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Re: Obey, Kohl & Northland Marketing order as “insurance” to protect ourselves from the very real danger of a bumper crop By Gregory Gitter, President, Wisconsin Cranberry Cooperative The Wisconsin Cranberry Cooperative supports the efforts of Gene Miller, John Swendrowski and others in asking the USDA to implement a marketing order that protects the individual growers from deteriorating pricing for the 2002 crop. It is only prudent to ask the USDA for a marketing order as “insurance” to protect ourselves from the very real danger of a bumper crop being delivered in 2002. I believe that it is irresponsible for any handler to not support some form of marketing order to protect the inventory deductions accomplished during the last two years. The good news is that the marketing orders of 2000/2001 have reduced inventories to a projected 2.3 million barrels at the beginning of the 2002 crop season. The bad news is that foreign fruit imported is growing at a much faster rate then foreign sales conducted by U.S. handlers. I also find it very troubling that total cranberry utilization was flat from 2000 to 2001 at 6.8 million barrels, considering the USDA purchases and the never ending promotional sales and discounting of cranberry juices at most major grocery chains. It appears that without the USDA and various sales promotions that 2001 could have resulted in a net decrease in cranberry sales. On the issue of the market analysis done by Dr. Ed Jesse of the University of Wisconsin, I have found his analysis to be accurate, detailed, and readily available to the general public. In judging the reactions of some of the handlers contacted by our cooperative, their disgust and denial of Dr. Jesse’s analysis is a clear signal that he is truly representing the best interests of all GROWERS. If there is another economist publishing a different view on the state of the cranberry industry, I would appreciate the opportunity to review this analysis. Grower returns are still far below the cost of production, Clement-Pappas and Cliffstar growers are expecting to receive $ 18/BBL for the 2001 crop. Ocean Spray growers I have spoken to expect the 2000 pool to close in May, with a price received of $ 17- $18/BBL. I would expect the other handlers to pay similar prices. The point being That ALL GROWERS are suffering financially, and ALL GROWERS have a responsibility to contact the USDA asking for some form of marketing order to protect our future earning. I understand that effected handlers may not appreciate my views, however it is the responsibility of cooperative management to fight for the economic survival of every individual cooperative member possible.
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