IN THIS ISSUE
Market Update
• Onions
Transportation Update
• Fuel Surcharges
• Railex
Q.A. Corner:
• Prevent Food Spoilage
Company Profile
• Green Island Energy
Fun Facts
• Kingston Service Anniversaries
• Excellence In Action Award
• Kingston In The Community
Tell Us What You Think
24 / 7 Support
Phone:
208-522-7070
Kingston Companies
477 Shoup Avenue
Suite 207
Idaho Falls, ID 83402
kingstonmarketing.com
February 8, 2008

Kingston's Annual Golf Tournament
The Duke at Rancho El Dorado
Maricopa, Arizona
Jan 2008
Volume 6, Number 1


Happy 2008
Cheers to all our customers!





Food Trends:
Fresh Versus Processed


In the past few years, more attention has been directed to the benefits of eating fresh fruits and vegetables. While a variety of guidelines point to the health benefits of eating fruits and vegetables in general, the recent emphasis is on the benefits of fresh fruits and vegetables, versus canned, frozen, or processed.

The typical concern about canning, freezing, or processing is that fruits and vegetables lose nutritional value when they go through any processing. This is essentially a myth - canned and frozen fruits and vegetables generally have identical nutritional value to fresh. The real concerns are twofold: first, processing can reduce the taste of the fruits and vegetables, and second, processing can add salt, sugar or other ingredients that alter the nutritional value of the product.


Examples of processing that change the nutritional value of the fruit or vegetable vary widely. Simple, common examples include packing fruit in syrup, which makes it higher in sugar, or adding salt when vegetables are frozen. More complicated examples happen when produce is semi- or fully prepared, such as creamed corn or stir-fried vegetables. The additional sauces or ingredients can significantly change the nutritional value of the produce.

One important guideline in the USDA food pyramid is to have 5 or more servings of fruits and vegetables each day. Currently, the average is 4.4 servings per day. While below the recommended level, this is actually a total increase of 13% over the last ten years.

Longer-term trends in the consumption of fresh fruit and vegetables reflect changes in processing, distribution, and demographics.

This chart shows the dramatic increase in fruit consumption during the 20th century, driven by processed fruit. Interestingly, the amount of fresh fruit consumption slightly declined, as processed fruit became more commonly available. In the last ten years, however, fresh fruit consumption has risen due to increased supplies and available varieties. The varieties driving the increase in consumption are mostly "exotic" fruits, including kiwi, mangoes, papayas, melons, as well as sweet pineapples, strawberries, bananas, and grapes.

Variety has expanded beyond exotic fruits as well. An average supermarket produce department stocks over 400 produce items, nearly twice the variety of produce items in the mid-1980's. In addition to supermarkets, consumers have more access to fresh produce through farmers' markets, which have more than doubled since 1993, and now number approximately 2,800 throughout the country.

Overall consumption of fresh produce has risen 20% since the 1980's. One telling statistic in tracking the increase in consumption is the emphasis on fresh over processed. In the 1990's, consumption of fresh fruit increased 24%, while processed fruit only increased by 4%. This occurred despite much more significant price increases for fresh fruit over processed, and may have been driven by increased awareness of the health benefits of fresh fruit. Over the same time period, increases in consumption for fresh versus processed vegetables were nearly identical - 25% increase for fresh, 24% for processed. One significant factor driving the increase in processed vegetables is higher sales of canned tomato products for ethnic dishes.

Vegetables with the highest per capita consumption as fresh produce include lettuce, tomatoes, onions, cauliflower, and broccoli.

Even where consumption has not dramatically increased, the mix of consumption has shifted. For example, per capita consumption of iceberg lettuce fell by 4.4 pounds in the 1990's, while per capita consumption of romaine and leaf lettuce rose by 2.5 pounds. Additional varieties of lettuce such as radicchio, frisee, and arugula are not yet tracked by USDA for consumption gained popularity during the 1990's and early 2000's, in part because of inclusion on restaurant menus and in pre-packaged salad mixes.

While total consumption of fresh fruit and vegetables falls below recommended levels, the difference is also driven by income. A recent analysis showed that low-income households spent 28% less on fruits and vegetables than high-income households, further reducing their consumption. This is not solely driven by price - when 154 forms of fruits and vegetables were analyzed using supermarket scanner data, over half cost 25 cents or less per serving. Using the same data, it was possible for consumers to get the 5 servings recommended per day for 64 cents. For an average household, this would translate into approximately $6 per week, which is almost twice the current average weekly spending on fresh fruits and vegetables.

Another factor affecting fresh fruit and vegetable consumption is eating out. Currently, almost one-third of all meals are eaten away from home, and an additional 20% of meals involve some form of carry-out or pre-prepared foods. On average, meals eaten out have 25% fewer fruits and vegetables than meals eaten at home.

A third demographic factor affecting fruit and vegetable consumption is household size and the aging population. There are significantly more single-person households in the U.S., both from younger people forming families later, and older singles living independently. Single person households spend 32% more on fresh fruits and vegetables than the household average. Some of this is due to higher amounts of discretionary income, and some is due to higher waste of fresh produce due to there only being one person to consume it.

Overall, consumption of fresh fruits and vegetables will continue to rise based on the availability, variety, value, and nutritional quality of produce. Education efforts from the USDA and the various growers' associations help increase public interest and consumption of fresh fruits and produce. At present rates of growth, it is possible for the U.S. to reach recommended levels of consumption of fresh fruits and vegetables in the next ten years.

Sources: International Food Information Council, American Dietetic Association, USDA Economic Research Service, Oklahoma Cooperative Extension Service

>BACK TO TOP




Onions

The 2007/2008 Northwest dry onion storage season is a bumper crop in terms of volume, and with unparalleled quality. In particular, yellow onions are abundant with size on the larger end of the scale. Super colossal availability is very high.

The crop benefited from ideal weather and conditions during the growing season. There was little to hold back on-time plantings. Currently, storages are full of quality product with good single centers. Thus far, weather for storage has been ideal.

Red onions have good quality, but are not as strong on volumes as the yellow onion crop. Many growers in Idaho and Oregon did not put enough seed in the ground, and are buying onions from Washington to supplement supplies. This purchasing activity has pushed the market up slightly.

White onions are showing fair to good quality, with adequate supply. These conditions are typical for the Northwest crop.

Overall, price markets are on the low end. Plentiful supplies mean that shippers are competing for business and offering deals. The market situation should continue into early 2008, depending on the weather. Warmer temperatures can lead to higher losses and reduced volumes in the spring. Currently, conditions remain ideal.

If you have any questions, please contact your Customer Service Representative or Jeb Johnson.


>BACK TO TOP




Rail Information

Union Pacific Rail Rates To Change January 1, 2008

Effective January 1, 2008 Union Pacific will implement a PER MILEAGE fuel surcharge. The 2008 base rates have increased, however they will be offset by a reduced fuel surcharge. Rates will vary according to each shipments total mileage. Please see your Customer Service Representative for details, or contact Chris Taylor.

What is "Railex"?

Railex is a private company that provides refrigerated unit train service from Washington to customers located in the Northeast. Railex provides both full railcar and LTL shipment services at temperature controlled storage.

Here is how the process works:

  • Customer places the order for pick-up in Washington. The order must be picked up by the Wednesday of that week in order to make the train.
  • Railex picks up the product in Washington via truck. Truck delivers and unloads the product at Railex facility at Wallula, WA.
  • Product is transloaded onto Railex's unit train at Wallula. The railcars are brand new 64' GPS monitored refrigerated railcars.
  • Railex train departs Washington. The train will arrive at Railex in Rotterdam, NY five days later.
  • The train is unloaded at New York. Railex will provide up to seven days of refrigerated storage at no charge, and pallet exchange.
  • Railex will deliver product via truck to PA, MA, NY, CT, MD, VA, and Columbus, Ohio. They also deliver to Montreal and Toronto, Canada.
Please contact your Customer Service Representative or Chris Doore Taylor regarding rates, which are negotiated on a month-to-month basis. For more information, see www.railexusa.com.

For more information, please contact your Customer Service Representative or Chris Doore-Taylor.


>BACK TO TOP




Each month in the E-News, we will share insights into the activities of the Kingston Quality Assurance team as they visit growers, packers, and distributors. We hope this will help give you more information on our commitment to food safety and security. This month's report is from Cindi Thompson, Food Safety/Quality Assurance Supervisor.

Prevent Food Spoilage During a Power Outage

Winter is a wonderful time of the year, with beautiful snowflakes, naturally forming ice sculptures, and a brisk, invigorating cold. It's also a harsh time of year, when snowfalls block roads, ice makes driving treacherous, and power lines are downed by snow, ice, and wind.

As winter gets started, it's a good opportunity for us to review how to keep our personal food supply safe. With electrical outages common during the winter, USDA has developed a set of tips to minimize the potential for foodborne illnesses due to food spoilage from power outages.

Before any power outages, USDA recommends the following preparations and precautions:

  • Keep an appliance thermometer in the refrigerator and freezer to indicate the temperature in the case of a power outage. This will help you determine whether the food is safe.
  • Set the freezer temperature at or below 40°F.
  • Freeze containers of water for ice to help keep food cold in the freezer, refrigerator, or portable cooler.
  • Freeze some normally refrigerated items such as milk, meat, and poultry which you will not need immediately. This will help keep them at a safe temperature for a longer period of time.
  • Have several portable coolers on hand to keep refrigerated food cold in power will be out for more than four hours.
  • Group food together in the freezer, which will help the food stay colder for a longer period of time.
  • Know where you can buy ice and dry ice locally.

In the event of a power outage, USDA recommends the following:

  • Keep the refrigerator and freezer doors closed as much as possible to maintain cold temperatures. The refrigerator will keep food safely cold for about four hours if it is unopened. A full freezer will hold temperature for approximately 48 hours if it is unopened (a half-full freezer will hold temperature for approximately 24 hours).
  • Never taste food to determine whether it is safe or not.
  • Food may be safely refrozen if it still contains ice crystals, or is at or below 40°F.
  • If the power will be out for a prolonged period of time, obtain ice or dry ice to keep the refrigerator and freezer as cold as possible. Fifty pounds of dry ice will keep an 18-cubic foot freezer cold for 2 days.
  • If the power has been out for several days, use an appliance thermometer to check the temperature of the freezer. Food is safe if it still contains ice crystals, or is at or below 40°F.
  • After four hours without power, discard all perishable refrigerated foods, including meat, poultry, fish, soft cheeses, milk, and eggs.
  • If there is any doubt about the safety or quality of food after a power outage, throw it away.
More information is available from the Food Safety & Inspection Service of the USDA at www.fsis.usda.gov. If you have any questions, please contact your Customer Service Representative or Cindi Thompson.


>BACK TO TOP




Green Island Energy

Kingston & Associates Marketing is one of the Kingston Companies, a group of companies controlled by our founder, David O. Kingston. This month, we look at one of the other enterprises in the Kingston Companies.

Green Island Energy is developing a thermal power plant on the site of a former pulp and paper mill in the Gold River region of British Columbia. The power plant is capable of delivering 90 megawatts of net firm power into the British Columbia transmission system. The combination of existing power generation infrastructure, abundant water resources, deep-sea access to bulk fuel supplies, community support (including First Nations), and a 40-year power purchase contract with BC Hydro will enable the Gold River Power Project to achieve commercial operation in 2010.

Green Island Energy owns and operates the 400-acre waterfront industrial site, which is zoned for utilizes, heavy industry, and bulk fuels storage. 100% of the fuel supply has been procured under long term contracts, and USA and Canadian port facilities are secured by 30-year lease arrangements. They have received our "Green" power certification and are accepted into the federal EcoEnergy program.

The Gold River mill site is the first industrial pulp mill in British Columbia to receive certification from the Provincial government for environmental cleanup and compliance.

The Gold River Power Project began in early 2003 with site acquisition and the commencement of preliminary engineering and design, environmental permitting, and fuel supply studies. Detailed engineering, site permitting, interconnection studies, fuel procurement and site preparation were completed in late 2003. In 2006, BC Hydro awarded us our Electricity Purchase Agreement, which was approved by the BC Utilities Commission.

Phase one of the project, commencing in the first quarter of 2009, is a 45 megawatt boiler. This is an existing boiler which will burn 350,000 tons/yr of woodwaste. Phase two, commencing in the fourth quarter of 2009, is a second 45 megawatt boiler. This is a modified recovery boiler which will burn 450,000 tons/year of refuse derived fuel. Refuse Derived Fuel (RDF) is a sorted and processed composite of organic and carbon based material that has been recovered from Municipal Sold Waste.

The Gold River Power Project is already accepting and stockpiling wood waste, and will begin accepting baled and wrapped RDF beginning in 2008.


>BACK TO TOP




Kingston Service Anniversaries

Join us in congratulating our team members on their many years of service.

Congratulations to Kevin King for 7 years of service!



Excellence In Action Award

In December, the Kingston Excellence In Action Award was given to Patty Clemons. The Excellence In Action Award recognizes a Kingston associate who has implemented, instituted, created, nurtured or sponsored programs, initiatives, reforms that have had or will have a positive long-term benefit on the business and people of Kingston Companies. Patty coordinated our "Biggest Loser" program in which over a six month period our company associates lost in excess of 331.75 pounds of weight and clocked more than 3,385 hours of exercise. Patty works in the Accounting department for Kingston Marketing.




Kingston In The Community

Kingston is the Major Build Sponsor for Habitat for Humanity house # 18 in the Idaho Falls area. The house will be home for the Barzee family, and is currently scheduled to be dedicated on December 29th.

Recently, some of our associates went to help with the roofing and siding. We are proud to help in our community and to be associated with a great, worthwhile organization such as Habitat for Humanity.




>BACK TO TOP




What would you like to see in future editions of eNews?

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.

To unsubscribe from Kingston's eNews please send an email with your email address to nlremove@kingstoncorp.com.


>BACK TO TOP