SACRAMENTO, CA - It’s the time of year again where California fruit suppliers and legislators from around the state descend upon Sacramento to discuss the year’s most pressing issues, and with AndNowUKnow headquarters located just down the street from the Capitol, we just had to see the action for ourselves.
From March 1st through the 2nd, Association President Barry Bedwell hosted government officials for the annual California Fresh Fruit Association’s (CFFA) Government Relations Trip, filled with meetings with some of the state’s agriculture industry’s biggest players.
“CFFA’s Annual Government Relations Trip allows a small, highly involved portion of our membership to closely interact with selected regulators and elected officials to discuss issues in depth,” shared Bedwell in a statement. “In addition, strong relationships are developed and strengthened for the benefit of the Association and California Agriculture.”
For the first day of the trip, Bedwell and association members met with several state regulatory departments, including the Department of Pesticide Regulation, Department of Water Resources, and the Agriculture Labor Relations Board, rounding the day out with the CFFA Annual Government Relations Reception & Dinner at Sacramento hot spot and seasonal food advocate, Esquire Grill. There, we were able to discuss California agriculture and the growing importance of issues like the state’s drought, labor issues, food safety, health care mandates, and invasive pests with members of the Assembly Committee on Agriculture like Jacqui Irwin and State Senators like Environmental Quality Committee Chair Bob Wieckowski.
Day two of the trip included a presentation by guest speaker and State Treasurer John Chiang, followed by meetings in the Capitol with Senators Berryhill, Glazer, and Fuller, as well as Assembly Members Gray and Mayes.
It’s no doubt the two-day trip catalyzed many fruitful conversations between California fruit industry members and the state’s most crucial government officials—I know it did for me. Stay tuned as we continue to cover the CFFA’s advocacy of agriculture’s most pressing issues.
NEWARK, DE – After 10 long, successful years of attracting, developing, and retaining talent for the produce and floral industries, the PMA Foundation for Industry Talent is now rebranding as the Center for Growing Talent by PMA, setting itself up for an even brighter future ahead.
The announcement was made to celebrate the group’s 10th anniversary.
“The PMA Foundation for Industry Talent is celebrating its 10th anniversary this year. Well, we aren’t the types to celebrate and eat cake. We have spent the last several months in thoroughly examining our past work,” Dick Spezzano, Chairman of Center for Growing Talent by PMA and President of Spezzano Consulting Service, Inc. “Our goal is to remake ourselves in the best form for the next ten years.”
“We celebrate our 10th anniversary this year, and that milestone demanded introspection to ensure we’re best positioned for now the next 10 years and beyond,” said Leonard Batti, Chair-Elect of Center for Growing Talent by PMA and President of Taylor Farms, Florida, Inc. “As a result, we’re stepping up our programming so that we can best serve our industry into the future. We also hope that the industry will better understand why we need their financial support.”
Over the past 10 years, the foundation has reached nearly 800 students, 65 percent of whom have come to work in the produce and floral industries, Margi Prueitt, Executive Director of the Center for Growing Talent by PMA, said in a press release. But there’s still plenty more opportunities for growth ahead. The Center for Growing Talent by PMA is leaning into the industry’s most important priorities with these changes:
The Center for Growing Talent by PMA:
- is scaling up its Attract strategy, to reach more universities and students;
- is calibrating its Develop strategy, so its leadership programs best meet the mission and are sustainable;
- will position itself to help companies understand what it takes to keep and advance the right people by defining its Retain strategy
The Center for Growing Talent by PMA is kicking off a fun social media initiative called the “Take the 10 for Talent Challenge,” which asks 10,000 industry members to demonstrate their commitment to talent by contributing $10 online at www.GrowingTalentbypma.org/give10 or by texting 10forTalent to 41444. Then, post the news that you’ve taken the challenge on Facebook, LinkedIn, or Twitter using the hashtag #10forTalent along with a picture of you wearing orange.
Those who submit photos via www.GrowingTalentbypma.org/10-for-talent can win a free registration for one of the group’s programs. Finally, sign up to be a fundraiser and invite 10 colleagues to accept the challenge too.
“If you aren’t familiar with what Center for Growing Talent by PMA can do for you or your business, here’s your invitation to learn more,” said Bryan Silbermann, PMA CEO. “We can help your business not only survive, but thrive in our industry’s increasingly complex future.”
The Center for Growing Talent by PMA says that this rebranding signifies a huge commitment and hopes that you and other industry colleagues will take the challenge to fund and accelerate its mission to grow the people across the produce and floral industries.
PHARR, TX - The always tumultuous love story between fresh produce shipments and drug smuggling has just added a new chapter—$550,000 worth of alleged methamphetamine has been found in a commercial shipment of fresh strawberries.
“This was a great interception of hard narcotics that our officers conducted at the cargo facility,” explained Port Director Efrain Solis Jr., Hidalgo/Pharr/Anzalduas Port of Entry in a statement. “Every seizure of narcotics is significant and treated with the same priority, no matter the quantity.”
On February 27, officers at the U.S. Customs and Border Protection (CBP) Office at the Pharr International Bridge encountered a 39-year-old man from Reynosa, Tamaulipas, Mexico, driving a tractor/trailer with a commercial shipment of fresh produce. After referring the truck for secondary inspection, the Border patrol office says it had to use “all available tools and resources” to discover two packages of alleged methamphetamine hidden within the truck. According to a press release, CBP removed and seized the nearly 28 pounds of the drug as well as the 2013 Freightliner tractor.
The CBP arrested the truck driver and released him to the custody of Homeland Security Investigations (HSI) agents for further investigation.
CINCINNATI, OH - Kroger Co. announced the results for its last quarter of 2015, reflecting fourth quarter net earnings of $0.57 per diluted share, as well as identical supermarket sales growth of 3.9%, excluding fuel.
But while EPS did beat expectations by $0.03, the retailer’s $26.17 billion revenue was short of expectations, coming out to a 3.8% increase year-over-year but resulting in a sudden drop in the company’s shares this morning by as much as 9%.
Despite missing on those projections, however, Chairman and CEO Rodney McMullen viewed the year as a positive one for Kroger, fourth quarter included, in the financial report.
"2015 was an outstanding year for Kroger. We delivered on our performance targets, grew market share, created 9,000 new jobs, supported our communities, and continued to expand our use of technology to drive growth. And we're not done,” McMullen said, according to a press release. “In 2016, we will continue making a difference for our customers and associates, growing our business, and delivering value for shareholders."
Details for the fourth quarter of 2015 included:
- Total sales, excluding fuel, increased 6.5% in the fourth quarter over the same period last year.
- Excluding Roundy's, total sales without fuel increased 4.4% in the fourth quarter.
- Total sales including fuel and Roundy's increased 3.8% to $26.2 billion in the fourth quarter compared to $25.2 billion for the same period last year.
- Net earnings for the fourth quarter totaled $559 million, or $0.57 per diluted share.
Kroger’s capital investments, excluding mergers, acquisitions, and purchases of leased facilities, totaled $3.3 billion for the year, compared to $2.8 billion in 2014, while it was able to return more than $1.1 billion to shareholders through share buybacks and dividends in 2015, according to the release.
Looking forward, the retailer stated that its long-term strategy includes driving growth and returning capital to its shareholder through its “financial flexibility.” Current anticipations are that identical supermarket sales growth, excluding fuel, will be approximately 2.5% to 3.5% for 2016, while full-year net earnings for 2016 are expected to range from $2.19 to $2.28 per diluted share.
The retailer noted that actual fuel margins will be the primary determination of where it falls, and is currently expecting those to be at or slightly below the five-year average, with continued volatility.
As for capital investments, excluding mergers, acquisitions and purchases of leased facilities, Kroger currently projects to be in the $4.1 to $4.4 billion range for 2016.
AndNowUKnow will continue to follow Kroger and other retail news pertinent to the produce industry.
UNITED STATES - “It’s a big job. No, it’s a huge job,” LGMA’s CEO Scott Horsfall says, as we look toward the future of food safety in the nation’s farming industry. With the FDA’s final Produce Rule going into effect, the LGMA sat down with California Department of Food and Agriculture Secretary, Karen Ross, to discuss the implementation and impact of U.S. standards under the FSMA for the growing, harvesting, packing, and holding of produce for human consumption.
“Secretary Ross shared with us her hope that FDA will not attempt to ‘reinvent the wheel’ but that the administration will align with what is already in existence—processes that have shown to result in strong compliance in the state of California,” Horsfall adds.
With the rule published late last year, the work now begins as states begin to put these new laws into effect. As Secretary Ross looks toward the next round of dialogue with the FDA she reflects on the new Produce Rule and what is to come.
“It is a program that was really created at a time of crisis, but it was a very smart program to put together by partnering with government to really make sure that we are putting together a program that is effective and has the highest standards possible,” Secretary Ross says. “This program relies on the oversight of the Department of Food and Agriculture and government auditors who are certified by the U.S. Department of Food and Agriculture. It is a very strong and effective program. I am very proud of what the industry did by sitting down and partnering with government and I am sometimes overwhelmed by their commitment to the rigor of the audit process that we have the metrics that are in place.”
To see the full interview with Secretary Ross on the Food Safety Dialogue please view below:
In a recent POLITICO article, cited by LGMA, it was estimated that in California alone there are more than 23,000 produce farms that will need to be brought into compliance under new federal laws.
Secretary Ross notes that, “One of our first orders of business is to engage with the Food and Drug Administration, go through all the elements of the Leafy Green Marketing Agreement, and ask that the Food and Drug Administration accept the metrics of that program as compliant with the rule, and that all of those industry participants who go through that audit process- as long as they are in good standing in that audit process- that they are deemed to be in full compliance with the Food and Drug Administration requirements.”
Currently on a national level, the costs for government agencies to verify that these farms are complying with the new rules are currently unknown, according to LGMA.
“But it is possible that the expenses will far exceed what is currently appropriated by Congress,” Horsfall adds. “The FDA is turning to state departments of food and agriculture to assist in getting this difficult job done. For the leafy greens grown in California and Arizona, our LGMA system works to verify through mandatory government inspection that a set of science-based food safety practices are being following on leafy greens farms. These practices have been compared to the new Produce Rule and in almost every area, the LGMA metrics meet or exceed the requirements under that rule.”
LGMA members are audited approximately five times per year by qualified and trained government auditors, according to Horsfall, members must 100 percent compliant with all 180 checkpoints which comprise each LGMA audit. The system is also paid for through LGMA assessments without the need for additional taxpayer dollars.
The beliefs of the LGMA and Secretary Ross are one in the same, that the LGMA program will allow both FDA and Ross’ department to demonstrate early success toward the goal of full implementation of FSMA.
GRAND RAPIDS, MI - Meijer has revealed its intention to invest more than $400 million to both build new stores and remodels across its six-state footprint for 2016.
Construction of nine new Meijer supercenters and 32 different remodel projects will be included in the investment, the company says. Michigan, Indiana, Illinois, Kentucky, and Wisconsin will each see a new Meijer supercenters at a later date this year, while the remodels have either already been underway or are scheduled to begin soon.
"We are pleased to continue to grow and invest in the Midwest communities that have supported us for so long," shared Chief Executive Officer Hank Meijer in a press release. "By keeping prices low and ensuring a great shopping environment, we are keeping our promise to our customers that we will provide the best one-stop shopping solution."
Each new Meijer store will require as many as 300 full- and part-time jobs, making for a total of 3,000 new employees as the result of the new investment.
The nine Meijer supercenters scheduled for 2016 include the following locations:
- Owensboro, KY
- Evansville, IN
- Indianapolis, IN
- Round Lake Beach, IL
- Flossmoor, IL
- Sturgis, MI
- Flat Rock, MI
- Sussex, WI
- Waukesha, WI
In addition to the new supercenters, Meijer shared that the company is now "aggressively remodeling" stores in areas it calls its “key markets.” These areas include Detroit, Indianapolis, and Fort Wayne. Southeastern Michigan will see a total of 12 supercenter remodels, Indianapolis will see three, and Fort Wayne will have two. Meijer's store in Burton, MI, will also be included in the project.
"We will continue our process of slow, steady growth," the Meijer CEO continued. "This plan has allowed us to remain focused on our customers and team members, while growing our business and ensuring we continue to innovate in the marketplace."
While the depth of each store’s remodel will be based upon several factors, each will include store enhancements like improved layouts, expanded grocery/health and beauty sections, and revamped lighting, heating, refrigeration, parking lots, and energy efficient technologies.
UNITED STATES – Suppliers are remaining steadfast in the face of a strong onion market with pricing expected to increase as the storage deal continues to deplete their available volumes. Last year’s summer heat wave dealt a challenging season for many growers across the country, but all are determined to continue delivering on quality through and through.
Growers tell us that current supplies are coming from Washington, Oregon, Idaho, New York, California, and Mexico, but the overall message seems to be consistent across the board.
“Supplies are on the lower end of the spectrum, but most businesses are trying to stay steady and focus on maintaining their quality level and customer base,” said Anthony Mazzuca, Sales, Tanimura & Antle. “Overall, we expect pricing to remain at or above current levels between now and late-April after we kick off our Yuma deal.”
Both Jessica Peri, Retail Sales Manager for Yerington, Nevada-based Peri & Sons, and Delbert Gehrke, Vice President of Farm for Hermiston, Oregon-based River Point Farms, felt that the summer heat negatively affected supplies for onions this year.
“The weather was hot and we did see that caused yields to be down slightly,” said Peri. “Even when Mother Nature throws us challenges we always do our best to deliver the quality we are known for and not deviate from our standards.”
“The summer of 2015 was the hottest summer on record during the last 30 years in the Columbia Basin,” said Gehrke. “This resulted in some challenges for the 2015 Columbia Basin onion crops, as we typically do not see more than a couple days over 100 degrees for the entire summer.”
Stefan Matheny, River Point’s Director of Sales, corroborated these reports, noting, “NOA stocks on hand for February showed supply out of the Pacific Northwest and many regions being down compared to 2015.”
Despite the decrease in supply, growers have been reporting that they are satisfied with the quality so far and continue to keep business steady.
Matheny added that River Point Farms’ late storage varieties are performing well. Similarly, Peri said that the company is content with the quality it has seen so far.
“Overall, we are happy with our quality,” said Peri. “We have seen more translucent scales in the yellows this year than in years past and we attribute this to the hot summer, especially during harvest. Reds and whites – quality has been great, no complaints.”
For any further updates on the onion market, stay tuned to AndNowUKnow.
PORTERVILLE, CA – Homegrown Organic Farms is welcoming organic produce specialist Christine Toy as its new Senior Account Manager on the company’s sales team.
Toy has several years of experience working in the organic produce industry. Prior to joining Homegrown, she built the organic program at another San Joaquin Valley shipper and obtained her B.S. degree in AgriBusiness Marketing and Policy from California Polytechnic University, San Luis Obispo.
“I’m excited to be joining the team here at Homegrown,” said Toy. “I am glad to be back in the world of organics – it’s where I began and it’s what I enjoy most.”
Homegrown Chief Executive Scott Mabs said that he is thrilled to add her expertise to the team and believes that she will be a great addition to the team.
Toy’s initial responsibilities will involve learning Homegrown’s system of operations and she will eventually be focused specifically on sales. She plans to use her distinct industry experience to enhance the overall mission of Homegrown Organic Farms, according to a press release.
Outside of the produce industry, Toy is very passionate about and involved in the Alzheimer’s Association and is the organization’s Ambassador to California’s Congressman, Devin Nunes.
MISSION, TX - The Texas International Produce Association announced that the Lone Star State is seeing a surge of fresh produce coming through its international ports of entry.
The information was yielded from a recent study conducted by the Texas A&M Center for North American Studies, according to TIPA’s President and CEO, Bret Erickson, analyzing USDA data.
Erickson noted that the study showed enormous increases in Texas volumes, more than 21% from 2014 to 2015.
These products, primarily grown in Mexico but which Erickson added are often from the same grower/shippers who grow in Texas and other parts of the U.S., include:
- Tomatoes
- Peppers
- Lettuce
- Limes
TIPA noted that Texas is showing increasing growth, with is ports having seen approximately 210,000 load equivalents cross in 2015, several of which showed a better-than-average increase.
“The Texas produce industry is growing incredibly fast, creating tremendous opportunities for produce companies and allied industries such as transportation, customs brokerages, cold storage operations, construction companies, box and pallet companies, food retailers and many others,” Erickson said. “Texas volumes of imported produce have grown a staggering 108% over the last eight years. By comparison, California has grown by 50% and Arizona by 31% over the same period.”
On its own, Pharr, Texas has experienced a 35.5% increase from 2014 to 2015, with experts at Texas A&M’s Center for North American Studies speculating that it could even surpass other ports, according to the press release, late this year or early next in traffic for fresh produce imports in the U.S.
“The growth of produce imports through Texas, and more specifically through the Pharr Bridge, is remarkable,” Luis Ribera, agricultural economist and Director of Texas A&M’s Center for North American Studies, said. “Early data shows produce imports through Texas ports were already up by 30.3% for the month of January 2016 compared to January 2015.”
This is not to say that challenges do not still stand, however, and Erickson added that the association is engaged in a number of efforts to both expedite the flow of trade and improve infrastructure to help alleviate those challenges that come with rapid growth.
Among those efforts, Erickson listed:
- Pushing for, and receiving, increased staffing levels of FDA inspectors
- Successfully lobbying the state of Texas to help pay for extended hours of coverage at Texas ports
- Development of an overweight truck corridor
TIPA has also pushed to increase cooperation between Customs and Border Protection and USDA-APHIS, resulting in more cargo release authority for CBP-Ag Specialists, which it says helps to speed up insect identifications.
AndNowUKnow will continue to report on the growth of ports and other aspects that reflect changes in the produce industry, so stay tuned.
IDAHO FALLS, ID – Every February, the hot topic for conversation in the potato industry is The Idaho Potato Lover’s Month annual display contest, where the Idaho Potato Commission sponsors a national retailer display contest.
With last month having been no exception, Potandon Produce, the largest fresh potato marketer in the nation, is a huge supporter of the contest, offering matching prizes to retailers who use their Idaho brands.
Ralph Schwartz, Vice President of Marketing, Sales, and Innovation states that, “Demand for Idaho russet potatoes has been good the first couple of months of 2016, with the contest keeping consumer bag sales strong and pricing stable.”
“We’re seeing very strong demand on our variety potatoes from Idaho, especially our proprietary Klondike Rose® and Klondike Goldust® varieties,” Ralph tells me.
In fact, Ralph shared that January was a record month for shipping Potandon’s Klondike Express shelf-stable microwaveable potatoes.
“Demand on mini and specialty potatoes has been excellent in the early part of 2016,” Ralph says. “The six-minute cooking time and low retail price on the Klondike Express makes it a perfect item for time-starved consumers who want to serve fresh potatoes to their families. We’re also seeing amazing sales on our 24oz mini Gourmet potato line, due in large part to our free-standing display shipper program.”
He reports that volume for both red and white potatoes have picked up on the East Coast with the start of the Florida harvest, and that storage crop red potatoes supplies are at adequate levels in Red River Valley.
Looking ahead to coming promotional times, Ralph tells me, “We’re expecting heavy demand on all of our varietal potatoes for Saint Patrick’s Day and strong russet demand for Easter.”
With no gaps expected leading up to the start of variety potato shipments of the new Arizona crop in late May, AndNowUKnow will continue to keep its ear to the ground on this and all other produce categories.