Nation's diet becomes a growing concern

Public Record, The, Nov 30, 2004 by Slahor, Stephenie

If local farmers weren't already thinking about the American diet. the sixth annual AgSummit in Coachella brought it to the forefront. Titled "Growing Smart, Eating Healthy," the Nov. 18 event included discussion about the nation's poor nutritional habits, as well as a look at the state of agriculture as an industry.

According to Brian Lewis of Best, Best & Krieger in Indian Wells, the most pressing business concerns for farmers rank in order of importance this way: labor costs, increased foreign competition, water issues, government regulation. and energy costs.

At the Nov. 18 summit, Lewis presented the results of a recent agribusiness survey that included growers (63 percent of the sampling), processors (117 percent), distributors (11 percent), and whole salers/retailers (9 percent). All but 13 percent of the survey respondents were from the Coachella Valley.

"Farmers are more optimistic this year than last" due to "increased sales and output," Lewis said. But he acknowledged that increased operating costs and increased foreign competition create pressure for farmers. Forty-eight percent of those surveyed felt there would be an improvement over last year's profits, 36 percent felt profits would be the same, and 17 percent felt there would be a decline. Among those who expect a decline, 42 percent said the decline would be attributable to increased operating costs, and 33 percent said it would be from increased foreign competition.

Respondents split on the subject of labor wages, with half saying there would be a slight increase and half saying wages would remain the same in the next year. Overall, the number of employees is expected to remain the same for 72 percent of the respondents.

"The 'Buy California' program is keeping marketing expenditures about the same," Lewis said, with 70 percent planning to decrease their marketing expenditures, and 25 percent planning to increase them only somewhat.

"Foreign competition is seen as a threat that will impact the future," Lewis said. Twenty-four percent of survey respondents feared a significant increase in foreign competition next year, 33 percent said it would increase somewhat, and 43 percent said it would remain at present levels. None of the respondents thought foreign competition would decline, said Lewis. He added, "Sixty-five percent say it would be a benefit to do a country-of-origin label" on produce.

Lewis next turned his attention to urban encroachment on the valley's available farmland. He said the encroachment is seen as a boost to land value by 75 percent of those surveyed. But 55 percent of respondents think it will cause stricter regulations in air quality management, and 50 percent think it will lead to more restrictions in pesticide use. Lewis pointed out that land value increases will affect decisions on farm acreage growth and expansion as land becomes less affordable to acquire for agricultural use.

Last year a crisis in water availability was feared," triggering fear of a rise in water costs, Lewis said. "But this year, increases will be less than anticipated or feared." Among survey respondents, 67 percent said they expected only a slight increase in water costs, and 23 percent said water costs would be about the same. As for water availability, 78 percent of respondents anticipated no change, 18 percent thought water availability would decrease somewhat, and 4 percent anticipated a significant increase.

On the diet issue, 71 percent of farmers said low-carb and similar trends have not affected sales. Fifteen percent saw only a slight impact, and 14 percent said it had a definite impact.

As diet fads grow, nevertheless so do waistlines. According to Chuck Ahlem, undersecretary of agriculture with California's Department of Food Agriculture, said 25 percent of American children are obese, and another 25 percent suffer from malnutrition. He said farmers can "turn this whole health-care issue around in short order." Programs such as "5-a-day" that encourage eating five fruits and vegetables each day are only the beginning, he said. California should focus on providing a "nutritious package to children at risk" by structuring production and marketing toward healthy eating. "We've got to start educating the folks on the right kind of food for nutrition," he said. "The marketplace is up to us to manage."

Ahlem contended that consumers really don't care much about agriculture as a source of jobs or as a key factor in a strong economy. Instead, they care whether their food is homegrown or imported, the healthiness of their food, and that food is produced in an environmentally responsible way. "There's a tremendous amount of opportunity, but we can't afford to fight among ourselves any longer," he said. To illustrate the success of such cooperation, he said farmers and ranchers have joined efforts as "caretakers of the environment" to help solve air and water pollution problems associated with agricultural production. He added that Gov. Arnold Schwarzenegger has invited the Department of Food and Agriculture to send representatives to many other government departments, including those that oversee environment, health and education. This allows producers to give input into the matters that affect not only farmers, but also consumers, so better standards of nutrition can be met.