Good Fruit Grower

January 2017

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www.goodfruit.com GOOD FRUIT GROWER JANUARY 1, 2017 19 average volume. The exit, allowed under a clause of the 2014 Farm Bill, did not directly affect promotions of convention- ally grown pears. However, pear shippers now solely bearing the cost of their own organic promotions may be more likely to go it alone with their conventional marketing, too. The dynamic this year is different than the industry has seen in the past, and it's possible that shippers could choose to go it alone again, said Kevin Moffitt, presi- dent and CEO of Pear Bureau Northwest. But Moffitt is urging growers to stick with the marketing order to help con- tinue relatively good times for pears the past few years. "The pear industry is doing pretty well," he said. The efforts of the pear bureau are part of the reason, he said, but so is commu- nication among sales teams and packing houses that fosters overall teamwork. "We're all working together, and it's shown to be effective," Moffitt said. A 2013 Washington State University economic evaluation of the marketing order's effectiveness determined grow- ers yield $7.68 in returns for every dollar spent on advertising and promotion on winter pears. The history The pear industry's Marketing Order 927, established in 1939, is the nation's longest running. Under the order, ship- pers pay annual assessments of 44.9 cents per box — 38.5 cents toward marketing, 3.1 cents toward research and 3.3 cents toward administrative fees. February's referendum does not affect the rates, which are set by the committee at the annual meeting. The referendum will be a simple yes or no vote — yes to continue the marketing order, no to discontinue. A two-thirds majority by either number of growers or volume of production is needed to pass. If neither of those thresholds are met, the Agriculture Department will consider terminating the marketing order. In 2011, the referendum passed comfortably, with 96 percent of the pear growers representing 88 percent of vol- ume saying yes to continuing the market- ing order. The Pear Bureau Northwest has rec- ommended the Agriculture Department hold the referendum in February. The department will mail ballots to all com- mercial growers of fresh and processed pears in the two states. The vote will affect both fresh and pro- cessed pears. Growers pay assessments for both. While the Pear Bureau Northwest handles promotions for fresh pears, the Pacific Northwest Canned Pear Service promotes processed pears to both con- sumers, food service companies and government agencies such as school districts. Those venues require a collec- tive message, as well, said B.J. Thurlby, president of the Canned Pear Service. "The recent influx of Chinese-grown canned pears into the United States is making for a challenging environment for processor sales, and a strong 'Buy USA' message to the schools and other state and federal institutions is critical moving forward," Thurlby said. The Northwest's three pear processors pay growers $340 per ton, an all-time high price. The price, negotiated by the Washington-Oregon Canning Pear Association, is not directly related to the marketing order, but speaks to the overall health of the industry that the order sup- ports, Thurlby said. Stemilt Growers, one of the largest pear shippers, favors the marketing order especially for its international market- ing capabilities, said Mike Taylor, sales director of the Wenatchee, Washington, packer. Stemilt has no pear orchards of its own, and therefore no vote in the refer- endum, but sells pears under the brand name Rushing River. The company pre- fers doing that on its own in the domes- tic market but welcomes the collective approach internationally. "The Pear Bureau is very good at it," said Taylor, also a Pear Bureau board member. Taylor specifically lauded the Pear Bureau's ability to attract federal Market Access Program funds, distrib- uted through the U.S. Department of Agriculture to trade groups to expand- ing exports of farm products. In 2016, the program awarded Pear Bureau Northwest $3.1 million in Market Access Program funding. The Washington Apple Commission and Washington State Fruit Commission also received funding. • A chef demonstrates cooking with fresh pears at a store in Latin America during a promotion organized by Pear Bureau Northwest. A plate of pears is carried at the USA Pears Night Market during Feast Portland.

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