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USDA Invests $121M in Specialty Crop and Organic Agriculture Research
Rising Food Costs: Eggs and Meats Drive August Price Increases
SEPC Kicks Off Southern Innovations 2024
USDA
USDA Invests $121 Million to Boost Research and Support for Specialty Crop and Organic Agriculture
The U.S. Department of Agriculture (USDA) has allocated nearly $121 million to support research and outreach initiatives aimed at enhancing specialty crop and organic agriculture.
Of this, $70.4 million will fund research on specialty crops, such as fruits, vegetables, and horticultural products, while $50.5 million will be directed toward organic farming, including food and fiber production. These investments are part of the USDA’s efforts to promote sustainable, competitive agricultural practices nationwide.
The funds will support various projects under the National Institute of Food and Agriculture's (NIFA) Specialty Crop Research Initiative. These projects address key challenges like labor efficiency, climate change, and organic farming improvements.
Notable initiatives include research by North Carolina State University to develop automation and production efficiency solutions for nursery crops and efforts by Washington State University to help apple and pear growers adapt to climate change.
Additionally, $50.5 million will be allocated to organic agriculture projects under the USDA’s Organic Agriculture Program. This includes efforts to improve organic yields and market potential, such as Pennsylvania State University’s research on organic grain systems.
Another key project, led by The Organic Center for Education and Promotion, focuses on increasing racial diversity within the organic certification workforce.
These investments build upon prior USDA efforts, including an $82.3 million grant to support specialty crop producers through market development and research.
CONSUMER PRICE INDEX
Rising Food Costs: Eggs and Meats Drive August Price Increases Amid Mixed Grocery Trends
In August, the Consumer Price Index (CPI) for All Urban Consumers saw a 0.2% increase, matching July's growth, according to the U.S. Bureau of Labor Statistics.
Over the past year, the all-items index increased by 2.5%, marking the smallest 12-month rise since February 2021. The primary driver of this increase was shelter costs, which rose by 0.5%, alongside increases in motor vehicle insurance, airline fares, and apparel.
Food prices experienced only a modest rise, with the overall food index increasing by 0.1%. The food-at-home index remained unchanged, though individual grocery categories showed mixed results.
Meat, poultry, fish, and eggs saw a 0.8% rise, with egg prices notably jumping by 4.8%. Dairy products also increased by 0.5%. On the other hand, prices for nonalcoholic beverages fell by 0.7%, and the fruits and vegetables index decreased by 0.2%.
Over the past year, the food index has risen by 2.1%, with meats, poultry, fish, and eggs up 3.2%. In contrast, fruits, vegetables, cereals, and bakery products declined slightly, with the produce industry seeing a 0.2% decrease in prices over the same period.
This indicates a mixed performance for grocery prices, with some categories like eggs experiencing notable increases, while others, such as fruits and vegetables, saw decreases.
The index for food away from home continued to rise more sharply, up 4% over the year, reflecting higher costs in the dining sector. Despite relatively low inflation compared to recent years, essential categories like shelter and dining remain key contributors to ongoing inflationary pressures.
SOUTHERN INNOVATIONS 2024
SEPC Kicks Off Southern Innovations 2024 with Industry Insights and Consumer Trends
The Southeast Produce Council (SEPC) kicked off its Southern Innovations 2024 event with a VIP dinner cruise on the General Jackson Showboat on September 11, followed by a three-day conference at the Gaylord Opryland Resort in Nashville.
A key highlight of the event was the unveiling of SEPC’s fourth annual “What’s New? 2024” consumer research report, presented by Anne-Marie Roerink of 210 Analytics, which explored evolving trends and consumer behaviors in the produce industry.
The report emphasized that while price remains a key consideration for consumers, shopping decisions are increasingly influenced by other factors such as convenience, health benefits, and environmental sustainability.
David Sherrod, SEPC president and CEO, noted that consumers are balancing budgets with needs and desires, and the value equation is not just about finding the lowest price. In fact, eight out of ten shoppers would buy more fruits and vegetables if cost were not an issue, and 88% expressed interest in holiday displays featuring relevant produce.
The research also pointed to strong growth in deli-prepared foods and value-added produce, with 60% of shoppers favoring secondary produce displays throughout stores.
Health remains a top priority, with 71% of consumers buying produce for its known health benefits, and many relying on online searches and packaging information to make informed choices.
Sustainability also plays a growing role, with 88% of consumers showing interest in how their produce is grown and packaged. However, the report highlighted the need for clear communication around terms like "carbon footprint," as many consumers misunderstand these claims.
TIP OF THE DAY
Use In-Store Demos to Highlight Fresh Produce
In-store demos are a great way to boost sales and create an engaging shopping experience.
By offering samples of fresh produce, you allow customers to taste the quality firsthand, which can often lead to immediate purchases.
Choose seasonal or unique produce items that customers may not be familiar with, and offer simple recipe ideas alongside the demo.
This helps customers see how easy it is to incorporate new items into their meals.
Demos not only increase product visibility but also create a more personal connection with shoppers, encouraging repeat purchases and loyalty to your brand.
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