Oser Communications Group

GOURMET NEWS OCTOBER 2018 www.gourmetnews.com NEWS & NOTES 1 0 Relationships: Mayorga's Path to Sustainability "Sustainability" is used by many companies as a buzzword to grow market share and garner trust from consumers. Unfortu- nately, some companies don't understand their own supply chain enough to make a true sustainable impact at the farm level: the foundation of our agricultural supply chain. The true definition of sustainability, the ability to sustain over long periods of time, means to sustain not only the busi- ness's bottom line, but also the viability of the producers, the fertility of the farms and the value to consumers. Mayorga Organic's vision of true sustain- ability is based on direct relationships. May- orga's focus has always been on developing relationships with farmers. By doing this, the company is able to ask the real questions about sensitive topics such as interest rates, terms of purchase contracts, collateral, mis- labeling, traceability, community needs and everything that has historically held farmers back from flourishing while middlemen make the lion's share of the profits. Mayorga shares with its farmers the importance of or- ganic practices, diversification and fulfilling commitments to the marketplace while pro- viding contractual commitments centered around what is best for their needs. This relationship approach carries on to Mayorga's customers. The company ac- tively seeks and partners with like-minded companies who understand that creating authentic sustainability is more than just a sales tactic; it's preserving and enhancing supply chain while protecting quality. At the end of the supply chain are May- orga's much loved and appreciated cus- tomers. They benefit by receiving high-quality, fully traceable, organic certi- fied products at a tremendous value. More importantly, they are then empowered to allocate their hard-earned dollars toward making a truly sustainable impact on the communities that feed us. Mayorga is proud that this focus has al- lowed the company to grow from an idea to an operation that works in 11 countries in Latin America and has a state-of-the-art SQF certified facility servicing national and inter- national clients with coffee and chia, with quinoa and other grains in development. GN Olive Ranch Continued from PAGE 1 market, everybody thought we were ab- solutely insane. Twenty years later, we're the number-four olive oil brand in the U.S., and we're growing faster than we could ever have expected." While the plantings will result in the ex- panded production for California Olive Ranch, they're also a part of a plan that goes well beyond just planting more trees and pumping out more oil – it's also about new ideas for practices that can add to the sus- tainability of California agriculture. Managing Water Scarcity California Olive Ranch's planned produc- tion increase comes in the context of Cali- fornia's Sustainable Groundwater Management Act, a set of laws enacted and signed by Governor Gerry Brown in 2015 that, for the first time in the state's history, established a framework for sustainable local groundwater management that pro- hibits groundwater-dependent basins from a practice known as water mining, the ex- traction of more water than can be replaced through natural processes. Under the law, California's major groundwater basins will be regulated to bring them into a balance of pumping and recharge. Kelley predicts that the new law will have a dramatic impact on California's agriculture. "Water is going to be an ever more precious resource," he said. "Water is going to be the major economic factor in production agriculture in Califor- nia over the next 10 to 20 years. It will affect what crops will be planted where." Olives are an ideal crop, according to Kel- ley, for a regulatory environment that the California Department of Water Resources says is designed to make water conservation a way of life in California. Olives are low- input, not just in terms of the water they re- quire, but also in terms of their vulnerability to insect pests and weeds, which means that growers don't have to spray them with a lot of chemicals or give them a lot of water to persuade them to yield an economic crop. "We can plant the trees on soils that aren't optimal for other crops and still have a good production level," Kelley said. "Even con- ventional orchards are as close to organic as you can get [without actually being certified for organic production]." Growing the Soil Through a partnership with California State University Chico, widely known as Chico State, California Olive Ranch has, for the past year and a half, been involved in a proj- ect called the Regenerative Agriculture Ini- tiative. This project has involved redirecting the pomace, the olive mass that's left over after the oil is pressed from it, into compost piles instead of using it as cattle feed. "Today the byproduct of the production process is fed to cows. We say that's why California cows are so happy, but it's not a long-term viable solution," Kelley said. That pomace contains, in addition to valuable organic matter, a variety of other nutrients, including potassium. Potassium deficiency causes olive trees to set less fruit and results in smaller fruit. The mineral is also important to many other physiological processes for the trees, and adequate levels assist the trees in resisting the effects of drought. Potassium can be provided to the trees with chemical fertilizer, but compost- ing the pomace and returning it to the soil under the trees increases the soils' organic matter, which helps it retain water, as well as merely providing the trees with neces- sary potassium. This composting process is an important part of the company's plans to cut its carbon footprint through regenera- tive agriculture practices, Kelley said. "Many of the building blocks for this are al- ready in place with our large-scale com- posting operation," he said. "We have already converted a portion of the orchards to organic and will continue to do so. We think the regenerative agriculture approach will bring benefits there as well." Educating Both Growers and Consumers California Olive Ranch will be spreading the knowledge that the company is acquiring through this pilot composting project to its grower partners around California and through educational institutions around the country, even as the company responds to increasing demand in the American market for higher quality olive oils. That demand is the result of greater awareness among consumers about the health benefits of high-quality extra virgin olive oils over lower-quality olive oils, Kelley said. "Extra virgin olive oil is an incredibly healthy product," he said. "Many people haven't been exposed to extra virgin olive oil, and the growth in that awareness is probably the primary driver of our growth." "If you look at the shelf, it looks different than it did 10 years ago," he added. "Con- sumers are continuing to buy the higher quality product." Kelley noted that a decade or so ago, extra virgin olive oil ac- counted for about 52 percent of American olive oil sales. Today, it's about 70 percent, he said. "We're seeing less of the lower quality oil on the shelves, with some of the smaller players finding it easier to get shelf space," he said. "I think those preferences will continue." While the heart of California Olive Ranch's production is in California and is expected to continue that way, the com- pany is working to meet that growing de- mand for high-quality olive oils through imports from Italy, through its Lucini Italia subsidiary and through its Lucini brand of oils produced in Argentina. The company is also looking to expand in other South American countries as well as in other re- gions around the world where high-quality olives can be grown. "You cannot make high-quality olive oil out of bad fruit," Kel- ley said. "This requires quality control throughout the production process as well as through the distribution network. Olive oil has four enemies: time, light, heat and oxygen. We have to look after all of those to maintain quality all the way to the con- sumer's palate." GN Kroger And Apeel Partner To Fight Food Waste America's largest grocery retailer, and Apeel Sciences, recently named a 2018 World Economic Forum Technology Pioneer and a CNBC Disruptor 50, have announced The Horton Fruit Company is supplying Apeel avocados to Kroger, starting in its Cincinnati market. Through the partner- ship, Kroger will offer the freshest avocados to shoppers and reduce food waste on the shelf and at home. "Apeel is an innovative partner that will help Kroger reduce food waste and rede- fine the customer experience through first-to-market technology," said Frank Romero, Kroger's Vice President of Pro- duce. "Kroger's relationship with Apeel developed as a result of the exciting work we're doing with startups and enterpris- ing companies to create the future of re- tail now." Apeel avocados have double the ripe time, which means less food waste on the shelf and at home, a solution that moves Kroger closer to the goal of eliminating food waste across the company by 2025. They have a plant-based coating that nat- urally slows the rate of water loss and ox- idation — the primary causes of spoilage – and is generally recognized as safe by the federal Food and Drug Administration. Apeel produce stays fresh two to three times longer, which promotes more sus- tainable growing practices, better quality food, and less food waste from farm to re- tail shelf to home. For suppliers and retail- ers, Apeel produce is the only product that has an optimal microclimate inside of every piece of fruit, which leads to im- proved quality, extended shelf life, and transportability — without requiring re- frigeration, controlled atmosphere, or preservatives. "Kroger is at the forefront of the fight against food waste and we're honored to be a resource in their journey to zero waste," said James Rogers, CEO and Founder of Apeel. "Kroger's commitment to families and the health of the environ- ment is admirable, and together, we be- lieve we can dramatically advance our shared goal of less waste and better-quality food for all." With roughly one-third of food going to waste throughout the global supply chain, this partnership is a measurable step to- ward preventing food waste at every level. Annually, Americans throw away more than 400 pounds of food per person, cost- ing a household of four an average of $1,800 and collective retail losses due to food waste amount to an estimated $18 bil- lion2. Apeel avocados maintain optimal quality and ripeness twice as long, without requiring the use of refrigeration or preser- vatives, stopping food waste before it hap- pens and making it possible for premium quality avocados to reach more people across the country. Kroger is launching Apeel avocados in 109 stores in its Cincinnati market, with plans to expand to new cities. The Kroger and Apeel partnership comes after Apeel's news last month of $70 million in new financing led by a leading global hedge fund, Viking Global Investors, and the company's plans to accelerate opera- tional scale-up in response to supplier and retailer demand for programs across avo- cado, citrus, berry, stone fruit, and aspara- gus categories. GN

• Cover