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"A flood of red ink threatens cranberry bogs: Growers face a big surplus, falling prices"

 

The April 17/18, 1999 Patriot Ledger (Quincy, Massachusetts) featured two front page long, detailed articles in the Quincy, Mass. At least in the cranberry growing areas, the crisis in the industry is now public knowledge and is impossible to ignore.

Grower Jack Angley when asked about the falling prices is quoted in the Patriot Ledger as saying "at those prices a farmer's most valuable commodity is his limitless hope".  Cape Cod Cranberry Growers' Association president Jeff LaFleur is quoted, "one of our biggest concerns is that the crisis coincides with the real estate boom, there will be huge pressure from realtors to turn over land for development". Further bad news for Ocean Spray is reported regarding Standard and Poors putting the co-op on credit watch, a step taken while they consider lowering their credit rating.

Joining Tom Bullock and John Decas in the "blame game" (see below), Northland Cranberry founder CEO, John Swendrowski is critical of Ocean Spray for not developing new markets, forcing all the growers to compete for the same customers. The articles note that Ocean Spray will face a much greater debt next year, in part to repay the funds borrowed to buy 85% of Nantucket Nectars. "Loan payments alone will balloon from $1.5 million to $26.5 million..."

Although Northland has been hurt by the surplus, it only obtains about 25% of its berries from contract growers. Still, they are guaranteeing payments $3.00 a barrel over the Ocean Spray price.

 

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