Better shipments mean Better Trade Demand

The California Raisin Industry just completed its greatest sales season in history.  Total shipments of Natural Seedless (NS) raisins for the fiscal year ending July 31, 2010 were up 7% over last year at 356,144 tons.  Export shipments of NS raisins increased to 160,219 tons, which is a healthy 21% increase from the prior year.  Unfortunately, NS domestic movement dropped 3% from last year to 195,925 tons.  This equates to 55% of NS sales going to the domestic market and 45% sold to export markets.  The physical inventory held by packers heading into the new crop season was determined to be 83,143 tons.

 

At a Raisin Administrative Committee (RAC) meeting held on Friday, August 13, 2010, the trade demand for Natural Seedless Raisins was computed to be 297,387 tons for the 2010-2011 crop year.  The high trade demand virtually guarantees that this year’s free tonnage percentage will be higher than last year, and it is anticipated that this year’s free tonnage should be 90% or higher.

 

The European Grapevine Moth 

If you are in the quarantine zone of the EGVM, you must sign a Quarantine Zone Compliance Agreement before your raisins leave your farm. To prevent the movement of the EGVM out of the area, you must also have an inspector verify that the raisins have been dried to an acceptable level. Shipments of EGVM host fruit found to be in violation of the compliance agreement are subject to being held, rejected, destroyed, and any other action at the discretion of the EGVM Project. Contact the EGVM Command Center at (559) 455-2580.

 

Raisin Bargaining

Raisin packers are aggressively contacting RBA growers for their 2010 crop, which is a good situation for the Association.  There have been plenty of rumors and speculation in regards to pricing for the 2010-11 Natural Seedless raisin crop. Based on the fact that raisin inventory levels are extremely low, it appears we can assume the price and free tonnage will be higher this season. Your Board of Directors is currently seeking agreements with our signatory packers to establish the 2010-2011 Natural Seedless and Zante Currant raisin crop prices. We hope to reach those agreements soon and follow with our price announcements. 

    

 

 ☼ In Our Spotlight ☼  

Thank you to all growers in the EGVM Quarantine Zone who have gone out of your way to treat for the moth. There are those in this core area who are being asked to treat multiple times. Growers outside the Zone may not realize the critical role you play in the effort to keep this devastating pest out of our region. If you doubt your importance, just ask a fresh fruit or table grape grower. We are all in this together!

 

 

Estimated Trade Demand Rule

The unusually high trade demand is a result of the extraordinary export sales for the past year.  The industry sponsored Export Replacement Offer (ERO) program has been a major factor in the success of our export shipments.  The ERO program has provided packers with the ability to be competitive in the off shore marketplace and reduce any excess supply of raisins. This industry-sponsored program cannot exist without a reserve pool established by the RAC. 

 

The RAC has recommended that an estimated trade demand (ETD) rule be approved to establish a reserve pool of 10% or less in the event that the 2010-11 crop estimate is less than the trade demand but more than enough NS raisins to sell domestically.  This approval would allow the RAC to create a small reserve pool of no more than 10% to continue funding an ERO program for this year only.  The ETD is currently in a comment period and will be acted upon by USDA sometime after August 23, 2010.  The ETD would only be a tool available to establish an ERO program if necessary to maintain adequate export movement.

 

Paper Tray Disposal Options

Paper tray burning is allowed this year with a valid burning permit. Check your burn permit for all rules to be followed. Trays must be burned in a manner preventing the escape of burning embers and ash. Methods may include the use of a wire cage, a wire mesh screen lying on top of the burning paper, or similar device. The mesh openings should be no larger than ½ inch. Failure to comply will result in a Notice of Violation and a fine. To obtain a permit call the San Joaquin Valley Air Pollution Control District (559) 227-7143 or (800) 555-2876

 

Shredding of raisin tray paper is an alternative in some areas. Using this method, you must adequately incorporate the shredded paper into the soil to prevent accumulation of combustible material in the vineyard rows and along the roadways. As another option, the following companies have tray paper recycling programs.

Mid Valley Disposal (559) 843-2467 and Barios Recycling (559) 233-0922.

 

 

Heat Stress and Safety Reminders

      Required posters, updated and posted

      Minimum wage laws ($8/hr) with time cards showing time and pay (includes piece rate payments)

      Scheduled break periods

      SB-198 safety training program

      Chemical application records by site available for review by workers or inspectors

      Toilet and hand washing facilities (including maintenance records)

      Heat Stress Prevention Plan to include:

                √ Provide shade

                √ Provide water

    √ All employees must be trained in heat illness

    √ Have written emergency procedures

 

You are responsible for making sure that your Labor Contractor complies with all of these rules!