The following presentations from the 2007 NAOOA Mid-Year Meeting have been converted to Acrobat Reader Format (PDF) and are available for download:
North American Olive Oil Association
Mid-Year Meeting
January 19, 2007
Hilton San Francisco, San Francisco California
A meeting of the North American Olive Oil Association was held January 19, 2007 at the Hilton San Francisco, San Francisco, Calif. Larry Vorpahl, chairman, presided at the meeting.
A list of the attendees is included as Attachment 1 and can be downloaded from the NAOOA web site at the following address:
► http://www.mytradeassociation.org/naooa/mdyr07_attendees.pdf
Before beginning business, Mr. Vorpahl read a statement of the antitrust policy of the association.
Adoption of the Agenda
A motion was made, seconded, and on vote carried to adopt the Agenda. It is included as Attachment 2 and can be downloaded from the NAOOA web site at the following address:
► http://www.mytradeassociation.org/naooa/mdyr07_agenda.pdf
Approval of Minutes of Annual Meeting
A motion was made, seconded, and on vote carried to approve the minutes of the July 7, 2006 Annual Meeting.
Chairman’s Report on the Retail Olive Oil Market
Mr. Vorpahl thanked Dave Scheiber and Chris Albers of Filippo Berio for their assistance in preparing the data for the report.
Mr. Vorpahl noted that volume sales flattened, while dollar volume rose. He reminded members the figures are compiled from IRI data, which come from supermarkets with sales of more than $2 million and does not include Wal-Mart, club stores and convenience stores.
A copy of the presentation is included as Attachment 3 and can be downloaded from the NAOOA web site at the following address:
► http://www.mytradeassociation.org/naooa/mdyr07_chairmansreport_lg.pdf
and a smaller file (requires Microsoft Powerpoint) can be found at:
► http://www.mytradeassociation.org/naooa/mdyr07_chairmansreport_small.pdf
In response to a question, Mr. Mueller said he would have Mr. Albers check with IRI regarding sales of olive pomace oil.
Report Regarding Petition to USDA for Update Olive Oil Standard
Mr. Bauer said he was told by USDA that the petition is still being reviewed by USDA’s office of general counsel. He noted it’s not unusual for such a delay, adding that he knows of another project being delayed because of a prolonged review by the general counsel’s office.
He also noted that the USDA standard, if updated, is a voluntary standard. A representative from USDA told him a company would have to include a notation about the standard in its contract. If the oil is subsequently found not to meet the standard, the company could take action.
Mr. Bauer said approximately 15 years ago the NAOOA filed a petition with FDA to create a standard of identity for olive oil, matching the then-current IOOC standard. FDA never took action on the petition. Mr. Bauer noted that the week before this meeting he was at the annual meeting of the National Honey Packers and Dealers Association, another section of AFI. The honey industry is having quality issues of its own and filed a petition for FDA to create a standard of identity for honey. Mr. Bauer said he spoke with the attorney working on that issue for the honey industry and she told him that if the petition called for the U.S. to adopt the CODEX standard, it should have a chance to move. (The CODEX and IOOC standards are the same.) He said he told her he didn’t know what, if any, political pressure was attempted the last time and asked if that’s an avenue that should be explored this time around. Her response was that political pressure would likely be very helpful and the fact that another industry is looking to get FDA to adopt a standard (in that case it’s one that’s very close to the CODEX standard) based on the CODEX standard, there should be some synergies there that could help push things through. She said the people in the government who participate in CODEX activities are anxious for the U.S. to adopt a CODEX standard as a U.S. standard, something that hasn’t been done yet.
Mr. Bauer said the attorney said the honey industry spent approximately $5,000 in legal fees to file the petition, noting that some of that money was spent in time spent getting various groups to agree on the proposed standard. With that not being an issue for olive oil, the fees should be less.
A motion was made, seconded and on vote carried to spend up to $5,000 to file a petition with FDA to adopt the CODEX standard for olive oil as the U.S. standard of identity for olive oil.
In response to a question about whether the California Olive Oil Council would object to this effort, Mr. Bauer said he was scheduled to meet with COOC representatives two days after this meeting. He was told by the gentleman setting up the meeting that there had been a lot of turnover at the COOC and there was a much better chance of cooperation between the two groups now than in the past. Mr. Bauer was asked to see what efforts the COOC was making to try to get USDA to act on its petition.
Public Relations Committee Report
Mr. Schreiber commended Exponent for its work.
Bernice Neumann of Exponent presented information on the 2006 promotion program and presented a draft proposal for a program for 2007.
The information on the 2006 work and the 2007 plan is included as Attachment 5 and can be downloaded from the NAOOA website at the following address:
► http://www.mytradeassociation.org/naooa/mdyr07_prprogram.pdf
A suggestion was made that Exponent make the materials it produces available to members. Mr. Bauer was asked to check into the NAOOA’s capabilities to add this information to the members’ only portion of the NAOOA site.
Mr. Vorpahl suggested the agency consider a “deeper dive” with editors on how olive oil stands apart from other oils in terms of taste, versatility and health benefits.
Mr. Bauer was asked to check with the IOOC and associations in the producing countries to see if they have information comparing the makeup of olive oil to other oils.
Ms. Neumann asked members to send her any research they have regarding olive oil.
Quality Control Committee Report
The lists of brands collected for testing are included as Attachment 6 and Attachment 7 and can be downloaded from the NAOOA website at the following address:
► http://www.mytradeassociation.org/naooa/mdyr07_retailsamp.pdf
► http://www.mytradeassociation.org/naooa/mdyr07_foodservicesamp.pdf
Mr. Mueller said approximately 200 samples were collected in 2006, most for the IOOC program and the remainder for the NAOOA program. He said the IOOC continues to be very slow in getting results back to the NAOOA but the NAOOA is getting quick turnaround on its own testing.
He said Mr. Bauer would continue to try to increase the percentage of foodservice samples collected in both programs, since that’s where the majority of problems seem to be.
Mr. Mueller said work has started to try to get states to take some action against companies marketing olive oil that doesn’t meet the IOOC standard. One thing that’s transpired is that state officials have said it would be helpful to create an olive oil standard in their states.
Mr. Mandia said he and Mr. Bauer met with officials of the New York State Department of Agriculture and Markets in Albany in December and that another meeting was scheduled in late January. He said he was encouraged by the response to date and that it appeared the department was interested in the issue. The officials said it would probably be necessary to have the state legislature adopt legislation to create a standard, something they thought was possible.
Mr. Mueller said the need for legislation surprised him and he hoped other states wouldn’t require that.
Mr. Sclafani said he had a meeting scheduled in late January with officials in Connecticut and would be joined by Mr. Bauer. He said he, too, has been encouraged by the response he’s received.
Mr. Bauer said he’s made some contacts in New Jersey and hopes to have a similar meeting arranged shortly. He’s also targeting states such as California, Florida and Texas, states he’s been told would be likely to take action.
Mr. Mueller said that at the July meeting the membership voted the letters the NAOOA sends to government officials regarding problems with test results should be shared with the membership. Before beginning that policy, the Executive Committee authorized funds to consult with an attorney specializing in this sort of work. He said although the attorney says it’s possible sharing the letters will result in lawsuits brought against the association, she does not think those suits will be considered to have any merit. He said the NAOOA staff will share the letters sent to authorities to date with the membership shortly.
Bulk Subcommittee Report
Mr. Mandia said logistics problems kept the NAOOA from collecting bulk samples in 2006 but two samplings would be completed this year. He noted there is an important change in the bulk program. To date, participation in the bulk program has been voluntary. However, the revised bylaws approved by the membership last year require all members to make their oils available to the NAOOA for testing. Bulk sampling, he added, is also included in the latest update of the IOOC program.
Mr. Mandia said that since sampling of bulk oil is now mandatory for members, he suggests each member in the bulk arena provide the NAOOA staff with the information needed for the collection of samples. If we help things run smoothly, it will free up staff resources to collect more samples of all oils.
A suggestion was made that bulk oil be sampled from NAOOA members’ customers. There was some concern about protecting members, since members don’t have control over what’s done to the drums or containers after they’ve sold the oil.
A motion was made, seconded and on vote carried to perform one round of testing in the early part of 2007 in the same manner as in past years and that information be collected to determine the viability of collecting samples from customers for the second collection, with a report made on that viability at the July meeting.
Foodservice Subcommittee Report
Mr. Taormina said high prices have created an incentive to adulterate, particularly in the foodservice segment. He suggested the NAOOA staff should communicate efforts and results with the membership.
He said the NAOOA would continue to increase its surveillance of the foodservice segment.
Mr. Patton suggested Mr. Bauer mention at his meeting with the COOC that some of the problems are being caused by California companies and to see if they would be interested in helping to get some action taken against them. Mr. Mueller mentioned the COOC’s lawsuit against a California firm regarding the COOC seal and said it shows that in the past the group has looked to take action against those marketing substandard product.
Mr. Bauer said a representative from FDA told him FDA is sampling more olive oil now than in the past.
Mr. Vorpahl said the fact the NAOOA can share the letters it sends to government officials with the membership should be very helpful.
Report on the Work of the International Olive Oil Council
Mr. Bauer said he attended a meeting of the signatory associations to the IOOC Quality Control Agreement in early December. He said the IOOC concluded its study on linolenic acid and determined there is no need to change its standard to allow for any differences among different regions.
He said he was an observer at a meeting earlier in the day when it was announced the IOOC would have 1 million Euro for promotion in 2007 and the funds would be spent on programs in India, Japan and Russia. Although he couldn’t say anything at that meeting, he did address that issue at the signatory’s meeting, which was attended by many people from the earlier meeting. He said he told them they hired Mr. Oliva as their head of their public relations work based on his expertise and Mr. Oliva has said on many occasions the U.S. should be the main focus of IOOC promotion efforts. He added that the IOOC recently hired a consultant to study past promotion efforts and make recommendations on future programs and the consultant recommended spending heavily in the U.S. Mr. Bauer said he questioned why the IOOC would spend money to hire experts and then not heed their advice. He said he was told the current plan is a short-term plan and that promotion in the U.S. and Canada are included in long-term plans.
Mr. Bauer said the collection of 200 samples was approved for the quality control program.
Mr. Scheiber said the IOOC should be reminded there’s an infrastructure in place here through Exponent and the NAOOA that makes restarting a promotion program here easier than starting one in other countries.
Mr. Monroe said the NAOOA should send a letter to the IOOC stating its disagreement and disappointment with its public relations program decisions for 2007. The effectiveness of a letter was questioned but it was agreed it would be good for the NAOOA to go on record again regarding its concerns with the IOOC’s promotion efforts. It was agreed the NAOOA should send a letter to the IOOC.
It was also suggested the NAOOA staff send a copy of that letter to the members and to put information such as this on the members only portion of the website.
Following up on Mr. Taormina’s earlier suggestion, it was suggested the NAOOA send members a monthly update on activities.
Discussion of Status of NAOOA Seal Program
Mr. Bauer began the discussion by asking for input on the seal design. Ms. Neumann showed a version of the seal and said it had been suggested that because the full name of the association is already on the seal to replace “NAOOA” with something that includes the word “quality.” It was agreed to use “certified quality.” The designs can be downloaded from the following link:
► http://www.mytradeassociation.org/naooa/mdyr07_seallogo.pdf
Mr. Bauer then asked for input on the color version of the label. He said some have said only one color option should be given, while others have said multiple options should be given so companies can use a color they think will work best on their labels.
A motion was made, seconded and on vote carried to have the executive committee make the decision once it has seen a final version from the agency.
Mr. Patton said it’s important the executive committee and members see the seal in the same size it will be used on labels. It was suggested the agency be given guidelines on sizes for the seal.
The agency was asked to get the seal design to the NAOOA office by mid-February so a decision could be reached by March 1.
Mr. Bauer referred to the latest draft of the seal program licensing agreement which was included in the meeting packets can be downloaded from the following link:
► http://www.mytradeassociation.org/naooa/mdyr07_sealprogram.pdf
He said the only change from the previous version was item 4 on Page 4, text dealing with recalls. It was agreed to have the agreement state members must have a recall procedure in place and be able to demonstrate a successful recall took place if that need arises.
Mr. Vorpahl said use of the seal on private labels was discussed at the last meeting but based on member concerns needed to be discussed further.
He explained the original reasoning behind the program was to help members sell their product to their customers. Some members said the program would have more value if private label product packed entirely by an NAOOA member participating in the program was allowed to have the seal on its label.
Other points raised included:
· If a private label brand is packed by more than one company and all the packers are program participants, the private label should be able to use the seal.
· Traceability could be an issue for private label.
· Kosher certification was cited as an example of a program the seal program could be modeled after.
· Retailers would have to sign an agreement indicating they realize the seal can only be used if all their oil is supplied by NAOOA members participating in the program. The fact that the seal would be trademarked would force retailers to cooperate.
· The licensing agreement should be amended to clarify the seal may only be used on olive oil, not blends.
· While the program may seem expensive to some, programs such as the Good Housekeeping Seal are a lot more expensive.
· The licensing agreement should specify recalls are for all of the product covered by the agreement, not just the lot number tested.
Producing Country Reports
Copies of the producing country reports can be downloaded from the NAOOA web site at the following addresses:
► Greece: http://www.mytradeassociation.org/naooa/mdyr07_pcr_greece.pdf
► Spain: http://www.mytradeassociation.org/naooa/mdyr07_pcr_spain.pdf
These reports were prepared by representatives of the associations in the producing countries. They include estimates which are subject to change.
Financial Reports
Mr. Bauer presented the financial report for the year ending December 31, 2006. A copy is included with these minutes as Attachment 10. The report was prepared by the NAOOA office. It will be reviewed and revised if necessary by the association’s CPA when he closes the books on 2005. Attachment 10 can be downloaded from the NAOOA website at the following address:
► http://www.mytradeassociation.org/naooa/mdyr07_financials.pdf
Membership
Mr. Bauer said the following company submitted its resignation, saying it was not exporting to North America: Soc. Agricola Fonte de Pinheiro SA, Azambuja, Portugal
Site and Date of Annual Meeting
There was discussion about whether to hold the meeting before or after the Fancy Food Show. There was some concern having the meeting before the show would conflict with July 4 plans people may have.
A motion was made, seconded and on vote carried to hold the Annual Meeting July 11 in New York, with a dinner on July 10.
Open Forum
Mr. Bauer said AFI would be hosting a reception Thursday, March 29 in Montreal at SIAL Montreal and would host another one at ANUGA in Germany in October. He invited members to offer any suggestions on how the NAOOA and AFI could help them get more out of events such as the Fancy Food Show, ANUGA and SIAL and if there were any other events in which the association’s participation would be helpful.
Mr. Bauer added that AFI is contemplating holding its annual Town Meeting in Washington, D.C. and that, assuming FDA is reviewing an NAOOA petition for a standard of identity for olive oil, it will most likely be beneficial for NAOOA members to attend.
Adjournment
There being no further business to discuss, the meeting was adjourned.
