Kingston E-Letter

Dec 1, 2005
Volume 3, Number 12

What's in this month's issue?



Navigating Product Inspection & Claims

Dave's Market Report: Potatoes

Chris' Transportation Update

Sponsorship Update

Employee Biography Valerie Andrus






"I extend my warmest personal greetings for you and your family for a joyous holiday season and a happy, healthy, prosperous 2006. Thanks for the business. It has been a privilege serving you this past year."

Mike Kingston

Mr. Potato
Onion
Tomato
Romaine lettuce head
Broccoli stalk
Pineapple
 

Kingston Associates
477 Shoup Avenue
Suite 207
Idaho Falls, ID 83402


Phone:
(208) 522-7070


Fax:
(208) 522-2608



We're on the Web!
www.kingstonmarketing.com

- - - - - HAPPY HOLIDAYS - - - - -

We wish you and your family a happy and safe holiday season!


Navigating Product Inspection & Claims

Every day Kingston ships product with the Kingston brand that signals high-quality, reliable performance, and consistent taste for your customers. All our products are USDA inspected before they are shipped. Sometimes, however, product can arrive that does not meet expectations for quality or specifications. Here are some easy steps to follow when inspecting a shipment and determining whether a claim should be filed.

The most important thing to do when you suspect or detect quality issues is to communicate with us and with the freight provider (if it is not us). Claims are rare, but we know they do happen. For the last quarter we experienced claims on less than 2% of our orders.

When you receive a shipment, if you notice quality issues, conduct an in-house quality inspection. For truck shipments, we need to be notified within 24 hours; for rail shipments, within 48 hours. We can help identify quality issues, and help assist you through the process and determine the best course of action. Together, we can jointly assess whether a federal USDA inspection is required.

When you notify us of a quality problem, your customer service representative will work with our transportation and Quality Assurance departments to research all possible causes for the deficiency. This way we can help guarantee that you and your customer receive the best product available.

It is critical at the time of inspection to determine whether proper temperatures were maintained in transporting the product. Kingston puts a temperature recorder in all rail shipments and most truck shipments, to secure a record of the temperature maintained during shipment. If you notice a temperature problem during shipment, notify us immediately, or, for FOB loads, notify the freight provider of a possible claim. Keep the temperature recorder information for your records. All temperatures are listed on the bill of lading. If you should have any questions regarding temperatures, please ask your customer service representative.

Other issues, such as product damage or quantity discrepancies, should be documented on the bill of lading for the shipment at the time of delivery. Again, notifying us of the issue as soon as possible will help all of us resolve it quickly. Our goal is to get 100% of claims settled within 30 days, which will allow us adequate time for research and investigation, while keeping pace with our normal day-to-day business operations.

Documentation for claims and inspections should be kept as part of your normal business records. A good rule of thumb is to keep these records as archives, similar to financial records which should be kept for seven years.

We continue to work toward reducing the likelihood of claims on product by investing in world-class QA and inspection procedures, building relationships with growers, helping our customers with transportation, and providing information on product performance, storage and handling techniques. We know that sometimes there will be quality issues with shipments, and our goal is to make these situations as "painless" as possible, to minimize the disruption for you and your customers.

If you have questions on product inspection or claim procedures, please contact your customer service representative or supervisor, Travis Hess.


Dave's Market Report: Potatoes

The current estimate from the USDA for 2005 production is 421.3 million cwt, which means a 7.6% decline in production from last year. This is the smallest production crop since 1991.

Most of the production cutbacks are in fresh potatoes, rather than in commercial potatoes used to produce processed potatoes. Some estimates have fresh potato production falling 8.4% from last year, a drop of over 9 million cwt. If these estimates are correct, table stock supplies will be the lowest since USDA year-round records started in 1987.

Due to our strong relationships with growers, Kingston does not foresee having any supply or quality problems this year, despite the short crop production. We believe our long-term strategy of developing committed relationships with growers will be key in this year of tight supply.

For questions, please call your customer service representative, or Dave Patterson.

Transportation Update

Kingston Truck

RRailroad Fuel Surcharges for December

The UPRR fuel surcharge for December is 18.5%. It is based on the October national diesel average

If you have any questions regarding rail transportation and rates, please contact your Customer Service Representative.

Truck Supply Update

Truck supply was very short in the month of November. Christmas tree shipments severely affected truck supply. The rates that tree shippers pay are very high, due to their pressing need to get product to market.

The truck shortage trend will continue into late January due to high demand and the holidays. Please remember that Christmas is the one holiday that trucking companies will allow drivers to be home with their families. Several railroads will shut down all train operations during Christmas Eve and Christmas Day. This will cause some backlog in the train yards, and can cause rail transit delays. Please maintain extra product supplies on hand to account for rail delays and the truck shortages due to the holiday.

Also, even when we all are rushing about buying presents and preparing for the holidays, remember to be careful at all rail crossings. Look, listen and live!!

For more information, please call your customer service representative, or Chris Doore-Taylor.

Sponsorship Update

SAYDEL HIGH SCHOOL FOOTBALL

As featured in our August newsletter, Kingston is proud to have participated in a program with the Idaho Potato Commission to support the high school football team at Saydel High School in Des Moines, IA. Each of the players received a supply of potatoes and information on healthy, nutritious eating for peak athletic performance. We would like to acknowledge Loffredo Produce of Des Moines, IA for transporting and delivering Kingston potatoes from Idaho to the Saydel High School Football team.

The Eagles finished the season 2-5 in their division, and 2-7 overall. While they did not make the playoffs, this year's season is an improvement over their 2004 record. Everyone is pleased with the potato and nutrition programs and the positive impact it has had on the team.


Monthly Employee Biography

VALERIE ANDRUS

Valerie is a new addition to the Kingston Companies, and is an Accountant in our Finance Department. A recent graduate of Idaho State University, Valerie spent five summers as an intern at the Idaho National Laboratory, working in the Internal Audit and Planning & Controls groups.

Born in Oklahoma, Valerie has lived in Idaho Falls since age 5. Valerie is a competitive tennis player and would play all year long if the weather allowed for it! She married her husband, Brandon, in 2004. Brandon is an avid golfer. They both enjoy spending time at the family ranch in Lava Hot Springs, riding horses, and debating whether tennis or golf is the best sport.


For More Information

If you see something you would like more information on, or if you have any ideas for next month's issue, please call or email April Barnes at april@kingstoncorp.com.

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