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May 6, 2008

Dear Tomato Growers:

· Scattered reports of frost damage and very dry conditions mar the “rosy” outlook

· CTGA and John Deere Extend Ag developing tools for CTGA members

· CTGA hires Fresno State to develop comparative crop model

· Concerns raised over Curly Top Virus prevention efforts

· CHP issues another annual exemption from new load securement regulations

· Seed 2007 market share graph corrected showing Orsetti as opposed to Bos Halley

Just when ’08 was off to “one of the best starts ever”:

· April 20 frost caused spotty damaged from as far south as Firebaugh with the most damage in Colusa

· No fields lost in Colusa, but upwards of 2000 acres were affected which will cause a split set and drop yields. Some growers state that they’ll be lucky to get 35 tons/acre which won’t cover costs

· Frost damage in Merced, San Joaquin, Stanislaus County greenhouses set growers back as they have to wait for replacement plants or “burned” plants to grow through the damage. Some growers opted to increase the total plants per acre whereas others are switching to direct seed.

· High wind on top of very dry conditions will stress plants and increase costs.

· A few weeks ago, most processors felt that they would be able to get an early jump on the crop, but that idea is history. July 5 – 10 is currently the prevailing view from the south.

Bottom line – the crop is getting smaller

Extend Ag Tools for CTGA Members:

The CTGA Board is considering offering Extend Ag services at no cost to its members; includes actual delivery reporting with extensive sorting capability:

· Load by load quality analysis priced against grower’s contracts

· Yield data by variety, field and delivery position

· Mobile capability with reports sent to smart phones

· Automatic alerts triggered by parameters set by growers

For each grower this is a good business tool, but the data aggregated with data from other growers would increase the overall value to CTGA Members. Among the benefits, please consider the following:

· Make variety and contract choices based on what performs best in a specific region

· Overtime create benchmarks for revenue per acre

· Objectively define late season premiums

In exchange for covering Member’s Extend Ag fees, the CTGA would need growers to grant permission to PTAB to release the data to Extend Ag. Safe guards are in place to keep grower data confidential.

The CTGA Board’s goal is to provide information to members that will let them make better-informed decisions, while strengthening its overall bargaining position. This would clearly meet both goals. The data is there, we just need to grab it.

Please advise the CTGA if this would of interest to you.

Comparative Crop Model:

CTGA is working with Fresno State to develop the following:

1. To develop a representative farm model for a San Joaquin Valley farming operation with the alternative to produce processing tomatoes, cotton, corn, wheat, safflower, alfalfa and melons.

2. Use the models to evaluate the farm level economic impacts of raising each of the alternative crops under various scenarios, concerning the value of relevant key input variables such as energy and fertilizer costs and general economic factors (interest and inflation rates). In addition, the models will provide a comparative return to water use.

3. The model would take into consideration yield volatility and different market conditions

The project’s goal is the creation of an objective tool that would be useful for price discovery during annual bargaining. For example, if wheat is worth $300, corn $200, safflower $500 and alfalfa $240, what should the tomato price be when adjusted for yield risk and water availability? Stay tuned…

Curly Top Virus Prevention Program:

The CDFA is negotiating with Department of Fish and Game for the renewal of its license to spray beet leafhoppers. The license was not renewed due to concern over two endangered species; kit fox and kangaroo rat, which inhabit much of the affected area. Due to lapsed license, the spring spray program did not occur; hopefully the issue will be resolved for winter spraying.

There is some concern that there is a push from environmentalists for an outright Malathion ban, which would have much broader implications than just the curly top program.

CHP issues Exemption:

The CHP followed through with a waiver on new load securement regulations. The waiver will expire April 30, 2009 or when the FMSCA issues new regulation, whichever comes sooner. Like last year, tomato haulers will need to issue monthly safety reports in order to receive the waiver. The industry should use this time to study tomato tub safety so it has a stronger leg to stand on when this issue resurfaces.

Correction for last Tomato Bulletin:

In last month’s issue, a chart mislabeled Orsetti’s name as Bos Halley. We regret the error and here is the corrected chart:

Questions or comments please call Ross Siragusa at 916-925-0225 or email rdsiragusa@sbcglobal.net.