This industry was built upon respect and mutual trust of the parties to facilitate the commerce of growing, harvesting, transporting, grading and transference of title of 10 million tons of tomatoes on an annual basis.  This has been achieved with a commitment by growers to produce the crop with the understanding that processors would negotiate an agreement with the CTGA for acceptable price and terms of trade.

With few exceptions during the past 50 years, this business practice has served the industry well.  The Association has been able to bargain on behalf of growers to the benefit of both growers and processors.  Growers, acting cooperatively, have brought a measure of balance to the bargaining table carving out terms of trade that address their concerns.  Processors have also benefited by negotiating one contract and knowing that their competitors are paying the same price for tomatoes.

The importance of these business principles should not be underestimated and the Association is making this the cornerstone of its 2003 price proposal.  In recent years we have seen a price level that makes it very difficult for many growers to survive.  In 2003, we must return to a price level that recognizes the costs involved in producing a ton of tomatoes and fairly rewards growers for their investment and risk.

Specifically, the Association is calling for the industry to recognize and incorporate CTGA standard terms of trade in all tomato contracts.  These terms are to include the industry standard terms of payment -- cash at harvest.  The terms of trade as established by the CTGA over five decades and embodied in the Master Agreement are of real, tangible and monetary benefit to growers.

California's processing tomato growers deserve nothing less.

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