In this episode of Local Foods TV and Radio, we cover a range of food-related stories from around the world, the nation, and locally. We begin with concerns over China’s shrinking farmland and its potential impact on the country’s food security. Next, we discuss new labeling requirements for meat products in the USA, which aim to provide consumers with more information about where their food comes from. We then take a look at the volatile outlook for agricultural commodities, exploring the impact of factors like weather, war, and economic tensions on global markets. Next we recap the Natural Products Expo West, a major trade show for the natural and organic food industry in the United States. Finally in local news, we report on how Colorado’s food banks are preparing for a surge in demand as the state’s nearly 553,000 SNAP recipients face an average reduction of $90 per month in assistance starting March 2023.
Welcome to Local Foods TV and Radio. I’m Your host Derek Samaras bringing you the latest news in the world of food.
This week we begin with a story out of China, where a recent article from Foreign Policy reported that the country’s farmland may be in serious trouble.
China’s massive population consumes a tremendous amount of food each day, including grain, edible oil, vegetables, and meat. The Chinese Communist Party has long recognized the importance of food security, particularly following the devastating famines of the Maoist era. In recent years, the CCP has focused heavily on protecting farmland and promoting high-standard farming practices.
According to Tang Renjian, China’s minister of agriculture and rural affairs, Every day, China’s 1.4 billion people consume a staggering 700,000 tons of grain, 98,000 tons of edible oil, 1.92 million tons of vegetables, and 230,000 tons of meat.
But despite these efforts, recent reports suggest that China’s farmland is under threat from a range of factors.
Climate change, pollution, and rapid urbanization are all contributing to the degradation of farmland across the country. Additionally, the government’s aggressive push to modernize agriculture has led to the consolidation of farmland and the displacement of small farmers, further exacerbating the problem.
The consequences of China’s shrinking farmland could be severe. As the world’s most populous country, China is heavily reliant on domestic food production to feed its people. If farmland continues to shrink, the country could be forced to rely on expensive imports to meet its food needs. This could drive up prices and exacerbate food insecurity, particularly for low-income families.
The Chinese government has recognized the severity of the problem and has taken steps to address it. However, experts suggest that more needs to be done to protect China’s farmland and ensure the country’s long-term food security.
Next, we have a story from the USA about new labeling requirements for meat products.
The Associated Press reports that: Federal agriculture officials have released new labeling requirements for meat, poultry or eggs that would allow the label “Product of USA” only if the animals are born, raised, slaughtered and processed in the United States. This is a significant change from the current policy, which allows voluntary use of such labels on products from animals that have been imported from foreign countries and slaughtered in the USA. The proposed rule has been praised by consumer advocates and representatives of US ranchers and farmers.
The U.S. Cattlemen’s Association, which petitioned the USDA for the label change in 2019, has welcomed the new rule. According to the group’s president, Justin Tupper, the proposed rule accurately defines what these voluntary origin claims mean. He added that consumers have the right to know where their food comes from.
Director of food policy for the Consumer Federation of America, Thomas Gremillion, has called the change a small but important step that should have been made long ago. Under the current rule, a cow can be raised in Mexico under that country’s regulations for feed and medications, shipped across the border, and slaughtered the same day to make ground beef and steaks that qualify as “Product of USA.”
The existing rule also penalizes small domestic producers, according to Carrie Balkcom, executive director of the trade group American Grassfed Association. She added that large producers were importing animals raised elsewhere and just repackaging them and then coasting on the “Made in the USA” label.
However, an official with the North American Meat Institute, which represents large firms that process most of the meat and poultry products sold in the USA, has expressed concerns about the new rule raising prices for consumers.
And the industry group: the National Cattlemen’s Beef Association, has called for eliminating the voluntary USA labels entirely and allowing for strict labeling standards verified by the USDA.
Next we’ll be taking a look at the volatile outlook of agricultural commodities.
Experts at the International Sweetener Colloquium in La Quinta, California on March 1st stated that war, weather, economic tensions, and tight global supplies are driving volatility across multiple commodities.
Global dairy markets saw a sharp decline in global dairy products in 2021-22, and analysts are forecasting a slow recovery for current and future dairy markets worldwide. According to Mary Ledman, the global strategist for dairy at Rabobank, during the pandemic, dairy farmers across the world were signaled to produce more products. However, weather, diminished export opportunities, and higher feed costs have pressured recent production.
Reduced shipments to China, the world’s largest importer of dairy goods, have also impacted production in exporting countries. But US exports of some dairy products, like butterfat, actually increased last year. The United States is picking up the market’s share of exports, explained Ledman. US exports of butterfat were expected to increase nearly 9% since US prices are currently some of the lowest in the world.
Global stocks for grain and oilseeds were still tight amid continually strong demand, and the outlook for those markets remained uncertain. According to Stephen Nicholson, the executive vice president and global sector strategist for grains and oilseeds at RaboResearch Food and Agribusiness, there are many swing factors in play, from what’s going to happen to the economy to unstable geopolitical situations. One major market factor Nicholson touched on was weather, saying drought continues to impact major grain producing areas in several countries, including the United States.
In conclusion, with the ongoing effects of the pandemic, weather patterns, and global tensions, it is vital to understand that agricultural commodity markets remain unpredictable.
In other national news:
The Natural Products Expo West, also known as the ‘Superbowl’ of the Consumer Package Goods industry. This five-day trade show and conference brings together tens of thousands of people from the natural and organic food and beverage industry to launch, taste, sell, promote, and negotiate products.
The Expo is being held at the Anaheim Convention Center in California, and this year we’re seeing a significant focus on vegan and alternative protein products. With over 3,100 exhibiting booths, and an estimated 60,000 participants, this is the place to be for brands in the natural and plant-based space.
According to the non-profit The Good Food Institute, over 100 alternative protein companies are exhibiting at the show, with the vast majority of them using plant-based technology. Additionally, the Plant-Based Foods Association lists 76 of its members as exhibitors, while 25% of the booths feature vegan products.
For companies looking to showcase their products, booths at the Expo don’t come cheap. Forbes reports that booths usually start at around $15,000, and companies can end up spending close to $100,000 when factoring in travel, booth design, samples, and related costs.
Despite the high costs, the Expo is a hotbed for emerging brands, food and beverage trends, and new product innovations. Brands are using this opportunity to showcase their products, with a bevy of future food tastings taking place during the show.
We’r seeing companies like TiNDLE, SweetEarth, and Upton’s Naturals offering tastings of their plant-based chicken, new recipes, and seitan products. Additionally, Daiya Foods is giving attendees a taste of their new chicken frozen pizza and flatbread SKUs, while Voyage Foods is debuting a new line of low-carb, keto-friendly meal options.
Overall, the Natural Products Expo West is the place to be for companies looking to showcase their latest products and innovations in the natural and plant-based food industry
And in Local News there are concerns over the end of pandemic-era food assistance and what it means for Colorado’s food banks.
As of March 2023, people who qualify for the Supplemental Nutrition Assistance Program, or SNAP, will no longer receive the maximum legal allotment for their household size. This means that many families in Colorado will see a reduction in their food assistance benefits.
According to the Colorado Department of Human Services, the average person receiving SNAP benefits in the state will lose about $90 in assistance per month. That’s a roughly $53 million monthly reduction overall.
This reduction in benefits is expected to lead to a surge in demand for food banks across the state. Colorado’s food banks have been bracing for this eventuality and are working hard to ensure they can meet the increased demand.
Since March 2020, when the pandemic hit, people receiving SNAP benefits have been getting emergency allotments, which were supposed to expire when the federal public health emergency ends in May. However, Congress decided to end them early, affecting nearly 30 million people nationwide, including those in Colorado.
Currently, about 553,000 people in over 291,000 households in Colorado receive food assistance. In January, monthly payments averaged about $538 per household.
This reduction in benefits has already been implemented in 18 states, affecting about 10 million people. And now, Colorado is preparing for its own reduction in benefits.
Well that it for the news.
Now, it’s time to continue our discussion with our Local Foods TV and Radio panel.
Leading the panel discussion today are Kimberly and Nathan Mudd, the founders and managers of both the Arvada & Westminster Colorado farmers market for the last 10 years. Kimberly has an extensive background in accounting and financial reporting, while Nathan is a practicing attorney. Together, they have over 30 years of experience in the local foods industry.
Also with us is Vern Tharp, a Colorado businessman with a wide-ranging business background of workouts and turnarounds in deals dealing with organic farming to mining operations to Gap Filling Weather Radars.
So, let’s dive into the discussion!