New survey to go directly to USDA3/23/01 Six growers who support a 4.0 million barrel marketable quantity, which they contend will eliminate the surplus in one year, have initiated a marketing order preference survey which will be mailed directly to the USDA. The growers are Doanne Andresen, MA; Dick Ducklow, WI; Gary Jensen, WI; Russ Lawton, MA; Linda Rinta, MA; and Dick Teske, WI. A letter has been sent to approximately 1,600 United States' cranberry growers asking them to review a packet of informational material promoting their viewpoint, and send a survey directly to Ken Johnson of the Agriculture Marketing Service at the USDA expressing their preference for one of the following three choices: a volume regulation of 4.0 million barrels marketable quantity including fresh fruit; recommendation of the Cranberry Marketing Committee of a volume regulation of 4.7 million barrels marketable quantity of processed fruit with a fresh fruit exemption; or no marketing order for 2001. In a March 11th OpEd, Gary Jensen, a co-signer of the letter, wrote that "an overwhelming majority of growers have voted, through surveys that were conducted by various grower's associations throughout the country and by a show of hands at the Wisconsin Rapids meeting, that they wanted a marketing order that removes the entire surplus this year. The problem is, their votes do not count in this atmosphere. With the exception of Northland, the handlers have taken it upon themselves to decide how and when this surplus situation will be resolved. In doing so, they have ignored their own grower's wishes and concerns. The question that now remains is, what if anything, will the growers do about it?" This survey initiative appears to be an answer to Jensen's question. However, there is no guarantee that many growers who support either a marketable quantity of 4.7 million barrels, or no marketing order at all, simply didn't send in one of the previous surveys. This survey gives them the opportunity to voice their opinion. The results will be tabulated and considered by the appropriate officials at the USDA. According to another letter co-signer Linda Rinta, "this will be a way that growers can express their preference to the USDA no matter what it is. No handlers or growers will see the names on the surveys." According to Rinta, the survey allows growers to be heard and be counted by the USDA and nobody else. Requiring that growers identify themselves on the survey assures that nobody attempts to influence the results by sending in more than one survey. It adds credibility to the results. It has been suggested that a majority of Ocean Spray growers support the 4.7 million barrel marketable quantity; but that they didn't return the previous surveys. This is an opportunity for them to express their opinion directly to the USDA. Dick Ducklow, another co-signer, said that "it is my feeling that if we do not resolve this problem in one year there will be a significant number of cranberry growers, both Ocean Spray and independents, that will be out of business. I know that some of my neighbors who have confided in me that are in this particular situation. I have discussed this with a number of bankers who say they can handle up to one year before they are forced to take drastic steps. I believe in the economics projections from Dr. Ed Jesse who predicts that the return for the 2001 crop will be somewhere in the neighborhood of $32 bbl. with a 4.0 million bbl marketable quantity." Text of letter sent to approximately 1600 cranberry growers Addendum: SIGN YOUR SURVEY Be sure to sign your survey in the name as it appears on your envelope so that it will be recognized and tabulated as a grower survey. Unsigned surveys may not be counted. March 22, 2001 Dear Grower: The Cranberry Marketing Committee (CMC) passed a proposed marketing order specifying a marketable quantity of approximately 5.0 million barrels for the 2001 crop on March 5, 2001. The growers in attendance at the meeting by a show of hands overwhelmingly supported a marketable quantity of 4.0 million barrels for the 2001 crop. In surveys conducted by the WSCGA and the CCCGA, the growers indicated they wanted a sufficient cut in the 2001 crop to remove the surplus in one year and try to get grower prices at least up to the cost of production. Dr. Ed Jesse, public member of the CMC and an economist from the University of Wisconsin has modeled the amount of 2001 crop necessary to eliminate the surplus and return grower returns to a per barrel level that will cover their cost of production. That amount was 3.5 million barrels. After much debate, in the spirit of compromise, 4.0 million was established as the "get rid of surplus in one year" crop for 2001. A subcommittee of the CMC recommended, prior to the March 4 and 5 CMC meeting, that 4.0 million be the target for 2001. Five handlers met on February 28, 2001 and again on Friday, March 2, 2001 by telephone. The meetings were not attended by the USDA, the CMC or by growers. Apparently, the handlers at these meetings agreed to no less than a 5.0 million barrel marketable quantity. (The final recommendation of the CMC was 4.7 million barrels, with a fresh fruit exemption that equates to approximately 5.0 million barrels.) Based on the enclosed "Cranberry Industry Information" the "passed" marketing order of 5.0 million barrels results in a "set aside" of only 13% as compared to the actual projected crop. The 4.0 million barrel proposal results in a 30% "set aside". Do we want to continue with such small marketing orders for several years while we end up going out of business? Enclosed is a "Cranberry Price and Supply Projections" which was prepared by Dr. Ed. Jesse. It is ironic that the CMC’s mission is to assist cranberry growers but the real help it provides seems to go to handlers. Please help cranberry growers get rid of the surplus in 2001 and begin to return cranberry prices to a reasonable level that covers growing costs. We ask the following:
Growers, this is your opportunity for your voice to be heard as a grower at the USDA regarding this Marketing Order--they are listening. Thank you for taking the time to return control of our industry to the grower. Regards, Concerned Growers
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