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Demand Spurs Farmers to Consider the Organic Option

By Lorrie Baumann

American consumer demand for fresh, organic produce is creating the market that’s encouraging more farmers to convert land to organic production, according to Laura Batcha, Executive Director of the Organic Trade Association, and John Reganold, Regents Professor of Soil Science & Agroecology at Washington State University. “I’m hearing from a lot of the certifiers focusing on farm level operations that 2015 was their biggest year ever for new applications. There is an awareness of the supply crunch,” Batcha said. “There are produce companies that are going out and talking to farmers about transitioning because they do need the supply of organic.”

Consumer demand for organic produce has been growing rapidly, and the result has been that the U.S. has become a net importer of organic produce. The available trade data suggests that we’re importing produce during the winter season when it’s not available within the U.S., Batcha said. The exception to that is tropical products like bananas and mangoes, which can’t be grown in the mainland U.S. Coffee is the organic crop that’s most commonly imported into the U.S.

The United States is also a major importer of organic corn and soy livestock feed. “We’re relying on overseas production that could be done in U.S. except that we don’t have the growers,” Batcha said.

On the other hand, American organic farmers are also finding new markets outside the U.S., especially for products like carrots and apples, and the value of those exports to a world that’s hungry for organic produce is helping keep those farmers in business. “The U.S. is a major supplier of fresh fruits and vegetables to the world, and the world is looking for organic products,” Batcha said. “The exports really do help with profitability. They tend to be able to get a premium, … and that helps to sustain the industry.”

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The Organic Trade Association is encouraging more American farmers to convert their land to organic production to meet the demand and is experiencing some success, although most of that is coming from younger farmers. The average American farmer, though, is about 58 years old. “There are a number of reasons for that. Farmers get more resistant to change once they reach about 40,” Reganold said. “To change a system from conventional to organic might happen more with younger people. Organic farmers tend to be younger, and maybe that reflects young people being more willing to change…. When I talk to organic, conventional, or other farmers, that issue comes up: we need more young people. Getting young people involved is not easy.”

“We’ve been talking about the supply issue for about a year and a half now. I’m at the point where I’m starting to feel a little hopeful. We’ve seen a lot of innovative partnerships happening within the supply chain to encourage farmers to go organic,” Batcha added. “Farmers are embracing a lot of different models in agriculture – organic being one of them. Younger folks are open to new ideas, and they’re experimenting. The desire is there for the vocation and the lifestyle, but there’s also the desire and the expectation to actually make a living doing it. Organic provides the opportunity to create a different financial model to get through that succession. We’re just going to see more of it.”

One obstacle is that transitioning land from conventional to organic production is a three-year process that involves compliance and documentation for a whole new set of regulations. “It takes time because you have to document and you have to answer questions for certifications,” Reganold said. He added that, despite the headaches of dealing with the rules, he’s finding more farmers who are committed to a process that offers benefits for their soils as well as a future for their farms. “A lot of us are anti-regulation – we have farmers who want to regulate themselves,” Reganold said. “[They’re saying,] ‘It’s okay to check my records.’”

“The success rate goes up dramatically for farmers who have a support system for knowledge transfer. Organic systems are more information intensive. If you’re going from conventional to organic, you’re losing the arsenal of chemicals and you have to learn how to manage without that. Your weed environment might change, your disease environment might change. You have to plan ahead because you don’t have instant solutions to the problems that come up,” Batcha said. “The imbalance between supply and demand always comes with a lag, particularly in agriculture, where you can’t accurately forecast three years out. We’re going to live in an environment when you’re short or long. We’re really trying to prepare now for new policies that can support growers when they’re transitioning. We seem to have gotten the attention of USDA [U.S. Department of Agriculture] on that issue.”

33 Smart & Final Store Locations Acquired From Haggen Now Open for Business

Smart & Final, one of the longest continuously-operating food retailers in the U.S., has announced that all 33 lease locations it acquired in December 2015 which were operated under the Haggen banner are now open as Smart & Final Extra! stores.

The transition and re-opening of the 33 stores was a considerable undertaking that has allowed Smart & Final to make significant strides in achieving its Project 100 Initiative goal of opening 100 new stores over the next four years. In opening the 33 stores, Smart & Final has increased its presence in the important Los Angeles and Orange County markets, and doubled store count in the California Central Coast and San Diego.

Each store opening created more than 50 new jobs, with Smart & Final hiring more than 1,900 associates to support the 33-store increase. Additionally, in line with its promise to give back to the communities in which it operates, for each new store opened, Smart & Final’s Charitable Foundation™ made donations to local nonprofits, resulting in over $140,000 in philanthropic donations. Furthermore, through its “First Street First Percent” campaign, Smart & Final will donate the first one percent of net profits from the sale of its private label brand First Street® in US-based Smart & Final banner stores to the Smart & Final Charitable Foundation, which supports local nonprofits such as Boys & Girls Clubs, food pantries and Little League organizations.

Smart & Final offers a one-stop shopping experience where businesses, clubs and organizations, as well as household shoppers, can fulfil their grocery needs while also stocking up on thousands of club-size products, all without a membership fee. All new stores feature Smart & Final’s Extra! format, which includes expanded frozen, deli and meat sections, a full produce section, organic and natural food products, high quality perishables and meats, a wide selection of private label offerings, and unique products such as self-serve bulk goods by the pound and oven-roasted chicken. The company is also testing new merchandising initiatives including hot bakery, sushi and cut fruit offerings in select stores.
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“The positive growth and momentum Smart & Final has experienced is a true reflection of our consistent focus on value, quality and convenience which has not gone unnoticed by today’s savvy shopper,” said Chief Executive Officer Dave Hirz. “I’m excited that these 33 new stores provide an opportunity for Smart & Final to reach more customers with our unique offering, broad range of products and dedicated staff, and am confident that our brand promise will continue to give us a competitive edge in this market. I truly appreciate the dedication and effort of our associates to achieving this incredible milestone and want to welcome all of the new associates that have joined our team,” Hirz added.

Between January 20 and May 11, 2016, Smart & Final opened 11 Smart & Final Extra! stores in the San Diego area, seven in Los Angeles County, four in Orange County, three in Ventura County, four in the Central Coast, and two in the Inland Empire, all of which were formerly operated under the Haggen banner, and one additional non-Haggen location in Sacramento County.

Currently, Smart & Final operates 306 stores in California, Oregon, Washington, Arizona, Nevada and Idaho, including 251 Smart & Final banner stores, 160 of which are Smart & Final Extra! format stores. As part of Project 100, the company plans to open 100 new stores over a period of four years, in line with its 10 percent annual unit growth plan, and to hire at least 5,000 new employees to staff those stores over the next four years. Smart & Final is approximately one year into Project 100, and almost one-third of the way towards meeting its goal of 100 new stores. Several more stores are slated to open this year.

Beaverton Foods Wins Four Gold Medals at World-Wide Mustard Competition

Oregon’s 87-year-old specialty condiment manufacturer took home a grand total of eight awards; four of them gold medals – at the 21st annual World-Wide Mustard Competition. The event involved more than 100 judges at the National Mustard Museum in Middleton, Wisconsin. The global competition has included entries from as far away as Japan, Greece and Sweden.

Barry Levenson, curator of the National Mustard Museum, noted in an email: “The rest of the world is ‘yellow with envy’ of Beaverton’s long dominance at the World-Wide Mustard Competition.”

Beaverton imageBeaverton won gold medals for Inglehoffer Sweet Hot Mustard in the Sweet Hot category, Inglehoffer Ghost Pepper Mustard in the Pepper Hot (Scorching Hot) category, Inglehoffer Hot Horseradish Mustard in the Horseradish/Wasabi category and Beaver Cranberry Mustard in the Fruit category. The company was awarded silver medals for Beaver Brand Dusseldorf Mustard in the Classic Hot category and Inglehoffer Horseradish Wasabi Mustard in the Horseradish/Wasabi category and bronze medals for Inglehoffer Sweet Hot Mustard in the Pepper Hot (Mild to Medium) category and Inglehoffer Creamy Dill in the Herb/Veggie category.
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Domonic Biggi, CEO of Beaverton Foods, said the fourth generation family-owned and operated company is proud to be a long-time participant in the renowned international mustard competition. “It’s humbling to say we have won more than 150 medals at this annual competition,” he said. “We are especially pleased that our new Inglehoffer Ghost Pepper Mustard was selected for a gold medal. Additionally, we’re grateful that culinary experts around the world like our products.”

The annual competition is open to all commercial mustard producers and agents worldwide. There are 16 flavor categories of which there are gold, silver and bronze awards given to the contestants. Since 1995, judges consisting of chefs, food writers and mustard aficionados have blind tasted the mustards in the competition.