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USDA proposal could mean $500 million

HAY MAKER

Well-known member
USDA proposal could mean $500 million in new business to produce
By Joan Murphy
08/15/2006
WASHINGTON -- The eagerly awaited government proposal that for the first time ever allows low-income mothers and children to buy fresh fruit and vegetables with WIC vouchers is seen not only as a public health revolution but also a boon to the produce industry.

The rule, if it becomes final, could lead to big changes for fruit and vegetable suppliers. Industry experts estimate that the new U.S. Department of Agriculture proposal could translate into $500 million in new business. The top 20 fruits and vegetables, such as bananas, apples, tomatoes, carrots, oranges and broccoli, could see huge sales increases.

The produce industry must wait until USDA publishes a final rule next spring, then states would have one year to implement the sweeping changes to the Special Supplemental Nutrition Program for Women, Infants & Children, which serves millions of low- income mothers and children across the United States.

"This means WIC moms will be spending money in supermarket produce departments," said Lorelei DiSogra, vice president of nutrition and health for the United Fresh Fruit & Vegetable Association.

The new dollars will trickle down to every part of the produce supply chain, she said, and as two pilot studies in California showed that this means supermarkets located in rural and urban areas will add more fruits and vegetables for their WIC shoppers. Retailers will benefit a lot, she said, because financially strapped WIC moms may not have regularly shopped in the produce departments.

The National WIC Association called the proposal the most significant and meaningful changes proposed since the program began in 1974, and it praised USDA for bringing the food package closer in line with the 2005 Dietary Guidelines for Americans.

USDA's decision came after the Institute of Medicine recommended offering produce valued at $10 a month for women and $8 a month for eligible children. Faced with budget constraints, USDA proposed package that would allow $8 per month for women and $6 per month for children.

"IOM's scientific reports and our own common sense confirm that vulnerable populations, such as WIC program participants, need access to fresh fruits and vegetables," said Kathy Means of the Produce Marketing Association. "In addition to providing health benefits, consuming fresh produce helps combat health problems including obesity and problems associated with being overweight."

But since the proposal had to be "cost-neutral," USDA reduced servings of milk, cheese, eggs and juice -- a move that health advocates believe brings the WIC program more in compliance with the latest dietary recommendations for women and children.

The dairy industry is already gearing for a fight.

"We're disappointed that budgetary constraints are leading USDA to a decision to cut the amount of dairy foods available to some of our neediest Americans," said National Milk Producers Federation President Jerry Kozak. "Even under the current program, many WIC participants do not get recommended levels of key nutrients that are easily included in the diet with milk and cheese products. Those levels would be further diminished under this proposal."

The opposition will be strong, Douglas Greenaway, executive director of the National WIC Association, cautioned during an Aug. 8 teleconference. He said that his group is urging physicians and the medical community to weigh in during the 90-day comment period so "we're successful at the end of the day."

"We'll need thousands of people to comment [from the produce industry] that they embrace the proposal," said Dr. DiSogra. All the groups have watched the success of the popular pilot studies that offered fruit and vegetable vouchers to WIC moms and kids for the first time. "My colleagues in California believe this will revolutionize access to fruits and vegetables in rural areas and cities," said Dr. DiSogra.

The USDA proposal would encourage states to issue small denominations, such as $2 vouchers, to use to pay for fruits and vegetables, allowing moms to buy small amounts of fresh produce at various times during the month. Any combination of authorized fresh or processed fruits or vegetables would be allowed in quantities up to the cash value.

USDA would also allow farmers at farmers markets to accept WIC vouchers. Comments are due on the proposal by Nov. 6.
 

RoperAB

Well-known member
Fruit and dairy would make more sense than vegtables that they could easily grow themselves in the backyard or at a community garden.
 
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