MCALLEN, TX - It is now day 20 of the government shutdown, and as President Trump continues to push forward his agenda of securing funding for a new border wall, he announced a surprise emergency visit to border towns like produce’s own McAllen, Texas. Ahead of his visit, I spoke with prominent Texas ag figures Dante Galeazzi, President and CEO of the Texas International Produce Association, and Bret Erickson, Sr. VP Business Affairs for J&D Produce, about his border wall proposal, labor, and more.
“From what we understand, the President will be in McAllen today to visit the U.S. Customs & Border Protection station, followed by a trip to the Rio Grande river. While we prefer positive publicity for all the good in the region, we understand the importance of today’s visit to the administration’s objectives,” Dante shared. “While we’re thankful for the additional federal resources—especially those that help facilitate trade—we do have our concerns in this region about the construction of a border wall. South Texas is not like the areas of California, Arizona, or New Mexico where the largest sections of the border wall exists today.”
Dante explained that current construction plans in South Texas call for building the wall along a levee system on the U.S. side of the border, which is anywhere from ½ mile to several miles away from the Rio Grande river. He said the wall would then essentially be separating America from America and would likely require the government to appropriate U.S. farmland along the river for the space needed to build that wall.
“It would mean taking away resources from our American farmers and further decreasing the number of viable farming acres in our region,” Dante continued. “We support border security and the dedication of resources necessary to do so. However, we would like to see the administration take a different approach to the issue, perhaps something more in line with Rep. Hurd's suggestions for a security plan using technology to gain operational control of the border, especially for this region.”
Bret shared Dante’s appreciation of Trump’s willingness to visit the situation on the ground at McAllen.
“I’m happy that the President has chosen to come visit the border region, especially to my home here in the Rio Grande Valley,” Bret said. “I hope he walks away with a better understanding of how important international trade is to our region and to the country. The fresh produce sector specifically has flourished in Texas and created thousands of jobs and economic activity, both directly and indirectly. At J&D we are primarily a domestic producer, however we do rely on imports to help supplement our overall program. Imports allow us to serve our customers throughout the year and keep our full time employees busy year-round.”
Ahead of Trump’s visit, Bret noted he aims to move the conversation toward labor issues as well.
“It is my hope that the President looks beyond the singular issue of a border wall and considers a comprehensive approach to border security which includes significant improvements in our guest worker programs that allows these people to come and work legally in the U.S.” Bret said. “As a domestic grower/shipper, we are suffering from a severe labor shortage. It gets worse every year, and Congress has done nothing to improve our situation. It’s terribly frustrating to see our growth and success constrained by political warfare. There are so many able-bodied people wanting to come to the U.S. Let’s find a way to let them work legally and help the American farmer succeed to give U.S. consumers more options in the produce aisle.”
There will likely be new information about Trump’s government shutdown and border wall following today’s visit. According to CNBC, Trump has teased the possibility of declaring a national emergency to build the border wall. This would circumvent the need for congressional approval. The news source noted that Trump could potentially use the journey to McAllen as part of his justification for the action.
AndNowUKnow will keep you updated with the latest.
WASHINGTON, DC - After weeks of silence on the state of the E. coli outbreak, the CDC has finally announced the outbreak "appears to be over as of January 9, 2019"—an announcement that many from around our industry have deemed too late.
How can we remedy this broken process to ensure safety is the top priority and that timeliness and communication play a more significant role? A few experts and leaders from around the produce industry shared their varying thoughts with ANUK.
“This statement, a month after the months of consumer and CDC confusion, is another indication that we must fix the current system—not just to protect consumers but better protect the food supply itself,” said Todd Linsky, Principal and Owner of TLC Consulting. “I challenge the debate by proposing that we need to be driving costs into our food production and help the producers not only make a living, but have the ability to afford to create a system that provides safety. If we keep trying to dumb down our food we will continue to see our mistakes.”
The California Leafy Green Marketing Agreement's Marketing Communications Director April Ward added, "The California LGMA is pleased to see FDA and CDC’s updates on the romaine outbreak yesterday as it is important for the public to know that Romaine is safe to eat. The leafy greens farming community is committed to protecting consumers and we are all focused now on efforts to examine and update farming practices to make leafy greens safer."
According to its latest and, presumably, final report, the CDC cites 62 people across 16 states and the District of Columbia were infected with the outbreak strain of E. coli. No deaths were reported.
The CDC first announced the outbreak at the end of November, advising all to stay away from romaine. The organization then followed up on December 13th to reveal the source of the outbreak, again warning all not to buy, serve, sell, or eat romaine lettuce from California’s Monterey, San Benito, and Santa Barbara counties. But, after the December report, communication from the CDC ceased. Many organizations on the buy-, supply-, and consumer-side of produce, including PACA, Western Growers, food scientists, and even McDonald’s, stepped up to keep the lines of communication open, arguably filling in the gaps of the CDC’s own obligation.
Will the CDC learn from this outbreak and correct the process in the name of future safety? I, for one, would be grateful if the CDC would address the systemic issues that have come to light during this chain of events. We await the conversation that will address these recent complications and obstacles. CDC, what's next?
AndNowUKnow will continue to keep our finger to the pulse of the produce industry.
SELAH, WA - While many people see the holidays as a time for gift-getting, others see it as a time for gift-giving. The Rainier Fruit Company took this spirit of charity to heart over the holidays with its Pears for Pairs national marketing campaign. As part of that program, which provides socks to the homeless, Rainier Fruit staff raised over $1,300 during a holiday dessert auction to donate hundreds of pairs of socks and towels to the Union Gospel Mission in Yakima, WA.
“At Rainier Fruit, our mission to be Wholesome to the Core is about finding ways to give back and make a difference in the community and the lives of others,” said Andy Tudor, VP of Business Development, in a press release. “Pears for Pairs helped to shine a light on the growing problem of homelessness not just nationally, but even locally here in our small community.”
More than 3.5 million people experience homelessness each year in every state in the U.S. Over 570 individuals, families, and children are homeless in the Yakima-Selah region alone. In an effort to address this, the company launched its Pears for Pairs holiday marketing program this year in November, which involved a joint event with Hanes in Austin, TX, at Mobile Loaves & Fishes and continued on with in-store marketing programs at various retailers across the country. At the moment, donation amounts are being tallied up, and the company will soon announce the resulting funds raised through retail programs.
Not content to stop at socks, the Rainier team participated in its annual Toys for Tots toy drive, collecting over 800 toys to be given out to local children for the holidays.
AndNowUKnow will continue to report on these sorts of charitable programs.
CORAL GABLES, FL - As off-shore melon production continues, the New Year also marks a return to school for the children of seasonal workers in Honduras and Guatemala. With Fyffes counting among its core values a focus on providing academic development for local children, here’s how the global produce distributor invests in its farming communities.
In 2016, Fyffes launched a program in which it works with teachers to identify the school supplies most in demand as well as how best to target improving student-achievement levels. According to a company press release, Fyffes also provides financial assistance in the form of paying teachers’ wages and contributing to local Children’s Day and Mother’s Day celebrations on an annual basis.
“A core focus of our mission is to be an empowering force in the communities in which we operate,” said Global Sustainability Director Julie Cournoyer. “This includes everything from providing well-rounded education to funding teacher salaries and improving living conditions for families.”
In neighboring Guatemala, Fyffes has been supporting the academic experience for students since 2015 through its “FUNDASOL” foundation. Each year, more than 650 students attending 30-plus schools benefit from the educational initiative, the press release noted. This includes providing students with school supplies and new desks; staffing teachers to lead vital courses that include English, psychology, and computer science; and improving the learning environment by way of repainting schools, improving restrooms, and updating sporting facilities. Fyffes also works in coordination with Plan International, an independent development and humanitarian organization that advances children's rights.
In order to facilitate an academic environment, Fyffes works to improve safety, hygiene, and overall learning conditions for students in elementary schools adjacent to its farms. In the Honduran villages of El Naranjal and Pueblo Nuevo, the company has replaced latrines with toilets to reduce exposure to gastrointestinal illnesses. It has also built perimeter fences to improve security around schools in addition to upgrading electrical power systems.
“These children represent the future, so it’s very important to Fyffes that we affect positive influence on these kids from a very early age,” added Cournoyer. “School supplies, building infrastructure, security—we recognize and support how crucial all of these factors are toward a successful learning environment.”
In addition to updating infrastructure, the company also looks to improve on-site school medical care. Through a Fyffes-directed and -funded program, Dr. Osorio, a native of Nicaragua, is one of four doctors who runs clinics at melon farms in Honduras. He provides check-ups, vaccinations, and medicine at no charge to elementary school students.
“Both educating and improving the health conditions of our children is so important for the future of these communities,” concluded Cournoyer. “We’re talking about lifelong effects and benefits, and that’s an effort Fyffes is so eager to be spearheading!”
For the latest in produce-y news, keep reading AndNowUKnow.
BOISE, ID - This week, Albertsons Companies informed the Securities and Exchange Commission that it had completed the sale of five distribution centers to “an unaffiliated entity” as part of a sale-leaseback deal set to net the company $660 million.
“Pursuant to the related sale agreements and upon the closing of the sale of the properties, the company entered into lease agreements with the purchaser for each of the distribution centers for initial terms of 15 to 20 years and multiple options to extend the terms of the leases,” an SEC filing registered by Robert Gordon, EVP, General Counsel and Secretary, filed on behalf of Albertsons, read. “The aggregate initial annual rent payment for the properties will be approximately $38 million and includes 1.50% to 1.75% annual rent increases over the initial lease terms.”
A similar deal came to fruition in August of last year when Albertsons completed the sale and leaseback of two distribution centers for an aggregate purchase price, net of closing costs, of approximately $290 million.
“We are energized and enthusiastic about our company and our ability to generate free cash flow and delever our balance sheet,” CEO Jim Donald noted in October of 2018. “The team continues to innovate through our digital engagement with customers in both the four-wall and no-wall environment…through the automation of our distribution centers which we believe will deliver strong returns going forward.”
What will the retailer do with the capital it’s freed up? AndNowUKnow will continue to report with updates.
HANFORD, CA - Warmerdam Packing’s Founder William (Bill) Warmerdam passed away on January 8, 2019. He was 80 years old. During his produce industry career, Warmerdam was admired as a leader in the fruit industry for continually embracing innovation and new technologies in the field and packing shed.
In 1965, Warmerdam founded grower-packer-shipper Warmerdam Packing with his wife, Audrey, in Hanford, California. In its early years, Warmerdam Packing grew peaches, plums, and nectarines. Today, the company grows and packs plums, kiwis, and cherries, and, according to a press release, is one of the largest cherry growers in the San Joaquin Valley. At its helm, Warmerdam led the charge to build the company’s first packing shed on Grangeville Boulevard in Hanford in 1969, as well as designed and fabricated the facility's packing equipment himself before the operation was moved to its Excelsior Avenue location in 1977.
Remembrances in Warmerdam’s name may be sent to The Parkinson Alliance, P.O. Box 308, Kingston, NJ, 08528 or parkinsonalliance.org; St. Agnes Hospice, 6729 N. Willow Ave., Suite 103, Fresno, Ca. 93710; or St. Vincent de Paul Society, 115 W. 5th St., Hanford, Ca. 93230.
AndNowUKnow would like to send our condolences to the Warmerdam family during this time.
OTTAWA, ON - Corporate culture is something that can make or break a company. In recognition of this, the Canadian Produce Marketing Association (CPMA) is launching its first CPMA Corporate Culture Awards. Giving CPMA members the chance to participate in a corporate culture exercise, CPMA has teamed up with Waterstone Human Capital (an organization specializing in Culture Advisory services) for the awards. Waterstone will be implementing a customer survey among CPMA members and the comapny found to have the top corporate culture will be announced as the first ever CPMA Corporate Culture Award Winner.
“Corporate Culture is essential to driving business performance. Companies are increasingly taking note of this and applying best practices to create winning cultures,” said Ron Lemaire, CPMA President. “We are thrilled to be working with Waterstone Human Capital to encourage our members’ businesses to flourish and to recognize leaders within our industry.”
Waterstone will distribute the Waterstone Culture Dashboard™, an employee survey that seeks to define an organization’s corporate culture, and compare the results to the behaviors that are shared by high-performing cultures, particularly the cultures of the Canada’s Most Admired Corporate Culture™ award winners. Managed by Waterstone, Canada’s Most Admired Corporate Culture program recognizes top-of-the-class Canadian organizations with exceptional corporate cultures that have enhanced performance and helped sustain a competitive advantage.
“What we measure and assess against has come out of our involvement and leadership in Canada’s Most Admired Corporate Cultures program,” said Barrie Carlyle, Managing Director at Waterstone Human Capital in a press release. “We are thrilled to be bringing exclusive insight into best human capital practices from leading organizations across Canada and the world to the CPMA and its member organizations.”
From now until February 28, CPMA members will exclusively have the opportunity to participate in the Culture Dashboard at a preferred rate. All participating members who complete the confidential survey will automatically be considered for the first CPMA Corporate Culture Award. As extra incentive to participate, organizations will be privy to exclusive content focused on best practices and trends in corporate culture, as well as have the chance to work closely with Waterstone’s Culture Advisory practice.
Best of luck to those participating, and what a great way to encourage positive and effective corporate cultures!
Canadian Produce Marketing Association Waterstone Human Capital
YAKIMA, WA - I can’t believe I never made the logical leap before: all I need to protect myself from a pinch on St. Patrick’s Day is to carry around a Granny Smith apple. Perhaps Superfresh Growers is in the same frame of mind, for the company is encouraging retailers to use the apple for St. Patrick’s Day displays. Not only does the variety add a pop of color to retail displays, those displays are sure to convert into another pop of green at the cash register.
“Granny Smith is one of America’s favorite apples, maintaining the #4 placement in top apple varieties,” David Roby, Brand Manager, said in a recent press release. “The Granny Smith continues to stay on-trend, as it is the most talked about apple in digital media. Nothing compares to the bright green, tart variety that is classically known for American apple pie but is also great for eating out-of-hand.”
The press release also noted that Granny Smith apples represent 10% of the apple category in both dollar share and volume (information collected from IRI data through 12/31/18). They continue to remain #4 in both organic and conventional dollar share. Superfresh Growers noted that Granny Smith resonates across all demographics and households, and the fruit is a produce staple.
“Creating large bulk displays draws attention to the bright green, festive color of Granny Smith apples,” continued Roby. “You can attract shoppers to St. Patrick's Day promotions by placing them near the cash register and front of the store—Granny Smith bulk apples or bags are perfect for front-of-store displays.”
Whether bag, bulk, organic, or conventional, Superfresh Growers has multiple Granny Smith options for seasonal promotions.
YUMA, AZ - Yuma produce providers and those who rely on them have been closely keeping eyes on their thermometers over the last few weeks. In a number of posts by FreshPoint, including on Twitter, the produce distributor noted several categories—including lettuce, broccoli, cauliflower, green onions, asparagus, and sugar snap peas—have been affected by freezing temperatures, and as a result, markets are expected to be active for the next week or two. The freezes are coupled with an increased demand for produce due to those ‘new year, new you’ resolutions and healthy back to school shopping, so many producers are saying the industry can expect tight markets out of the Yuma region.
Speaking with one producer that grows in Yuma, Arizona, I learned that a freeze over the holiday season made for delays in harvest, which in turn caused delays for several trucks who were waiting for harvested crops to roll in. In addition, the producer shared that the freeze compromised lettuce quality, creating epidermal peel and blister that harvesters must peel before it can be shipped. This causes a decrease in pounds per acre, which typically equates to higher markets and pricing.
Jason Lathos, Manager of Commodities for Church Brothers Farms, confirms that unexpected weather will make for active markets for crops out of Yuma.
“We have had a little more rain than expected. It has rained twice in the last two weeks and the forecast is for possible rain this weekend,” Jason says. “So far, Yuma has seen a lot of weather and labor issues. The forecast for the next couple of weeks is for active markets. Especially with the schools starting back again. Demand will be up and supplies will be down.”
In talking to Doug Classen, VP of Sales for the Nunes Company, I learned that much of Yuma has been covered in ice. For five days last week, ice that lasted up to 12:30 PM daily covered all categories.
“There were harvest delays across all crops last week that minimized the supply we were able to get from the field. Harvest times are back to normal this week,” Doug notes. “The cold weather has also slowed the growth of many crops. We have seen market increases across all commodities this week and expect volatility in the marketplace over the coming month.”
Another grower with product growing in Yuma shares that the freeze has indeed caused issues at their farms. Iceberg, leaf, and romaine lettuce have all shown signs of freeze damage, and broccoli and cauliflower growth has slowed down due to the cold temperatures.
AndNowUKnow will keep monitoring the markets as supply and demand continue to fluctuate and Mother Nature takes her toll. Stay tuned for the latest.
CHICAGO, IL - Legend states that if you so much as say one negative word against cult grocery retailer Trader Joe’s, an army of Joe Beaus will descend upon you, bringing with them the bounty of Trader Joe’s branded products. I know from experience. Fortunately, the Joe Beaus can put down their torches and pitchforks, because dunnhumby has released the results of its Retailer Preference Index (RPI) study, which once again speaks highly of the California-based retailer. For the second year in a row, Trader Joe’s was ranked the top-rated grocery retailer—Joe Beaus coming in clutch!
According to a press release, the RPI study surveyed 7,000 U.S. households to determine which of the top 56 largest grocery retailers have the strongest combination of financial performance and consumer emotional sentiment. The RPI ranking takes into account price, quality, digital, operations, convenience, discounts/rewards, and speed.
The results included the following grocery retailers that weighed in with the highest consumer preference index scores:
- Trader Joe’s
- Costco Wholesale
- Amazon
- H-E-B
- Wegmans Food Markets
- Market Basket
- Sam’s Club
- Sprouts Farmers Markets
- WinCo Foods
- Walmart
- Aldi
- Peapod
- The Fresh Market
dunnhumby noted that many of the retailers at the top of the list have focused their businesses on superior value perception, including price and quality, and as a result, tend to have the most financial success and the strongest emotional bond with consumers.
To read more of dunnhumby’s key findings from this year’s study, click here.
For more fresh news like this, stay tuned to AndNowUKnow.