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Newsletter

Tuesday, October 17, 2006
Well my football team lost this weekend. It may be good for me to be at the PMA Sunday so I don’t have to watch another massacre. Feel free to forward any of my newsletters to people you think might find them of interest
U.S. fall vegetable acreage shows 3 percent increase

Nov 14, 2005 8:43 AM By Paul Hollis, Farm Press Editorial Staff  U.S. fresh-market vegetable and melon acreage is expected to rise by 3 percent this fall to 163,900 acres, according to USDA’s National Agricultural Statistics Service. Fall acreage is forecast the same or higher for all produce except for celery, cucumbers, head lettuce and tomatoes. Although crops in both Eastern and Western growing areas were reported to be in good condition as of mid-October, yields and shipment volume could change quickly, given the variability in fall weather the past several years. <> A year ago, the industry was dealing with severe supply disruptions caused by hurricane and rain storm damage to tomatoes, peppers, sweet corn, cucumbers, and many other crops. Assuming average weather, supplies should be more than adequate to meet steady-to-weaker demand. Given the acreage projections, current weather, and a return to trend yields, potential fall-season fresh vegetable and melon shipments could total above that of a year ago. Total fresh vegetable shipment volume did not decline last fall despite severe storm damage in both Florida and California, as increased lettuce and onion volume offset reductions for tomatoes, snap beans, and peppers. While potential supplies could be up this fall, demand may have weakened a bit over the past couple of months as a result of hurricane damage to the Gulf Coast and a reduction in discretionary income caused by the surge in energy prices. As a result, fall-quarter f.o.b. shipping-point prices are expected to average about a tenth below the storm-affected highs of a year-earlier

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Harold Thinks! I found this article and think it does a good job of providing an overview of this fall’s vegetable and melon crops.

Judge grants class-action status to Tyson workers

THE ASSOCIATED PRESS 10/13/2006 CHATTANOOGA, Tenn. — A federal judge granted class-action status to a lawsuit that contends Tyson Foods Inc., the world's largest meat producer, depressed wages by hiring illegal immigrants at eight plants, including one in Sedalia, Mo. Howard W. Foster of Chicago, an attorney for Tyson employees, described the ruling as a "very big step," allowing him to seek damages for thousands of workers at the eight plants instead of just the four original plaintiffs. Roger Dickson of Chattanooga, an attorney for the company in Springdale, Ark., said he had not had a chance to read the judge's order and declined further comment. "This is a procedural ruling and not based on the merits of this case, which was actually dismissed by another judge back in 2002," Tyson spokesman Gary Mickelson said in an e-mail.

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Source: STLtoday.com

Harold Thinks! This issue puts me on the spot. Class action lawsuits are not a vehicle that I would generally approve of.  However, in this case, I don’t believe the legal system actually punished the wrong-doers effectively enough.  They needed to send a message to anyone hiring illegal immigrants that would get their attention. If the federal government had taken action to uphold the immigration law the last time we would not be in this position today. Let’s all make sure that when they enact a new immigration law that we push our legislatures to enforce it. I know I sound like a broken record on the subject but it is an important issue. The expression, broken record, dates me doesn’t it?

Orange Shortage Squeezes Juice Makers

ORLANDO, Fla., Oct. 14, 2006  By TRAVIS REED Associated Press Writer

AP) Orange juice prices, already at historic highs, are expected to climb further as production in Florida's hurricane-ravaged groves bottoms out. But it's not just consumers who will be affected: Juice makers like PepsiCo Inc.'s Tropicana Products and The Coca-Cola Co.'s Minute Maid, which get the vast majority of their juice from Florida, are facing a profit squeeze from rising domestic prices and imports from Brazil that come with margin-killing tariffs. The U.S. Department of Agriculture this week predicted Florida would produce 135 million 90-pound boxes of oranges, down about 40 percent from production levels before the 2004 hurricane season. It would be the third year in a row of subpar production, and the worst orange harvest since freezes crippled crops in 1990.
"I can tell you that we'll monitor this, and decide what course we need to take as we analyze the information," Minute Maid spokesman Ray Crockett said, declining to answer specific questions about possible price hikes.

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Source: CBS News

Harold Thinks! This is Economics 101 at work. I have to admit that I was surprised that there was an 8 % drop in sales of orange juice at retail after a 9 % average increase in price took effect. There are limits to what people will pay for a product no matter how good it is and they seem to have reached that point with orange juice. It will be interesting to see what the new minimum wage law in Caliifornia will do to retailers particularly fast food restaurants. They are going to have to raise their prices to cover this jump in cost. Will it mean more eating in and increase produce sales?