2010 napmm conference dispatches from washington: upcoming nutrition and food safety legislation...

2010 NAPMM Conference

Dispatches from Washington: Upcoming Nutrition and Food Safety Legislation That Will Impact Your Business

Miriam Miller

Director of Membership

United Fresh Produce Association

March 25, 2010


Brief Overview of United Fresh

• Formed by 16 wholesalers in Chicago back in 1904, with our first official lobbying trip to Washington in 1905!

• “Uniting the Industry” has been goal since 1937 merger of shippers and receivers

• International Fresh-cut Produce Association joined the team in 2006


Brief Overview of United Fresh

• 1,200 corporate members in 30 countries– 7,000 individual members

• Commitment to serve total produce supply chain– Strong representation from each industry segment– Grower-Shipper, Fresh-Cut, Wholesaler-Distributor,

Retail-Foodservice Boards– Over 100 commodity, regional associations– Led by 40-member consolidated Board of Directors


Keys to Legislative Success

• Increase public confidence in the fresh produce industry

• Increase overall consumption of fresh produce

• Growing sales and profitability for the entire industry


Key Legislative and Industry Topics

• Food Safety

• Produce Traceability Initiative

• Federal Nutrition Programs


Why Food Safety?

• Overall government and public concern about food safety across all industries and commodities

• Potential for negative financial effect on our industry

• Bi-partisan issue gaining momentum in Washington


Devastating Effects of a Recall

• The FDA Salmonella Saintpaul advisory issued June 3, 2008

• Expanded nationally June 7, 2008• Sales of field and Roma tomatoes

plummeted 30.5 percent and 30 percent respectively

• Ultimately – tomatoes not even the source of the outbreak


Devastating Effects of a Recall


Consumer Crisis of Confidence


Consumer Crisis of Confidence

• Actively thinking about safety • Recognize the benefits of fresh produce, but

anxiety exists• act on their fears, take what they believe to be

“appropriate actions”• Significant market impact—immediately and

lingering concerns

“Long-term, this concern over produce safety—whether warranted by the facts or not—may be the greatest threat to increasing

consumption of fresh produce.”


Regulatory Bodies’ Concerns Related to Food Safety

““Of 110 recent outbreaks, 35% were Of 110 recent outbreaks, 35% were associated with fresh fruits and associated with fresh fruits and vegetables.”vegetables.” - CDC, August 2005- CDC, August 2005

““Fresh produce is responsible for Fresh produce is responsible for more illnesses, by far, than any other more illnesses, by far, than any other commodity we regulate.”commodity we regulate.”

– FDA, April 2006– FDA, April 2006


• Was a major focus of our public policy efforts in 2009

• Produce is an extraordinarily safe and healthy food– Over 1 billion servings of produce are

consumed daily in the U.S., without issue • Ensure public trust in a system of food

protection that can deal with rare problems without destroying public confidence

General Observations on Food Safety


What’s Coming: Food Safety Legislation and Regulation

• Action in Congress and White House– Prepare most comprehensive overhaul of food safety

laws in 70 years

• Regulatory action more aggressive– GAPs in spotlight has driven industry development of

guidance documents on leafy greens, melons and tomatoes

– Traceability programs will be a fundamental part of any food safety legislation

• Industry must work together and not have competing and conflicting views


Food Safety Principles

• Commodity Specific

• Science and Risk-Based Approach

• Recognize currently effective internal traceability practices

• “Gold Standards” vs. “Minimum Standards” at the federal regulatory level

• Import programs that recognize perishable nature of fresh produce

• Encourage adoption through entire supply chain


Food Safety Enhancement Act (FSEA, H.R. 2749)

• Sponsored by John Dingell (D-MI)• Introduced June 2009, fast-tracked and

passed in House by voice vote in July• Specifically affects FDA-regulated

facilities


Food Safety Enhancement Act

Facility Registration• Food is misbranded if manufactured, processed,

packed, or held in a facility that is not registered • Requires annual registration of food facilities• Directs the Secretary to collect an annual fee for

registration • Suspend the registration of any food facility for a

violation that could result in serious adverse health consequences or death to humans or animals



Food Safety Plan• Requires the owner, operator, or agent of a

food facility to: – (1) conduct a hazard analysis – (2) identify and implement effective preventive

controls – (3) monitor preventive controls – (4) institute corrective actions as necessary – (5) conduct verification activities– (6) maintain records



Food Safety Plan

• Authorizes the Secretary to require the submission of finished product test results

• Requires the facility to implement a food defense plan



• Establish scientific and risk-based food safety standards for fresh produce: – Fruit, vegetable, nut or fungus– Standards are reasonably necessary to

minimize the risk of serious adverse health consequences or death to humans or animals



Traceability• Establish a tracing system that enables the

Secretary to quickly identify each person who grows, produces, manufactures, processes, packs, transports, holds or sells such food

• Refusal of admission of articles that have not complied with the requirements of the food tracing system



Recall Penalties• Assess fees on each food facility in a

fiscal year that

– Commits a violation of the Federal Food Drug and Cosmetic Act relating to food or

– Has been subject to a food recall


Federal Food Safety PolicySummary of FSEA…..The Good

• Strengthened commodity-specific approach to produce

• Ensured that FDA would work with USDA, state departments of agriculture

• Enhanced the ability of fresh processors to develop individual HACCP programs without rigid one-size fits-all mandates

• Exempted produce from any duplicative requirements for country of origin labeling

• Assured equal treatment of imported and domestic produce in food safety standards


Federal Food Safety PolicySummary of FSEA ….. Needs work

Ensured tighter control of potential FDA geographic quarantine authority, requiring an imminent threat to take such action and coordination with USDA

• Capped registration fees for both facilities and importers

• Does not mandate FDA to establish “Fast-Lane” requirement for imports


Federal Food Safety PolicySummary of FSEA …..The Ugly

Registration fees need to be targeted to specific FDA activities related to food safety

Developing in law “categories of risk” is dangerous with trading allies and consumer confidence

Finished Product Testing Provision

Need a stronger outbreak management structure within FDA and throughout government

Geographic Quarantine provision is overkill


Federal Food Safety Policy

• FDA Food Safety Modernization Act (S. 510) – Sponsored by Richard Durbin [D-IL]

o Co-sponsored by Saxby Chambliss [R-GA], John Isakson [R-GA] and 12 other Senators

– Introduced March 2009, recommended by Health, Education, Labor and Pensions (HELP) Committee in November for full Senate consideration

– Specifically affects FDA-regulated facilities


H.R. 2749 and S. 510

Similarities• Both would require mandatory standards for

produce• Would require food facility to re-register with

FDA while unregistered facilities would be prohibited from introducing food into interstate commerce

• Would require a written and implemented food safety plan

• Would establish new industry fees


H.R. 2749 and S. 510

Similarities• Would grant mandatory recall authority,

administration detention (reason to believe) assess civil fines, suspension authority

• New regulatory requirements for imported food• Only tests conducted by Federal labs or

accredited non-federal labs could be used for regulatory purposes, and would require lab test results to be sent directly to FDA


H.R. 2749 and S. 510

Differences• House bill: requires annual re-registration

and fee. Durbin bill: bi-annual registration and no

fee.

• House bill: requires tracing system for food.

Durbin bill: has no similar provision.


H.R. 2749 and S. 510

Differences• House bill: requires importers and custom

brokers to register with FDA; importers to pay registration fee annually.

• Durbin bill: would not require registration, but would require fees sufficient to cover FDA administrative cost for Voluntary Qualified Importer Program.


Differences• House bill: authorizes Geographic Quarantine

Program. Durbin bill: does not have this provision.

• House bill: assesses civil penalties for each prohibited act Durbin bill: authorizes FDA to assess civil fines only for failure to comply with recall order

H.R. 2749 and S. 510


Federal Food Safety Policy• Senate is up next

– Passage out of the Senate HELP committee– Floor time was dictated by health care debate – this is

the next major issue

• Key policy areas to consider in Senate bill– Produce Specific Requirements– Traceability– Outbreak Investigation and Recovery– Hot Button issues: Quarantine Authority, Finished

Product Testing, Small farm exemptions


Food Safety – What Your Business Needs to Know

• Increased regulation is coming• Winning the battle of “one size does not fit all.”• Plan on scaleability, rather than exemptions

– “We are only as strong as our weakest link.”– All companies should plan on having a food safety

plan

• Opportunity to instill confidence in our consumers


Food Safety Action Plan – Continue Positive Momentum

• Bring the industry directly before Congress • Harmonization of GAP Audit Food Safety Standards

– Global Conference on Produce Safety Standards– Ultimately bring lower cost to industry audit expenditures

• FDA Town Hall Meetings• Leadership from United Fresh Food Safety & Technology

and Government Relations Councils• Provide industry with support through education training,

recall, FDA inspection and crisis communication support


Produce Traceability Initiative


Traceability in Produce Today

• Industry handles an estimated 6 billion cases of produce in the United States each year

• “One step forward and one step back” requirements of the U.S. Bioterrorism Act of 2002

• Since 1930 U.S. produce companies required to

retain records under PACA


Why PTI?

• Enhance overall supply chain traceability in speed and efficiency

• Significantly enhance our ability to narrow the impact of potential recalls or similar problems

• Build better transparency

• Common framework and nomenclature to identify produce cases

• Streamlined connectivity across the supply chain


Why PTI?

• Most companies have “internal” traceability programs, but not “external” traceability programs. – Internal Traceability = confidential or proprietary data

and processes companies use within their own span of operations to track/trace product.

– External Traceability = the data exchange and business processes that take place between trading partners to track/trace product.

• Whole-Chain Traceability = Internal + External traceability.


Produce Traceability Initiative Mission

• Adopt an effective whole chain traceability program– Incorporating the use of common standards – Linkage between current internal traceability

programs

• Intended to work with established standards


Produce Traceability Initiative Leadership

• Sponsored by United Fresh Produce Association, CPMA and PMA

• Steering Committee comprised of 54 organizations including: – Foodservice and Retailers– Distributors, Terminal Markets, Brokers, and Processors – Growers/Packers/Shippers – Industry Trade Associations


Produce Traceability InitiativeMilestones

• Brand owners obtain a GS1-issued Company Prefix and Assign 14-digit GTINs to all case configurations. Completed: Q1 2009

• Brand Owners provide (and maintain) GTINs and corresponding data to their buyers. Completed: Q3 2009

• Case packers provide GTIN and Lot # on each case in human-readable and GS1-128 barcode formats. Complete by: Q3 2010

• Each touch point in the supply chain reads and stores the GTIN Lot # of INBOUND cases. Complete in: 2011

• Each touch point in the supply chain reads and stores the GTIN and Lot # of OUTBOUND cases. Complete in: 2012


PTI – What Your Business Needs to Know

• Traceability is coming – will the industry set the standard or will the standard be set for us?

• Constant communication between steering committee and industry to make sure we’re on the right track

• You are not alone: www.producetraceability.org


Federal Nutrition Programs

• The Need for Drastic Change

• Victories Won

• Battles Still Being Fought


The Need for Drastic Change

• Obesity has been increasing to epidemic proportions over the past 25 years

• Today’s children may be the first generation with a shorter life expectancy than their parents

• Health care costs related to obesity top $150 billion every year

• Increasing produce consumption is no longer a business goal; it’s survival– For kids and national economy


% Overweight Children in U.S.

0

5

10

15

20

1966-70

1971-74

1976-80

1988-94

1999-2002

2003-04

6-11 year-olds

12-19 year-olds

•BMI > 95th Percentile; JAMA April 5, 2006


Obesity Trends* Among U.S. Adults in 1985

(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)

No Data <10% 10%–14%


Obesity Trends* Among U.S. AdultsBRFSS, 2007

(*BMI ≥30, or ~ 30 lbs. overweight for 5’ 4” person)

No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%


Changing Food Policy

• Increasing childhood fruit and vegetable consumption is key to the future

– Prevalence of childhood obesity – Access and availability – Schools as primary intervention point


Change is Underway


Policy Victory One:Fresh Fruit and Vegetable Snack Program

• Pilot program begun in 2002 Farm Bill; four states, 100 schools

• Strong support from parents, schools, kids

• No school has ever given up program once it was established


Fresh Fruit & Vegetable Snack Program

• Children receive free fresh fruit or vegetable snack every day

• Schools choose how and where to purchase fresh produce items

• Program has become integral part of school culture and overall student health

• $1.1 Billion in funding over the next decade


Snack Program Expansion

• Expanded nationally in 2008 Farm Bill– $49 million - school year 2008-09

o 1 million students – $65 million - school year 2009-10

o 1.3 million students– $101 million - school year 2010-11

o 2 million students – $150 million - school year 2011-18

o 3 million students

– $1.1 billion over 10 years


Fresh Fruits Most Often Served

ApplesApple SlicesAsian Pears

BananasBlueberriesCantaloupeFruit TraysGrapefruit

GrapesGreen PlumsHoneydew

KiwiMango

OrangesPapayaPears

PersimmonsPineapple

Pineapple Spears Plums/Pluots

PomegranatesRaspberriesStrawberries

TangelosTangerinesWatermelon


Fresh Vegetables Most Often Served

AsparagusAvocado

Baby CarrotsBroccoli

CauliflowerCelery

Cherry TomatoesCucumbers

JicamaMushrooms

PeppersSugar Snap PeasVegetable Trays


Dramatic Impact

• Mom …”my son would not touch a green vegetable – now he loves broccoli and eats it every night for dinner.”

• Student …”please give us more plums, pineapple, pears, and raspberries”

• Principal …”this program had changed the very spirit of my school!”


WIC - Fruit & Veggies A $750 Million New Sales Opportunity


Policy Victory #2

• Women, Infants and Children’s (WIC) supplemental feeding program– Reaches 9 million low-income moms and

children to age 7o 50% of babies born in America today

– Historically provided for foods such as milk, eggs, cheese

o Did not include fresh fruits and vegetables

– After 10-year fight, WIC added vouchers/ coupons for free fruits and vegetables

o $8-$10 per month


Top 20 Fruits & Vegetables Purchased by WIC Moms South Central Los Angeles – WIC Project

Fruit and Vegetables Vitamin C Vitamin A Fiber Potassium

1. Bananas

2. Apples

3. Carrots

4. Tomatoes

5. Iceberg Lettuce

6. Oranges

7. Broccoli

8. Grapes

9. Winter Squash

10. Onions

11. Pears

12. Watermelon

13. Peaches

14. Spinach

15. Zucchini

16. Cauliflower

17. Strawberries

18. Cabbage

19. Cucumber

20. Cantaloupe

indicates good or high source of nutrient


$750 Million inProjected WIC New Produce Sales

Bananas $97.9M

Apples $90.2

Carrots $76.0

Tomatoes $61.7

Lettuce $58.0

Oranges $54.2

Broccoli $46.7

Potatoes $42.2

Grapes $17.3

Winter Squash $15.8

Onions $15.0

Pears $14.3

Watermelon $12.8

Peaches $12.0

Spinach $11.3

Zucchini $10.5

Cauliflower $9.8

Strawberries $8.3

Cabbage $8.3


Benefits Beyond Today’s $

• Introducing produce to kids from birth to school age

• Introduction of WIC moms to produce departments as a destination– Moving out of the center store– Most moms will “round up” and spend more

than their $8-$10 coupons – Smaller, convenience retailers will need to

compete with a greater variety of produce


The Nexus Between WIC Families and Better Health

• Are you WIC Certified? Are your customers?

• Collaborate with state/local WIC programs; participate in state WIC Vendor Advisory Committee, collaborate with state vendor manager

• Welcome WIC Moms and their families, provide excellent customer service

• Promote consumption and coordinate nutrition education messages with state WIC agencies


Battles Still Being Fought

• Children’s Fruit and Vegetable Act of 2009 (H.R. 433) and Healthy Food in Schools Act of 2010 (S. 3144)

• Healthy, Hunger Free Kids Act of 2010


H.R. 4333 – The Children’s Fruit and Vegetable Act of 2009

• Introduced by Congressmen Sam Farr (D-CA) and Adam Putnam (R-FL)

• Creates a national salad bar policy

• Increases the amount and variety of fresh fruits and vegetables in school meals

• Provides for infrastructure and training

• Sets the stage for priorities, Senate discussion


Healthy Food in Schools Act of 2010 (S. 3144)

• Companion Bill to the Farr/Putnam Bill

• Introduced by Senator Barbara Boxer (D-CA), co-sponsored by Sen. Kay Hagan (D-NC)

• Senate will reference bill this when looking at Childhood Nutrition Reauthorization

• Salad bars also a key part of this bill


Why Salad Bars?


School Salad Bars Work!


Research, Experience, Success

• Personal choice increases consumption– Kids ate an extra serving per day (Up 25%!)– Key was variety of fruit and vegetables

• Kids learn to make decisions for life– They must choose produce first, even after

school at the C-store, restaurant, retailer


Taking the Message to Legislators


Taking Opinion Leaders to Schools


Healthy, Hunger Free Kids Act of 2010

• Introduced by Senator Blanche Lincoln, Chair of the Senate Agricultural Committee

• $4.5 billion in new child nutrition program funding over ten years

• Guiding Principles:– Expand program access to reduce childhood hunger– Improve nutritional quality to promote health and

address childhood obesity



• Help schools improve the nutritional quality of school meals

• Performance-based increase in the federal reimbursement rate for school lunches – 6 cents per meal– Help schools meet new meal standards to provide

children with healthier school meals.

• National Nutrition Standards for All Foods Sold in Schools– Authority to establish national nutrition standards for all

foods sold on school campus throughout the school day



• Connecting more children to healthy local produce through farm-to-school programs

• Provides mandatory funding for schools to establish school gardens and to source local foods into school cafeterias


Opportunities for Our Industry

• Build strong community relationships with local schools, including children and parents

• Immediate sales growth through increased overall consumption

• Regional food systems to make local produce sourcing more efficient

• Long-term sales growth once produce consumption is entrenched


Nutrition Reauthorization Priorities for the Industry

• National School Salad Bar Policy• Increase reimbursement rates• Significantly expand fresh fruit &

vegetable purchases• Update school meal nutrition standards


Keys to Overall Success

• Your voice matters – make it heard!

– Contact your members of Congress on industry issues

– Take part in public policy events in your area and in Washington

– Comment on regulatory matters that effect your business


Questions

My email: [email protected]

United Fresh Website: www.unitedfresh.org


Dispatches from Washington: Upcoming Nutrition and Food Safety Legislation That Will Impact Your Business

Miriam Miller

Director of Membership

United Fresh Produce Association

March 25, 2010

2010 napmm conference dispatches from washington: upcoming nutrition and food safety legislation...

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