Tag Archives: independent cranberry growers

News from the CMC Long Beach Washington

4 Aug

This morning the U.S. Cranberry Marketing Committee members have voted unanimously for a Volume Regulation on the 2017 and 2018 crops.  This is due to the CMC’s August 2017 estimate of 10,910,000 barrels of inventory carryin.  Inventory as a % of sales is projected to be 115%.  So folks, we have a lot of cranberries in all forms in inventory with another large crop forecasted.  

FINALLY, the CMC is following their mandate to stabilize the supply of cranberries which will allow the industry to clear the decks of excess inventory.  
Both sides, the independents and Ocean Spray came together.  It was a joy to see and no I’m not being sarcastic.  This meeting may be a watershed moment for the industry.  No more “last man standing”.  No more “I win, you lose”.  Compromises were made.  No one got exactly what they wanted.  Apologies were made for previous mistakes made.  Promises were made to listen to each other in the future.  We communicated.  

The real clincher for me was Dr Richard Sexton’s presentation about the effectiveness of our marketing programs contained an supply and demand review.  His estimates that for every 1% reduction in supply that the price to grower should increase 2% regardless of which type of cranberries, whole frozen, finished goods or concentrate are disposed of got my attention!  Dr Sexton, UC Davis is a pretty big deal in the world of agricultural  economics.  That being said…will it work?  Time will tell.  There is a lot of work to be done with the staff at the CMC and USDA.  The market has to work.  There is a discussion that we may increase assessments to do more international, generic promotions.  Our work to date has been successful, but any increases need a very good plan and implementation.  

Key items:  2017 will be a handler withholding of 15% and 2018 will be a producer allotment of 75%, meaning that growers can deliver 75% of their CMC average deliveries.  There are some exemptions and the Ag Secretary has to sign off. 

 If I get a chance I may post some additional info. If you want details, go to the CMC website as I am sure they will put up the details.  

Advertisements

WOW! We sure can grow cranberries!

10 Nov

As the harvest winds down in Wisconsin and all over North America, it is becoming abundantly clear that we can grow cranberries. Back in February and again in August, growers and handlers came together at the CMC meetings to contemplate a grower set aside. Even when faced with the prospect of a huge Wisconsin crop and fruit in the freezer the CMC members voted down any grower set aside. Well now I would like someone, anyone to review the wisdom of that decision and tell everyone if in hindsight, it was a good idea or not. I know for a fact that we filled up every inch of freezer space in Wisconsin and parts of freezers in neighboring states with a nice, clean crop that growers worked very hard to grow. The price projections are horrifying to the independent grower and this will indeed move on to OS as well. Why do I think that is true?

In fact, by my calculations and information, Ocean Spray is expecting to receive a patronage crop of 7.2mm barrels, yet according to the notes in their financial statements, they’ve only once (!) in 15 years sold 5mm barrels of patronage fruit in a calendar year and that was 2008. Patronage cranberry barrels sold from 2000 thru 2012 only once reached 5,060,000 barrels. Every other year during that span it was below 5mm barrels. So 7mm barrels will be hard to digest and that doesn’t include the 100,000s of barrels that OS takes in from non members. How do they deal with it? A company the size and complexity of OS needs crop in reserve, by their own estimation 4mm barrels. So, some overage is ok, but their supply has been growing and growing. Only they themselves know how much they have over and above what they need. But they handle the situation by extending the length of their pools and the cost of holding the fruit has to depress the return in the pool. A more efficient way might be to, hey, decrease the amount of fruit they grow. In coordination with the rest of the industry. And Canada. Oh, that’s right! We have such a mechanism, it is called the CMC.

Please CMC members. Get some facts. Correct me if I’m wrong. And this isn’t all about Ocean Spray. We will all do better if we manage the size of the crop.

We need to take a hard look at a marketing order at the February meeting. And while we are at it, lets look at that Webb Pomerene act again.

Final post of the day

22 Jan

So today was the trade show and first day of the Wisconsin Winter growers meeting. Since United Cranberry had a booth, our director Tim Feit and I spent some time talking to growers and vendors alike.

EVERY grower was glad for this cold spell…it is the coldest bit of weather that we’ve had in probably 3 years and everyone is glad to be making some quality ice. I think we will be sanding soon. And since our personal lack of sand the last few years has been a running joke amongst a few, so there! Ice!

Otherwise, the independent growers are worried about price. And they should be! The OS auction is next week and they have already predicted a price for their 2012 B pool at $16-21. It is my understanding that all the B pool fruit goes into the auction, so they must have figured out how much everyone is going to bid? Is that mental telepathy or what? Go figure.

It was great seeing everyone. United Cranberry is working on some interesting projects that we hope to be able to tell you about soon. Keep warm and be safe.

Cranberry wars update

6 Dec

oceanspraylawsuitdec52012

So here is the amended complaint which lists all the plaintiffs, all of whom appear to be from Oregon. At first read, the story is compelling.

concentrate auction and independent growers

5 Apr

Did it ever occur to you that if growers didn’t join the Ocean Spray B pool and /or didn’t sell  them independent fruit, that OS wouldn’t have any fruit/concentrate for the auction?  You don’t see them selling their A pool fruit for that low a price!   Something to think about as everyone on the B pool waiting list just got their notification of the new rules for the waiting list, which include a $350/acre fee.  As United Cranberry is taking the steps to become a handler, maybe growers should consider all their options. Call us!

Simply Cranberry is on the shelves!

14 Feb

http://www.bevnet.com/news/2012/simply-introduces-simply-cranberry-cocktail-and-simply-lemonade-with-mango

I’ve seen it in Wausau, WI at the Pic and Save….so I am sure it is everywhere.  I will post a photo of the label…but this juice is not from concentrate so I’m thinking it is going to be good.  Let’s all give it a try!  I LOVE new cranberry products 🙂

Cranberry news and google alerts

26 Jan

So those of you that know me, know that I am new to this blogging thing.  A few weeks ago, I figured out that if you tag and categorize your posts, they get into the Google search engine.  In order to get news articles for the blog, I have a few google alerts set up, like Ocean Spray, Cott, Decas Cranberries, etc, etc.  So imagine my surprise this morning, when google sends me an alert on a news story…on my very own blog posts!  Yes, we have arrived!  Today I received an alert on my post on the Ocean Spray auction.  Will wonders never cease.