Op-Ed

What the "growers' petition" will do for the grower?

By Doanne Andresen

1/26/00 -- Growers do not have to allow the handlers to sell their fruit below the cost of production. If growers demand a $40 for their fruit, then all of the handlers will sell their fruit at a price that returns $40 dollars to there growers. This includes Ocean Spray. If they raise the price that they sell berries at, other handlers will too. If they raise the price, they and all handlers will be able to pay $40 to their growers.

This works if we also get rid of the surplus at the same time using the Cranberry Marketing Order Regulations. Both of these objectives must be addressed at the Feb. 5 Meeting. A Cranberry Marketing Order does not help growers if handlers do not choose to raise the minimum price.

If we do not speak out, these handlers will continue their fight over market share and use our berries as their weapon by selling them for less than the competition’s price. It is the handler competition for the market share that is artificially driving the price down. Dumping the surplus will not raise the price. This only addresses the problems of supply and demand not the problems of control of pricing by a few major handlers.

Read these quotes from handlers and growers that are taken from their Op-Eds published on Cranberry Stressline. (Emphasis added.)

John C. Decas "I will ultimately support any plan that at the end of the day, will eliminate the surplus or any part of the surplus in a manner that gives no handler an advantage over another handler."

John Swendrowski "I have also sat in several meetings at the handler level and find them full of innuendo and finger pointing as each handler attempts to serve their individual agenda."

Rob Hiller "We must devise a plan that ensures that growers and handlers alike are treated with fairness, and that any possibility of price gouging is eliminated."

Russ Lawton with Linda Rinta "It is not our interest to adopt any regulation that will destroy any handler."

We need to change the focus from the handler to the grower. The petition can do that on Feb. 5.

Excerpts from the 26 page Cranberry Marketing Order Amendments posted on the Federal Register. These excerpts show that the intent of a marketing order is to help small entities… not big business.

p.5 "The intent (of the order) was to discourage new plantings and allow growers to remove surplus berries in a more economical manner…."

p. 18 – 19 "The purpose of the Regulatory Flexibility Act is to fit regulatory actions in order that small businesses will not be unduly or disproportionately burdened…."

" The statues have small entity orientation and compatibility."

"Six major handlers handle over 97 % of the crop. The AMS has determined that none of these handlers qualify as small businesses under SBA’s definition."

"Of the 1,100 cranberry growers, between 86% and 95% ….may be classified as small entities."

Excerpts from AMS website page entitled "Small Business Guide for Complying with Market Orders for Fruits, Vegetables and Specialty Crops"

"All marketing orders are initiated by producers. Producers have an active role in the development of the program."

"Marketing orders have a small business orientation."

"Steps in Developing a Fruit and Vegetable Marketing Order"

Step 9. "If at least two thirds of the growers voting by number or by volume approve the proposal, the Secretary of Agriculture issues the marketing order."

The petition says that "I will not support any Cranberry Market Order for this year unless handlers also write a voluntary agreement to honor the grower’s demand for a minimum price of $40 per barrel."

The Marketing Order is a tool that can be used for the grower or against the grower. Handlers are controlling the regulations in this marketing order and not considering the consequences on small businesses. Growers need to speak in a consensus to be heard.

Sign the petition. You can negotiate a price with the handlers. You can make a difference this year.

 

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