August 30, 2005

 Dear Tomato Grower:

 PTAB Delivery Report:

PTAB projects delivered tons to reach 6,702,876 by Sept 3 which makes 2005 look a lot like 2003 and running 6.5% behind the previous 5 year average. Based on feedback that yields are improving across the state we should see production exceed ‘03’s 9.25 million. The keys remain with Sept/Oct weather and how the late season fruit was affected by the 100+ degree weather.

 CTGA Grower Meeting – Westley:

 Thirty-two growers met for lunch August 26 to discuss 2005 and prospects for 2006. The largest concern was the rampant input inflation. Based on current prices for diesel, fertilizer and projected transplant seed costs, Stanislaus County growers are faced with the following increases as compared to two years ago:

           Cost/Acre                   2003             2005               Change

Diesel:                        $ 76.50           $ 204              $ 127.50

Seed:                          $ 30.15           $  81*              $  50.85

UN32:                          $ 60.94           $  85               $  24.06

 Total                                                                            $ 202.41

 Average Stanislaus Co. Yield ’00-’04                              38.24

 Total Cost Increase per ton                                           $5.29

 *Based on projected increase for 2006 crop

 UN 32 basis $195 per ton to $270 per ton; Diesel basis $0.90 in 2004 and $2.40 for ’06; Seed basis $335 per unit to $900 per unit 

Harvest, transplanting and greenhouse fees should all go up. Also growers should think long and hard before working ground and investing in 2006 without a commitment on what they will be paid. 

NBC Nightly News: 

Bruce Rominger, Winters based CTGA Secretary/Treasurer and Don Cameron, Helm based CTGA Chairman were interviewed by NBC along with Pacific Coast Producer’s Plant Manager, Craig Powell regarding the impact of higher energy cost on the processed tomato industry.  The 2 ½ minute story included footage of harvesting and processing will be shown some time between now and Labor Day. We’d like to thank Craig, PCP and Tony Turkovich for helping with this story.

 Changes in the CTGA Membership Agreement:

 The Board of Directors agreed to implement the following changes in the CTGA membership effective the 2006 calendar year.

• Members will receive regular market input on offers and transactions
• Individual members are free to negotiate with any canner for single or multi-year agreements as long as they protect the terms of trade and share a copy of their agreement with the CTGA. The grower and canner’s identities will remain confidential, but the pricing information will be available for CTGA Members
• For individual CTGA growers that don’t wish to negotiate themselves, the CTGA will represent them for pricing discussions. Growers will be grouped regionally to focus on issues that affect a specific geography

The advantage for CTGA members is as follows:

·        Flexibility to negotiate to meet individual needs with the support of more tonnage and CTGA’s Capper-Volstad protection which allows growers to legally discuss price

·        Ability to benefit from geographic advantages

·        Access to current market data which should reduce “money being left on the table”. Elimination of an annual price which caps potential revenue

·        Protection under CTGA’s master contract’s terms of trade

 Other Changes: 

• CTGA Directors signed a “Code of Conduct” which addresses concerns regarding conflicts of interest
• Members will be asked to vote on reducing the Board size from 24 to a more flexible 9 – 15 Board Members.
• The CTGA will sharply reduce the amount of information that its shares with non-members

 New Members:

 Pleased to report that the CTGA added members in the North and South representing 3,500 acres.

 Field Tomato Price vs Paste:

 A Colusa County member asked for a historical comparison of the field price vs the paste price. You can draw your own conclusions. 

  SB 281 – Fresh Start Pilot Program:

 Recent legislation has been introduced by Senator Maldonado which will encourage the consumption of fruit and vegetables by students in school lunch programs. Unfortunately wording has been added to the bill which states that no more than 10% of the money can be spent on processed fruits and vegetables with no funding for canned or juice products. This means that processed tomatoes are excluded completely and by implication an inferior product to fresh.

 Please contact your legislator and Governor Schwarzenegger’s office and advise them of your opposition to the exclusion of processed tomatoes and preference for fresh. It’s ironic since processed tomatoes are healthier, shelf stable and cheaper. The CTGA did send letters already and is working with a coalition of processed fruit and vegetable growers through the Agricultural Council.

 Questions or comments – please call (209) 478-1761 or e-mail rdsiragusa@ctga.org.

 Ross Siragusa

| Tomato Bulletins | Press Releases | Editorials | Archives |