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California expects more competition for wine market

Source: Steve Adler; Ag Alert

A new report showing that the United States continues to lead the world in wine consumption is viewed as good news for the California wine sector—but it shouldn’t lead to complacency, according to three experts.

This country’s No. 1 ranking in total consumption in 2013 marked the third consecutive year of that achievement. U.S. wine consumption topped 3.3 billion liters, an increase of 5.4 percent compared to the previous year. France retained its hold on second place, with 2.8 billion liters—but that represented a 6.9 percent decrease in consumption.

California’s share of U.S. wine production is about 90 percent, although there are wineries in every state.

“Our consumption is growing in this country, but everyone realizes that the U.S. is the largest wine market in the world because we have such a large population base. Everybody in the world wants to sell their wines here, so there is a lot of foreign competition,” said Gladys Horiuchi of the Wine Institute in San Francisco.

Mendocino County grape grower and winery owner Bill Pauli said last week’s report on wine consumption underscores the importance of the U.S. market not only to California producers, but to producers around the world.

“With America’s expanding growth and improved economic times, consumption has improved and people are drinking better wines. But we still have to compete, not only amongst ourselves, but with all of the foreign competition. And that foreign competition is really the challenge in not only flavors, but price,” Pauli said.

The challenge comes not only in finished products, but from the foreign producers who sell bulk wines into California to be blended or bottled here, competing directly with California grape growers, he said.

Horiuchi said lighter crops produced in California prior to 2012 allowed foreign producers of bulk wines to make inroads. But because of the large crops in 2012 and 2013, the availability of California grapes has eased that threat, she said.

“The good news now is that the wineries are brimming with California wine of excellent vintages, so naturally the wineries have gone back to their local sources. But in order to maintain their shelf space, when the production in California is down, they will import wine from other countries,” Horiuchi said.

Competition from foreign producers was also noted by Glenn Proctor of the Ciatti Co. in San Rafael, who cautioned the state’s growers and wineries not to become complacent.

“When you are No. 1 in the world, it is not just California wines and U.S. wines that consumers are buying, but other countries are trying to get their wines into the U.S. market too,” he said. “So I think we will continue to see a very competitive environment.”

Proctor said it is important for California wineries to continue producing wines that U.S. consumers want, at prices that allow them to purchase more.

“We have to be on our game and remain competitive. The opportunities continue to grow, but we have to be ahead; we cannot be behind,” he said. “We’ve seen countries like Australia, Chile, Argentina and South Africa do a pretty good job of bringing bottled product into this country.”

While this year’s winegrape crop in California is projected to be normal in size, it follows two years of record production, resulting in large inventories in most of the state’s wineries. Proctor said that will allow California wineries to hold onto highly competitive shelf space.

“We have had two bumper crops in a row and this year looks to be a healthy crop, but not large per se. But we do have some excess of wine, especially in the Central Valley. I think we will work through the excess, and it is helpful that we don’t have a big crop this year. But we do need to increase our sales and grow. Any kind of stagnation in case-good sales would not be a good thing for the industry,” he said.

Proctor predicted that in the near term, there could be some “corrections” in prices that wineries pay to growers.

“Prices received by growers are healthy right now and some wineries may think they are too high,” he said. “We may see some correction in the marketplace in the Central Valley in the next year or two, to get inventory costs back in line.”

In the long term, he said, wineries will need a steady supply of grapes coming from California, “and you want to have new and efficient vineyards so growers and wineries can continue to be profitable.”

Proctor said some older and less-productive vineyards in the Central Valley will probably be removed and replanted, either with better-producing grape varieties or other commodities such as almonds or pistachios.

On the marketing side, Horiuchi said wineries continue to target baby boomers, people ages 50 to 68.

“The baby boomers are the ones who have the income and the ones who are dining in restaurants. But at the same time, there is a transition taking place as wineries are starting to market to the next generation, where the consumers are more involved with social media, taking pictures of wine labels and so on. They are willing to try a lot of different things,” she said.

Patrick Cavanaugh2016-05-31T19:33:25-07:00September 18th, 2014|

Climate change’s impact on restaurants

By Patrick Mulvaney, chef and restaurateur; The Sacramento Bee

When I read about climate change, I learn about rising sea levels and shrinking polar ice caps – problems for 100 years in the future. But when I talk to my friends and customers about climate change, the focus is on what is happening today. It seems little things are already adding up.

As a chef, I have always believed that the completed dish will only be as good as the ingredients used. The bounty of the 12-month growing season is the main reason we decided to open our restaurant here in Sacramento. Because of our close relationships with local farmers, our “supply chain” is basically a truck and the farmer’s market. We can see how the drought has affected their crops.

Three years of drought have taken a toll on the ranchers and farmers we depend on. Lack of rain to refill the state’s reservoirs has reduced water levels to historic lows. Some water allocations have been cut entirely, and most farmers have been forced to scale back on planting. Forty-five percent of rice land went unplanted this year; farmers were forced to sell off cattle this spring. Researchers at UC Davis estimate that drought will prevent farmers from planting nearly 430,000 acres and cost the state $2.2 billion.

This isn’t just a Sacramento problem; it will affect the whole country. California grows nearly half of the nation’s fruits and vegetables, including 70 percent of the lettuce, 76 percent of the avocados, 90 percent of the grapes and virtually all of the almonds. Unfavorable conditions in California mean higher prices for restaurants across the country.

The U.S. Department of Agriculture said produce prices could increase 5 to 6 percent this year. Even though beef prices are at historically high levels, the drought has raised the prices of feed even higher, forcing ranchers to sell the majority of their herds. A few years ago, the U.S. had 102 million head of cattle. That number is now under 88 million and dropping. It’s the smallest herd since 1951, so prices keep rising.

In addition to drought, climate change is causing other kinds of severe weather swings. Last winter was unusually brutal in the Midwest, causing an almost complete failure of the cherry crop and raising doubts about harvests for the rest of the tree fruits this summer.

In some ways, we are lucky at my restaurant; our daily-changing menus have allowed us to respond to climate disruptions. And while we continue to serve the best of what’s coming out of the nearby land, some items have become harder to find at a reasonable price. During the past year, restaurants have changed their menus to reflect higher meat prices, sudden collapses in citrus yields and the lack of products as farmers are forced to let their land lie fallow.

I worry that extreme weather, like California’s drought, may become the new normal. Our agricultural partners face the greatest risks. Many businesses will experience climate change through limited supply and poor supply-chain quality.

There’s something we can do about this. California has long been a national leader on clean-energy policies. Gov. Jerry Brown is supportive of the Environmental Protection Agency’s new regulations that will reduce carbon pollution. He said, “Clean-energy policies are already working in California, generating billions of dollars in energy savings and more than a million jobs. Bold, sustained action will be required at every level, and this is a major step forward.”

Now is the time to continue California’s clean-energy leadership tradition by implementing changes that encourage business leaders to use resources more efficiently. This will help prevent more extreme weather events and make our economy more resilient.

Patrick Cavanaugh2016-05-31T19:33:25-07:00September 16th, 2014|

California gets $22 million from USDA for conservation programs

Source: CDFA

Agriculture Secretary Tom Vilsack announced that $328 million in conservation funding (more than $22 million to California) is being invested to help landowners protect and restore key farmlands, grasslands and wetlands across the nation. The USDA initiative will benefit wildlife and promote outdoor recreation and related sectors of the economy.

“Conservation easements help farmers and ranchers protect valuable agricultural lands from development, restore lands that are best suited for grazing, and return wetlands to their natural conditions,” Vilsack said. “These easements are making a dramatic and positive impact for our food supply, rural communities and species habitat.”

The funding is provided through the Agricultural Conservation Easement Program (ACEP), which was created in the 2014 Farm Bill to protect critical wetlands and encourage producers to keep lands in farming and ranching. Approximately 380 projects nationwide were selected to protect and restore 32,000 acres of prime farmland, 45,000 acres of grasslands and 52,000 acres of wetlands. A summary of ACEP funding provided to each state can be found online.

In addition to protecting cropland and critical habitats, conservation strengthens outdoor recreation and helps boost the economy. According to the National Fish and Wildlife Federation, annual United States conservation spending totals $38.8 billion, but it produces $93.2 billion of economic output throughout the economy – 2.4 times more than what is put in. This output takes the form of more than 660,500 jobs, $41.6 billion in income and a $59.7 billion contribution to national Gross Domestic Product, or GDP.

Through ACEP, private or tribal landowners and eligible conservation partners working with landowners can request assistance from USDA to protect and enhance agricultural land through an agricultural or wetland easement.

These easements deliver many long-term benefits. For example, this year’s projects will:

Improve water quality and wetland storage capacity in the California Bay Delta region;
Reduce flooding along the Mississippi and Red rivers;
Provide and protect habitat for threatened, endangered and at-risk species including sage grouse, bog turtles, Florida panthers, Louisiana black bear, and whooping cranes to recover populations and reduce regulatory burdens; and
Protect prime agricultural land under high risk of development in urban areas to help secure the nation’s food supply and jobs in the agricultural sector.

ACEP consolidates three former Natural Resources Conservation Service (NRCS) easement programs – Farm and Ranch Lands Protection Program, Grasslands Reserve Program and Wetlands Reserve Program – into two components. One component protects farmlands and grasslands, and the other protects and restores agricultural wetlands.

Patrick Cavanaugh2016-05-31T19:33:26-07:00September 12th, 2014|

Joel Nelsen issues Statement Following NASS Navel Orange Crop Estimate

California Citrus Mutual Responds to Navel Orange Crop Estimate

California Citrus Mutual (CCM) President Joel Nelsen issued the following statement in response to the 2014-15 California Navel Orange Objective Measurement Report released today by the National Agricultural Statistics Service, Pacific Regional Field Office.

“Today’s release of the navel orange crop estimate by USDA is a necessary and mandated announcement that historically has provided an accurate assessment of California’s Navel Orange crop. Since California supplies 85% of the Nation’s fresh citrus this release is usually received with anticipation and fanfare.

“Generally speaking it sends signals to the consumer and to the markets around the country and world that California citrus growers are back. The number released is developed via a painstaking field assessment and formula that rely upon a bevy of statistics compiled over the years. This year that data base is being disrupted because of the drought and therefore the accuracy of the total number is suspect, in our view.

“The statistical team relies upon specific acreage for fruit-set and limb count which, over the years, establishes a record for the average number of fruit per tree. However, this year there is no way of knowing if that acreage has been affected by the drought, whether it has had a full complement of water, or if it has been removed. Additionally, the statisticians have no way of knowing how much of total acreage has been adversely affected.

“After canvasing a significant number of producers and shippers CCM believes the crop estimate is high. We know acreage has been removed from production but getting figures for a range has been difficult. We know the lack of water has affected fruit size during the growth stages but surveying 126,000 acres is almost impossible. We also agree there is more fruit on the tree as compared to last year, however fruit size is a concern. All of this effects the number of cartons ultimately packed.

“CCM believes that a ‘normal’ crop will materialize in the first four months of the season. The season will start early if we begin to have cooler nights and the fruit breaks into a bright orange color. It also appears that the hot temperatures during the summer has created a highly flavorful crop. Size structure through February will be positive for the consumer. Exterior quality is also excellent.

“Water costs have been obscenely high which will be reflected in sales prices in order for growers to offset the increased expense. The industry is mindful, however, of its obligation to move a quality product to the market at a reasonable price.

“CCM also believes that the amount of Mandarin varieties available to the consumer will be larger than in past seasons due to the increased number of trees now in production. Again, prices will reflect higher water costs.

Last year’s Navel Orange and Mandarin crop was adversely affected by the December freeze. The 2014-15 crop will have a higher number of Mandarins available than last year’s forecast, while Navel Oranges will be equal to or slightly less than last year’s forecast due to factors attributed to the drought.

“All of the above is predicated, of course, on a moderate winter without freeze related losses.”

Patrick Cavanaugh2016-05-31T19:33:26-07:00September 11th, 2014|

Got ice cream! (Thanks to UC Davis)

By Trina Wood

Chances are when you’re scooping that vanilla bean ice cream into your bowl for dessert, you’re focused on the flavor about to hit your taste buds, not on whether it may give you a foodborne illness.

That confidence in the safety of California’s dairy products — the state’s top agricultural commodity, valued at nearly $7 billion in annual retail sales — results in part from the efforts of the San Bernardino branch of the California Animal Health and Food Safety laboratory system.

This network of laboratories, headquartered at UC Davis and administered by the UC Davis School of Veterinary Medicine on behalf of the California Department of Food and Agriculture, performs surveillance and diagnostic testing for livestock and poultry.

The San Bernardino laboratory carries out such work on milk and dairy products that are submitted by the state’s Milk and Dairy Foods Safety Branch. The lab’s on-site bacteriology section tests for a variety of disease-causing microbes including Listeria, Brucella, Salmonella, Campylobacter and E. coli O157:H7 — all of which can cause severe illness and even death.

Protecting against foodborne diseases

The U.S. Centers for Disease Control and Prevention estimates that each year roughly one in six Americans (or 48 million people) get sick with a foodborne disease. Of these, 128,000 are hospitalized and 3,000 die from these illnesses.

However, such diseases have almost been eliminated from licensed milk and dairy products, thanks, in large part, to a strong regulatory framework, including adherence to pasteurization and laboratory standards.

Approximately 1,500 samples of milk, dairy products and water arrive monthly at the San Bernardino lab resulting in approximately 4,200 tests conducted by a team of eight technicians. These microbiological assessments monitor bacteria populations and the effectiveness of pasteurization in destroying harmful bacteria.

Partnering with California

“The laboratory system has been a successful partnership between the state and UC Davis since 1987,” said its director, Richard Breitmeyer.

He noted that it was natural in the 1990s to expand the lab’s statewide regulatory testing services to include milk products. Before then testing was limited to samples from only Southern California.

In 2000, the California Department of Food and Agriculture was so impressed with the accuracy and timeliness of the California Animal Health and Food Safety laboratory system that it placed all such statewide regulatory compliance testing in the network of labs, in a move that enabled the state to cut costs, speed analysis and consolidate testing.

The San Bernardino lab

Three years ago, the state asked the laboratory system to also begin testing milk and dairy products for chemical components such as fat and protein content. The San Bernardino lab now provides this service.

“I’m proud of our efficiency,” says Jose Gallegos, the San Bernardino lab’s supervising dairy analyst, who has been with the laboratory system for 20 years and oversees the milk quality testing lab. “Results are rapid and consistent, and reduce the number of people who become ill in the event of an outbreak.”

The San Bernardino laboratory is considered the state reference lab for California and holds the distinction of being the only veterinary facility in the nation set up as a regulatory testing facility. In addition to running tests for the state, the laboratory also is certified by the U.S. Food and Drug administration, under the National Conference of Interstate Shippers program guidelines to run microbiological tests.

Testing dairy products

As part of this testing program, the state sends samples from three sources: the farm, processing plants and retail establishments where the finished product is sold. The lab also tests some exports such as ice cream for microbiological components and dry goods such as powdered milk.

State milk and dairy officials may submit samples from a location if a report comes in that someone has become ill after eating or drinking at a particular business. State and federal investigators also routinely check farmers markets and small establishments for raw or illegally processed milk and dairy products that could pose a serious health risk. Those products are sent to the San Bernardino lab to be tested for the presence of bacteria or improper pasteurization.

Samples sent to the lab must be transported at the proper temperature, arrive within 60 hours of collection and be properly packaged before they are tested for general bacteria populations. If the testing criteria aren’t met, those samples are rejected for testing and reported to the state for recollection. Any test results indicating the products were not produced in compliance with state regulations are reported to the California Department of Food and Agriculture, which is authorized to enforce the regulations.

After milk samples have been analyzed for bacteria and other indicators of improper sanitation at a facility, they move on to be tested for drug residue and other unwanted substances such as antibiotics, which may have been used to treat sick cows.

Farmers are required to keep milk out of the supply line until the medication has cleared from the cow’s system and the milk meets strict requirements established by the FDA. Other testing, such as checking for proper pasteurization and possible water contamination, complements the tools used by state officials to ensure the quality and safety of the milk supply.

“We’re always looking at developing better tests and working with our partners to provide the highest level of service,” Gallegos says. “Knowing all the quality testing processes in place, I feel great about drinking milk!”

About CAHFS

CAHFS is a public service program of the university. The primary objectives of the CAHFS are to provide appropriate and timely diagnostic support to safeguard the health of California’s dairy, livestock and poultry industries and to protect the public health from animal disease.

Patrick Cavanaugh2016-05-31T19:33:26-07:00September 11th, 2014|

Food donations underscore drought impact

By Kate Campbell; Ag Alert

Central Valley farmers and businesses donated and shipped about 30 tons of fresh fruits, vegetables and nuts last week to help address food shortages at California food banks. A newly organized grassroots coalition, “California Water Feeds Our Communities,” was joined by the California Community Food Bank, Westlands Water District, the California Water Alliance and El Agua Es Asunto De Todos to bring valley-grown produce to those in need across the state.

Fresno County farmer Bill Diedrich said the impact of fallowing hundreds of thousands of acres of irrigated cropland in the San Joaquin Valley this year translates into significant economic losses for the valley’s small farming communities.

“It’s the people—and the communities that depend on agricultural production—that are getting hurt,” Diedrich said at a news conference in Fresno to announce the donations. “For example, the schools are being hurt. If people are moving on, there’s no reimbursement for (school) attendance and the children of those families who’ve stayed are losing out. Besides the school districts, cities and counties also are being affected and their ability to help in this crisis is reduced.”

Diedrich said that when he drives through the valley’s small towns, he sees workers standing around idle, “because there’s so much fallowed ground there isn’t the normal demand for labor. We’re looking at a disaster and we’re hoping for regulatory relief,” noting that Congress will be considering drought-relief bills in coming weeks.

Kym Dildine with Fresno-based Community Food Bank said one in four people in Fresno, Kings, Madera, Kern and Tulare counties copes with food insecurity, a situation made worse by the ongoing drought.

Prior to the drought, she said the agency was serving about 220,000 people a month. With the drought, that number has increased by another 30,000 people a month in the five-county area.

“Every food bank we’ve spoken to is really grateful to be receiving an entire truckload of fresh produce grown right here in the valley,” she said. “Because less fruit is available, they’re having a harder time accessing it.”

To help address the problem, 15 trucks were loaded with boxes of fresh produce at Simonian Fruit Co. in Fowler before heading to food banks in Fresno, Merced, Bakersfield, Los Angeles, Watsonville, Salinas, Santa Maria, Oxnard, Riverside and San Diego.

“The food we grow here extends far and wide,” said Gayle Holman of the Westlands Water District. “In fact, most people don’t even realize the food they may be eating in other parts of the state, or across the United States, actually originates here.”

The Fresno County Farm Bureau, along with many valley farms and businesses, supported the food donation effort, as did irrigation districts and service groups such as the Girl Scouts of Central California-South and the Fresno Area Hispanic Chamber of Commerce, as well as California State University, Fresno.

Participants said the coalition hopes not only to bring attention to the impact of the drought and how far-reaching it is, but also to set the stage for future food donation drives as the crisis deepens during the winter. Diedrich said the effort also brings attention to the fact that an unreliable water supply jeopardizes everyone’s food security.

“The drought has impacted California’s food banks because they can no longer adapt to the spike in food prices resulting from a lack of water for farmers,” said Cannon Michael, president of Los Banos-based Bowles Farming Co. “This campaign has been launched to feed the needy and raise awareness about how the drought hurts the most vulnerable people in the state.”

Drought-related land fallowing brings “many unintended consequences,” Michael said.

“We hope raising awareness about the drought will bring all stakeholders together to find short- and long-term solutions,” he said.

Westside farmer Sarah Woolf said the coalition will continue to support food banks.

“This was just one small aspect of how we’re trying to help,” she said.

When the U.S. Bureau of Reclamation announced a zero water allocation for farm customers south of the Sacramento-San Joaquin Delta, Mendota Mayor Robert Silva said his community knew it was facing “a terrible situation.” But he said the city learned from the drought in 2009 and immediately began preparing.

“We got service agencies and utilities to come in and set up assistance programs right away,” Silva said. “We’ve added recreational opportunities for our youth to keep them busy and we’ve been finding ways to support our schools.”

In 2009, Silva said water shortages led to severe social problems such as domestic violence and higher school dropout rates that might have been eased with adequate social services. The unemployment rate in Mendota today is in the range of 35 percent, he said, compared to 50 percent at the same time in 2009.

“Unemployment is still high, but not as bad as we feared,” Silva said. “But we’re not out of danger yet. I understand it’s going to be a short growing season this year, harvest is nearly over, and that means more people will be unemployed for a longer time. We haven’t seen the worst yet.”

He said Mendota residents have been planning ahead and “trying to get the resources they’ll need to get by until they can go back to work next year,” and more agencies are prepared to help.

“But it’s going to be a long winter,” Silva said.

Patrick Cavanaugh2016-05-31T19:33:26-07:00September 10th, 2014|

Groundwater bills on the way to Governor

Source: Monterey County Farm Bureau News

Passage of three groundwater-regulation bills by the California Legislature-Assembly Bill 1739 and Senate Bills 1168 and 1319-threatens a number of negative consequences for family farmers, ranchers and other landowners, according to the California Farm Bureau Federation.

CFBF President Paul Wenger said Farm Bureau has always encouraged the proper management of groundwater, “but doing that job efficiently and effectively should have been a priority.”

“Instead,” Wenger said, “the Legislature took the ‘ready, fire, aim’ approach, rushing these bills through and creating a massive new regulatory program in the final days of the legislative session.”

Farmers, ranchers and other landowners in California will be left to pick up the pieces, Wenger said, dealing with the consequences of the legislation for years to come.

“The bills would allow for groundwater to be monopolized to the detriment of urban water users and farmers-including people who have not created an overdraft problem but who could need access to groundwater in the future,” he said. “The same agencies that have been hamstrung by conflicting missions and statutory mandates-including environmental restrictions of questionable value-will now control all water decisions.”

In addition, the bills reach beyond efforts to balance inflows and outflows of groundwater basins, creating requirements that will lead to confusion and litigation, Wenger said.

“Farm Bureau and other opponents have been able to take some of the edge off of this legislation. It now includes protections for water rights and other provisions that could lessen its detrimental impact. For that, we must thank those in the Capitol who helped rein in some of the proposals’ worst overreaches and the legislators, both Democrats and Republicans, who voted against the bills,” he said.

“But making this significant of a change in water law-arguably the most significant in more than 100 years-and doing so without the necessary deliberation, or even a policy hearing, shows how susceptible to flaws this legislation could prove to be,” he said, adding that Farm Bureau will ask Gov. Brown to veto it.

“True resolution to California groundwater problems will come through measures that this legislation does not address, such as a streamlined adjudication process and the recognition of groundwater recharge as a beneficial use of water,” Wenger concluded. “Most importantly, California must improve its surface water supplies. All the fees and fines in the world won’t heal our aquifers unless California builds additional storage and improves management of surface water in order to reduce demand on groundwater.”

Patrick Cavanaugh2016-05-31T19:33:27-07:00September 5th, 2014|

Twin Tunnels Could Produce Friant Dry Year Water Woes

Source: Friant Waterline

While “progress” on the Bay-Delta Conservation Plan’s ambitious and controversial twin tunnels planning continues to mostly be marked by delay, Friant Division contractors and the Friant Water Authority are looking long and hard at findings in troubling computer modeling.

Friant Water Authority directors were told at their August 28 meeting in Visalia that the twin tunnels proposal to bypass the fragile Delta not only lacks benefits for Friant users, it could actually make Friant’s future dry year water supply problems worse.

‘LOSING PROPOSITION’

“Computer modeling shows it is a losing proposition with less water supply reliability to Friant, particularly in dry years,” said Ronald D. Jacobsma, FWA General Manager.

The FWA and its member districts have been evaluating the state’s twin tunnels plan to determine if Friant users would benefit from the two tunnels’ development. That includes San Joaquin River Exchange Contractor water, Cross Valley Canal water and San Joaquin River Restoration Program recirculation in addition to assumptions as to allocation of costs amongst water contractors.

All of this is crucial in Friant’s BDCP consideration because the tunnels, expected to cost many billions of dollars, are to be financed on a “beneficiary-pays” basis. Jacobsma said project proponents have indicated Friant’s share could be about $3 billion.

“The current process has lots of uncertainty,” Jacobsma said. “The bottom line is they won’t be starting construction any time soon on those twin tunnels.”

MORE DELAY

Delay, in fact, popped up again in late August when the California Department of Water Resources indicated that the BDCP needs more work as a result of the massive volume of public comments received on a draft environmental impact report.

Nancy Vogel, DWR spokeswoman, told the Sacramento Bee, “We’re going through it and we’re going to revise and send it back out for public review. We continue to look for ways to reduce the impacts to Delta residents and landowners.”

With a revised BDCP now scheduled to be released early next year, the newest delay is certain to consume several months. The plan has been seven years in the making.

The entire program’s cost is estimated at $25 billion. The BDCP is not to be funded through the pending state water bonds, should Proposition 1 be approved by voters. The Legislature intentionally kept the bond “Delta neutral” because of controversy surrounding the BDCP and twin tunnels.

The tunnels would be an isolated water conveyance system under the Delta between Courtland and state and federal water export pumping plants near Byron, northwest of Tracy.

EPA CONCERN

Meanwhile, a new wrinkle in the twin-tunnels plan popped up August 28 when the U.S. Environmental Protection Agency suggested the project could violate the Clean Water Act and increase harm to endangered species. EPA said the project could increase Delta concentrations of salinity, mercury, bromide, chloride, selenium and pesticides.

Patrick Cavanaugh2016-05-31T19:33:27-07:00September 5th, 2014|

Bayer CropScience Plans Further US Growth, Opens New R&D Site in California

Bayer CropScience sees a positive long-term market development in North America and is committing significant resources to spur further growth. “We see future growth driven by increasing and sustained demand from customers for improved seeds and innovative crop protection products,” said Bayer CropScience CEO Liam Condon at the September 3, 2014 official inauguration of the company’s new integrated R&D site in West Sacramento, California.

Liam Condon, CEO of Bayer CropScience

“We are investing heavily in R&D infrastructure such as laboratories, greenhouses and breeding stations as well as new production capacities and seed processing facilities,” Condon explained. He said that the company aims to grow faster than the U.S. market.

Bayer CropScience plans to invest close to US$ 1 billion (EUR 700 million) in Capital Expenditures (CAPEX) in the United States between 2013 and 2016, mainly to ramp up research and development and to expand a world-class product supply of its top crop protection brands. These expenditures are part of a global investment program Bayer CropScience started last year, with a total CAPEX for the period 2013 to 2016 of EUR 2.4 billion (approximately US$ 3.3 billion).

Consolidating and expanding R&D organization is key for Bayer CropScience

Bayer CropScience seeks to better leverage its full research and development capabilities by consolidating and expanding its global R&D organization. “Our integrated West Sacramento site represents a major step forward in our efforts to enhance our vegetable seeds and biological crop protection innovation efforts,” said Dr. Adrian Percy, Global Head of Research and Development at Bayer CropScience. “The investment into this state-of-the-art facility creates an environment where our researchers and experts can find the best possible conditions to discover solutions that growers across the globe can depend on to produce high-quality food in a sustainable manner.”

The new West Sacramento site, which also serves as the global headquarters of Bayer CropScience’s Biologics Business has the capacity to house up to 300 employees. The approximately US$ 80 million facility is situated on 10 acres of land and features a 100,000-square-foot building and a 35,000-square-foot pilot plant to support research and development of biological crop protection products, as well as a 30,000-square-foot Vegetable Seeds research building. The facility will also include a 2,000-square-foot greenhouse and five acres of nearby land for future greenhouse space.

Expansion of production capacities in the USA

Bayer CropScience’s New West Sacrmento Biologic Facility

In addition to building its R&D network in the USA, Bayer CropScience is also investing significantly in the production capacities of its crop protection products.

“Along with capacity expansions at our Muskegon, Michigan and Kansas City, Missouri sites, the construction of our new plant in Mobile, Alabama for the production of our herbicide Liberty™ will contribute significantly to our future growth plans,” stressed Condon, who pointed out that the increased production of Liberty™ will help U.S. growers fight weed resistance, a key challenge for U.S. farmers.

“The single biggest investment item in the USA is our planned capacity expansion of Liberty™ herbicide. This is a strong signal to the market as Liberty™ is the only nonselective herbicide that controls glyphosate-resistant weeds,” said Jim Blome, president and CEO for Bayer CropScience LP and Head of Crop Protection for the North American region. “Two-thirds of our planned investments in the United States between 2013 and 2016 are intended to expand our production capacities. This includes measures to further optimize our supply chain in order to increase flexibility and thrive despite market volatility,” Blome added.

Investments in Seeds business and U.S. infrastructure

Bayer CropScience is also investing constantly in its Seeds business. In June 2014, the company announced plans to expand its North American and global Seeds headquarters in Research Triangle Park (RTP), North Carolina. The RTP site has experienced significant operational growth in recent years, and approximately US$ 200 million will be invested through 2016. “The construction of greenhouses as well as the necessary infrastructure and land development represent our continued commitment to growth in RTP,” said Blome.

The overall RTP investment program includes further important projects, for example the construction of the Development North America facility dedicated to Crop Protection and Environmental Science research; renovations to Bayer CropScience´s North American headquarters, scheduled to be completed in 2015; construction of the 6,000 square-foot North American Bee Care Center; and the purchase of 70 acres of land to accommodate future growth, which includes a new 29,500 square-foot greenhouse.

Bayer CropScience also plans to invest approximately US$ 90 million in its Cotton Research and Development Laboratory in Lubbock, Texas. Founded in 1998, the company’s global cotton headquarters is focused on providing cotton growers with the products and solutions they need to meet the world’s growing demand for fiber. With a staff of around 120 experts, Bayer CropScience operates two breeding stations, a seed processing plant, a quality assurance lab, a seed warehousing facility, and a state-of-the art research and development lab.

Complementing this, the company also invested US$ 17 million in the expansion of its Memphis Research and Development site, bringing total greenhouse capacity to 76,000 square feet. Located in the heart of the Mississippi Delta, a world-class group of scientists, researchers, technicians and agronomists with a specialized set of skills is developing high quality cotton and soybean varieties as well as trait innovations. Their aim is to support Bayer CropScience’s growing global cotton and soybean seed businesses through molecular breeding and other innovative technologies.

Patrick Cavanaugh2016-05-31T19:33:27-07:00September 5th, 2014|

DPR Scientists Say Most Fresh California Produce Tested Has Little/No Detectable Pesticide Residues

The California Department of Pesticide Regulation (DPR) announced that once again, the majority of produce it tested annually had little or no detectable pesticide residues and posed no health risk to the public. 95 percent of all California-grown produce, sampled by DPR in 2013, was in compliance with the allowable limits.

“This is a vivid example that California fresh produce is among the safest in the world, when it comes to pesticide exposure,” said DPR Director Brian R. Leahy. “DPR’s scientifically robust monitoring program is an indication that a strong pesticide regulatory program and dedicated growers can deliver produce that consumers can have confidence in.”

DPR tested 3,483 samples of different fruits and vegetables sold in farmers markets, wholesale and retail outlets, and distribution centers statewide. More than 155 different fruits and vegetables were sampled to reflect the dietary needs of California’s diverse population.

Of all 3,483 samples collected in 2013:

43.53 percent of the samples had no pesticide residues detected.
51.51 percent of the samples had residues that were within the legal tolerance levels.
3.99 percent of the samples had illegal residues of pesticides not approved for use on the commodities tested.
0.98 percent of the samples had illegal pesticide residues in excess of established tolerances. A produce item with an illegal residue level does not necessarily indicate a health hazard.

Each piece of fruit or vegetable may legally contain trace amounts of one or more pesticides. The amount and type of pesticide (known as a tolerance), is limited by the U.S. Environmental Protection Agency. DPR’s Residue Monitoring Program staff carries out random inspections to verify that these limits are not exceeded.

The produce is tested in laboratories using state-of-the-art equipment operated by California Department of Food and Agriculture (CDFA). In 2013, these scientists frequently detected illegal pesticide residues on produce including:

Cactus Pads from Mexico,
Ginger from China,
Snow Peas from Guatemala and
Spinach from the US

Most of the 2013 illegal pesticide residues were found in produce imported from other countries and contained very low levels (a fraction of a part per million). The majority of the time they did not pose a health risk.

One exception occurred in 2013 when DPR discovered Cactus pads, imported from Mexico, that were tainted with an organophosphate-based pesticide. This had the potential to sicken people. DPR worked with the CA. Dept. of Public Health to issue an alert to consumers in February 2014. DPR also worked diligently to remove the entire product it from store shelves and distribution centers. In addition, DPR asked the US Food and Drug Administration to inspect produce at the borders and points of entry to stop shipments into California.

California has been analyzing produce for pesticide residues since 1926 and has developed the most extensive pesticide residue testing program of its kind in the nation. The 2013 pesticide residue monitoring data and previous years are posted at: http://www.cdpr.ca.gov/docs/enforce/residue/rsmonmnu.htm

Patrick Cavanaugh2016-05-31T19:33:27-07:00September 4th, 2014|

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