Fresno dairy raw milk products recalled by state

California food safety regulators have placed a recall and quarantine order on raw milk products from a Fresno dairy, Organic Pastures.

All milk products except cheese aged a minimum of 60 days must be pulled from retail stores, and consumers are urged to dispose of any remaining products in their homes, said the California Department of Food and Agriculture.

The quarantine order came after state health authorities identified a cluster of five children infected between August and October with the same strain of the bacteria E. coli 0157:H7 in Contra Costa, Kings, Sacramento and San Diego counties. An investigation revealed that the only common factor was the drinking of raw milk from Organic Pastures.

State milk and dairy food inspectors have begun a full check of the Organic Pastures facilities.

Organic Pastures marketing manager Kaleigh Lutz said that the dairy's own testing has been negative for presence of pathogens. The family-owned company is working with Food and Agriculture to resolve the investigation. Organic Pasture's organic beef, raw cheese and organic pastured eggs are not affected by the recall.

Symptoms of E.coli infection include abdominal cramps and diarrhea, which is often bloody, officials said. Most people recover within a week, but some victims need to be hospitalized.

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Food borne pathogens carry devastating long-term effects

-- Marc Lifsher

Photo: A cow whose milk has not been subject to a California recall is being milked for fans of nonpasteurized milk. Credit: Ted S. Warren / Associated Press

Farmers markets double, local food sales to hit $7 billion, USDA says

Locally produced foods could pull in $7 billion this year, according to a new U.S. Department of Agriculture report.

Whether sold directly to consumers through farmers markets, roadside stands or middlemen such as supermarkets or restaurants, the market for food grown nearby is growing fast. The industry hit $4.8 billion in sales in 2008, according to the report.

Sales made straight from farms to buyers doubled in two decades to $1.2 billion from $650 million in the 1990s, according to the report. Local food sold through intermediary retail channels pulled in $2.7 billion.

The surge may coincide with increasing interest in healthful eating and artisan cooking, trends that have encouraged major companies such as Burger King and Domino’s Pizza to focus on fresh ingredients.

The USDA found that more than 80% of local food producers are small farms making less than $50,000 in gross annual sales. But large farms pulling in $250,000 or more, which represent 5% of the farms with local food offerings, account for in 92% of the associated revenue.

Demand is strongest in metropolitan areas, especially in the Northeast and on the West Coast. The number of farmers markets doubled to 5,274 nationally in 2009 from 2,756 in 1998, according to the report.

The USDA also believes that farms may be hiring more staffers to support their local food efforts.

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-- Tifany Hsu

Photo: The City Market in Kansas City, Mo. Credit: Ed Zurga / Associated Press

Consumer Confidential: Bank Transfer Day, hoodia settlement

Here's your fight-the-power Friday roundup of consumer news from around the Web:

--Have any plans for Saturday? How about sticking it to your bank? Nov. 5 is Bank Transfer Day, organized by Kristen Christian, an art-gallery owner in California who is using Facebook to invite people to shift their funds from for-profit banking institutions to not-for-profit credit unions. As of Thursday, nearly 36,000 Facebook users "like" the concept while more than 73,000 indicated they will be taking matters into their own hands. An estimated 650,000 consumers have joined credit unions nationwide since Sept. 29, according to a statement from the Credit Union National Assn., a credit-union advocacy group. That’s the day Bank of America announced its now-aborted $5 debit-card fee.

--If you've been thinking about taking hoodia to help lose weight, don't bother. The Federal Trade Commission says it's settled a case against two companies which hyped weight-loss products based on hoodia, a substance derived from the Hoodia gordonii cactus of southern Africa. The FTC complaint alleged executives at Nutraceuticals International and Stella Labs falsely marketed hoodia products as effective weight-loss and appetite-suppression supplements, even though there was no scientific evidence of such benefits. David Romero, a principal at both companies, was assessed a $22.5-million fine for his role in the marketing claims. Romeo forfeited to the FTC a Vermont vacation home and $635,000 in business loans as part of his settlement. A $4-million judgment was also assessed against Deborah Vickey, a marketing executive at Nutraceuticals International.

-- David Lazarus

Photo: Frustrated consumers are being encouraged to switch banks on Nov. 5. Credit: Ted S. Warren / Associated Press

 

Lap-Band sales fell 16% in third quarter, Allergan says

Sales of Allergan Inc.’s Lap-Band weight-loss device dropped 16% in the third quarter of the year, the company said.

The Lap-Band is familiar to many Southern California residents because it is marketed extensively by a company called 1-800-GET-THIN on freeway billboards, television, radio and the Internet. The ad company is not affiliated with Allergan.

In a Wednesday conference call with analysts, Allergan Chief Executive David E.I. Pyott blamed the slump in Lap-Band sales on the sluggish economy, high unemployment and steep insurance co-payment requirements. In a statement, the company said it “remains committed to the Lap-Band business, as we strongly believe it represents an important tool in addressing the obesity epidemic.”

Since 2009, five Southern California patients have died after undergoing Lap-Band procedures at clinics affiliated with the 1-800-GET-THIN ads, according to lawsuits, coroner’s records and interviews.

Several lawsuits have been filed against the advertising company, clinics at which the surgeries were performed and the doctors involved in the surgeries. Through their attorneys, the marketing company and surgery centers have denied wrongdoing.

The Lap-Band represents just a small fraction of Allergan’s sales. The Irvine company also markets Botox wrinkle treatment, breast implants, an eyelash lengthening drug and a number of eye medications. Allergan reported $1.31 billion in sales for the third quarter, down slightly from the $1.33 billion that analysts had expected. Its shares fell $3.22, or 3.7%, to $83.74 on Wednesday.

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-- Stuart Pfeifer

Photo: An advertisement for Lap-Band surgery. Credit: Mariah Tauger / Los Angeles Times

No fruit in Fruit by the Foot? General Mills sued over snacks [Updated]

There’s not much fruit in General Mills snacks such as Fruit Roll-Ups, Fruit by the Foot and Fruit Gushers, alleges a new suit against the giant food company.

Instead, the candies are stuffed with sugars, artificial additives and dyes, according to a complaint filed Friday in federal court in California. The nonprofit Center for Science in the Public Interest, filing on behalf of Northern California mother Annie Lam, claims that the products give a misleading impression of being healthy by professing to be low in calories, fat and gluten.

The Washington, D.C. organization said that labels calling the snacks “naturally flavored” or “made with real fruit” violate laws governing deceptive advertising and fraudulent business practices.

While Strawberry Fruit Roll-Ups contain no strawberries, according to the group, the complaint alleges that the product’s contents include pears from concentrate, corn syrup and other components such as acetylated monoglycerides, malic acid and a dye called Red 40.

[Updated 10:05 a.m.: Minnesota-based General Mills said it still had not been served with the suit and would not comment on the claims.

"We stand behind our products — and we stand behind the accuracy of the labeling of those products," the company said in a statement.]

“General Mills is basically dressing up a very cheap candy as if it were fruit and charging a premium for it,” said Steve Gardner, litigation director for the science center. “It’s an elaborate hoax on parents who are trying to do right by their kids.”

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-- Tiffany Hsu

Photo credit: General Mills

Unhealthy, overweight Americans cost $153 billion in lost work

Full-time workers in the U.S. who are overweight or obese and have chronic health problems such as high blood pressure or asthma cause $153 billion in lost productivity each year, according to a new Gallup poll.

That’s nearly four times the amount reported in Britain, according to the report, which found that such Americans have 450 million more days of of absenteeism than their healthy colleagues.

More than 68% of all U.S. workers, regardless of weight, have at least one chronic condition such as diabetes or depression, according to Gallup. Healthy Americans of normal weight make up less than 14% of the population and take about four sick days a year.

The rest of the 109,875 workers surveyed from Jan. 2 to Oct. 2 were overweight, obese and/or suffering from an ongoing health issue.

About 18% of U.S. workers are overweight or obese and saddled with three or more health conditions -- costing $81 billion in lost work over the 42 sick days each takes on average every year, according to Gallup.

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 -- Tiffany Hsu

Photo credit: Brian Vander Brug / Los Angeles Times

Cost of employer health coverage climbs, survey finds

The cost of health insurance provided by employers for families jumped 9% this year over 2010 as rising healthcare expenses and other factors contributed to the largest premium increases in six years, a national survey shows.

Annual insurance premiums for families reached $15,073 on average this year, up from an average $13,770 last year, according to the Kaiser Family Foundation and the Health Research & Educational Trust, nonprofit groups that conducted the survey.

Employers are picking up the bulk of the costs as they have in the past. This year, they are paying $10,944 on average to cover workers and their families, while employees are paying $4,129.

Even so, workers’ insurance bills have risen at a much fast rate than their earnings, the survey found.

Employee contributions to their health benefits have grown 168% since 1999, more than three times the rate of earnings and more than four times the rate of overall inflation, the data show.

That’s significant because employer-sponsored health insurance is the leading source of health coverage in the United States, providing about 150 million people with benefits.

“A big premium jump is especially tough for workers and employers when they’re facing a faltering recovery, but it’s really tough for workers when wages are declining in real terms,” said Drew Altman, president of the Kaiser Foundation. “The pain factor is pretty high right now.”

The survey of 3,184 public and private employers comes as insurance companies report lower-than-expected use of healthcare services in the wavering economy, driving up profits while cutting into healthcare providers’ revenues.

Insurers say that even people with company-sponsored health insurance are staying away from doctors and hospitals to avoid medical bills.

To cut costs, workers are embracing an increasingly popular approach: enrolling in high-deductible policies that cut their annual premiums but require them to pay more out of their pockets if they require medical care.

This year, 31% of workers enrolled in plans with deductibles of at least $1,000. That’s up from 10% in 2006.

The high-deductible plans are most common among relatively small companies, those with three to 199 employees. Fifty percent of workers at these firms have the high-deductible plans, up from 16% in 2006, the survey found.

The high-deductible plans often allow workers to set aside pre-tax dollars to pay for healthcare expenses. Healthcare experts say that approach allows companies to shift more healthcare costs to employees.

The survey did not project future insurance costs, but a separate report recently predicted that expenses for U.S. employers will slow next year.

Firms are forecasting a 5.4% increase on average in 2012, according to preliminary results from the survey of nearly 1,600 employers by benefits consulting firm Mercer.

The figure reflects cost-cutting measures by employers, as many move employees into lower-cost health plans or raise deductibles.

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-- Duke Helfand

Photo: Karen Bleier / AFP/Getty Images

Federal agency seeks to ban electronic cigarettes on airplanes

The U.S. Department of Transportation wants to make it clear that the ban on smoking on commercial planes includes electronic cigarettes.

U.S. Transportation Secretary Ray LaHood announced Wednesday that the agency is proposing a new law that explicitly bans the smoking of electronic cigarettes on all domestic and international commercial flights in the U.S.

The current law bans the smoking of tobacco on planes but does not single out the use of electronic cigarettes. Most e-cigarettes do not burn tobacco but use a lithium battery to heat up a liquid nicotine solution, creating a vapor that can be inhaled to deliver the nicotine directly to the lungs.

For years, flight attendants have spoken out against electronic cigarettes, saying passengers and attendants have had confrontations because some passengers argue that the federal tobacco ban does not apply to electronic cigarettes.

“Airline passengers have rights, and this new rule would enhance passenger comfort and reduce any confusion surrounding the use of electronic cigarettes in flight,” LaHood said.

Under the federal rule-making process, the public has until Nov. 14 to submit comments on the proposed ban at the Federal Docket Management System. Federal officials said they could not estimate how long it will take to review the comments and prepare a final rule for adoption.

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-- Hugo Martin

Photo: The inventor of an electronic cigarette, Hon Lik, smokes his invention in Beiijng. Credit: AFP/Getty Images

Consumer Confidential: Soda warning; free Chick-fil-A meals

Here's your jumpin'-jack-flash Friday roundup of consumer news from around the Web:

--Public-health advocates are calling on Americans to go easy on the soda. A coalition of health and consumer groups would like to see Americans reduce their consumption to three cans per week. The Center for Science in the Public Interest, the American Heart Assn., the American Diabetes Assn. and more than 100 other groups are mounting a campaign to educate Americans about the risks of consuming too much sugar. Sugary drinks are the single largest source of calories in the American diet and account for half of all added sugars consumed. And unlike any other food or beverage, only sugary drinks have been shown to have a causal role in promoting obesity. The American Heart Assn. recommends that people limit their intake of sugary drinks to about 450 calories per week, or about three 12-ounce cans. Average consumption is now more than twice that.

--Speaking of calories, our friends at fast-food chain Chick-fil-A are giving away breakfasts to customers who make an online reservation. To participate in the promotion, which runs from Sept. 6 to Sept. 10, customers should go to chick-fil-aforbreakfast.com to find a participating restaurant near them and reserve the menu item of their choice, as well as the time they plan to pick it up (between 6:30 a.m. and 10:30 a.m.). Available dishes include: Chick-fil-A Chicken Biscuit; Chick-fil-A Spicy Chicken Biscuit; Sausage Biscuit; Chick-fil-A Chick-n-Minis; Bacon, Egg & Cheese Biscuit; Chicken, Egg & Cheese on Sunflower Multigrain Bagel; Chicken Breakfast Burrito; Sausage Breakfast Burrito; and Multigrain Oatmeal.

-- David Lazarus

Photo: Those sugary drinks may not be your friend. Credit: Daniel Barry / Bloomberg News

 

Hospitals not immune to rising insurance costs for their staffs

Here’s an irony: California’s hospitals, the very places that care for the sick, are struggling to afford healthcare for their own employees.

Like other types of employers, the state’s hospitals are confronting soaring health insurance bills.

A new statewide survey shows that hospitals face average insurance costs this year of $10,992 per employee, an 11% increase over last year.

Because a majority of hospitals pick up the entire cost of insurance for their workers, the financial burden falls entirely on them, according to the healthcare benefits survey by Keenan HealthCare, the state’s largest independent insurance brokerage.

California’s troubled budget outlook and new requirements under national healthcare reform could drive up the costs even more, the survey of 231 hospitals found.

“Like every other enterprise, hospitals are facing increased health insurance costs and are actively looking for ways to stop or at least slow that trend,” Steve Richter, senior vice president of Keenan HealthCare, said in statement accompanying the survey. “Just because you are a healthcare provider doesn’t mean you get a break on your insurance.”

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-- Duke Helfand

Photo credit: Indiana Public Media via Flickr