Trade Dollar Utilization Communicated

To those sectors in agriculture affected by trade retaliation tariffs, the Administration authorized the fruit purchase program (above) and a promotion program (ATP).  Several commodity leaders believe that as the year progresses, dollars allocated for fruit purchasing may not all be spent.  This belief has resulted in a joint communication signed by CCM, American Pistachio Growers, Blue Diamond Growers, California Farm Bureau, National Pecan Federation, United Fresh Produce Assoc., and Western Growers seeking a commitment from the administration that should the purchase dollars not be spent the unused amount be transitioned to the marketing program.  “For our sector the fruit purchase effort has been of some help but whether all the dollars are used is still unclear.  Recapturing market share is always an expensive proposition,” states CCM’s Joel Nelsen, “thus allocating funds to help those affected is only right in our view.”

While in Washington, D.C. last week, Joel Nelsen and Casey Creamer met with industry colleagues explaining that the existing promotion program needs to be extended into a second and third season.  “The vast majority of our marketers rely upon marketing programs designed to stimulate both consumer and retail demand,” Nelsen continues.  “Others however simply resort to price reductions and can move fruit at a lower price because their costs are lower.  Lowering price does little for the return per acre, thus our belief that the Administration should be willing to partner with commodity sectors longer than just this season.”

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