#1. The quicker we get rid of the surplus, the
better. I believe this can be accomplished in one year. The solution
will cause a great deal of pain to the grower, but only for one year.
There is less suffering in cutting the jugular than cutting one half a
wrist for the next five years. It is preferable to have a number of
businesses die quickly, rather than the certainty of all succumbing
slowly. All excess cranberries should be deposited with the C.M.C., to
be sold to any handler at grower price, plus freezer costs (forget the
notion that O.S. needs 1,500,000 BBL carry over), and then figure the
"Marketable Quantity" needed for 2001 and adjust the grower
allotment accordingly. I’m sure that the set aside would be
somewhere between 40% and 50%.
#2. This is an industry problem, as long as you
realize that industry is synonymous with growers. We, the growers, are
the people who can solve this surplus situation, because we control
the supply. Handlers are fighting among themselves to maintain, or
gain, market share; using low supply prices to wage their war. Do they
think about grower returns? No! As handlers, they just hope enough
growers survive so they can stay competitive next year. Some handlers
are signing up new growers, because they believe some of their current
growers won’t be here next year due to financial problems. These
handlers, who are signing new growers, do not have a surplus problem
and would rather deal with additional growers rather than be held
hostage by handlers who have a surplus problem and know it.
#3. Growers may have to organize to insure that
a reasonable return for fruit is obtained. Remember, we control the
supply! In my estimation, if we can’t receive $35.00 per barrel, we
won’t be able to survive, or make our operations profitable.
#4. The growers would stand a much better chance
with lending institutions if loan officers knew that in one year
prices could rebound.
#5. We, the growers, need to support medical
research, generic promotion, and 27% juice content. It is unbelievable
how little discussion has taken place relative to this issue. I
believe it would remove 500,000-1,000,000 BBL from the surplus and
reassure the customer that any cranberry drink would offer the same
medical benefits. We must work with our respective handlers to stop
this price- cutting and sell cranberries at a reasonable price.
Supermarkets are selling cranberry products at the same price level as
when growers were getting $60.00 per barrel. The handlers need to
realize price-cutting is not working now and will never work.
#6. If the grower cannot make it clear to the
handlers that these price-cutting measures must stop, the handlers who
survive will win at the expense of 50-60% of the growers who will be
forced out of business. Quite possibly this is the solution some
handlers are seeking. The only way to stop this scenario is for the
growing community to take charge.