IARW-WFLO's Weekly E-Newsletter                                                                             1 July 2009
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In This Issue

Yucaipa Makes Major Investment in VersaCold

Education Program Success in Nicaragua

Ethylene and You

Climate Change Bill Passes U.S. House

Chapter Meetings Perfect For Managers & Supervisors

National 2009 Australian Conference and Exhibition

Know Your Benefits, Maximize Your Membership

Cold Storage Industry News

Food Industry News

Government News

When Maines Paper & Food Service, Inc., needed a partner to achieve higher service levels, profitability and efficiency, it chose Raymond. Read how Raymond goes above and beyond by clicking here.

The Yucaipa Companies, LLC (“Yucaipa”), parent company of AmeriCold Logistics, has purchased a 49% interest in VersaCold Logistics Services.  Ron Burkle, managing partner of Yucaipa commented, "VersaCold is an excellent company with a dedicated management team...I believe that Yucaipa's complementary and extensive operations in logistics will facilitate VersaCold's current plans to expand their presence in public refrigerated warehousing, third party logistics and transportation.” Read the full press release from Yucaipa here.

In a letter to employees and customers VersaCold CEO Brent Sugden wrote, “This change in ownership supports growth by allowing us to move forward from our current steady state position. Our track record has proven that we are very good at this.” Read the full press release from VersaCold here.

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Nearly 40 participants from Nicaragua, Guatemala, El Salvador, and Venezuela attended GCCA’s Cold Store Operations Short Course in Managua, Nicaragua. Brian Beazer from Winchester Cold Store, fluent in Spanish, was a star amongst a solid team of presenters from Ingersoll Rand, Thermotech and the University of Nicaragua.

This event was supported by a grant from the United States Agency for International Development (USAID) in partnership with Louisiana State University and Cooperative League USA – Nicaragua. The program was aimed at strengthening the cold chain in Nicaragua and throughout Latin America.

This event allowed for a great deal of information exchange, while bringing together many of the major players in the Latin American cold chain to begin establishing stronger relationships in the region. Look for more updates on GCCA’s international programs in upcoming editions of Cold Connection.

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If you store fresh produce under refrigerated conditions, you need to be aware of the effect of ethylene on the produce you store. Ethylene is a hydrocarbon that, in very small amounts, exerts a powerful biochemical effect upon produce. It is well known that ethylene is a phyto-hormone. It acts to accelerate the ripening process in fruit and ultimately brings about premature senescence. Senescent produce rapidly losses quality and is especially vulnerable to microbial spoilage. Because of this it is important to control the amount of ethylene gas present in the produce cold store. Read more from Dr. Donald Schlimme, WFLO Scientific Advisor.

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The U.S. House of Representatives passed the American Clean Energy and Security Act of 2009 by a vote of 219 to 212. Forty-four Democrats voted against the measure and only eight Republicans yes. Find out how your Representative voted here. The legislation creates a national cap and trade market allowing companies to buy and sell pollution allowances and get credit for funding special projects to reduce emissions. The bill also forces power utilities to generate 6% of their electricity from renewable energy by 2012. There is concern that this mandate could lead to a spike in the price of electricity. The final version of the bill included nearly $200 Billion for clean energy funding programs. These programs could offer energy saving opportunities for PRWs.

The legislation will now move on to the U.S. Senate where passage is by no means a certainty with very little support for the bill from Republicans. However, with Al Franken finally overtaking Republican Norm Coleman in the Minnesota Senate race, the Democrats have 58 seats. Those seats combined with the 2 Independent Senators means that the Democrats could potentially have a filibuster-proof majority by which to move legislation. Whether they can get all of their members behind the Climate Change legislation is yet to be determined. Find out more about this legislation and check for updates by visiting www.gcca.org/gov.

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The 2009 IARW North American Chapter Meetings, taking place in September and October, are essential knowledge forums for warehouse managers, supervisors, and executives. Meeting agenda items include new legislation and regulations, warehouse law updates, and peer-to-peer roundtable meetings in which operators will exchange best practices, market news, energy ideas, and other vital information. Managers and supervisors can learn more and register for Chapter Meetings here.

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The Refrigerated Warehouse and Transportation Association of Australia, a GCCA Affiliate Partner, will be holding the RWTA National 2009 Conference and Exhibition 23-25 August 2009 at the Sofitel Grand Central Hotel in Brisbane, Australia. An excellent line-up of speakers, including a finance expert and a business analyst, will focus on the current global recession and economic forecasts. For more information, visit www.rwta.com.au or click here for the conference flyer.

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For most, an ammonia spill is the most terrifying disaster imaginable. Join GCCA for the Crisis Management Webinar Series; “Welcome to My Nightmare,” the real life story of an ammonia spill at Congébec Logistics. This new 3-part Crisis Management & Prevention webinar series will bring together the collective knowledge and experiences of individuals and organizations familiar with the refrigerated warehouse industry through real life case studies. Register now www.iarw.org/crisis.

Associate Members, do you have a product or service that can aid in the prevention of an ammonia spill or leak? Sponsor the upcoming “Welcome to My Nightmare” and attach your company’s name to this essential training resource. To find out more about webinar sponsorships, please contact Colleen Caster at ccaster@wflo.org.

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Versacold International Corporation announced that Eimskip has successfully completed a sale of a 49% interest in Eimskip Tango, the direct parent of Versacold to The Yucaipa Companies, LLC. Yucaipa also acquired an option for the remaining 51% interest in Tango.  See full release from Versacold and Americold.

 

Volkswagen called on Preferred Freezer Services - Ultra Freeze to film an ad in one of the facility's six blast freezers.  See full release.

 

Total Logistics Control was chosen as a Great Supply Chain Partners by SupplyChainBrain’s 7th Annual 100 Great Supply Chain Partners Program. See full release.

 

Universal Companies in Nebraska, USA is in the midst of a nearly USD $7 million project that will add more than 72,000 square feet of cold storage space.  See full story from Journal Star.

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Business

 

The European agricultural products market generated total revenues of USD $337.3 billion in 2007, representing a compound annual growth rate (CAGR) of 4.2%.  See full release.

 

Food safety checks designed to prevent dangerous contamination are making it difficult for smaller businesses to compete against larger rivals.  See full story from Reuters.

 

Lobster fishermen are increasingly bypassing retailers and dealers and selling their catch directly to consumers.  See full story from The Associated Press.

 

In 2009, world hunger is projected to reach a historic high with 1.020 million people going hungry every day.  One sixth of the total world population.  See full release from FAO.

 

Canadian exporters now have new market opportunities in Mongolia for beef, cattle and swine and their products.  See full story from Meat International.

 

New Products

 

Vacci-Test's FoodChek-E.Coli has been certified by the AOAC Research Institute as a Performance Tested method for detecting E.coli O157 in raw ground beef.  See full release.

 

Trends

 

An environmentally friendly refrigeration system at a new Jewel-Osco store in Chicago was recognized with a GreenChill Gold Certification from the EPA.  See full story from Supermarket News.

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The Food and Drug Administration has hired three food-industry veterans as senior advisers in the Center for Food Safety and Applied Nutrition's Office of Food Safety.  See full story from The Packer.

Excessive speculation by commodity index investors inflated the price of wheat and distorted trading in the markets, according to the U.S. Senate Permanent Subcommittee on Investigations.  See full story from Reuters.

China defended export curbs after U.S. and EU complaints, saying that the limits were meant to protect the environment.  See full story from The Los Angeles Times.

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