NOTES FROM CAC MEETING
January 30, 2014
President's Report (Tom Bellamore)
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2013 crop was 2nd highest total dollar return ($ 435,000,000 with 500,000,000 lbs = $ .87 per pound average)
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Labeling initiative showing fruit was grown in California
--Staff and ad agencies feel strongly about its benefits
--Preliminary test and consumer intercepts were favorable
--Tom Bellemore and Jan DeLyser have been meeting w/ packers and several packers (Mission,
Index, WesPac) are willing to try this on a trial basis. CAC's opinion is that this becomes
more important as the market becomes more fractured with more off-shore points of origin.
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With several other Mexican states seeking entry, USDA is seeking streamlined approach to U.S. markets. CAC and APEAM jointly met with USDA to provide comments on this process.
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Polyphagus Shot-Hole Borer—CAC met w/ CDFA Secretary Karen Ross and they are proposing a “Summit” for a limited number of participants (USDA, Forest Service, EPA, Congressional delegations) to highlight the problem. Other industries haven't stepped up yet, so seeking help from CDFA to highlight this.
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Pine Tree Ranch—Open House/Field Day was held last week w/ good response from growers. Will be using this more and more as outreach, especially on cultural issues.
Industry Affairs (Ken Melban)
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Water/Metropolitan Water District
--Water cost is up 234% in 10 years.
--Currently in this drought year, the southern part of state has better supply because of
banking than northern area (San Luis Obispo/Nipomo/Arroyo Grande)
Marketing (Jan DeLyser)
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All surveys show preference for California Brand continues.
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Attributed to perception of freshness, locally grown, personal attention by grower
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The number of “heavy users” is increasing as well as total market penetration
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The importance of “California Grown” continues w/ consumers checking country of origin
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Perception of California fruit is “premium” both in the markets where CAC advertising occurs and in non-ad markets.
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Customer intercepts say Ads are memorable/likable/relevant
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This year's campaign
--This year's emphasis will be “limited season”, the “limited region capable of growing
avocados” and the longer time it takes to “hand-craft” the crop—trying to increase
perception of “premium”
--Mass ads are scheduled late-April through early-September and will be trying to support crop
when it is in the market.
--Crop size is predicted to be 280,000,000 to 300,000,000
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Global AMRIC begins this summer on voluntary basis by importers. Does not include reporting price.
Production Research (Tim Spann)
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Polyphagus Shot Hole Borer
--New finding in El Cajon which is significantly south of latest finding. Found on a golf course
with numerous sycamore tree infested. Determined by DNA to be from Taiwan rather than
the northern findings in L.A. and Orange County which seem to originate in Viet Nam and
southeast Asia
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CAC sent out Request for Proposals for rootstock breeding program. Sent out worldwide and getting interest from USDA, New Zealand, South Africa
Hass Avocado Board (Emiliano Escobedo)
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After 2 years of discussion a proposal was approved to include one representative from each producing country on the International Representation Committee. They would make recommendations and report to the HAB board who continues to make the final recommendations to the Secretary of the USDA. The composition of the HAB board remains at 7 California Growers and 5 importers.
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