|
Energy Agriculture
The energy crisis of the 1970s brought about high gas prices and limited supplies that generated an intense interest in renewable fuels and weaning ourselves from foreign sources of oil. However, when gas prices plummeted in the 1980s, renewable fuels and energy independence were quickly forgotten.
The story ended differently in Brazil. After investing heavily in renewable fuels in the 1970s, they kept the program alive during the 1980s. This has given them a head start on the current situation. With its robust ethanol program, Brazil is expected to become energy independent this year.
This is a far cry from the U.S. who still imports over half of its oil. However, remember that the U.S. economy is much larger, the number of U.S. cars is much greater and the U.S. highway system is much more extensive than in Brazil. So, U.S. energy independence is a much bigger task. . . Energy Agriculture Brazil
Sales Surge for National Chains
Supermarket industry sales increased 5.3 percent in 2006, and same-store sales rose 4.0 percent, the highest mark for this performance measure in more than a decade, according to the Food Retailing Industry Speaks: Annual State of the Industry Review 2007 release by the Food Marketing Institute (FMI). These figures were up from 4.6 percent and 2.4 percent, respectively, in 2005. The national chains reported a banner year in sales and profit growth, but the picture was far less rosy for many other retailers. In fact, same-store sales decreased for nearly one-quarter (23.5 percent) of food retailers. All together, nearly half (47.1 percent) lost ground in same-store sales when factoring in inflation. Net income before taxes and extraordinary items decreased to 1.8 percent, from 2.1 percent. Retailers with more than 100 stores reported the highest income numbers at a median of 3.2 percent.
|
Whole Foods Market Announces Low-Interest Loan Program for Local Food Producers
Whole Foods Market, the leading organic and natural foods supermarket, is seeking local farmers and other food producers who are interested in participating in its new Local Producer Loan Program. As part of a company-wide initiative supporting local agricultural producers and food artisans, the company plans to provide up to $10 million annually in low-interest loans to small producers in the U.S.
At five to nine percent, the interest rates currently offered through Whole Foods Market’s pilot program to small agricultural producers can be extremely attractive. The program has other attributes geared to small producers: loan application paperwork is minimized; there are no penalties for early repayment; and loan terms may be from a few months to ten years.
Producers throughout the U.S. are invited to participate in the program. Those interested can find more information and a loan application at the Web site, http://www.wholefoodsmarket.com/ products/locallygrown/lplp/index. html. They can also contact the program coordinators at lplp@wholefoods.com.
Confidence in Food Safety Down, Energy Costs Changing How People Shop
Foodborne illness outbreaks and high energy costs are significantly changing consumer shopping behavior and attitudes, according to the Food Marketing Institute (FMI) U.S. Grocery Shopper Trends, 2007, recently released. The number of consumers "completely" or "somewhat confident" in the safety of supermarket food declined from 82 percent in 2006 to 66 percent — the lowest point since 1989 when the issues of pesticides in apples and contaminated grapes were widely reported. Consumer confidence in restaurant food is even lower at 43 percent. "These findings send a strong message to the entire food industry," said FMI President and CEO Tim Hammonds. "All of us need to work together to be sure our consumers continue to receive the high quality, affordable food they have every right to expect."
The Trends survey found that safety concerns prompted 38 percent of consumers to stop purchasing certain foods in the past 12 months — up from 9 percent in 2006. Among those who stopped buying products, the items most often mentioned were spinach (71 percent), lettuce (16 percent), bagged salad (9 percent) and beef (8 percent). The survey was conducted in January 2007, when the outbreak linked to spinach was still in the news and illnesses associated with other foods were starting to make headlines.
|
|