Volume 39, NO. 33
August 18, 2016
Lemons – Chilean lemons are still abundant on both the East and West coasts. Pricing for Mexican fruit (see
above) was reported by USDA, but the McAllen, TX market is anywhere from $1 to $4 lower. FOBs were down
this past week by about $0.75 per carton. Buyers and consumers still want the California quality, but Mexico
wants a share of the market.
Some small volumes are projected to be harvested from the Desert late in August. DII shippers expect to have
their storages worked down by the end of September, thus making way for the desert lemon shippers.
DII fruit quality remains fairly good, despite all of the tree ripe fruit that has been picked and shipped in recent
weeks.
Valencias – Overall, the Valencia market is steady. Pricing was unchanged for the most part; however, total
movement improved by about 3%. Utilization for Fancy grade is 35%, 29% for Choice grade, and 36% for
products. The crop is 60% harvested.
VALENCIA MOSTLYS
LEMON MOSTLYS
Choice
8.75-9.25
8.75-9.75
9.25-10.25
10.75-11.75
Size
75
95
115
140
Fancy
37.00-39.00
41.00-43.00
41-00-43.00
39.00-41.00
Choice
23.00-26.00
25.00-29.00
25.00-29.00
27.00-29.00
Mexico Fancy
Mexico
Choice
88
Fancy
9.25-10.25
12.00-13.00
11.50-12.50
12.50-13.00
29.00-31.00
26.00-28.00
24.00-26.00
24.00-25.00
21.00-23.00
113
138
163
12.75-13.25
12.75-13.00
11.00-11.00
12.00-12.50
11.50-12.00
8.70-8.70
165
200
235
34.00-36.00
28.00-29.00
26.00-27.00
31.00-33.00
26.00-29.00
24.00-25.00
24.00-25.00
22.00-24.00
19.00-22.00
19.00-20.00
Size
48
56
72
CCM Staff Member Chris Stambach to Re-Enter Financial Industry
Earlier this month CCM Director of Industry Relations Chris Stambach notified CCM of his intent to accept an
offer from the financial community and re-enter the lending and loan appraisal world. His last day with Citrus
Mutual is Friday, August 19.
Grower Meetings Focus on Stopping ACP Transport
This week, CCM held a series of meetings in Kern, Tulare, and Fresno counties to discuss strategies for preventing
the spread of ACP and HLB. The meetings were moderated by CCM President Joel Nelsen and included panelists
Nick Hill, Citrus Pest and Disease Prevention Program; Victoria Hornbaker, Citrus Program Manager with the
CDFA; and Dr. Neil McRoberts, Associate Professor of Plant Pathology at UC Davis. We were very pleased with
the level of input from the audience members and believe a united industry will be the strongest line of defense
against both ACP and HLB.
Discussions at all three meetings focused on what the industry can do to stop the movement of plant material and
ACP, particularly from Southern California to the Central Valley. According to research out of Florida, ACP
populations are greatest within 6.5 miles of major traffic corridors. ACP detections along Highway 99 and
Highway 65 in the Central Valley indicate this model is also true in California. It’s also evident based on the
number of psyllid detections at juice plants and packinghouses that the industry is contributing to the spread of
ACP. According to panelist Dr. Neil McRoberts, the Tehachapis are a natural barrier over which psyllids will not
travel. The only feasible way psyllids are coming over the Grapevine is by way of human transport – either by the
general public, in loads of fruit, or on equipment.
At each meeting, growers proposed solutions ranging from a wet wash standard for moving fruit, spray and move
requirements, tarping loads, employee education and mandatory area-wide treatments. Some people preferred
having options r while others simply wanted to know what they needed to do. It was agreed that the most effective
strategy will consider the level of psyllid infestation in the production area and tailor mitigation requirements
depending on where the load is transported to for packing. New ideas and concerns were raised at each meeting,
but one thing stayed the same - everyone in attendance was passionate about stopping the spread of ACP and was
willing to do what it takes to stop HLB from destroying the California Citrus Industry.
Southern California growers are urged to attend meetings in Ventura, Riverside, and Coachella in September. For
more information, go to http://citrusinsider.org/event-registration/?ee=30.
World Citrus Production – By the Numbers
Orange production continues to drop according to USDA because of HLB issues in Florida and Brazil coupled with
climatic challenges in Brazil and Mexico. One early season forecast for the 2016-17 Florida orange crop is 60.5
million boxes - 29.5 million for early and midseason varietie, and 31 million boxes of Valencia oranges. This is a
decrease of 21 million boxes from this past season, nearly a 26% reduction. It was noted that there has been
significant post-bloom drop observed in many groves. According to the USDA, final 2015-16 production was 81.5
million boxes. With both Florida and Brazil (14% decline) forecasting smaller orange crops, a global shortage of
orange juice is forecast beginning next spring. No matter what the final number is for next season, HLB is having
a devastating impact on Florida citrus production.
According to an online produce trade publication, the Chinese orange plantation owner Asian Citrus Holdings
reported significant losses due to Citrus Greening. Their orange production fell 75.5% from the prior year. They
have removed a reported 619,213 orange trees from production.
EU production will be up inasmuch the previous season was weather challenged. South Africa production is down
5 percent. China and Egypt report higher production for oranges as does Turkey. The former, however, is
beginning to feel the effects of an HLB spread in major producing areas. Mandarin numbers are generally higher
across the globe as are grapefruit numbers. Argentina and the United States will report larger crops once the
season concludes.
Packinghouses Using Cropfume for Australia Exports may need to
be licensed
The Tulare County Ag Commissioner has sent a notice out to packing houses reminding them of the requirements
for treating navel oranges and mandarins with CropFume.
The 2016-17 protocol for shipping navel oranges and mandarins to Australia requires packing houses to make
CropFume applications. The Commissioner’s office would like to remind shippers that these are considered
institutional applications and that regulations require having at least one designated employee who has a
Qualified Applicator License (QAL) and Pest Control Business license when fruit is not owned by the packing
house.
The Commissioner’s office has scheduled a special QAL exam with the Residential, Industrial & Institutional (A)
Category: Wednesday, September 9, 2016 at 8:00 a.m. at the Tulare County Ag Commissioner’s Building; 4437
South Laspina Street, Tulare, CA 93274.
Additionally, an exam preparation class has been scheduled at the Visalia Convention Center on September 8,
2016, at 8:00 a.m. For more information call the Ag Commissioner’s office at 559-684-3352 or visit
https://pesticideguides.com/event/applicator-exam-prep-13/
Registration forms at are due at the Ag Commissioner’s office by August 26, 2016. The exam fee is $180 for a new
QAL or $50 for current Qualified Applicators who only need to take the category “A” exam.
Decision 16
Voter turnout this November will affect agriculture on many fronts. For the U.S. Senate, there are 34 seats up for
grabs.24 Republican incumbents have to defend their seats while only 10 democrats are facing a challenging race.
Guess who has a better chance of gaining seats? Presently, there are four marginal seats leaning to the Democrats,
according to the polls. In the California Senate race, there is a liberal Democrat running against a liberal
Democrat with some moderate tendencies. One candidate, Loretta Sanchez, has expressed a willingness to affect
existing water policy and an interest in modernizing the ESA. Before California polls close there are 10 states that
could dictate the national outcome. They are Nevada, Colorado, Pennsylvania, Virginia, North Carolina, Ohio,
Wisconsin, Florida, New Hampshire, and Iowa. There will be hoopla before, during, and immediately after the
debate but most prognosticators doubt minds will change. What will direct voters’ thinking are major unforeseen
events – terrorist activities, Russia, economic issues, or domestic shootings. Healthcare costs and tuition costs are
two domestic economic issues. Everybody is unhappy with government and few are happy with the Presidential
choices. So who will the populace vote for? One is untrustworthy and the second is a bit volatile. Messaging
themes after Labor Day are going to focus on stability and volatility. Next month - more on how CCM is hoping to
affect state legislative races.
Citrus Industry Hosts USDA Official for Discussions about Trade
Jonathan Cordone, Deputy Undersecretary for USDA visited with citrus industry leadership this week to discuss
trade and, specifically, the Trans-Pacific Partnership (TPP). Additionally, the conversation focused on how USDA
can advocate on behalf of agriculture to agencies such as EPA, Department of Interior, and the Department of
Labor. CCM Chair Kevin Severns and Vice Chair Curt Holmes were joined by Jim Sebesta, Sunkist, Melissa Poole,
Wonderful, and Jim Marderosian and James Sherwood of Bee Sweet Citrus.
Marderosian led the Undersecretary on a tour of the Bee Sweet packinghouse, highlighting new technology
designed to sort, grade and pack California citrus. Cordone learned more about the industry’s perspective on why
trade with countries such as Chile or Australia is positive, whereas bringing fruit from an infested area such as
Argentina creates a risk we are not willing to accept. Joining industry leadership were senior members from sister
organizations such as the Fresno County Farm Bureau and the CA Fresh Fruit Association.
World Trade – The Political Side
There are always winners and losers when it comes to comprehensive trade proposals. They have become too
complicated, too broad and often used as a platform for other agenda items. Historically, presidential candidates
express concern about a pending trade proposal primarily because they don’t know whether winners and losers
exist. This year the dialogue is similar with both Presidential candidates expressing opposition to TPP, a proposal
that does make California citrus a winner.
In 2008, then-presidential candidate Barack Obama campaigned for changes to NAFTA. That rhetoric was
dismissed after his election. Today, candidate Donald Trump is against everything that is trade related, calling for
TPP to be renegotiated, for China to be held accountable for a multitude of actions, and for WTO to become a tool
for the United States rather than allowing it to be used as a tool used against U.S. interests. As for candidate
Hillary Clinton, she too has voiced concerned about TPP citing the need for “some fixes”, but generally she has
been much more muted.
Congressional leaders have stated that they will not entertain any trade agenda item during the lame duck session.
That announcement is designed to keep members of Congress facing tough elections in “safe territory” as it relates
to trade proposals. Nevertheless, agendas can and have been changed. While it is an uphill climb, CCM believes
TPP will be heard during the lame duck session unless major changes occur in the Congressional makeup.
T-TIP, the European initiative supported by the Obama Administration, remains extremely controversial in many
circles. CCM is opposed simply because it assures lower tariffs for U.S.-originated fruit destined to Europe. The
major omission, however, is that fresh fruits and vegetables in Europe are subsidized thus eliminating any fair
competition in that market for California grown products. A broad proposal such as T-TIP is simply insufficient
from the perspective of California citrus. We expect little to happen on this proposal until a new administration is
placed in office. Several EU leaders see a benefit to continuing talks, although there is growing opposition from
the rank and file. The British withdrawal from the EU is being argued both as a reason to pursue T-TIP and a
reason to wait.
“Power” Politics Update
Energy issues are not often reported on in the Market Memo yet is a subject that CCM does engage in from time to
time. Proposals to raise rates, reallocate revenues, and legislation reinforcing or enhancing existing law is the
concern of the collective agricultural industry, united under the banner of the Agricultural Energy Consumers
Association. The AECA was formed several years ago under the leadership of California Citrus Mutual, California
Cotton Ginners and Growers, and others. CCM remains an active supporter.
Recently, PG&E has asked for a modest increase in Ag rates. However, the utility is now proposing significant
changes in the Ag rate design to reduce the current 13 rate schedules to 3. Negotiations on the latter, to-date have
been more form over substance.
The effort to extend the cap and trade legislation, AB 32, signed by former Governor Schwarzenegger is an issue of
interest for this Administration and continues to create legislative controversy that AECA, CCM, and others are
focused on. Meanwhile, others in the legislature continue to believe that more efficiency for energy use can be
derived in the Capitol rather than by business and the best way to achieve that goal is by legislation, regulatory
expansion, and fees.
Trump Names Ag Advisors
A release earlier this week by the Trump campaign team announced the candidate’s Agricultural Advisory
Committee. Nope – we’re not on it! The members are primarily elected officials from commodity farm states,
some state Agricultural Secretaries, or their equivalents, a number of farmers and a few association executives.
Representing California will be: (drum roll please) for CDFA Secretary A.G. Kawamura; John Kautz, Ironstone
Vineyards and former chair of the State Ag Board; and Tom Nassif, President Western Growers Association. “The
men and women on the committee will provide “pioneering new ideas to strengthen our nation’s agricultural
industry as well as provide support to our rural communities,” according to the release. “Mr. Trump understands
the critical role our nation’s agricultural community plays in feeding not only our country, but the world, and how
important these Americans are to powering our nation’s economy.”
Mark your Calendar for the 20th Annual Kick-off Classic Golf
Tournament
Finish your week on a high note at the 20th Annual CCM Kick-off Classic Golf Tournament on Friday,
September 16th at the River Island Country Club. For tournament details and sponsorship opportunities,
go to www.cacitrusmutual.com/2016-golf-tournament