WATSONVILLE, CA - A Northern California strawberry grower has been handed a $2.4 million labor fine, as well as an order to repay Mexican workers for demanded kickbacks and costs of living.
Gonzalo Fernandez, operator of Fernandez Farms Inc., was charged with charging workers hired under the federally supervised H-2A work visa program, which calls for employers to cover travel costs and housing.
The U.S. Department of Labor stated that Fernandez demanded payments of more than $1,600 apiece from several hundred foreign workers during the 2010 to 2012 picking seasons, according to the Los Angeles Times.
As ruled by Administrative Law Judge Richard Clark, Fernandez must reimburse more than 400 workers about $1.29 million, as well as an additional fine of $1.1 million.
“If you really need foreign workers, this is a cost you should be bearing,” Abigail Daquiz, Senior Trial Attorney in the Labor Department’s Seattle office, who worked on the case, said. “We’re finding that in lots of different ways, employees are having to pay that back, being forced to kick it back. [In this case] they would go and cash their paycheck at the cafeteria right on site, and they would get in another line and pay back $100 or $200 a week until their debt was paid.”
Fernandez Farms, which the report noted filed for bankruptcy protection in 2013, denied accepting or demanding kickbacks in court, argued that some of the workers were “domestic workers” not entitled to the H-2A minimum wages, and contested the amount of wages owed.
Additional charges brought against Fernandez included:
- Turning away five local workers in violation of the program
- Failure to pay proper piece rates and overtime for berries picked
- Intimidation of those who complained about conditions
- Coercion of workers to give false or misleading statements, or otherwise impeding the investigation
Fernandez and his attorneys were not available for comment, according to the Los Angeles Times, but he has been barred from participating in the federal program for three years.
BENTONVILLE, AR – As the company looks to further strategies and streamlined services, Walmart has announced that the retailer will be cutting 7,000 positions across the United States.
The company asserted in a statement that the cuts will affect accounting and invoicing jobs as Walmart looks to implement a more modernized system for bookkeeping and tracking inventory.
"We've seen some pretty strong success on the pilot and have decided to roll it out across all of our U.S. stores," Walmart spokesperson Deisha Galberth said of the accounting and invoicing shifts, according to USA Today. This strategy was first tested at 500 stores earlier this summer.
These changes will involve the company moving some of its operations from its stores back to the Walmart's headquarters, as well as utilizing an automated cash recycling machine which Galberth described as “quicker, safer, and more secure.”
For those affected by the cuts, Walmart expects most employees to transition into other positions in the company rather than leave altogether.
These new roles are expected to be more in line with CEO Douglas McMillion’s prolonged focus on boosting customer service by putting more boots on store floors, with additional positions available through Walmart’s new e-commerce endeavors.
Walmart stated that some of the transitioned roles will provide its employees with room for advancement and higher pay, like becoming an Assistant Store Manager, while others may pay less than their current positions.
The prospective cuts and transitions are projected to extend into next year. Walmart employs approximately 1.5 million people throughout the U.S.
As we previously reported, Walmart recently released strong results for its second quarter of 2016, due in part to its new expansions in online grocery and curbside pick-up.
What will be next in Walmart's continued strategy shifts within the competitive buy-side industry? AndNowUKnow will have the latest as more plans are released.
LOS ANGELES, CA - Valley Fruit and Produce announced the hiring of fresh produce veteran Bill Slattery to help lead its procurement team in the Valley Fresh Produce Division.
"Over my career, Valley Fruit and Produce has stood out in their professionalism and their strategies to overcome the challenges that are occurring daily in the continuous, rapid-developing world of fresh produce," Slattery said, according to a press release. "I am excited to be in an organization that continued to adapt and learn, and puts that knowledge into action quickly for the benefit of their clients and customers."
Though new to the team, Bill and the company are not unfamiliar. Valley Fruit noted that it has had a long, productive relationship with him as a supplier, and expressed confidence in this new step with Bill as its new Procurement Manager.
"Bill's FOB experience and customer portfolio will further Valley's strategic growth plan by extending our distribution reach nationally," said Caroline (Carrie) La Londe, Valley's Chief Operating Officer. "Bill's experience in FOB sales will also aid our as we further develop our global sourcing network."
As a 30-year veteran in the fresh produce industry, Slattery brings his experience in sales working with high quality growers and packers, such as Kingsburg Orchards, Red Blossom Farms, Madera Persimmon Growers, and Valley Fresh Produce in Watsonville.
As companies throughout the industry continue to boost their growth and foundations with strategic appointments, AndNowUKnow will continue to report on new hires and promotions.
YAKIMA, WA - Starting this week, apple fans around the nation will have a shot at winning $1,000 as Domex Superfresh Growers® is launching a new “All About Apples” photo sweepstakes. Aimed at driving fresh apple consumption, the contest will launch on their Instagram, Facebook, Twitter and consumer blog.
“We are seeing great benefit with our online consumer-focused contests,” said Mike Preacher, Director of Marketing & Customer Relations for Domex, according to a press release. “Social media promotions like the ‘All About Apples Sweepstakes’ creates an online dialogue with our consumers that help us stay updated on the pulse of our online community. This contest generates excitement in the apple category, helping increase sales for our retail partners.”
Superfresh Growers has updated their digital social content kit with new health-focused graphics, pre-written tweets, orchard photography, and mouth-watering apple recipes. The content kit has been designed to easily plug in to a retailer’s social content calendar and workflow, saving their Social Community Manager’s time and resources.
“Our retail partners have found great success with our content kits,” said Preacher. “We are also able to customize the kits to the needs and goals our retail partners, optimizing their social media presence.”
To enter, consumers are asked to upload an original photo to Twitter, Facebook, Instagram or Pinterest showing off how Superfresh apples are a part of their back-to-school and fall activities. The image caption should include the Superfresh hashtag #EatApples and the company should be tagged as @Superfreshgrowers. The photo sharing sweepstakes will start September 1, 2016 and end October 31, 2016.
Through a random drawing held in early November, three winners will be announced. One Grand Prize winner will receive a gift card for $1,000, one First Prize winner will receive a gift card for $500, and one Second Prize winner shall receive a gift card for $250.
Retailers who would like to find out more about the “All About Apples” sweepstakes and apple social media content kits should contact Mike Preacher, Director of Marketing & Customer Relations at [email protected].
Stay tuned with AndNowUKnow for all the latest in fresh produce industry marketing innovations!
SALINAS, CA - Mother Nature has been calm enough to balance the broccoli market in California, but we could soon see a surge in higher prices due to Mexico weather affecting supply, according to Church Brothers Farms’ Commodity Manager, Jason Lathos.
“The weather has had a big impact recently in central Mexico,” Jason tells me, explaining that while the mild weather in California made for a flatter market the last month or so, lighter volumes always seem to perk the market up.
“Last Saturday there was a hail storm that went through the growing region, and we are being told that this will impact supplies for both the short term as well as plantings that are currently in the process for mid-October and early November. The market has already firmed up and quality reports are to being conducted to see how the rain will affect quality the next few weeks.”
Up in California, Salinas and Santa Maria’s mild weather has helped see signs that the market is getting better, Jason says, adding more high quality broccoli.
According to Church Brothers, supplies on broccoli is more manageable in both Salinas and Santa Maria Valleys, with lighter supplies than previous weeks. The company reports current FOB’s are $7.25 to $8.25 on bunched; $8.25 to $9.25 on domestic crowns and $9.25 to $10.25 on Asian crowns.
“We have also had a nice increase in demand for processed broccoli due to the increase in school business. Increased pounds for value-added always decreases cartons,” Jason tells me.
He adds that keeping an eye on the weather is critical to forecast the market. “With hurricane activity being forecasted for both the East and West coast we could see an even higher broccoli market for the month of September.”
AndNowUKnow will continue to keep you up to date on the latest in this and other changing markets in the industry.
MOLINE, IL – As John Deere pursues its planned purchase of the Monsanto-owned farm equipment business Precision Planting, the U.S. Justice Department (U.S. DoJ) has filed suit against the company in U.S. courts to prevent the sale.
The sale has been planned since November of last year, with Monsanto agreeing to sell its business to John Deere. The U.S. DoJ stated that this sale could make it more expensive for farmers to access and utilize precision planting technology.
"By offering farmers high-speed precision planting retrofit kits at a fraction of the cost of a new planter, Precision Planting posed a formidable challenge to Deere and its profitable sales of new planters," the Justice Department said in its complaint and request for courts to block the sale.
Precision Planting makes components for precision planters, including technology to retrofit older planters and manufacturers. The DoJ, according to Reuters, is reportedly concerned about the combination of John Deere selling both the machines themselves, as well as the technology to create them.
"Precision Planting has been a key innovator in high-speed precision planting and Deere’s only significant competitor in developing and selling these technologies," said Renata Hesse, the Acting Assistant Attorney General of the Justice Department’s Antitrust Division in a press release.
The DoJ estimated that together, John Deere and Precision Planting make up 86 percent of the market, at a minimum, with the estimated transaction price at around $190 million.
Monsanto’s Precision Planting business is being sold but its Climate Corporation unit. The Monsanto subsidiary stated that it believes the sale is good for the farming industry, with both companies looking to give farmers incentive through the sale to upgrade their equipment and services.
"This transaction will create value by delivering broader access to precision equipment advancements that help farmers increase yield and productivity," Climate Corporation said.
John Deere said in a press release that it believes the DoJ’s concerns about the competitive impacts of the transaction are misguided, and intends to fight the lawsuit. John Deere stated that it will remain its focus on helping American farmers up productivity and efficiency to become globally competitive.
This transaction, if approved by the courts, would mark the second precision planting purchase for John Deere within the past year. In February, John Deere completed its acquisition of Monosem, another precision planting company.
Retuers noted that after the suit was filed yesterday, John Deere's share price dropped 1.4 percent to close at $84.55 on Wednesday, with Monsanto's share falling 0.9 percent to close at $106.50.
Will U.S. courts side with the Department of Justice and block the sale? Or will John Deere continue its proposed purchase of the farming company? AndNowUKnow will keep you up-to-the-minute as the deal unfolds.
FLORIDA - It looks as though Hurricane Hermine, the graduate of this week’s Tropical Depression 9, could be the first to make landfall in Florida in eleven years.
As we previously reported, the state has seen several inches of rain thanks to the storms last weekend and beginning of this week. Now Hurricane Hermine is projected to push up the Eastern Seaboard, beyond the southern U.S. in time for Labor Day weekend, according to AccuWeather.
"With a storm of this nature, flooding rainfall can occur, regardless of prior dryness," AccuWeather Chief Meteorologist Elliot Abrams said in the report. "A track over land or right along the coast could translate to more of a heavy rain event, while a track just offshore could mean more of a wind hazard for the mid-Atlantic."
Current cautions include enough rain and wind to be on watch for flash flooding, downed tree limbs, and sporadic power outages.
It looks like Saturday conditions will be rainy, with the storm strengthening through Sunday.
Hermine is looking to climb the coast, including over parts of Virginia, Maryland, Pennsylvania, and New York, as well as much of Delaware and New Jersey. The storm may possibly stall on Sunday, depending on the severity and location of flooding and damaging winds, AccuWeather said.
AndNowUKnow will continue to track the hurricane and possible affects on transportation within the industry.
WATSONVILLE, CA - In the midst of a tense political climate, California Giant Berry Farms is hoping to inject some light-heartedness through a marketing campaign leading up to the 2016 Presidential Election. Launching this week, the company will use a ‘color coded’ campaign utilizing strawberries and blueberries, encouraging shoppers to vote for their preferred ‘berry’ candidate.
“Ultimately the promotion is focused on California Giant berries and building a stronger network of influencers and shopper contacts that help to continually improve ongoing relevant communication, while having a little fun along the way,” said Cindy Jewell, VP of Marketing at California Giant, according to a press release.
The two-month promotion and sweepstakes is geared to spotlight the continued availability of fresh berries into fall and winter months. The sweepstakes will engage shoppers while collecting additional data as they enter, capitalizing on the buzz and interest in the election while enhancing relationships with consumers. The company has been building a database, and will use the information collected during the promotion to fill data gaps for brand loyalists and attract new followers.
The promotion will result in multiple winners, and social media platforms will engage various audiences throughout the promotion beginning September 1, 2016. The California Giant staff is looking forward to having fun with unique and trending hashtags, along with topics associated with the 2016 Presidential election. Shoppers can enter to win one of several cash prizes offered via www.calgiant.com and all California Giant social platforms.
Keep checking AndNowUKnow for all the latest innovations in fresh produce industry marketing.
CHICAGO, IL - This year’s Apple Man of the Year has been named, with Mike Wade, General Manager of Columbia Fruit Packers, a Co-Owner of CMI, coming out on top. The company says Wade was selected based on his honesty, integrity, and willingness to invest in longterm trends.
“Mike has been out in front of the industry in identifying and producing new, high-flavor apples,” said Bob Mast, President of CMI. “Mike saw the opportunity to provide great tasting apples to consumers. He worked with key members of his staff to literally search the world for new apple innovations like KIKU® and Kanzi®. His early adoption of organic production enabled our Daisy Girl™ brand to become a leading organic apple brand nationally. The entire CMI organization is delighted for Mike. ”
Wade is the leader of Columbia Fruit Packers, an apple, cherry and organic growing and packing company started over 60 years ago by his father,
Jim Wade. According to a press release, Columbia Fruit Packers is internationally recognized for its leadership in bringing KIKU® and Kanzi® brand apples to the United States, as well as being an early leader in organic apple production. Columbia Fruit Packers now manages its own apple and cherry orchards, while providing packing and storage services for approximately 100 local growers.
Over the years, Wade has shown a strong participation in the apple industry, serving as the Chairman of U.S. Apple Association, Chairman of the Northwest Horticultural Council, and as a board member on both the Washington State Fruit Commission and Northwest Fruit Exporters. Columbia Fruit Packers has also been responsible for contributing to Washington Apple Education Foundation scholarships that help developing industry leaders of the future.
“Kanzi® generated the fastest dollar growth rate of any apple in the top 25 in U.S. supermarket sales last year,” continued Mast, who says Wade has been an asset to this growth. “Mike’s leadership and vision has been a driver behind the success of CMI. Mike has many skills, but his vision in identifying great, new apples to bring to market is second to none.”
Announced on August 26, 2016, Mike was presented with the 2016 Apple Man of the Year award at the US Apple Association Annual Outlook conference in Chicago.
Congratulations to both Wade and to CMI, and here’s to another year of excellent apple growing!
SALINAS, CA - Taylor Farms has announced a new addition in response to consumer demand for healthy, delicious, and convenient meals.
The company has launched a new line of vegetable Stir Fry Kits, consisting of four distinctive recipes, just weeks after the debut of its innovative Organic Chopped Salad Blends.
“Our new vegetable Stir Fry Kits address today’s consumer needs for fresh, easy-to-create vegetable based meal options,” Bryan Jaynes, Vice President of Product Development of Taylor Farms Retail, said, according to a press release. “Similar to our innovative Chopped Salad Kits, the Stir Fry Kits are positioned to grow category sales nationwide.”
Featuring pre-washed and sliced vegetable blends, with on-trend ingredients like bok choy, kale, and Brussels sprouts, the four Stir Fry Kits include:
- Teriyaki (12.5 oz.): Brussels Sprouts, Broccoli, Carrots, Kale, Snow Peas, Red Cabbage, Broccoli Shred with Teriyaki Sauce
- Ginger Garlic (14.0 oz.): Bok Choy, Brussels Sprouts, Broccoli, Carrots, Kale, Snow Peas, Green Cabbage with Ginger Garlic sauce
- Sesame Chili (13.5 oz.): Bok Choy, Green Cabbage, Snow Peas, Broccoli with Sesame Chili sauce
- Orange (12.0 oz.): Brussels Sprouts, Broccoli, Carrots, Kale, Snow Peas with Orange sauce
Each kit takes five minutes to cook, paired with a tasty sauce. At a suggested retail price of $3.99, Taylor Farms Stir Fry Kits are available now at multiple retailers nationwide.