Welcoming FruitSmart to the Food Northwest Family!
FruitSmart of Grandview, Washington is a privately held company that got its start in 1982. The company provides a vast array of quality fruit juices, purees, concentrates, essences, fibers, seeds, seed oils, and seed powders to customers all over the world. It operates a 128,00 square foot production/office/storage facility in Grandview and a 335,000 square foot storage facility with dry/refrigerated/freezer space in nearby Prosser, WA.
Registration Is Open for the Oregon Corporate Activities Tax
The new Oregon Corporate Activities Tax (CAT) will take effect on January 1, 2020. This new tax is based on gross sales and will impact all companies with sales of $750,000 or greater. The Oregon Department of Revenue has now opened registration for the tax. Companies must register within 30 days of reaching the minimum sales volume, however, if you believe your company sales will exceed the $750k mark in 2020, you may register early. Regulations governing the new tax and filing procedures are not yet published. We expect draft rules by mid-December and initial temporary rules to be filed on January 1, 2020.
Here is a helpful newsletter on the CAT tax from Kuenzi and Company CPA’s.
The USMCA is Signed and Ready for Congressional Approval
Officials from the United States, Mexico, and Canada signed the United States-Mexico-Canada-Mexico Agreement (USMCA) in Mexico City yesterday. The USMCA is the successor to NAFTA and has been a major area of focus for President Trump. Democrats in the U.S. House of Representatives have been working with Mexican negotiators and recently approved the agreement in its current state. The House will vote on the bill soon, but Senate Majority leader Mitch McConnel has stated that he will not hold a vote to ratify the USMCA until after the Senate Impeachment Hearings. To learn more, visit this Reuters article.
Idaho Attempts to Align with Hemp Rules in 2018 Farm Bill
Idaho Governor Brad Little signed an executive order November 22 legalizing interstate transportation of industrial hemp through Idaho. The order helps address part of Idaho’s conflicts with current USDA rules. Despite the 2018 Farm Bill which legalized growth and sales of industrial hemp (defined as < 0.3% THC content), Idaho made national headlines when it arrested two truck drivers transporting industrial hemp through the state. The drivers were charged with felony drug trafficking and the entire load was impounded.
Idaho agencies have been working to make transportation of hemp compliant with the 2018 Farm Bill. As part of the process, a public hearing detailing the labeling requirements for hemp was held in Boise November 25. Food Northwest attended via teleconference. All required forms were approved with no opposition and set to go live on the ISDA website November 26.
In a phone discussion, Governor Little indicated he thinks it is quite likely to see a Hemp Bill passed in Idaho legalizing industrial crop growth. While much of the population does not philosophically object to industrial hemp, there is concern among some processors about the potential impact. Southern Idaho dry bean acreage has dropped significantly in recent years and area growing conditions are particularly favorable for hemp production. While grain acreage is also at risk, bean processors are at particular risk of a catastrophic reduction in bean acreage if a Hemp Grow Bill is passed.
National Gas Supply Assn. Supports Carbon Pricing
The National Gas Supply Association has announced their support for carbon pricing as a means to “aggressively reduce carbon emissions.” The association’s membership includes Exxon, British Petroleum, Chevron, Shell, and Conoco Phillips.
In their announcement, the association said that they believe a national policy across all sectors would be the best approach but encouraged states to take actions now that would “incorporate a price on carbon in power markets.” NGSA also released a one-page fact sheet titled “Effective Carbon Pricing” in which they “urge state policymakers to adopt a price on carbon, ideally as part of a coordinated regional approach…”
Oregon Office of Economic Analysis Covers Food Manufacturing Closures
The Oregon Office of Economic Analysis published an article covering food manufacturing closures in the Salem area. While it may be concerning to see facilities close, the overall employment in food processing continues to increase. Read the article here.
USDA Dietary Guidelines Update Will Include Birth to 24 Months
USDA and HHS are working on updates to the American Dietary Guidelines. The 2020-2025 guidelines will for the first time include recommendations for infants aged 0-24 months and for pregnant women. The guidelines are extremely significant since they form the basis for federal nutrition policy and programs. Read more…
Updates from ISDA Public Meetings
Bonna Cannon, Food Northwest’s field representative in Idaho, attended the Idaho State Department of Agriculture’s public meetings over the last few weeks. Here are some very informative updates on important work under ISDA’s purview.
The Twin Falls-based Idaho Food Quality Assurance Institute, aka IFQAL continues its work to serve a broad cross-section of the food and beverage industry. Created in response to the 1989 Alar apple crisis catalyzed by 60 Minutes, IFQAL now works with organizations such as the Idaho Potato Commission, ISDA-FIFRA, and Ag Water Testing to advance food safety in Idaho. Test volume increased in 2019 over 2018 as the lab rebounded from personnel turn-over and equipment failures and is now stable and has successfully addressed equipment challenges. With a new focus on continuous improvement, the lab is showing vast improvement in turn around and reliability as a leader among all the other state labs.
The ISDA Organic Program has also stabilized its operations by hiring personnel, clearing a backlog of projects, and reducing report and certificate issuance turnaround by 75%. For the first time since 2017, the program re-opened for Organic producer applications this past January, starting by reaching out to 37 entities that had been placed on a waiting list. The program currently has resources to support up to 300 applicants with a cap of 200 crop operations. Currently, the program has 268 certifications.
Other topics discussed with the advisory committee included non-manure based biological soil amendments, greenhouse placement on non-transitioned soils, lease crop rotation concerns, Dairy/calf clarification, and material reviews with staff limitations compared to Washington, California, and Oregon.
A FSMA gap review was provided by ISDA Chief of Staff Pam Jukker. During the 42 gap assessments performed by ISDA, it was noted there was overall improvement. The most significant remaining gaps are centered around facility design and maintenance. Celia Gould, Director of the ISDA, also joined us to speak about the efforts staff members make to keep the department lean.
Both IFQAL and the Organic Program have challenges with IT support. IFQAL very much needs a LIMS (Lab Information Management System), but subscription costs and cohesion with the other state labs are stumbling blocks. Similarly, the Organic Program manages its operations via Word documents and spreadsheet in lieu of a software solution. This is a significant continuous improvement opportunity. Both programs are self-funded and receive only minor support (< 10%) from the State’s general funds.
The presence and participation of Food Northwest across all the ISDA departments has been extremely well-received thus far.
Cosmic Crisp Hits the Shelves
It is big news in the world of apple production… the Cosmic Crisp apple was released into retail sales last week! The Cosmic (pictured in this issue’s header) is a cross between the Enterprise and the Honeycrisp and has been the focus of a lot of marketing hype in the past few months. The variety was developed by the Washington State University tree fruit breeding program in Wenatchee, WA and has been under development for 20 years.
The Cosmic Crisp keeps well in storage and reportedly stays in eating shape for up to a year in a refrigerator. Washington apple growers have a 10-year exclusive right to sell the variety, and growers have already planted 12 million Cosmic Crisp apple trees. Keep your eyes peeled for this exciting new variety in your local grocery stores!
Simplot Helps South Central Idaho CAFE
Earlier this month, fundraising efforts took a significant step forward for the southcentral Idaho CAFE (Center for Agriculture, Food and the Environment). The project received a $1 million donation from Food Northwest member J.R. Simplot Company, allowing the University of Idaho to reach a benchmark of $10 million and finally match the $10 million state appropriation.
This $45 million project was started more than 12 years ago and includes an advanced research dairy, 1000 acres of associated cropland, CAFE Discovery complex, education/outreach facility, and a visitor center. It also includes a food-processing pilot plant for education and research in partnership with the College of Southern Idaho. Targeted to be the largest research dairy in the US, it will focus on improvements in wastewater treatment and nutrient management to help protect the environment while ensuring the future of dairy production in Idaho.
Construction is scheduled to start in 2021 and milking is targeted to start in Spring 2024.
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NORTHWEST FOOD & BEVERAGE WORLD
February 17-19, 2020 in Spokane, WA
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Food Northwest Leadership Summit
May 5-7, 2020 at Willows Lodge in Woodinville, WA
Thanks for reading! If you have any suggestions for future newsletters or any questions, please email Josh!
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