January/February 2009 AFI Newsletter
President's Update; FDA Inssues Guidance Documents; Obama Wants FDA to Act Quicker on Tainted Foods; Peru Maintians ATPA/ATPDEA Benefits; New Container Fee in Effect at L.A. and Long Beach; Canada Says No to Cloned Organics; ERS Issues Food Consumptions Survey; Demand for California Olive OIl Increases; Uncollected AD/CV Duties Down in FY2008; Freight Rates to Remain Stable(?); AFI Convention Approaching Quickly; and more.
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Wednesday, March 11, 2009
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AFI is closely monitoring activity in Congress related to food safety legislation proposals. As this newsletter was being prepared, it was anticipated two bills expected to receive a lot of attention - one each in the House of Representatives and the Senate, were going to be introduced within days.
All members will receive a summary of any bills that are introduced. As always, members are encouraged to provide input. In addition, AFI's food safety legislation task force will review the legislation and help frame AFI's position.
AFI is the vehicle through which the food import industry's voice will be heard. Be sure to review the information you receive from AFI and provide your feedback. AFI will be participating in/sponsoring/attending several events over the next few months. AFI will have a booth at SIAL Montreal (April 1-3) and will host a reception during the show. Look for details shortly. AFI will also be attending the Natural Products Expo in Anaheim, March 6 and the Fancy Food Show in New York, June 28-30. If you're exhibiting at any of these events, don't forget to display your AFI Member sign. Let me know you're exhibiting so I can stop by your booth.
The most prominent event on the horizon is the AFI Convention (April 30-May 2 in Naples, Fla.). There's no place else you can go for three days of information related to the food import industry and interaction with importers, suppliers and service providers. Convention details are posted at www.afius.org.
FDA ISSUES
GUIDANCE DOCUMENTS
FDA issued two guidance documents on seafood: Guidance for Industry: The Seafood List; FDA's Guide to Acceptable Market Names for Seafood Sold in Interstate Commerce (available at http://www.cfsan.fda.gov/~comm/seaguid7.html) and Compliance Policy Guides (CPG) Sec. 540.370: Fish and Fishery Products Decomposition (available at http://www.fda.gov/ora/compliance_ref/cpg/cpgfod/cpg540-370.html). The seafood list guidance document explains FDA's Seafood List and the principles that should be used to select an appropriate statement of identity when labeling seafood species sold in interstate commerce. FDA requires seafood species be identified with an acceptable "market name." The first step is to consult FDA's Seafood List (available at http://www.accessdata.fda.gov/scripts/SEARCH_SEAFOOD/index.cfm?other=complete). It may also be accessed by using the search box in the guidance documents. Seafood list is a list of seafood species sold or likely to be sold in interstate commerce and not prohibited by law. For each species, the Seafood List generally provides four types of names:
· Market name - may be the scientific common name, a common or usual name established by regulation or by common usage in the U.S., or a coined name. · Scientific common name - the English version of the name established and commonly used by ichthyologists and other fishery experts to describe a specific species. FDA generally recommends use of the scientific common name as the market name, unless a common or usual name has been established by law.
· Scientific name - the Latin name for the genus and species as established by fisheries taxonomists. The scientific name is not, by itself, an acceptable market name, but it may be used to supplement an acceptable market name in labeling.
· Vernacular name - a commonly recognized local or regional name for a species. Vernacular names generally are not acceptable market names, and their use in labeling may result in misbranding. To determine whether a name is an acceptable market name, FDA generally applies the following principles:
1. A common or usual name required by law, if one exists, is required to be used as the market name.
2. A name that is false or misleading is not an acceptable market name.
3. A name that has been recognized nationally in the U.S. and commonly used by consumers to identify a species may be an acceptable market name.
4. The scientific common name is generally an acceptable market name.
5. An established international name (e.g., one established by the Food and Agriculture Organization (FAO)) or a name that is widely recognized and commonly used in the country of origin may be an acceptable market name.
6. A coined name may be an acceptable market name.
OBAMA WANTS FDA TO ACT
QUICKER ON TAINTED FOODS
President Barack Obama wants the nation's food safety agency to keep children safe from contaminated foods, such as the salmonella-laced peanut products that have sickened 550 people, reported the Associated Press.
Obama says he wants to review how the FDA operates. "I think that the FDA has not been able to catch some of these things as quickly as I expect them to," Obama said in an interview on NBC's Today show.
PERU MAINTAINS
ATPA/ATPDEA BENEFITS
The USTR. issued a notice amending the U.S. Harmonized Tariff Schedule, effective Feb. 1, to reflect that Peru remains a designated beneficiary country for purposes of the Andean Trade Preference Act (ATPA) and the Andean Trade Promotion and Drug Eradication Act (ATPDEA). An annex to presidential proclamation 8341 incorrectly deleted Peru from the list of designated beneficiary countries and the notification corrected that error.
NEW CONTAINER FEE IN
EFFECT AT L.A. & LONG BEACH
A $70-per-40-foot container fee went into effect February 18 under the Clean Trucks Plan being implemented by the ports of Los Angeles and Long Beach. The fee must be paid by cargo owners before a container can enter or leave a terminal at these ports. The Federal Maritime Commission is requiring special reports that will allow it to monitor the fee collection process and assess the fee's impact on port truckers, U.S. shippers and consumers.
CANADA SAYS NO
TO CLONED ORGANICS
Canada declared organic food and cloned animals to be mutually exclusive - which means any products derived from cloned animals won't carry the country's new organic logo, reported The Globe and Mail.
The restriction will be introduced under a sweeping set of revised national guidelines recently released designed to regulate the country's organic food industry and prevent companies from making false or misleading claims.
The ban on cloned organic products was quietly added in October to an existing list of substances prohibited in organic production. The list, along with all other rules regarding organic production methods, will come into effect June 30.
The new rules require all foods, beverages and other products of organic agriculture to be certified by a nationally recognized body and carry a new organic label introduced by the government. The contents of all products carrying the new label must be at least 95 percent organic.
The national rules will allow consumers to tell easily which organic products have met a high standard. However, the government has exempted organic seafood, cosmetics, pet food and textiles from mandatory organic certification, mainly because there are no rules for how to produce them organically. Companies selling those products will be allowed to use an organic label without the guarantee that they have met a high standard.
ERS ISSUES FOOD
CONSUMPTION SURVEY
American consumers are consuming more produce and they prefer it non-canned, according to a report from USDA's Economic Research Service (ERS). The amount of fruit available for consumption rose 13 percent between 1970 and 2005 and the amount of vegetables available for consumption increased 23 percent. Most of these increases were for fresh fruits and vegetables. Although the per-capita quantity of canned vegetables increased slightly, canned vegetables' share of total vegetables fell from 30 percent to 25 percent. Per-capita availability of canned fruit decreased by 37 percent and canned fruits' share of total fruit decreased from 11 percent to 6 percent.
The survey also showed higher-income households tend to spend more per capita on canned fruits and vegetables than do lower-income households. The same holds true for households headed by older persons, compared to their younger counterparts. Households with children tend to spend relatively less on canned fruits and vegetables. Hispanic households have lower expenditures on canned fruits than other ethnic groups. Asians spend the least on canned vegetables while African Americans spend the most.
DEMAND FOR CALIFORNIA
OLIVE OIL INCREASES
Demand for California olive oil continues to increase as more trees are planted. Last year farmers produced an estimated 675,000 gallons of olive oil, almost double the 2004 production. Acreage for olive oil trees is about 21,000 and that is expected to increase by about 10,000 acres each year through 2020, reported California Farm Bureau.
UNCOLLECTED AD/CV DUTIES
DOWN IN FY 2008
A report posted recently to the U.S. Customs and Border Protection Web site indicates that the amount of uncollected antidumping and countervailing duties fell by nearly $60 million in fiscal year 2008. The total for the year ending Sept. 30, 2008, was $180.5 million, down from $236.9 million in FY 2007.
China accounted for more than 80 percent of the total in FY 2008, with significant shortfalls for preserved mushrooms ($40.9 million), frozen warmwater shrimp ($38.4 million), fresh garlic ($22.8 million), crawfish tail meat ($12.8 million), petroleum wax candles ($7.8 million) and bars and wedges ($6.4 million). Other products for which CBP had trouble collecting AD/CV duties in FY 2008 included polyethylene retail carrier bags from Thailand ($8.1 million), frozen fish fillets from Vietnam ($7.1 million), cut-to-length carbon steel plate from Romania ($6.8 million), frozen warmwater shrimp from India ($3.0 million), preserved mushrooms from India ($2.5 million) and ball bearings from Japan ($1.2 million).
FREIGHT RATES
TO REMAIN STABLE?
Numerous large container ships will be introduced, which could keep sea freight rates depressed well into 2010, according to The Wall Street Journal. The MSC Daniela, for example, completed its maiden run from Asia to Europe this month with 13,800 containers and 35 ships of similar scale are scheduled to hit water in 2009, making up roughly a quarter of the net increase in container capacity. AFI CONVENTION
APPROACHING QUICKLY
It's time to register for the upcoming AFI Convention, being held April 30-May 2 at the Naples Beach Hotel & Golf Club in Naples, Florida.
This year's convention program is one you can't afford to miss. Our keynote speaker, Dr. A. Elizabeth Sloan, will identify emerging trends and opportunities in food products represented by AFI members. This data-driven presentation will help provide members with a greater understanding of the impact of the economy, food trends in retail, what is selling, not selling and why - and where the best opportunities will be.
AFI's convention theme, "Stepping Up Your Defenses - Proactive Measures for Food Importers" will provide answers to the many questions in the changing landscape for food importers. John Bode, partner, Olsson Frank Weeda Terman Bode Matz, will outline the new food safety proposals being introduced in Congress almost daily and highlight the ones likely to be passed. Carl Soller, partner, Cowan Liebowitz and Latman, will outline key components of FDA's recently published policy compliance guide for food importers.
Melanie Neumann, vice president, crisis management and general counsel, RQA, Inc., will present "Product Recalls and Crisis Management." This session will address the best practices in recall management from pre-incident crisis planning to effective recall execution strategies. Kenneth Sciara, president, Hagedorn & Company, will offer advice on ways to make certain members have the proper coverage.
Complete details on the program are available on www.afius.org.
With three networking receptions, two breakfasts, planned recreational activities and a Saturday evening dinner, the AFI convention is the perfect mix of educational sessions and networking events. We hope to see everyone there. If you have any questions on the AFI convention, please contact the AFI office.
YOUR AFI MEMBERSHIP
CAN SAVE YOU MONEY!
AFI and FedEx now work together to bring you special FedEx discounts. Save up to 26 percent on select FedEx Express® shipping services and up to 12 percent on select FedEx Ground®services. Also take advantage of discounts on FedEx Freight®and FedEx National LTL . There are no cost and no minimum shipping requirements to take advantage of this great member benefit. To enroll, visit: www.enrolladvantage.fedex.com/4719 (use passcode KZ8968) or call 1-800-MEMBERS (1-800-636-2377).
AFI WELCOMES MAGGIE HOYER
TO AFI HEADQUARTERS
Maggie Hoyer joined the AFI headquarters team in January 2009. Prior to joining AFI as marketing manager, she served as executive director of Organizational Development Network in Newark, N.J. She currently serves as the education chair on the board of New Jersey Society of Association Executives. AFI WELCOMES
NEW MEMBERS
The following companies were approved for membership in AFI by the Board of Directors at its February 10 meeting.
Regular
Danisco USA, Inc., New Century, KS - manufacturer of food ingredients, including emulsifiers, gums and systems, sweeteners and cultures
Victoria Pacific Trading Corp., Walnut, CA - manufacturing agent for Chinese packers of canned goods and other foodstuffs
Overseas
Aegean Star Food Industry Trade Ltd. (Ege Yildizi Gida Endustrisi Ticaret Ltd.), Nazilli, Turkey - supplier of dried figs, dried apricots, dried tomatoes, extra virgin olive oil, pistachios, pine nuts and roasted chickpeas
Euroalimentos Ltda., Altos, Brazil - supplier of cashews
M/S Mangalore Cashew Industries, Karnataka, India - supplier of cashew kernels
Natural Fruit Co., Ltd., Prachuapkirikhan, Thailand - manufacturer of canned pineapple and pineapple juice concentrate
Two Plus Industrial Co., Ltd., Samutsakorn, Thailand - manufacturer and exporter of canned seafood and seafood in pouches, including tuna, sardines, and mackerel as well as pet food
The following companies were approved for membership in the National Honey Packers & Dealers Association at its annual meeting on January 8, 2009:
MYM Trading LLC, Redondo Beach, CA - importer of honey, primarily from Argentina
The following company was approved for membership in the North American Olive Oil Association at its Mid-Year Meeting on January 16, 2009:
Mediterranean Olive Oil Corp., San Francisco, CA - manufacturer of olive oil
AFI CALENDAR
AFI will have a booth at SIAL Montreal April 1-3. AFI will also host a reception during the show. Look for details soon.
The 2009 AFI Convention will take place April 30 - May 2 at the Naples Beach Hotel & Golf Club, Naples, Fla.
The North American Olive Oil Association Annual Meeting will take place June 26 in New York.
The AFI Town Meeting will take place November 13 at The French Culinary Institute in New York, N.Y.
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