Volume 39, NO. 22 June 2, 2016

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Tobias Heath
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Volume 39, NO. 22 June 2, 2016 Navels Reports indicate that more than 50% of the shippers are finished with their navel crop this year; overall crop is pretty close to 95% harvested.

1 Volume 39, NO. 22 June 2, 2016 Navels Reports indicate that more than 50% of the shippers are finished with their navel crop this year; overall crop is pretty close to 95% harvested. Utilization is dropping especially for those that are cleaning up regular navels. Prices continue to inch up again this week. The labor situation is reported to be very difficult; with large crews still being pulled into blueberry harvest, the cherry crop is finished in the southern SJV. Lemons Pricing continues to strengthen, the bottom side of the range has firmed up this week. The remaining D1 shippers are close to the end. D2 fruit is strong, medium sized, with good quality and color. D2 handlers are over 60% harvested to date with storages being near capacity. Picks are accelerating and labor has been stable in D2. Ventura weather continues to benefit the on tree crop of lemons; however, a warmup is in the forecast for this coming weekend. Chile landed 5 loads in the US, with another 20 scheduled in next week. Mexico has been sporadic over the last three weeks with 4, then 13, and then 4 loads again. Export has been good, Korea and Japan have been very steady; Japan had taken some South African product, but is working through the inventory and has switched back to California lemons. Hong Kong is taking one size and 1 st grade only, but it has been brisk. Domestically, all sizes and grades are being utilized. Utilization, with losses due to storage being considered, is estimated to be running 75-80%. Valencias - Valencias are slow going, the export market is taking the lion s share of the Valencia crop at this time. In general, only a few 72 s are being sold, with 88 s and smaller being in greater demand. Taiwan has been taking 138 s and 163 s, Japan is taking the larger end of the scale with some 56 s but mostly 72 s and smaller. Regreening is an issue and some observations of rough texture on larger sizes. Labor is reported to be very difficult in northern San Diego County. Grapefruit One D2 shipper reports being in the mid 50% range harvested to date. The market has slowed due to the holiday weekend. Overall, strong demand and pricing have characterized this season. Color and quality have been good, a run of sizes are available, but fruit size trends to the larger sizes. Pricing has been stable. NAVELS MOSTLYS VALENCIA MOSTLYS LEMON MOSTLYS Size Fancy Choice Fancy Choice Size Fancy Choice Fancy Organic

2 Legislative Update Tomorrow is the house of origin deadline for the Legislature, meaning the Assembly must act on all Assembly bills and the Senate must act on all Senate bills. CCM staff has been hard at work representing the industry on multiple issues. Here is a brief summary of what s transpired thus far: SB 822 (Roth) This CCM sponsored bill would raise the assessment authority of the Citrus Pest and Disease Prevention Program from the current $0.09 per 40-lb carton (equivalent) to $0.12 upon recommendation by the industry advisory committee, as we commonly refer to as the AB 281 Committee. Action passed out of the Senate. SB 1282 (Leno) This bill has taken on a life form of its own this week. From the outset, CCM has led a large coalition in opposition of the bill for the implications it would have on our industry s ability to protect itself from ACP and HLB. The bill would make neonicotinoid pesticides a restricted use material thereby removing all products from the consumer market. Additionally, the bill would require all seeds and trees sold at retail that have been treated with neonicotinoids to be labeled as potentially harmful to pollinators. CCM is one of several associations, including the CA State Beekeepers Association that has signed onto to a floor alert urging members to oppose the bill. At the time this article was written, the author was scrambling to get the votes he needs to pass the bill. Action none taken yet. This just in! SB 1282 failed passage! More details will be forthcoming in next week s Market Memo. AB 2757 (Gonzalez) This bill would phase out the agriculture overtime pay exemption. CCM is one of 36 statewide agricultural and business who have signed the most recent floor alert opposing this bill for the following reasons: it will reduce annual take home pay for ag workers, CA farmers compete with farmers in other states for the large retail chains who set the prices, and CA is already one of a few states that does pay overtime to ag workers. With regulatory costs and the cost of business on a steady incline, this bill will only saddle Ag employers with a heavier burden to bear. We will know by the end of today if this bill will go forward or not. Action none taken yet. AB 1577 (Eggman) This bill provides a 10% tax credit for food bank donations of fresh products at the wholesale value and would simplify the reporting process until This week this bill was amended favorably in the Appropriations Committee and passed out of the Assembly easily. There is a greater effort at work to include this bill language in the budget bill. It will soon be heard in an Assembly budget subcommittee. Action passed out of the Assembly. AB 2261 (Hernandez) - This bill would permit the Department of Labor Standards Enforcement to investigate and cite employers for retaliation even if the employee has not filed a claim. There is an expansive coalition against this bill but it passed off the Assembly floor yesterday on a majority vote. Action passed out of the Assembly. Budget Last week, both houses were required to pass their respective budget bills. Now, a joint conference committee comprised of members from the Assembly and Senate is negotiating a final package that will be sent to the Governor for signing. Of particular note, the Senate budget bill included a $15 million appropriation to CDFA. $5 million is to be directed to the Pest Exclusion Branch, $5 million to the Glassy Wing Sharpshooter program, and $5 million to the Citrus Pest and Disease Prevention Program for ACP/HLB eradication efforts. The original request that CCM worked hard to get into the budget, was hijacked by the author of the anti-neonicotinoid bill (SB 1282), who also happens to be the Chair of the Senate Appropriations Committee, which affords him significant power. It s no coincidence that the citrus appropriation was reduced by $750,000 and that same amount was earmarked for a residential level study of the impacts of ornamental uses of neonicotinoids. CCM and our advocates in Sacramento are currently meeting with budget conferees in hopes of restoring our original ask of $5 million. The request must be included in the final budget bill and signed by the governor before any funding appropriation is finalized.

3 Argentine Update Sunkist and Citrus Mutual continue to work with the U.S. Citrus Science Council to protect the industry against increased challenges from invasive pests and diseases. Working closely with Senator Feinstein s office Sunkist was able to get Senate Appropriations to include the following report language which clearly indicates to USDA that timely science must enter the equation when proposing a rule that allows fruit into the United States from a pest or disease infected area. The Committee is aware that APHIS has proposed a rule to allow the importation of lemons from Argentina into the United States. The Committee is concerned that the U.S. citrus industry is already facing significant threats from introduced diseases and pests and notes that citrus canker and black spot are two diseases of ongoing concern affecting Argentina s citrus production. The Committee therefore directs APHIS to conduct a site visit in Argentina this fall in order to complete a comprehensive pest and disease risk assessment and provide an opportunity for the U.S. citrus industry to review the results of such visits. The Committee is also concerned that the proposed rule could result in an economic impact exceeding $100,000,000 annually. If that is demonstrated to be the case based on comments made on the proposed rule, the Committee directs APHIS to conduct this rulemaking according to the procedures required for economic significance as referenced in section 6(a)(3)(C) of Executive Order before finalizing the rule. Furthermore, the Council and partners are challenging USDA s conclusion that the proposed rule is insignificant or of minor economic impact. Our contention is that a pest or disease that can negatively impact a billion dollar industry is not minor and given the devastation already occurring in Florida government needs to be extra careful in protecting the one fresh citrus industry remaining. Industry Research Foundation Organizes On Wednesday, a majority of the benefactors, or their representatives, attended an organizational session to begin adding structure to the California Citrus Research Foundation. Benefactors affirmed the seven trustees and then designated officers for the Foundation. Serving as Chair will be David Smith on behalf of Booth Ranches; Vice Chair is Harold Edwards, Limoneira and Gerald Denni, Sunkist will serve as Secretary/Treasurer. Additional trustees include Jim Marderosian, Bee Sweet; Dr. Etienne Rabe, Wonderful Citrus; John Demshki, Corona- College Heights Citrus; and Curt Holmes, California Citrus Mutual. Each Trustee can have a designated alternate and to date they include: Russ Hanlin, Sunkist; James Sherwood, Bee Sweet; David Krause, Wonderful; and Joel Nelsen, CCM. Until an Executive Director is hired Citrus Mutual will serve as Executive Secretary. Groundbreaking ceremony for the facility is scheduled for June 6 with a number of Trustees in attendance along with Congressmen Ken Calvert and Mark Takano. The University is scheduled to be represented by Chancellor Kim Wilcox and Vice Chancellor Mike Tazzani; USDA s Under Secretary Elvis Cordova will also attend and offer comments about the importance of the facility. Trustees and benefactors also received a progress report on design, site purchase and development along with a proposed budget from the project development team. Meetings and discussions are scheduled with local authorities and USDA for certification purposes. The goal is now to schedule projects for insertion no later than June, CCM was empowered to draft by-laws with legal counsel, create a draft job description for the executive director, and retain a firm for development of letterhead and logo. Expanding Citrus Research in California The California Citrus Research Foundation announces the construction of a new facility in Riverside dedicated to research on devastating citrus disease.

4 WHAT: Citrus growers are invited to attend a special event at UC Riverside to celebrate the construction of a new facility dedicated solely to research on Huanglongbing. The California Citrus Research Foundation will build a biosafety-level 3 plant facility in Riverside that will utilize the expertise of scientists from around the world in citrus pests, diseases and breeding. The facility will allow researchers to conduct work on the Asian citrus psyllid and Huanglongbing that previously couldn t be done in Southern California. WHEN: Monday, June 6, 10 a.m. to 1:30 p.m. Reservations Required. RSVP online at WHERE: University of California Riverside, 900 University Avenue, Riverside, CA AGENDA: 10 a.m. Arrive at Lot 24 at UC Riverside. Catch shuttle to the UCR Citrus Variety Collection. 10:30 a.m. Save R Citrus Launch Ceremony 11:15 a.m. Taste and tour the UCR Citrus Variety Collection 12 p.m. Lunch at the UCR Alumni & Visitors Center 1:30 p.m. Program concludes DIRECTIONS: From the 215 freeway, exit at University Avenue and head East Follow University Avenue as it makes a 90-degree left-hand turn and becomes Canyon Crest Drive Park in Lot 24 on the right-hand side, just past the softball field Board the shuttle bus in Lot 24 to take you to UCR s Citrus Variety Collection Arrive in Lot 24 by 10 a.m. to arrive at the Citrus Variety Collection on time for the ceremony Fired up vs. Firing A number of years ago the industry funded Citrus Pest and Disease Prevention Program awarded a substantial grant to Cal Poly Pomona for the development of a facility that would expand biological control production. The building of that facility was woefully inadequate inasmuch NOTHING was done. Cal Poly representatives briefed committee members earlier this year with not much to report, again. Committee Chair Nick Hill then fired off a hot communication outlining the lack of energy at CPP and the increased vulnerability California s citrus faces as a result of their failure to complete the project. The Chancellor responded with a conciliatory note and dispatched a trusted staff member to interact with committee members. Since then weekly reports have been forthcoming, with pictures, depicting the progress. Construction started on May 2 and is expected to be completed by the end of June. Each report details the percentage of the project completed; designated persons for questions and agency review status. Next steps for the coming week are annotated. Once completed the University is expected to notify the Committee on insertion of plant material for psyllid and tamarixia development and when sufficient population will be available for release into urban areas. CPP came close to being fired but thanks to aggressive action by the committee chair the University is now fired up as another ally for the California citrus industry. Face to Face Sherwin Williams, the paint company, used to have a slogan about covering the globe and their logo indicated the message. That s what it was like with CCM directors and staff this past week. CCM representatives had a very direct conversation with Riverside area Congressman Mark Takano about the HLB threat, Argentina lemon

5 import issue and the need for him to become more active in supporting federal efforts in these two areas. To his credit there was no hesitancy and he welcomed the additional background information provided. Then CCM s Alyssa Houtby, Chair Kevin Severns, director Jim Finch and past Chair Nick Hill attended a joint meeting with Sunkist representatives giving Congresswoman Julia Brownley an update on the Ventura situation related to ACP/HLB. The Congresswoman has also been a valuable friend on the recently renewed effort by USDA to import lemons into the United States from Argentina and this too was part of the discussion. CCM was invited to a discussion with presumed Republican candidate for President, Donald Trump, prior to a rally in Fresno. CCM Directors Curt Holmes and James Sherwood volunteered for that assignment. Independent of each other they both remarked how different his mannerisms and style were in the private setting versus the public persona. The primary subject area was water and government making the drought worse on landowners than necessary. Immigration reform was a second topic in which he clearly stated that needing workers from Mexico and other nations is a given, but people must enter the country legally to do the work. Eliminating the work force that assists growers or hotel owners is not his objective he assured those in attendance. Next week, CCM senior staff and directors will be meeting with Congressman Ken Calvert in Riverside to review the containment facility being supported by the industry and the importance of continued funds from USDA to support ACP/HLB operations in California.

Board of Supervisors' Agenda Items

Board of Supervisors' Agenda Items A. Roll Call COUNTY OF SAN DIEGO BOARD OF SUPERVISORS REGULAR MEETING MEETING AGENDA WEDNESDAY, APRIL 12, 2017, 9:00 A.M. BOARD OF SUPERVISORS NORTH CHAMBER 1600 PACIFIC HIGHWAY, ROOM 310, SAN DIEGO, CALIFORNIA