USHBC Recommends to Increase Assessments

After a great deal of discussion, debate and study the US Highbush Blueberry Council (USHBC )members voted at their February 28th meeting to increase the USHBC grower assessment from $12 per ton to $24 per ton. The purpose of this recommendation was for the following reasons:

• Worldwide production will increase from 407 million to 1.0 Billion lbs. in the next five years
• Consumption will need to increase to keep up with production
• Funds will be used to increase market promotion and health research
• The Industry needs to build upon blueberries existing healthy "Halo Effect"

Just because the USHBC voted to make the recommendation does not mean that it will go into effect immediately. The following process will need to be taken:

1. The proposed assessment increase will be recommended to the U.S. Department of Agriculture
2. The USDA will publish the Council recommendation in the Federal Register
3. The Public will be able to comment
4. If accepted by the Secretary of Agriculture, the earliest the new assessment could be applied would be on the 2010 crop

New Crop Florida Blueberries

Florida blueberry growers are starting to harvest a little bit of fruit. Florida has had some cooler evening temperatures and according to one grower it was only 48 degrees Fahrenheit this morning. However, nighttime temperatures are expected to warm up and that should bring on production next week. Generally speaking, peak production is around the 10th to 12th of April, but growers are anticipating the peak to be approximately a week later. The crop appears to be more consistent than years past and some growers are saying that the production in Central and Northern Florida will overlap more than normal. Florida is expected to harvest between 11-12 million lbs. of blueberries this season.

Whiskey and Water

Considering I am writing this blog from Philadelphia, I thought is was appropriate to quote Benjamin Franklin, “We will never know the true value of water until the well run’s dry.” One does not have to ask the farmers situated in the Westland’s Water District on the west side of California’s San Joaquin Valley about the value of water. This district receives water from the San Joaquin – Sacramento Delta via the State Water Project (SWP). Unfortunately, Farmers in the Westland’s Water District are finding out what the true value of water is. Last month the district learned that it would not receive any water from the federal canal this year. The Westland’s Water District is home to 600 family owned farms and produces a bountiful amount of fruits, nuts and vegetables. California has had two straight dry years and unless the Sierra Nevada’s get a substantial amount of snow in March, make it three. Due to the lack of water, there is an increase in water traded between farmers north of the Sacramento Delta and growers in the south. Farmers in the north leave ground fallow and sell their water to farmers in the south. According the March 7th edition of The Economist, water is going to cost approximately $500 per acre foot and is three times the sum that farmers paid last year. However, even at that price, demand exceeds supply. One can argue that farmers use too much of the federal water, but that argument does not hold any water. No pun intended. In fact, according to www.farmwater.org, farmers only use 43% of the federal water. The other 11% and 46% is used by Home/Business & the Environment respectively. The fundamental problem is that when the SWP was approved in 1959 it was built for a projected California population of 23 million people. According the California Water Coalition, there will be an estimated 46 million people in California by 2020. Therefore, the infrastructure is broken and more storage facilities are needed to increase the supply of water for Californians and one of their largest industries, Agriculture. As Mark Twain quoted, “Whiskey’s for drinking, water’s for fighting about.” Especially, expensive water.

Blueberries, Red Wine & Coffee

Blueberries, red wine and coffee are three of my favorite things. In fact, my daily diet consists of blueberries, oatmeal and coffee for breakfast and I normally have one glass of red wine for dinner. Okay, maybe two glasses. In a recent article on www.GoodHousekeeping.com
(No I am not a subscriber and my wife can attest to that. Maybe Bad Housekeeping) there is data that supports the Blueberries, Red Wine, Coffee and Chocolate contain "Anti Aging Benefits." No it does not mean you can turn back the clock, but blueberries, for example, have a high amount of antioxidants. According the the article, blueberries "combat free radicals, molecules that can cause widespread cell damage and are linked to chronic inflammation. Unlike the inflammation that occurs when you sprain an ankle or strain a muscle, the type that contributes to aging is persistent, and thought to be at the root of most chronic diseases, from cancer, heart disease, and diabetes to Alzheimer's, arthritis, and osteoporosis." Well it is Friday and since I have already consumed my daily diet of blueberries and coffee, time to go have a glass of Malbec. As they say in Argentina, Salud!!!

Agriculture: The New Black

I found solace and humor in Maria Bartiromo’s interview with Jim Rogers in the March 9th edition of BusinessWeek (http://www.businessweek.com/magazine/content/09_10/b4122017811535.htm.) Jim Rogers is the famed author, adventurer, and creator of the Rogers International Commodities Index who has made millions investing in commodities. According to Rogers, “Agriculture’s been a horrible business for thirty years, but agriculture is going to be the best place to be.” I’m hoping that Rogers’ prediction is accurate, “That’s where the money’s going to be (Agriculture) in the next couple of decades.” Maybe at cocktail parties, conversations will turn from talking about stocks and housing (I doubt that because everyone will discuss how much they've lost) to talking about The New Black: Agriculture. And if we've have had too much to drink, we will call a taxi, which our former stockbroker will be driving unless they were smart and according to Rogers they will learn to drive tractors, "Because they'll be working for farmers."

45% of Customers Purchase Blueberries

I just recently received in the mail, the The Packer 2009 Fresh Trends publication from www.ThePacker.com. According to survey, 45% of customers purchased blueberries within the past 12 months. This was a 1% increase over last year, but still pales in comparison to strawberries (70% of customers purchased). These statistics indicate the upside for the fresh blueberry industry and for companies selling blueberries. With expected blueberry volume to exceed 550 million lbs. in North America and 800 million lbs. total worldwide by 2012, producers, marketers, foodservice distributors and retailers will have to work together to increase the amount of consumers purchasing fresh blueberries.