California balking at Chilean grape systems approach

Worried over pest concerns, California grape interests are holding up a stop sign to the USDA proposal that would allow a "systems approach" to Chilean grape imports. This is significant because the proposal is viewed as an important side issue in the possible deal between Chile and the U.S to move the effective date of California desert grape marketing order (triggering mandatory import quality inspections) from April 20 to April 10.

Kathleen Nave of the California Table Grape Commission wrote in an Oct. 24 comment that they felt surprised by the proposed rule:

"As noted earlier, we are particularly concerned that,in spite of our very close relationship with APHIS and ongoing discussions about a host of pest and disease issues, we have only now learned about this matter - and then only through a Federal Register notice."

Here is the argument from Chilean interests, this penned by Andy Economou of Unifrutti...

The systems approach is a well-established and effective method for reducing phytosanitary risk with significant commercial validation on a variety of fruit and vegetable commodities. As noted in the proposed rule, its efficacy was proven in two pilot programs conducted by the Servicio Agricola y Ganadero, the national plant protection organization of Chile, with the cooperation of the USDNAPHIS, during the 200212003 and 2006/2007 growing seasons. The systems approach for products shipped from Chile is especially appropriate given Chile's natural defenses to phytosanitary infestation, nearly forty years of close cooperation with APHIS on managing phytosanitary risk and well-developed infrastructure that assures implementation of the risk management plan. The systems approach has already been adopted as an effective phytosanitary measure in the importation of tomatoes, clementines mandarins and tangerines from Chile. We also note that APHIS has proposed to use the same systems approach for sweet oranges and grape fruit from Chile. Please see Docket No. APHIS-2007-0 1 15.


TK: Economou also notes the systems approach would reduce the use of the ozone destroying fumigant methyl bromide on Chilean grapes. Nave and a whole host of California interests have proposed a 60 day extension to the comment period; the end of the comment period was Oct. 27 and no word yet about an extension. Could that mean this rule will happen without delay, despite California objections? Stay tuned.

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Chilean grapes could be shipped to the U.S. without methyl bromide fumigation under a proposal from the U.S. Department of Agriculture. Go here for the story:


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Wednesday headline roundup - Aug. 27

Headlines snatched from the Web and the Fresh Produce Industry Discussion Group this morning:


2 plead guilty in Hunts Point gambling ring - Big Apple From the post:

Two men with reputed ties to organized crime pleaded guilty on Tuesday to participating in an illegal gambling ring run out of a wholesale produce market at Hunts Point in the Bronx.

Systems approach for Chilean grape imports - Big Apple Pretty big news here in a FR proposed rule. From the post:

We are proposing to amend the fruits and vegetables regulations to allow fresh table grapes from Chile to be imported into the continental United States under a systems approach. Currently, as condition of entry, all table grapes from Chile must be fumigated with methyl bromide as a risk-mitigation measure for Brevipalpus chilensis. Under this proposal, we would allow a combination of risk-mitigation measures, or systems approach, to be employed in lieu of methyl bromide fumigation.

Hundreds of workers held in immigration raid NYT reports:

In another large-scale workplace immigration crackdown, federal officials raided a factory here on Monday, detaining at least 350 workers they said were in the country illegally

Cell phones seen as emerging payment device at grocery stores

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Supermarkets may be the next target market for near field communication phones, at least according to presentations during the recent IT Leadership Summit of the National Retail Federation.

One of the presenters, an executive for supermarket chain Cincinnati-based Kroger says NFC phones are a good fit for supermarkets because of their time-saving potential. “Nobody stands in a grocery line because it’s a pleasure. We are looking to shave more than seconds off that line,” he said. He was one of several panelists discussing “Mobility and Near-field Communication - The New Era of Ubiquitous Retailing.”

Chiquita signs deal for China venture From the story:

Under the agreement, which is subject to regulatory approval, Chiquita and Haitong will form Zhejiang Chiquita-Haitong Food Co. Ltd. The venture will operate a food-processing facility in Cixi, China, where it will produce packaged salads, fresh-cut fruits and vegetables and fresh chilled beverages, according to a news release.


Cafeteria trays disappear in bid to fight obesity

Grocers fight to hold on to customers

Survey says shoppers won't compromise on food quality The no-spin zone? Not exactly... a release from Whole Foods:

Whole Foods, the leading natural and organic foods supermarket, today announced results from a recent survey that found, despite rising food prices, nearly 80 percent of U.S. adults (79 percent) say they do not want to compromise on the quality of the food they buy and the majority (70 percent) are continuing to buy the same amount of natural and/or organic foods as they always have.

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Housing recession builds

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WIC to offer fresh fruits and vegetables

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Chile fresh deciduous semi-annual 2008

The great long term expansion in Chilean fruit production is over - for now.Here is the link to the USDA FAS report released today concerning Chile's deciduous fruit crops. From the report:

Total Chilean fruit exports are estimated to continue to grow in 2008. There are some important factors that will continue to affect economic returns mainly of grapes and in lower degree for apples and pears, like the exchange rate. In general, prices for exported fruit have not varied much in dollar terms, but during the last three years the Chilean peso has gone through a significant revaluation process. The exchange rate for the peso has fallen from 740 Chilean pesos to only 450 pesos to the dollar during the first quarter of this year. Another factor is the cost of labor which has been increasing in peso terms. A new law was approved reducing the weekly workweek from 48 hours to 45-hours; industry sources claim that the effective work time does not exceed 40 hours in a week. Productivity has fallen significantly. This is an important factor for the labor-intensive fruit industry in Chile. In the case of table grape production, labor represents 70 percent of total costs. Increasing energy costs is also a big concern for fruit producers. Consequently, industry sources have indicated that increases of new plantings and production increases in the coming years are not expected, at least for apples, table grapes and pears.

About grapes:


As a result of unfavorable weather conditions in most growing areas, total output in MY2008 (Jan-Dec 2008) is estimated to be slightly larger than last year but smaller than our previous estimates. Lower than normal temperatures in late spring and early summer affected the volume and quality of the production, the bunches were reportedly smaller and lighter for most varieties, but mainly for the Red Globe variety. The lack of temperatures also delayed the start of the harvesting season by almost a month which was reflected better prices obtained for the fruit by early in the season producers. For the coming season, production is forecast to be similar than this season as total output increases due to a larger harvested area could be offset by a drought which is affecting all agricultural areas in the country. Additionally, industry sources believe that total planted area could fall as many producers will not replant orchards that are coming to an end of the production period due to a significant fall in the economic returns which is affecting table grape production for the last two seasons.


On apples:


Good weather conditions in most growing areas for apples during the Chilean spring (Sept-
Oct 2007) had a positive effect on production volume . But some production areas were affected by frost and a lack of good temperatures late in the spring and early summer that reportedly affected the quality of the production. As a result our new production estimates for MY 2008 were slightly adjusted downward. Nevertheless, exports are expected to be expanding slightly larger than the previous year. For the coming Marketing Year (2009) we can expect total apple production to be similar than this last year as a possible production expansion, due to an expansion of the production area and/or some orchards which are in the incremental stage of production, could be offset by a drought which is affecting almost all agricultural production regions in the country.