From President Mikaelian

Raisin harvest time is here and it looks like we will be able to produce a full supply of raisins for the coming year. What is a full supply of raisins? Over the years, our average sales have consisted of about 300,000 tons. Approximately 200,000 tons are sold domestically and about 100,000 tons internationally. During the past year, our industry sold 355,680 tons of Natural Seedless raisins and was led by extraordinary exports sales. As growers, we delivered 329,288 tons. Fortunately, because of the export sales, this decreased our inventory rather than adding to it. 

 

I mention this because the sliding scale levels are determined by our total supply of raisins, which includes existing inventory plus our production for the year. Less total supply means a higher field price. However, the most important number to raisin growers is our 100% return. One way to get that higher 100% return is with a higher field price. This year’s smaller inventory could lead to that possibility. Another method for a higher return is a higher free tonnage percentage. Last year the industry quickly agreed to an 85% free tonnage. If we had waited, that number would likely have been reduced to less than 80%. At today’s pricing level, 5% free tonnage means an additional $65 in our pockets from every ton we deliver. That is why it is so important that the RBA truly represents our share of the tonnage produced each season.

 

I realize many growers have chosen to sell their grapes to a third party who will make raisins in the field and pay a green price equivalent. Without knowledge of these transactions, it is difficult for us to track our true percentage of the industry. I encourage you to notify the RBA office if you make this type of agreement. Our tonnage determines how many representatives we have on the RAC. More representation means more influence on the Committee.

 

While representation on the RAC is important, the RBA is doing everything possible to make sure whatever is produced during the year will result in the greatest possible 100% return to your wallet. That is what will allow all of us to continue farming raisins. We consider the export program and reserve-pool equities in terms of the “big picture,” with our most important consideration being the highest 100% return.

 

There is a lot of speculation about this year’s field price and percentage. Because each grower’s situation is different, we have stated that the decision whether to sell green or make raisins should be based on the current RBA pricing as a starting point which is $1,310 per ton with a projected free tonnage of 85%.  

 

So, what is a full supply of raisins by today’s standards? It really is whatever the industry is able to produce. That is precisely why there is a California Raisin Marketing Order – to maintain stability despite our production every season.

 

Thank you for your continued support of the Raisin Bargaining Association and good luck with your harvest.

 

Harvest-Time Reminders

LABOR EMPLOYEES

Nisei Farmers League reminds us: Employees working on the 7^th consecutive day of a workweek must be paid overtime on that 7^th day, including those doing piecework. This could apply to you even if you are using the services of a Farm Labor Contractor.

 

CROP INSURANCE

If you have signed up for raisin crop insurance, remember your grapes must be picked and on trays by the following dates:

September 8^th                        North-south rows

September 20^th                      East-west rows/hand harvest

September 25^th                      East-west rows/machine harvest

RBA CROP ESTIMATE SURVEY

Enclosed is our annual crop estimate survey. Your input provides the RBA with additional information to form our crop estimate in October. A postage-paid envelope is included for your response. Thank you in advance for your participation.

 

2008 Trade Demand

The Raisin Administrative Committee (RAC) met on Friday, August 15, 2008 to determine shipments and deliveries for the past season and recommend trade demand tonnages for the 2008 harvest season.

Deliveries for the past season were:

 

                Natural Seedless                  329,288

                Dipped Seedless                      3,225

                Golden Seedless                     17,626

                Zante Currants                         3,347

                Sultanas                                          93

                Muscats                                           3

                Monukkas                                    280

                Other Seedless                          5,231

                Other Seedless, Sulfured            687

 

Shipments were strong as well, with a 16% overall increase in raisin movement that included a 43% rise in exports and a 2% rise in the domestic and Canadian markets. It is obvious that exports are what drove 2007 sales; the greatest increases coming from the European marketplace. California’s product was able to fill the void created by unfavorable weather conditions suffered in Greece and Turkey during their harvest seasons.

 

However, the 2008 marketing season could very well see a return of a normal crop from Greece and Turkey and severely impact our export sales. The RAC recommended a trade demand of 244,463 tons which was determined by using 105% of last year’s trade demand of 232,822 tons. This action releases an adequate supply of raisins into the marketplace and helps to maintain market stability. The trade demand recommendation has been forwarded to the USDA in Washington for approval after a near unanimous vote from the RAC. Upon approval from Washington, the next step is to determine the preliminary crop estimate by October 5, 2008. 

 

The RAC also voted to extend the export program an additional month through October at 2008 prices, and the 2008 Zante Currants will be 100% free.

 

☼ In Our Spotlight ☼

Thank you to all those who travelled up to Sacramento to participate in the Water is Life rallies with Governor Schwarzenegger. We heard that nearly 1,000 people attended each one! The RBA was one of the many sponsors who contributed to provide buses for the trip. Hopefully our lawmakers are listening and will understand the seriousness of our valley’s water crisis.

From the Fields

Our Grower Rep Steve Spate reminds us:

Paper tray burning is still allowable this season with a valid agricultural burn permit. Important items to remember:

 

       Call in advance for permission to burn. (800) 665-2876 or go on-line to www.valleyair.org

       Refrain from burning on any district designated Spare-the-Air-Day.

       The burn site must be attended at all times.

       Trays must be burned in a container such as a wire cage with a mesh cover to avoid escaping embers.

       Do not burn on windy days.

       Avoid burning near roadways where smoke might cause a hazard to drivers.

       Do not cause a smoke nuisance for your neighbors.

Equally important is working with your Farm Labor Contractor to fulfill all labor requirements such as minimum wage ($8.00 per hour) and time cards, toilet facilities, SB-198 safety training, current postings for viewing, and this season especially, heat stress training. 

 

There is a strong focus on and enforcement of heat stress compliance. In order to comply with the state’s heat stress regulations you need to:

ü       Provide access to clean, cool water.

ü       Provide access to shade.

ü       Provide training for all employees who work outdoors.

ü       Provide written procedures.

It is in your best interest to make sure your Contractor is keeping up with these requirements. The RBA has been a sponsor of Cal/OSHA heat stress training for Farm Labor Contractors. We encourage you to ask your Contractor to provide a certificate of completion in this heat illness prevention training. Good Luck with your harvest!