Markets, Promotions, And Associations

Dick Meister provides additional comments on some of the highest highs and lowest lows in vegetable production during the past 100 years

Check Offs — United We Stand. The law enabling grower “check off” programs was passed by Congress in l937 and followed by state legislation. Since then, more than 350 programs have been formed. From asparagus to onions to tomatoes, they give form and substance and identity to grower efforts to establish and develop market positions, local, regional, or national. Check off programs have been continually under fire regarding their constitutionality, and although there have been setbacks in lower courts, the Supreme Court has upheld their legality in several noteworthy cases. Nevertheless, there are groups and law firms specializing in finding loopholes to make them illegal. Board and commissions who administer these programs must keep their defenses strong.

NAFTA — A Poison Pill? In l989, Canada and U. S. formalized a Free Trade Agreement to cut back on tariffs and other trade restrictions. In l994, Mexico was included and NAFTA, The North American Free Trade Agreement, was born. As a result, Mexican vegetable imports which compete directly with Florida, doubled in value for tomatoes, peppers, squash, onions, and cucumbers. A l996 Florida petition to the International Trade Commission for relief was turned down. A second petition to the U.S. Department of Commerce claiming Mexico was dumping tomatoes below market value led to an agreement establishing a minimum import price for tomatoes which is aimed at evening out price levels between Mexico and the U.S.

VGAA — An attempt at a national association. Compared to other farm commodity groups, the vegetable industry is vast and sprawling and disorganized. There has never been a national organization representing just vegetable growers. There are strong and effective regional and state groups, but no national confederation. It is difficult to develop a common bond because growers from different states are so hotly competitive. In the 1950s a group of Cleveland Greenhouse Growers decided to change this. They organized the Vegetable Growers of America, the VGAA, and held several national conventions. Two growers, Walter Pretzer and Paul Reutenik, spent a good deal of their personal money to get the association going, but their efforts were in vain.

Specialty Crops Association gains traction. Vegetable growers have united behind the Specialty Crops Farm Bill Association created after the turn of the century to lobby for more government support for the so-called minor crops. More than half of total U.S. crop value comes from specialty growers like vegetable growers. The House of Representatives has earmarked more than $2 billion over five years in the House version of the 2007 Farm Bill to benefit more than 350 crops represented by 120 organizations. The Senate has yet to act. It is expected that this assistance will take the form of such programs as school snacks, trade assistance, invasive pests, and state competitive grants and will not include direct assistance like price supports traditionally shunned by specialty crop producers. (Direct assistance goes to corn, cotton, wheat, soybeans and rice farmers who receive hundreds of millions in price supports and other measures).

Potatoes fly high on French fries. It was a l966 handshake between Ray Kroc of McDonald’s and Jack Simplot of J.R. Simplot Co. whereby all McDonald’s fast food restaurants shifted to frozen French fries. That agreement put frozen French fries on the fast track after Simplot spent years perfecting the product. Although consumption of regular potatoes has declined over the years, zooming consumption of frozen fries has made up the difference. Idaho’s Jack Simplot is Mr. Potato and at 98 years is still going strong. He started with nothing as a boy of l4, and today is a multi-billionaire.

Birds Eye Sings for Growers. Starting in the 1930s frozen vegetable processors offered a steadily increasing market for vegetables, which now amounts to about 10% of total vegetable consumption. Increasing supplies of year-round fresh vegetables have put pressure on frozen consumption. The first consumer test for frozen vegetables was in l930 in Springfield, MA. It was the vision of Clarence Birdseye who created the frozen product after seeing how Eskimos kept their food fresh through freezing. He developed the concept of freezing vegetables quickly to preserve texture and quality and doing it in the package that was sold directly to the consumer.

Organic goes main stream. The organic movement started to flex its muscle in the 1950s, shortly after the second World War. Organic Gardening magazine caught the attention of growers and consumers alike. Organic food buying co-ops sprang up and dedicated organic producers emerged mostly small and local. But it wasn’t until 2002 that certification was required under the National Organic Program administered by the U. S. Department of Agriculture. Critics of organic say that it is a regressive technology and therefore elitist. Also, despite large increases year to year, organic amounts to only a small fraction of total farm production of food, and can never feed a growing world population. Organic has always been associated with local production, but more and more larger, more distant, farms have begun to take over. As a result, new standards are being promoted, one of which proposes to restrict production to a 50-mile radius. Meanwhile, conventional production becomes more environmentally friendly with the development of Integrated Pest Management methods and new biological and natural crop protection products.

Vegetable Consumption Zooms. Demand for fresh vegetables has increased dramatically. Per capita consumption has zoomed from 112 pounds in l980 to 174 in 2005. And it could grow to the 200-pound level as national concerns about obesity and health trigger growth. It is a national priority to increase awareness of the health benefits of fruits and vegetables with the 5 A Day servings plan (now 5 to 9 A Day). The national 5 A Day partnership includes big guns in the government like the National Cancer Institute, Department of Health and Human Services, and USDA, along with a consortium of produce groups united in the Produce for Better Health Foundation.

Changing Potato’s Image. In the 1960s unfavorable publicity created the erroneous impression that potatoes were fattening and not nutritious. Potato growers rallied together through their National Potato Council by forming the U. S. Potato Board in l971. The Board, through assessments, collected a war chest to fund national promotion and advertising about the values of potatoes in the diet. The program was successful from the beginning, and the potato industry accomplished an almost impossible feat of changing the way consumers viewed their product in a short five years. The strength of the potato in nutrition undoubtedly contributed strongly to the success of the program. Potatoes are excellent sources of many vitamins and minerals, strong in fibre and anti-oxidents, also fat-free and cholesterol-free and low in calories. That five-year promotion put the potato back on its throne as one of the most important foods in the diet.

E. Coli’s Ugly Head. During most of the 100-year history of commercial vegetable production, E. coli and Salmonella outbreaks came mostly from animal products. But at the turn of the century, life threatening outbreaks occurred from contaminated fruit and vegetable products. The most recent spinach outbreak in September 2006, and the Taco Bell outbreak Nov.-Dec. 2006 have focused attention on best management practices to prevent future outbreaks. In California, voluntary regulations have been put into effect, whereas in Florida for tomatoes, state law regulates compliance. But the basic problem remains that even strict adherence to known prevention methods may not be successful. Much more research is needed to understand these elusive bacteria, how they grow, how they develop resistant strains, how they move in the environment. Meanwhile, public concerns over food safety are a serious threat to future growth.

Labor — Vegetable’s Achilles Heel. One fact has not changed over 100 years: finding workers to plant and harvest and pack has always been a thorny problem for growers. There have been significant breakthroughs in mechanization, and more are on the threshold, but the situation is now in crises as political pressures are causing government crackdowns on Spanish speaking workers causing critical disruptions in the work force with crops rotting in the fields without harvest labor.

Government efforts to import workers have always been hampered by strong political clout of labor unions and liberal activists, even though there is irrefutable evidence that domestic workers simply will not work long hours outdoors picking vegetables. The Mexican Bracero program, started in l942, at one time supplied 4 million workers until it was ended in l964, due to claims of exploitation and abuse.

The situation today is unresolved with vegetable leaders fearing that we will either import workers or import our supply of vegetables. However, it is inconceivable that our national political leaders will not recognize the need to legalize 10 or 12 million illegal Spanish speaking workers who are so important to our economy, despite the fevered, patriotic claims that amnesty is not an option.

The Review and Outlook
The preceding events and developments over a 100 year span give some insight into what has molded and shaped the vegetable industry. The striking conclusion is that the impetus for change can come from any number of sources, and with very little warning. By reviewing these events, one can forecast long-term trends, some beneficial and some harmful.

For instance, it is strikingly clear that the land grant college system in its role as recruiter, trainer, researcher and breeder had a tremendously positive effect. Yet, many land grant departments are cutting back, positions are not being filled, long-time leaders are retiring. It is clear that this government funded training and research arm of the vegetable industry will not be as effective in the future.

On the other hand, the government’s commitment to publicizing the health values of vegetables has had a very positive effect, with large increases in per capita consumption, undoubtedly also due also to improvements in flavor and quality and marketing strategies. The interesting fact is that the almost 50% increase in consumption was accomplished with only a 7% increase in acreage, testifying to increased productivity.

Looming on the horizon are the surges in imports as the U.S. market grows in importance for foreign producers. Imports of selected vegetables have nearly doubled in value since the year 2000. For U.S. growers to stay ahead of this competition will require technological advances and a more favorable labor supply, which issue hangs in the balance. Fuel costs also enter into the picture since higher energy costs favor domestic producers. Global warming with emphasis on carbon emissions also favors local production.

Although over the years the number of vegetable growers has decreased, the strength of the U.S. vegetable industry lies in the experience and know-how of its growers. Whether a local farm market, direct to consumer grower, or a 1,000-acre long distance grower/shipper, or a grower for processing, the U.S. vegetable grower has shown exceptional efficiency and flexibility in overcoming the challenges of the past and will undoubtedly will do so in the future.