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Summer/Fall 2013 

AMS Welcomes New Administrator Anne L. Alonzo

Charles W. Parrott, Deputy Administrator, Fruit and Vegetable Program 

Welcome to AMS Fruit and Vegetable Program News. We have a number of exciting topics to cover in 

this issue. First among them is to introduce Anne L. Alonzo, the new Administrator of the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS). Ms. Alonzo came on board May 6, 

replacing former Administrator David Shipman upon his retirement. 

 Ms. Alonzo comes to AMS with a noteworthy and wide-ranging career as a global 

policy leader with a unique and diverse background in the public, private, and not-forprofit sectors. She has held positions in the areas of food and agriculture, trade policy 

and promotion, sustainability, and the environment. Most recently, Ms. Alonzo was the 

Vice President of Global Public Policy for Kraft Foods, where she led all of Kraft’s global corporate affairs work in the areas of sustainability, tariffs, tax and trade, and health and wellness. She also directed its global issues management team. During this time, Ms. Alonzo was elected Chair of the 

World Cocoa Foundation, a membership organization focused on creating a sustainable cocoa economy and improving the lives of cocoa-farming communities worldwide. Ms. Alonzo looks forward to 

working with you and plans to visit with many AMS stakeholders during her tenure. 

 I also want to take this opportunity to update you on the AMS’s Fruit and Vegetable Program's (FV) current budgetary status. Because many of our services are funded by user fees, we are seeing less of an impact than other USDA 

agencies. While Market News and other divisions do receive appropriated funds, our ongoing cost-saving measures 

have reduced the impact felt by our stakeholders. In recent years, we’ve optimized our efficiency by consolidating organizational units and closing offices to anticipate 

your changing needs so we can continue to improve service delivery to you. Be assured that we are unwavering 

in our commitment to identify additional efficiencies and 

manage our resources effectively. 

Continued, see Welcome on page 2. 

In This Issue 

 Market News Introduces a New Feature 

 PACA’s Ounce of Prevention—Oranges 

 Developing New Markets for Mushrooms 

 Expanding Almond Exports 

 Buying Foods for Schools 

Administrator 

Anne Alonzo 

Chuck Parrott 

United States 

Department of 

Agriculture 

Agricultural Marketing Service 
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Market News Introduces the New Custom Average Tool 

Fred Teensma, National Reporting Technology Manager, Market News 

Fruit and Vegetable Market News is excited to introduce a new 

feature on our web portal. In response to numerous customer requests, our new Custom Average Tool (CAT) is now up and running. 

 Market News Custom Reports provide very detailed price information by commodity or location. The CAT allows users to condense the data provided in the detailed reports and create average 

price summaries specific to their needs. A CAT report supplements 

the detailed reports and is best used as a tool to observe price 

trends over time. 

 The CAT was developed in partnership with the USDA’s Risk Management Agency, National Agricultural Statistics Service and the AMS 

Promotion and Economics Division. 

 To use the CAT, click on “Run a 

Custom Average Pricing Report” on 

the Market News Portal at 

www.marketnews.usda.gov/portal/fv. 

To learn more about using the 

CAT, please see the Custom Average 

Tool (CAT) Dashboard Users Guide in the “Help” section of the CAT or contact me. 

Fred Teensma is the National Reporting Technology Manager 

of Fruit and Vegetable Market News. He can be reached at 510-926-1263 

or fred.teensma@ams.usda.gov.

Cover photo courtesy of Camknows. 

Welcome, from page 1. 

Our commitment to being responsible financial stewards is equaled by our dedication to improving our services to you. 

For example, take a look at the new Market News tool we recently introduced. The Custom Average Tool (CAT) makes it 

easy to view average price trends over a period of time, select a range of data desired, download data in a spreadsheet, 

and much more. The CAT is now prominently displayed on our Fruit and Vegetable Market News Portal. 

 As always, this issue contains a number of articles that we hope you will find helpful to your business. Our goal is to 

introduce our staff, talk about programs we are developing for you, and highlight new and existing services. Please feel 

free to contact me at charles.parrott@ams.usda.gov or the FV staff if you have any questions. 

CAT Features 

 Filters data from a broad parameter selection for a general 

average to a narrow, specific average 

 Provides a simple Overall Average Price for the criteria selected 

 Presents data in a dashboard format for easy viewing of 

price trends over a period of time and allows you to view the 

average at each price point 

 Aggregates data in table format in a downloadable CSV file 

that can be opened by spreadsheet programs such as 

 Microsoft Excel 
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An Ounce of Prevention - Oranges 

Robert Parker, Assistant to the Chief, PACA Division 

Welcome back to another edition of “An Ounce of Prevention” 

by the Perishable Agricultural Commodities Act (PACA) Division. Have you been eating your five servings of fruits and vegetables every day? Have you been exercising regularly? 

That’s good advice when it comes to preventing illness, but let’s 

talk about preventive medicine for your produce business. As 

mentioned in our previous article, the PACA Division identified 

certain commodities that, while being traded, have a tendency 

to result in disputes. 

 In the case study below, we are addressing common problems encountered when trading oranges. The preshipment handling of oranges varies by production area and season. Generally, the fruit is washed, waxed, treated, and 

packaged for shipment. 

Q. We sold a load of “Choice” oranges from our warehouse in California to be delivered to our customer in Baltimore. 

When the load arrived, our customer was not happy with the oranges and called for an inspection. The results of the 

inspection showed 12 percent scarring, 7 percent bruising, 1 percent decay, and that they had “Failed to Grade U.S. No. 

1.” The customer was aware these were our second-label oranges and should have been inspected on the basis of a 

U.S. No. 2 Grade. Now the customer wants a price adjustment even though the customer did not buy U.S. No. 1 oranges. We want an inspection based on a U.S. No. 2 Grade. Can you help us out? 

A. There is no definition of “Choice” in the U.S. Grade Standards for Oranges. There are definitions for U.S. No. 1 and 

U.S. No. 2 Grades, which can be found on our website, along with other grade standards for fresh fruits, vegetables, 

nuts, and specialty crops. While it is true that some shippers will reference their first and second labels, it cannot be assumed that such reference is equivalent to a U.S. No. 1 or U.S. No. 2 Grade orange. So more than likely, we are looking at a no-grade contract and would only consider the condition defects reported on the inspection. Consequently, only 

the bruising and decay would be taken into consideration in determining suitable shipping condition or what is more 

commonly referred to as good arrival. Because scarring is a grade defect, it is not factored into the results of the inspection. Therefore, the sum of the remaining defects would fall within the guidelines for a no-grade contract, and your customer would owe you in full. 

Q. Are there guidelines that the PACA Division provides for good arrival? 

A. Yes. The PACA Division provides a chart of suitable shipping condition guidelines on its website at F.O.B. Good Delivery Guidelines. 

We hope this sheds some light on just a couple of issues that come up frequently when buying or selling oranges. Keep 

an eye out for the next edition of “An Ounce of Prevention” on a commonly traded commodity. 

Robert Parker is the Assistant to the Chief, 

Dispute Resolution Branch, PACA Division. 

He can be reached at 202-720-2890 or 

robert.parker@ams.usda.gov. 

Cucumbers Sweet Peppers 

Asparagus Stone Fruit 

Lettuce Strawberries 

Onions Tomatoes 

ORANGES Watermelons/Cantaloupes 
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AMS Commodity Procurement: 

Meeting the Needs of Schools and U.S. Agriculture 

Sara Hernandez, Agricultural Marketing Specialist, AMS Commodity Procurement 

Each year, the USDA buys and distributes over 900 million pounds of fresh and processed American-grown fruits, vegetables, nuts, and other products. These products are distributed to the USDA's National School Lunch Program, food 

banks, and disaster relief organizations, among others. These purchases provide healthy food to students and others 

and encourage American agricultural production by providing a market for domestic products, stabilizing prices, and balancing supply and demand. 

 The AMS Commodity Procurement Program and its trained and experienced staff serve as USDA’s buyer of agricultural products. Our mission is to 

seek out and purchase products on USDA’s approved list of foods, as well as 

to add more products to the lineup and increase opportunities for suppliers. 

 We continually work to improve how we do business. For example, we 

launched the Web-Based Supply Chain Management (WBSCM) system, 

which increases the agility of the procurement process by allowing for customized contracting methods. WBSCM also increases our effort toward more 

transparency and enhances the reporting of procurement activities and contract administration processes. 

 To learn more about opportunities to sell to the USDA, please contact me. 

Sara Hernandez is an Agricultural Marketing Specialist 

with the AMS Commodity Procurement Staff. 

She can be reached at 202-680-4734 

or sara.hernandez@ams.usda.gov.

Commodity Procurement 

 Visit the AMS Commodity Procurement Program website to 

see all purchase solicitations, 

due dates, and details on subsequent awards. 

 See the types of fresh and 

processed produce, and other 

products that the USDA purchases. 

 Subscribe to the CP News for 

the latest commodity procurement news. 

USDA AMS Fruit and Vegetable Program 

Serving the produce industry since the early 1900s, the Fruit and Vegetable Program’s fee-for-service offerings are 

delivered via a nationwide network of trained and experienced staff. Our customers include growers, shippers, brokers, distributors, processors, retailers, and restaurants, among others. Our services include: 

 Audit-based programs 

 Perishable Agricultural Commodities Act (PACA) enforcement 

 International representation 

 Inspection and grading 

 Commodity purchases 

 Self-help marketing programs 

 Market News reports and information 

 Industry training 

 U.S. Grade Standard establishment 

More information is available at www.ams.usda.gov/fv, or from Christopher Purdy at 202-720-3209, or christopher.purdy@ams.usda.gov. 
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Specialty Crops Inspection Division Supports 

the USDA Commodity Purchase Program 

John Lund, Chief, Business Development, Specialty Crops Inspection Division 

In the Winter/Spring 2013 issue of AMS Fruit and Vegetable Program News, the article titled “Interested in Selling to 

USDA?” by Dianna Price (Dianna.price@ams.usda.gov) provided information on selling to USDA for both existing and 

new vendors. 

 AMS’ Specialty Crops Inspection Division (Division) conducts the audits and inspections of fruits and vegetables sold 

to USDA. The Division’s nationwide staff reviews products and shipments to ensure safety standards are met and that 

products meet U.S. grade standards and other USDA contract specifications. 

 Here are a few details about the requirements of selling to the USDA: 

Any grower or processor interested in selling to USDA must meet established standards and specifications to ensure the safety and quality of the 

fresh and processed fruits and vegetables we purchase. For example, 

 Plants must have Food Defense Plans that provide for the security of 

their processes, 

 Processing/packing facilities must pass Good Manufacturing Process 

(GMP) audits, 

 Farms providing produce must pass Good Agricultural Practices (GAP) 

audits, and 

 All purchased fruit and vegetable products must be inspected for quality 

and condition. 

 For more information about the audits and inspections required to sell to 

USDA, please feel free to contact me. 

John Lund is the Chief of Business Development 

for the Specialty Crops Inspection Division. He can be reached 

at 202-690-4938 or john.lund@ams.usda.gov. 

The Specialty Crops 

Inspection Division: 

 Provides grading, inspection, 

and certification services; 

 Develops and maintains U.S. 

grade standards; 

 Provides audit-based services 

for fresh and processed products to verify: 

 Good agricultural and 

manufacturing practices 

 Hazard Analysis and Critical 

Control Points systems 

 Traceability 

 Food defense plans 

New PACA Animated Presentation 

The Perishable Agricultural Commodities Act (PACA) Division recently 

released a new animated presentation on the variety of services we provide to the produce industry. Watch the presentation at PACA Introduction or find it on the PACA home page.
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Webinars 

Christopher Purdy, 

Business Development Specialist 

Webinar Series. To see the 2013 

webinars that you may have missed 

visit our Webinar Archive. 

 For information about upcoming 

webinars, please contact me. 

Christopher Purdy is the 

Business Development 

Specialist for the Fruit 

and Vegetable Program. 

He can be reached at 

202-720-3209 or christopher.purdy@ams.usda.gov 

U.S. Grade 

Standards 

Copies of U.S. Grade Standards 

are available for free 

on the Internet. 

 Processed produce standards: 

www.ams.usda.gov/processed 

inspection. Click on “Find a 

Standard” in the right column. 

 Fresh produce standards: 

www.ams.usda.gov/fresh 

inspection. Click on “U.S. 

Grade Standards” in the right 

column. 

“Blendability” Builds New Mushroom 

Markets 

Sonia Jimenez, Director, Promotion and Economics Division 

Blendability: Replacing a portion of ground meat in a recipe 

with finely chopped mushrooms. 

The Mushroom Council introduced a new concept 

called “Blendability” that it hopes will expand the 

demand for mushrooms in school meal programs. 

Rather than replacing students’ favorite foods, the 

“blendability” concept develops meal options that 

blend mushrooms and meat. This concept increases the amount of vegetables in school lunches to 

help schools meet the U.S. Department of Agriculture’s new meal pattern requirements. 

 In partnership with major meat processors, 

the mushroom industry created a new category of meat/mushroom products 

available for school and commercial foodservice. Examples of “blend-able” 

foods include fajitas, chili, sloppy joes, meatballs, burgers, and tacos. Samples of blended dishes were showcased at School Nutrition Association and 

Produce Marketing Association events, where they received high marks. 

 The Mushroom Council is one of the research and promotion programs 

administered by the USDA Agricultural Marketing Service’s (AMS) Promotion 

and Economics Division. With a research and promotion program in place, 

commodity groups establish their own board of industry representatives who 

conduct promotion, market research, production research, and new product 

development for the benefit of their industries. Through these self-help programs, AMS helps the produce and specialty crop industries expand domestic 

and foreign markets for their commodities. 

 If you have any questions about the Mushroom Council's efforts, or other 

research and promotion programs, please feel free to contact me. 

Sonia Jimenez is the Director of the 

Promotion and Economics Division. 

She can be reached at 202-720-9915 

or sonia.jimenez@ams.usda.gov. 
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An Industry and Government 

Partnership To Expand Almond Exports 

Lillie Zeng, Agricultural Marketing Specialist, 

Marketing Order and Administration Division 

In response to European Union (EU) concerns about U.S. almonds not meeting EU aflatoxin limits, and to reduce the 

number of rejected shipments, the U.S. almond industry collaborated with the Federal Government to develop the Voluntary Aflatoxin Sampling Plan (VASP). 

 Implemented in 2007, the VASP is a pre-export sampling and aflatoxin testing program developed by the Almond 

Board of California (Board), in conjunction with the U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS), Agricultural Research Service (ARS), and Foreign Agricultural Service (FAS). Under VASP, U.S. almonds 

undergo testing at any of 15 private testing laboratories approved by AMS to verify that shipments meet the stringent EU 

regulations. Verified shipments then receive an official certification from AMS allowing them to more efficiently clear EU 

entry procedures. Although voluntary, the program has 100 percent participation by the industry. 

 Since VASP has significantly reduced EU rejections of U.S. almond imports, the almond industry has increased the 

consistency of its EU export shipment volume. The success of the program allowed the almond industry to expand the 

marketability of U.S. almonds abroad and gain other countries’ trust in the quality of U.S. commodities. Presently, 70 

percent of the U.S. almond crop is exported, with Germany and Spain among the top foreign buyers. 

 The Almond Board of California administers the Federal almond marketing order. Since 1950, the almond industry 

has instituted programs like VASP and carried out industry marketing efforts that helped make the U.S. almond industry 

a 2-billion-pound global business. 

 Under a Federal marketing order, individual commodity industries can pool resources, collaborate on scientific and 

market research, and grow the visibility and viability of their crops. Administered by USDA’s Marketing Order and 

Agreement Division (MOAD), Federal marketing orders are authorized through the Agriculture Marketing Agreement Act 

of 1937. MOAD has 28 distinct marketing order programs tailored to meet the specific needs of each industry. We welcome suggestions to customize marketing order programs to meet the specific and advancing needs of the industry. For 

questions about VASP or Federal marketing orders, please contact me. 

Lillie Zeng is an Agricultural Marketing Specialist 

with the Marketing Order and Administration Division. 

She can be reached at 202-690-3870 

or weiya.zeng@ams.usda.gov.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and 

where applicable, sex, marital status, familial status, parental status, religion, sexual 

orientation, genetic information, political beliefs, reprisal, or because all or part of an 

individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative 

means for communication of program information (Braille, large print, audiotape, 

etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 

1400 Independence Avenue SW, Washington, D.C. 20250-9410, or call (800)795-

3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and 

employer. 

Mention of a trade name or brand 

names does not constitute endorsement 

or recommendation by USDA over similar products not named.