Cranberry Marketing Committee, Orlando, FL

Well, it is time to head to the CMC meeting in Orlando. Usually everyone arrives on Sunday and the actual meeting is on Monday and Tuesday of this coming week, February 25, 26. I have to say that this is a wonderful time to leave WI, with snow falling. A year ago we were almost growing cranberries by this time! Yikes. Oh, and everyone was expecting the independents to make $35-40/barrel. Seriously.

So, what to expect from the CMC? Let’s start by reminding everyone that I am not a member or even an alternate. I go to these meetings to learn and try, try, TRY to figure out what is happening in the industry. The CMC has two main functions as I can tell. First of all, they take our $.28/barrel assessment and use it to generically advertise cranberries overseas and secondly, they can vote for a set aside to manage the size of the crop when we are over supplied. They also are the vehicle for numbers and reporting…can’t forget that part!

I think they really have a handle on the promotion part. Our international sales have steadily increased over the past 10 years…and I’m sure our efforts there have helped.

When it comes to volume regulation, EVERYONE I’ve talked to agrees that we have way too many berries in the freezer. Both Ocean Spray and the independents have too much fruit. Quebec and British Columbia had great crops and the projections are that additional new beds will be harvested this fall. What to do? The good news is….everyone is oversupplied. This means that maybe, maybe we can figure out how to deal with the situation. The US and BC have a marketing order, Quebec and Eastern Canada does not. We must figure out how to get Quebec into being part of the solution on this. All the US handlers are dropping their prices. Juice companies are searching around for low priced concentrate. The SDC prices are slipping. All around is bad news for growers…but yet…is it?

Say your sales history is 30,000 barrels and the set aside is 15%, so you can deliver 25,500 barrels. Without a set aside, the prices are going to be low, $15? What if, with a set aside we could get $25?
30,000 barrels x $15 = $450,000
25,500 barrels x $25= $637,500

Now, clearly I don’t know the prices, etc, etc…so don’t get all over me. I’m not the economist. I know that as an industry, we know how many barrels we sold last year, we know how many we took in and we can project how many barrels we can sell this year. It is math people! If we don’t continue to over supply the market, the prices will come up. Pure and simple.

Let’s come together in Orlando. We will have visitors from Canada and all the handler groups represented. Lets keep our egos in check and have a meaningful discussion. We can start with what we agree on: we delivered a lot of berries in 2012. If we can agree that by taking some fruit off the table in 2013 our prices will go up…then the only thing left to discuss is how and how much. Are you with me?

Cranberry wars update

Some of the lawyers representing the Independent growers suing Ocean Spray have a website up that you can see here:

http://www.southcoastlaw.net/#!

Global warming targets Thanksgiving | Daily Record | dailyrecord.com

http://www.dailyrecord.com/article/20121121/NJFOOD/311210016/Global-warming-?nclick_check=1

Thanksgiving Staple Impacted by Climate Change – Front Page Journal -

http://www.ecori.org/front-page-journal/2012/11/21/thanksgiving-staple-impacted-by-climate-change.html

Base price update!

Just a kind reminder that all base prices are NOT created equal.  Every handler has a different method of incentivizing (is that a word?) to deliver the type of fruit that they want.  So remember, when I post a base price, it is just that, a base price.  Most handlers have incentives on top of that for size, color, brix, etc, etc.  Base is base.  A starting point. What really matters is the final price, and if you are happy with it as a grower.  Another factor to be considered along with price is the payment schedule and actually the strength of the handler.  Price is great, but when do they pay and can they actually make the payment?  We’ve had handlers in our recent past that promised BIG payments and never delievered.

As for us as growers, our job is to deliver quality fruit, of the variety and color that is in demand.  We are kidding ourselves to think that we can deliver something less than our best.

Thanks to the handler that pointed out a few of the above facts.  You know, we really do need our handlers. 

 

Lawsuit update and other pricing news

So yesterday Ocean Spray filed with the court their reasons that they should know who exactly are the John Does 1-7 who are suing them. Lots of legal cases. yada. yada. Don’t know when the court will rule but when I find out I will post it. And once I figure out if I can post the actual filings, I will do that, but don’t know if the server thing I subscribed to will let me. I’m thinking not. Any way, it looks like there are lots of reasons to reveal the names of the plaintiffs. We will see if the Judge agrees.

On the pricing front, Decas Cranberry announced in a letter to their growers at base price of $23.50 for the 2012 crop, a decrease from $25. Mariani also announced their price at $26.50. And I have been told that Cott (Cliffstar) and Lassonde (Pappas) are holding at $30. Wow. I always thought that the SDC makers could pay more since they get to make SDCs and then sell the resulting juice as opposed to the juice makers who just get to make juice. I’m hoping to hear some Canadian pricing with Atoka and Fruit D’or. Anyone have any info out there? Right now I’m thinking that the Cliffstar and Pappas growers are glad they didn’t jump ship this past year. Time will tell, it always does.

Lots of things going on in our cranberry world

I’d say that harvest is mostly finished and handlers are counting up their berries.  Looks like the crop was larger than expected, mostly due to Quebec bringing in huge numbers.  Good for them, but probably bad for prices.  The OS auction was held on Weds, and concentrate prices dropped a bit.  I have heard that one big WI handler dropped his bacse price to $26.50, due to dropping SDC prices.  Also not good.   The good news is that we brought in a quality crop, and there is always a place for quality fruit!

On the legal front, a class action lawsuit has been filed against Ocean Spray in Massachusettes court.  I didn’t know anything about it, so I am just reading and absorbing as you will.  Looks like 7 independent growers from all the main growing areas and one B pool grower have instigated this.  Don’t know who they are, or how they are doing it.  I did google search the attorneys and they look intesting.  Seems like the suit is from Oregon originally, but I’m not a lawyer and don’t really know how to read these things. I just tried to load the lawsuit file and it is protected somehow.  You can find it online here  http://dockets.justia.com/docket/massachusetts/madce/1:2012cv12016/147455/

United Cranberry is just rocking along.  We took in some fruit, have it cleaned and in bins and are looking for buyers!  thanks to our growers for a great first season!

 

 

 

Wisconsin cranberry harvest update #1

Wow. I haven’t blogged since the Wisconsin Field days in August and for that I apologize.

Harvest has started early in Wisconsin. Yes, usually growers harvest a bed or two at this time to shake the rust off, try out the equipment, make sure everything is in working order. But this year, some growers are going early because of a lack of water. Most, if not all of Wisconsin has watched frost for the past week. Some growers in the central growing area are finding that their reservoirs are not recovering after a night of frost, and then when they went to flood a bed they couldn’t hold a flood for more than 8 hours…the water just soaked in. All efforts are being made to get those beds water and growers are harvesting to get the crop in, with a color of 15 to 20. Is this all growers? Certainly not. But some areas have had minimal rain in the past 4-6 weeks and the water just isn’t there. It is a combination of drought, sand and nightly frost watch. Keep tuned. This long growing season is throwing us a bit of a curve ball with harvest water.

And, what about winter flood? What are you seeing out there?

Costco/OceanSpray juice

Now this is some good looking juice! I understand that this is 35% Cranberry, so i am happy! I love high content cranberry products.

Cranberries and Coumadin (Wafarin)

We learned this week that the manufacturer of Coumadin^® (warfarin) has removed references to cranberry from its Medication Guide which accompanies the drug. This has been a priority for the industry for many years and it appears that a combination of factors including the research reports by Dr. Jack Ansell and contacts made at last years’ Anti-Coagulation Forum meeting in Boston contributed to this welcome change by Bristol-Myers Squibb. The changes in the medication guide were approved by the FDA. 

This is great news, as now consumers that are on Coumadin are able to drink cranberry juice!