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AGRINOTES & NEWS FOR May 10, 2007

THIS ISSUE:
They should be harvesting asparagus not mowing it, but that's the only option left for some Michigan asparagus growers who are experiencing shortages for farm labor. During the harvest season from now to mid-June, asparagus spears emerge from the soil every few days, meaning within a year a field can be harvested 20 to 30 times. For more information, contact Ryan Findlay (800) 292-2680, ext. 2025.

Why do consumers buy the food they do? Is it price? Is it taste? Could it be nutritional value? What about packaging? Jackson County lamb producer Rex Hannewald was hungry for answers to these and many other questions, and he got his fill as one of 50 participants who took part in a Michigan Farm Bureau (MFB)-sponsored bus trip to the Food Marketing Institute's supermarket industry trade show in Chicago on May 7. For more information, contact Bob Boehm (800) 292-2680, ext. 2023, or Ernie Birchmeier, ext. 2024.

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Scenes from the Food Marketing Institute's supermarket trade show
Top, Jackson County lamb producer Rex Hannewald chats with a representative from a Maine cat food company - one of several pet food companies exhibiting at the show this year. The Hannewald farm is in the process of diversifying and branching into the growing pet food business.

Center, sales people from Jamaica meet with a representative from Michigan-based Eden Foods, Inc., to discuss opportunities to distribute Eden's organic food in their island country. The trade show reflected the soaring popularity of the organic food market.

Bottom, cross-branding between food and non-food companies and emphasis on a product's health benefits continue to be industry trends. Here, Crayola shows off "Color Coolerz," fruit-flavored bottled water that is naturally flavored and vitamin enhanced.

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Labor shortage makes some asparagus growers resort to mowing fields
Practice is 'drastic measure' that cuts into overall crop production
Contact: Ryan Findlay, (800) 292-2680, ext. 2025

LANSING, May 10, 2007 - They should be harvesting asparagus not mowing it, but that's the only option left for some Michigan asparagus growers who are experiencing shortages for farm labor.

During the harvest season from now to mid-June, asparagus spears emerge from the soil every few days, meaning within a year a field can be harvested 20 to 30 times.

The quick-growing crop is primarily harvested by hand, so if there isn't a work force to do the job, growers are often forced to forego any profit from that harvest and mow the field to allow for new growth in a few days - with hopes they'll have a good supply of workers by then. "You mow it to slow it," growers will say.

However, each mowing costs the grower, on average, 2.5 harvests, so growers who were mowing their fourth or fifth harvest this week will likely lose about 15 percent of their total crop, said John Bakker, executive director of the Michigan Asparagus Advisory Board.

It's a drastic measure that cuts overall production, but there's little choice for some farmers who have trouble getting labor into the fields, he said.

"Growers are saying that if they need four crews, they're getting three," said Bakker. "Some of them are getting less than half the labor they need, and so they're mowing."

The situation is clear evidence of the need for immigration reform, said Ryan Findlay, Michigan Farm Bureau associate legislative counsel.

"Perfectly good fields are going unharvested, but it doesn't have to be this way," said Findlay. "For years guest workers have provided the work force and the specialized skills necessary to sustain Michigan's agriculture industry. With a better approach to securing guest workers we can maintain this important link in our food supply chain.

"The U.S. Senate plans to discuss immigration next week, and Farm Bureau is urging senators to make a guest worker program part of that discussion and to see to it that the program can fix short-term labor challenges as we're experiencing in Michigan now as well as those predicted for the long-term."

Sarah Greiner, co-owner of Todd Greiner Farms near Hart, said the farm hasn't had to mow yet, "but we're hearing that about 10 percent of the asparagus acreage is being mowed."

In Berrien County, asparagus grower Rodney Winkel said so far he's had enough seasonal labor to pick asparagus for processing markets, but he's had to send five year-round employees to the fields at the expense of other vegetable and fruit crops that need herbicides and other spray applications.

"I just hired five or six people in the last couple days, and we're hearing that some citrus or other crops in Florida are finishing up, so we expect to have a few more on their way," Winkel said. "But in the meantime, everyone is working longer hours. We're picking from 7 a.m. to 6:30 p.m., and are keeping up, but it will all catch up to us in June when we start planting vegetables and need 100 people we don't have."

Seasonal laborers know they're in high demand and short supply, Greiner said, and are demanding jobs in the relative cool and comfort of the packing barn.

"Most people would much rather pack asparagus than pick it, and we've had to increase pay for picking just to get them out there," she said. "That cuts into our bottom line."

If the situation remains as grim in future years, Greiner said, they'll have to invest more money in mechanical packing and pickers.

"We just installed a packing line that cut our labor needs there from about 24 people to 16, and we've looked at mechanical harvesters, but there's nothing out there we've seen that's proven to do a good harvesting job," she said. "But getting more automated may be the only solution we have. It's a huge investment, but when you look at the long run, it may be what we have to do."

At this point, the shortfall isn't expected to raise the price of asparagus for consumers, said Bakker.

"It's not going to make a price difference," he said. "I'm sure China or Peru will be more than happy to fill the void."

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Michigan group gets dish on new food marketing trends, products
Contact: Bob Boehm, (800) 292-2680, ext. 2023 or Ernie Birchmeier, ext. 2024

LANSING, May 10, 2007 - Why do consumers buy the food they do? Is it price? Is it taste? Could it be nutritional value? What about packaging?

Jackson County lamb producer Rex Hannewald was hungry for answers to these and many other questions, and he got his fill as one of 50 participants who took part in a Michigan Farm Bureau (MFB)-sponsored bus trip to the Food Marketing Institute's supermarket industry trade show in Chicago on May 7.

"These are the kinds of things you want to learn when you go to a food show like this," said Hannewald of Stockbridge. "How do all these thousands of companies gain market share? There's only so much food."

What's in a name?

The Hannewald farm has established a brand of lamb meat for human consumption under the name Hannewald Lamb. The farm is now branching out to also offer lamb products for the pet food market, and Hannewald is at a crossroads. Does he market his pet food products under the same brand name or a different one?

"We wonder if we shouldn't separate the two even though some of the people who buy the lamb meat for themselves to eat are the very same customer who will buy the pet food for their pets. Sometimes it goes hand in hand, and sometimes it's better to separate because it's confusing for the consumer," he said.

For advice, Hannewald looked to Eden Foods, Inc., one of the Michigan exhibitors at the show. Based near Ann Arbor, the company began with a small line of organic products such as grains and beans. Today it sells a diverse blend of products under the Eden label, including organic ethnic foods and bottled water.

"They (Eden Foods) were famous for one thing and now have a whole line of products. I asked if they feared the diversity would take away their identity. They didn't think so," said Hannewald. "(In the case of bottled water) they let the history of the brand name's strength carry another product."

Market trends

Hannewald's venture into the pet food market appears to be a good one based on the increasing number of pet food exhibitors at the trade show. Longtime show attendees observed many other noticeable trends, including growth in products touting health benefits such as Hershey's antioxidant chocolate and the cross-branding of food with non-food companies, including the Michigan-based HoneyTree, Inc.'s partnership with the Disney Co. to market Winnie the Pooh Honey. But no trend is bigger than the exploding market for organic food.

"The organic show continues to expand, and the companies exhibiting are becoming more sophisticated in their marketing," said Bob Boehm, manager of the MFB Commodity and Marketing Department.

"The growth in the organic segment far outpaces other food industry trends, and that growth does not go unnoticed by major food companies," said Boehm, as evidenced at the show by McCormick Foods' introduction of 22 additional organic herbs and spices.

Along similar lines, participants noticed a greater emphasis to "buy local" and "buy fresh."

"That makes us feel good as producers because we know we're on the right track," said Hannewald, adding that it appears "things are coming full circle and big conglomerates are trying to look small again."

Tom Kalchik, associate director of the Michigan State University Product Center for Agriculture and Natural Resources, said the idea that farms must be small to fit the "buy local/buy fresh" movement is a misconception. Large grocery chains wanting to tap into this market, he said, will need farms that can deliver large volumes.

Consolidation and competition

Outside of specialty markets such as organic products, there seemed to be fewer mainstream food companies exhibiting at the show - a sign of continuing consolidation in the food industry, according to repeat show attendees.

On the other hand, there were more foreign companies, including several from Mexico and China, sharing the trade show floor - a trend that many people on the trip found unnerving.

Kalchik said he noticed more foreign companies producing canned products, such as canned corn and beans.

"It's a little bit disconcerting," said Kalchik. "These are basic commodities we used to think we were good at producing here. It's a big threat to our traditional markets."

Non-traditional markets

Exploring new non-traditional markets is an objective of the trip, according to Boehm.

"At the show we saw continuing market segmentation within niche products. For instance, in meat snacks we saw more unique flavors, often reflecting ethnic tastes, and thicker and more moist cuts. In beverages we saw more examples of co-branding with non-food companies, such as Crayola crayon-inspired fruit-flavored bottled water for kids and more micro-brew offerings from the large brewing companies."

Of course, each individual on the trip had unique goals in mind, too.

Kimi Danford, of Dimondale in Eaton County, was among 10 MSU Product Center clients who took part. The Product Center helps farmers, business owners and entrepreneurs develop new products and ventures that add value to the state's agriculture and natural resource commodities.

A Realtor by trade, Danford makes flavored dessert sauces and markets them under the brand "Green Barn Llama Farm," the name of her hobby farm which is home to five llamas.

Danford hoped to find leads on jar and label suppliers at the show, as well as tips on how to expand into Web sales and wholesale marketing for specialty stores.

Kalchik said the show is a good opportunity for Product Center clients like Danford "to see new trends up front and gain exposure to companies already in business." Case in point, Kalchik said he met a woman from Virginia who is a former East Lansing resident and runs a business selling herbal party dips. Her business began humbly by mixing spices in her kitchen. Kalchik asked if Product Center clients could call her with questions, and she agreed.

"This is the kind of networking that can happen," he said. "It's very hard to start a new business. Product Center clients can talk to somebody whose gone through the initial stages and maybe learn some shortcuts or get ideas. It's a good learning experience."

Sara McGuire, of Ellsworth, was at the opposite end of the spectrum - scoping out merchandise to stock store shelves rather than hunting for shelf space. She runs a farm market out of a renovated barn on her family's fruit farm in Antrim County.

The market sells cherry, asparagus and apple products, and McGuire was looking for new products to add to her existing inventory. McGuire said she left the show with some good possibilities, including popcorn and dipping mustard, along with licorice, candy and pretzels that can be manufactured with her market's label.

Carole Lawrence, a Barry County Farm Bureau member from Hickory Corners, was impressed by the apple products produced by West Michigan-based Peterson Farms Inc., of Shelby. The company sells sliced apples with an extended shelf life in convenient individually wrapped packages.

Lawrence hopes to expose more Michigan customers to the home-grown product this summer by making the apple slices available at a "Taste of Michigan" food sampling event held in conjunction with the Barry County Fair.

As well, she walked away with business cards from out-of-state exhibitors who are looking for suppliers of fresh hot peppers and tomatoes - a sales opportunity she intends to share with fellow Michigan farmers.

Editor's Note: See the Quick Facts section in this issue of AgriNotes and News for interesting facts about the supermarket industry from the Food Marketing Institute.

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AGRITIPS:
MFB grows work force with Tremble in northeast, Meyers in Lansing
Two new faces will soon join the employee ranks of the Michigan Farm Bureau (MFB), the state's largest general farm organization. Effective May 16, Karen Tremble, based in Standish, will become the northeast regional representative, servicing county Farm Bureau members in Arenac, Gladwin, Clare, Iosco, Ogemaw, Roscommon, Alcona and Alpena counties. For the past 10 years Tremble has been employed by the Michigan Farm Radio Network, where she has worked her way up from assistant farm director to farm director to her current position as marketing director. In 2001 she received MFB's prestigious Agricultural Communicator of the Year award in recognition of her outstanding broadcast work in covering and promoting the Michigan agriculture industry. Also effective May 16, Karen Meyers, of Portland, will assume the newly created position of business manager for the MFB Printing Services Department at MFB's Lansing headquarters. Most recently, Meyers served as the advertising and marketing systems manager for Greenridge Realty, Inc.
Contact: Jill Corrin (800) 292-2680, ext. 6585

Weather recovery fund established for Kansas farmers with losses, damage
The Kansas Farm Bureau has established a farmer/rancher weather recovery fund to assist farmers and ranchers who have suffered loss or sustained damage due to severe weather May 4-6, which included a tornado that leveled the community of Greensburg. Farmers and ranchers throughout southwest-central, central and northeastern Kansas are dealing with the aftermath of tornadoes, high winds, excessive rainfall and flooding. This includes loss and/or severe damage to homes and outbuildings; livestock loss; crops damaged or in some cases completely obliterated; as well as damaged or destroyed farm equipment, fencing and irrigation systems. County Farm Bureau organizations, Farm Bureau members and others interested in assisting may send donations to: Kansas Farm Bureau Weather Recovery Fund, ATTN: Accounting Department, 2627 KFB Plaza, Manhattan, KS, 66503. Donors may designate a particular county, area or type of need they would like to see addressed.
Contact: Jill Corrin, (800) 292-2680, ext. 6585

Federal ruling suspends planting of biotech alfalfa seed
A federal judge has ruled that farmers must stop planting Monsanto's Roundup Ready alfalfa seed until the U.S. Department of Agriculture thoroughly assesses the potential for cross-contamination with conventional alfalfa. The ruling makes permanent a temporary order announced in March and marks the first time a federal court has overturned USDA approval of a biotech seed and halted its planting. Advantageous for weed control yet safe for humans and livestock, Roundup Ready alfalfa seeds contain genetic material that make the plants resistant to Monsanto's Roundup herbicide. According to Michigan State University, 2,000 acres of Roundup Ready alfalfa seed were planted in Michigan in 2006. "This ruling cuts off alfalfa growers' access to new technology that has already been approved for the market," said Bob Boehm, manager of the Michigan Farm Bureau Commodity and Marketing Department. "There's concern that this decision could be precedent-setting and negatively impact other biotech crops along with continuing advancements in modern food production." The court order does not stop the harvesting of Roundup Ready alfalfa that already has been planted, but requires segregation of the crop immediately after harvest. As well, farmers must disclose field locations where the crop was planted. Monsanto has said it might appeal the decision.
Contact: Bob Boehm, (800) 292-2680, ext. 2023

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MICHIGAN CROP WEATHER:
Scattered rain showers slowed field activities for the week ending May 6, according to the Michigan Field Office of the U.S. Department of Agriculture's (USDA) National Agricultural Statistics Service (NASS). See Table 1 for soil moisture levels.

Corn planting continued as top priority on select dry fields. Soybean planting continued on a limited basis. Oat planting neared completion, as evidenced in Table 2. Winter wheat crops continued to progress well in most fields, but farmers considered converting some poor fields to another crop. Alfalfa growth looked very good. Sugar beet planting continued with some emergence from early plantings.

In the vegetable sector, asparagus harvest began on a limited basis. Carrot planting continued where weather permitted. Celery planting continued on schedule. Early planted cabbage was getting established. Potato planting continued, as did sweet corn planting.

The USDA-NASS-Michigan Field Office can be reached at (517) 324-5300. This information is also available online at http://www.nass.usda.gov/mi.

Table 1 - Soil moisture for week ending 05/06/2007
Stratum: (Very Short, Short, Adequate, Surplus)
Topsoil: (2, 4, 75, 19)
Subsoil: (1, 6, 77, 16)

Table 2 - Crop Progress for week ending 05/06/2007 (percent)
Crop: (This Week, Last Week, Last Year, 5yr. Avg.)
Asparagus, harvested: (5, 0, 24, 13)
Barley, planted: (39, 18, 67, 55)
Corn, planted: (31, 9, 58, 42)
Oats, planted: (71, 57, 86, 79)
Potatoes, planted: (25, 21, 40, 28)
Soybeans, planted: (7, 2, 23, 15)
Sugar beets, planted: (88, 75, 95, 95)

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QUICK FACTS:
Supermarkets

While Piggly Wiggly was the first self-service store opened in 1916, the first supermarket to open was King Kullen Grocery Company in New York in 1930.

Based on 2006 data, there are 34,019 grocery stores in the United States. In total, grocery stores boasted $499.5 billion in sales last year.

A typical supermarket carries an average of 45,000 items.

Consumers make an average of 1.9 trips per week to the supermarket.

The majority of grocery store customers shop on Sunday between 8 a.m. and 5 p.m.

Supermarkets began electronically scanning products in 1974. The first item scanned in a commercial environment was a pack of Wrigley chewing gum in Marsh Supermarkets on June 26, 1974.

Retailers are responding aggressively to diverse and changing customer demands and are offering meal solutions in multiple forms, including:
  • Hot-service counters, 89.2 percent
  • Self-service refrigerated cases, 83.8 percent
  • Made-to-order sandwiches, 71.6 percent
  • Soup bars, 67.6 percent
  • Catering, 62.2 percent
  • Separate checkouts for prepared foods, 58.1 percent
  • Salad bars, 56.8 percent
  • Sushi stations, 52.9 percent
  • Snack/juice/coffee bars, 50 percent
The supermarket industry continues to reach out to fast-growing market niches. As many as 83.9 retailers offer ethnic foods and 72.4 percent feature a natural/organic food aisle or section.

Source: Food Marketing Institute


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