OLIVE FRUIT FLY ARTICLE RAISES CONCERN OF BUYERS
A recent article that appeared in the San Francisco Chronicle brought with it numerous calls questioning whether or not the California industry would survive. And if not, should buyers begin to look elsewhere for product. In answer, here is our take on the Olive Fruit Fly situation.
First, it will not close down the California olive industry. In fact, growers of commercial table and oil olives have mobilized an intense trapping/bait spray program to control the Olive fly. Not that we will eliminate it, but with tools available the industry can provide a managed control program. Sadly, we must report the industry gets very little help or respect from the state. Because of acres and gross farm gate value generated, the industry does not show up on the radar screen.
Compare olives at $100,000 farm gate value and 35,000 acres to grapes at $2.8 billion and one million acres, it is easy to understand why olives don’t attract much attention. Add to this an additional $10 billion in wine sales. That is why the glassywinged sharpshooter gets so much attention. Further, a majority of the table olives and olive oil consumed in the U.S. come from foreign imports, some of which are heavily subsidized.
No wonder the California Department of Food and Ag told the industry it would have to fend for itself. The state points out that Europe lives with the fly and so can California growers. Unfortunately, European countries are able to use organophosphate pesticides that are not approved for use here. Also in Spain, the government subsidizes an aerial spraying program to control the fly.
This is not to say domestic growers want to use such strong materials. But it does suggest there is something wrong with the equation when foreign countries can use materials on their food products and ship them into the U.S. without worrying about pesticide residues. Nor do they have to meet the same strict rules and regulations for food safety, good manufacturing practices and label requirements.
The question continues to arise....how can California compete in such an unfair business environment ???
OLIVE FRUIT FLY POPULATIONS STABLE
Trapping continues throughout California with weekly reports indicating low populations. Unfortunately, the Olive fly is still present and must be continually trapped and sprayed.
Current reports from Central California (Kern, Tulare, Fresno and Madera Counties) show minimal fly counts. As of October 4, there were only three male flies and no females reported. A majority trapped flies were reported during the month of June. This is about the time growers began intensive spray programs with
Spinosad. Fly counts since July have dropped dramatically.
Northern California (Tehama, Glenn and Butte Counties) the report is somewhat different. Both Glenn and Tehama Counties have reported very few fly finds. However, Butte County has been significantly higher. The week of October 3, there were 33 male and 19 female finds in the Oroville area.
The facts are very clear. The fly is permanently established in California. Growers must now include an on-going trapping-spray program to manage and control the Olive Fruit Fly. Processors have communicated to their contract growers than any fruit infected with the fly will be rejected. it is impossible to sort out fly damaged olives during canning operations.
We must all stay alert, maintain a sound fly management program, continue to work with the scientists for new and better means of control and keep pressure on our legislators for financial support to help in the fight against this dangerous insect.
NOTICE TO OGC MEMBERSHIP
Please help us keep your communication records in order by letting the office (559) 734-1710 know when you change mailing addresses and telephone numbers. Many of your newsletter are returned as undeliverable because of an incorrect address or zip code.
Thank you for responding...........the OGC Staff
Olive Bargaining Association:
Who Should Support Putting Money on the Table???
Reading the mission statement of a bargaining association is not the most exciting material. But what such organizations do for their industries is extremely important. California has a good number of bargaining associations including apricots, tomatoes, pears, raisins, cling peaches, prunes, freestone peaches with others (almonds,
walnuts,etc.) who are in the organizational stages.
The Olive Growers Council (OGC) is an industry bargaining association organized to provide meaningful economic benefit to our members. What are those benefits? Most important is that of price negotiations for each year’s olive crop to help growers enjoy certain financial benefit when they sell their olives to the processors. In simple words, the Council has one major mission, to put money on the table for olive growers. There is no other association or group that deals with this issue within the industry.
What does it take to be successful? Again another simple answer. It takes membership; it takes committed growers who produce olives make it all happen. Operated under the legal guidelines found in the California Department of Food and Agriculture Code, bargaining associations have the responsibility and authority to negotiate for price and terms of contract on behalf of their members. But that’s not all. The work accomplished by the Council goes well beyond the membership base. Prices that are negotiated between the Council and processors becomes the final price for all olive growers.
The Council is operated by a board of directors elected by the membership. Elections are held annually with directors serving two year terms. Directors are elected from throughout the state of California. All members in good standing can choose to run for the board.
Members gain many additional benefits. In addition to price discovery, the Council represents growers both statewide and nationally. OGC is a member of one of the most highly respected lobby organizations in Washington D. C., the National Council of Farmer Cooperatives. Although a small member, the Council enjoys the same services and level of representation during import hearings, debates on Farm Bill issues and support of or objection to legislation being debated on Capitol Hill.
The more olive grower members, the more efficient the organization operates with reduced financial burden to the growers. All members are encouraged to recruit non-member growers. It’s in your best interest and long-term benefit. Every grower should belong. For questions or names to recommend, call Visalia office.
FUTURE MEETING SCHEDULE
Oct 11-12: Calif Ag Leaders Conf.
Fish Camp
800-678-4769
Oct 16-17: California Olive Field Day, Butte County
Oct 28-30: Ag and Food Processing Applications of Ozone, Fresno,
(559) 561-0112
Nov 12-14: Ag Fresno Show, Fresno Fairgrounds, (559) 650-3255
Dec 6 -14: Sonoma Olive Festival
“Blessing of Olives” Month, Sonoma, CA
Dec 11: Calif Olive Com Mtg, Fresno
Olive Harvest in Full Swing in all
Districts
All table olive growing areas are engaged in harvest. Growers with light crops began picking in mid-September to prevent being penalized by the processors because of overripe fruit. Growers are very sensitive to a grade penalty that was put in place two years ago that subtracts a significant dollar amount from olive deliveries that exceed a certain percentage of
cullage. Any grower delivering olives with culls that exceed 7 % will see his load value downgraded by $75.00 per ton for that delivery. Any load that grades out over 10.01 % culls will be penalized $150.00 per ton. With softer field prices in 2003 and possible labor shortages, growers are well advised get started on the early side rather than waiting.
Deliveries of olives for week ending October 5 totaled 41,604 tons. Variety totals as of 10-5-02 are as follows:
Manzanillo 32,756 Tons
Sevillano 5,306 Tons
Other 3,541 Tons
Total 41,603 Tons
Growers are quick to point out that softer olive prices are difficult to understand in light of increased labor cost, higher workman's compensation insurance coupled with added cost of spraying for the olive fruit fly. The economic comparison is simple. Olive prices are down approximately 10 percent compared to 2001. Growing cost are up over $100 per acre (10%) because of the Olive fly, labor cost are up 10 % thanks to the minimum wage increase, Governor Davis approved a major increase in workman's compensation benefits and growers are being asked to become more efficient ? How does one increase efficiency, reduce cost and attempt to maintain strong market conditions when our own government continues to create more burden.
Thanks to “free trade” arrangements promoted by both the current and past administrations, foreign countries continue to take away California’s olive markets. Even as we speak, the Bush Administration is encouraging a Free Trade Agreement with Morocco, a major black olive supplier. It was only two months ago that Subway Sandwich Shops canceled business with California and took their business to Spain and Morocco.
The olive industry suffers because of conditions and actions outside the farm gate and totally out of the farmer’s control.
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