AG INSIGHT Agriculture, food industry involved in response to virus The COVID-19 pandemic has changed numerous aspects of everyday life, both in this nation and worldwide, and the U.S. Department of Agriculture has altered its programming in response to the virus’s challenges. Among other things, the department has launched the Farmers to Families Food Box program and has extended the contracts of select vendors from the first round of the effort, designed to “help fill the hunger gap in all of our communities.” From its start in mid-May, the program delivered through mid-June more than 17 million food boxes to some 3,200 nonprofit organizations across the United States, including Guam and Puerto Rico. USDA has extended the effort through the end of August, based on the performance of participating vendors, and has authorized up to $1.16 billion to fund it. Agreements with some vendors were extended with no adjustment to their delivery amounts while others’ amounts or locations were changed based on their demonstrated abilities to perform or a vendor’s request.
From its start in mid-May, the program delivered through mid-June more than 17 million food boxes to some 3,200 nonprofit organizations across the United States, including Guam and Puerto Rico.
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USDA says the extensions continue to require audits to ensure adherence to food safety plans and that 100% of food procured and delivered is U.S. grown and raised. Food products also must meet all USDA quality standards. The agency chose not to extend some vendors’ contracts either because of concerns brought up during audits or for performance challenges. Additionally, some contracts were not extended at the vendors’ request. In addition, USDA has begun new contracts with a few vendors whose offers were not previously accepted due to technical errors in their proposals. USDA says it continues to evaluate how to expand access to the program in underserved areas and is in the final stages of determining cities and states that have been affected by the economic impacts of COVID-19 and where additional food boxes are in demand. In early June, U.S. Secretary of Agriculture Sonny Perdue joined Governor Kay Ivey, U.S. Representatives Robert Aderholt and Terri Sewell, and Commissioner of Alabama Department of Agriculture and Industries Rick Pate in a virtual Farmers to Families Food Box event.
Orange juice sales spike in virus aftermath Reversing a downward trend that began 10 years ago, retail orange juice sales have risen since the U.S. onset of the current COVID-19 pandemic. One reason is that U.S. consumers may have sought methods to increase their intake of vitamin C, a nutrient commonly believed to build up a healthy immune system. During the four-week period after the pandemic announcement earlier this year, orange juice sales reached the highest level in five years at 44.5 million gallons. The average price of frozen concentrate orange juice in April rose 5% from the previous month to $2.40 per 12 oz. can, the first March-to-April sales price increase observed since 2012. In 2019, orange juice consumption in the United States had fallen to 2.25 gallons per capita, a 40% decline from 2010. The decrease in orange juice purchases is attributable to both demand and supply-side factors. Research has indicated that declining consumer interest in sugary beverages may be contributing to reduced purchases.
