A Research Update

1. A Research Update “The Contribution of Food Distribution to Greenhouse Gas Emissions: A Case Study of the Transportation of Fresh Produce,” Mechel S. Paggi ,Fumiko Yamazaki and Sean Hurley * 52nd Annual Conference of the October 15-19, 2011Portland, Oregon * Director & Senior Research Economist respectively, Center for Agricultural Business, California State University, Fresno, Jordan College of Agricultural Sciences and Technology; Associate Professor, Department of Agricultural Business, Cal Poly, San Luis Obispo.

3. Importance of California Produce • Means of Transportation and Destinations • Some Issues with the Current System • Why Look at CO2 • Examples from the Study • Summary and Implications

4. California: Supplier of Domestic Fruits and Vegetables • 98% of U.S. Table Grape Production • 70% of U.S. Head Lettuce; 85% of Leaf Lettuce; 74% of Romaine • 86% of U.S fresh strawberries • 88 % of U.S. Broccoli • 94% of U.S. Celery • Etc. UC-Davis, AIC, The Measure of California Agriculture, August, 2009

5. Preferred Conveyance to Minimize Emissions 297 25.2

7. For Produce: Trucks Haul About 90% Of All Refrigerated Perishables With 15 Key Domestic Destinations USDA, AMS

8. USDA, AMS

9. USDA, AMS

10. USDA, AMS

11. The Heart of the Matter

14. Transportation Only Part of the Issue Food Climate Research Network

15. “Transportation as a whole represents only 11% of Life-cycle GHG emissions, and final delivery from Producer to retail contributes only 4%. “

16. Over the Road Miles Only Part of the Transport Story

19. Modal Share Celery

21. Average Distances From Shipment Points 15 City Destinations Derived from USDA. Fresh Fruit and Vegetable Arrival Totals for 20 Cities, last published in 1998. Washington, D.C., Agricultural Marketing Service, FVAS-3; Smaller volume cities added to nearest major volume destinations;

23. USDA/AMS Daily Movement Reports,;48-53 foot refrigerated trailers, 40,000 lb. shipment units;

27. Modal Share Iceberg Lettuce

32. Modal Share Table Grapes

35. Cost of C02 EmissionsCalifornia Fresh Produce Transport • California to Boston Rail = 1.4 metric tons ; Truck = 5.2191 metric tons; • UK plans a carbon floor price of $25.09 per metric ton from April 2013*; Australia initiaitive to start at A$23; ($22 US); Current estimates in CA $11 per metric ton for initial credit value; • Origin-Destination Truck Rates for Selected Routes and Commodities, 2nd Quarter 2011 California to Boston , Lettuce, $7,710 ** • About 1000 cartons per load (60 lbs. per); By Truck --- @$23.5/MT about 12 ¢ per carton / 0.2 ¢ lb. * Reuters Oct 3, 2011, 03.51pm IST ; ** USDA/AMS Ag Refrigerated Truck Quaterly , April – June, 2011.

36. Summary & Implications Observations • Market Demand for Variety Creates Need for Transport (Local may be desirable, but not practical for certain products) • Dominance of Truck Mode Imposes a Definable Transportation Carbon Footprint • Alternative Transport Scenarios Difficult if not Impossible in Foreseeable Future; • Internalize Existing Costs at current value for carbon low per unit; • Who Pays The Costs? Needs • Better data on shipment numbers/destinations by mode. • Leads to Better data & accountability to quantify the costs • Development of Efficiency Options for the Existing System

37. Green House Gas Solutions Require Global Action