Report: U.S. spending billions of dollars to subsidize junk food

 
A new report released this week has found that, among the billions of dollars spent each year in federal subsidies for commodity crops, a steady flow of these taxpayer dollars are going to support high fructose corn syrup and three other common food additives used in junk food.

The report, “Apples to Twinkies: Comparing Federal Subsidies of Fresh Produce and Junk Food” by CALPIRG and the U.S. PIRG Education Fund, studies the interesting question of whether the nation's problem with obesity is fueled by farm subsidies.

From 1995 to 2010, $16.9 billion in federal subsidies went to producers and others in the business of corn syrup, high fructose corn syrup, corn starch and soy oils, according to the report.

The findings come as the White House has been rallying to battle childhood obesity, and Congress is poised to potentially either quash or curtail direct farm subsidy payments in the future.

So how much is America spending? Enough for each U.S. taxpayer to buy 19 Twinkies a year, according to the report. In comparison, it said, federal subsidies for fresh produce would cover only a few bites of an apple per taxpayer a year.

One of the more interesting findings: Taxpayers in the San Francisco area spend $2,762,295 each year in junk food subsidies, but only $41,950 each year on apple subsidies.

“If these agricultural subsidies went directly to consumers to allow them to purchase food, each of America’s 144 million taxpayers would be given $7.36 to spend on junk food and 11 cents with which to buy apples each year –- enough to buy 19 Twinkies but less than a quarter of one Red Delicious apple apiece,” CALPIRG officials said in a statement.

You can read an executive summary of the report, and get a copy of the full report, here.

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Photo: Hostess Twinkies. Credit: Justin Sullivan / Getty Images / AFP

California wine grape harvest shows signs of shortage

There are times in agriculture when too little crop can mean a good thing for farmers and food producers but discouraging news for consumers.

This is where California’s wine industry is now, according to a recent report by researchers at UC Davis’ Graduate School of Management.

After California’s wine industry struggled to deal with a glut of grapes in 2003-04, a number of vineyards and growers went out of business because they had too much of a good thing. Now there are signs of a shortage of wine grapes.

Blame it on the weather, say researchers. Last spring northern California vineyards struggled through hard rain and a freeze. That, in turn, meant that the weather wasn’t conducive for the plants to get a good start on growing this season's grapes.

Now, as harvest begins, farmers are finding that the grapes are coming in a bit light, said Robert Smiley, director of wine studies at UC Davis.

“Depending on who’s counting and which varietal you’re talking about, you’re seeing [the crop] short about 20% to 30% statewide,” said Smiley, dean and professor of management, emeritus, at Davis’ graduate school of management.

“Going forward, that means consumers will likely see fewer wine discounts” on California wines because of the shortage in the crop, Smiley said. “If you don’t have enough product to meet demand, why cut price? You’re going to see the industry’s pricing tighten up.”

-- P.J. Huffstutter

Photo: Wine stockpiles at a Costco warehouse. Credit: Spencer Weiner / Los Angeles Times

China rejects U.S. complaint against chicken tariffs

The steamed chicken feet just haven't been as unctuous since China slapped tariffs on U.S. poultry imports last year.

The price of American chicken, including the prized feet euphemistically called "phoenix talons" in China, shot up between 50% and 100%, which will cost the U.S. poultry industry an estimated $1 billion in sales by the end of this year.

With that in mind, the U.S. Trade Representative's office announced Tuesday that it had filed a complaint with the World Trade Organization saying China violated international trade rules when it imposed anti-dumping and countervailing duties on U.S. chicken.

"China seems to have failed to observe numerous transparency and due-process requirements, failed to properly explain the basis for its findings and conclusions, incorrectly calculated dumping margins, incorrectly calculated subsidy rates and made unsupported findings of injury to China's domestic industry," the trade office said.

In a response Wednesday, China's Ministry of Commerce released a brief statement rejecting the U.S. claim.

"China's anti-dumping measures follow the law and are in accordance with WTO rules," the statement said. "China will study requests from the U.S. carefully and handle them under the WTO's dispute settlement system."

Imports of U.S. chicken to China have plunged 90% since the imposition of the tariffs, which are largely seen as retaliation for U.S. duties of 35% on Chinese tires.

The two countries are also sparring over steel, electronic payment services, wind energy equipment and industrial raw materials such as zinc and bauxite.

Before the battle over chicken erupted, U.S. poultry farmers enjoyed steady, high-margin business selling unwanted parts to China.

In 2008, about half the $677 million worth of chicken sold to China were chicken feet, sold for up to 80 cents per pound compared with just pennies in the U.S., according to Time magazine.

Although poultry is growing in popularity in China (KFC is the king of fast food in China and expanding rapidly), pork is still the overwhelming meat of choice.

By one estimate, Chinese consume three times as much pork as chicken at nearly 100 pounds per capita each year.

With inflation driving up prices for pork in China, U.S. hog farmers have found themselves in the opposite situation of their poultry-raising countrymen. Imports of U.S. pork have risen fivefold the first seven months of this year, compared with the same period last year, according to the state-owned China Daily.

China and the U.S. now have 60 days to resolve the current dispute on their own. If negotiations fail, the WTO can launch proceedings.

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-- David Pierson
Twitter.com/dhpierson

 Photo: A woman picks out chicken wings and legs at a market in Shanghai, China, on Wednesday. Credit: Qilai Shen / Bloomberg

Cantaloupe recalled amid Listeria outbreak

Fruit fans, it’s time to check your produce.

The federal Food and Drug Administration warned consumers Thursday that there is a widespread recall for whole cantaloupes sourced from a Colorado firm, amid concerns that the fruit may be contaminated with the Listeria bacterium. Federal officials say that the contaminated fruit may be linked to two deaths and 22 cases of people falling ill.

The fruit, from Jensen Farms, is being recalled after the company confirmed that one of its Rocky Ford melons had tested positive for Listeria.

Jensen Farms said on Wednesday that it was recalling fruit it produced between July 29 and Sept. 10, but reportedly said that there was no clear confirmation that its cantaloupes were the cause of the food contamination outbreak.

To date, federal officials say they know the fruit was shipped to Arizona, Colorado, Illinois, Kansas, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas and Wyoming.

The fruit that is being recalled “have a green and white sticker that reads: Product of USA-Frontera Produce-Colorado Fresh-Rocky Ford-Cantaloupe or a gray, yellow, and green sticker that reads: Jensen Farms-Sweet Rocky Fords,” according to FDA.

If the cantaloupe has no label, FDA officials ask that consumers contact the store in which they bought the fruit and ask them for information about where the produce was sourced. If the fruit is part of the recall, Jensen Farms asks that consumers get rid of it and not eat it.

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Photo: A cantaloupe. The FDA warned consumers Thursday that there is recall for whole cantaloupes sourced from a Colorado firm. Credit: Konrad Fiedler / Bloomberg

Consumer Confidential: Sentiment down, sales up, cars recalled

Labor talks between Ralphs, Vons, Albertsons and workers put on hold

 
The labor negotiations between Ralphs, Vons and Albertsons, and the seven United Food and Commercial Workers union area locals were temporarily put on hold Tuesday because the federal mediator responsible for overseeing the talks had to leave Southern California to deal with a family emergency.

The negotiations are expected to resume Thursday afternoon.

The labor negotiations, which have grown increasingly tense in recent weeks, are focused on hashing out deep divisions over healthcare benefits, worker scheduling and future staffing levels, according to sources familiar with the talks.

Officials from the UFCW and the three grocers have been meeting every day, and well into the night, for more than a week after a recent strike-authorization vote by union members that won strong support.

The labor contract that was approved in 2007 expired March 6. It has been extended day to day.

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Photo: Grocery workers protest outside the corporate headquarters of Albertsons in Fullerton in June. Credit: Mark Boster / Los Angeles Times

Whole Foods' half-price LivingSocial deal has shoppers scrambling

 

Hungry for a discount? Whole Foods Market Inc., the largest U.S. natural-foods grocer and high-priced haven to the locavore-meets-vegan-meets-foodie crowd, on Tuesday is selling 1 million coupons on the LivingSocial website.

The deal from the Texas-based chain: $10 gets you $20 worth of groceries. But it’s a deal that also aims to help bolster children's health, say company officials. Fifty cents from each coupon sold will be donated to the company’s Whole Kids Foundation, which works to help combat childhood obesity.

Daily deal sites have long offered food promotions, but industry watchers point out that the deals are typically good only at a single grocery site or at small restaurant venues, rather than at a mainstream grocer that has locations across the country. Grocery store chains, such as Ralphs and Albertsons, have long offered deals and coupons through their websites to people who sign up for their loyalty programs,  but the discounts are typically not this steep.

On Tuesday, LivingSocial officials touted the deal as the first such grocery deal to be offered on a national level.

Here how it works: LivingSocial subscribers –- or anyone who signs up Tuesday -– can buy the deal for the $10-for-$20 voucher. After the purchase clears, the person takes that voucher into any Whole Foods location. Store officials will then exchange the voucher for a $20 gift card.

It is free to sign up for LivingSocial, which can be found here. (No coupon hording: One voucher per person.)

As of 10:13 a.m. PDT, 602,821 vouchers had been sold, according to the LivingSocial website.

“We’re not a traditional grocery,” company spokeswoman Kate Lowery told Bloomberg News. “We’re always looking for alternatives and ways for our shoppers to save.”

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Photo: Shoppers browse the cheese and charcuterie section of a Whole Foods Market in El Segundo. Credit: Liz O. Baylen / Los Angeles Times

Consumer Confidential: Holiday sales, food prices, VW recall

Here's your mo'-money Monday roundup of consumer news from around the Web:

-- Merry Christmas. Retailers are already kicking the holiday season into gear. Christmas merchandise has been at Costco stores since Sept. 1 and will begin showing up on some Home Depot shelves Sept. 19. Kmart and Sears will begin selling Christmas trimmings Sept. 25. And Wal-Mart and J.C. Penney will start selling Christmas merchandise before month's end. More than 37% of shoppers — including 42% of women — plan to do some holiday shopping by Halloween, according to the National Retail Federation. Retailers are happy to oblige as they chase an estimated $450 billion of holiday spending. Ho ho ho.

-- But save some cash for your grocery bills. Food prices could rise next year because an unseasonably hot summer probably damaged much of this year's corn crop. The Department of Agriculture estimates that a surplus of 672 million bushels of corn will be left over at the end of next summer. The estimated surplus is down from last month's forecast and well below levels that are considered healthy. This spring, farmers planted the second-largest crop since World War II. But high temperatures stunted the plants. More expensive corn drives food prices higher because corn is an ingredient in everything from animal feed to cereal to soft drinks. It takes about six months for changes in corn prices to affect products at the grocery store.

-- Heads up: Volkswagen is recalling more than 30,000 Jetta sedans from the 2011 and 2012 model years because the tailpipes can stick out too far and burn people. The National Highway Traffic Safety Administration says stainless steel exhaust pipe tips installed at ports of entry and dealerships can stick out farther than the factory-installed tailpipes. If the tips are hot, they can burn people on the legs. Volkswagen received complaints of burns in July and began investigating. The company says the complaints came from fewer than 10 people. Dealers will inspect the recalled cars to see if the exhaust tips are too long and will replace them free of charge if necessary.

-- David Lazarus

Photo: Look who's already getting ready for work. Credit: CBS

 

FDA takes closer look at gluten-free labels

 
The federal Food and Drug Administration is taking a closer look at how gluten-free products are being labeled and is weighing stricter standards.

The agency has reopened the comment period, which will last through this month, for its 2007 proposal about labeling foods as “gluten-free.” One of the issues the FDA is proposing is that foods labeled as “gluten-free” can’t contain 20 parts per million or more gluten.

The agency is reexamining the issue because, back in 2007, it was difficult to scientifically validate such levels of gluten using the methods and techniques that then were available. Now, according to the agency, technology has advanced and such detections are available.

Such labels are key to people who have celiac disease, which means their bodies can’t tolerate gluten, a protein found in wheat, rye and barley. Celiac disease damages the small intestine and interferes with absorption of nutrients from food, according to the FDA.
 
“Before finalizing our gluten-free definition, we want up-to-date input from affected consumers, the food industry, and others to help assure that the label strikes the right balance,” Michael Taylor, FDA deputy commissioner for foods, said in a statement. “We must take into account the need to protect individuals with celiac disease from adverse health consequences while ensuring that food manufacturers can meet the needs of consumers by producing a wide variety of gluten-free foods.”

To comment on the issue, click here and follow the directions.

This public discussion is happening as the FDA reportedly is also proposing to revamp food labels in general.

The proposal, according to Associated Press, would offer a clearer (and more realistic) definition of a serving size -- because really, how many people look at a 20-oz. bottle of soda and see 2.5 servings? -- and place more of the label’s focus on calories than on carbohydrates or proteins.

The quest to create a better, clearer label on food products -- and therefore help Americans make better food choices and combat obesity -- has been an ongoing effort by federal officials for eight years. While the FDA has said the proposal wouldn’t be a massive overhaul, officials reportedly have said they want food labels to be more useful for Americans when shopping or eating out.

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Photo: A shopper in a Florida grocery store. Credit: Joe Raedle / Getty Images

UC Davis to offer 'green' agriculture degree

 
With rising public interest in where our food comes from -– as well as in "green" living –- it makes sense that higher education would be eager to attract students who want to tap into the intersection between these two fields.

So UC Davis – that bastion of all things agricultural – is launching an undergraduate major focused on agricultural sustainability.

The degree, a bachelor of science in sustainable agriculture and food systems, aims to give students a deep understanding of the "many issues facing modern farming and food systems, including production, processing, distribution, consumption and waste management," according to an announcement by the university.

School officials added that "students will focus on the social, economic and environmental aspects of agriculture and food – from farm to table and beyond. The program is designed to help students obtain a diversity of knowledge and skills, both in the classroom and through personal experiences on and off campus."

Some UC Davis students have already begun transferring into the new major, the school said. UC Davis will start taking applications for the major from freshmen and transfer students later this year.

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Photo: Bees on a flower in a field near Dixon, Calif. Credit: Associated Press

Want to make your cow pretty for the fair? Try hair spray.

 
You may not put lipstick on a pig, but what about hair spray on a cow?

Absolutely.

In the highly competitive world of livestock contests and state fair competitions, beautifying a steer before the judges take a peek takes time, skill and a whole lot of grooming products. That’s where the roll of cattle fitters, or “show jocks” in circuit slang, come in. They are the beauticians to the bovine set, and they are charged with gussying up their clients to their championship best.

There are scores of these fitters on the circuit. Some are 4-H kids, learning how to care for their animals, or college students eager to put their years in Future Farmers of America to use. Others are ranchers who primp their own cattle and occasionally handle other people’s animals for $100 a day and all the fair food they can stomach.

Their beauty kits hold an array of tools, from industrial-strength hair dryers and hair oils that smell like roses to jugs of Clear Choice, billed as “the ultimate in livestock shampoos!”

But some products are off-limits. Using black paint was once a staple in show jocks’ beauty kits for primping Black Angus cattle. The American Angus Assn., however, in 2004 banned the practice of using the paint on the breed. Why? The paint, officials said, helped show jocks hide tricks that were not allowed, such as using a chemical sprays to create –- no joke -– cattle hair extensions.

To read more about two cattle fitters and their show ring star, click here.

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Photo: Elizabeth Vietheer, 10, uses a show stick to gently scratch the belly of her Black Angus cow and calm the animal before she is groomed at the California State Fair Livestock Pavilion. Credit: PJ Huffstutter / Los Angeles Times

Bad weather raises concern over future food prices

 
Corn futures rose Monday amid speculation that the recent rains in the Midwest won't be enough to ease drought conditions and boost farmers' yields.

Indeed, it has been a brutal year weather-wise for much of the country, particularly for the Midwest and Texas. In the spring there were floods, which made it difficult for farmers to get their crops planted in the ground.

This summer, heat waves have damaged crop fields, and intense droughts in Texas and Oklahoma have resulted in cattle dying and ranchers rushing to sell their animals, even if they took a loss. The extreme weather has raised concerns that a smaller-than-expected supply of corn, soybeans and other core commodity crops might ripple out and keep consumer food prices high in the coming months.

Last month, the U.S. Department of Agriculture cut its forecast for this year’s harvest and predicted that grain inventories, though still hitting record highs, would come in lower than previously expected. Among its estimates: Corn was forecast to hit 12.9 billion bushels, down from previous forecasts of 13.5 billion bushels.

Corn futures in Chicago rose 9 cents on Monday, closing at $7.20 a bushel for a September delivery. The price has jumped 21% from $5.96 a bushel on July 1, and is nearing the three-year high of $7.85 reached on June 9.

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Photo: A corn crop failed to mature in a Texas field this July. A severe drought has caused most non-irrigated crops in the area to fail and forced farmers to abandon some fields to conserve their limited resources. Credit: Scott Olson / Getty Images