Chat - David Mitchell

David Mitchell is senior writer for The Packer and has written dozens of stories about the salmonella outbreak investigation. I caught up with him briefly this afternoon....

me: David Mitchell...thanks for taking time for a Fresh Talk chat. You have been busy with salmonella stories for several months now - including today. I've counted 32 in the library (so far)!

4:00 PM david.edward.mitchell: I don't think that includes all the Web-only stories. There were some weeks at the height of this thing when we had double-digit updates per week. It's been crazy.

4:01 PM me: Yes, you have been keeping up amazingly well, and as you say with Web-first coverage. What can you tell us about the briefing today? Do you think it will give the industry "closure"?

4:04 PM david.edward.mitchell: The short version is that CDC said the outbreak is over because the number of cases being reported is down to what they would see under normal circumstances. FDA has lifted its consumer advisory for Mexican hot peppers. Neither agency is ready to say that tomatoes weren't an issue. I don't know about closure because there are still a lot of unanswered questions, but I think this will be a big relief to a lot of people. I think the best news for the industry is that the mainstream media likely will move on to something else. Coverage already had died down the past few weeks.

4:06 PM me: Yes, on the tomato question. I've noticed no matter how reporters have phrased questions, the CDC/FDA continue to say tomatoes had the "strong association" with the outbreak in the early investigation. While they do acknowledge the evidence is not as strong, I don't think the tomato folks will be satisfied.

4:07 PM david.edward.mitchell: No, the tomato industry wants some sort of admission that tomatoes were never to blame, but we might never know if that's really the case.

4:10 PM me: The FDA has some questions to answer, and it will be interesting to see how this plays out during the Bush Administration and into the next one. Any thoughts whether the industry will effectively be able to influence the produce safety legislation brewing in Congress?

4:11 PM Warning - I'm officially putting you in "pundit mode"

4:13 PM david.edward.mitchell: Good question. Your public policy trip should be interesting next month. The produce industry associations say they want regulations, marketing orders, etc. The question is whether Congress will put something in place that makes sense.

4:17 PM me: David, I appreciate your time on this, a deadline Thursday. What else have you got on your plate for the couple of months? Hopefully no more salmonella outbreak stories, I'll wager

4:18 PM david.edward.mitchell: I'll be on the road to Ohio soon for the Know Your Market section. Somebody else will have to do the inevitable outbreak follow-up. You perhaps?

4:19 PM me: If duty calls...Thanks again and we'll catch up again soon...

david.edward.mitchell: No problem. Thanks, Tom

House hearing - The panelists

A long hort subcommittee hearing today chaired by Rep. Cardoza today, one in which the industry made a number of strong points. Still, Acheson may have trumped everything else that was said with news of the farm in Mexico where the salmonella Saintpaul pathogen was found. David Mitchell developing for The Packer....

Headline writers run amok - Thai basil

Does the ever-widening net of the salmonella Saintpaul investigation now extend to Thai basil? Short answer: yes - at least the media is saying so, despite no backup at all from the FDA or CDC. The salmonella found on a shipment of Mexican-sourced Thai basil wasn't the same type as the tomato/pepper outbreak investigation, and officials at FDA have said it is not related to Saintpaul outbreak. However, that hasn't stopped headline writers from drawing the conclusion that Thai basil is also a "suspect" in the big outbreak. "Blame it on basil" if you will. It shows us again that no matter what the FDA/CDC says, there is likely to be several versions of it by the time it reaches the consumer. Here are some headlines today about Thai basil/salmonella from Google.:


Basil added to list of suspects

Salmonella? Blame it on basil, says FDA

The Packer's David Mitchell covered the story well: Basil recalled over salmonella concerns

Salmonella impact - June retail tomato sales

Developing...David Mitchell of The Packer to develop this story... figures below from The Perishables Group...

For the four weeks ending June 28, 2008, total tomato volume was down 17 percent from the same period a year ago, while dollar sales were down 5.4 percent to $136.3 million.

Raw red plum, red Roma and round red suffered the most, decreasing an average of 46.1 percent in volume and 36.2 percent in dollar sales; while other tomatoes increased 3.4 percent and 8 percent in volume and dollars, respectively.

Perishables Group Produce Data Facts:

ü The data represents retail census sales data of the total U.S. grocery store chains having more than $2 million sales annually.

ü Data represents approximately 62 percent ACV* and 15,000 stores nationwide.

ü Not included in the data sets: Wal-Mart, club stores, small independent chains and alternative format retailers such as Whole Foods and Wild Oats.

ü The data represents items sold from the produce department including UPC, PLU and system 2 coded items.

ü The tomato category volume is reported in pounds.

Litttle news but more communication

David Mitchell, the lead reporter for The Packer on the salmonella story, tells me that there is no FDA call again today. Here are a couple of industry communications, first from the Fresh Produce Association of the Americas and the second from United Fresh.


For Immediate Release Contact: Allison Moore
July 8, 2008 520-287-2707

FPAA Continues to Work with FDA on Salmonella Saintpaul Investigation

In early June our industry along with consumers in the United States learned from the U.S. Food and Drug Administration (FDA) that there was a possible link between certain types of tomatoes and an outbreak of Salmonella Saintpaul. Since that first announcement, the Fresh Produce Association of the Americas (FPAA) has devoted our resources to helping the FDA determine the source of contamination and to learn what may have gone wrong in the supply chain so that these events do not happen in the future.
While the FDA says that they continue their traceback of tomatoes to determine where in the supply chain that contamination may have occurred, the FDA says they are also increasing domestic and import samples of certain commodities commonly served with tomatoes. The FDA informed the industry that these items include serrano peppers, jalapeño pepper, and cilantro.
The industry saw the same increase in sampling for domestic and imported tomatoes at the onset of the FDA investigation in June. In addition to their traceback investigation, the increase in sampling is another tool the FDA is using to conduct a thorough investigation into the possible sources of contamination.
There were several inaccurate media reports over the weekend concerning the FDA’s decision to increase sampling of additional commodities served with tomatoes. All imported products, including those being sampled at an increased rate, are STILL CLEARED to enter the United States. The integrity of the shipments with sample results pending from the FDA is being maintained until those sample results are completed.
The day to day standard operating procedure for imports requires that information on every single imported produce shipment is submitted to the FDA. This is required by law. The FDA reviews the information of every single shipment before that shipment is cleared to enter U.S. commerce. During the initial review of this information, the FDA decides, based on their selection criteria, whether or not to sample a product.


From United Fresh last night.......


Dear United Fresh Members,
Over the past 24 hours we have received a number of questions from members regarding the FDA’s and CDC’s official advice to consumers and the industry regarding potential actions related to the Salmonella saintpaul outbreak. We have been talking with a number of you to answer these questions individually, but also recognize the need to provide a collective message for all of you that you can use with your customers and suppliers.
We also recognize that this entire outbreak investigation has been the most frustrating and costly food safety event ever for many of you. United Fresh Produce Association is committed to wholesale change in the way government manages future outbreak situations, and we have previously shared our communications with the senior level of the Bush Administration. We are now engaged extensively with FDA, CDC, Members of Congress, and other country governments in discussing these issues, to both drive immediate action now and long-term fundamental reform for the future. Once this outbreak is over and we finally determine its cause, we also are committed to working with Congress and the Administration on compensation for those who have been harmed by the flawed process of this outbreak investigation.
However, we also have to recognize that the illnesses caused by this strain of Salmonella saintpaul have not ended, and government health officials must continue to try aggressively to pinpoint the source. While there is tremendous speculation and growing evidence that tomatoes of any kind may not be the source, neither CDC nor FDA are willing to rule this out at this time. At the same time, these agencies are not clinging to what may have been a mistaken first conclusion, but are also examining the possibility that a different food source may be causing the ongoing illnesses. Many media reports have cited certain chile peppers and cilantro as commodities of interest, but a wide range of other food products is also being studied. That is a proper step.
For the fresh produce supply chain, it is critical to note that neither CDC nor FDA have provided any consumer cautions about any other produce items. It would be unwise for industry to begin following speculation about these commodities as reason for any change in the marketplace, when CDC and FDA will clearly announce their concerns if they rise to that level. We advise all industry members to continue to review the specific advice on the CDC and FDA websites in making all product decisions. That advice can be summarized as follows:
FDA has published an extensive list of production regions from which all tomatoes can be freely sourced. These include production regions in both the United States and Mexico, and those areas are identified on the FDA website here.
Consumers are advised to avoid any raw Roma, Plum and red round tomatoes from areas that are not on the “cleared list.” We know of no tomatoes from these regions that are now on the market, but supply chain partners should be sure of that in their own operations.
All cherry tomatoes, grape tomatoes, and tomatoes with the vine still attached have been officially cleared by FDA and can also be consumed freely.
Neither FDA nor CDC have issued any consumer or industry advisories with regard to any other produce or food item, including chile peppers, cilantro or other commodities. We have full confidence that if these agencies determine that there is a substantive risk associated with any other commodity, from any particular source, they will issue such information immediately and we will update you.
We hope this information is helpful in making your own business plans. If you have any additional questions, please contact me at aphilpott@unitedfresh.org or call me at 202-303-3400 ext. 425.

TK: United mentions the topic of compensation in their communication, and that issue must surely be a part of any Congressional deliberations.

CDC June 24 update - 652, 34 states, DC; April 10 to June 13 onset

The CDC update can be found here. From the CDC:

Since April, 652 persons infected with Salmonella Saintpaul with the same genetic fingerprint have been identified in 34 states and the District of Columbia. These were identified because clinical laboratories in all states send Salmonella strains from ill persons to their State public health laboratory for characterization. The increase in reported ill persons since the last update is not thought to be due to a large number of new infections. The number of reported ill persons increased mainly because some states improved surveillance for Salmonella in response to this outbreak and because laboratory identification of many previously submitted strains was completed. In particular, one new state, Nevada reported ill persons.


Other headlines found on the issue:

Which tomatoes are safe to eat and which are not?

Locally grown tomatoes are safe to eat, officials say

Tomato scare hurts farmers


TK: David Mitchell of The Packer tells me that no FDA briefing is scheduled today but one may be on tap for tomorrow. It is past time for FDA to pinpoint the problem; perhaps tomorrow is the day.

Chat - David Mitchell

David Mitchell is the lead reporter on the tomato/salmonella issue for The Packer. I had a brief keyboard "chat" with him this morning:

Sent at 9:30 AM on Tuesday

Tom: David, what can you tell us about the experience of covering this issue for a couple of weeks now? Has the mood of the industry shifted as the crisis has deepened?

Sent at 9:35 AM on Tuesday

david.edward.mitchell: I talked to two shippers in San Diego yesterday, and while they're worried about what is going to happen with romas from Mexico, markets are strong for cherry and grape tomatoes, which have been deemed safe by the FDA. A Florida-based shipper told me that customers are ready to take product from FDA-approved areas, but supplies are light in some of those states, like S.C., that are just getting started.

Tom: Is there any indication how long certain tomato varieties or types might be removed from the menus of foodservice operators?

Sent at 9:40 AM on Tuesday

david.edward.mitchell: No one has said that to me on the record. It seems like some of these places are overreacting. I saw one restaurant chain in Alaska pulled tomatoes.

Tom: And we are still waiting for FDA to announce the definitive results of their traceback - have they said why it is taking as long as it is? Do you think the tomato repacking process - and possible co-mingling of product from different orgins - may be one factor?

Sent at 9:44 AM on Tuesday

david.edward.mitchell: I've heard that theory about repacking, but I don't know. Part of the problem is that it can take up to three days for people to have symptoms, and then it takes time for public health officials to see a pattern. This started in mid-April, but we didn't even know there was a problem until late May. Public health officials obviously want to get it right before they point a finger at a specific grower-shipper or even a specific area. It looks like Florida and Mexico are the two biggest players who would have been shipping at the time of the outbreak that haven't been cleared. Think about how many growers, packers and handlers there are in that state and that country, not to mention importers of Mexican product in Texas and Arizona. There are a lot of people to talk to, and unfortunately a lot of those people had nothing to do with it but will end up being affected.

Tom: David - thanks for your time and we look forward to your continued coverage of the issue for The Packer.

david.edward.mitchell: OK, thanks.

The food fuel debate

I made some calls today about the food-fuel debate. I'll have some coverage in The Packer about bio fuels and their impact on food prices, and the tangential news related to the U.N. Food Summit in Rome. One economist I talked with today said there has been no study that he has seen that does a thorough job of providing a number - a measure of how production of corn-based ethanol impacts food prices - and then backing that number up with deconstructing the various economic factors. More on that later...

Hope to have a Fresh Talk keyboard chat tomorrow morning with David Mitchell of The Packer, who has been the lead writer on the tomato/salmonella coverage.

Also extended an invitation to Kathy Means and Amy Philpott to participate in Fresh Talk as guest bloggers. That offer also goes out to any other association executive/industry leaders out there who would like to add some reasoned perspective to the news of the day. Email me at tkarst@thepacker.com if you are interested.

Jay Martini - How to recoup losses?

Here is the the letter from Jay Martini to David Mitchell of The Packer - lead writer on the salmonella coverage - and copied to me. Jay said it was fine to publish on the blog, save one passage dealing with a rumor. Here is the letter, save that one paragraph:

8:00 AM, Sunday, June 8, 2008

David---

As a tomato broker for the last 28 years, I've seen a handful of food safety scares regarding produce come & go. But this instance hits home, and hits it hard. The difference with this one, other than it involves the commodity in which I make my living, is that the process this time smacks of politics, without any regard for the U.S. farmers or distributors with domestic tomatoes presently in the pipeline.

The headline of your online article below said that Mexican tomatoes were implicated in this outbreak. A more accurate headline should have been that any tomato-producing area not listed by the FDA (a ridiculous, self-serving list of areas that aren't even in season) is suspect. And that includes Florida, whose tomato shippers are left twisting in the wind at this point, along with all of us down the line with Florida product. David Gombas of the UFPA telling industry people 'not to read too much into the list' is an idiotic statement. Of course, everyone's looking at the list---it's our business!

Why doesn't the FDA state in their press release that no grower/shipper in Florida, to my knowledge, has to date been contacted by the FDA? (deleted passage)

The spokesperson for the New Mexico Department of Health has herself said that that time of year (beginning April 23), most if not all tomatoes in New Mexico are sourced from Mexico. If this is the case, why is the Florida tomato industry publicly being held hostage?

I was at a graduation party last night when I got a text message with the sickening news that the FDA had gone nationwide with their release, and also that Subway had had an emergency meeting, eventually deciding pull all tomatoes from their sandwiches.

If it is found, as I imagine it will, that Mexican tomatoes are the one and only source of this rare strain of salmonella, how do the shippers, distributors & handlers of Florida tomatoes recoup their losses? Multiple millions of dollars are being lost with every day that this farce continues.

Jay Martini
Sales
Art Kramer's Produce Buying Service, Inc.
Skokie, IL

Waiting for the FDA to pull the trigger

Earlier today, I received an email addressed to Packer reporter David Mitchell and copied to me from a tomato broker who expressed growing frustration with the inability of the FDA to completely clear Florida growing areas in their traceback investigation. I have asked for permission to post the letter on the blog and I will if I receive permission.

The basic frustration expressed by the broker is that Florida tomato growers are "twisting in the wind" when the preponderance of apparent evidence - as expressed by New Mexico health authorities, at least - seems to point to Mexico as the source of the salmonella tainted tomatoes. Yet some complications - perhaps co-mingling at a repacker - are thought to prevent the FDA from clearing Florida growing regions, he said.

With fast food chains beginning to act on the FDA now-nationwide consumer alerts, the pressure is on the agency to quickly identify not only the growing region but also the responsible farm and packing facility that shipped the tomatoes.

FDA's interest in cooperative relationships with growers is being sorely put to the test.

More questions - salmonella outbreak

When will FDA exclude growing regions from the tomato/salmonella foodborne illness outbreak? Apparently, they may not until they can identify precisely where the tainted tomatoes came from.

The industry's growing frustration relates to the fact that the FDA has not yet completed the traceback from product linked to the 86 people sickened in the salmonella outbreak. The question remains - is the difficulty in traceback linked to a lack of industry progress on traceability systems or problems with science/and a lack of solid information from victims?

Some 30 plus people have been interviewed so far, but the FDA - according to industry sources - doesn't yet have the traceback done, in part because they still apparently lack bullet proof data on what stores or foodservice outlets were involved. Still, there are hopes the traceback can be finished in days. We will soon see...David Mitchell will have more coverage of this issue tomorrow on The Packer's news site.

CDC on salmonella and tomatoes

Here is the link to the CDC statement on salmonella and tomatoes. David Mitchell of The Packer is covering this story this week, so watch for his updates on The Packer news site. Amy Philpott of United Fresh indicated that FDA is expected to make a statement or release information today.


From the CDC:

CDC is collaborating with public health officials in several states, the Indian Health Service, and the U.S. Food and Drug Administration (FDA) to investigate an ongoing multistate outbreak of human Salmonella serotype Saintpaul infections. An epidemiologic investigation conducted by the New Mexico and Texas Departments of Health and the Indian Health Service using interviews comparing foods eaten by ill and well persons has identified consumption of raw tomatoes as the likely source of the illnesses in New Mexico and Texas. The specific type and source of tomatoes are under investigation; however, preliminary data suggest that large tomatoes, including Roma and red round are the source.

Since late April, 40 persons infected with Salmonella Saintpaul with the same genetic fingerprint have been identified in Texas (21 persons) and New Mexico (19 persons). The New Mexico Department of Health is investigating 17 additional Salmonella Saintpaul illnesses. These were identified because clinical laboratories in all states send Salmonella strains from ill persons to their State public health laboratory for characterization. Among the 38 persons who have been interviewed, illnesses began between April 23 and May 27, 2008. Patients range in age from 3 to 82 years; 48% are female. At least 17 persons were hospitalized. No deaths have been reported.

In addition, approximately 30 persons with Salmonella Saintpaul infection have been reported since late April in residents of Arizona, Colorado, Idaho, Illinois, Indiana, Kansas, and Utah. Investigations are underway to determine if consumption of raw tomatoes is also associated with illness in these states.

Advice to consumers:

• In New Mexico and Texas, until the source of the implicated tomatoes is determined,
  • persons with increased risk of severe infection, including infants, elderly persons, and those with impaired immune systems, should not eat raw Roma or red round tomatoes other than those sold attached to the vine or grown at home, and
  • persons who want to reduce their risk of Salmonella infection can avoid consuming raw Roma or red round tomatoes other than those sold attached to the vine or grown at home.
• Avoid purchasing bruised or damaged tomatoes and discard any that appear spoiled.
• Thoroughly wash all tomatoes under running water.
• Refrigerate within 2 hours or discard cut, peeled, or cooked tomatoes.
• Keep tomatoes that will be consumed raw separate from raw meats, raw seafood, and raw produce items.
• Wash cutting boards, dishes, utensils, and counter tops with hot water and soap when switching between types of food products.

You can check the CDC and FDA websites for updates on this investigation and changes in recommendations.

More information about Salmonella and this investigation can be found at:

• Salmonella FAQs
• Department of Health Announces Link Between Tomatoes, Salmonella

Looking for answers

David Mitchell of The Packer passes on this news release from Rep. Dingell of the House Committee on Energy and Commerce:

Reps. John D. Dingell (D-MI), Chairman of the Committee on Energy and Commerce and Bart Stupak, Chairman of its Subcommittee on Oversight and Investigations, sent a letter of inquiry today to 49 large food processing firms regarding their history of recalls, food safety alerts and all instances of known chemical or microbiological contamination of their products since January 1, 2000. These requests are part of an effort by the Committee to determine the source of safety threats to the American food supply.

“We are asking the largest food providers how often they have identified contamination by chemicals such as mercury and microorganisms such as E. coli and salmonella during their quality control testing procedures,” said Dingell. “We know from the Peter Pan peanut butter case and others that internal testing by food processors often fails to detect contaminants. Now we want to know what exactly is reported to the FDA or state public health authorities when companies actually find dangerous chemicals and bacteria in our food.”

Last week the Committee sent letters to private testing labs to determine the extent of adulterated imported food. This food may have found its way to American grocery stores as a result of food import firms hiding from the Food and Drug Administration (FDA) lab results that show food to be unsafe. The Committee has been conducting an intensive investigation of the safety of the food supply that has resulted in six congressional hearings and has involved the gathering of information from both the FDA and private firms.

TK: Additionally, here is a link to a list of recalls in the past 16 months, also passed along by David.

Chat - David Mitchell

I just posted a brief "chat" interview with David Mitchell, senior writer for The Packer. David brings a lot of journalism skills with him, including extensive work as a sports writer - something I have to say I envy. I managed to get a dig in at his Kansas Jayhawks, but he was above the fray and ignored my cheap shot. As if a K-State fan has room to talk....

11:03 AM me: Great - here we go - David Mitchell, senior writer for The Packer, where is your "hometown"?

5 minutes

11:09 AM david.edward.mitchell: I grew up in DeSoto, Kan., but my parents moved back to Hutchinson, Kan. -- their hometown -- while I was in college. I worked for the daily newspaper there for about five years when I was in my 20s. It was a nice set up. I was a mile from my parents, two miles from work and not far from my grandparents' house. I was a sportswriter back then, and I was minutes from the community college and the local high school. In an odd twist, my wife and I live in Shawnee, but we're in the DeSoto school district.

11:10 AM me: What do you think prompted your interest in journalism?

11:13 AM david.edward.mitchell: English was one of my better subjects in high school, and my sophomore English teacher -- who also was the journalism teacher -- encouraged me to take the newspaper class. So I guess it's her fault. I worked on the school paper during my junior and senior years and then studied journalism at the University of Kansas.

11:14 AM me: Well - you went into sports journalism - something I never did but always was fascinated with. What are the highs and lows of covering sports?

6 minutes

11:21 AM david.edward.mitchell: It was a fun job for a young, single guy. I got to cover two college bowl games, five or six NCAA Tournaments -- including two Final Fours -- a U.S. Open, the NBA Draft and some other interesting events. I've covered games in at least 20 states and have been to some places fun places like Hawaii, Vegas and New Orleans. The drawback is that sports writing, like a lot of journalism jobs, doesn't pay very well unless you're with a really big publication. The hours and travel are a real killer, too. The job I have now is a lot better, in terms of hours and travel, considering I have a wife and daughter. I can't even tell you how many birthdays, weddings, funerals, etc. I missed when I was covering sports.

11:22 AM me: At least now you don't have to write a story about KU losing in the tournament every year - ouch

11:23 AM david.edward.mitchell: Did I mention the two Final Fours? I'm not sure what to expect out of this year's Jayhawks. They have a nice looking record, but they seem to be having some trouble on the road of late. The loss at Okie State was disturbing. The Pokes aren't that good.

11:24 AM me: I'm sorry - I

11:25 AM I should say I don't have room to talk, being a KSU fan - they may not make it in this year at the rate they are going.... Leaving the sports world, what have been some highlights of produce journalism so far - any surprises?

11:28 AM david.edward.mitchell: This is the fourth newspaper I've worked at, and I have to say the working environment here is a lot better than in daily newspapers. It's a more postive experience. I think that's true of the industry in general. There are a lot of really friendly, helpful people like Roger Pepperl, Karin Gardner, Bryan Silbermann ... I could make you a very long list.

11:30 AM me: David, it has been good to have this brief chat. I could quiz you some more about the f/v industry advisory committee meeting that you covered recently but I fear I have already use enough of your time. Thanks for your help and we'll do it again sometime...

11:31 AM david.edward.mitchell: No problem. Thanks, Tom.

Fruit Logistica and other travel

Editor Lance Jungmeyer and News Editor Chris Koger are winging their way to Germany for the Fruit Logistica this week, while The Packer's David Mitchell is headed to Washington, D.C. tomorrow for the USDA fruit and vegetable industry advisory committee meeting. Hopefully, Lance may be able to post a couple of times from Germany. Meanwhile, I'm planning to head out to Russia on Saturday to explore the growing market there for U.S. produce. If any readers have any industry insights relative to Moscow and St. Petersburg, feel free to email me at tkarst@thepacker.com.

Frankel to UPGA

The Packer's David Mitchell is developing coverage on this breaking story.... From the United Potato Growers of America:

LEE FRANKEL TO LEAD UNITED POTATO GROWERS OF AMERICA

SALT LAKE CITY November 26, 2007—United Potato Growers of America today announced that Lee Frankel will lead the organization as president and chief executive officer of the national federated agricultural cooperative headquartered in Salt Lake City. Frankel will take the helm as of January 2.

Frankel holds a bachelor of arts in economics and a masters of arts in International Trade and Agricultural Policy from Stanford University. He has served the past 11 years as president of the Fresh Produce Association of the Americas, Nogales, Arizona. Frankel worked previously for five years as an international trade analyst with the U.S. International Trade Commission.

“UPGA’s CEO Search Committee has reviewed several candidates over the past several months and has taken great care to select the right individual with proven leadership abilities and a solid track record. Lee will be a great complement to our professional staff at headquarters,” said Albert Wada, UPGA chairman.

About United Potato Growers of America
United Potato Growers of America was formed in March 2005 by growers to balance supply to consumer demand. UPGA’s mission is to reverse years of declining and unprofitable prices for growers, which have caused many growers to go out of business. At this time, UPGA members are in California, Colorado, Idaho, Kansas, Klamath Basin (on the border of California-Oregon), Montana, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, Texas, Washington and Wisconsin. United Potato Growers of Canada was formed last year in conjunction with UPGA.

UPGA was created under the provisions of the Capper-Volstead Act that was enacted in 1922 by Congress to allow growers to work collectively to market their products. UPGA’s vision is to provide a consistent supply of high quality potatoes at a reasonable price for everyone including the consumer. Call UPGA’s national office at (801) 517-9000 or visit www.unitedpotatousa.com to learn more.


TK: One distributor in Nogales said that replacing Frankel will not be easy. With his knowledge of the workings of Washington D.C. and his acquired knowledge of the West Mexico industry, Frankel will be missed. Though the West Mexico deal has had three tough years in a row, the distributor indicated Frankel was well-appreciated for what he brought to the industry.


Here is the Packer 25 feature on Frankel from March 2006.


Lee Frankel, Fresh Produce Association of the Americas
By Bryan Scribner
In mid-September of 2004, a Medfly find in Tijuana threatened 100% inspection of host material coming across the Nogales, Ariz., border.
That could have subjected 300 to 400 loads of tomatoes, and hundreds of loads of other commodities from Mexico, to inspection and fruit cutting every day.
It just wasn't doable with 80 bays and the capacity to unload six trucks at a time at the border.
The biggest obstacle: Getting U.S. and Mexican officials to work together in forming a solution, said Bill Sykes, owner of The Sykes Co., Nogales, and chairman of the Fresh Produce Association of the Americas.
Sykes, chairman at the time, said he attributes much of that achievement to Lee Frankel, president of Nogales-based FPAA.
"For a time there, I thought that the border was going to be completely closed," he said. "But Lee did it. He got together with the right people and got them talking. It was a lot of work, but they got it done."
By Nov. 5 of that year, the inspection rate whittled to one in 20 shipments.
One of Frankel's best qualities is his ability to get people talking and to bridge communication gaps, Sykes said. He also has a valuable understanding of government.
In Washington, D.C., and elsewhere, Frankel gets things done right and in a timely manner, said Jerry Wagner, sales manager at Farmer's Best International LLC, Nogales.
When he talks to Frankel, Wagner said, "The first thing I do is I ask him if he's happy because I don't want him to leave."
At the association level, Frankel said his quest is to anticipate problems that pose a future threat to the fresh produce industry in Mexico. He strives to make sure the 120 members of FPAA are prepared to succeed as the business environment evolves.
It's not always glamorous, he said.
"The person that you rescue from being drowned is much more grateful than all the people you've saved by putting a decent, secure fence around the swimming pool so people don't fall in," he said.
A potential slip up could have occurred from the original draft of the Bioterrorism Act of 2002, something Frankel said would have devastated some Mexican growing operations, increased security risks, increased costs and caused significant produce damage.
Frankel was able to work with the U.S., Canadian and Mexican governments, along with associations south of the border, to help form a coalition that would guide the drafting of more workable rules.
But Frankel's work is not just about downgrading a forest fire into a camp fire. He also works to improve the operations and profitability of FPAA members.
In early January 2005, the Nogales Mariposa Port of Entry opened for Sunday crossings.
Although there was extreme opposition from some brokers, for some FPAA members, it was an essential tool to manage inventories and serve top tier retail, Frankel said.
To prevent future mistakes -- and to make sure members don't get caught off guard -- the ultimate goal of one of the FPAA's newest initiatives is to learn from others.
Specifically, the association must share information and resources with importers in Texas and California because at the end of the day, "No matter how much each local region likes to pride itself on service, product availability, different positive steps it's taking … a U.S. consumer, even a U.S. retailer or restaurant chain, they just see Produce from Mexico," he said.
"If there's a problem in one place in Mexico, it's a problem for all of Mexico."
With that consequence in mind, and with the call from his members to form a communication blanket to more closely align the efforts of those at the Mexican ports, Frankel is working to further establish relations with importers in Texas and San Diego.
After all, he said, the market share in Nogales will decline over time, and it makes sense to coordinate with those at other border crossings.
On Jan. 1, a San Diego division of FPAA became operational. While there is no staff or office, Frankel acts as the division's liaison, traveling from Tucson, Ariz., to San Diego to visit with importers, retail chains and wholesalers.
The division seeks to improve public relations, cold chain management, food safety, produce quality, certification requirements and convey production estimates, Frankel said.
In San Diego, the route to partnership formation was made easier through commonality of product and better understanding of importer operations, Frankel said.
Geographical and "cultural" differences limited the formation of a partnership with Texas importers, but Frankel said he hoped a similar division would be formed there in about a year.
"We need to pull together the importers from all across the border and try and take care of the problems more or less all at once," he said.
More to the Story
* Lee Frankel, president of the Nogales, Ariz.-based Fresh Produce Association of the Americas.
* Bio: Frankel, 38, received a bachelor's degree in quantitative economics from Stanford University, where he also completed a master's degree program in agricultural economics and international trade.
His first job was with the U.S. International Trade Commission, Washington, D.C. There, he was a fruit and vegetable international trade analyst for about five years.
In 1996, Frankel joined FPAA as managerial officer, a title that changed to president about two months after he started.
Frankel has served on the Produce for Better Health Foundation board, and he has been on government relations and international trade committees for the Produce Marketing Association and United Fresh Fruit & Vegetable Association. He also has been a board member of the United Agribusiness League.
* PERSONAL: Frankel enjoys bicycle racing, something he's been doing competitively for about 14 years. He participates in about four to five national or regional events each year.
He and his wife of five years, Lorena, are raising twin 18-year-old girls.

More than bananas

Chiquita recently reported a restructuring of their operations, and the The Packer's David Mitchell wrote this about their moves:

As part of a restructuring initiative announced Oct. 29, Cincinnati-based Chiquita Brands International Inc. said its plans to axe the line of fruit bowls it introduced in 2003 and instead will focus its fresh-cut efforts on value-added salads and snack packs.“Over the last year or so, we introduced new products, like Chiquita Apple Bites, as healthy snacks,” said Chiquita spokesman Mike Mitchell. “Those have been much (more well) received by consumers and customers.”In addition to its Apple Bites, Chiquita introduced single-serving bags of grapes, carrots and snap peas this summer in test markets.Mitchell said Chiquita plans to honor its fruit bowl commitments to customers but will convert fresh-cut plants in Edgington, Ill., and Salinas, Calif., from fruit bowl production to snack pack and bagged salad production in the next few months.

TK; In other news, Fresh Del Monte today issued a fresh report about their third quarter performance.

From their release:

For the third quarter of 2007, Fresh Del Monte reported net income of $29.9 million, compared with a net loss of $82.9 million for the comparable prior year period. Net income for the first nine months was $145.4 million, compared with a net loss of $83.4 million during the same period in 2006. The significant increase in net income for the first nine months of the year was due to continued andd sstained improvements throughout the Company’s operations. “It is gratifying to see the actions we took in 2006 to drive global improvements have had a very favorable impact across all of our business segments,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. “Our team did an exceptional job in terms of focusing our sales and marketing efforts and increasing efficiencies, and these efforts have resulted in one of the best third quarters in our history, during what is traditionally our most challenging three-month period.” Abu-Ghazaleh added, “We continue to face challenges in our industry and our business related to the high cost of fuel, raw materials and transportation. As always, we will remain sharply focused for the balance of 2007 to manage those challenges and drive performance.”

TK: One of the things that stood out to me on the Del Monte's third quarter balance sheet is the fact that bananas accounted for 37% of sales but just 10.1% of profits for the third quarter. In contrast, "other fresh produce" accounted for 45% of third quarter sales and 69% of profits. Wall Street has wanted banana companies to diversify and both Fresh Del Monte and Chiquita are doing exactly that.

Apple fries

David Mitchell of The Packer passes on this interesting link about BK's new Apple Fries.

From the story in Ad Age:

Are America's kids ready for apple fries? As Burger King becomes the latest fast feeder to join the Better Business Bureau's Children's Food and Beverage Advertising Initiative, it's introducing a new product: raw apples cut to look like french fries and served in a box that it calls the Frypod. The catch is, they aren't fried and there's no sugar added.

We think kids will flock to it," said Burger King spokesman Keva Silversmith. To devise the product, Burger King developed a proprietary cutting process that makes apple slices look like fries. Then they're washed in water with lemon, to keep from turning brown. In addition to the new product, the chain agreed to limit its advertising to children under 12. The company will push to young kids only meals that have fewer than 560 calories and only meals that derive less than 30% of their calories from fat. The marketer spent $285 million in advertising last year. Also on the way are new kids' meals. This fall, Burger King will begin testing a kids' meal that swaps fried, crown-shaped chicken tenders for flame-broiled ones, and Mott's apple sauce with the organic, no-sugar-added variety. It will also include Hershey's 1% fat chocolate milk instead of a soda. The new products are expected to be in Burger King locations nationwide by late 2008. Burger King becomes the 12th company in recent months to pledge restrictions on advertising to children, focusing on better-for-you foods. Cadbury Adams, Campbell, Coca-Cola, General Mills, Hershey, Kellogg's, Kraft, Mars, McDonald's, Pepsi and Unilever have already signed on. Kids' meal face liftThe Burger King announcement may signal the end for the traditional kids' meal, which has long been comprised of a burger or nuggets, fries and a soda. While Wendy's hasn't joined the advertising initiative, its kids' meal is a turkey-and-cheese sandwich, yogurt with granola, and low-fat milk. McDonald's will be the only of the three to offer fried food in a kids' meal, by way of its chicken McNuggets. Elaine Kolish, director of the Initiative, praised Burger King's pledge. "As one of the major restaurant chains in the country, they're a noted children's advertiser, so having them is a great addition," she said. "Previously, we only had one children's quick-serve restaurant, McDonald's, so we're delighted to have Burger King join us."

TK: Another piece of good news for the apple industry. I wonder how the apple slices will be packaged before they are put in the "frypod." In bulk bags, most likely, so it might entail a little more labor and possibility for mishandling than a consumer poly bag. On the subject of the gains in fresh apple slices, here is an audio link to a speech by Tony Freytag, the director of marketing for Cashmere, Wash.-based Crunch Pak, at the August U.S. Apple Association Outlook and Marketing Conference.

W-M delays green report

The Financial Times and others report that Wal-Mart is delaying its "green report."
The story notes Wal-Mart has not set a date for the release of the report, which deals with the retailer's commitment to the environment and social sustainability.

Flashback: The Packer's David Mitchell wrote in November of last year:

Now suppliers who do business with Wal-Mart Stores Inc., Bentonville, Ark., and its Sam's Club division soon will be asked to take one more step to bring their products to market.
The world's largest retailer announced in September that it planned to reduce packaging from its global supply chain by 5% by 2013. On Nov. 1 at the Conference at Pack Expo, Wal-Mart spelled out how it planned to reach that goal with Web-based scorecards that will rank suppliers and packaging manufacturers. By 2008, packaging sustainability information gleaned from those scorecards will be one of the factors Wal-Mart considers in purchasing decisions, including produce.
"We at Wal-Mart recognize that we have unique strengths and a unique opportunity to have a positive impact on the environment through our own actions, those of our customers and those of our suppliers," said Matt Kistler, vice president of package and product innovations for Sam's Club. Starting Feb. 7, Wal-Mart plans to begin a one-year trial, during which its 60,000 global suppliers -- including more than 1,000 produce shippers in North America -- will input, store and track data about their packaging. Suppliers will be rated on greenhouse gas emissions, material content, cube utilization, transportation, recycled content, renewable energy, innovation and other factors related to their packaging.


TK: Wal-Mart''s scorecard on itself has been delayed. While such an effort is undeniably complex, Wal-Mart's follow through on this issue is a measure whether it can walk the talk as well as talk the talk.

Wal-Mart and produce vendors

From the various times I have interviewed shippers about being a vendor/partner for Wal-Mart, the discussion inevitably runs to this theme; Wal-Mart makes you take a look at your own operation and makes you better.

In the long term, is there more good than bad in being a Wal-Mart vendor? One article published in December 2003 that looked at that issue in the general sense is "The Wal-Mart You Don't Know," published here by Fast Company.com and written by Charles Fishman.

The subhead read: The giant retailer's low prices often come with a high cost. Wal-Mart's relentless pressure can crush the companies it does business with and force them to send jobs overseas. Are we shopping our way straight to the unemployment line?"



Of course, not a lot of current suppliers wanted to be quoted, but here are some pithy sum-up statements from the article.

For many suppliers, though, the only thing worse than doing business with Wal-Mart may be not doing business with Wal-Mart.

Many companies and their executives frankly admit that supplying Wal-Mart is like getting into the company version of basic training with an implacable Army drill sergeant. The process may be unpleasant. But there can be some positive results.


Here is more of the substance offered by Fishman...


There is no question that Wal-Mart's relentless drive to squeeze out costs has benefited consumers. The giant retailer is at least partly responsible for the low rate of U.S. inflation, and a McKinsey & Co. study concluded that about 12% of the economy's productivity gains in the second half of the 1990s could be traced to Wal-Mart alone.

By now, it is accepted wisdom that Wal-Mart makes the companies it does business with more efficient and focused, leaner and faster. Wal-Mart itself is known for continuous improvement in its ability to handle, move, and track merchandise. It expects the same of its suppliers. But the ability to operate at peak efficiency only gets you in the door at Wal-Mart. Then the real demands start. The public image Wal-Mart projects may be as cheery as its yellow smiley-face mascot, but there is nothing genial about the process by which Wal-Mart gets its suppliers to provide tires and contact lenses, guns and underarm deodorant at every day low prices. Wal-Mart is legendary for forcing its suppliers to redesign everything from their packaging to their computer systems. It is also legendary for quite straightforwardly telling them what it will pay for their goods.

What does Wal-Mart care about? Here is coverage from The Packer from November 2004:

Describing Wal-Mart's produce operations as "young" and "having a lot of room to grow," Scott Clubine, soft fruit buyer for Wal-Mart Stores Inc, Bentonville, Ark., spoke to the Houston Fresh Fruit & Vegetable Association at its November meeting.
Clubine emphasized the culture at Wal-Mart remains firmly focused on serving the customer and less on trying to work the art of the deal.
"We try to spend less time haggling over prices or packaging and a lot more time worrying whether we're satisfying the customer," he said.
In the end, Clubine said, if the price is great but the customer doesn't want the product, Wal-Mart loses.
Software tools: Clubine reviewed three Wal-Mart software tools that measure customer behavior and offered them to anyone who becomes a vendor.
The effort, Clubine said, is to help vendors understand where their product is selling and where it is not.
"At Wal-Mart, it's all about turns, and we're constantly measuring how well our inventory turns on each customer's visit," he said.
Clubine described the tools as the following: M-CAPS, which reports sales density by commodity; Market Basket, a system that tracks what customers combine in their shopping cart; and Customer Insights, a demographic profiling system for Wal-Mart sales areas.
The software supports Wal-Mart's cluster store concept for managing inventory levels, Clubine said.
And better inventory management adds immediate benefit by reducing the number of distribution centers needed to maintain inventories.
"We used to plan on one (distribution center) for every 50 stores. Now, with better inventory management, we see the ratio growing to 100 stores for every DC."
"But if you want to do business with us, you have to come to us with a marketing plan that speaks to our customers," he said. "As a buyer, I spend more time working on succeeding at produce sales, and at Wal-Mart, it's all about turns."

In the issue of May 28, The Packer's David Mitchell has reported on changes to Wal-Mart's procurement policies.

Wal-Mart Stores Inc. has altered its procurement procedures during the past two years, but recent criticisms that the Bentonville, Ark.-based retailer has violated terms of its supplier agreements are unwarranted, the company's vice president and divisional merchandise manager for produce and floral said.
"Wal-Mart honors (its) contracts and offers the suppliers the right to talk to Lee Scott, our CEO, or Rob Walton, our chairman, through the open-door process if we do not," said Ron McCormick, vice president and divisional merchandise manager for produce and floral.

Later in the story:

McCormick said a number of factors led to the demise of distribution center assignments, including the growth of the company's consolidation facilities that allow the company to send full truckloads to its 38 food distribution centers.
"Our local purchase program also means that we have many more small growers we are doing direct business with, often combining them to meet the demand of a single (distribution center)," he said. "That single supplier per DC consistency no longer adds value, and actually impedes better customer service."


TK: Wal-Mart's utilization of consolidation facilities, opportunity buys and its growing business with local suppliers may explain changes in procurement policy. But why are more suppliers apparently more apprehensive about their vendor relationship with Wal-Mart? With 17% of the perishables market (Business Week stat) and growing, Wal-Mart's influence won't wane anytime soon. Again I ask, is being a Wal-Mart supplier good for a produce shipper, or, as Fishman so smartly wrote about Vlasic pickles, is the experience "a devastating success?"