An Overview of

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An Overview of Fruits Vegetables From
Farmers to Feeding Programs American Commodity
Distribution Association 2008 Annual National
Conference April 7, 2008
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National School Lunch Acts Dual Mission

• Strengthen the Nations nutrition safety net
  by providing nutritious meals to school
  children.
• Support American agricultural markets by
  donating commodities for use in school feeding
  programs.

The foundation of USDAs commodity programs is
the American farmer.
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California Cling PeachBearing Acreage
Trends1998 - 2008
Thousands of Acres
Proj.
Based on YTD Pullouts of 2,159 Acres
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2004
2005
2006
2007
2008
2004
2005
2006
2007
2008
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Number of Cling Peach Growers in California
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West Coast Bartlett PearsBearing Acre
Trends1997 - 2006
Bearing Acres (000s)
31.6
31.1
31.1
31.1
30.2
29.7
29.4
28.9
27.4
27.2
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California ApricotsBearing Acre Trends1997 -
2007
Bearing Acres
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Consolidating U. S. Processed Peach Industry in
California

• 1952 42 CANNERS
• 1972 17 CANNERS
• 2007 4 CANNERS
• 2 FREEZERS

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U. S. Canned Fruit Processors
Peaches Del Monte Foods Seneca
Foods Pacific Coast Producers California
Fruit Tomato Kitchens
Pears Del Monte Foods Seneca Foods Pacific
Coast Producers Snokist Growers Northwest
Packing Company Independent Food
Processors Truitt Bros.
Apricots Del Monte Foods Seneca Foods Pacific
Coast Producers
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U. S. Canned Vegetable Processors(Corn/Green
Beans/Peas)
Corn Seneca Foods Del Monte Foods Lakeside
Foods Allen Canning Faribault Foods S.E.W.
Friel Norpac Foods
Green Beans Seneca Foods Del Monte Foods Allen
Canning Furmano Foods Lakeside Foods Norpac
Foods Truitt Bros.
Peas Seneca Foods Del Monte Foods Lakeside
Foods Allen Canning
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Labor Concerns

• Availability
• Timing
• Quality Productivity
• Impact of Stepped Up Immigration
  Enforcement
• Uncertainty Regarding Future U.S.
• Immigration Law Reform

How do we harvest our fruit without access to a
sufficient labor force?
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California Minimum Wage Trends
/Hour
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U. S. Canned Peach Market SegmentsProjected for
2007-08 Marketing Year
Total Sales 16,000,000 Cases
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USDA Summer PurchasesCanned Cling Peaches
6/10 Cases (Thousands)
Equivalent Cases of 6/10s - includes cases of
24/300s converted to 6/10s
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USDA Fruit Vegetable Program Purchases2003-2007
Fiscal Years
Millions of Dollars
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USDA Fruit Vegetable PurchasesTop 20 by
ProductFiscal Year Ending Sept. 30, 2007
These items account for more than 70 of all USDA
Fruit Vegetable purchases last year.
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USDA Fruit Vegetable Purchases 10 Largest
Vendors FYE Sept. 30, 2007
(Represents 51 of total USDA purchases)
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The Importance of Timingin USDA Purchases

• The key is early timing for USDA purchase
  announcements and bid awards.
• Processors no longer routinely pack entire crop.
• Non-commercial pack sizes and packing mediums
  exacerbate supply problems and result in higher
  costs.
• IDIQ issue for non-commercial items.
• Bids awarded prior to commencement of harvest
  and packing operations allows growers to sell
  surplus product which otherwise may not be
  harvested.

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U. S. Canned Peach Import Trends1990 -2007
Thousands of Cases
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U. S. Canned Peach Imports from China2000 - 2007
Basic Cases
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U. S. Canned Peach Imports from China2000 - 2007
Basic Cases
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Chinese School Lunch Policy(September, 2006)

• The Chinese press reports that schools in the
  Sichuan Province have adopted a new school lunch
  policy
• Teachers will sample meals 30 minutes before
  their students each day. If they show no
  symptoms of food poisoning, the students will
  eat the meal.
• In addition, data will be recorded and samples
  will be kept in the schools refrigerator for 48
  hours in case contamination is found.
• An average of 300 million people in China
  contract some type of foodborne illness each
  year.

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Chinese Peaches Exhibited at the School Nutrition
Associations National Conference in Chicago July
16, 2007
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Buy American Requirements Key Existing Elements

• Buy American Provision
• Requires SFAs to purchase domestically grown
  and processed foods, to the maximum extent
  practicable
• Domestic Commodity or Product
• Produced and processed in the United States
  substantially (51 of the final processed
  product consists of agricultural commodities
  that were grown domestically)
• Not just SFAs
• Any entity that purchases food or food
  products on behalf of the SFA must follow the
  same Buy American provision
• Applies to all Purchases
• SFAs must ensure that all purchases using
  funds from the school food service account
  comply with the Buy American provision

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Buy American Requirements Key Existing Elements

• Compliance
• SFAs should include in their bidding process
  a requirement for certification, or include a
  Buy American clause in all product
  specifications, bid solicitations, requests for
  proposals (RFPS), purchase orders, and other
  procurement documents
• Shared Burden
• Certification requires that manufacturers and
  distributors have the ability to look far enough
  back to ensure compliance

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Half-Empty Glass
Uncertainty about future cost and availability of
labor Processors face increasing international
competition Flat to declining retail sales Lack
of new products and packaging technology
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Half-Full Glass
U.S. fruit and vegetable growers are the best in
the world Highest level of food safety, quality,
and traceability Increased emphasis on consuming
fruits and vegetables The U.S. will avoid
becoming as dependent on foreign grown food as we
are on foreign oil.
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90 of U.S. consumers do not meet recommended
fruit and vegetable intake
Nutrition and Food Safety
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Nutrition Comparison of Fresh, Frozen and Canned
Fruits and Vegetables

• C. M. Bruhn, PhD, J. Rickman, PhD Candidate,
• D. M. Barrett, PhD
• Department Food Science and Technology
• University of California, Davis USA

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Dietary Guidelines for Americans and the
5-A-Day program encourage increased consumption
of fruits and vegetables for all Americans.
All forms of fruits and vegetables, such as
fresh, frozen, canned and dried, are important to
meeting the goals.
Including juice and dried fruit
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Key Findings

• By the time food is consumed, fresh, frozen, and
  canned are likely to be nutritionally similar
• Processed products may have greater
  bioavailability of B carotene and lycopene
• A good diet should include a variety of fruits
  and vegetables

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Schools Top Foodservice Issues
Source School Nutrition Association 2005
Operations Study
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Canned and frozen fruits not only offer great
nutrition, but they are inexpensive and
convenient ways to make sure that we maximize the
variety and number of fruit servings needed to
protect our health.
-- American Institute for Cancer Research
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