John Decas responds to Op-Ed piece by Lory Krueger of Mid-America Trade Group

I have yet to see a response from the Cranberry Marketing Committee regarding the criticism of their action to exclude all foreign countries as an eligible, non-competitive outlet for berries. I support the Marketing Committee on this issue for the following reasons:

1. If not excluded, handlers could sell their restricted berries into these markets with no obligation to pay the grower. This would allow and encourage handlers to dump berries that they had no obligation to pay for at reduced prices, undermining the efforts to build foreign sales as a value-added initiative and ultimately achieving higher returns to the grower.
2. Handlers with surplus remaining after the volume regulation would be encouraged to dump their surplus under the guise of the Cranberry Marketing Order to hurt competition and take away their existing market share. The volume control program would become an excuse for predatory practices.
3. Dumping cheap berries into foreign markets would undermine the USDA-CMC generic promotional program, which is designed to build value-added sales that will result in greater returns to the growers over time.
4. Even after the volume regulation removes 15% of the combined growers� crop histories from the market, there will be more than enough cranberries to service existing and new cranberry markets in foreign countries. Indeed, any legitimate trading or marketing company can currently access cranberries at very favorable prices (below the cost of production) and sell this fruit in any foreign market.
5. Existing handlers will not be able to build these export markets in an orderly fashion because they would be competing with restricted berries from their own growers being dumped into foreign markets.

Clearly, growers are angry and frustrated at their returns and about the fact that their 2000 crop will be restricted to 85% of their allotment. I don�t blame them, and I personally would like to see the Secretary of Agriculture reject the proposed regulation. But if it were enacted, the growers would receive no relief, in my opinion, by marketing their restricted berries into some export initiative proposed by someone who intends to compete with their handler. In fact, this would tend to drive the grower price down further.

Now, along comes someone named Lory Krueger representing a company called Mid-America Trade Group, claiming to be able to sell excess berries on behalf of growers. Before any credibility can be given to Mid America Trade Group, growers should ask the appropriate questions.

First of all, who is Lory Krueger, and who is Mid America Trade Group? Where are they located? Who are their corporate officers? Who are their owners? What foreign markets are they "�already trading in"? Do they presently sell cranberries, and in what form? Do they sell frozen berries to foreign markets, and if so, how can they absorb such a high cost of shipping berries prior to processing? If they sell concentrate and other cranberry products, where do they process them? Do they intend to participate in the cost of the industry�s generic export promotion of cranberries?

How and where will they take delivery of growers� berries? What terms and commitments will their contract include? How will growers be paid? Who pays for cleaning the fruit? Who supplies the bins?

I am sorry, Lory, but your vague proposals over the Stressline do nothing but stir up growers� expectations without any substance.

What are your credit references? Who are your bankers? As a new handler, will you offer growers a bank letter of credit?

You say it is your "�stated goal to market cranberries to our customers with the growers� interest as a high priority." Tell us what that means. What are the other products you tell us that you are selling into foreign markets? Describe your marketing program. How will you avoid a marketing conflict of selling a grower�s berries in competition with that very grower�s berries delivered to his or her handler?

Since you intend to sell cranberries anyway this year, why are you only willing to buy Canadian berries? Is this to punish US growers because of the Cranberry Marketing Committee�s decision? Are you aware that you can presently buy US berries priced favorably? Have you attempted to work with existing handlers who may be interested in your marketing capabilities?

These are just a few questions that need answers before it can be determined whether Mid America Trade Group is a legitimate marketing entity that offers a legitimate marketing program or an opportunistic predator seeking to take advantage of desperate growers in desperate times.

Most growers would be pleased to get answers to these questions in order to gauge Mid America Trade Group�s credibility and before reaching critical conclusions about the actions of the Cranberry Marketing Committee. I would also submit to Mid America Trade Group that some, if not most cranberry handlers would be pleased to consider any program that would expand the sale of cranberries through some sort of partnership arrangement with Mid America or anyone else if it benefited both parties.

One final question. Why didn�t Mid America make their views on foreign sale exemptions directly to the Cranberry Marketing Committee? Why complain about the actions of the Committee after the fact when they could have participated in discussions before final decisions were made?

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