Fresh Talk

Proposed SNAP rule no bargain

Tue, 15 Nov 2022 07:40:06 GMT

The United States Department of Agriculture plan to eliminate broad-based categorical eligibility in the Supplemental Nutrition Assistance Program is drawing tons of comments and criticism.

With the comment period closed on Nov. 1, more than 168,000 weighed in on the plan at regulations.gov ,

The agency’s technical description of the proposed rule is this:

Section 5(a) of the Food and Nutrition Act of 2008, as amended, provides that households in which each member receives benefits under a state program funded under part A of Title IV of the Social Security Act (SSA) (also known as Temporary Assistance for Needy Families (TANF) block grants) shall be categorically eligible for the Supplemental Nutrition Assistance Program (SNAP). Currently, SNAP regulations broadly interpret “benefits” to mean cash assistance and non-cash or in-kind benefits or services from any TANF –funded program.

In operation, this has allowed categorical eligibility for SNAP to be conferred on households based on receipt of minimal benefits issued by TANF-funded programs which may not conduct a robust eligibility determination and do not meaningfully move families toward self-sufficiency. The Food and Nutrition Act has clear parameters regarding the income and resource limits that SNAP households must meet, and categorical eligibility is intended to apply only when the conferring program has properly determined eligibility. Extending categorical eligibility to participants who have not been screened for eligibility compromises program integrity and reduces public confidence that benefits are being provided to eligible households.

Therefore, the Department proposes updating the regulations to refine categorical eligibility requirements based on receipt of TANF benefits. Specifically, the Department proposes: (1) to define “benefits” for categorical eligibility to mean ongoing and substantial benefits; and (2) to limit the types of non-cash TANF benefits conferring categorical eligibility to those that focus on subsidized employment, work supports and childcare. The proposed rule would also require state agencies to inform FNS of all non-cash TANF benefits that confer categorical eligibility.

The proposed revisions would create a clearer and more consistent nationwide policy that ensures categorical eligibility is extended only to households that have sufficiently demonstrated eligibility by qualifying for ongoing and substantial benefits from TANF-funded programs designed to assist households and move them towards self-sufficiency. In addition, the revisions would help ensure that receipt of nominal, one-time benefits or services do not confer categorical eligibility and would address program integrity issues that have surfaced since the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 changed the programs whose benefits confer categorical eligibility. The Department believes these revisions will maintain categorical eligibility’s dual purpose of streamlining program administration while ensuring that SNAP benefits are targeted to the appropriate households.

I don’t see any industry associations getting involved with this debate, but liberal lawmakers are fully engaged. Here is a release from one that landed in my inbox:

WASHINGTON – Rep. Marcia L. Fudge (OH-11) joined the Congressional Black Caucus (CBC) in sending a letter today to U.S. Department of Agriculture (USDA) Secretary Sonny Perdue regarding the Department’s proposed rule to eliminate broad-based categorical eligibility (BBCE) in the Supplemental Nutrition Assistance Program (SNAP) and its adverse impact on access to school meals for nearly 1 million school-age children.

“It is alarming that USDA continues to move forward with its SNAP proposal even after releasing data that shows it would cause nearly 1 million students to lose automatic access to free school meals,” said Rep. Fudge. “As the late Congressman Cummings frequently said, ‘Our children are the living messages we send to a future we will never see.’ What kind of message are we sending by limiting access to programs essential to student health and success? I join with the Congressional Black Caucus in calling on Secretary Perdue to rescind this cruel proposal immediately.”

“It is unfathomable that as Americans are preparing for the holiday season and Thanksgiving, President Donald Trump’s Administration is considering a proposal to reduce one million hungry children from receiving access to free school meals,” said Rep. Karen Bass, Chair of the CBC. “SNAP is the first line of defense against hunger and food insecurity for low-income families and children. As the ‘Conscious of the Congress,’ the CBC calls on the Trump Administration to immediately withdraw the proposal.”

According to USDA estimates, over 3 million people, including seniors, veterans, persons with disabilities, and working families with children, would be kicked off SNAP under the proposed rule. Nearly 1 million children in affected SNAP households would lose automatic eligibility for free school meals.

We have already lost too much under this Administration, and the Congressional Black Caucus stands ready and willing to protect our nation’s most vulnerable population: our children.

More than 300 comments on the proposal at regulations.gov included the search word “fruit.” Here are a few:

From a Feeding America-associated comment:

I am writing to oppose the proposed rule that guts the Broad-Based Categorical Eligibility option in the Supplemental Nutrition Assistance Program (SNAP). The proposal would take away school meals from children, hurt seniors and families who save for the future, and punish workers for getting a raise.

We should not punish children trying to thrive in the classroom or penalize people who work hard to take care of their families. My small SNAP benefit plus a food bank keep me from starvation from the 20th of every month until I get paid on the 3rd of the next month.

I routinely only buy fruits and veggies on sale foe 99 cents per pound. Nothing is cheaper than that. I cannot afford organic produce. I need this kind of food as I am diabetic and my diet is mostly fruits and veggies and I must home cook everything so my meals are perfectly coordinated. I am careful with my money and my diet. I just cannot make ends meet on Social Security and a $165/month pension.

From the Anthony L. Jordan Health Corporation:

The Anthony L. Jordan Health Corporation (Jordan Health) is a federally-qualified health center providing preventive and primary care to 27,000 low-income residents of Rochester, NY. We strongly oppose the USDAs proposed rule (RIN 0584-AE62) revising the Broad-Based Categorical Eligibility (BBCE) requirements of the SNAP program.

On a daily basis, Jordan Healths clinical staff attend to patients with illnesses associated with poor nutrition. A 2017 study in the Journal of the American Medical Association found that Dietary factors were estimated to be associated with a substantial proportion of deaths from heart disease, stroke, and type 2 diabetes. These results should help identify priorities, guide public health planning and inform strategies to alter dietary habits and improve health. [JAMA 2017: 317(9): 912-924]. USDAs proposed rule flies in the face of this recommendation, creating additional financial barriers to low-income families in maintaining a healthy diet.

Ninety-seven per cent of Jordan Health patients live below 200% of the federal poverty level. As a result of limited resources, our patients face multiple challenges to maintaining health and wellness. They carry a disproportionate share of the communitys disease burden. For example, throughout the Jordan Health service area, every census tract with a high percentage of poverty also has a high prevalence of type 2 diabetes.

A healthy diet is a fundamental component of overall health. Any barrier to purchasing healthy foods has a marked impact on health. The proposed rule significantly reduces the number of households eligible for SNAP benefits and penalizes the many employed SNAP recipients by making it more difficult for households to save and to maintain financial stability when their income increases. Even with SNAP benefits many families struggle to purchase the fruits, vegetables, whole grains, and proteins essential to maintaining health, substituting instead less expensive but nutritionally poor foods that contribute to obesity and related chronic conditions. To further jeopardize families ability to purchase food is to further jeopardize their health and well-being and to achieve a modicum of self-reliance.

Moreover, the proposed rule will serve only to add to the relentless, toxic stress that low-income families experience daily. At Jordan Health, we see the health repercussions of this stress which has economic and food insecurity at its root in patients with diabetes, depression, and hypertension. The additional administrative burden and the added financial burden engendered by the proposed rule will only increase stress levels and interfere with patients efforts to make healthful lifestyle changes or even to adhere to treatment plans.

From the standpoint of public health, the proposed rule is short-sighted. Whatever immediate savings that may accrue will most certainly be swallowed in higher health care costs down the road. We can anticipate that among the 3 million people likely to lose SNAP benefits, there will continue to be preventable emergency department and hospital admissions.

Under the guise of good governance and closing loopholes, this misguided proposed rule will do nothing to improve the health and well-being of Jordan Health patients and will create additional barriers to attaining financial stability. Similar proposals have been repeatedly dismissed by Congress. This proposal should also be dismissed by USDA.

From Tracy Arant

SNAP, combined with school breakfast and lunch, helps ensure that children are not hungry and are growing up healthy. Hungry children struggle. The proposed rule should be withdrawn.

SNAP is the first line of defense against hunger for poor families and individuals. The proposed rule would eliminate SNAP benefits for 3.1 million people, take free school meals away from children in these families, and punish people with even small savings. I strongly oppose the proposed rule.

SNAP helps struggling families put food on their tables and schools provide nutritious meals to keep children from hunger and eager to learn. I request that the proposed rule be withdrawn.

The proposed rule would eliminate SNAP benefits for 3.1 million people, and prevent 500,000 children from receiving healthy meals. By USDA’s own estimates, the proposed rule would cut SNAP benefits over five years by $10.543 billion, while increasing SNAP administrative costs by $2.314 billion. The benefit savings and increased administrative costs are not a fair exchange for hungry people. I strongly oppose the proposed rule and request that it be withdrawn.

The proposed rule cuts to SNAP benefits will reduce the economic impact of SNAP in our communities. SNAP spending has relatively large effects on businesses, such as food and beverage manufacturers, packaging manufacturers, grocery stores and food and other wholesalers, and trucking and rail freight industries. Other sectors including health and social services and agriculture are impacted as well. Local farmers’ markets receive revenue from SNAP purchases and many of those markets also participate in incentive programs that provide SNAP shoppers with bonuses for purchasing fruits and vegetables. Support our local communities’ economies by withdrawing the proposed rule.

SNAP connects children from struggling families to much-needed free school meals. Children whose households participate in SNAP are directly certified to receive free school meals. Direct certification helps to ensure that children who need free school meals are certified to receive them, and it reduces administrative work for school districts. The proposed rule should be SNAP plays a critical role in addressing hunger and food insecurity in our community.

The proposed rule would strip states’ options to eliminate SNAP asset tests and use a higher income test to serve more working households that have significant expenses for housing and childcare. I request that the proposed rule be withdrawn. Children’s access to much needed nutrition resources at home through SNAP and at school through free school breakfast and lunch should not be at risk by the proposed rule. Our nation’s children should not be harmed by hunger and malnutrition. I oppose the proposed rule and request that it be withdrawn.

TK: It seems to me there are plenty of reasons to dump the proposed rule, largely related to its impact on struggling families and individuals. The changes would also take money from the SNAP program, a move that would ultimately hurt farmers and retailers. Walking back any government-provided benefit is understandably difficult and this attempt doesn’t seem worth the cost.

A helpful Q and A on the hours of service regs and ag commodities

Fri, 23 Sep 2022 20:02:26 GMT

Putting a finer point on government regulations or providing clarity on bureaucratic language is not easy to do.

However, there are ways it can be done. The simple process of question and answer is perhaps the best approach.

Chad DeWitt, with Benton Harbor, Mich.-based Lenk Transportation Inc., recently shared with me a series of email exchanges he had in June with the Federal Motor Carrier Safety Administration related to hours of service regulations and the agricultural commodity exemption provision.

With Chad’s permission to reprint, here are some excerpts:

From Chad to the FMCSA:

Good afternoon,

I am reaching out in hopes of some clarity on the new laws & regulations for driving time.

We are a small firm that handles produce shipments from packing houses to retail markets.

Would the exemptions apply to these shipments? Or is it more a case of field to packing sheds?

Also, another question that keeps coming up is when the “service” actually starts? An exampleon what we run into, is we deal with LTL (less than truckload) orders, so it is common for our loads to have multiple pickups and multiple drops. I would like to present a scenario, and you tell me at what point the drivers hours start.

Pick up 1. In Sparta, MI – driver leaves Grand Rapids, MI at10:30 am, arrives at packing shed in Sparta at 11:30 am. Upon arrival, shed notifies driver that product will not be ready until 2 pm. Driver waits for product. Finally is ready to leave pick up #1 at 3pm, heads over to pick up #2 in Hudsonville, MI.

Arrives at pick up # 2 @ 4pm, loaded by 5:30pm @ pick up #2. Ready to head to pick up # 3 in Benton Harbor, MI.

Arrives at shed #3 at 7:30pm, and is loaded with the product, doors close at 9pm.

Drivers 1st delivery is in Indianapolis, IN at 4am. Can he legally make this shipment?

Or is he technically out of hours before getting loaded? I do apologize for the long email, and drawn out scenario, but it seems that there is quite a bit of “propaganda” being thrown out there by drivers as well as shippers and packing houses. So I thought I would just go directly to the source and find out what the protocol actually is.

Is there an explanation to the rules and exemptions that we can direct them to, so everybody can get a clear understanding? The more simple the explanation, the better not only for our customers, but for myself as well.
I really appreciate your time, and look forward to hearing your input!

(Farm Journal)

The following was the response from the FMCSA official:

Let see if I can help here, if not it much be good to talk with me or one of my specialists on the phone. A few key points for your scenario.

• The points where you load can be considered a “source” if the product still meets the definition of agricultural commodity, meaning it is not processed in any way. Packaging is not processing. Also, I am assuming you don’t load any other products that are not agricultural commodities on the vehicle. If you do you lose the exception.

• I also am assuming your driver is coming off a 10-hour break.

• Sparta is your source in the scenario, so all transportation-related activities that occur within the 150 air-mile radius (172 or so road miles) are excepted from the hours of service. That means Grand Rapids to Sparta, the waiting and loading time in Sparta and any other work within that radius does not count toward the hours of service.

• Multiple pickups do not change the fact that Sparta is the source where the radius is drawn.

• Whether you can make trip to Indianapolis at 4 AM depends on what time your driver leaves that 150-air mile radius. Upon leaving, he has 11 hours of driving available.

• If it can be done, that is a very long day, so he and you both still have the responsibility to make sure he has adequate rest and is not too fatigued to drive safely.

I hope this is helpful. There is a summary and other information on our website, and additional materials will be added over the course of the next several days. www.fmcsa.dot.gov/ag

Here was the follow-up question from Chad:

I do apologize for my lack of understanding. But using the same scenario that I listed below. If a driver is not coming off of fresh hours, say he unloaded in Grand Rapids, and we send him on the shipment in which he has 6 hours left. Can he go make the pick ups that I have listed, and still have 6 hours left after leaving the 150-mile radius of Sparta, MI?

The FMCSA response:

If you aren’t coming off a 10-hour break you have to watch the 14-hour clock, which will start the when you leave the initial 150 air mile radius. I don’t know the distances of all of those places, but just be aware of that when thinking about your delivery in Indianapolis.

Another question from Chad to the FMCSA:

I have been spreading the information that you shared with me in regards to the rules. And a few questions that have come up have been what is considered the “Source”? A number of them have been told that their home base is the source.

Also there seems to be confusion on how to log this on the electronic logs. If they are picking up the load, and has 3 pick ups……..do they turn their ELD’s off? There are only 4 or 5 modes to choose from.

1. Sleeper berth

2. Off Duty

3. On Duty

4. Personal use

5. Yard Move

Which one would my driver use in my case that I presented to avoid a status of “Violated”? This issue seems to be widespread amongst drivers? They understand the essence of the rule, but they don’t seem to know how to apply it to their instruments. Trust me, I have looked at the website rules that you referred me to , and I have not come up with anything. Please help,

FMCSA response to the “source” question:

There are three options for operating with an ELD and the Ag HOS exemption. They are described on our webpage .

The options are:

1. Don’t log it. Then when they do they will have to reject the unassigned miles and annotate them as Ag excepted miles

2. Log in and annotate the excepted miles accordingly

3. Use the personal use function ad annotate as ag excepted

Noting a violation is not a requirement of the ELD spec and doesn’t necessarily mean anything. In reviewing the ELD information the officer will look at all of the information available to determine compliance, including annotations.

Chad’s response to the FMCSA clarification:

Thanks again!

So, is the “source” that you speak of, another word for “home base”?

FMCSA response

The “source” is not necessarily home base, it is the location that the agricultural commodity is loaded, such as a grain elevator, sale barn or some intermediate loading location. From the guidance:

Determining the “source” of the agricultural commodities under § 395.1(k)(1)

Although an agricultural commodity may have several “sources”, the “source” excludes the point at which the commodity is processed to such an extent that it is no longer in its original form or does not otherwise meet the definition of an agricultural commodity in 49 CFR 395.2.

Question: How is the “source” of the agricultural commodities in § 395.1(k)(1) determined?

Guidance: The “source” of an agricultural commodity, as the term is used in § 395.1(k)(1), is the point at which an agricultural commodity is loaded onto an unladen commercial motor vehicle. The location may be any intermediate storage or handling location away from the original source at the farm or field, provided the commodity retains its original form and is not significantly changed by any processing or packing

TK: Thanks to Chad for sharing this exchange and giving a little more clarity to federal government guidance on hours of service and the ELD mandate relating to agricultural commodities.

A snapshot of leading U.S. fresh produce imports

Thu, 22 Sep 2022 02:13:00 GMT

Check out leading U.S. fresh produce imports for the last five years and longer-term charts of U.S. berry and avocado imports.

Tracking the ups and downs of produce markets during COVID-19

Fri, 23 Sep 2022 18:08:25 GMT

Fresh produce market prices have been quite variable in the weeks since the COVID-19 crisis began in March.

In this blog post, I am going to track the average f.o.b. price of several commodities in relation to the average terminal market/wholesale price, expressed as a percentage.

In my thinking, the lower the percentage is the stronger the overall market demand at the wholesale level, at least relative to the shipping point market.

Let’s look at a few examples:

Don’t forget the farmers and farm workers in sustainability talk

Fri, 23 Sep 2022 18:07:52 GMT

Two days into a week-long poll, industry operators are weighing in on the question “ What is the top sustainability priority for your company? ”

With 56 votes and 16 comments, here are the results to date:

Soil health: 13%;
Reduce plastic packaging: 30%;
Increase water efficiency: 20%; and
Farmworker well being 38%.

The poll only allowed for four options, and readers have pointed out that is not sufficient. Don’t forget about the sustainability of the farmer, readers said:

“Economic sustainability is key, because poor and broke people take shortcuts, like the people who dump tires and garbage on our farms;"
“Making sure the farmer is able to be in business the following year”

The world versus plastic: Regarding pushing down the use of plastic, Japan, starting today, will require all retailers to charge a fee for the use of plastic shopping bags, with the exception of biodegradable plastic bags and plastic bags containing at least 25% of renewable plant-based materials.

The exemption, according to a U.S. Department of Agriculture Foreign Agricultural Service report, is expected to increase demand for biomass-based plastic bags.

In my view, sustainability progress needs the encouragement of government regulations.

From the report :

“Every year Japan generates about 9 million metric tons (MMT) of plastic waste, of which 4 MMT are from single-use plastics. Japan’s annual consumption of plastic bags is approximately 45 billion sheets, of which 30 percent are provided by convenience stores at the point of sale.

On May 31, 2018, the Government of Japan (GOJ) released the Plastic Resource Recycling Strategy. GOJ committed to a 25 percent reduction in single-use plastic consumption by 2030. Simultaneously, GOJ aims to double the use of renewable biomass plastics to about 2 MMT by 2030. Biomass-based plastics are manufactured from renewable materials, such as corn-based ethanol, wood fiber, starch and others.”

The top vote-getter so far in our sustainability priorities poll is farmworker well being. Consumers are aware of this issue, as a pop up poll on our coverage of the Dirty Dozen list

One consumer responding to the poll question “What is your level of trust in fresh produce?” said this:

“During the Covid 19 outbreak, not too trusting, as farmworkers are not given proper paid time off to care for themselves during this pandemic. I think it is crucial that everyone have the same opportunity to call in sick without losing a paycheck during this unprecedented time we are going through. Keeping the workers safe and healthy means we are all safe and healthy!”

When asked to explain “why,” the same reader said:

“This is important in order to keep covid 19 under control. Keeping the workers safe and without risk of losing their jobs and paid time off will assure they will do the right thing, simply because they can! Without paid time off if they have covid 19, they have no way of making ends meet. They need to work whether they have covid 19 or not and that is not safe for the rest of us. Making an exception at this time to pay time off for covid is the right thing to do.”

COVID-19 is unlike anything the industry has ever faced, and the considerable efforts to prevent the spread of the virus have fallen short, in part because many farmworkers live in close community.

Here are some headlines from the past few days related to COVID-19 and farmworkers:

Farmworker advocates worry Oregon’s protections won’t keep laborers safe from coronavirus as harvest season ramps up

Oxnard housing facility for farmworkers sees coronavirus outbreak

Into Protecting Florida Farmworkers

High COVID cases among Latinos has health officials worried for farmworkers & Ag industry

Survey says: sustainability and Dirty Dozen feedback

Fri, 13 Nov 2020 06:39:09 GMT

What is your top goal for sustainability?

It is an unfair question, true, but I recently posted this poll question to the LinkedIn Industry Discussion Group:

What is the top sustainability priority for your company?

The poll structure only allows four potential answers and I listed:

Soil health;
Reduce plastic packaging;
Increase water efficiency;
Farmworker well being;

The early voting shows the clear leaders are the “reduction in plastic” (44%) and “farmworker well being” (39%).

As one reader pointed out, all of the above should be part of a sustainability plan, and more besides?

But what is your top goal?

---

We recently added a pop-up survey to our coverage of the Dirty Dozen list published by the Environmental Working Group.

Check it out and add your thoughts!

The Packer’s Fresh Talk

The Packer’s Sustainability Coverage

Tale of the tape: NAFTA era trends in U.S. produce trade

Thu, 22 Sep 2022 02:12:54 GMT

Now that the USMCA has begun, what can we say about the North American Free Trade Agreement?

I have assembled a few charts that show trade trends between the U.S., Canada, and Mexico.

Looking at U.S. fresh produce exports to Mexico, it is easy to see that apples have experienced, by far, the most growth in the last 25 years. U.S. grape and pear exports have also done well.

Berries and lettuce showed the highest value among U.S. fresh produce exports to Canada.

For U.S. imports from Canada, berries, tomatoes and peppers are the headliners.

U.S. imports from Mexico are led by avocados, tomatoes, berries and peppers.

Whither trade associations after COVID?

Fri, 23 Sep 2022 18:07:35 GMT

Churches, corporations, restaurants, schools, and practically every American institution have been challenged by the coronavirus.

Industry associations, as well, have been hurt by the inability to hold in-person events.

No one knows what is around the corner, but we do know that determined and optimistic produce association leaders will make well-considered decisions to strive to serve the needs of their members.

What that will look like isn’t clear.

A report that by the International Congress and Convention Association took a survey of associations around the world and found that associations are considering various options in response to COVID.

A change in membership models or fees was cited by 42% of respondents, according to the survey. Also being looked at are rethinking meetings (47%), online education offerings (43%) and sponsorship strategies.

The report said 60% of association respondents said their members “are telling them that virtual meetings have limiting factors compared to physical options.” Association members polled by the survey said the top things they most like about face-to-face meetings are opportunities to meet new people and to feel a sense of community.

The sophistication of digital events is growing every day, but there are parts of in-person events that can’t be easily replicated.

I posed this question to the LinkedIn Fresh Produce Industry Discussion Group:

How will COVID-19 and the lack of in-person events in 2020 affect the path of industry trade associations going forward?

Here are the responses from 74 votes so far, with a couple of days of voting left:

New funding models required: 19%;
No change - normal in 2021: 5%;
Mergers more likely: 20%; and
Expansion of digital content: 55%

What is your view?

The Packer’s COVID-19 Coverage

The Packer’s Fresh Talk

Another unpredictable year for potatoes

Fri, 23 Sep 2022 18:07:03 GMT

Potato acreage will be lower this year but by how much?

An acreage estimate from the subscription-based North American Potato Market News indicates a fairly significant cut in potato acreage, according to a report in Spudman .

The overall acreage decline is pegged at 6.2% compared with 2019, according to NAPM. The acreage decline is led by Washington, Idaho, and North Dakota, while Colorado is up slightly.

It sounds like the early scuttlebutt is that the processors may have underestimated the rebound associated with French fry demand, which is coming back faster than the processors anticipated. That could set up a competition for potatoes between processors and fresh potato shippers later in the year. Another unpredictable and potentially volatile year for potato prices.

Here are a few charts looking at potato market performance since the beginning of the year.

One chart shows that potato growers have received just 0.45% of the total payments to U.S. growers under the Coronavirus Food Assistance Program.

Twilight time for 2019 apple crop and dawn for 2020 outlook

Fri, 13 Nov 2020 06:42:22 GMT

With new crop harvest beginning and storage supplies dwindling, it is always a market-moving time for the apple crop in August.

The Washington State Tree Fruit Association forecasts the 2020 fresh crop in the state at 134 million 40-pound cartons, nearly the same as the 2019 crop of 133.9 million cartons.

It is a big crop, but industry leaders point out the varieties grown today are diverse and closely matched to consumer preferences. Here are a few charts looking at apple trade and market date for the current season.

“Food traceability list” is high-risk foods by another name

Fri, 13 Nov 2020 06:46:54 GMT

The Food and Drug Administration’s proposed rule is called “Requirements for Additional Traceability Records for Certain Foods.”

In June last year, the Food and Drug Administration agreed in a consent decree to act by September this year to designate a list of high-risk foods and a proposed record-keeping rule for those same foods. The consent decree was an outcome of a lawsuit filed in 2018 against the FDA by consumer groups Center for Food Safety and the Center for Environmental Health. Those groups said the FDA was in clear violation of complying with the Food Safety Modernization Act mandates in publishing the list of high-risk foods.

The list is here at long last, but there is no mention of “high-risk foods” in the title of the proposed rule. The summary of the 199-page document tries to distill the agency’s efforts.

From the summary:

“The Food and Drug Administration (FDA, the Agency, or we) is proposing to establish additional traceability recordkeeping requirements for persons that manufacture, process, pack, or hold foods the Agency has designated for inclusion on the Food Traceability List. The proposed rule would require these entities to establish and maintain records containing information on critical tracking events in the supply chain for these designated foods, such as growing, shipping, receiving, creating, and transforming the foods. The proposed requirements are intended to help the Agency rapidly and effectively identify recipients of foods to prevent or mitigate foodborne illness outbreaks and address credible threats of serious adverse health consequences or death resulting from foods being adulterated or misbranded. We are issuing this proposed rule in accordance with the FDA Food Safety Modernization Act (FSMA).”

The proposed rule will have about a four-month comment period according to the FDA.

So what commodities are on the FDA;s Food Traceability List?

In what the FDA calls a “Tentative Food Traceability List,” the agency lists these items:

Cheeses, other than hard cheeses: Iincludes all soft ripened or semi-soft cheeses, and fresh soft cheeses that are made with pasteurized or unpasteurized milk;
Shell eggs: Shell egg means the egg of the domesticated chicken;
Nut butter: Includes all types of tree nut and peanut butters; does not include soy or seed butters;
Cucumbers: Includes all varieties of cucumbers;
Herbs (fresh): Includes all types of herbs, such as parsley, cilantro, basil;
Leafy greens: Including fresh-cut leafy greens, includes all types of leafy greens, such as lettuce, (e.g., iceberg, leaf and Romaine lettuces), kale, chicory, watercress, chard, arugula, spinach, pak choi, sorrel, collards, and endive;
Melons: Includes all types of melons, such as cantaloupe, honeydew, and watermelon:
Peppers: Includes all varieties of peppers;
Sprouts: Includes all varieties of sprouts;
Tomatoes: Includes all varieties of tomatoes;
Tropical tree fruits Includes all types of tropical tree fruit, such as mango, papaya, mamey, guava, lychee, jackfruit, and starfruit
Fruits and Vegetables (fresh-cut): Includes all types of fresh-cut fruits and vegetables;
Finfish: Includes all finfish species, such as cod, haddock, Alaska pollack, tuna, mahi mahi, mackerel, grouper, barracuda, and salmon; except does not include siluriformes fish, such as catfish;
Crustaceans: Includes all crustacean species, such as shrimp, crab, lobster, and crayfish;
Mollusks, bivalves: Includes all species of bivalve mollusks, such as oysters, clams, and mussels; does not include scallop adductor muscle; and
Ready-to-eat deli salads Includes all types of ready-to-eat deli salads, such as egg salad, potato salad, pasta salad, and seafood salad; does not include meat salads.

Do readers see any surprises with the list? The FDA doesn’t necessarily want to put all the onus on the above commodities. Here is one excerpt from the proposed rule that illustrates their mindset:

“To realize the full benefits of end-to-end traceability, although the proposed rule applies only to foods on the Food Traceability List, we encourage all firms involved in food production, distribution, and sale to consumers to adopt the recordkeeping practices set forth in the proposed rule for all the foods they manufacture, process, pack, and hold. Consistent with FDA’s “New Era of Smarter Food Safety” initiative (Ref. 21), we will pursue ways to help all supply chain entities adopt practices and technologies that will promote rapid and effective tracking and tracing of foods to prevent or mitigate foodborne illness outbreak..”

The industry has been waiting on this shoe to drop for years. Back in May 23, 2014, I wrote the following in a column for The Packer:

“Is there any way to overcome the distinction of being tabbed by the Food and Drug Administration (FDA) as a “high-risk” food?

Perhaps one fanciful marketing tack to consumers would go something like this: “Sure, our much-loved commodity X is called ‘high risk’ by FDA.

But, it should be pointed out, it is also ‘high reward’ as well. Big-time phytonutrients and vitamins are on board, along with the risk of Salmonella and E. coli bacteria.” I kid, of course.

Having your star-performing fruit or veggie tabbed a “high risk” food is absolutely the worst designation possible for a commodity group or shipper. In that context, I was visiting with one industry leader this week, and he mentioned that the comment period closed May 22 on FDA’s request for industry input on the agency’s methodology for its designation of high-risk foods. In its request for comments, FDA pointed out that the Food Safety Modernization Act (FSMA) requires the designation of high-risk foods.

“Specifically, … FSMA requires FDA to designate high-risk foods for which additional record-keeping requirements are appropriate and necessary to protect the public health,” according to the request for comments.

The law also requires FDA to publish the list of such foods on the agency’s website at the time when FDA issues final rules to establish the additional record-keeping requirements for high-risk foods. So it is a double whammy. Yes, you are a high-risk food! And, yes, you have extra record-keeping requirements!

Former FDA official David Acheson, president and chief executive officer of Frankfort, IL-based The Acheson Group LLC, said in February that the biggest challenge FDA may face is the question of whether a high-risk food can ever be classified as a low-risk food. “Can you get fresh produce, or certain aspects of fresh produce, from a high-risk (list) to a lower risk?” he asked. “That’s part of the challenge.”

No one in the food industry, including fresh produce, wants their commodity to be on the list of high-risk foods. FDA plans to publish the list either before or at the same time it issues a proposed rule establishing record-keeping requirements for designated high-risk foods. FDA’s draft approach to identifying high-risk foods uses several criteria to determine a total risk score, according to the notice. However, no commodities were identified as high-risk in FDA’s initial document.

Some of the factors that FDA will weigh as it determines which foods are high-risk include outbreak frequency, illness occurrence, severity of illness, the likelihood of microbial or chemical contamination, potential for the food to support pathogen growth, food consumption patterns and the probability of contamination and steps taken during manufacturing to reduce contamination. FDA also will look at health and economic factors, cost of illness and disabilities expected, according to the notice.”

TK: If the other shoe has dropped, it is only a soft thud. I think the industry is motivated and can handle all this proposed rule will throw at them. More on what the proposed rule’s traceability requirements are found in Chris Koger’s coverage in The Packer .

So far, new traceability proposed rule wins universal acclaim

Fri, 13 Nov 2020 06:51:10 GMT

The industry has yet to weigh in, but public comments are appearing on the Food and Drug Administration’s proposed rule on its designation of high-risk foods for tracing.

The proposed rule is taking comments until Jan. 21.

The FDA said the proposed rule aims to require that entities establish and maintain records containing information on critical tracking events in the supply chain for these designated foods, such as growing, shipping, receiving, creating, and transforming the foods.

According to the agency, the proposed requirements are intended to help the agency “rapidly and effectively identify recipients of foods to prevent or mitigate foodborne illness outbreaks and address credible threats of serious adverse health consequences or death resulting from foods being adulterated or misbranded.

With exclamation points included, here are some excerpts of a few comments submitted so far:

I believe that such regulations will be a great implementation to the supply chain of our foods. While it is great to support local farms and have the ability to drive down to where our food was grown, for many Americans, that is not the case.
The additional traceability recordkeeping seems efficient and necessary in preventing the rise of a foodborne outbreak. Even if an outbreak occurred, the additional recordkeeping would ensure we find the source in little time.
Requiring additional traceability records for certain foods is a great way to ensure that food borne illnesses can be traced back as far as needed to determining when and where an outbreak might have begun.
This proposed rule is a fantastic idea and I am not sure why this has not already been implemented for certain foods! Not only does it track the actual food and supplies, but also what it is in and where it goes. This can help solve issues, if they arise, with recalling foods and make it run much quicker and smoother. This will ultimately save many lives!
This rule is designed very comprehensively in its traceability of not only ingredients, but also products containing those ingredients. The proposed Food Traceability List, if executed properly, could increase the success of food product recalls and decrease the number of people who consume known contaminated food products.
This rule is designed very comprehensively in its traceability of not only ingredients, but also products containing those ingredients. The proposed Food Traceability List, if executed properly, could increase the success of food product recalls and decrease the number of people who consume known contaminated food products.

TK: I’m sure parts of the industry may not like all aspects of the propose rule. At the very least, some can be expected to resist a particular commodity’s inclusion on the “high risk” commodity list. More to come on these comments.

Industry mostly optimistic about 2021

Sat, 28 Nov 2020 23:40:05 GMT

2020 is nearly in the books. What about next year?

A new poll question I posed to the LinkedIn Fresh Produce Industry Discussion Group put it this way:

What will be the number one fresh produce story of 2021?

With 52 responses so far, the results are:

Rapid recovery from pandemic: 62%
Economic slump worsens: 19%
Other 19%

Here is a comment that appears to be representative of the sentiment:

“Hopefully once we have full distribution of a vaccine and we start to see the service sector start to recover. Business travel resume. I think we will see a strong rebound.”

While we wrap up our thoughts about 2020, I have included charts on major commodities to compare this year with 2019 and 2018. On nearly every commodity, you can see the market react at the start of the pandemic.

What kind of supply and market adjustments will we see in 2021?

As another commenter said, “Mass dumpings of produce whilst some hit record profits.”

That may not be far off....

Industry weighs in on changes to come in retailing

Tue, 15 Nov 2022 07:41:24 GMT

The Packer’s 125th-anniversary issue is soon coming, and in a series of blog posts I have described the results of a survey we posted in conjunction with our editorial efforts for the publication.

We have also posted a number of columns contributed by industry leaders about their observations of the industry, along with previously published articles from earlier anniversary issues.

Today, I want to highlight a question from The Packer’s 125th industry survey that asks this:

How will produce retailing change in the next 25 years?

Here are a good many of the responses we received:

The online marketplace is here to stay and fresh produce will be a differentiating factor;
More home delivery, more self service;
Less staffing in the stores;
Technology and digital will change the consumer purchase path;
Trying from the old to the (new) technology but not forgetting where came from;
I think the produce department will always be a place where retailers can set their store apart from the competition. I think retailers will keep finding their marketing plan and will execute on that and whether it is price driven, quality driven or whatever, it will always be with a goal of being the best department in their region;
Large Retailers will finally realize that they can’t sell produce like they sell grocery and that the way to drive stores sales is through the produce departments. Educated produce people, great displays, minimal packaging , value pricing, real sustainability which translates into selling produce with its natural ebbs and flows not a predetermined price. Organics take center stage;
It feels like center store is dying and perishable emphasis will evolve;
Trends, Analysis, and big data will change everything;
No one can predict the future for five years much less 25 years;
We will go back to having produce stands/stores as everything else can be ordered online for home delivery;
Online ordering, home delivery, and the focus everywhere being on reduced labor. Produce sales will continue to grow each year and more and people be having their own back yard “farms” and supporting the neighborhood garden co-ops and local farmers market. It’s all about the perceptions not the reality;
More produce will be grown where it is sold;
I think eventually all produce will be packaged similar to Trader Joe’s;
I expect more retailers to “invest” more in training and development...its the next step in the differentiation evolution. Pricing only gets you so far...how staff are able to relate to consumers inquiries and understanding what they are selling and how to handle it will be paramount to be successful over that time;
Online and delivery will take over, but we in produce need to figure out how we get quality right in this environment;
Far more diverse options -- in-store, online, delivered, picked up, stores, markets, kiosks. Focus on taste and convenience, supported by health and nutrition. Greater differentiation -- compelling reasons to come to Store/Chain X -- maybe exclusivity of brands within particular chains;
Automatized, robotized, impersonal, humanless;
More home delivery and customized consumer experience;
More high end and low-end retailers, ethnic supermarkets;
We’ll see better-educated management teams with a more rounded experience consisting of not only produce marketing but whole-sore experience and rich in team development and HR knowledge;
Will be more like Europe is now;
A more educated consumer will force retailers to provide them with more product information than they do now;
Consumer access to product sources and production methods;
Increased home delivery;
Smaller format & unique experience; and
Retailers will become destinations where ideas are nurtured and food is seen as a way of preventative maintenance for health and wellness.

TK: The collective wisdom of the industry certainly calls for more online business and home delivery, but what form and function retail stores themselves take is open to several interpretations. Will it be a “customized experience” or less staff and impersonal? “ Destination stores” or low-end outlets? Or — as is so often the case with all talk of the future — a good bit of both?

Pick three - changes coming in the next 25 years

Fri, 13 Nov 2020 06:10:22 GMT

The collective wisdom of the industry typically gets it right.

If two heads are better than one, then dozens of opinions are that much superior compared with a solitary response.

The winding path of the fresh produce industry over the past 125 years has been chronicled by The Packer, and we have published editorial content from the coming 125th anniversary edition and also previously published articles from “A Century of Produce,” and The Packer 75th anniversary edition.

Previous blog posts have looked at industry responses The Packer’s 125th anniversary survey , including:

What is the future of produce wholesalers? Survey says..

If only my business had....

Blaming it on the fax; the biggest change agents in the past 25 years

Industry weighs in on changes to come in retailing

What’s the most important industry development?

Today, let’s look at the answers to this query from the survey:

Name the three most significant industry innovations or developments that will mark the next 25 years.

Here are the industry responses:

Compostable/Biodegradable Packaging; Drones/GPS technology in farm practices; hothouse/greenhouse technology;
Artificial intelligence applied to better manage farm resources like irrigation, pesticide application and labor utilization; Decrease in transit times as self driving allows for closer “trains” of vehicles on highways to reduce congestions and lower costs; Better understanding of genetics will increase the consumer desired attributes in fresh produce;
Automation for harvesting, delivery and food safety; Product Innovation - Breeding; Omni-channel and consumer experience;
A. Robotic farming in the tree fruit industry B. Packaging improvements that are truly recyclable C. Driverless trucking in dedicated lanes that helps alleviate driver shortages;
I believe that when organic produce is priced similar to conventional that will be a big leap forward; Plastic packaging becomes obsolete; Autonomous tractors delivering our produce;
Delivery to homes, Schools offering healthy food options,Consumers education;
1. Automation 2. Water Conservation 3. Food safety;
Mechanical harvesting;
Hand held device to determine ripeness and flavor of fruit;
Home shelf-life enhancing containers which will reduce waste and spoilage (this is already available;
Improved food safety controls -Concerns about protecting the environment -Improving freshness and flavor which will stimulate an immediate repeat purchase;
Pay attention to what Rodale has done and will do;
Global tracking packaging on line sales;
ncreased production closer to the end user; Robotics advanced enough to harvest the most delicate crops; Brick and Mortar retail wins out over Ecommerce;
Mechanical harvesting, sustainability and GMO acceptance;
1. Produce fully taking its place in food culture. 2. Ability to grow in diverse, even inhospitable, places (e.g. vertical farming in urban areas). 3. Solving the food safety issues;
Self-check/home delivery, facial recognition for human and things/applications, AI/IoT/5-6G;
AI and Machine learning; More robotics in the field; Utilization of microbiome as a means of utilizing resident beneficials;
Automation;
Continued global infusion of regionally off-season produce; Continued focus of what defines high quality produce; Merging of high tech and human innovation;
Online ordering; consolidation; automation;
1. Enhanced and more thorough inspections of produce at the farms and distribution points. 2. Better interaction between shippers and retailers to reduce market glut, thus reducing market flood and giving the consumer a cheaper product;
Development of improved varieties through genetic modification, improved efficiency of cold chain management, improved trace back methods;
“Good yielding genetics that have flavor; More cpg & fresh collaborations at store level; Packaging improvements on shelf life and flavor quality enhancement through varietal improvements;
Elimination of zero tolerance for pathogens;
Big production in small spaces, breeding innovations and protection of water resources.

TK: The vision for innovations includes hopeful outcomes on automated harvest and driverless freight. Can the next 25 years indeed accomplish such giant leaps? Time will tell, but the industry responses also paint a hopeful picture of innovations in packaging, well-received genetic modification of fresh produce, advances in food safety, and more. I believe the collective industry wisdom is more than wishful thinking, so mark well these responses.

Industry gets an earful on truck detention times

Fri, 23 Sep 2022 20:00:48 GMT

Produce shippers and receivers, cover your ears.

The Federal Motor Carrier Safety Administration is seeking input on truck driver detention times during loading and unloading.

Comments are due Sept. 9 and they are already getting an earful on the topic.

From the request for comments:

“FMCSA requests information on existing or potential sources of data to better understand driver detention times during the loading and unloading of commercial motor vehicles (CMVs) and the potential impact of such delays on roadway safety. A recent study by the U.S. Department of Transportation’s (DOT) Office of Inspector General found that better data are needed to fully understand the issues associated with driver detention.”

That’s the setup. More than 450 have commented so far — many truckers among that number — and there is major blowback on the fresh produce supply chain. Here is one trucker weighing in, with angry capital letters. More comments from truckers follow the first.

Brace yourself...

APPOINTMENTS AT PRODUCE PLACE REALLY MEANS NOTHING BECAUSE I HAVE SIT THERE FOR 12HRS AT PRODUCE FACILITIES. AND IN PRODUCE THESE GUYS WILL HAVE YOU RUNNING ALL OVER THE PLACE 100’S OF MILES PICKING UP. THEY WILL HAVE YOU DRIVE 150 MILES FOR 5 BOXES OF SOMETHING AND YOU PICKED UP THE SAME TYPE OF STUFF AT ANOTHER PLACE WHY NOT GET ALL AT THE OTHER PLACE INSTEAD OF DRIVING 150 MILES FOR 5 BOXES.

I HAVE HAD THAT TO HAPPEN MANY OF TIMES. PRODUCE IS MORE SENSITIVE BECAUSE IT WILL GO BAD FASTER. BUT LAW WILL NOT LET YOU DRIVE LONGER ENOUGH AT A TIME AND MAKE YOU SLEEP FOR 10HRS. HERE IS ANOTHER THING LOADING DRIVER HAS TO BE LISTENING TO BE CALLED TO BACK TO THE DOCK IT MIGHT BE QUICK AND COULD BE HOURS BUT YOU CAN’T SLEEP OR SLEEP PROPERLY. ONCE YOU DO GET LOADED ALL THIS TIME WAITING TO GET LOAD HAS GONE AGAINST A DRIVER THEN DRIVER GETS IN TROUBLE BECAUSE HE IS RUNNING BEHIND. GET LOADED AND HAS TO BE 1000’S MILES AWAY FROM HIS DELIVERY.

MAKING IT TO THE PLACE OF DELIVERY NOW. GUESS WHAT DELIVERY TIMES MEANS NOTHING AGAIN BUT HE’S LATE AND SEE WHAT HAPPENS. YOU GET CHARGED AGAIN WASN’T GIVEN ENOUGH TIME ONCE YOU GOT LOADED TO MAKE DELIVERIES. BUT IT IS ALWAYS DRIVERS FAULT.

TWO THINGS LOADERS AND UNLOADS NEED TO BE HELD RESPONSIBLE FOR NOT GETTING TRUCKS LOADED AND UNLOADING AT THESE PLACE TAKE HOURS TO GET YOU UNLOADED. YOU HAVE A APPOINTMENT BUT LIKE I SAID THEY MEAN NOTHING LIKE A DOCTOR’S OFFICE BOOK 2 TIMES AS MANY TRUCK FOR PICKUP OR DELIVERY AND DRIVERS SIT FOR HOURS AND NOT ABLE TO SLEEP BECAUSE YOU FALL ASLEEP JUST FOR THAT SECOND. BECAUSE YOU DIDN’T HEAR YOU NAME CALLED YOUR SKIP AND A NO SHOW.

ELD OKAY IT RECORDS EVERYTHING SO WHY DICTATE HOW HE IS GOING TO DRIVE. WHY CAN’T WE HAVE A FEW MORE HOURS OF DRIVING. IT SHOWS WHERE YOU HAD 8HRS OF SLEEPING NOT 10HRS.

BUT GETTING HELP WITH THE LOADING AND UNLOADING AT THE PLACES WOULD BE A BIG HELP. YOU WANT A DRIVER TO DO HIS JOB. ENFORCE COMPANIES TO LOAD WITH ENOUGH TIME TO DO WHAT A DRIVER HAS TO DO. DON’T MAKE APPOINTMENT BEFORE PRODUCT IS LOADED. NOT A WEEK BEFORE PRODUCT IS EVEN IN THE PLACES THAT IT IS BEING PICKUP AT.

WE AS DRIVERS NEED HELP ON GETTING LOADED AND UNLOAD WITHIN REASONABLE TIME. NOT 6 AND 8HRS AFTER YOUR APPOINTMENTS AND EVEN ONCE YOU BACK TO THE DOCK IT COULD BE HOURS BEFORE YOU GET LOADED OR UNLOADED.90% OF THE FOLKS MAKING THESE LAWS AND RULE HAVE KNOW IDEA WHAT A DRIVER GOES THOUGH. WHY DON’T YOU COME OUT OF THAT LAD BACK OFFICE MAKING THAT 6 DIGIT FIGURE CHECK AND COME RIDE WITH SOMEONE WHO ONLY MAKES MAYBE 50,000 AND SEE WHAT IT’S LIKE.

Here is another:

The problem as I see it, this industry has cared very little about the drivers. We drive in an industry of hurry up so you can wait. I will probably have to break it down into a few comments as I will probably run out of characters.

Take produce shippers & receivers, for the most part they could care less about the drivers. The only time they care is when the produce doesn’t show up on time at their dock & they have it sold, then its lets claim the driver for being late & the loss of potential profits on the sale of the product, whether or not it was sold. Doesn’t matter that the shipper held the truck for over 10 hours to load it. The truck is late, the receiver has a profit potential. If the truck arrives on time but the product has not been sold, well now we have free cold storage since the product is left on the truck sometimes for as much as 24 hours as has been the case at XXXX in YYY during a major holiday.
Both shippers & receivers as a general rule in the produce world refuse to pay detention, & in the very few instances they have paid, its been a miserable $30.00 per hour.

Again...

For produce it takes 3 to 8 hours to get loaded.You should stop the 14 hour clock in these circumstances as shippers dont care about us!

And....

We sit anywhere from 2 - 19 hours getting loaded and unloaded!! This is absolutely absurd!! The worst places are the produce places in California, AND they give us appointment times, but yet sit waiting for hours on end before and after we get a dock door!!! No thought about the truck drivers hours and time!!!

Finally....

In a free market, forcing shipper and receivers to pay detention would be almost impossible. Trucking companies are their own worst enemy. Most carrier contracts do not have language for detention pay, and if we charged detention, that shipper would quit giving us freight. The only way you are going to help the average truck driver is to rewrite the hours of service laws. The quality of the profession is deteriorating at a fast pace. The regulations that have been imposed are not helping. With the rising cost of insurance and driver retention FMCSA needs to produce some relief to the drivers and carries pretty quick.

TK: What’s the “answer”? More regulatory flexibility with hours of service regs, of course, but it seriously sounds as if produce shippers and receivers need to create scenarios that lead to quicker loading and unloading - and more importantly, better relationships with truckers.

What is the future of produce wholesalers? Survey says..

Fri, 23 Sep 2022 20:51:33 GMT

In anticipation of The Packer’s 125th-anniversary issue , we have enjoyed publishing past anniversary articles from the Century of Produce and also posted industry columns for the 125th-anniversary edition.

In this space, I have also been revealing the results of an industry survey connected with the 125th-anniversary edition.

Check out some of the links:

Industry weighs in on changes to come in retailing

If only my business had...

Blaming it on the fax; the biggest change agents in the past 25 years

What’s the most important industry development?

What consumer trends will drive produce demand for the next 25 years?

Today the industry survey question was this:

How will the role of wholesale markets/wholesalers evolve in the next 25 years?

Here are answers from the industry survey:

The wholesale market will be much more value-added driven;
They will diminish;
Will become more value-added oriented beyond just holding inventory locally for their customers for staple items. Will prove their value by becoming local source (having inventory) of “specialty” items that will multiply as USA becomes more multi-ethnic and those different cuisines become more popular;
Gapping supply line;
I know it was once thought that wholesalers and wholesale marketers could be a thing of the past, but they continue to show their worth every year and many are quite prosperous. As the population continues to grow, these types of business fill a huge need by being able to supply multiple products, sizes, merchandising and more to specific regions - and are able to do on scales both large and small. The terminal markets would be the ideal candidates for large retail chains distribution centers. This would be a great partnership. The retailers get very knowledgeable produce people, something they are lacking and wholesalers get increased traffic and there could be cost savings for both;
It feels to be a dying factor;
There will always be a need. Those wholesalers that are able to adapt with the next big curves will survive;
There will always be a place for wholesalers, as it makes business sense for retailers to always “buy short” and have the ability to fill in with a local supplier;
They will become more and more like growers/shippers, offering long term pricing, giving out ad items etc. Just in time deliveries will be important to buyers who are being evaluated on turns. Smaller cities will see what has happened to retailers, extreme consolidation with only two big companies surviving will the door open for the smaller niche providers;
Their role will be reduced as customers seek more and more local/organic produce, year-round. Starting with BrightFarms, etc.;
Less terminal markets and more direct purchasing from shippers or through buying groups;
I see this segment as surviving through brand development...buying and reselling is not enough. There needs to be an identity that they’re customers can trust in and stand by, otherwise they are only buying a commodity which is easily devalued in the marketplace;
They will be gone, they almost are already, there won’t be much space left for them in continuing improvement of supply chains, and delivery mechanisms;
No business group is more adaptable than wholesalers, especially “terminal” markets. They will ID the trends and capitalize on them as they have been doing for decades;
Individuals and companies would be identified as bundles of commodities and would be marketed to as such according to their perceived budget constraint/ability to pay. An effort toward responsibility shopping and social responsibility, waste reduction, health, and climate change;
Probably be less of a need for them;
Look at the Philly Market. Each Wholesaler has it’s own Supermarket connection Hunts Point has all of the ethnic stores;
Focus more on inventory care, storage and turns;
Will have to be more conscious of food safety;
More and more consolidation of the wholesale industry due to costs will force the larger retailers to become their own wholesalers to ensure supply and control cost. This will unfortunately drive smaller wholesalers out of business;
Adoption of improved technology for quality improvements and risk management;
Less important- most retailers and food service companies want to go direct when ever possible.
They will further consolidate;
They will need to continue to be problem solvers and find ways to stay relevant and valuable. True category management and innovative merchandising concepts for their customers.

TK: Many of the survey responses noted the resiliency of wholesalers and terminal markets. They will adapt and adjust, turn to more value-added, local sourcing, brand development and so on. At the same time, the forces of consolidation continue to bear down on the segment; without responsive change to market forces, the path ahead will be stoney.

To infinity and beyond.. imports growing fast from Peru

Thu, 22 Sep 2022 02:13:50 GMT

In a previous post , I showed charts of fresh fruit and vegetable exports to specific markets.

Today, I’m featuring charts showing top global suppliers of fruits and vegetables to the U.S. Most remarkable, I think, is the rapid ascension of Peru fruit (largely avocados , citrus and grapes ) exports to the U.S.

It is also interesting that fresh and frozen fruit shipments from Mexico have now eclipsed the value of fresh vegetable shipments from the country.

Also, observe that while U.S. exports to China have suffered, Chinese fresh vegetable exports to the U.S. have also fallen on troubled times because of the tariff war between the two countries.

Canada has recorded several years of consistent growth in fresh vegetable shipments to the U.S.

Let them eat cake.. should shippers care more about driver detention?

Fri, 23 Sep 2022 20:00:39 GMT

There continues to be a lot of conversation about driver detention times, and the U.S. Department of Transportation was still taking input on the issue until Sept. 9.

The last time I checked, close to 600 comments had been submitted

Again, some of the comments spoke of no great fondness about the role fresh produce shippers and receivers have on waiting times for trucks at unloading and loading. At the same time, many comments were realistic

One anonymous comment said this:

There are no devices that function to exclusive or accurately record delays in loading, unloading, or dock times. With ELDs companies are able to manually extrapolate how long a truck has been at a shippers location. This is an estimation and not a definitive or practical way of determining detentions.

The ability of a transportation company to understand how long a shipper takes to load and unload is an important part of the pricing and resource utilization decision.

Currently carriers rely on institutional knowledge and experience to make estimates how long shippers will take to load and unload. While many carriers are concerned that their customers will not be responsive to requests to improve detention time, many shippers and receivers are presently unaware of the severity of the issue and may voluntarily act to change the situation when presented with significant data.

Reasonable waiting times for carriers need to take into consideration the commodity that is being transported.

Highly automated warehouses, shipping boxed dry freight can not be compared to a produce shed shipping refrigerated fresh fruit from the field on a 100 degree day. FMCSA would benefit from a study period sampling various shippers to establish a baseline of reasonable times. From this FMCSA and the industry can work towards reducing times.

Carriers who have direct shipper contacts have some clauses related to shipper delays. Because the balance of power is in favor of shippers these are generally non negotiable and often times onerous.

Carriers have very little ability to negotiate these terms, and no general industry standards to compare them to. While some carriers require shippers to compensate for detention time in their contracts, others do not for fear they will lose business. Having more widely accessible public data on detention time, or empowering carriers to take control of their own data to identify detention in their datasets, would enable detention time compensation to be more widely accepted in contract agreements.

TK: Should the industry do more to compensate drivers who have to wait to load and unload? Should there be a public database of operators with the worst wait times? A social media rating? Clearly, more could be done to create incentives for truckers to favor the most responsive operators.

Waste not, want not lessons given here

Tue, 15 Nov 2022 07:41:02 GMT

If you compare a thousand households to mine, I would wager my wife and I don’t waste food at nearly the “average” rate. We are a one-percenter in that way.

My wife has a strategy that pays off in respect to food waste. We will/must literally consume all of our perishable food before she goes shopping. Every last mandarin, every last wrinkled potato, every apple hiding in the crisper door in the fridge - they all must be gone before she replenishes the food stocks. We very rarely throw anything out.

I don’t think most people approach food waste in the same stingy way.

A U.S. Department of Agriculture blog post recently looked at the psychology of food waste

From that post, here are some excerpts:

What’s the psychology behind food waste and what can we do to change our behavior? This interview features insights from Brian Roe, Professor and Faculty Lead at The Ohio State University’s Food Waste Collaborative and Laura Moreno, who received her Ph.D. studying food waste at the University of California, Berkeley.

Nguyen: The USDA estimates that 31 percent of the available food supply is wasted in homes (21 percent) and in consumer-facing businesses (10 percent). Food waste is a big problem and people need to make changes in their personal routines to reduce food waste. How do we approach the problem in a noncritical way?

Moreno: I discard food in my household and I totally feel guilty about it. A characterization of people who waste as lazy, careless, or excessive simplifies the issue to one of personal choices, but research has found it to be much more complex. Decisions and choices made by consumers are influenced by decisions made up and down the food supply chain. For example, people who live alone cite that it is difficult to purchase food in quantities that make sense for them, which leads to regular over-purchasing.

Nguyen: Brian, in your 2015 food waste survey 77 percent of respondents said they felt guilty about wasting food, but 51 percent also said it would be difficult to further reduce household food waste further. If guilt isn’t a big motivator to change behavior, what is?

Roe: An average family can toss food worth thousands of dollars each year, and that could be enough to grab the attention of some households. Wasting food wastes resources, takes up landfill space and causes environmental damages, and this may be the motivating factor for some households to take notice. For others, the idea that excess food could be redirected to those that experience food insecurity might be the factor that spurs their action.

Nguyen: So perhaps we should tailor our messages to different households. What about highlighting the cost of food waste?

Roe: For some, the dollar losses do add up, but there is no check-out ticket in your kitchen each time you toss uneaten food, so the losses are not salient – they don’t slap you in the face like a $1,500 bill at the end of the year would. Also, some steps required to reduce food waste can take time, and time is money. For some, the extra time is simply more precious than the dollars that are lost.

Moreno: It is not always a simple relationship between food and money. Money lost is different than value. For example, sometimes people buy larger quantities of items due to sale or value. Say someone bought a pack of three zucchini when they only needed one because it was the same price as one. They ended up discarding the other two, but didn’t consider it a waste of money because they would have paid that much anyways (this is a true story from my research).

Moreno: People get a lot of benefits from food, one of them has been dubbed “good provider identity.” People express love and care through providing things, including food to their friends, family, and other loved ones. However, for some people, this results in buying more food than needed to make sure people’s cravings are satisfied or that they have access to healthy food. This can lead to food being discarded.

Another example is that people often strive for self-improvement, including eating healthier. A person may shop with the intention of consuming healthier foods, but may not follow through for a variety of reasons including lack of time to cook or feeling stressed and needing comfort food.

Nguyen: How can the message of saving time help people reduce food waste?

Moreno: Saving time is also a complicated issue because some people engage in “time-deepening” activities to save or shift time. Those activities have been linked to instances of over-purchasing and other behaviors that are linked to wasted food.

My one piece of advice isn’t a specific action or behavior that people can undertake. Instead, if you want to reduce how much food you waste, think about what are the most wasted items in your household and why. And, make sure that any changes you want to make align with your household priorities and lifestyle.

Nguyen: Food storage can lead to food waste, and we know that consumers may be confused about date labels on food. Is this a big problem?

Roe: I’ve seen estimates that up to 30 percent of home food waste could be attributed to misunderstanding of date labels and the group ReFED ranks this as one of the most potentially consequential changes in terms of reducing food waste.

We need a campaign that really helps consumers understand that, for most foods, the date is the manufacturer’s best guess for when product quality will begin to degrade, and not related to food safety. Then for those few foods where there is a safety issue (ready-to-eat meats, soft cheeses and a few other items where there is a chance of listeria and similar pathogens but no cooking involved), here the date indicates safety. This is where consistent, universal labeling phrases will be crucial to ensure people put the products in the right category and act accordingly.

Nguyen: What’s the best way to provide consumers with information about food date labeling?

Roe: The presence of a few items with real safety issues makes this a difficult education campaign because you need ‘If A then B, but if C then not B’, which is tougher than some public information campaigns.

Moreno: In terms of messaging about various topics related to reducing wasted food, many people that I have interviewed have said that getting information is the grocery store would be ideal for them because they are already thinking about food and are in the mindset to get that information, whereas, they would be less compelled to engage with the information if they received it via email or another method.

Nguyen: In the Natural Resources Defense Council (NRDC) and The Ohio State University survey, some 76-86 percent of people say they waste less food than the average American. Why do people think they waste less than they do?

Roe: It is a natural tendency to think you are slightly above average when it comes to x, y or z positive activity. Perhaps it is further compounded because very few people (a) know how much food they are wasting and (b) even if they did know this, they don’t have a benchmark against which to compare it.

TK: Oh yes, I know that everybody thinks they are above average when it is comes to food waste (and everything else, am I right?) - note the research that says 76% to 86% of people believe they waste less food than the average American - but I speak the truth. For all those researchers desperately looking for consumers with a handle on preventing food waste, start with Mrs. Karst in Kansas City. There is none better.

Romaine and E. coli is ghost of Thanksgiving past

Fri, 13 Nov 2020 06:20:22 GMT

Beyond the painful toll on those who have been stricken, the tragedy is that the association between romaine lettuce and a foodborne outbreak linked to the E. coli pathogen has become predictable.

Take social media, for example. Here were a few tweets the morning of Nov. 25:
From consumers:

Bro Romaine lettuce tries to murder us every two months;
AGAIN with the romaine?!
How many more e coli romaine lettuce outbreaks do we need to have before we ban romaine all together??

A tweet from a school district:

Due to the recent recall of romaine lettuce in the Salinas California area, PLSD Food Service Department is being proactive and pulling all lettuce and leafy green products Monday and Tuesday, November 25th and 26th. We wish you a safe and happy Thanksgiving holiday!

Here is what the FDA said in a “recommendation” Nov. 22:

FDA, CDC, and state health authorities are investigating an outbreak of illnesses caused by E. coli O157:H7 in the United States. Epidemiologic, laboratory, and traceback evidence indicates that romaine lettuce from the Salinas, California growing region is a likely source of this outbreak. Consumers should not eat romaine lettuce harvested from Salinas, California.

This year’s outbreak is different in one important respect:

New labeling measures are in place to identify where romaine is grown, which in theory should limit the damage to the category while safeguarding the health of consumers.

From The Packer’s coverage in late November last year, when the new labeling system was put in place:

The Food and Drug Administration says romaine lettuce is now safe to eat following the “purge” of product on the market, and will allow supplies to resume, after grower-shippers agreed to new labeling standards that will include where the lettuce is grown.

The agreement, negotiated by romaine grower-shippers, processors and industry associations, will be the new standard for romaine packed in the U.S. The standards follow an E. coli outbreak linked to 43 illnesses in the U.S. and 22 in Canada, as of Nov. 26.

“A number of produce associations also have agreed to support this initiative and are recommending that all industry members throughout the supply chain follow this same labeling program,” according to the United Fresh Produce Association, in an e-mail alert to members Nov. 26 sent several hours before the FDA released a statement lifting the advisory that virtually banned romaine in the U.S.

According to the FDA statement, the new labels are voluntary, but its updated message to consumers suggests it’s against shippers’ interest to forego the label:

“Based on discussions with major producers and distributors, romaine lettuce entering the market will now be labeled with a harvest location and a harvest date,” according to the FDA. “Romaine lettuce entering the market can also be labeled as being hydroponically or greenhouse grown. If it does not have this information, you should not eat or use it.”

However, the labeling of romaine by region may not have the intended effect. In a Nov. 23 media alert, Consumer Reports said this:

The FDA is currently advising consumers to avoid lettuce grown in Salinas, and directing them to read the labels on the lettuce they buy. According to the FDA, lettuce grown in other areas does not appear to be linked to the current outbreak. Hydroponic or greenhouse lettuce also does not seem to be involved. But CR’s experts think it is prudent and less confusing for consumers to avoid romaine altogether, especially because romaine is also sold unpackaged and in restaurants, and customers can’t always be sure of the origin that lettuce. “Much of the romaine lettuce on the market at this time of year is from Salinas,” says James E. Rogers, Ph.D., director of food safety research and testing at Consumer Reports. “Last year, also right before Thanksgiving, there was an E. coli O157:H7 outbreak, and the FDA and the CDC warned people against eating any romaine lettuce and called on stores and restaurants to stop selling it.” When the growing area labels were first introduced, CR food safety experts found that as a warning system for consumers to protect themselves in real time, the program had flaws, and that stronger measures would be needed to keep consumers safe. The system is unrealistic, Rogers says, because it relies on shoppers knowing there has been an outbreak, remembering its origin, and also knowing to look for label. Even so, Rogers says it is safer in the midst of a rapidly changing outbreak to simply forgo all raw romaine for now, especially for people who are vulnerable to food poisoning and its effects, meaning the elderly and very young and pregnant women. “If the package is clearly marked with the growing area and it is not Salinas, or you can find hydroponic or greenhouse-grown romaine—which wouldn’t be affected, that’s fine,” says Rogers. But we think that consumers will not find it so easy to make that determination, and we would rather see them play it safe and choose other types of lettuce right now.”

Consumer Reports also states that what the industry has done is not enough. More from the CR Nov. 23 media alert:

How the romaine involved in this outbreak became contaminated isn’t known, but in past outbreaks, the likely source was irrigation water tainted with E. coli-containing cattle feces from a nearby cattle operation. According to a release issued by the LGMA regarding this outbreak: “A very stringent set of food safety practices is enforced on leafy greens farms through the LGMA system. The role of the LGMA is to verify through government inspection that leafy greens producers are following a set of food safety practices on the farm. Each LGMA member is subject to 4 to 5 on-farm audits each year that are conducted by government officials.” But CR experts note that clearly it isn’t enough. “This latest outbreak is an urgent reminder that the FDA and food companies must take tougher action to protect the public,” said Michael Hansen, Ph.D. senior scientist at Consumer Reports. “The FDA should immediately require growers to abide by strong standards to ensure irrigation water is safe and sanitary. It’s also critical for the FDA to implement mandatory farm-to-fork industry recordkeeping requirements so it can quickly identify the source of foodborne illness outbreaks.” Consumer Reports supports a bill introduced just this week, the Expanded Food Safety Investigation Act, that would give the FDA the power to inspect animal feedlots for pathogens that may be triggering outbreaks.

TK: How will all of this play out in the market? One broker told me Nov. 25 that the demand was still brisk for romaine from Yuma, with naked romaine from $12 to $21 per carton and romaine hearts from $21 to $30.

In another echo of last year, the distinction between a recall notice and consumer advice is critical. Because the FDA issued a consumer recommendation/ advisory not to eat romaine lettuce from Salinas instead of issuing a recall, receivers are not able to get credit from shippers on the romaine they have to dump, the broker said. Receivers are understandably not happy, he said. In fact, no one is happy now.

The Packer’s Chris Koger has been doing a great job covering the story, and here are a few of the links to his coverage:

Ready Pac brand processor recalls products with romaine

Bill seeks FDA access to animal operations during outbreaks

FDA: Do not eat Salinas romaine, E. coli traceback continues

Lettuce market still bullish - for now

Fri, 13 Nov 2020 06:20:13 GMT

How much longer will lettuce prices stay elevated?

Here are a couple of perspectives from foodservice firms who are in the business of providing market intelligence.

The Sysco market report , published Nov. 15, says this under “ Lettuce-leaf alert ”

Volumes remain unsettled as Salinas, lCA gets ready to end for the season. Huron, CA will be winding down next week. Yuma, AZ has started, and Salinas looks to wrap up late-November. Fluctuating and active markets are expected for 3-6 weeks.

Meanwhile, Pro*Act reported Nov. 20 the outlook for leaf lettuce was strong. From the Pro*Act report:

The romaine market continues to be strong. Demand exceeds supplies. Escalated pricing is in effect on all romaine value-added items. Demand exceeds supplies on romaine hearts as well. Low yields in the growing regions are not expected to get better until the month of December. Production in northern California is simply winding down. Weights on romaine are reported between 26-30 pounds. Defects include insect damage, mechanical, slight blister, and mildew. Green and red leaf are having the same defect issues. Supplies are light as well. Weights are reported at 17-21 pounds. Yuma has started to pick up and better supplies are expected next week.

For iceberg lettuce , Pro*Act writes:

Demand exceeds supplies for this commodity. Production in Yuma is moderate to light. Huron and Salinas are winding down production as next week may be the last production days. Santa Maria has minimal production. Common defects that have been reported upon arrivals include mechanical, epidermal peel, misshapen heads, and lightweights. Weights on wrap have been 29-34 pounds. Escalated pricing on value-added lettuce items will start up this week. Expect active markets for the next two weeks with this commodity.

Meanwhile, Markon’s Nov. 24 market report offers this on iceberg lettuce:

The market will continue to fluctuate through November. Production is being moved south to Yuma. Quality is good: epidemal peeling is a slight issue. Head weights are lower than normal.

Markon on romaine:

Prices will fluctuate through the rest of the month. West Coast growers are moving south to Yuma. Quality is good: epidermal peeling is a minor problem.

TK: Best information from leading foodservice market-watchers is that the lettuce market isn’t expected to come down much before early to mid-December. Stay tuned...

USDA study looks at time use and food

Fri, 13 Nov 2020 06:20:39 GMT

How much time do you spend slaving over a hot stove compared with inching through the fast-food drive-through lane for an extra value meal?

While not exactly answering that question, a new U.S. Department of Agriculture Economic Research study seeks to determine how much time we spend with food and food-related activities.

Called “ Food-Related Time Use: Changes and Demographic Differences ” the study is authored by Tobenna Anekwe and Eliana Zeballos and considers how are time use relating to food has changed in the past decade.

From the report:

Patterns in food-related time use during 2014 to 2017 and among demographic subgroups reveal significant changes from the 2004 to 2007 period, including the following for an average day in 2014-17:

Americans spent 64 minutes on eating and drinking as a “primary,” or main, activity in 2014-17, down 4.5% from 67 minutes in 2004-07;
In 2014-17, Americans overall spent 27.5 minutes on food preparation (51.4 minutes among those who actually performed the activity), 7.7 minutes on food-related cleanup (34.1 minutes among those who performed the activity), and 6.3 minutes on grocery shopping (46.0 minutes among those who performed the activity). Time spent on all of these food related activities (prep, cleanup, and grocery shopping) increased since 2004-07.

According to the study, a few notable trends in food-related time use from 2004-07 to 2014-17:

Americans spent 17.5% more time preparing food. Almost every subgroup spent more time preparing food in 2014-17: women, men, Americans aged 15 to 17, 25 to 64, and 65 and older, all household types examined in this study, all races/ethnicities, and all levels of educational attainment. Only Americans aged 18 to 24 years spent less time in food prep;
Americans spent 36.4% more time purchasing non-grocery food (such as from a fast-food restaurant or pizza place);
The share of Americans who purchased non-grocery food increased by 19.5% and their time spent making those purchases increased by 9%; and
By contrast, over the same period, the share of Americans who grocery shopped decreased by 1.4%, but their time spent grocery shopping increased by 6.5%.

TK: For retailers, it has to be concerning that Americans are spending more time making foodservice purchases less time going grocery shopping. Check out many more data points in the full study .

Industry can’t win for losing with trade battles, coronavirus

Fri, 23 Sep 2022 18:11:46 GMT

There is an old saying, “ You can’t win for losing. ”

It means, I think, that you can’t win if you keep losing (see K-State basketball this year), if circumstances always conspire against you.

U.S. fruit exporters must feel that way right now.

Just when China is ready to pare back some of their retaliatory tariffs , the worrisome expanding coronavirus appears to be escalating fear and bringing unwanted trade consequences everywhere.

I asked the LinkedIn Fresh Produce Industry Discussion Group this question:

What kind of impact will the coronavirus disease have on the global produce industry in 2020? What is the best case and worst-case scenario?

Here are excerpts from the discussion, tagged with the initials of commenters:

PM: Best case it ends, Worst case we are all dead and we are produce fertilizer LOL. :);

DC: Love the comment.... but with the low mortality rate of the coronavirus worst case scenario will be 3% of the population dead so is bad if you are in there but not enough to fertilize much produce around the world;

JP: Producers that have a portion to China or a lot to China will have to divert to other markets. Countries that have used China as a supplier may need to find other sources. So, say, Canada will have to buy more garlic from California and Spain and fill in the lack of supply from China. Grapes that normally might go to China will seek space in other markets including the USA. Worse case, if this is the tipping point for China and the go-go years are over, we will see robust Chilean cherry ads from Christmas to St. Valentines Day.

Product in the pipeline, both chill and frozen, has tied up a tremendous amount of refrigerated ocean containers, that are not being emptied and returned. Container yards in China and other far east base ports are filled to capacity with plugged in containers, sailing schedules have been altered and empties are not returning. Like after any disruption, say, because of typhoon, tsunami, earthquake or port strike ...it takes a while to catch up. So best is we catch up in 5-6 weeks and the worse is container supply is not back in place before northern hemisphere exports start.

NB: Well, it looks like it will cause a big hit to CPG sales..... see this article .

ND: WHO has released their concerns for food safety contamination especially where Corona virus is prevalent. Corona Virus lives much longer on surfaces than suspected. It is not just about economy alone, health if definitely the biggest risk read their published update

TKARST: The World Health Organization link above is worth keeping handy, and refers to how the virus is spread (food not shown to be a vehicle of transmission). If panic over coronavirus hits the U.S. in a big way, it certainly will be a test of all our systems, including the perishable supply chain.

Related articles

China to cut tariffs on U.S. fruit but virus worries escalate

Coronavirus disease casts long shadow of uncertainty

Coronavirus disease (COVID-2019) situation reports

Ignore produce at your own peril; another halo for fruits and veggies

Fri, 13 Nov 2020 06:27:32 GMT

The superhero cape continues to look good on fresh produce.

Fresh medical research indicates that fruits and vegetables are among foods that can lower stroke risk.
Medical News Today reports on the study.

The researchers found that a higher intake of either fruit, vegetables, fiber, milk, cheese, or yogurt was associated with a lower risk of ischemic stroke but not with that of hemorrhagic stroke. For every additional 200 grams (g) of fruit and vegetables that a person consumed each day, the relative risk of ischemic stroke was 13% lower, the study found; for each 10 g/day of total dietary fiber, the relative risk was 23% lower.

The report said researchers found citrus fruits, hard fruits (such as apples and pears), bananas, fruiting vegetables, and root vegetables lowered the risk, but that leafy vegetables and cabbages did not.

Find the research abstract at the European Heart Journal . Study authors offered a look at the “why” behind the benefits of fruits and vegetables in reducing stroke:

“Existing prospective evidence generally shows an inverse association between fruit and vegetable consumption and risk of total and ischaemic stroke. Given the strong inverse association of fibre with total and ischaemic stroke observed in the current study and in previous studies, as described below, the association between fruit and vegetables and stroke risk might be partly driven by their fibre content. It has also been suggested that fruit and vegetables could be beneficial because they provide various micronutrients including potassium and folate.”

Consumer media coverage is found at insider.com with the headline “ Oatmeal, apples, and cheese could help protect you from a stroke, but too many eggs may have the opposite effect ”

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Speaking of health and well being, I looked at Google Trends and explored the coronavirus search questions for the past 90 days. More and more Google searches are asking about the coronavirus in the U.S.

Check out the CDC global map on the spread of the virus here and another more dynamic live-tracker map from Johns Hopkins.

Just in: fresh vegetable per capita availability 2019

Fri, 13 Nov 2020 06:30:17 GMT

Relax. Newly updated figures show 2019 per capita statistics for fresh vegetables, and it is good news.

The U.S. Department of Agriculture reported that per capita availability of fresh vegetables increased from 149.2 pounds in 2018 to 153.3 pounds in 2019, while the share of fresh vegetables supplies by imports rose very slightly, from 31.7% to 31.9% in 2019.

Take a look at a few helpful charts that speak to the latest numbers:

Strange days in retail promotions: bagged produce winning

Fri, 23 Sep 2022 18:10:48 GMT

Retail ads for fresh produce are way down because of the COVID-19 pandemic.

And when retailers do promote, they are promoting more bagged options. More importantly, consumers are looking at bagged produce in a new way.

In its April 3 update , the U.S. Department of Agriculture’s report reviewed advertising promotions and prices for specialty crops during the week of March 28 to April 9.

From the report:

“Ad numbers declined slightly again this week due to supply chain disruptions related to COVID-19. Despite that, many retailers tried to keep Easter and Passover demand afloat. Easter favorites such as melons, berries, avocados, pineapples, and asparagus were well advertised. Some stores had special ad sections for Passover that featured beets, honey, grape and apple juices, and nuts. Easter lilies, tulips, candy, toys, and baskets helped brighten up the atmosphere. Some retailers pivoted to creative ways to attract shoppers without offering ad specials. One grocer offered box quantity sales of produce instead of a regular flyer. Another store ran an ad with attractive pictures of their produce offerings, but didn’t attach a price.”

TK: According to the USDA, the total number of retail stores promoting apples and oranges totaled 110,306 in the April 3 report, down from 127,522 stores a year ago.

Retail ads promoting bagged apples and orange packs (in contrast with per pound or each ads) totaled 39,822 for the week of April 3, or about 36% of the total promotions.

That compares with 35,557 ads for bagged apples and oranges the same week last year or about 28% of total promotions.

The USDA reported that 78,471 retail stores promoted potatoes and onions April 3, down from 125,893 stores the same week a year ago.

Bagged promotions of potatoes and onions totaled 53,296 the week of April 3, or about 68% of total promotions. That compares with 92,781 stores promoting bagged potatoes and onions a year ago, which then represented about 73% of promotions.

Beyond retail promotions, the demand side of the equation certainly points to the ascendancy of bags, especially for potatoes.

The f.o.b. price trends for potatoes show increasing value for bagged potatoes but sliding prices for large-count carton bulk potatoes typically used in foodservice. While cartons of five 10-pound bagged potatoes in Idaho increased from $5.50 to $9.50 over the past month, the f.o.b. price Idaho count cartons 50 size potatoes slid from $21 per carton to $12 per carton.

From the April 1 Market Report from Pro*Act , some outlook on the market:

“Consumer bags along with carton 90 count and smaller remain in high demand with the current retail surge across the nation. Retail demand has slowed but remains active with consumer bags extremely scarce. Larger size 40 count through 80 count markets have shown decreases in pricing over the last couple of weeks due to light demand. As we head into this week and next we will see a continued downward market trend on larger size cartons with active consumer bag pricing. Washington, Colorado, and Wisconsin will follow Idaho markets with a push to move carton product due to the lack of foodservice demand. Lots will continue to show occasional peepers, soft rot, shoulder/internal bruising.”

TK: It seems retailers, when they do promote, are leaning a little heavier on bagged fruits and vegetables.

That could be because retailers sense consumers want to reduce their trips to the supermarket, meaning they want to pick up more produce per visit. And an 8-pound bag of navel oranges is easier to snatch up than putting eight oranges sold bulk in a plastic produce bag.

There could be a few consumers that also want to avoid naked or bulk produce, thinking that such loose produce could have been handled by shoppers who are infected by the coronavirus.

Others want to stretch their food dollar, and buying bagged over bulk will typically deliver on that.

How will long will “strange time” continue? The answer to that is wrapped up in the riddle of how soon restaurants will return in full force. With the economy stumbling, restaurants shuttered and consumers looking to avoid trips to the store, bagged produce is where the action is right now.

Related articles

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