Cranberry Stressline Archives

12/16/00 to 1/6/01

In the newspapers

"Ocean Spray posts sharp net decline"

1/6/01 -- "As it prepares for what could be a contentious annual meeting later this month, Ocean Spray Cranberries Inc. of Lakeville is reporting disappointing results for a second year in a row..." The Boston Globe here

From the Cape Cod Times: "Talks fruitless over cranberry woes."


Op-Ed

Baseline Price Guarantee for Growers

By Doanne Andresen

1/6/01 -- The USDA is about to spend $30,000,000 for cranberries that are held as surplus. This money will be given to Ocean Spray and/or Northland. The money is intended to increase the price that growers will receive for their berries. But the USDA is being misguided in the use of these funds. CONTINUED

On the Forum

A Difference of Perspective on the CMC
by
Linda Rinta

Respond to this posting on the Stressline Forum

1/6/01 -- After attending the Growers' Association presentation on the marketing order I was left overwhelmed and discouraged. It was clear listening to the handler presentations, which were enlightening, that the whole perspective is different depending on where you sit. I am reminded of the saying, "A flood is a very different problem depending on whether you are a monkey or a fish." CONTINUED


Summary of Merrill Lynch report released by lawyers

1/5/00 Citing the refusal of Ocean Spray to release a summary of the information from a Merrill Lynch economic analysis on the cooperative from November of 1999 until a meeting scheduled in San Diego the day before the annual meeting, the law firm representing Harju, Morse and DeMarco in a lawsuit against Ocean Spray has send its own summary to shareholders.

According to attorney Barbara L. Moore, this summary is based on the collective memories of grower-owners who are familiar with the contents of the Merrill Lynch report. The overall conclusion of the Merrill Lynch study is described as clear and indisputable and is consistent with the Bain Report. It is simply that if the decision was made on a financial basis, the sale of the beverage division of Ocean Spray would make the most sense.

The Merrill Lynch conclusion suggests that in lieu of a sale which would garner shareholders a substantial annual investment income, it could take decades for a grower to equal the total income from a combination of equity or fixed income securities, plus profits from cranberry production. In fact, in order to do so, Merrill Lynch says that the average grower would have to be paid in excess of double the cost of production.


Handlers pledge cooperation, but divided opinions surface
by Betty Brown

1/5/01 -- Participants in yesterday’s MA Cranberry Market Outlook Seminar all said they would work together to stabilize the industry and return it to profitability, but as each clarified his position, the divisions among them were striking. The audience at the Plymouth Sheraton was large and very attentive throughout the entire long afternoon. Moderator Jim Putnam of First Pioneer Farm Credit kept a tight rein on both speaker’s time allowances and their civility, after opening the meeting with three stated purposes: to look for solutions, to learn, and to come together. CONTINUED

Related: John Decas' proposal |||
John Swendrowski's Op-Ed
|||
Patriot Ledger article on the Market Outlook Seminar


Updated FSA News: Cranberry Marketing Loss Program ($5.00/barrels)

1/3/01 -- The FSA Washington Staff has completed the program rules and is awaiting Department clearance before publishing them They have also prepared the certification form which is pending Office of Management & Budget (OMB) approval. They are still confident the payments will be issued this month.

Massachusetts Growers: There will be a Crop Insurance meeting to discuss changes in the Adjusted Gross Revenue Program (AGR) on January 9th, 10:00 AM to 2:00 PM, at The Bristol County Agricultural High School. This insurance is a risk management tool farmers can use to insure their crop income. Federal Crop Insurance has made several changes as well as reduced the premiums to make the program more attractive to growers. You would be using 1996 though 1999 tax years as your income baseline to calculate your income guarantee.

You can get more information on the program by visiting the USDA Risk Management Agency (RMA) at this web site www.rma.usda.gov, or call your local crop insurance agent. You can calculate your premium at this RMA site here. Deadline for signup for AGR is January 31, 2001


Proxy fight in the news

1/3/01 Aaron Nicodemus writes in the New Bedford Standard Times (see Battle looms for control of Ocean Spray), "the dissident grower/owners argue that the turnaround plan is costing smaller growers their livelihood and that a sale or merger of Ocean Spray is the only thing that would save smaller growers from financial ruin," and quotes Ocean Spray spokesman Chris Phillips as stating "there's a clear difference of opinion on the future of the company... the issues are certainly heightened because of the state of the industry. I think we have a compelling case to make for staying the course and sticking with the turnaround plan."


Ocean Spray shareholders challenge company  B.O.D. slate

12/30/00 Grower-owners of the Ocean Spray cooperative will be engaged in a second proxy fight in as many years for seats on the Board Of Directors at the annual meeting on January 16, 2001. For the first time in its history, shareholders had no say as to whose names would be on the company slate. Last year, in a change from usual practice, regional nominees for the board (Chip Morse and Don LeClair from Massachusetts) were defeated at an annual meeting. Their defeat was attributed to an organized effort by the majority group of shareholders who were and are against exploring the option of a sale of the branded business.

This year the nominees were selected from those who submitted applications by a screening committee composed solely of sitting Board members. There was no input from shareholders and no candidate forums.

An alternate proxy has been sent to all Ocean Spray shareholders. The cover letter, dated December 27th, is from former Board members David Mann (MA.) and Eric Jonjak (WI). They offer a slate of four individuals who they say will "return the focus of Ocean Spray's business decisions to the effects on the growers, rather than accepting a business plan that seeks to save Ocean Spray by sacrificing many of its growers."   CONTINUED

 


Op-Ed

Burn the Surplus

by Russ Lawton

12/28/00 -- In order to eliminate the surplus and save the growers from certain extinction, the growers need to make some tough decisions and take on the burden of getting rid of surplus. If the grower thinks the handlers are going to "market" their way out of this surplus situation, with a little help from the C.M.C. and 25% marketing orders, we will be getting $10.00 cranberries for the next five years. I don’t believe many growers can survive two more years of $10.00 cranberries; I know I can’t. I won’t watch a business that’s not profitable destroy me personally, even though I still love the business and would miss it. CONTINUED


John Swendrowski has responded to Decas' criticism of Northland's subsidy payment on the Forum, you can read this HERE.


Decas suggests Hawthorne's participation is necessary for a productive meeting on the future of cranberry industry

"There is a blueprint for survival that already exists. It cost Ocean Spray growers a lot of money, and it is called the Bain Report... Let us hope and pray that the lawsuit by Ocean Spray growers, designed to force Ocean Spray out into the open, will succeed. Therein lies the realistic way to solve Ocean Spray’s problems and, with that, the problems of this industry."

12/28/00 --  The latest information available to Stressline is that John Wilson and Jack Crooks will attend the Cranberry Market Outlook Seminar on January 4th representing Ocean Spray. Decas has informed Stressline that he believes Ocean Spray CEO Robert Hawthorne's participation is necessary in order for there to be a productive meeting. According to Decas "Mr. Hawthorne, and not some programmed spin-master, can address the questions that you may have and that I certainly will have." CONTINUED


FSA
Information

Cranberry Marketing Loss Payment ($5.00/barrel)

12/26/00 --  The FSA staff in Washington D.C., responsible for writing the rules for the marketing loss payment, plan to have a certification form out to each grower by January 1, 2001. This will be done concurrently with publishing of the rules and comment period for this program.

Every grower should receive a certification form for each Cranberry Marketing Committee unit. The Cranberry Marketing Committee has reported your 1999 production to the FSA staff in Washington and this will be the production figure listed (up to 16,000 barrels) on your certification. You will have the opportunity to correct the production figures if they are incorrect but you will need to provide documentation to verify your production. Washington staff are planning to have the checks issued in January.


Editorial
Pictoon

Click to enlarge


12/24/00 Failing farmers learn to profit from Federal aid, in N.Y.Times "Republicans have been reluctant to criticize the swelling farm aid programs because a majority of the money has been sent to states that traditionally send Republicans to Congress."

12/22/20 Revised Agenda Cranberry Market Outlook seminar scheduled for Jan. 4, 2001 in Plymouth.

 


 

 

Op-Ed

Volume regulations for 2001: What a deal

by John Decas

12/27/00 -- Volume regulations for 2001, including the John Swendrowski Cranberry Marketing Committee proposal as presented on the Cranberry Stressline (see below), will be debated at the CCCGA meeting at the Plymouth Sheraton on January 4 at 1:00 p.m. I look forward to participating in the discussion and presenting my opinions on these matters, and challenging John Swendrowski and Rob Hawthorne on theirs.

The bottom line of the John Swendrowski proposal is, in essence, the same as Rob Hawthorne’s proposal (strange bedfellows), both of which can be summed up in one sentence: You dump the berries for which you have a market, and we will dump the berries for which we have no market and that we cannot afford to store.

What a deal.

Mr. Swendrowski’s Stressline op-ed piece places great emphasis on what is "…in the best interest of the growers…". His concern for the growers is expressed several times in his article. Interesting, in view of the recent revelation that Northland (single entity) is somehow exempt from the 16,000 barrel cap under the USDA direct payment to all US growers. Northland will get over $1 million, while all other growers will get about $5/barrel, with a cap of about $80,000 for growers who grow more than 16,000 barrels. The Northland windfall comes directly out of the pocket of every US grower, both Ocean Spray and Independent, by reducing available funds by over $1,000,000. It sure pays to have a Washington lobbyist.

Contrary to Mr. Swendrowski’s article, Northland did nominate a Northland candidate for the CMC, and that candidate received the most votes. The USDA, however, did not validate this nomination because it was achieved by proxy votes that were not acquired by Northland in a manner that the USDA deemed appropriate and not in accordance with USDA rules and regulations. The USDA ruling followed several complaints by growers that their proxies were acquired under false pretenses.

Another nomination process was recently conducted, and it was at this time that Northland chose not to participate.

I would urge all growers to attend the January 4th meeting.


Op-Ed

Read the dialogue with John Swendrowski on
 
The Forum

Stay focused on the purpose of the CMC and take actions that are in the best interest of growers, not handlers

It is time for us to stand united as growers, not as pawns of our handlers. We need to take actions that will increase the grower price regardless of the results to our individual handlers. The only power that we ultimately have as growers is our ability to invoke a CMC action that will force the handlers to pay a reasonable price for our fruit.

by John Swendrowski

12/22/00 -- We will soon begin debate on a Marketing Order for 2001. Currently, two proposals are being advanced to the growers. Ocean Spray is recommending a 35% set-aside and a group of handlers is advancing another option.

As growers we have a tremendous power available to us through the CMC to limit supply and thus increase price. We must not waste the power because of handler driven differences. Together as growers, we must stay focused on the purpose of the CMC and take actions that are in the best interest of growers, not handlers.

Once again, I wish to point out that whether we like it or not, the supply vs. demand equation is an industry issue and we will never solve the issue by pointing fingers at each other. The purpose of the Marketing Order is to shift control of the supply side to the farmer grower. It is an extremely powerful tool with an end goal of increasing the grower price per barrel if properly used by the grower. CONTINUED


On bog reservoirs and cannibals

12/21/00 The Middleboro Gazette continues its thorough coverage of issues related to the cranberry industry with two very different items in today's edition. The front page banner headline reads "Residents blame bog reservoir for dry wells" proving that despite the cranberry crisis and controversy regarding the lawsuit against Ocean Spray, there are still difficult matters that come up in the best of times and the worst of times. On the Opinion page, there's a Letter to the Editor entitled "Ocean Spray's Cranberry Cannibals" by Middleboro resident John Selzer. Selzer retired from Ocean Spray in 1998 after working there for sixteen years. He began there as a machine operator and became a certified waste water operator. He told Stressline that he felt that Ocean Spray wasn't the only "country-club or we-they organization in relationship to a snobbish, self centered, contemptuous of underling's attitude," but that he thought you you could use their Lakeville based personnel "in a training film on the subject." Read letter HERE.


Quote:

"Ann Veneman is from a high-tech agricultural state where fruits and vegetables are more important than the Heartland’s corn and soybeans. More often than not the Agriculture Secretary comes from the Corn Belt with a Californian holding the number two Deputy Secretary spot in recognition of California’s importance in the nation’s overall agricultural scheme." Jim Phillips, Progressive Farmer

Editorial

The berry, not the wave

12/17/00 Before there was an Ocean Spray, or an American Cranberry Exchange or a United Cape Cod Cranberry Company for that matter, there was an edible red berry indigenous to what is now the United States. The Chippawas called it a'ni-bimin, the Alogonquin called it atoqua, and the Naragansetts called it sasemineash. Native Americans ate it raw, or mixed with maple sugar. Even school children today are taught about how Native Americans made it into pemmican. (The American Cranberry by Paul Eck)

Now a few cranberry growers seem to believe more in an entity called Ocean Spray than they do in the extraordinary little cranberry. There's nothing wrong with nostalgia for the cooperative that had its humble beginnings in 1957 when the major cranberry companies of the day came together to become Ocean Spray, Inc.  But Ocean Spray is nothing more than a company, which has like all companies, a legacy based on people and their accomplishments. The company is still a construct made real only by legal agreements. CONTINUED


12/21/00 California Farm Bureau Federation applauds Veneman appointment as Sec. of Ag.

12/19/00 Cranberries 2010: Point and counter-point from the Forum on the future of Ocean Spray and the cranberry industry

12/19/00 Mass. Cranberry grower wins environmental case

Profile of Stressline in the Dec. 2000 Business Journal of Southeastern Massachusetts

Smaller berry crop good news, in the 12/15/00 Wisc. Rapids Daily Tribune: "Northland Cranberries said it expects to receive about $1.1 million before the end of fiscal 2001 from that assistance program..... payments will be issued no earlier than spring. The USDA is still writing the rules...  (the program) still needs regulatory approval." 

Cranberry Marketing Committee
report on promotional activities in  Japan and Germany

Previous articles on the Lawsuit against Ocean Spray

Cranberry Stressline breaks the story

Press release from the Plaintiffs

Links to media coverage of the story

Editorial on the lawsuit

Middleboro Gazette Article which sumarrizes the salient points in the Complaint 

An Opinion piece published in the Middleboro Gazettee, titled "The Case Against Ocean Spray" by Hal Brown can be read HERE.

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