PACA: Allocation of Risk of Loss from Romaine Food Safety Alert Depends on Terms of Sale

November 26th, 2018

The advisory warning issued last week about an E. coli outbreak in romaine lettuce has triggered numerous questions regarding the legal ramifications between seller and buyer with any affected romaine that was already received, or in-transit, or being prepared for shipment. 

The allocation of the risk of loss depends on the terms of sale. For example, for produce shipped on F.O.B. contract, the risk of loss passes from the seller to the buyer once the seller delivers the produce to the transportation carrier. Any damage or loss to the produce during transit that is not caused by the seller is the buyer’s responsibility.

Where the contract terms of sale are “delivered,” the risk of loss is not transferred from the seller to the buyer until the produce is delivered to the contract destination. Any damage or loss to the produce during transit that is not caused by the buyer is the seller’s responsibility.

The U.S. Department of Agriculture’s Perishable Agricultural Commodities Act Division has provided the following scenarios to demonstrate the advisory warning’s impact on commercial sales contracts governed by the PACA:

“The scenarios are based on the assumption that the advisory warns U.S. consumers not to eat the affected produce that would otherwise meet contract requirements.

Scenario 1:  A seller contracts to sell produce to a buyer. Prior to shipment of the produce, the FDA issues an advisory warning that the produce is the subject of an E. coli outbreak.

In this instance the effect of the advisory warning renders the produce unmerchantable at shipment. Since the advisory was issued prior to shipment, the risk of loss remains with the seller.  If the seller ships the produce, the seller may voluntarily recall the produce based upon the advisory. If the seller decides not to recall the produce, the buyer would have a claim against the seller for breach of the warranty of merchantability and could reject the produce.

Scenario 2:  A seller contracts to sell produce to a buyer. After the buyer has received and accepted the produce, the FDA issues an advisory warning that the produce is the subject of an

E. coli outbreak.  In this instance, the advisory warning rendered the produce unmerchantable after it was received and accepted by the buyer.  Since the advisory was issued after the buyer received and accepted the produce, the risk of loss had shifted to the buyer who must pay for the produce. This result is supported by a legal decision involving Chilean grapes where the presiding officer held that a buyer must pay for the grapes although a “Stop Sale” directive had made all Chilean grapes unmerchantable. The presiding officer stated that the seller should not suffer this loss because the “Stop Sale” directive was issued two weeks after receipt and acceptance of the grapes.

Scenario 3:  A seller contracts to sell produce to a buyer. While the produce is in transit from the seller to the buyer, the FDA issues an advisory warning that the produce is subject to an E. coli outbreak.  In this scenario, the advisory warning renders the produce unmerchantable while in transit from the seller to the buyer. The advisory establishes a breach of the warranty of merchantability.  However, resolution of this scenario depends on which party bears the risk of loss which, as discussed earlier, is dependent on the contract terms.  If the terms are F.O.B. and the produce is in transit, the buyer bears the risk of loss in transit and must pay for the produce. If the contract terms are “delivered” or “delivered sale,” the seller bears the risk of loss in transit, and since the buyer in this situation has yet to receive the produce, the buyer would likely be able to reject the produce because the risk of loss rests with the seller.

These scenarios discuss the possible impact of an FDA advisory on produce contracts, but outcomes may vary depending on specific terms entered into by the parties.”

For more information on contract obligations, read PACA Guidance on Commercial Contracts Because of FDA Advisory or reach out to Western Growers’ Trade Practices and Commodity Services Department: Bryan Nickerson at (949) 885-2392, [email protected], or Matt McInerney at (949) 885-2263, [email protected]. To read Western Growers’ statement in response to the outbreak of E.coli, click here.

Pictures from Annual Meeting Now Available

November 1st, 2018

The 93rd Western Growers Annual Meeting brought together over 500 agricultural leaders to the J.W. Marriott Resort & Spa in Palm Desert, California, to engage with key decision makers in the fresh produce industry. Western Growers would like to thank all the attendees, sponsors and industry partners who made this year’s Annual Meeting a huge success.

Throughout the three-day meeting we were able to capture many priceless moments and would love to share them with you all. Click here to take a look at the pictures on our Facebook page; you may see some familiar faces!

The Burden of Proof to establish Normal or Abnormal Transportation

November 8th, 2018

When it comes to in-transit temperatures, it’s not always black and white to definitively establish if the shipment was affected by improper in-transit temperature maintenance.

When the transportation record (temperature recorder/Carrier Download) clearly documents temperature abuse for a sustained period of time, the shipper should have no problem enforcing its FOB contract. However, what happens when evidence does not clearly demonstrate the issue of abnormality of transportation service?

When a buyer makes a rejection to the shipper (regardless of the merits), the burden is on the seller/shipper to prove that transportation was abnormal.  This is important where the rejected goods are shown to have arrived in poor condition, and you, as the seller, wish to show that abnormal transportation voided the warranty of suitable shipping condition in order to show the rejection was actually wrongful, and without merit.

The problem is in what we often times refer to as the gray area, meaning that we have a shipment that arrives failing to make good delivery, however, the portable temperature chart and carrier download do not corroborate each other.

It is often a standard argument by the buyer, and eventually by the carrier, that there is an absence of any abnormality with the transportation service, and in the situation of elevated pulp temperatures and condition defects, it is often represented by the buyer and the carrier (many times without in basis in fact) that the condition reported at contract destination was the direct result of either improperly loading the product, or that the product was loaded warm.  This is where your cooling facility and shipping records come into play and can be vital in dispelling the contention that improper cooling was the cause of the damage.  We cannot emphasize enough the importance of taking the time to properly fill out and maintain shipping records.  A little extra time up front can save $’s in the long run.

You should never tender a shipment to the carrier without doing the following:

  • Make sure that you have recorded the pulp temperatures on the bill of lading and that the  carrier acknowledges (preferably by intiailing) those pulp temperatures at time of loading
  • Use a pre-load  and load check list (click here for an example) and have the carrier acknowledge
  • Allow carrier to observe pulping and loading of product and have them initial on the document
  • Have the carrier acknowledge the placement of the temperature recorder
  • Maintain cooling records should questions arise after-the-fact
  • Always follow proper loading procedures to ensure the best possible air-flow
  • If possible,  many facilities have a video of the loading process

Be that best in class shipper by implementing SOP’s for proper loading which will pay dividends with reduced claims and contract disputes.

While it is never easy to resolve this type of dispute with your customer and/or carrier, without establishing a set of guidelines, and documenting each step of the way, you are far less likely to prevail.

Please contact Western Growers with any questions or call with any real time need for assistance.  Bryan Nickerson (949) 885-2392 [email protected], Ken Gilliland (949) 885-2267 [email protected], or Matt McInerney (949) 885-2263 [email protected].

The Digital Edition of the November/December Issue of Western Grower & Shipper Is Now Available Online

November 8th, 2018

The November/December issue of Western Grower & Shipper is now available online.

This issue includes:

Bruce Taylor Deserves All the Credit

President Tom Nassif credits Taylor Farms’ Bruce Taylor and his vision for the development of the Western Growers Center for Innovation & Technology. Not only did Bruce come up with the idea for this technology incubator but he also provided the physical space and donations for funding.

Move Over Siri and Alexa, AgVoice Offers Speech-to-Text Technology Tailored to Ag

“Think Siri but for agriculture.”  AgVoice, where agriculture meets artificial intelligence. Bruce Rasa has completely revolutionized the Ag tech industry with the world’s first voice and data management start-up company that allows Ag professionals the freedom to work hands free.

Agricultural R&D is on the move as Restaurant Menus Get Healthier

In an effort to not only redefine “fast-food” but to also meet consumers’ demand for more fresh produce, companies are doing away with traditional artificial fast food and exploring healthier options to place on their menus. Due in part to research and design efforts, consumers will begin to see a shift towards new, creative fresh produce dishes on the menus of their favorite food chains.

Plant-Forward Concept Drives Meal Kit Firm

Sun Basket’s chief operating officer Don Barnett shares the company’s point of differentiation with Western Grower & Shipper. As one of the top three meal kit firms, Sun Basket takes pride in creating meals that are both healthy and delicious. Don Barnett takes us through the evolution of Sun Basket and how this company is the perfect fit for produce suppliers.

To read other articles included in this issue click here.

For inquiries regarding Western Grower & Shipper magazine, please contact Stephanie Metzinger at (949) 885-2256.

Western Growers Insurance Services Welcomes Three New Employees to the Team

November 15th, 2018

Western Growers welcomes Peter Mehta, Peter Vlahos and Preeti Nangia to our Insurance Services team.

Peter Mehta will be serving as our new Employee Benefits Regional Sales Director in our Fresno office, working with our new and established Valley-based sub-brokers. After earning his bachelor’s degree in business at Fresno State University, Peter began working for AETNA and eventually began his career working with LISI where he has spent the last 15 years perfecting his craft.

Peter Vlahos, a Chicago native and USC alum, is our new Commercial Lines Producer based out of Sacramento. Having spent the last 15+ years in commercial lines sales, Peter possesses all the skills necessary to take over our Sacramento area book of business. He is also teaming up with our benefits producer, Paul Barry, to sharpen his “Western Growers Story.”

Preeti Nangia has been hired as the new Operations & Project Specialist at our headquarters in Irvine. After receiving her bachelor’s degree in business administration from the University of Delhi, she began her career as a business analyst. In addition to her career as a business analyst, she has also been a project administrator. As Operations & Project Specialist, Preeti will not only help manage our operational projects, but will also handle all administrative duties for the insurance services department.

Western Growers Insurance Services is a full-service insurance agency providing insurance products and services tailored for the agricultural industry, and our new team members are looking forward to serving Western Growers members with all their insurance needs.

Romaine outbreak and understanding commercial contract implications under PACA

November 28th, 2018

With the Advisory from U.S. Food and Drug Administration and Center for Disease Control announcements on November 20th and November 26th, the Trade Practices Department of Western Growers has fielded many calls from shippers on sales contract implications, rights, responsibilities and payment of fulfilled shipments. It is clear that this outbreak has triggered numerous questions regarding the legal ramifications between seller and buyer.

There will be several fundamental areas which need review for assessing responsibility under the terms and conditions of the sales contract for the allocation of the risk of loss. If the contract was FOB,  responsibility will be determined based at what point and time the FDA Advisory was issued.  Was it  prior to shipment, in-transit, or subsequent to arrival and acceptance at contract destination?  If the contract was delivered,  was the FDA Advisory in-transit or subsequent to arrival and acceptance at destination?  These aforementioned examples, as well as any other agreements such as what may be included in a vendor agreement,  will dictate your decision in making an informed business decision.  

The link, here, from the USDA, PACA Division provides general guidance that can provide a better understanding based on certain scenarios dependent on if the contract is FOB, Delivered, or a long term sell/buy arrangement.  The attached does not provide every imaginable situation,  so outcomes will depend on your individual set of facts.  This is for information purposes only and is intended to assist you in being informed as you engage your customers.

Please feel free to contact WG’s Trade Practices Department’s Bryan Nickerson at [email protected], 949-885-2392, or Matt McInerney at [email protected],949-885-2263.

FDA Publishes Environmental Assessment for Recent E.Coli Outbreak

November 1st, 2018

Today, the U.S. Food & Drug Administration released an environmental assessment that provides an overview of factors that potentially contributed to the contamination of romaine lettuce with E. coli that was implicated in a 2018 multi-state foodborne illness outbreak. The assessment can be found here and includes the background on the outbreak; the environmental team approach; and factors potentially contributing to the introduction and spread of E.coli; along with recommendations for the prevention E.coli in leafy greens.

FDA recommends that growers and processors of leafy greens:

  • assure that all agricultural water (water that directly contacts the harvestable portion of the crop) used by growers is safe and adequate for its intended use (including agricultural water used for application of crop protection chemicals);
  • assess and mitigate risks related to land uses near or adjacent to growing fields that may contaminate agricultural water or leafy greens crops directly (e.g. nearby cattle operations or dairy farms, manure or composting facility);
  • verify that food safety procedures, policies and practices, including supplier controls for fresh-cut processors, are developed and consistently implemented on farms (both domestic and foreign) and in fresh-cut produce manufacturing/processing food facilities to minimize the potential for contamination and/or spread of human pathogens;
  • when a foodborne pathogen is identified in the growing or processing environment, in agricultural inputs (e.g., agricultural water), in raw agricultural commodities or in fresh-cut ready-to-eat produce, a root cause analysis should be performed to determine the likely source of the contamination, if prevention measures have failed, and whether additional measures are needed to prevent a reoccurrence; and
  • Local in-depth knowledge and actions are critical in helping resolve potential routes of contamination of leafy greens in the Yuma growing region, including Imperial County and Yuma County moving forward. FDA urges other government and non-government entities, produce growers and trade associations in Yuma and Imperial Counties to further explore possible source(s) and route(s) of contamination associated with the outbreak pathogen and with other foodborne pathogens of public health significance. This information is critical to developing and implementing short- and long-term remediation measures to reduce the potential for another outbreak associated with leafy greens or other fresh produce commodities.

The findings in the Environmental Assessment appear to provide little new information but will be closely reviewed by Western Growers and others as part of our industry’s ongoing efforts to ensure food safety.

Immediately after the outbreak, Western Growers collaborated with the leafy greens industry to help lead a task force that would assess the source of the outbreak, as well as develop recommendations to prevent future outbreaks. While sources of contamination remain uncertain, the task force made concrete recommendations to industry for assuring water is safe and adequate, assessing and mitigating risk from adjacent land uses as well as others to address risks from equipment and climatic conditions.  These recommendations go well beyond the requirements of the FDA’s own Produce Safety Rule and have already been incorporated into the California and Arizona LGMA requirements. State auditors are now charged with verifying adherence to these new controls through announced and un-announced audits that occur throughout the seasons. The industry is furthering its efforts to learn more including through research guided by respected entities such as the Center for Produce Safety and working directly with California and Arizona academic teams. There is a strong and broad commitment to continually work to improve our food safety system.

Other related information posted by FDA today includes:

Input Needed for New Fresh Produce Labeling Regulation

November 6th, 2018

The new fruit and vegetable labeling requirement in the Safe Food for Canadians Regulations will affect ALL consumer packaged items and significantly impact the fresh produce industry. The labeling requirement will come into effect January 2019, and Western Growers and the Canadian Produce Marketing Association need your input to demonstrate how significant of an impact this regulation will have on the industry.

The Canadian Produce Marketing Association (CPMA) has been in discussion with the Canadian Food Inspection Agency (CFIA) regarding the potential impacts to business, including U.S. exporters, on this new requirement. To assist CPMA, a partner with whom Western Growers has worked closely with over many years, we urge you to please complete this very brief survey by November 16. 

With only five questions, this survey will only take a moment of your time. The data collected will assist CPMA in their further discussions with CFIA in an effort to reach a resolution to this costly regulation.

CLICK HERE TO COMPLETE THE BRIEF SURVEY

DPR Recommends Interim Restrictions on Use of Pesticide Chlorpyrifos

November 16th, 2018

The California Department of Pesticide Regulation (DPR) is now recommending new interim restrictions on the use of the pesticide chlorpyrifos. According to DPR’s announcement today, the new measures will provide increased protections from potential exposure to the pesticide, while DPR completes a formal regulatory process to list chlorpyrifos as a “toxic air contaminant” and develops permanent restrictions on its use.

The interim measures include:

  • Banning all aerial applications of chlorpyrifos.
  • Discontinuing its use on most crops. Chlorpyrifos will be restricted to “critical uses” on crops for which there are few if any alternative pesticides, as determined by the University of California Cooperative Extension. These critical uses are listed on DPR’s website.
  • Requiring a quarter-mile buffer zone during all allowed applications of the pesticide and for 24 hours afterwards.
  • Requiring a 150-foot setback from houses, businesses, schools and other sensitive sites at all times, regardless of whether the site is occupied at the time of application.

Chlorpyrifos is a critical part of pest management programs for farmers. It is used on more than 800,000 acres and more than 60 crops including tree nuts, vegetables, grapes, citrus, cotton and alfalfa. Western Growers continues to call on DPR to use real world scenarios and assumptions, appropriate models and all relevant studies in the continued review of chlorpyrifos so that final decisions are based on sound science and understood by the agricultural industry.

The complete interim restrictions recommended by DPR are available at: https://www.cdpr.ca.gov/docs/enforce/compend/vol_3/append_o.pdf.

Embrace the Changing Season with Western Growers Trade Practices and Commodity Services Department

November 21st, 2018

As we celebrate Thanksgiving tomorrow and begin to phase out 2018 and welcome the new year, there will be some changes also taking place here in the Western Growers Trade Practices and Commodity Services department.

With the retirement of Tom Oliveri earlier this year, the TommyO blog was renamed Produce Insights, and throughout this year it has been my pleasure to be able to lend my 42 years of experience and continue the long tradition of providing members with education about fresh produce sales transactions.  While my main focus has been on transportation and international trade issues, I have worked alongside both Matt McInerney and Tom Oliveri assisting members with PACA and DRC related issues for many years.  In fact, it is Matt McInerney who trained and provided guidance to both Tom and I over these many years.

Now after nearly 42 years at Western Growers, I will be retiring on January 4, 2019. Over the past few months you no doubt noticed that many of the Produce Insight blogs have been penned by Bryan Nickerson.  Bryan started with Western Growers in June of 2014.  Bryan has been working closely with both Matt and me and is now well prepared as the Manager of the Trade Practices and Commodity Services Department, providing you with real time guidance when issues arise over sales transactions.  With Bryan at the helm and Matt McInerney providing oversight, the Produce Insights blog and the Trade Practices and Commodity Services Department will continue providing members with expert real time advice and assistance focusing on the many needs of our Western Grower members’ sales staff.

I have much to be thankful for and I wish you and the produce industry continued success in the future, and thank you for allowing me to serve you as a team member at Western Growers.

November 15 CPS Research Webinar Breaks Down All Things Produce Food Safety

November 6th, 2018

Western Growers is joining forces with the Center for Produce Safety, Produce Marketing Association and United Fresh Association to present the CPS Research 2018: Putting Research Into Practice Webinar on November 15 at 1:00 pm ET.

Western Growers hosted a webinar on July 2nd to discuss research findings and trends presented at the 2018 CPS Research Symposium in Charlotte, North Carolina.

However, during this upcoming free webinar we will help you understand how emerging research may affect your business strategies and impact your bottom line. We will also break down the key findings discussed in both the presentations and research projects such as equipment design, sanitation strategies as well as testing and produce safety programs.

Don’t miss this opportunity to learn how today’s findings will influence tomorrow’s food safety.

WEBINAR DETAILS

Are You Interested in the latest in produce food safety?

Date: Thursday, November 15, 2018

Time:  1:00p.m. Eastern Time

Speakers:

  • Hank Giclas (Western Growers)
  • Dr. Bob Whitaker (PMA)
  • Dr. Trevor Suslow (PMA)
  • Bonnie Fernandez-Fenaroli (CPS)
  • Dr. Jennifer McEntire (United Fresh)

RSVP: Click here

November 29 Webinar Covers What You Need To Know For ACA Reporting Year 2018

November 12th, 2018

Pinnacle Claims Management, Inc. (PCMI) will host a webinar on Thursday, November 29, 2018, to cover upcoming changes to Affordable Care Act (ACA) reporting requirements, as well as provide an overview of the Pinnacle ACA Dashboard.

In this webinar, resident ACA expert and PCMI Compliance Counsel, Jon Alexander, will guide you through the 2018 updates to the tangled web of ACA regulations, mandates and reporting requirements.

When you attend, you’ll learn about:

• Affordable Care Act Updates
• Employer Mandate Update (Pay or Play responsibilities)
• Affordable Care Act Reporting Requirements & Updates
• Health Insurance Exchange Subsidy & Penalty Notices
• Deadline dates for Reporting to the IRS
• Potential IRS Fines
• Pinnacle’s ACA Dashboard Reporting Tool

WEBINAR DETAILS

Affordable Care Act Reporting: What You Need To Know For Reporting Year 2018

Speaker: Jon Alexander (Bio), Vice President of WGAT and PCMI Compliance and Program Manager for Covered California

Date: Thursday, November 29, 2018

Time: 11:00 AM – 12:00 PM PST

RSVP: CLICK HERE TO REGISTER

After registering, you will receive a confirmation email containing information about joining the webinar.

Participation is complimentary

For more information, contact Jon Alexander at (949) 885-2330.

Protect Outdoor Workers Exposed to Smoke from Wildfires

November 12th, 2018

With wildfires currently raging throughout California, Cal/OSHA is advising employers that special precautions should be taken to protect workers from hazards from wildfire smoke.

In a recent advisory, Cal/OSHA emphasizes how smoke from wildfires contains chemicals, gases and fine particles that can harm health. The greatest hazard comes from breathing fine particles in the air, which can reduce lung function, worsen asthma and other existing heart and lung conditions, and cause coughing, wheezing and difficulty breathing.

Guidance for employers and workers on working safely in conditions with heavy smoke caused by the wildfires is available on Cal/OSHA’s web page, including information for protecting outdoor workers, details on how to protect indoor workers from outdoor air pollution, and frequently asked questions about N95 masks.

When employees are working outdoors where the air is affected by wildfire smoke, employers are required by Cal/OSHA’s standards on Control of Harmful Exposure to Employees and Respiratory Protection to determine if the outdoor air is a “harmful exposure” to employees. Exposure is harmful when the pollution or contaminants in the air cause (or are likely to cause) injury, illness, disease, impairment or loss of function. 

When exposure to wildfire smoke is considered harmful, employers are required to take the following measures to protect workers:

  • Implement feasible modifications to the workplace to reduce exposure. Examples include providing enclosed structures or vehicles for employees to work in, where the air is filtered.
  • Implement practicable changes to work procedures or schedules. Examples include changing the location where employees work or reducing the amount of time they work outdoors.
  • Provide proper respiratory protection equipment, such as disposable respirators, if the previous measures are not feasible or do not prevent harmful exposures. 
    • To filter out fine particles, respirators must be labeled N-95, N-99, N-100, R-95, P-95, P-99, or P-100, and must be labeled as approved by the US National Institute for Occupational Safety and Health (NIOSH).

Cal/OSHA helps protect workers from health and safety hazards on the job in almost every workplace in California. Cal/OSHA’s Consultation Services Branch provides free and voluntary assistance to employers to improve their health and safety programs.

Additionally, Western Growers Insurance Services can help members take steps to protect their properties and avoid fire losses. Click here for information on risk protection insurance and two coverages that apply during a wildfire crisis—crop Insurance and weather risk. Click here for actions you can take to reduce the chance of fire affecting your home or business.  

Comments Needed for Proposed Changes to H-2A Forms

November 20th, 2018

Last May, the United States Department of Labor (DOL) along with the Department of Agriculture (USDA), the Department of Homeland Security (DHS) and the Department of State, announced a coordinated effort to modernize and streamline the application process for the H-2A temporary agricultural visa program. This is welcome news to our industry.

On October 25, 2018, DOL proposed changes to the H-2A temporary agricultural visa program application forms, instructions and information collected during the H-2A process. DOL seeks public comment by December 24, 2018, related to the following revisions:

Application Form (ETA-9142A)

The H-2A application form serves as a basis for determination that qualified U.S. workers are unavailable to perform necessary labor and that U.S. wages will not be adversely affected by the employment of temporary H-2A workers. The proposed changes to the form eliminates the need for duplicative information on multiple forms, and replaces some paper certifications with electronic options, ultimately saving precious time previously spent waiting for mail.

Form Appendix A

Appendix A is used by employers to attest that they will comply with all requirements of the H-2A program. Changes in the appendix include updating such language as “there are no U.S. workers available” to “there are insufficient U.S. workers available.” The changes would also remove unnecessary duplication of information, particularly relevant when all proposed changes are incorporated within DOL’s iCERT Visa Portal System.

On November 9, 2018, DOL and DHS announced an additional H-2A program proposal regarding employer recruitment requirements. Comments for this proposed regulation are requested by December 10, 2018, for the following recruitment changes:

Recruitment

DOL is proposing a change to the required newspaper print advertisements, replacing them with online electronic advertisements. This is an effort to update, simplify, and modernize recruitment efforts, while still providing job opportunities to potential U.S. employees.

According to DOL, all proposed revisions will standardize and streamline the application process to reduce employer paperwork burden, while increasing efficiencies at the department.

As you know, H-2A regulations have a significant impact on agricultural labor, especially in the Western United States. Western Growers views these comments as positive incremental changes to improve the efficiency of, and reduce some of the costs associated with, the H-2A program. If you utilize the H-2A program and/or would like to share comments, follow the instructions below to file comments on the proposed changes. Please note that all comments made, including personal information provided through the process will be posted publicly on www.regulations.gov. Western Growers, in consultation with members, will also be filing comments on this important issue.

To submit comments specifically related to the forms and general instructions, please submit via email to [email protected] and reference OMB Control Number 1205-0466.

To submit comments related to the proposed recruitment changes (RIN 1205-AB90), CLICK HERE

For more information on the H-2A program, please visit the US Department of Labor Website.

Western Growers Statement in Response to Outbreak of E. coli

November 21st, 2018

IRVINE, Calif., (November 21, 2018) — In response to the recent food safety alert issued by the Centers for Disease Control and Prevention and the U.S. Food and Drug Administration linking an outbreak of E. coli O157:H7 to romaine lettuce, Western Growers President & CEO Tom Nassif issued the following statement:

“Our hearts go out to individuals and families impacted by the E. coli outbreak linked to romaine, and our romaine growers and handlers are cooperating fully with federal and state health agencies to identify the source of the contamination. California and Arizona growers place the safety of their produce above all else, and growers and handlers of romaine lettuce in these two states are governed by the most stringent food safety requirements anywhere in the country.

“In the meantime, it is important to acknowledge that a number of regions in current production were not harvesting or shipping romaine at the onset of the outbreak and, consequently, could not be the source of the specific E. coli strain identified in the illnesses. In light of this evidence, we urge the government’s health agencies to work with stakeholders to quickly narrow the scope of the investigation, and to remove these regions from the comprehensive advisory as soon as the safety of the public can be ensured.”

About Western Growers:
Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California, Colorado and New Mexico. Our members and their workers provide half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. For generations we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook

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‘Screen Fatigue’ Leading to Podcast Boom

November 1st, 2018

Screens are no longer optional. Whether you are at work or about to go to bed, you are most likely looking at one. As we are increasingly glued to our phones, screen fatigue is becoming more common. Society is looking for a break, and podcasts offer a refreshing alternative.

Nielsen reports that 48 million Americans listen to podcasts weekly. This is up six million from 2017. By way of comparison, more than twice as many Americans listen to podcasts weekly than watch the highest-rated television program, NFL Sunday Night Football (which has a viewership of about 20 million people).

Though podcasts have been around for the past 20 years, only recently has their popularity started to boom. Screen fatigue is a contributing factor, but through the development of technology, recording a podcast is now easier than ever. An increasing number of content creators are taking advantage of the fact that the cost-to-value ratio for podcasts is incredibly low. With a high-quality microphone and some setup time, a podcast can be started without much trouble.

Today’s accelerated internet speeds also allow for podcasts to be downloaded anywhere, very quickly, onto a phone and without interference. The same cannot be said about movies or television shows, as mobile devices are still too small for users’ viewing preferences. This makes podcasts ideal for sitting in traffic or super commutes. The immediacy that podcasts offer also meet the needs of millennials—the group that is on the verge of surpassing Baby Boomers as the nation’s largest living adult generation—who demand instant gratification.

Podcasts are booming and ag and food-related companies should care. With no indication that the number of listeners will slow down, podcasts represent an ideal platform to tell the “agriculture story.”

Here are three reasons why the rising popularity of podcasts could matter for your business:

 

1.  Podcasts are ideal for storytelling.

     Contribute to the conversation. As farmers and ag professionals who have boots on the ground day in and day out, your stories are what help draw people in, get them interested and invested in agriculture, and persuade them to be advocates on behalf of the industry.

     There is a lot of misinformation out there about agriculture. This includes distorted facts about growing practices, water use and crop protection; the very real labor shortage that the specialty crop industry is facing; and the reality that most of America’s farms are family owned and operated.

     Since podcasts are an audio-based platform, you are able to communicate directly and with more power than the written word alone. Listeners and subscribers have the opportunity to hear stories straight from you, the source, rather than reading the words and interpreting them on their own.

2.  Podcasts help you reach a new, targeted audience.

     Cut through the clutter. Though the number of podcast listeners is growing, there is still less competition in the podcast realm than there is with other content platforms such as blogs, videos and social media posts. Apple says that there are only around 550,000 unique podcasts, compared to the 440 million available blogs on the internet.

     Creating a podcast opens up opportunities to be found. Typically, when new listeners are looking for a podcast to subscribe to, they are searching out information on a specific topic. You, as farmers who are the experts from field to fork and everything in between, can fill that void. Podcasts allow you to reach the right people (the consumers who are open to learning more about where their food comes from), with the right information, at the right time.

3.  Podcasts trump video and text.

     Unlike videos or stories, podcasts do not need every ounce of your attention. They move with you and do not require for your eyes to constantly be watching a screen for fear of missing a crucial plot point. Podcasts are convenient, as they can be consumed while doing everyday tasks such as driving, exercising, brushing your teeth or doing the dishes.

     Life is lived on the move and if you move with your audience through podcasts, you will be able to connect with future AGvocates by educating, entertaining, informing and inspiring them.

 

Ready to embark on the podcast train? Western Growers can help. WG recently launched ‘Voices of the Valley,’ a podcast where WG Center for Innovation & Technology Lead Dennis Donohue interviews tech influencers and explores what’s challenging and new in agricultural innovation. Delivered weekly through iTunes – Apple Podcasts and Google Play Music, each episode of Voices of the Valley features insights from farmers, entrepreneurs, educators and technologists on new solutions for today and tomorrow’s challenges. Western Growers is well-versed in creating a podcast and can help create yours.

 

 

The Voter’s Conundrum

November 1st, 2018

The upcoming midterm elections are significant. While President Trump is not on the November ballot, citizens across the country will be casting their votes for congressional representatives who will either aid or impede the administration’s agenda. In large part, the success of President Trump’s next two years will depend on the political makeup of the House and Senate in the 116th United States Congress.

Conventional wisdom indicates that the Republican Party will falter come November 6. Historically, the president’s party loses congressional seats in the midterm election. Since 1938, the midpoint of Franklin D. Roosevelt’s unprecedented third term in office, the party of the president in power has lost seats in the Senate 75 percent of the time and the House 90 percent of the time [15 and 18 out of 20 midterm elections, respectively].

Sometimes, midterm elections are a repudiation of performance as congressional turnover tends to mirror the president’s job approval ratings; but, more often, they are simply a political manifestation of Newton’s Third Law of Motion: “For every action, there is an equal and opposite reaction.” Nothing motivates people to go to the polls like an adversary in the White House.

Will the trend continue this election cycle? Probably, but I think the magnitude of the “blue wave” will depend on the turnout in many rural districts. It is no secret that rural America helped propel Trump to the presidency in 2016. In counties smaller than 20,000 people, voters went for Trump over Clinton by a margin of more than two to one. In fact, counties all the way up to one million residents favored Trump over Clinton.

However, while President Trump’s policies have largely favored the business communities, his position on several key agricultural issues, such as international trade and immigration, may be eroding his support in rural and farming communities, causing many Western Growers members to face what I call the “Voter’s Conundrum.”

Regardless of which side of the aisle you find yourself, there may be moments where you find it difficult to support your party; or there may be particular races where you identify more closely with the candidate of the opposite party [or, as may be more often the case, the candidate of your own party is a verifiable fool]. The crux of the Voter’s Conundrum is this: In these situations, do you vote for your party or for the candidate, regardless of party?

Many times in my life, I have heard the seemingly sage political advice: “Vote for the person, not the party.” With more than four in 10 voters identifying themselves as independents in the most recent Gallup Poll, it appears that many Americans have bought into this nonpartisan ballot-casting philosophy. Without turning this column into a partisan voting guide, let’s examine the wisdom of this approach to executing our primary civic duty.

For a moment, imagine a political system where there are no parties, only candidates, each with their own political philosophies and positions on the issues. How would your voting decisions be based in this alternate universe? Without the influence of party designations, your choice would more than likely be determined by individual merit; undoubtedly, you would be more like to consider a candidate who may not align with all of your core values, but in your estimation is intelligent, measured and capable. On the surface, this would appear to be the preferable method for choosing our local, state and national representatives. Imagine if these types of elected officials ran our country?!

Now travel back to the reality you currently live in, the one with sharply-divided political parties and equally-divergent agendas. Let’s assume this otherwise qualified individual has been elected, with the help of your ballot, but they happen to represent the party opposite of your own. How might they cast their votes on monumental pieces of legislation, bills intended to chart the fiscal and social course of this country for decades to come?

Consider this statistic: Party unity voting has increased from around 60 percent in the 1970s to 90 percent today. In other words, Republicans and Democrats in both the House and Senate nearly always vote along party lines. Case in point, zero Democrats in either chamber voted for last year’s landmark tax reform bill, with only a handful of Republicans breaking ranks [mainly due to concerns over the increase in the federal debt].

This fact underscores the significance of party majorities in Congress, and hints at the fate of President Trump’s agenda should the Democrats retake control of the House or Senate in 2019. With nearly six dozen highly competitive seats in the House and nine toss up elections in the Senate [as of the writing of this column], every vote will count, perhaps none more than those in rural America.

So, as you cast your ballot, will you vote for the person or the party?

 

Danish Roots Run Deep at Arvin Farm

November 1st, 2018

BACKGROUND: It was in 1927 when twin brothers Viggo and Soren Stenderup emigrated from Denmark to the United States and found their way to the farming town of Arvin in the southern San Joaquin Valley. They got their chance to literally establish new roots after the Great Depression. “They were able to buy a farm from the Bank of Italy, which became Bank of America, in 1930 following what happened in 1929,” said Kent Stenderup, speaking of his grandfather and uncle and the financial crisis that put many farms in the hands of bankers.

LINE OF SUCCESSION: The second generation of Stenderups also featured a pair of twins as Viggo and his wife, Frieda, produced Verner and Gunner Stenderup in 1935. Today the third generation is in place with Verner and Gunner’s sons, Andy and Kent Stenderup, involved in the operation. At 83, Verner is also still in the picture. “He is our special projects manager,” says Kent.

On their 2,000 acres, Andy and Kent have a clear division of work with Andy handling all tractor work and equipment and Kent in charge of irrigation and the office.

CROP ROTATION: The two founding brothers started their U.S. farming career with grapes, cotton and alfalfa…crops that would form the backbone of Stenderup Farms through the first generation and well into the second. It wasn’t until Andy (Cal Poly San Luis Obispo) and Kent (Stanford) graduated from college and rejoined the family operation that the crop mix expanded.

“When I came back from Stanford, it was the classic case of the smart college kid trying to re-invent how we farmed,” Kent said. “I talked the family into planting iceberg lettuce. We disked the field. My grandfather said it was the first time ever that he received zero money on a crop.”

Today Stenderup Ag Partners, which became the official name of the company 30 years ago, grows a variety of permanent and row crops, split fairly evenly down the middle. On the permanent side of the ledger are juice grapes and almonds. The row crop side features carrots, fresh potatoes, sweet potatoes, processing tomatoes, garlic and onions.

CO-OP FRIENDLY: “We’re big believers in the co-op business model,” says Kent. “We belong to Blue Diamond for our almonds and Delano Growers Grape Products for our wine grapes. We also belong to an ag equipment co-op and an almond haulers co-op.  Even our bank—Farm Credit—is a co-op.”

The business partners are also active in the farm community as the 40-year membership in Western Growers attests. And Kent is the current vice chairman of the Almond Board. “My father and uncle served on various board. We believe in it,” Kent said.

THE 4TH GENERATION: It is too early to know whether the next generation of Stenderups will come back and run the family farm as did Kent and his cousin Andy, but at least Kent’s son John is in the business as a sales representative for C.H. Robinson. And John is certainly akin to following his dad’s footsteps, literally.

Over the last two years, John Stenderup has scaled the top two mountains in the world in Mount Everest and K2. Kent accompanied him to base camp on the Mount Everest climb and has been an emotional and financial supporter of the ambitious undertakings. After all, it was Kent who got John interested in serious hiking and climbing. “I enjoy the peace and serenity of hiking,” Kent said. “I introduced John to hiking and he took it and ran with it. You could tell early that he had the footing and was very comfortable climbing. One of the first hikes we did was Half Dome (in Yosemite).”

Kent still enjoys hiking, including going from rim to rim through the Grand Canyon and hiking Mt. Whitney, California’s tallest peak.

THE FUTURE: The Stenderups have been farming in Kern County for almost 90 years and Kent expects farming to take them quite a bit further down the road. At age 59, with a father still active at 83, Kent believes he has many years left helping to guide the operation. “I like our business model now, but it will change. It always does. Our family farming model works really well. We always confer with one another before making any major decisions. I can’t tell you what’s next, but I plan to be here. I’m still having lots of fun!”

 

 

WGCIT Sponsor: Taylor Farms “Bruce Taylor Deserves All the Credit!”

November 1st, 2018

So says Tom Nassif when speaking of the development of the Western Growers Center for Innovation & Technology.

The technology incubator, aimed at bringing farmers and entrepreneurs together to develop solutions for challenges facing production agriculture, is housed on the first floor of the Taylor Farms complex in downtown Salinas. That alone is worthy of recognition but even more importantly it was Bruce Taylor’s vision that led to the idea in the first place.

“He deserves all the credit in the world,” said Nassif, who is president and CEO of Western Growers. “At a board meeting when he was chairman (2014), Bruce invited John Hartnett of SVG Partners to make a presentation about what SVG was doing and what Western Growers could do to support the effort.”

That began the negotiations and launched the idea of an ag technology incubator in Salinas. The Western Growers board did vote to support the effort but “we wanted to be the sponsor. We wanted it to be the Western Growers incubator,” Nassif said.

In praising Taylor’s vision, Nassif said that Bruce came up with the idea, provided the physical space and also donated money to get it off the ground. He was joined by Vic Smith of JV Smith Companies as an early funder, which Nassif said was as important as anything else in getting the idea off the ground.

It is three years later and Nassif said reality has matched the vision. “It has been an unqualified success. We have far exceeded our expectations.”

He noted that at the beginning, “we thought that maybe we could get as many as 30 tenants with some using it as a hot desk when they were in the area. Now we have in excess of 53 tenants. They have attracted a lot of venture capital money and they are working on industry issues.”

He noted that Western Growers involvement has led to the AgSharks competition, which saw an unprecedented investment of more than $2 million in ag technology at WG’s 2017 Annual Meeting. “It was a resounding success. We are going to do it again this year. I don’t know how much investment it will attract but, at the minimum, the companies will be competing for $250,000 for the best ag innovation.”

From Western Growers perspective, Nassif said the WGCIT concept has already reached fruition. “We were never in it to make money,” he said. “What we wanted to do was create an environment to help solve some of the industry’s most vexing problems, especially in the area of water and labor. And that is what’s happening.”

He said entrepreneurs are working together and working with members on several different pilot projects addressing the industry’s problems. The effort has led to robust activity with regard to technology in the ag sector, including the excellent relationship Western Growers has forged with Forbes and its AgTech Summit held in Salinas for the past three years. He added that Dennis Donohue as the center’s lead and WG’s Hank Giclas, senior vice president of strategic planning, science & technology, have done yeoman’s work in advancing the effort and bringing parties together to work on the issues. He also said the industry at large has supported the concept and followed the lead of Western Growers in recognizing the value of technology and the important role it has to play in the survival and profitability of the fresh produce industry. He said investment is continuing and Western Growers is looking at many different opportunities in the ag technology space.

But Nassif came back to Bruce Taylor and reiterated that he truly made it possible. “The Western Growers Center for Innovation & Technology has become exactly what we had hoped it would be…and Bruce was the visionary.”

 

 

Move Over Siri and Alexa, AgVoice Offers Speech-to-Text Technology Tailored to Ag

November 1st, 2018

Think Siri, but for agriculture.

When Bruce Rasa first conceptualized the idea of a speech-to-text data service powered by artificial intelligence, he knew that he wanted to design it with and for food and ag professionals. Growing up, Bruce always had both hands full while working on his family’s 4,000-acre farm in Missouri. His family grew corn, soybean, wheat, hay and apples, and taking notes while knee deep in the field never got easier.

“I know, first hand, how painful the record keeping demands of a farm can be,” said Rasa. “This was my inspiration for creating AgVoice.”

AgVoice is the world’s first voice and data management start-up company that allows ag professionals the freedom to work hands-free while on-the-go. Using proprietary analytics and processing of raw voice files, anyone in agriculture can conveniently and safely capture data when both hands are occupied.

The startup’s mobile voice-interaction service officially launched earlier this year, and the initial response has been positive. In October 2017, S2G Ventures deemed AgVoice’s technology so promising that the venture capital firm offered the startup $250,000 in equity investment during Western Growers’ AgSharks™ Competition.

“AgSharks was a game changer for us,” said Rasa. “We had never seen an event where agtech startups can gain access to significant seed capital so quickly. The vast majority of investors we meet don’t have a deep understanding of agriculture so to be on a stage, being groomed by the best in ag, made a massive difference in our growth and ability to deliver a stronger product.”

 

HOW THE TECHNOLOGY WORKS

For the preliminary rollout, AgVoice is targeting farming experts that support growers, such as agronomists, food safety inspectors, plant breeders and advanced research and development teams. So far, the agronomists and plant breeders who tested the system have reported that the technology allows them to survey up to 30 percent more crops per day. They are now able to complete 300 to 400 plot inspections a day, compared to the 200 to 300 previously. AgVoice can also save on costs. In the case of professional plant breeder teams, it turns a two-man job into a one-man effort.

“Some of our clients require two plant breeders to go out into the field. One person has both hands inspecting the produce while verbally citing the findings and results. The other is listening, taking notes and filling out required food safety check lists,” said Rasa. “Our voice-first design enables one person to do it all.”

The mobile voice-interaction service was designed to achieve four unique features:

1.  Recognize Food and Ag Terms: Apple’s Siri and Amazon’s Alexa were developed to help consumers and do not always properly translate commonly used words on the farm. The AgVoice service is created with a lexicon that is ag-centric and is able to decipher agricultural terms, names and niche words.

2.  No Connectivity Required: In many ag operations, internet and cloud connectivity is either non-existent or intermittent. AgVoice sees a future in which the service could run on a smartphone, in an offline mode, without connectivity to match the realities of the ever changing environments of food production and agriculture.

3.  Immediate Corrections: No speech recognition software is perfect. However, with important tasks such as recording food safety data, every single word must be correct. AgVoice recognizes this discrepancy and has designed a system (patent pending) that empowers users in the field to correct checklists and notes on the spot. The technology allows workers to easily identify if the information is not accurate and immediately correct the data using their voice or via manual editing on the screen as a backup—so it always works in any environment.

4. Ease of Use: AgVoice’s technology is a voice-first design. Users are able to open the app on their phone and navigate the service using solely their voice.

“We made it so both hands are always free. Users can leave the phone in their pocket and not have to interact with the system until their tasks are completed,” said Rasa. “If the user wants to use an optional, wearable device like a noise-cancelling Bluetooth headset, we also offer those. They are on the market for around $100.”

 

PRIVACY AND FOOD SAFETY ARE TOP OF MIND

As the technology is being refined, features to help comply with new food safety standards are continually being added. AgVoice understands that to effectively and efficiently comply with the FDA Food Safety Modernization Act, proactive record keeping is a must. Prior to activating the technology, AgVoice works with clients to tailor the service to their needs. They meet with the specialists who will be using the service and build platforms and mandatory checklists based on their job requirements.

All information collected in the AgVoice service is completely protected unless the user chooses to share it. The “sharing” feature allows ag professional to easily share the completed checklists with teammates, company leadership and government regulators, among others.

“I’m a row crop kid from the Midwest who worked on my family’s farm day in and day out, so I understand how highly sensitive data can be,” said Rasa. “We guarantee that the speed and ease of capture and sharing is matched with the most secure privacy system.”

 

BREACHING THE SPECIALTY CROP SECTOR

A year and a half ago, AgVoice joined Western Growers Center for Innovation & Technology in hopes of working with the specialty crop industry to customize the technology for fresh produce growers.

“Joining the Center has been such an educational experience,” said Rasa. “We have learned so much about the challenges facing specialty crop growers and are now even more committed to helping and supporting them. The size and scale of this unique, specialty crop network of Western Growers doesn’t exist at our home base in Georgia, so we are thrilled to be here in Salinas at the epicenter of innovation.”

Since joining the Center, AgVoice has had the opportunity to interact with WG members through numerous events such as WG’s Annual Meeting and AgTechx, a recently launched initiative that brings technologists to growers. Moving forward, they hope to advance their technology to the next level and serve all of agriculture by continuing to partner with staunch supporters who share their vision.

For more information about AgVoice or its speech-to-text service, contact Bruce Rasa at (770) 265-2499 or [email protected].