Produce rolls with the changes; USDA plans grower payments
With foodservice sales continuing at a fraction of normal and grocery store foot traffic down sharply compared with normal levels, produce distributors continue to look for ways to alleviate bottlenecks and waste in the supply chain while demand shifts during the COVID-19 pandemic.
Agriculture Secretary Sonny Perdue, who appeared on a Farm Journal Live AgDay April 16, said President Trump is close to announcing a plan for up to $16 billion in direct payments to all ag sectors, from produce to livestock and commodities. Farm Journal is The Packer’s parent company.
Another $2-3 billion would be for direct purchases of food stranded by a broken supply chain, a move lobbied for by the industry. It would be directed to products from the foodservice industry, moving them to food banks and other non-profits strained by the pandemic.
Perdue reiterated that there is not a lack of food available, and said the American food supply is “sophisticated and synchronized,” focused on a just-in-time resupply.
“So when those animals and those crops, produce, leave the farm, it has to move very quickly into the supply chain,” he said. “There is a broken link in the chain, and things back up very quickly.”
More than two dozen senators on April 13 sent a request to Perdue asking for quick action on allocating money from the Coronavirus Aid, Relief and Economic Security (CARES) Act, citing a $5 billion loss to the fresh produce industry caused by the pandemic.
“As USDA specifies how this assistance will be provided, we ask that you ensure that specialty crop producers receive assistance that is commensurate with the losses they are facing,” according to the letter, signed by 27 Democrats, 1 Republican, and an Independent.
No outbreak-related shortages of fresh produce were noted in mid-April. The U.S. Department of Agriculture reported the weekly average shipping point price for all fresh produce and flowers was $16.11 per carton, up from $15.66 on April 4 but down from $16.87 on March 14.
With U.S. COVID-19 cases at more than 667,000 sickened and 32,000 dead as April 16 and 32,000 dead, President Trump indicated e was hopeful for a partial reopening of the U.S. economy by early May.
Trump published an 18-page guide called “Opening up America Again” that set out guidelines for states to follow as they ease shelter in place restrictions. One guideline in the paper said reopening of the economy should begin only if COVID-19 cases are decreasing.
Several packing meat packing plants were closed in mid-April because of employee cases of COVID-19, sparking national talk of potential meat shortages and causing havoc with pork prices for producers.
Labor news
The Department of Homeland Security is temporarily allowing H-2A workers to stay in the U.S. beyond the current three-year maximum, which should give growers a bigger pool of workers.
“This is something we had recommended to the administration as a means to assure that adequate numbers of workers would be available to maintain critical agricultural infrastructure of the U.S. during this crisis,” Michael Marsh, president and CEO of the National Council of Agricultural Employers, said in an e-mail. “We are pleased that DHS and USDA have worked together to quickly implement this temporary rule.”
Farm workers in the biggest produce state were given two weeks of paid sick leave on April 16 by an executive order from
In California, Democratic Gov. Gavin Newsom on April 16 signed an executive order giving farm workers two weeks of paid six leave. The move covers employees of large companies in the food sector, including grocery stores and fast food chains. A federal relief program provided similar benefits for employers with fewer than 500 workers.
The release said workers in the food sector, including farmworkers, agricultural workers, and those working in grocery stores and fast food chains, and as delivery drivers, are part of the state’s essential infrastructure workforce.
“These workers on the front lines of this crisis are our unsung heroes for continuing to work to ensure that Californians have food on their tables during these challenging times, and we must do everything in our power to make sure they are taken care of at home and in the workplace,” Newsom said in a news release. “Making sure they have paid sick leave and added protections in their place of work is critical.”
Newsom’s executive order provides health and safety standards to increase worker and customer protection by permitting workers at food facilities to wash their hands every 30 minutes, or as needed, to increase proper sanitation measures.
Other COVID-19 developments include:
- The United Fresh Produce Association worked with USDA to allow schools in the Fresh Fruit and Vegetable program to use those funds to distribute produce snacks in their alternative meals service plans.
- The U.S. Department of Agriculture has delayed enforcement of country-of-origin label requirements for fresh produce and other foods to allow foodservice distributors (which don’t have COOL requirements) to sell to retailers. The 60-day hiatus started April 20.
- United Fresh and the School Nutrition Association, which represents school foodservice operators, are working to connect foodservice distributors and processors with school personnel to get single-serve wrapped produce into more meals at temporary distribution sites. United Fresh also worked with USDA to allow schools in the Fresh Fruit and Vegetable program to use those funds to distribute produce snacks in their alternative meals service plans.
- Produce Marketing Association consumer research — shows that more people are buying fresh produce than before the pandemic, and top concerns are food safety and shelf life.
- Supply chain disruptions, chiefly loss of foodservice markets, are affecting future production. For example, potatoes for the foodservice market, especially French fries and other frozen products, could see a drop of more than 25% in production.
- Fresh produce exports to China are starting to improve as supply chains return.
