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Perishable Pundit
P.O. Box 810425
Boca Raton FL 33481

Ph: 561-994-1118
Fax: 561-994-1610


email:
info@PerishablePundit.com

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Produce Business

Deli Business

American Food & Ag Exporter

Cheese Connoisseur



Sainsbury’s Provides Snapshot Of Consumers

J Sainsbury has come out with some interesting information. The big U.K. retailer has been studying what food people buy at all British supermarkets and published this report:

May 8, 2007

OFF THEIR TROLLEYS

Health drive changes the face of weekly shop

The Great British weekly food shop is getting leaner but healthier according to new research from Sainsbury’s — and reveals for the first time the 20 items that are being left on the shelf as Brits bid to get in shape.

Over the last nine months, Sainsbury’s has tracked the weekly shopping habits of more than 18,000 people — spanning all regions and all supermarkets — to get a detailed picture of what’s in the nation’s shopping trolley. The study establishes changes to the weekly shop that run deeper than seasonal or ‘fad’ factors.

Preliminary findings from the forthcoming report:

  • The size of the weekly shop has shrunk by 5% as people cut back on the more indulgent items. In July 2006 the average Brit purchased 42 items every week compared with 39 in February 2007.
  • Since the summer, fruit, vegetable and salad have consistently commanded around 30% “share of trolley” — rain or shine (see table one).
  • Burgers, fizzy drinks, chocolate and sugary cereals are among the biggest fallers (see table two).
  • Soup has been the big hit of 2007 so far — tinned soup up 44% and packet soup up 80% (see table three).
  • Health correlates with age not wealth. Older people eat better (see table four).

Charlotte Parker, Sainsbury’s nutritionist commented: “Our ongoing research dashes the assumption that Brits eat well only when the sun comes out. By tracking the weekly shopping habits of 18,000 families for four consecutive weeks every quarter, it is apparent that millions of people are taking a pragmatic and sustainable approach to health and diet. Rather than attempt radical changes or fad diets, people are taking a series of small steps to eat better and these can make a big difference in the long run.”

We are not comfortable with comparing a market basket from July of last year to one from February of this year. The drop in number of items may simply be due to seasonal differences. We also note that more and more people are getting food at non-supermarkets, such as Costco. So we can’t really deduce changes in eating habits solely on this study — still it is intriguing.

Table one: What the UK weekly shop looks like
Category breakdown of the UK weekly trolley: February 2007

CategoryAverage number of items purchased a weekPercentage “share of trolley”
Fruit, veg & salad11.529%
Cupboard items718%
Dairy410%
Ready / prepared meals410%
Meat3.79.4%
Drinks — hot and cold2.56.4%
Crisps & biscuits25%
Breads / bakery1.64%
Cakes & desserts12.5%
Fish12.5%
Alcohol0.72%
TOTAL39 items99

It is exciting to see that produce accounts for 29% of the trolley — but this is number of items, not dollars or pounds sterling! It does show how important produce is to a supermarket, even more than the dollar figures would typically show.

Table two: Off our trolleys — 20 items in continual decline
(Percentage of Brits purchasing as weekly items over three consecutive quarters and overall percentage fall in popularity)

June/JulySept/OctJan/FebFall over
9 months
Butter60%58%53%12%
Cucumber59%52%43%27%
Cooked meats48%47%43%10%
Fizzy drinks43%42%36%14%
Squash32%31%26%19%
Berries and cherries30%22%14%53%
Cold pies22%20%17%23%
Frosted cereals22%21%18%22%
Frozen pizza21%20%18%14%
Brown sauce18%16%14%22%
Lager19%16%12%37%
Chocolate16%15%12%25%
Individual desserts15%14%11%27%
Fresh burgers13%10%6%54%
Regional cheeses15%14%13%13%
Donuts and cookies12%11%8%33%
Frozen burgers11%9%7%36%
Brie10%9%8%20%
Luxury crisps10%8%6%40%
Real ale7%6%4%43%

Once again, many of these items are seasonal and have to be compared year to year. No real shock that sales of berries, cherries, fresh burgers, etc., have collapsed since summer. Some are seasonal products and so the statistics are contrasting locally grown with expensive imports.

In the case of burgers, they may be seasonal in a habitual way with less grilling and what not.

Table 3: The Famous Five: Biggest hits of 2007 so far

Item% buying each week% Rise over 9 months
Packet soup10%+80%
Tinned tomatoes63%+79%
Tinned soup36%+44%
Citrus fruits43%+13%
Root vegetables57%+12%

As summer fruit goes down, one would expect to see citrus and root vegetables go up — and that is what has happened. It is a little odd that Sainsbury’s didn’t mention anything about this dynamic.

Table 4: Age correlations with more healthy food shopping

Food categoryAge group MOST likely to buyAge group LEAST likely to buy
Fresh fruit55+18 — 24
Fresh vegetable and salad55+18 — 24
Fresh fish55+18 — 24
Fresh meat45 — 5418 — 24
Dairy45 — 5418 — 24
Bread and fresh cakes45 — 5425 — 34
Hot drinks45 — 5418 — 24
Frozen foods35 — 4455+
Soft drinks35 — 4455+
Fresh desserts35 — 4455+
Cupboard foods25 — 3455+
Fresh ready meals18 — 2455+
Fresh quiche/ pasta/pizza18 — 2455+
Alcohol18 — 2455+

This is somewhat troubling for the produce industry, although not unexpected. Older consumers are most likely to buy fresh produce.

Although one wonders if it is age as much as life stage. We would like to see break-downs with things like “children living at home,” “married” and “employed full time outside the home,” and we suspect these factors are more important than age per se.

Sainsbury’s is anxious to get some publicity for its investment in research but the truth is that it is a little premature. Food is very seasonal and these numbers won’t really start telling us much until we can compare winter to winter, summer to summer, etc.

In addition it would be a good idea to broaden the project to include food purchases at convenience stores, warehouse clubs, etc., so we have a more complete snapshot of what people are buying.

Still, it is intriguing to know that produce is accounting for almost a third of the items the British consumer is purchasing at their local supermarket. And a little concerning that it is people 55 years old and older who are the most likely to buy produce.

Maybe we’ve been marketing produce a little too much like medicine?




McDonald’s Puts Health Spin On Shrek Promotion

McDonald’s is spinning its new promotion tied in with the release of the new movie Shrek the Third:

In the United States, McDonald’s is celebrating the arrival of “Shrek the Third” with its “Go for Green” message. The campaign showcases a variety of food choices including Premium Salads, Premium Chicken Sandwiches, fun desserts and a Happy Meal featuring Chicken McNuggets Made with White Meat, Apple Dippers (fresh, peeled apple slices with optional low-fat caramel dipping sauce), and low-fat white or chocolate Milk Jugs served in child-friendly containers with Shrek packaging to encourage consumption.

Its promotional efforts are paying off, garnering McDonald’s headlines such as Shrek on a Diet in McDonald’s Happy Meal Gig in a Reuters story:

“…unlike previous movie tie-ins, McDonald’s will use Shrek to feature its salads, milk, apple slices and other products introduced in the last 3 years as the No. 1 restaurant company faced mounting criticism its food was not only unhealthy, but also contributing to the increase in overweight kids in the United States.

A Happy Meal with Apple Dippers, all-white-meat chicken McNuggets, and low-fat milk will be featured in television commercials and on posters in McDonald’s restaurants. Shrek will also appear on packaging for the milk and apples.

While the apples, milk, salads and other featured products have been on McDonald’s menu for more than a year, Chief Marketing Officer Mary Dillon said the company still had “opportunities to drive awareness both with parents and kids about these offerings.”

McDonald’s will also use Shrek to promote physical activity through games on its Web sites that require both online and offline play, Dillon said.”

One supposes it is a good thing for McDonald’s to promote apple dippers and milk as opposed to Big Macs and Coca-Cola. Still, the whole promotion raises troubling questions regarding marketing to children and our society kidding itself about the value of small incremental changes.

The “healthful meal” that is being promoted is chicken fingers, and the fact that McDonald’s points out that these are “white meat” chicken nuggets doesn’t make them any less breaded or deep fried.

Now, in its defense, McDonald’s publishes a comparison with other typical kid’s meals, and the Happy Meal being promoted shows up pretty well. Which may only tell us that all these things are bad and we need to feed children differently.

To some extent the whole promotion is a bit of a bait-and-switch. Promote the whole thing as “healthy” to entice parents in, then, once the kids get there, they are going to want things such as French Fries. In fact, a lot of the “healthy” nature of this Happy Meal is because they don’t give the kids French Fries.

It is telling that McDonald’s refuses to reveal what percentage of Happy Meals are sold with French Fries and what percentage are sold with apple dippers. In fact, one doesn’t have to order the healthier alternative to get the Shrek toys. Watch one of the TV commercials here in Windows Media or here in QuickTime. Notice it just promises a Shrek toy with any Happy Meal.

McDonald’s wants to focus attention on the healthful options available. And there are many. The Pundit has often thought of doing a movie that would be the reverse of the Supersize Me and show that he could lose substantial weight just by eating food from McDonald’s.

Yet it seems that the answer to healthful eating — for adults but especially for children — has to be more than just offer some healthy choices and rely on strong willpower.

We have to build a culture that supports healthy eating. Perhaps the Shrek toys should be a reward for selecting a special Happy Meal with grilled chicken, a vegetable and apple slices for dessert.

We pay so much attention to eliminating E. coli 0157:H7 from the food supply, yet many more people will die from diseases that are the consequence of obesity, especially childhood obesity.

McDonald’s is the dominant player; they should be the leader in working to build a healthy food culture for children. It is a good job to fill the next time they have a superhero to be employed in a promotion. After all, helping end the scourge of childhood obesity really would be a super achievement.




Kudos To All Involved In Produce For Kids

Here at the Pundit we are, of course, deeply appreciative of all our sponsors. They are the people and organizations that make it possible for us do what we do.

We are especially proud to be associated with John Shuman and Shuman Produce because of John’s role in creating the Produce for Kids program.

The Produce for Kids program is designed to bring the produce trade together to simultaneously educate children on the benefits of eating more fruits and vegetables while raising money for the Children’s Miracle Network, which supports a network of children’s hospitals across North America.

Each year the program runs an annual spring fundraising campaign (and this year will add a fall campaign). The gist is that suppliers sponsor the fundraiser by making a per unit donation each time an item is shipped into a participating retailer during the time period of the campaign.

With this year’s spring campaign, the program expects to have raised in excess of $1 million for the Children’s Miracle Network:

PRODUCE FOR KIDS PRIMED TO SURPASS
$1 MILLION FOR CHILDREN’S MIRACLE NETWORK

REIDSVILLE, Ga. — Produce for Kids® (PFK), known for its national spring fundraising campaign that teams supermarket retailers with the produce industry to raise funds for local Children’s Miracle Network hospitals, has created a colorful new image. PFK has debuted a new logo, added customized retailer programs and revamped its Web site — all to better promote the advantages of adding more fruits and vegetables to children’s daily diets.

“2007 proudly marks a campaign milestone,” said John Shuman, president of Shuman Produce and founder of PFK. “We expect our contribution to the Children’s Miracle Network will exceed one million dollars since the inception of Produce for Kids six years ago. Our slogan ‘Get Healthy, Give Hope’ emulates our goal to teach children the benefits of eating healthy, especially during the current obesity crisis in our country, while helping hospitalized children. What started out as a small effort to raise money for a worthwhile cause has now evolved into an amazing program.”

The revamped PFK Web site, which launched May 1, has been redesigned to be more user-friendly and interactive. New features include contests, healthy eating tips, games, recipes using sponsors’ products and an invitation to join the Healthy Kids Club.

Also new are PFK’s individualized programs for participating retailers. Each program gives retailers an opportunity to tailor the program to their individual needs. Customized programs include a PFK produce department in-store scavenger hunt, an outdoor event where kids learn about healthy eating while participating in fun activities and interactive meal demonstrations for kids and parents.

The 2007 PFK spring campaign is supported by eight retail chains representing nearly 2,000 stores, serving 23 states, and over 30 co-sponsors.

During the months of May and June, Acme Markets, Giant Food Stores (Carlisle Division), TOPS Markets, Harris Teeter, Kroger (Southwest Division), Meijer, Price Chopper and Publix Super Markets will help raise money for Children’s Miracle Network hospitals through the PFK program.

Sponsors of Produce for Kids include Chelan Fresh Apples; Chiquita® Fresh-Cut Fruit and MinisTM; Country Fresh® Vegetable Platters/ Cut Vegetable Packs; Country Fresh Mushroom®Co.; Custom Pak Cherry Berry Grape Tomatoes; Del Monte Gold® Extra Sweet Whole and Fresh Cut Pineapple; Dole® Fresh Packaged Salads; Dole® Fresh Fruit Tropical Gold® Pineapple; Driscoll’s® Raspberries; Eat Smart®Mixed Vegetables; Eurofresh Farms® Tomatoes on the Vine; Everybody’s Nuts® Pistachios; Family Tree Farms® Apricots, Plumcots, Peaches and Nectarines; Foxy® Produce Romaine Hearts; Fresh Express® Packaged Salads; Green Giant® Red Potatoes; Masser TM Potatoes; The National Mango Board; NatureSweet® Vine Ripened Cherry Tomatoes; Olivia’s OrganicsTM; OppenheimerTM Kiwifruit; Pacific Trellis Fruit® Grapes; Santa SweetsTM Grape Tomatoes; Shuman Produce’s REALSWEET® brand Vidalia® Onions; Stemilt® Growers Apples, AppleSweets® and Cherries; Summeripe® Peaches, Plums and Nectarines; Superfresh Growers Apples; T. Marzetti® Salad Dressings and Hummus Dips and Tropicana Pure Premium® Orange Juice products.

For more information on PFK including a list of participating Children’s Miracle Network hospitals, go to www.produceforkids.org.

ABOUT PRODUCE FOR KIDS

Produce for Kids was created in 2002 by Shuman Produce Inc., growers of REALSWEET brand Vidalia Onions, to bring the produce industry together to benefit kids in support of Children’s Miracle Network. Produce for Kids is an integrated marketing campaign featuring the following: point-of-sale materials with floor stands or posters, recipe brochures, shelf cards and shelf tags, advertising, public relations; sweepstakes drawing and Internet marketing with the Web site, www.produceforkids.org. Co-sponsors support the program and make a per-unit donation to Children’s Miracle Network.

ABOUT CHILDREN’S MIRACLE NETWORK

Children’s Miracle Network represents 170 children’s hospitals providing state-of-the-art, lifesaving care 24 hours a day, 365 days a year. Each year, Children’s Miracle Network hospitals treat 17 million children for every disease and condition imaginable, including cancer, pediatric AIDS, muscular dystrophy, sickle cell anemia, birth defects, asthma and accidental injuries. One hundred percent of all locally raised funds benefit children treated at the Children’s Miracle Network hospitals.

Special kudos to the eight participating retailers: Acme Markets, Giant Food Stores (Carlisle Division), TOPS Markets, Harris Teeter, Kroger (Southwest Division), Meijer, Price Chopper and Publix Super Markets. They are often willing to change their procurement habits to buy from participating shippers so they really are doing good work.

The shippers deserve praise as well. Typically they really sell at normal trade prices — and make the donation out of their own pockets and out of the increased volume they realize by participating in such a venture.

“Get Healthy, Give Hope” is the slogan of the program. Just seeing how John Shuman built this from nothing and achieved the range of participation he has today gives us all a reason to have a lot of hope for the future.




Pundit’s Pulse Of The Industry — OneHarvest’s Rob Robson And His Food Safety Team

Here at the Pundit, we are sensing that much of the industry has become complacent on food safety ever since the California Marketing Agreement went into effect, simultaneously with the decision of Fresh Express to sign the agreement and NRA to, at least for now, endorse the agreement.

At the United Fresh show in Chicago, a major producer told the Pundit that food safety was “over” and that the matter has now been “handled.” If only it were so.

More stringent agricultural practices — more stringently enforced — are a good idea. There is, however, no reason to think the events of last fall couldn’t ever happen again.

As an industry, we need to be relentless in our search for solutions. Here at the Pundit we’ve reached out to foodservice operators to see if their carefully aligned supply chains offer the industry some insight to more successful food safety efforts.

We’ve also reached out to other industries in pieces, such as Pundit’s Pulse Of The Industry: Beef Industry Food Safety Council’s James “Bo” Reagan, to see how they have handled food safety issues. We have turned to Europe with pieces, such as Pundit’s Pulse Of The Industry: Florette UK’s Mark Newton and Would British Retail Consortium Standards Have Prevented The Spinach Crisis? to see how they were thinking about food safety across the pond.

Most food safety experts, although lauding the effort to improve growing standards, believe the answer to food safety concerns is more likely to be found in a limited number of processing plants than in thousands of farms all across the world. So today, we travel ‘down under’ to speak to the largest fresh-cut processor in Australia, OneHarvest.

We’ve mentioned Rob Robson, CEO of OneHarvest, before, including both here and here as we discussed the fact that Rob is the first person from outside of North America to be named to the Executive Committee of the Produce Marketing Association.

If you want a measure of how exceptional an organization OneHarvest is, think about this: The company does virtually no business with the United States, yet not only is Rob on the Executive Committee of PMA but his associate Robin Poynter, Chief Operating Officer, serves on the board of United Fresh.

OneHarvest Board of Directors: (from left to right)
Pamela Robson; Ray Magill, Chairman;
Robin Poynton, Chief Operating Officer;
Rob Robson, Chief Executive Officer; Jo Collins;
Graeme Everingham, Chief Financial Officer

How extraordinary. Many U.S. firms can’t be bothered to get involved with either association; OneHarvest is a company that so values intellectual property that it sends not one but two senior executives over 22 hours on airplanes from Brisbane to the east coast to participate in the intellectual life of the industry.

Of course OneHarvest’s largest customer, Woolworths, whose slogan is “The Fresh Foods People”is progressive as well. As long ago as 1992, Woolworths brought the Pundit down to Australia to keynote the Australian United Fresh Conference, give training sessions for Woolworths, Coles and Bi-Lo, and, especially, to condition growers and market agents for the transition to direct buying that Australia was about to undergo and that the U.S. had undergone years before.

Woolworths has a well deserved reputation as being among the most stringent buyers in the world when it comes to food safety. With OneHarvest dealing with that stringency every day, we asked Pundit Investigator and Special Projects Editor Mira Slott to see what we could learn from OneHarvest when it comes to food safety. Rob gathered some of the key people on his food safety team for a round table discussion on food safety:

Rob Robson
CEO
OneHarvest, Australia

Felicity Robson, Corporate Marketing Manager
Paul Jackson, Site Technical Manager
David Rigby, Microbiologist
Charlene Binder, Site Technical Manager

Q: Since the spinach E. coli crisis hit the U.S. market last September, food safety issues have enveloped the U.S. produce industry and generated unprecedented interest and actions. In an effort to help the industry move forward, we are reaching out internationally to gain additional knowledge and perspective. Could you share your insight on food safety with our readers?

A: Felicity: Food safety is at the core of our company operations and culture. We really have to get this whole notion of food safety out and convince everyone to step up to the next level. That is why Rob is committed to working within our company and with the PMA and United Fresh board to drive the food safety message and increase awareness. There is a dynamic dialogue going on and people seem to be taking it very seriously.

Q: How has food safety in produce evolved in Australia? Who and what have been the key motivators? Why?

A: Rob: Broadly speaking, food safety in Australia has been driven by Woolworths, one of only two major retailers in the Australian market, bringing in WVQMS, Woolworths Vendor Quality Management System. This was quite a big step. What they did was identify the high risk areas in a broad range of perishables and require a standard level of food safety. Basically that drove the whole produce industry and other areas too.

Woolworths replaced these standards a few years ago, releasing its WQA, Woolworths Quality Assurance, which raised the standards and vendor requirements. In Australia there are only two major supermarkets that, combined, do 75 percent of the food business. Woolworths is doing very well and Coles is up for sale. Our challenge is to keep relationships with both because together they represent 95 percent of our business.

A: Paul: The main retailers drive food safety with support systems built in. Guidelines and food safety codes are set by Food Safety Australia New Zealand (FSANZ). In addition each state — six total — has its own health department and government body that regulates food safety standards.

A: Dave: In terms of a timeline, Woolworths’ Vendor Quality System was instituted in 1995, the same year the company started production. Since then, Australia put in a national legislation requirement for every company to have HACCP, if a grower had previously been excluded. The real watershed year was in 2000, with January 2001 starting the auditing of companies with high risk product categories first and moving way up from there.

A: Rob: In Australia, as we speak now, every food business, handling, processing or selling food has to have a food safety plan based on HACCP. Standards are written into the food code for all the general areas of food safety, such as water testing, maximum residue limits, heavy metals, standards for ingredients and processing, which are done at the national level.

A: Paul: In the produce industry, it’s really the retailers through brand protection that have driven these programs. While all of the food processors and farmers that sell to them are required to have food safety plans, it’s actually the retailers that set microbial standards. There are farm guidelines that help set risks for farmers, but there is nothing legally stopping them from following these higher standards set by the retailers.

The food microbiological qualities are set by retailers. The Woolworths Quality Standard, called WQA, required suppliers to do very frequent product testing to show products meet the guidelines, and twice-yearly third-party audits because we are a high risk processor.

Woolworths has registered auditing companies that have to meet certain standards and the same for Coles. They have an auditing division of their business. Third party auditors also report to Woolworths on competencies and what’s missed. They’re very heavily scrutinized for their work. They use the results to draw shelf life, six days to 12 or 13 days.

Q: In the U.S. many retailers are keen on encouraging suppliers to develop ways to extend shelf life. Is this the same in Australia?

A: Rob: In our country, use-by-date is generally three or four days less than the U.S., based on microbial qualities. We’ve been able to negotiate with retailers. The shorter the shelf life, the better the product is going to eat.

We’re not under pressure to extend shelf life. As products become more complex, we’re actually shortening shelf life to six days. Extended shelf life is a risk factor in itself. Retailers here in Australia have been recruiting from the UK. The result is a quality of knowledge that has come to a much shorter shelf life than in the U.S.

Q: Are there any notable differences between Woolworths’ requirements and the scope of British Retail Consortium (BRC) standards?

A: Dave: There are not major differences between Woolworths’ standards and BRC’s. They cover all the input risks, a long list without significant differences. There are ethical standard components of BRC and the WQA doesn’t have the ethical quality part.

A: Rob: The point of difference is with the U.S. — Retailers in Australia typically sell products that are private-label, 99 percent are private label with very few branded products in produce. They are quite protective about their brand.

Q: How do these standards relate to what food safety measures you’ve instituted at your own company?

A: Rob: Because there have been a shortage of experienced food technology people in Australia, over the years we have brought in technical experts from the UK and South Africa. We are measuring against the British Retail Consortium, have done a GAP audit, and we are ready to be measured against the British Retail Standard.

We’ve been raising the bar ourselves as a company. Our food safety requirements have evolved with retailers. Above that, people work with our contract growers. They discuss the safety issues and take regular water samples, specifically concentrating on E. coli testing, and also salmonella and lysteria from time to time. We are trying to protect ourselves at the farm level. Recently we had a large exercise with a large grower that talked to that state about getting help rectifying water issues. We also have raw material testing program where major growers are tested monthly.

This is a critical time in Australia. We are in the longest drought we’ve ever had. We are very aware of potential water issues. From a practical view, we upped the ante on water testing on the farms. I’m telling you the broad picture. All our rivers and dams are at the lowest levels ever, and we’re especially concerned from a leafy greens point of view. We’ve upped the level of micro testing of water and incoming raw materials, raising the level substantially.

David Rigby, Microbiologist

Q: Could you elaborate on testing? Do you test both raw and finished product?

A: Dave: We are testing finished salads from every line every day. That finished product goes under the full microbial testing. We will know immediately if we have a problem with E. coli, salmonella or lysteria and can react rapidly by tracing back to the grower where product came from and launch a full investigation where we are completely accountable to the retailer.

A: Felicity: We have two lines here in Brisbane and five in Bairnsdale. By testing each line every day we are checking hygiene of the line and the process every day. Materials will vary obviously. The relevance of this testing is in relation to our due diligence in our factories. We use the results from this testing as an indicator of the health of the processes in the factory. Raw material testing is a separate process.

Q: Have you caught any major problems you can share with us?

A: Dave: It doesn’t happen often. We may see a small trend of two E. coli with small counts indicating there may be a food safety problem. We check the harvest date, water, handling, and a host of other indicators until we are satisfied all is OK. Last time it happened, we identified a small trend in E. coli, and traced the results back to one farm with one grower.

Q: Is this E. coli 0157H:7?

A: We’re only testing for generic E. coli. We are fortunate that we don’t have concentration of 0157H:7 in our water supply in Australia. We know it comes in small levels from my experience of testing in the beef industry. Any indicators we get in the water supplies or we anticipate a problem coming up in finished product, we react immediately.

A: Paul: We’ve actually got sophisticated product trace-back. We can take finished goods and trace back to a particular grower and farm. Comparatively, we are ahead of the situation because we have full traceability and we are working continuously with growers.

A: Rob: At one time a sign of E. coli was traced back to a dam water source contaminated by ducks. By that time, the grower was already aware he might have had an issue. We just changed the water source, shut down and went to an alternative.

A: Dave: How my day works is that I get a spreadsheet of micro results, examine the trends and alert the factory. I talk to the field team and within the next day talk to the growers and get the relevant samples. It’s part of the day to day and practiced as a routine.

Q: Could you discuss more about what you require of your growers?

A: Rob: There are prerequisites for us to sign growers. We know who we’re buying from. We get information detailing irrigation sources, manure policy, all hygiene, pest control issues, practices they follow for chemical spraying. They have to supply a microbiological water test for primary irrigation sources and on-farm food safety verification, as well as their relations through the supply chain. We have taken a proactive approach in the challenges we face with the drought we’re in, understanding what is happening at the farm level and increasing some of the testing.

A: Dave: Five or six years of historical field and raw material testing, we’ve learned that certain growing regions present issues with downfall and other areas are stable. If we have a heavy downfall in a particular area with issues, we are constantly looking ahead of the curve. We have wild animals hopping over our farms. Historically, however, the problems have been with cattle and we have prohibitions here. None of our farms are allowed to have cattle or livestock near or on farms.

A: Rob: We think we are sitting pretty well. My understanding is that we’re doing quite a lot more micro testing than in other parts of the world. We’re continually testing finished product. The key with this is to study the trends, not necessarily the immediate results. If we actually get something positive, the product is usually past the use-by date so is already out of the market. Continuous testing reveals trends. We find that our bug counts for example rise particularly in the heat of summer and go down in winter. So we are very diligent during the summer with factory sanitation.

Q: Are all companies conducting such additional prudence?

A: Rob: That’s an important thing to think about. What happened in the U.S. was that major fresh-cut producers gathered to bring standards up across the board amongst themselves. But if all companies are not involved, the problem is not solved. The biggest threat we run into here is making sure others are operating to the highest standards as possible.

As a result of the American spinach E. coli outbreak, we’ve actually come together with our competitors to form a Fresh Salad Producer’s Forum. We’ve had meetings together. Our technical people have joined those of our competitors to meet several times to discuss common standards for processors to make sure we’re all aligned going forward. We try to stay ahead of standards required.

Q: I understand BRC standards are post-harvest. Are there the same kinds of standards on the production side?

A: Charlene: I sit in on the forum as a technical person. Even though there are certain standards from the retailer view, our grower mix is so fragmented there are various standards from a production point of view. The first thing we are doing as a group is establishing a base line for GAP and how we actually raise the bar on producers to diminish the risk from a production point of view.

Charlene Binder
Site Technical Manager

For perspective in the fresh-cut category, of total produce in Australia, salad in a bag makes up about four percent of total produce sales. As a result, there are a small number of growers that are growing exclusively for the fresh-cut industry. The majority that grows lettuce and leafy products actually grows for the wholesale independent market.

The vast proportion of production doesn’t have to meet the standards that we require. There are six major suppliers to the supermarket chains in terms of market share and we have between 50 to 60 percent of that market. We’re a large player and there are other players that enjoy about 20 percent and some that are regionally based.

It is so important that we are all aligned to the fundamental principle that our consumers expect their product is safe to eat. We talk about solidarity here. We must be a united front on all aspects of food safety. We watched what happened with the spinach crisis in the states. It was fascinating but a great learning experience in heightening awareness that we are as strong as our weakest link.

A: Felicity: Charlene is our site technical manager at Vegco, our operation in southern Australia. Charlene has extensive experience from her days with Geest in South Africa and has been instrumental in leading change in our technical capabilities both in the factories and in the field.

A: Rob: There are fundamental issues, the market gets shorts and prices go up. When you can buy a lot cheaper, the pressure is put on the supply chain. Our customers know with us there is no compromise. We’re not perfect; we’re becoming more and more firm. If a product doesn’t make our standard, it’s out.

Q: When the market fluctuates and you do have shorts, have you had to resort to growers outside of your contractual arrangements. And if so, what food safety precautions do you take?

A: Rob: It’s not a perfect world and the market gets short. If we have to get product from a grower we don’t have a history with, we don’t have time to go down to the farm if we require it instantly. It would only be an emergency supply of two weeks, and the grower must show its own farm quality certification and recent microbiological tests for food safety. When all is said and done, even if we need product in a hurry, we need verification first. We try to get it from a market agent we have approved. We have a list of market agents that have traceability and are all approved in HACCP food quality standards. And even if I had to buy from a market agent we have an idea of quality assurance. Sure it’s not up to the same standard of our liaisons with contract growers. But it’s nothing like getting from the back of a truck.

The fresh-cut business is only 12 years old here, and it was actually difficult to find growers to put in the protocols we were demanding. In the early days, it was common to see uncomposted manure used extensively in the growing regions. We put in this rule, no uncomposted manure used and in fact lost growers because of that.

Q: So your company was actually involved in setting high food safety standards from the beginning?

A: Rob: That first WQMS, we actually played a part in what those protocols were. We were on the advisory committee to enforce the requirements. All suppliers to Woolworths had a two-year period to get in line. If you didn’t conform than you didn’t supply.

This is what Tim York and Dave Corsi [Read Pundit Coverage of the Buyer-led food Safety Initiative here] are trying to do, to take a stand that they’ll go without the product if it doesn’t meet a certain standard. To say to suppliers, “This what you’ve got to do or we don’t buy from you.”

A: Felicity: For our business food safety is fundamental to our company values which coincide with a healthy safe workplace for our people. Safety really drives this commitment and is fundamental to the organization. As a family business we live by our values. As Rob alluded to, that has cost us some growers, but at the end of the day, we believe that is the key to managing business risk. Speaking from a third generation point of view, family is a priority of ours and the OneHarvest family of 650 families contribute to the success of this business. It’s the key driver, the platform for our business.

A: Rob: The battle in produce is against the Unilever’s, Nestles’, Kraft’s and Sara Lee’s. Those big companies are trying to infringe on the fresh area with snack foods and meal opportunities. And this whole safety thing is taken for granted. We have to make food safety a given. It’s non negotiable.

So much food for thought in this wide ranging piece:

“The point of difference is with the U.S. — Retailers in Australia typically sell products that are private label, 99 percent are private label with very few branded products in produce. They are quite protective about their brand.”

As with our discussions with the British Retail Consortium, we see again that it is the protection of brand equity that has driven retailers to take control of food safety efforts in these countries. U.S. retailers, often emphasizing branded product, don’t have the same motivation.

Though private label is picking up fast in the U.S. produce industry, one wonders how many retailers are really ready to take on the job of protecting the house brand?

“…six years of historical field and raw material testing, we’ve learned that certain growing regions present issues with downfall and other areas are stable. If we have a heavy downfall in a particular area with issues, we are constantly looking ahead of the curve.”

As we mentioned in our piece, Task For Center For Produce Safety? Pathogen-Testing Data Collection, this type of data can be crucial to food safety. It should be collected and analyzed on an industry-wide basis, truly a great project for the new Center for Produce Safety to undertake.

“We find that our bug counts, for example, rise particularly in the heat of summer and go down in winter.”

Why has Salinas been hit with outbreaks but Arizona has not? This summer/winter issue may provide some important clues as we discussed in the Pundit Special Science Report.

“It’s not a perfect world and the market gets short. If we have to get product from a grower we don’t have a history with, we don’t have time to go down to the farm if we require it instantly. It would only be an emergency supply of two weeks, and the grower must show its own farm quality certification and recent microbiological tests for food safety. When all is said and done, even if we need product in a hurry, we need verification first. We try to get it from a market agent we have approved. We have a list of market agents that have traceability and are all approved in HACCP food quality standards. And even if I had to buy from a market agent we have an idea of quality assurance. Sure it’s not up to the same standard of our liaisons with contract growers. But it’s nothing like getting from the back of a truck.”

Rob is nothing if not an honest man, and what he is really saying is that the best laid plans of mice and men can go astray in this produce industry of ours. So each food safety plan has to include a Plan B and a Plan C — what are you going to do, when you can’t do the ideal?

Even while the Pundit was pushing for tougher standards in Salinas, the fear was that it might all be meaningless. It is easy to declare that one won’t buy from land that has been flooded — right up to the day the whole valley floods.

The OneHarvest team at least has a plan B and is wrestling with the realities of the business.

This is what Tim York and Dave Corsi [Read Pundit Coverage of the Buyer-led food Safety Initiative here] are trying to do, to take a stand that they’ll go without the product if it doesn’t meet a certain standard. To say to suppliers, “This what you’ve got to do or we don’t buy from you.”

Yes and very few buyers came along for the ride. If we have food safety problems in the future, one reason will be that many buyers sent a message that there were things more important to the department than selling only the safest produce to their customers.

The battle in produce is against the Unilever’s, Nestles’, Kraft’s and Sara Lee’s. Those big companies are trying to infringe on the fresh area with snack foods and meal opportunities. And this whole safety thing is taken for granted. We have to make food safety a given. It’s non negotiable.

This is a team with its eye on the ball. As we detailed most recently in Sara Lee and Kraft Tie In To Produce, there are many companies out there eyeing the consumer’s food dollar and they are not content to let produce vendors own the fresh card.

We have so much going for the industry with refreshing, delicious and healthy products that we would truly be guilty of gross stupidity if we allow this food safety issue to fester.

Many thanks to Rob and the One Harvest team for being so frank and so generous with their time. Rob probably got involved with U.S. produce trade associations as he thought that he and his executive leadership could learn from the U.S.

Little did he realize how much we can learn from him and his team.

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