Note 11 - Related Party

6 Months Ended

Nov. 27, 2011

Related Party Transactions Disclosure [Text Block]

11.   Related Party

The Company provides cooling and distribution services to both a farm and Beachside Produce LLC ("Beachside"), a commodity produce distributor, in which the Chairman of Apio has a farming and ownership interest, respectively.   During the three and six months ended November 27, 2011, the Company recognized revenues of $0.9 million and $2.0 million, respectively, which have been included in product sales and in service revenues in the accompanying Consolidated Statements of Income, from the sale of products and providing cooling services to these parties.  During the three and six months ended November 28, 2010, the Company recognized revenues of $1.2 million and $2.4 million, respectively, which have been included in product sales and in service revenues in the accompanying Consolidated Statements of Income, from the sale of products and providing cooling services to these parties.  The related receivable balances of $314,000 and $453,000 are included in accounts receivable in the accompanying Consolidated Balance Sheets as of November 27, 2011 and May 29, 2011, respectively.

Additionally, unrelated to the revenue transactions above, the Company purchases produce from the farm in which the Chairman of Apio has an ownership interest, Beachside, and Windset (see Note 3) for sale to third parties.  During the three and six months ended November 27, 2011, the Company recognized cost of product sales of $1.6 million and $2.9 million, respectively, which have been included in product sales and in service revenues in the accompanying Consolidated Statements of Income, from the sale of products purchased from these parties.  During the three and six months ended November 28, 2010, the Company recognized cost of product sales of $1.0 million and $2.5 million, respectively, which have been included in product sales and in service revenues in the accompanying Consolidated Statements of Income, from the sale of products purchased from these parties. The related accounts payable of $338,000 and $346,000 are included in accounts payable and other accrued liabilities in the accompanying Consolidated Balance Sheets as of November 27, 2011 and May 29, 2011, respectively.

All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Board of Directors.