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In the Cart
a publication of the Texas Food Council                                  March 2010
In This Issue
Food Safety & Product Recalls
WIC Program Update
Environmental & Sustainability Issues
Upcoming Events
TRA Spring Meeting
April 7 & 8
Hilton Post Oak
Houston, TX
 
TRA Night In Italy
PAC Fundraiser
April 7
Maggiano's Little Italy
Houston, TX
 
TREF Annual Golf Classic
May 5
Eagle Pointe Golf Club
Mont Belvieu, TX
 
TRA 50th Annual Meeting
Anniversary Celebration
September 16 & 17
Westin Riverwalk
San Antonio, TX
Food Safety & Product Recalls

Food safety continues to be a major concern in the consumer's eyes. TRA recommends you monitor at minimum the two web site addresses for food product recalls. For meat, poultry, and egg products log onto www.fsis.usda.gov/fsis_recalls/ and for all other food products log onto www.fda.gov/safety/recalls/default.htm. Just as an example we received notices on the following items just this month:
  • American Pecan Company - pecans
  • NestlĂ© -Toll House Cookie Dough
  • Setton Pistachio - pistachios
  • Little Brownie Bakers - Girl Scout Lemon Chalet Cookies
  • Johnny's Fine Foods - Powdered Au Jus French Dip
  • Wm Leahy - Carbotrol, Sugar Free Puddings
  • Daniele - Salami/Salame Products
  • Walong Marketing - Flying Horse Black & White Sesame Candy
  • Pierino Foods - Jumbo Shells w/ Cheese 
When I reviewed the list on the FDA recall page, the notices we received represented little less than 40% of the total recalls posted on the FDA web site. They had 24 recalls posted. FDA posts those by day and by month so very easy to track. 
WIC Program Update
Food Package Changes
The unit sales for January are being complied at present. We don't have access yet to the individual item sales and will forward those as soon as we receive them. This is the state-wide sales information. We have seen a continued decrease in WIC sales state-wide. FNS (Food Nutrition Service) mandated states reduce prescriptions for fluid milk (approximately 35%), Eggs (50%), Cheese (50%), and in some states fluid juice. In Texas, our state agency had already reduced the amount of fluid juice being prescribed, but on October 1 we did move to different sizes prescribed. These categories traditionally carried high redemption percentages each month. With the start of the conversion of those dollars from those core categories to the Fruits & Vegetables, grain products, jarred baby food, and etc., the redemption rates for those categories have dropped substantially. We are seeing an increased pattern of redemption in each of those new categories in January. To give you an idea, here are the main categories and their redemption rate in Oct 09 compared to Jan 10. All the numbers posted are approximate amounts. A chart is available of actual units and percentages per month if desired.

Category                    
Fluid Milk - Oct 09  80% - Jan 10  86%
Cheese - Oct 09  81% - Jan 10  85%
Eggs - Oct 09  86% -  Jan 10  89%
Grains (bread, etc) - Oct 09  52% - Jan 10  62%
Jarred Baby Food - Oct 09  53% - Jan 10  60%
Fruits & Veg - Oct 09  65% - Jan 10  76%
 
TX WIC EBT Enhancement Meeting
Several retailers, third party processors, developers, and WIC EBT hardware companies gathered in Dallas on the 24 and 25 of February to meet with Texas WIC, Wyoming WIC, New Mexico WIC, Isletta Indian Nation, Cherokee Indian Nation (all whom operate a smart card system for distribution of WIC benefits) and FNS (Food Nutrition Service) to discuss ways the interested stake holders could standardize procedures, processes, and consider other types of program enhancements that the retailer community had expressed interest in on behalf of the WIC clients. The two day agenda included the following items: Split Tender, Standard Discount Policy, Self-Checkout, Dispute Resolution & Appeal Policy, Benefit Maximization, Standardize Claims Processing, Standardize Units of Measure, Certification Process Improvements, Standardize Test Keys, Eliminate System Certification Mode, Interoperability
 
WIC EBT-OK
TRA and representatives from Wal-Mart, Brookshire Grocery and Harp's met with Oklahoma Grocers on February 19th to discuss benefits of WIC EBT system installed and operating in TX, NM, WO, and in several Native American Tribal Areas. Oklahoma has been leaning toward a system similar to what we currently use for Food Stamp transactions and would not be compatible (interoperable) with TX WIC grocers operating along the border. Several of our members with store operations either on the state lines next to NM, LA, AR, or OK or with store operations in those states would like to see those states move to similar system that is currently operating successfully in the areas mentioned above. It appears FNS (Federal Agency) who recommended and approved TX/NM to develop the chip card system has determined it is too costly for FNS to fund this system in all the states, so in recent years has only approved funding to develop On-Line Systems which incorporate Stand Beside Systems (double scan, no mixed basket scan), number of lanes limited to WIC Volume, no universal integrated solution and the transaction costs per transaction are moved to the retailers side of the expense equation. Because of the immense memory required to move a WIC transaction versus a Food Stamp transaction, the states participating in this type of system have experienced multiple outages. In TX, we don't have system outages as long as we have power (electrical or generator) to the POS. The transaction takes place in the lane in real time. The concern is with the shift of FNS to supporting the on-line systems which aren't able to communicate with the chip card system currently in place in TX that Congress at a point in time would mandate the states move to one system nation-wide. We do not want to step back down to an on-line solution. That would be like we've learned to walk then would be forced to go back to crawling instead. Besides just think you would be forced to pay a transaction fee (similar to current credit card fees) for each and every WIC transaction conducted in your store versus the 30/31 (daily) transactions you submit currently. 
 
SNAP (Food Stamp) Program Update

Enrollment Issues
 
FNS has approved process of allowing Food Banks in Houston, San Antonio, Dallas, and Ft. Worth to help eligible SNAP clients process their applications for eligibility that will allow them access to the SNAP benefits they can qualify for. This will help the state meet the federal guidelines of processing eligible applicants within a thirty day window. The downturn in the economy, plus some cut backs in recent years with state employees in the field offices, led to a back log of eligible clients waiting over 60 days to be processed. This failure to meet the federal agencies requirement also prevented TX from applying for some grants available to those states operating within the federal agency guidelines. To the SNAP grocers, it meant a loss of SNAP food sales close to a billion annually throughout the state. This past month, there were approximately 3.3 million Texans receiving food assistance from SNAP compared to 2.3 million a year ago? The back log of eligible clients that once was over 40,000 has now dropped down to approximately 16,000 and over 90% of that backlog in Houston and Dallas. The partnership with the Food Banks is designed to eliminate that back log and once again allow the state to meet federal guidelines. A welcome change since average SNAP Household qualifies for approximately $323.00 per month in food assistance and makes an average 9 trips to the store to use those benefits.
Environmental & Sustainability Issues
  • Brownsville TX still struggling to educate consumers and retailers about plastic bag ban at the POS.  Looks like they will now be exempting some entities from the ban like bags for food take out and heavier weighted plastic bags. These actions indicate it is targeted toward light weight bags retailers and grocers use and not necessarily the environmental or litter issues that were supposed to be the main reasons for adoption of the ordinance.
  • San Antonio City Manager has instructed the San Antonio Solid Waste Department to hold a meeting of interested stakeholders on March 12th from 1:30-3:30 at the SA Solid Waste Offices on discussing a plastic bag ban for businesses operating in San Antonio. We haven't received official notice of the meeting but did confirm verbally that it is being planned. TRA will be in attendance. Please let us know if you would like to receive notice of the meeting as well.
  •  Houston Environmental Group (Buffalo Bayou Partnership) announced on February 22 that they were lobbying Texas lawmakers to pass a "Bottle Bill". Under the proposal, consumers would pay a dime deposit when purchasing a bottled drink (hasn't been determined if this implies to soda, water, tea, milk, juice, beer, or etc). They are convinced the tax could help fund clean up in every stream that goes through a major city. The concern is with the deficit looming for the state, Texas lawmakers look at this as a possible source of revenue to help offset a large deficit. There are eleven states with bottle bills and this type of legislation has proven to be expensive and inefficient at reducing litter. On average, bottle bills capture less than two percent of the solid waste stream whereas well planned and marketed recycling programs are proven to be much more effective and cost efficient to operate. Bottle Bill also potentially creates another food safety issue in the stores with bottles returned for deposits. Another food safety issue we don't need at store level.
  • Federal Update on BPA and possible impact on Grocers
     
    BPA (Bishphenol A) is an epoxy resin used as a protective coating to help prevent corrosion and contamination, avoid food spoilage, provide longer shelf life, and to provide coating in the product that protects from the risks of broken or chipped glass. .Many countries still support the use of BPA for use in food contact products. Currently Congress, through the FDA (Food and Drug), is reviewing the safety of BPA and may eventually issue guidelines on BPA.
     
    Manufacturers have removed BPA from baby bottles which was center of news stories and public pressure recently. Now there is consideration of a bill that would ban BPA in baby bottles, sports water bottles, reusable food containers, infant formula liners, and food can liners. Food manufacturers aren't waiting for legislation though. If consumers decide they don't want BPA, then companies will and have started efforts to find a replacement for BPA linings. The concern is that there isn't a consensus of BPA being harmful to humans.
     
    A web site that might be of help is hosted by American Chemical Council at www.factsaboutbpa.org.