Consumers shell out more for eggs, prices soar in California

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By The Associated Press

SAN FRANCISCO – Consumers are shelling out more for a carton of large eggs as benchmark prices in California have gone up by 150 percent in a year.

Last August, a dozen large eggs cost $1.45 and a year later the price is $3.61 for the same carton, according to information from the U.S. Department of Agriculture.

The San Francisco Chronicle reported (http://bit.ly/1MIBYSS) Monday that one reason for the jump was an avian flu outbreak this spring that resulted in the killing of 48 million domestic chickens and turkeys, mostly in the Midwest.

In addition, California producers have to pay 20 cents more per dozen eggs for chicken feed because it’s mostly shipped from the Midwest, said Ken Klippen, president of the National Association of Egg Farmers.

The rollout of Proposition 2, which requires that all eggs sold in California come from farms that allow chickens to move around freely, has also caused prices to soar, the newspaper reported.

Under the measure, each egg-laying hen must have 116 square inches of space, rather than the standard 67 inches of space in battery cages, resulting in the upgrading of farms and fewer hens overall.

“The costs of having to build new structures and new facilities were incurred by the egg farmers, and those costs have to get passed along,” said John Segale, spokesman for the Association of California Egg Farmers.

California farmers produce roughly one-third to one-half of the eggs eaten in the state. Some larger farms in Iowa that raise hens according to Prop. 2 specifications for California have been shut down since the avian flu outbreak, said Klippen.

There is one bright spot for California’s egg industry: Farmers who produce pasture-raised eggs have seen an increase in business, now that their $9 eggs no longer seem so expensive.

California produced 18 percent fewer eggs between May 2014 and May 2015, according to USDA statistics.

“We Card” Program Hits 20th Milestone

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WeCard_AwarenessMonth2015logoTwenty years ago the national “We Card” program was launched to help combat youth access to tobacco. Back in 1995, those underage could more easily buy tobacco at retail stores with some reports indicating a 40-60 percent success rate.

Today, after years of efforts to prevent underage tobacco sales, it’s down to roughly 10 percent according to the federal government’s published 2013 Synar Report measuring illegal tobacco sales to minors. In California, the retail violation rate was 8.7 percent.

Celebrating its 20th anniversary this year, the We Card Program’s September-held, We Card Awareness Month, seeks to boost responsible retailing awareness along with the availability of 2016 We Card materials.

From Labor Day to New Year’s Eve, retailers prepare for the coming year by ordering We Card in-store materials and lining up their employees for We Card’s online training courses.

To keep up with the times, We Card has launched several new items in its 20th year, including:

  • A new smartphone site – We Card NOW – www.wecardnow.com — providing retail management and employees with quick access to its resources, including an Age Calculator and digital version of its 365-page a day calendar that store cashiers use to “card” customers.
  • New resources to help merchants of e-vapor products identify and deny minors’ attempts to purchase, such as:
    • New “Under 18, No E-Vapor: WE CARD” in-store signage.
    • A new in-store E-Vapor kit of resources that is especially suited for “vape” stores who are new to the concept of handling age-restricted product sales.
    • An “E-Cig and Vapor Central” dedicated home on wecard.org where resources can be quickly found, ordered and used.
WE Card Promotional Smartphone Material
WE Card Promotional Smartphone Material

“We Card was a pioneering program in 1995 to help introduce the concept of responsible retailing on a massive scale and “carding” was a sometimes used term. Today, carding is commonplace and We Card is forging new resources for all age-restricted products, including those designed to prevent e-vapor product sales to minors,” said Lyle Beckwith, Senior Vice President of Government Relations for the National Association of Convenience Stores, and a We Card board member.

Preventing e-vapor sales to minors is especially important since over the past few years nearly all states have quickly adjusted their state laws to include e-cigarettes and vaping products within their tobacco or age-restricted product sales laws. At the federal level, the FDA has proposed “deeming” e-vapor products under its authority, and “carding” and denying sales to minors will be added as another retailer requirement.

“The landscape of age-restricted product sales is changing,” said Doug Anderson, President of We Card, “however, the fundamentals of handling those underage attempts remain largely the same – identify the underage purchase attempt and deny it.”

FDA has completed more than 461,000 retailer compliance checks since 2010 — at a rate of approximately 100,000 in recent years. FDA has issued official guidance for Tobacco Retailer Training Programs and We Card’s elearning training not only matches this federal curriculum but exceeds it with retail-focused emphasis on customer service, role-playing and interactive gaming – earning the training an American Business Awards 2013 Bronze Stevie® Award as a Best Training Site.

The California Grocers Association encourages all retailers to continue in their efforts to successfully identify and prevent age-restricted product sales to minors.

To visit the We Card website, click here.

 

About We Card: The We Card Program, Inc. is a national non-profit organization that represents a unified effort among trade associations, retailers, wholesalers and manufacturers. It was created 20 years ago to support retailers of tobacco and other age-restricted products. Individual retail establishments as well as large retail chains use We Card’s educational and training services to comply with federal and state laws while working to prevent underage tobacco, e-vapor and other age-restricted product sales. National and state retail trade associations, government officials, community groups and others also support We Card’s ongoing efforts to educate and train retailers.

CGA Purchases Future Headquarters

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CGA Senior Vice President Keri Askew-Bailey receives the keys to the building from previous owner Butch Corum.
CGA Senior Vice President Keri Askew-Bailey receives the keys to the building from previous owner Butch Corum.

SACRAMENTO, CA – The California Grocers Association announced today that it has completed the purchase of an office building located at 1005 12th Street in downtown Sacramento, Calif. The Association will manage the building under the name Aisle 3 Concepts, LLC.

The 20,544 square foot three-level structure, built in 1925, is anchored by a FedEx Office Print & Ship Center on the corner of J and 12th Street. Additional retail spaces, including a Wells Fargo ATM, occupy the ground level.

Aisle 3 Concepts will renovate the second floor and move CGA’s offices in 2018 after its lease at 1215 K Street in Sacramento expires. The lower floor will be renovated for potential tenant space.

“As CGA expands its member programs it became apparent the Association needed more space. For some time CGA has wanted to purchase a building that could allow for that expansion.” said CGA President/CEO Ron Fong.

“This purchase represents a sound investment for the Association. Its location is perfect for our government relations activities,“ he added.

IMG_7614_websiteCGA Chair Joe Falvey, Unified Grocers, Inc., said the building purchase will stabilize rent and save the Association a significant amount of money in the coming years.

“This building purchase will be CGA’s legacy for the future,” Falvey said. “Our members will own their own building and be a part of the revitalization of Sacramento’s downtown business district.”

Gov. Brown Signs Grocery Worker Retention Bill

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On the last day to take action, Governor Brown signed AB 359 (D-Gonzalez) into law. The bill will take effect on January 1, 2016.

Specifically, AB 359 creates onerous and largely unworkable requirements that a new owner retain eligible employees for a period of at least 90 days and provide written performance evaluations at the 90-day mark. During the mandated retention period, employees may only be fired for cause. In a brand new interpretation, it appears that a new owner may also be required to honor any collective bargaining agreement in place at the store location prior to the sale.

Perhaps most disturbing, the bill applies only to stores “primarily” selling groceries. There are significant concerns that will not include several major competitors in the grocery marketplace as general retail stores move more aggressively into the grocery space.

CGA is extremely disappointed the Governor chose to sign this poorly drafted measure. Unfortunately, given all its shortcomings, AB 359 actually creates a greater likelihood that companies will be forced to shutter locations that are no longer viable rather than identify a successor to operate in the location. Jobs will be lost, communities will see grocery access reduced, and in some cases food deserts will be created.