby Chambliss
Max Baucus
Kit Bond
Sam Brownback
Richard Burr
Roland Burris
Thad Cochran
Susan Collins
Kent Conrad
John Cornyn
Mike Crapo
Byron Dorgan
Lindsey Graham
Chuck Grassley
Kay Bailey Hutchinson
James Inhofe
Daniel Inouye
Tim Johnson
Amy Klobuchar
Mary Landrieu
Patrick Leahy
Ben Nelson
Mark Pryor
James Risch
Pat Roberts
Arlen Specter
John Thune
David Vitter
Roger Wicker

Eating farther down the food chain

Eating farther down the food chain
Friday, March 26, 2010
McCook Daily Gazette
Good luck, Jamie.

British reality chef Jamie Oliver stars in his new "Food Revolution" show on ABC Friday nights, aiming to change the way America eats.

Like we said, good luck.

We admire his effort, but we also have sympathy for the jaded lunch ladies in Huntington, W. Va. -- once called the "unhealthiest" city in America -- who watched him struggle to prepare acres of fresh food on budget only to see the vast majority of it dumped into the garbage after the lunch hour.

Like so many other efforts at social reform, Oliver's ambitious project attempts to use schools to achieve its goals. In reality, the American diet is defective from BPA-contaminated baby bottles to the trans-fats in the doughnuts retirees enjoy with their artificially-sweetened morning coffee. School lunches are an easy target, but they're far from alone when it comes to providing heavily processed food.

Institutional dietitians know how hard it is to meet federal guidelines while coming on budget for both food and the labor it takes to prepare it.

Add to that the struggle to provide something diners will enjoy, and you see the problem.

But there's no doubt the American diet is too high in fat, sugar, salt and processed food, as evidenced by the number of us who are overweight and who suffer from diet-related illnesses like cancer, diabetes, heart disease and stroke.

All of us would do better to eat farther down the food chain, dining on fresh fruits and vegetables and home-cooked meals from raw ingredients. One simple yardstick is to look at your plate: half of it should be covered with vegetables, a fourth of it bread or pasta, and a fourth of it meat.

First lady Michelle Obama's emphasis on healthy eating is something we can all get behind, including her planting of a vegetable garden on the South Lawn and her "Let's Move" campaign aimed at school children.

March is a good time to think about planting a garden of your own, providing a chance to introduce fresh produce into your menu at a bargain price.

If Jamie Oliver, Michelle Obama and others like them are successful, perhaps it won't be impossible to persuade the next generation of school children to choose health fresh fruits and vegetables instead of the salty, fatty, fare they now prefer.

Farmers Sell Crop 'Shares' for Spring Harvest - Cornell

Farmers Sell Crop 'Shares' for Spring Harvest - Cornell


Farmers and Ithaca community members talked business at farmers’ booths last Sunday at the Community-Supported Agriculture Fair at the Boynton Middle School Cafeteria.

The event, which was organized by the Cornell Cooperative Extension of Tompkins County, allowed community members to purchase shares in the crop yields that farmers will produce in the upcoming spring growing season.

Most plans allow community members to pay a certain amount up front and then receive weekly deliveries of vegetables that they can pick up at their local farmer's market. Other farmers offered locals discounts on future produce, depending on the size of their down payment. The bigger the payment, the larger the discounts later on. Some farm owners even pitched the chance to come to their farm and pick a certain amount of berries each week –– called the “U-Pick” plan –– after a lump-sum payment.

Plans like these are part of the community-supported agriculture initiative, which is a marketing strategy that depends upon the personal relationship between the farmer and the consumer. Consumers buy shares in the farm, and farmers deliver those shares. The farmer then has a guaranteed market for produce, and the consumer obtains fresh, local goods throughout the growing season and, usually, the opportunity to visit the farm.

“The CSA fair is mainly to give the public a chance to interface with all of the CSA [based farms] that we have in the community –– to talk to the farmers and find out which CSA fits their needs the best,” Monika Roth, the Agriculture Program leader for the CCE said.

“We’ve done this for about five years now. Each year it helps farmers recruit some new folks that may not have known about them. Every year we have a few new CSAs too.”

People milled around from booth to booth, sampling apples from the Fruit Bowl and asking farmers for details about their specific programs. The fourteen CSAs at the fair varied widely in the programs and produce that they offered, but all shared a common commitment to sustainable farming practices and and the production of the highest quality fruits and vegetables.

“Typical fair attendees are folks who know, or are pretty sure, they want to join a CSA farm and want to learn about as many as possible before making their decision,” stated Debbie Teeter of the CCE in an e-mail.

Katie Creeger from Kestrel Perch Farms is both a CSA member and a CSA operator. She gets her vegetables from a West Haven Farm and grows berries on her “U-Pick” CSA.

“I’d been a vegetable CSA member for years. You get to know who’s growing your food; you can quiz them about their practices. You know it’s fresh, you know it’s local. If I’m growing berries for 200 people I want someone else to grow my vegetables,” Creeger said.

Creeger also said that she believes in the division of labor, as it is very difficult to grow both fruits and vegetables. This was her third year at the CSA fair. She is trying to increase membership in her CSA to 200 people from 180 current members.

“I think it went well –– it’s a very high-yield crowd, meaning a high percentage of the attendees wind up joining a CSA. Also, we had a really nice turnout from the farms, which lets consumers talk to a lot of farmers in one place,” Teeter stated.

It was Gordon Gallup of Silver Queen Farm’s first time at the CSA fair. He has an established U-Pick farm, and had decided to offer the discount approach to consumers at the fair. He started using the community-supported agriculture approach because he was losing customers to other CSAs.

The personal level of the CSA model also appealed to Gallup.

“I think the family level is good for both the farmer and the consumer. For the farmer, on a family scale you can use your own labor. For the consumer, it’s an ideal situation for young families with kids so that they [the kids] can understand that there’s people out there growing food for them,” Gallup said.

“In the summer when you’re standing in a field that’s three football fields of strawberries it’s just … amazing.”

Roth also noted that the Cornell Cooperative Extension has multiple CSA-based programs.

“We have a program called Healthy Food for All, which subsidizes the cost of a CSA for food-stamp eligible residents in Tompkins County. We have about 7 CSAs who participate in that program … We coordinate with local social service agencies to get the sign-ups, the low-cost share,” Roth said.

“We had enough for about 120 households, so there were over 300 actual individuals who were getting CSA subsidized shares and weekly produce throughout the whole season.”

In terms of the success of the program, Roth said that “results and changes in diet have been really huge with most people who actively get 8-10 new vegetables into their diet.”

She added that the subsidized shares program “increases vegetable intake in the summer by leaps and bounds" and that their "main goal is to improve nutrition.”