The Fruit Growers News - February 2003


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Vote Yes for USApple Question in Michigan What is it going to take for apple growers to remain in business in the years ahead? We all know for a fact that it will take all aspects of our industry working together. All apple producing states need to have a joint effort in solving industry problems. Growers need to be aware of the big picture concerning our voice in Washington, D.C. I cannot stress enough how valuable the U.S. Apple Association (USApple) is to Michigan growers and, unless you have been involved with the organization, you cannot understand the importance of giving them our support. This is the one organization where all apple producing states work together to voice concerns about the industry and work together to solve them. We as growers cannot take the time nor do we have the expertise to make the necessary contacts to bend the ears in Congress. Probably the biggest thing that USApple did for us in 2002 was the Market Loss Assistance payment. They played a major role in obtaining these funds and putting that money in growers’ pockets. USApple’s dues from Michigan was a small price to pay compared to the $32 million that Michigan was able to pass on to the growers. USApple works with the Environmental Protection Agency constantly fighting to maintain the necessary chemicals to be able to grow a quality product. Because of their efforts, we have continued availability to Guthion and Imidan for growers’ use, despite many attacks by special interest groups. USApple and its allies pressed for increased funding for USDA export promotion program that provided $3.1 million for the U.S. apple export promotion activities in 2002. Michigan was a recipient of a share of these funds. It also continues to preserve the industry’s anti-dumping case against Chinese apple juice concentrate imports. Currently USApple has organized a risk management task force to give recommendations to USDA on the federal apple crop insurance program. They are hoping to improve the policies to cover real-world losses. USApple’s public relations program focuses on promotion health and nutritional benefits of apples to consumers, trade media and educators. They are key in helping to sponsor nutrition research and promotion programs on the health benefits of eating apples. They also continue to support the 5 A Day program and ensuring apples are a visible part of that program. USApple was able to garner purchases of 743,000 bushels of fresh apples, of which Michigan was a part, by the USDA for the school lunch and other domestic programs. I cannot emphasize enough how important it is for the apple growers of Michigan to vote “yes” on the Michigan Referendum and the USApple millage. One cannot survive without the other. States are assessed based on production, and the USApple approved increase is approximately one penny per 100 pounds of apples produced. It will be a penny well spent!

Ed Wittenbach Michigan apple grower Former Chairman, MI Apple Committee Trustee and Former Chairman, USApple

USApple Investment Brings the Best Return This year, it is my privilege to be your vice-chairman of the U.S. Apple Association (USApple). Some of you know that I’m an apple grower from Washington state. For the past few years, I’ve had the pleasure of working with Michigan’s elected representatives to the USApple Board of Trustees. In the near future, Michigan apple growers will have an opportunity to vote for continued support of the Michigan Apple Committee and USApple. I’m confident that, given the facts, growers will vote “yes” for both organizations. As growers, we compete fiercely for markets locally, domestically and internationally. We join together within our states to build our brands and promote our excellent products to retailers. I don’t see that changing in the near future. Fortunately, we are able to put down our spears and shields to join hands where we have common interests. This is vital since there isn’t much Washington apple growers or Michigan apple growers, alone, can do to affect the policies of powerful government agencies like USDA, EPA, U.S. Trade Representative, Department of Commerce, etc. But, working together, with the collective power of Senators and members of Congress from a dozen apple-producing states, we have great power. Being an insider at USApple, I know the incredible good our national trade association does for apple growers across the country. It has sometimes been frustrating to me, knowing how delighted Washington growers are to receive their Market Loss Assistance checks, but have no idea that USApple was solely responsible. This year alone, apple growers across the United States will receive $94 million from AMLAP III, a USApple initiative. That’s $94 million from an organization that operates on an annual budget of less than $2 million, very small by Washington, D.C. standards. While the checks are nice to receive, there are literally dozens of successful program activities, unseen by most growers that benefit each of us. A graphic example was our aggressive lobbying effort by USApple Vice President Jim Cranney and his Science Advisory Sub-committee, with the EPA, which wanted to remove Guthion from the market. Without USApple, apple growers, like several other crops, would likely have lost Guthion as a pest management tool. How do we measure the value of that kind of success? Working together, we have funded nutritional research touting the health benefit of increased apple consumption and disseminated the results through a highly professional public relations program. USApple is in a position to encourage Congress to fund nutrition advertising through the Center for Disease Control, which should encourage people to eat more apples. Collectively, we successfully influence the USDA to increase government purchases of apples for school lunch programs and others. A letter written by USApple, signed by a dozen Senators, can help us gain access to new markets and restrict the introduction of foreign apples to our domestic market, which pose a phytosanitary threat to our orchards. USApple is a terrific publicity shield for our individual states, protecting our brands by acting as a spokesperson during crises. It makes sense to me that you would want to continue your collective marketing effort by supporting the Michigan Apple Committee. With your future at stake and the very existence of our national trade association at risk, I hope you will also vote “Yes!” for USApple. There is no expense on your farm that will return as much as your modest investment in USApple. Throwing spears at each other gets old quickly. Working together at USApple is the best way to succeed.

Larry Olsen Olsen Brothers Prosser, Wash.

Invest in Your Success and Vote Yes for Both Receiving good value is often difficult to judge especially if you are removed from the process you are investing in. Some of the things we do are out of mind until we are called upon to revisit or make a commitment. That time to revisit is upon us as we are asked to vote to renew the Michigan Apple Committee. Sometimes it’s easier to vote against spending hard-to-come by dollars than it is to determine if we are getting a good return on our investment. I urge you not to take this approach. I’ve thought long and hard about the most effective way to promote our Michigan industry in light of competing against apples from eastern and western production areas, Chile, South Africa, New Zeeland, etc. Being involved in the growing, sales and marketing of several Michigan grown crops I urge you to talk to different people involved in the marketing of your apple crop. Get fresh shippers and processors’ input into what your program is doing for you. Go to upcoming meetings and ask hard questions of the people who work for us. It’s important to know if your hard earned dollars are being effectively used. I made my decision to vote for renewal as I’ve seen the board members make hard, forward looking decisions to reposition the committee to compete in the rapidly changing marketplace. My view is that a vote against renewal is a vote to make us less competitive in the national and international marketplace. I was reminded of this during the new year while trying to work with a customer whose orders were way below expectations. This customer’s normal pattern is to advertise and promote Michigan apples five to six times from the beginning of harvest through December while advertising Washington apples three to four times. This season our Washington competitors had a total of seven ads while we limped along with two promotions, (ads or promotions really drive sales). We had the opportunity to sell 40,000 to 50,000 additional cases, but due to budget shortfalls (result of short crop and significant arrears on the part of a couple of firms) we didn’t get it put together. To go forward without just this one aspect of committee activities in normal years would have a very negative effect on our ability to market crops effectively. This job needs to be done and forward thinking growers two generations ago had the vision to set up a structure to get the job done. This organization is even more necessary and effective today. I urge you to invest in our industries and your own operation’s success - VOTE YES FOR MICHIGAN APPLE COMMITTEE RENEWAL! This same thought process follows, as we will be asked to approve an increase in our apple assessment on ballets in March. This issue is separate from the committee continuation but is equally important. What will this increase mean to you individually? The increase amounts to approximately 25 cents per pallet bin to continue to run USApple programs that are national and international in scope, activities that are focused exclusively to protect and promote your interests, programs that no one else is dedicated to performing. At a meeting in Washington, D.C. last week I saw an example that drove the importance of this home for me. Nancy Foster (our new USApple president) was called from a meeting to “go up on the hill” to visit members of Congress who are being asked to approve an amendment sponsored by a southern state senator. This amendment in effect will cut the apple industry out of a disaster bill (in a very short crop year for you and I) to increase the benefits to southern grain, peanut and rice producers. This is exactly the type of situation where other farm organization lobbyists find themselves torn between conflicting interests and our interests tend to get watered down. Our interests are served through the Michigan Apple Committee’s membership in USApple and this increase is necessary to preserve and promote our interests in the political realm. Of course USApple represents our interests in many other ways but this is an absolutely critical area that must not be allowed to lapse for Michigan growers. NO OTHER ORGANIZATION YOU BELONG TO REPRESENTS CORE APPLE INDUSTRY INTERESTS LIKE USAPPLE. VOTE YES TO SUPPORT THE ASSESSMENT FOR USAPPLE! Please feel free to call me if you want to discuss these issues.

Don Armock Riveridge Produce Marketing (800) 968-8833