File - California Fresh Fruit Association
Transcription
File - California Fresh Fruit Association
35166_r1_Annual Report 2011.indd 1 7/19/11 2:08 PM LEAGUE LEADERSHIP FY 2010/11 EXECUTIVE COMMITTEE CHAIRMAN Steve Hash Chris Caratan Carol Chandler David Jackson David Marguleas VICE- CHAIRMAN Ryan Zaninovich Louis Pandol Marko S. Zaninovich, Dean Thonesen Ex Officio FY 2010/11 BOARD OF DIRECTORS Louis Pandol Secretary/Treasurer David Marguleas Chairman of the Board Steve Hash First Vice-Chairman Ryan Zaninovich Second Vice-Chairman Maria Alvarado Manectar Farms Verne Crookshanks Venida Packing, Inc. David Jackson Family Tree Farms Kent Stephens Marko Zaninovich, Inc. Anthony Balakian California Growers Tim Dayka Dayka & Hackett, LLC Casey Jones Sun Valley Packing Dean Thonesen Sunwest Fruit Company, Inc. Robert O. Bianco Anthony Vineyards, Inc. Jerry DiBuduo SunValley Farms Herbert Kaprielian CRJ Farming Co. LP Jon Tos Tos Farms, Inc. Steve Biswell Mt. Campbell Development Moe DiBuduo DiBuduo Fruit Co. Harold McClarty HMC Farms Stan Tufts Tufts Ranch LLC Nicholas Bozick R. Bagdasarian, Inc. Edge Dostal Chiquita Fresh North America George Nikolich Gerawan Farming, Inc. Scott Wallace Fruit Patch Sales, LLC Wayne Brandt Brandt Farms, Inc. Richard Elliot David J. Elliot & Son Justin Parnagian Fowler Packing Company, Inc. Chiles Wilson All State Packers, Inc. Anton Caratan Blanc Vineyards Ken Enns Enns Packing Co., Inc. Pat Ricchiuti P-R Farms, Inc. John D. Zaninovich Merritt Farms Chris Caratan M. Caratan, Inc. Tony Fazio Tri-Boro Fruit Co., Inc. Cliff Rolland Abe-El Produce Jon P. Zaninovich Jasmine Vineyards, Inc. Kirk Cerniglia Royal Madera Vineyards Ron Frauenheim Ron Frauenheim Tom Schultz Chase National Kiwi Farms Marko S. Zaninovich Marko Zaninovich, Inc. Carol Chandler Chandler Farms, LP Randy Giumarra Giumarra Vineyards Corp. Toni Scully Scully Packing Co. David Clyde Grapeman Farms dba Stevco Doug Hemly Greene and Hemly, Inc. Jim Simonian Simonian Fruit Company Ex Officios: Micky George Cliff Sadoian Stan Cosart W.F. Cosart Packing Co. Robert Ikemiya Ito Packing Company, Inc. Brent Smittcamp Wawona Packing Co., LLC league staff Barry Bedwell League President 35166_r1_Annual Report 2011.indd 2 Gabrielle Kirkland Membership Christopher Valadez Environmental & Regulatory Affairs Vicky Jones Bookkeeper Marcy Martin Trade Jaclyn Pack Office Coordinator Erin Ragnetti Administrative Assistant 7/19/11 2:08 PM Ta bl e of c on t en t s TOP TEN ISSUES 1 CHAIRMAN’S REPORT David O. Marguleas, Chairman 2 PRESIDENT’S REPORT Barry J. Bedwell, President 3 LEAGUE FINANCIAL SUMMARY 4 AGRICULTURE ISSUES 5 ENVIRONMENTAL RESOURCES COMMITTEE Paul Giboney, Chairman 7 GOVERNMENT RELATIONS COMMITTEE Carol Chandler, Chairman MEMBERSHIP COMMITTEE Ryan Zaninovich, Chairman 12 STANDARDIZATION & PACKAGING COMMITTEE Louis Pandol, Chairman 13 TRAFFIC COMMITTEE John Rast, Chairman 14 FRUITPAC BOARD Stan Tufts, Chairman 15 HEALTH BENEFITS TRUST George Caratan, Chairman 16 LEAGUE COMMITTEE MEMBERS 17 8 CALIFORNIA LEGISLATIVE REVIEW INSURANCE & FINANCIAL BENEFITS COMMITTEE Ken Enns, Chairman FEDERAL LEGISLATIVE REVIEW LABOR COMMITTEE Ryan Zaninovich, Chairman YEAR IN PICTURES 9 10 MARKETING COMMITTEE John Pandol, Chairman 11 19 20 21 LEAGUE’S AG NETWORK 23 PAST CHAIRMEN OF THE BOARD 24 To fulfill the needs of the membership while serving as the primary public policy organization advocating on behalf of the fresh grape, berry and tree fruit growers and shippers in California. 35166_r1_Annual Report 2011.indd 3 7/19/11 2:08 PM TOP TEN ISSUES Labor Laws/Card Check After failed attempts to circumvent the secret ballot process, card check was re-invented to make union representation a remedy for ‘egregious’ employer conduct affecting a secret ballot election. Under a new Administration, the potential for passage of card check legislation through the Legislature remains high. Immigration Reform/AgJOBS The latest attempt to move immigration policy without addressing economic questions related to securing an agricultural labor force proved ill-fated, ultimately leading to the defeat of the piecemeal attempt. The League advocated in favor of a solution which addresses agricultural labor in the context of both comprehensive and a more focused legislative package in recognition of the need for a stable and reliable workforce. Water Supply Issues In a state divided over questions of water conveyance, available supply, and ecosystem protection, the effort to promote a state water bond package on the 2012 ballot will begin anew, with messaging focused on providing certainty in future years. The demand on California’s water supply and infrastructure will continue to grow as demand increases in the future. Labor Costs/Minimum Wage The costs associated with a dependable workforce for cultural, harvest, and packaging continues to range from 50-70 percent of total production costs. Because labor costs significantly affect the continued economic viability of League members, the potential for government mandated increases in the minimum wage adds to the challenge of producing the highest quality fruit in the State of California. Invasive Pest Issues The League continued to work on the frontlines with top regulatory agencies to combat the devastating effect of invasive pests, such as the European Grapevine Moth, on the growing and shipping of fresh fruit, while simultaneously working with international trading partners to avoid unnecessary phytosanitary restrictions. Health Care Mandates In the wake of the passage of a massive federal health care proposal, much of the burden of providing health care for the uninsured population will likely result in added costs for businesses. Food Safety Regulations The passage of controversial food safety legislation established a framework for federal agencies to more rapidly respond to instances of foodborne illness outbreaks in what is an overall safe US food system. The League is positioned to work with key regulatory agencies to shape the implementing language of the nation’s new food safety policy, while maintaining that requirements must be commodity specific, risk-based, and supported by sound science. Workers’ Comp Costs Page 1 The potential for an increase in the rise of workers’ compensation costs was recognized by League members as an important concern, as carriers have repeatedly sought rate adjustments to cover cost increases associated with rising medical costs. Energy Costs The concern over increasing energy costs in the face of climate change policy mandates will force the energy production sector to purchase new technologies and replace production from fossil fuel sources, which will likely result in higher energy prices passed along to consumers. 35166_r1_Annual Report 2011.indd 4 7/19/11 2:08 PM Chairman’s Report It was a pleasure to serve as Chairman for the 2010/11 FY, and now to share some of my impressions of the League and its accomplishments during the past twelve months. It is especially rewarding to look back on an exceptionally busy year – filled with ample and equal parts of challenge and success – as we commemorate the 75 year milestone of the California Grape & Tree Fruit League. The League is viewed as being reliable and respected, effective and efficient, dynamic and determined. Each of you should be proud of our organization . . . The predecessor to the current day League – The California Grape & Tree Fruit Shippers – was formed in 1936 and the original structure of our organization remains fundamentally unaltered, although the overall political, economic, and social environment has obviously changed dramatically. The driving force behind the League today is the same as in its early years; being responsive to its grower members and fervently advocating and protecting the California fruit industry’s needs and interests with regulators, legislators, international trading partners, and others. These same needs led 49 producers to band together in 1936 to leverage their collective interests to negotiate fair railroad rates, and it is these same needs that make the League a compelling organization for the 300 growers and shippers who, today, rely on this organization to represent their interests in Sacramento and Washington, DC. The California Grape & Tree Fruit League is known for its pragmatic approach to working with policy makers in Sacramento and Washington, DC. The organization reflects the collective interest of the industry, where leaders set aside personal convictions in a bi-partisan political environment. As the primary public policy organization for the fruit industry, the League has adopted a realistic and sensible approach to building bridges with elected and appointed leaders. It is the League’s singular focus on preserving and enhancing growers’ livelihoods that has aided the organization’s survival for three-quarters of a century. It also ensures that this organization will continue to play a vital role in maintaining a healthy fruit industry for decades to come. The League is viewed as being reliable and respected, effective and efficient, dynamic and determined. Each of you should be proud of our organization and equally proud of the exceptional staff that helps to shape it – represented by the three directors Marcy Martin, Chris Valadez and Gabrielle Kirkland as well as the organization’s President Barry Bedwell. It has been an honor to chair the Board of Directors and to contribute in some small measure to our growth and success this past year. 35166_r1_Annual Report 2011.indd 5 Page 2 David O. Marguleas Chairman 2010/11 FY 7/19/11 2:09 PM President’s Report T he past year for the California Grape & Tree Fruit League was one of transition and helping manage change on behalf of our membership. The change in Sacramento was primarily brought on by the conversion of leadership in state government. After seven years of Governor Arnold Schwarzenegger, voters in California decisively selected Jerry Brown over challenger Meg Whitman to be their next chief executive, almost three decades after he first served in the office. The role of the League this past year especially focused on making the organization and our members relevant during this transition period. The importance of working with other like-minded organizations and finding common ground on public policy issues became increasingly important. In addition, the other areas of member service related to the non-public policy arenas of trade, standardization, packaging, and transportation were maintained at their historically high levels. The League is also celebrating a significant milestone in 2011, with its 75th anniversary. Accolades go out to the forward-thinking individuals from the California Grape and Tree Fruit Association and the California Growers and Shippers Protective League, who brought together growers and shippers from all over California to address issues of common concern. Every time I look at the names and faces of those members, both past and present, I feel pride in working for such individuals and being part of this organization. In accordance with the past practice, the League’s Board of Directors was polled on the issues most impacting their sustainability with the results varying only slightly from the past year. Labor, immigration reform, water, invasive species, health care, food safety, workers’ compensation, energy costs, and air quality regulations were once again emphasized. While the education process related to such public policy issues can be frustrating, the League made substantive progress in many areas. We know that we cannot demand respect or recognition of our members’ true value, but we can certainly do our best to communicate why maintaining the production of our members’ crops is so important to the citizens of this state and nation. Every time I look at the names and faces of those members, both past and present, I feel pride in working for such individuals and being part of this organization. Page 3 In conclusion, I would like to express my sincere appreciation to all volunteer members of the League who serve in leadership positions, whether it is on the Executive Committee, the Board of Directors, or on our many committees. Your efforts do make a difference. And finally, thanks to the staff for their continued hard work and commitment. Best of luck to all for a successful and prosperous 2011 crop year. Barry J. Bedwell President 35166_r1_Annual Report 2011.indd 6 7/19/11 2:09 PM League Financial Summary Under the supervision of the Board of Directors and the Executive Committee, League staff maintains tight fiscal control over expenditures, while maximizing opportunities for increased revenues, which are so vital to the fulfillment of League matters. The following represents the League’s revenue and expenditures for the fiscal year ending February 28, 2011 audited financials. Page 4 35166_r1_Annual Report 2011.indd 7 7/19/11 2:09 PM A g r i c u l t u r e FIRST QUARTER MARCH/APRIL/MAY Taiwan Transit Requirements: Three Mediterranean fruit fly quarantines in California impacted the transit requirements for exports to Taiwan. Gubernatorial Race: League President and several Board members met with gubernatorial candidate Jerry Brown in April to discuss important issues. Diesel Truck Rule: Under the California Air Resource Board Truck Rule, diesel trucks that were recognized as agricultural trucks were required to display proper identification by April 30. 2012 Farm Bill: Starting in May, Farm Bill hearings were held across the nation to discuss the direction of agriculture policy in advance of the 2012 Farm Bill. Immigration Reform Proposal: I s s u e s Ser ving our Membership... SECOND QUARTER JUNE/JULY/AUGUST New Zealand Import Requirements: Biosecurity New Zealand implemented new import requirements to mitigate Spotted Wing Drosophila for a number of commodities from California. Melon Fruit Fly Detection: In August, Melon Fruit Flies were discovered in agricultural production areas in the southern San Joaquin Valley and resulted in a quarantine of host commodities. CGTFL Board Votes to Support Water Bond: The League’s Board of Directors voted to support the Safe, Clean and Reliable Drinking Water Supply Act of 2010. EGVM Federal Order for Grapes: USDA issued a formal Federal Order, effective June 22, which established a quarantine area for portions of several ag-producing counties due to European Grapevine Moth (EGVM) detections. On April 29, key Senate Democrats unveiled a framework for a comprehensive immigration proposal, but did not set a deadline for accomplishing reform. Cal/OSHA Revised Heat Illness Prevention Standard: Cal/OSHA adopted revisions to the standard, which required specific provisions, such as “shade up,” when certain trigger temperatures are reached. HIRE Act: The Hiring Incentives to Restore Employment (HIRE) proposal was established to exempt employers from paying social security payroll tax in 2010 and offered a tax credit to employers. European Grapevine Moth Quarantine: In May, a regulated area of approximately five miles in radius around each site was created and encompassed two Fresno County detections. Section 18 Issued for Mentor: At the request of the League, Department of Pesticide Regulation granted an emergency exemption order for the post-harvest use of Mentor on nectarines and peaches. Page 5 Export Database: The League secured a grant through the California Department of Food and Agriculture to expand the tree fruit export database. Ag Burn Phase-Out Delayed: The San Joaquin Air Quality Control District Board voted to delay a complete phase-out of open burning. 35166_r1_Annual Report 2011.indd 8 Export Grape and Plum Act: The Board recommended that the League seek an amendment to the Export Grape and Plum Act to allow for quarter-pound minimum bunch weight in containers less than two pounds. Ag Overtime: Governor Schwarzenegger vetoed SB 1121 (Florez) known as the “ag overtime bill” on July 28. The proposed bill would have required overtime for agricultural workers after 8 hours daily and 40 hours weekly, rather than the current 10 hours daily and 60 hours weekly. Cargo Screening Requirements: Cargo that was transported on passenger aircraft had to be screened at 100 percent, effective August 1, 2010. Family Farm Estate Tax Legislation: Senator Dianne Feinstein introduced legislation that deferred the payment of estate taxes for small family farms. 7/19/11 2:09 PM A g r i c u l t u r e One issue at a time THIRD QUARTER SEPTEMBER/OCTOBER/NOVEMBER I s s u e s FOURTH QUARTER DECEMBER/JANUARY/FEBRUARY Card Check Vetoed: DPR Announced Decision to Register Methyl Iodide: NAPPO Annual Meeting: Congress Completes Food Safety Bill: Governor Schwarzenegger vetoed SB 1474 (Steinberg), also known as the “back door” version of card check, because it represented the same type of assault on the democratic process as previous versions of card check legislation. The League was represented as a participant in the North American Plant Protection Organization (NAPPO) annual meeting, which is a regional organization established by the governments of the US, Canada, and Mexico. Senate Food Safety Bill Postponed: Food safety legislation was postponed until after the November 2 elections. Williamson Act Legislation Signed: Governor Schwarzenegger signed AB 2530, under which, counties will be allowed to implement new Williamson Act contracts, reduced by 10 percent in both duration and tax relief, for the property holder. Japan Proposes Scholar Registration on Stone Fruits: The League worked with Scholar’s registrant, Syngenta Crop Protection, USDA Foreign Agriculture Service, and Japan’s ministries to facilitate acceptance of the US maximum residue level for Scholar. New California Governor: Governor Jerry Brown was elected as California’s new Governor on November 2, 2010. FDA and USDA Form Produce Safety Program: The US Department of Food and Agricultural and the Food and Drug Administration (FDA) announced a three-year partnership to provide produce growers and packers with food safety resources. Canadian Import Requirements: The Dispute Resolution Corporation (DRC) issued a notice that, effective December 2010, the Canadian Food Inspection Agency required shipments of fresh fruit and vegetables coming into Canada, labeled with a federal produce number or Canadian DRC Membership number, to be part of the submission of import documentation. Assemblyman-elect Ricardo Lara flew into Fresno in November to meet with League staff and tour member operations. 35166_r1_Annual Report 2011.indd 9 Late December, Senate Majority Leader Harry Reid worked with Senate Republicans to pass a standalone food safety bill by voice vote, sending it to the house. Federal Estate Tax Update: President Obama signed into law an $858 billion tax package that included estate tax language which will allow a married couple to jointly protect up to $10 million of assets from federal estate tax. CARB Approves Truck Amendments: The California Air Resources Board passed the on-road truck rule proposed amendments on December 17 by a unanimous vote, which delayed implementation dates of the compliance schedule. Schwarzenegger, Brown Administrations Make Appointments: Outgoing Governor Arnold Schwarzenegger appointed former State Senator Carole Migden to the Agricultural Labor Relations Board. Governor Jerry Brown announced an early key appointment of Assemblyman John Laird. CA Requirements for Refrigerant Management: On January 1, 2011, operators of refrigeration systems that use more than 50 pounds of high global warming potential refrigerants were required to comply with the new California Air Resources Board regulation. Mexican Tariff Update: January 2011, US Department of Transportation Secretary Ray LaHood shared with Congress and the government of Mexico an initial concept document for a long-haul cross-border Mexican trucking program. Extreme Card Check Bill Introduced: SB 104 was introduced on January 12 by Senate President Pro Tem Darrel Steinberg. This proposal differed from previous versions of card check in that the Agricultural Labor Relations Board would be required to make a non-appealable administrative decision. USDA Secretary Chief of Staff Karen Ross Named CDFA Secretary: Governor Brown announced the appointment of Karen Ross to Secretary of the California Department of Food & Agriculture. Page 6 Southern California Assemblyman-Elect Visits Valley: December 2010, California Department of Pesticide Regulation announced the registration of methyl iodide under emergency regulations. 7/19/11 2:09 PM ENVIRONMENTAL RESOURCES COMMITTEE Overseen by Chairman Paul Giboney (M. Caratan, Inc.) The Environmental Resources Committee is the most active committees, due to the tremendous regulatory oversight that exists in California. POLICY WORK The Committee reviewed the Safe, Clean and Reliable Water Supply Act of 2010, which was designed to provide funding for water infrastructure. The Act drew broad support from agriculture and was regarded as a key policy priority area for the Schwarzenegger Administration. The Board voted to support the Act during its June 2010 meeting. The Federal Endangered Species Act maintained its status as a prime focus in the environmental policy arena because of court cases requiring biological opinions for mitigation measures to protect endangered or threatened species or habitats as part of a consultation requirement. The US Environmental Protection Agency (EPA), the US Fish & Wildlife Service, and the National Marine Fisheries Service were charged with reviewing more than three dozen active ingredients. The Committee worked to assess impact from the resulting biological opinion decisions and potential chemical use restrictions on agricultural production. The Committee worked to provide comment to state and regional air regulators regarding the need to maintain agricultural burning. Due to data received from Committee members on production costs, frequency of burn disposal practice and comparative analysis of cost differences between continuing the burn disposal practice, versus alternatives, the League was instrumental in earning support from the district to extend the limited practice for segments in agriculture beyond the June 2010 deadline for the ag burn rule. Page 7 The Committee analyzed the debate at the Federal level on food safety legislation. The back and forth maneuvering in both the US House and Senate set up a pathway to moving what became known as the Food Safety Modernization Act. The Committee guided staff on legislative proposals, which included rejecting the proposal to provide the US Food and Drug Administration with the broad authority to institute a quarantine of a food based on a broad geographic area. The League was able to work as part of a coalition to communicate disapproval and terminate the effort to extend broad quarantine authority. December 2010, the League learned of an effort by Costco that would require its suppliers to participate in a social compliance audit program. The League worked with other agricultural organizations to address the shared concerns from membership. A joint letter from agricultural organizations (including the League) was sent to Costco regarding initiatives mandated for its vendor base. Costco management and representatives from a handful of ag organizations, including the League, met to discuss potential alternative approaches for verification. PLANT HEALTH 35166_r1_Annual Report 2011.indd 10 IRRIGATED LANDS INVASIVES The League represented grapes and “fruits other than grapes” during the 2010 and 2011 seasons during the European Grapevine Moth (EGVM) quarantine. After EGVM detections in Fresno County, a regulated area of approximately five miles in radius was established. About six weeks later, US Department of Agriculture (USDA) issued a formal Federal Order which established a quarantine area for portions of several ag-producing counties. August 2010, Melon Fruit Fly was discovered in agricultural production areas in the southern San Joaquin Valley and resulted in a quarantine of host commodities. The League worked with regulatory agency officials and trading partners to mitigate the impact of the quarantine. The presence of the Spotted Wing Drosophila in 23 California counties caused some trading partners to implement mitigation requirements for the movement of several host commodities. The League worked with the California Tree Fruit Agreement to address stone fruit phytosanitary issues. A single Light Brown Apple Moth detection was made in August 2010 in Fresno County. The single find did not trigger a quarantine, although delimitation activities were started immediately by CDFA and were monitored throughout the season. PLANT HEALTH MATERIALS At the request of the League, Department of Pesticide Regulation granted a Section 18 (emergency exemption) order for the postharvest use of Mentor on nectarines and peaches. The League worked with Scholar’s registrant, Syngenta Crop Protection, USDA Foreign Agriculture Service, and Japan’s ministries to facilitate the acceptance of the US maximum residue level for Scholar. December 2010, California Department of Pesticide Regulation announced the registration of methyl iodide under emergency regulations. The League continued to work with DuPont since 2007, following a request that the manufacturer withdraw the cancellation of Lannate (Methomyl) usage on table grapes until the industry could respond to the EPA’s risk assessment. The League provided technical comments which permitted the use on grapes to continue. Subsequently, EPA published a cancellation notice on all grape crops in early 2011. DuPont was allowed to continue to sell and distribute all existing stock through June 2012. INVASIVE SPECIES AIR QUALITY 7/19/11 2:09 PM GOVERNMENT RELATIONS COMMITTEE Overseen by Chairman Carol Chandler (Chandler Farms, LP) Committee members meet with legislative and regulatory officials to discuss top issues on an annual trip to Sacramento, handles tax issues, and interfaces with FruitPAC. The Government Relations Committee was responsible for coordinating an annual trip to Sacramento, analyzing issues pertaining to taxation and increasing the League’s visibility in both Washington, DC and Sacramento. Under direction from the Government Relations Committee, the League coordinated its Annual Sacramento Fruit Delivery Trip on August 25, 2010. This trip was an opportunity to increase visibility by providing legislators, regulators, and legislative staff with a reminder of the value of our fresh grape, berry, and deciduous tree fruit communities. For 2010, State leaders were presented with a uniquely designed League container packed delicately with delicious fruit. More than 115 League fruit deliveries were made. A key priority for the Committee was a review of the impact of the California state budget on agriculture. The Committee identified key concerns, which included the proposed elimination of general fund dollars for the California Fair Network, a significant $15 million cut proposed for the Department of Food and Agriculture, as well as an additional $12.8 million general fund reduction for the State Water Resources Control Board; the impact of which could lead to significant fee increases. Fifteen League members participated in the 2011 Government Relations trip to Sacramento. On March 1, California Natural Resources Agency Secretary, John Laird, provided a briefing, which reflected on his past engagement on invasive species issues and current efforts, through the Department of Water Resources, on the Bay/Delta Conservation program, to make water availability and environmental restoration equal goals. Newly-appointed California Department of Food and Agriculture Secretary, Karen Ross, also met with trip participants and shared that, given challenges with resources and funding, the Department was tasked with placing a high priority on protecting California agriculture from invasive pest threats. League members were joined by various members of the Legislature and key figures from regulatory agencies during its evening reception event. A highlight of the evening was a special visit made by Governor Jerry Brown during the League’s dinner event on the evening of March 1. On March 2, trip participants were joined by Assemblyman Henry T. Perea (D-Fresno) for breakfast and met with Senator Anthony Cannella (R-Ceres), Assemblywoman Linda Halderman (R-Clovis), Assemblywoman Fiona Ma (D-San Francisco), and Senator Michael Rubio (D-Bakersfield) at the State Capitol. Participants included: David Marguleas, Sun World International, LLC; Carol Chandler, Chandler Farms, LP; Jerry DiBuduo, Sun Valley Farms; John Tos, Tos Farms, Inc.; Ken Enns, Enns Packing Co., Inc.; Maria Alvarado, Manectar Farms; Micky George; Monte Peckinpah, Valent USA Corporation; Nick Bozick, R. Bagdasarian, Inc.; Pat Ricchiuti, P-R Farms, Inc.; Peter Baldwin, AON Risk Services; Randy Giumarra, Giumarra Vineyards Corporation; Stan Tufts, Tufts Ranch LLC; Virginia Hemly Chhabra, Greene and Hemly, Inc.; and Wayne Brandt, Brandt Farms, Inc. Page 8 Labor & Workforce Development Agency Undersecretary, Doug Hoffner, met with the League group and offered caution on the challenges ahead with managing the State’s unemployment insurance program (through the Employment Development Department), recognizing that the program was insolvent. California Environmental Protection Agency Undersecretary, Cindy Tuck, provided an overview of agency initiatives, which included an overview on the Department of Toxic Substances Control Green Chemistry Initiative. The initiative affects companies and chemical manufacturers in their design and creation of products and processes with the goal of reducing or eliminating the use of hazardous substances. SACRAMENTOWASHINGTON, DCTAX 35166_r1_Annual Report 2011.indd 11 7/19/11 2:09 PM INSURANCE & FINANCIAL BENEFITS COMMITTEE Overseen by Chairman Ken Enns (Enns Packing Co., Inc) This committee oversees the group property insurance program, crop insurance endorsements, workers’ compensation insurance group program, and group retirement program. Under the leadership of Committee Chairman Ken Enns (Enns Packing Co., Inc.), this Committee worked through numerous meetings, as directed by the Executive Committee, beginning in the spring of 2010, to review the League’s workers’ compensation program. The review process began with the formation of an Ad Hoc Committee, and included: Ken Enns (Chair), Steve Biswell (Mt. Campbell Development), Tony Fazio (Tri-Boro Fruit Company), and Doug Reader (Fruit Patch Sales, LLC). The purpose of the Ad Hoc Committee was to establish a workers’ compensation program that provides a discount and high quality service to individual League members, while providing an incremental revenue stream back to the League. Together, the Committee created a list of the most important elements to League grower-shipper members to include/offer via a workers’ compensation group program: Page 9 »» Provide Risk Management Assessment »» On-Site Inspections »» Ability to offer tailored safety program(s) applicable to packing and growing operations »» Group rate pricing »» Loss prevention »» Flexibility related to renewal dates »» Discount available, based on reduction of loss class »» Provide updates to League members about industry safety success stories »» Offer coverage for both packinghouse and field operations »» Access to legal department related to loss time GROUP PROPERTY INSURANCE Through the Group Property Insurance Program, League members realize considerable cost savings and enhanced coverages when compared with existing insurance policies; in some cases offsetting the cost of annual League membership. The program is marketed by Buckman-Mitchell, Inc. The underwriter of the program, Farmland Insurance/Nationwide Agribusiness, is an A+15 rated agribusiness insurance specialist. Group participants are eligible to receive dividends based on overall group performance results. RETIREMENT PROGRAM League members are eligible to participate in a full-service retirement program with Alerus Retirement Solutions. This specialized program offers tremendous value to participants because members receive additional services without the added charges and fees. WORKERS’ COMP League members are eligible to receive a six percent discount on their workers’ compensation coverage through State Compensation Insurance Fund. CROP INSURANCE The California Grape & Tree Fruit League has endorsed Rain and Hail Insurance Service, L.L.C. for 14 consecutive years and bases the value of the partnership on the top quality service and their solid dedication to California specialty crops. There are plenty of crop insurance providers to choose from, although all insurance rates and procedures are the same. Rain and Hail works with numerous agencies throughout California to provide this coverage. After the priorities were created, a memo was distributed to the League’s Associate broker members to request assistance to obtain the names of workers’ compensation insurance carriers as candidates for an endorsement program. Of those brokers recommended, a letter of request for proposal was submitted to each carrier. There were four carriers who responded and a meeting was held with each “carrier”. The Insurance & Financial Benefit Committee heard from leading carriers during a meeting and planned to offer a recommendation to the Board of Directors for consideration prior to 2012. Quality 35166_r1_Annual Report 2011.indd 12 Group Program From left: David Zanoni (USDA Risk Management Agency) took a field tour and is shown talking with League Director Ken Enns, Enns Packing Co., Inc. in August 2010. The League arranged the tour to provide the Kansas City-based representatives with an understanding of fresh fruit production. Discount Added benefit 7/19/11 2:09 PM LABOR COMMITTEE Overseen by Chairman Ryan Zaninovich (V.B. Zaninovich & Sons, Inc.) This committee monitors the complex set of agricultural labor regulations on state and federal levels. The League’s Labor Committee was strongly engaged in efforts ranging from opposition to card check legislation at the State level to grassroots campaign efforts to secure agricultural labor through Federal legislation. sue opposition to legislative proposals designed to increase the minimum wage on California’s employers. They also worked to build new relationships with key Brown Administration appointees, including Labor Secretary Marty Morgenstern, a longtime confidant of Governor Brown on labor-related issues. Not surIn 2010, the Committee worked to improve heat illness regula- prisingly, the League prepared for the introduction of another tory compliance throughout the industry by emphasizing par- card check proposal from the Legislature. On January 12, the ticipation in heat stress prevention workshops. The Committee, most insidious version of card check legislation was introduced, through League staff, provided strong endorsement of a series SB 104, which jeopardized the ability of farm employees to utilize of workshops held statewide, in conjunction with the California the secret ballot election process. With support from the ComDepartment of Occupational Safety and Health (Cal/OSHA), to mittee, the League embarked on an aggressive plan to develop a educate growers, field supervisors, and farm labor contractors on relationship with Governor Brown to impress upon him the imthe regulations and proper training. Additionally, the Commit- portance of maintaining the secret ballot election and willingness tee worked to review and assess proposed modifications to the to work with the Administration to review and discuss concerns heat stress regulations which clarified natural means of shade, related to the Agricultural Labor Relations Act and its protection of the farm employee, while maintaining balDespite the bill’s creative language, the Governor underance in applicastood that at its core, the proposal represented the same tion to both the type of assault on democracy, business and workers as in employer and union organizaprevious legislative proposals. tions. -Barry Bedwell, League President access to water, and shade requirements, as well as new requirements for high-heat procedures. The League was able to provide comment to the Cal/OSHA Board, endorsing the interpretation respecting trees and vines as quality shade, in addition to added flexibility for employees for whom providing a shade structure may be infeasible. The Committee recommended swift action against Senate Bill 1121, which would require overtime for agricultural workers after 8 hours daily and 40 hours weekly, rather than the current 10 hours daily and 60 hours weekly. Similarly, the Committee strongly moved to recommend opposition to Senate Bill 1474, the 2010 version of card check. In September, the League, together with a coalition of agricultural and business organizations, worked to secure a veto of the card check legislation. card check 35166_r1_Annual Report 2011.indd 13 heat illness prevention Governor Protects Jobs and Farm Worker Rights By Rejecting Senate Bill 1474 Sacramento, CA (PRWEB) October 1, 2010 -- A coalition of business and agricultural organizations today praised Governor Schwarzenegger’s veto of Senate Bill 1474 (Steinberg), which they said would have imposed a backdoor method for unionizing workers through an undemocratic card check program. “Despite the bill’s creative language, the Governor understood that at its core, the proposal represented the same type of assault on democracy, business and workers as in previous legislative proposals,” said Barry Bedwell, president of the California Grape & Tree Fruit League, a coalition member. “Every California farmer and farm employee should be grateful to Governor Schwarzenegger for standing up for the right to a secret ballot,” said Tom Nassif, President and CEO of Western Growers. In his veto message, the Governor echoed the concerns of farmers and the business community, saying that the “provisions of SB 1474 represent a serious departure from existing law . . . Overturning and reversing secret ballot election results should not be taken lightly and may be appropriate in only the most egregious cases. For these reasons, I am unable to sign this bill.” The California Farm Bureau Federation said the Governor’s veto also sends a strong signal about getting the state’s economy back on track. “The Governor understood that signing a bill like SB 1474 into law would have sent the wrong message to all businesses – not just those of us in agriculture,” said Rich Matteis, the Administrator for the Farm Bureau. “His action protects our fragile economy and makes a strong statement about his concern for business and jobs.” Coalition Against SB 1474: Agricultural Council of California, Alliance of Western Milk Producers, Allied Grape Growers, California Association of Wheat Growers, California Association of Winegrape Growers, California Bean Shippers Association, California Chamber of Commerce, California Citrus Mutual, California Farm Bureau Federation, California Grain and Feed Association, California Grape and Tree Fruit League, California Pear Growers Association, California Seed Association, California State Floral Association, California Warehouse Association, California Women for Agriculture, Grower Shipper Association of Central California, Grower-Shipper Association of Santa Barbara and San Luis Obispo Counties, Family Winemakers of California, Nisei Farmers League, Pacific Coast Renderers Association, Pacific Egg & Poultry Association, Ventura County Agricultural Association, Western Growers, Western United Dairymen, Wine Institute. ### Page 10 In 2011, the Committee assessed new challenges at the State level as a result of a new gubernatorial administration. The League, with direction from the Labor Committee, worked to quickly is- California Farmers & Businesses Applaud Governor’s Veto of Card Check Legislation “no-match” regulation PRWeb ebooks - Another online visibility tool from PRWeb 7/19/11 2:09 PM Marketing Committee Overseen by Chairman John Pandol (Pandol Bros., Inc.) Committee Focus is on market access at domestic and international levels, along with other issues such as the Mexico Stone Fruit Export Program, proposed phytosanitary measures, and foreign trade issues. As of August 1, 2010, all cargo transported on passenger aircraft would be screened at 100 percent. League provided information to members about the change in protocol and anticipated implementation date. League staff worked with US Department of Agriculture (USDA) Animal Plant Health Inspection Service (APHIS) to resolve industry concerns in a review of the current work plan requirements and restrictions for California stone fruit to Chile, as the trading partner continued to monitor imports of US stone fruits for the presence of Brown Rot during the 2010 season. The League’s Board of Directors voted, during its March 22, 2010 meeting, to support the date (April 10) that Chilean table grapes would have to meet US No. 1 grade standards. The League’s export database provides current information for 25 key international markets for California stone fruit, which provided shippers/marketers with the market intelligence necessary for meeting import requirements. The League worked with Scholar registrant, Syngenta Crop Protection, along with USDA Foreign Agriculture Service, and Japan’s Ministries of Health and Foreign Affairs to facilitate acceptance of the US maximum residue level for scholar. Scholar (Fludioxonil) is a post-harvest fungicide used on a number of agricultural commodities including: apricots, peaches, plums, and nectarines. support the absence of detections of SWD from within commercially produced apricots, peaches, plums, and nectarines from California. USDA published a proposed rule to establish, under the Perishable Agricultural Commodities Act (PACA), that a supplier forfeits its trust rights if it enters into a post-default payment agreement, unless the agreement was in writing and less than 180 days from the date due. The League submitted comments to USDA that emphasized that PACA trust protections were created to assure that the proceeds from produce are used to pay produce suppliers. The League represented members with the Produce Traceability Initiative by providing input via the Association Interest Group, of which the League was a member. The Specialty Crop Farms Bill Alliance (SCFBA) was reactivated in preparation for the 2012 Farm Bill. The League was an active participant in the Trade, Research, and Conservation groups as well as a member of the SCFBA steering committee. California exports to Taiwan were restricted through the Los Angeles and Long Beach ports of exit, due to the Mediterranean fruit fly quarantine. The restrictions were rescinded on September 20, following California’s successful eradication of the Mediterranean Fruit Fly. The League worked with the California Table Grape Commission to advocate for resolve from the current administration to end Mexican Retaliatory tariffs, which were instituted on American products in March 2009, in response to the elimination of the cross-border trucking program agreed to under the North American Free Trade Agreement. Page 11 There were 20 participants in the 2010 Stone Fruit Mexico Export Program and the total volume of stone fruit exported into Mexico was more than 2.8 million cartons. Exports by commodity: apricots 98,034 cartons; peaches 1,640,000 cartons; plums 669,699 cartons; and nectarines 478,538 cartons. Historical Stone Fruit Export Shipments - Mexico 10-Year Annual Average is 2.23 million cartons 2010 Exports 2.9 Million Cartons Biosecurity New Zealand issued an amendment to the US in May 2010, as emergency mitigation to the risks posed by Spotted Wing Drosophila (SWD), Drosophila suzukii. The League worked to provide USDA APHIS with additional data to support the uncertain host status of stone fruits and provided pest detection data to Exports 35166_r1_Annual Report 2011.indd 14 Phytosanitary Tariffs International Markets 7/19/11 2:09 PM Membership Committee Overseen by Chairman Ryan Zaninovich (V.B. Zaninovich & Sons, Inc.) This committee explores membership opportunities and oversees the communication to current and prospective members about the value of membership. Despite the difficult economic climate, membership in the California Grape & Tree Fruit League has remained strong and yielded a net gain of 14 members. We believe this strength is evidence that the League demonstrates the value of being part of an organization where the member’s resources are used in the most efficient manner to maximize benefits. CHANGES IN MEMBERSHIP 35 30 25 20 In preparation for the 75th An- 15 niversary of the League, the Membership Committee created 10 a Historical Sub-committee to manage the creation of a presen5 tation that reviewed the League’s history. The information was 0 in a format that could be eas2006/07 FY 2007/08 FY ily shared with non-members to New Members provide a communication piece which related to the history of the organization and the many individual stories of those involved in fresh fruit production in California. 2008/09 FY 2009/10 FY 2010/11 FY Resignation/Terminations The Sub-Committee Chairman Cliff Sadoian led the committee’s main projects: to create a historical video and booklet, both of which reviewed the organization’s “75 Years of Achievement”. The video was first shown during the 75th Annual Membership Meeting, held on March 14. Members could also view the video on the League’s web site (www.cgtfl.com) or obtain a free copy from the office. Recruitment 35166_r1_Annual Report 2011.indd 15 Value Outreach Page 12 Outreach efforts to non-members were focused on cherry operations in the north Valley, as well as fresh berry growers and shippers. Membership Committee Chairman Ryan Zaninovich focused his year as chairman on exploring a broader commodity representation, which led to a thought- The League’s 75 Years of Achievement video presentation was shown during the ful analysis of each respective industry. As a result, the or- 75th Annual Meeting on March 14, 2011 at the Rancho Las Palmas Resort. ganization welcomed 30 new members to the League. Retention 7/19/11 2:09 PM STANDARDIZATION & PACKAGING COMMITTEE Overseen by Chairman Louis Pandol, (Pandol Bros., Inc.) This committee oversees federal and state regulations that apply to fruit maturity, quality standards, packaging standards, container, and product handling research. The League’s Board of Directors voted to take action to amend the Export Grape and Plum Act. A proposal was submitted to the USDA’s Agricultural Marketing Service to propose a reduction in the minimum bunch weight requirements for table grapes from a one-half-pound to a one-quarter-pound minimum. The proposal was approved in March 2011. The League initiated a discussion recognizing that there may be interest from within the industry to obtain separate PLU codes for table grape varieties currently under a “catch-all” code. Should the industry provide guidance on the value and need for additional codes, the League would be in a position to support a PLU code request application. Before moving forward, the League planned to provide outreach to industry in order to determine interest. Some discussion took place related to the desire among shippers to include information on the PLU that was “color” specific, not “variety” specific. tion Advisory Committee and the Standardization Advisory Committee. Both committees make recommendations to the California Department of Food & Agriculture (CDFA) secretary on the annual budget and necessary fees of the program it oversees. Specifically, the Standardization Advisory Committee oversees the department’s Standardization Program, which enforces laws and regulations governing minimum standards for maturity, quality, size, and packaging of more than 30 major agricultural commodities. The Shipping Point Inspection Advisory Committee supervises the Shipping Point Inspection Program, which provides third party grading and certification services to the fruit, nut, and vegetables industries. The industry-funded program supports agricultural producers, packers, shippers, and processors by providing a nationally and internationally recognized grading and certification service. League members include: Maria Alvarado (Manectar Farms), Shipping Point Inspection Advisory Committee, Louis Pandol (Pandol Bros., Inc.), Chairman of the Shipping Point Inspection Advisory Committee and Standardization Advisory Committee; Dennis Parnagian (Fowler Packing Company, Inc.), Shipping Point Inspection Advisory Committee; and Kerry Whitson (Golden Maid Packers), Standardization Advisory Committee. Page 13 The United Fresh Produce Association, Produce Marketing Association, and Canadian Produce Marketing Association adjusted milestones for the Produce Traceability Initiative. Milestones 4 and 5, which call for case labeling, were adjusted to fall in line with Milestone 6, which calls for receivers to record or capture the data from case labels. Milestones were established under the premise that different sectors of industry would be able to incorporate various practices along a timeline leading to a full supply chain implementation in 2012. League members have continued to provide valuable service to the industry as volunteers on the Shipping Point Inspec- Labeling Supply Chain PackagingMinimum 35166_r1_Annual Report 2011.indd 16 7/19/11 2:09 PM TRAFFIC COMMITTEE Overseen by Chairman John Rast (Rast Produce Company, Inc.) This committee monitors the Interstate Commerce Commission regulations, railroad operating practices, loading rules, and claim procedures. The 2010 season served as the third successful season for a growing partnership between CH Robinson Worldwide, Inc. (CHR) and the California Grape & Tree Fruit League. The partnership is under the guidance of the Traffic Committee, which is responsible for transportation issues such as Interstate Commerce Commission regulations, railroad operating practices, loading rules, and claim procedures. Through the partnership with CH Robinson, a rebate is provided to CGTFL for each load moved by a shipper member that uses their service, which further strengthens the organization’s advocacy efforts. More than $125,000 in rebates has been provided to the League since the partnership was started in 2008. For the shipper, the benefit is realized in competitive pricing and access to the resourceful CHR representatives, who are tuned-in to the needs of the fresh grape, berry, and tree fruit industries. All members benefit from the weekly transportation reports provided by CH Robinson via email and through the League’s web site. Reports include the latest developments in the transportation market regarding factors that are influencing availability and pricing. Additionally, CH Robinson representatives keep a pulse on the transportation market, and provide quarterly reports to the Board of Directors with detailed market characteristics. Page 14 Refrigerated shipments 35166_r1_Annual Report 2011.indd 17 Demand Regulation Equipment shortages 7/19/11 2:09 PM FruitPAC Board FruitPAC is the League’s Political Action Committee, which raises funds through three annual activities – the Harvest Event in the fall, the Annual Meeting Raffle in the spring, and the positive check-off program, which allows League members to authorize up to eight percent of their membership dues for political expenditures. For 2010, FruitPAC contributed over $47,000 combined to both State and Federal races. FruitPAC successfully raised $18,000 from the 2010 Harvest Event, $11,400 from the 2010 Annual Meeting Raffle, and $25,000 from the positive check-off program. Gloria and George Soares (Kahn, Soares & Conway, LLP) purchased winning ticket No. 16 for the October 2010 FruitPAC Harvest Event reverse raffle. From left: George Caratan (Blanc Vineyards), Rep. Jim Costa (D-CA), and Jon P. Zaninovich (Jasmine Vineyards) pictured at a League event March 2011. CHAIRMAN Stan Tufts (Tufts Ranch LLC) VICE CHAIRMAN John D. Zaninovich (Merritt Farms) SECRETARY David Jackson (Family Tree Farms) Page 15 Robert Ikemiya (Ito Packing Company, Inc.) Herbert Kaprielian (CRJ Farming Co. LP) David Marguleas (Sun World International, LLC ) Louis Pandol (Pandol Bros., Inc.) Cliff Sadoian (Cliff Sadoian & Associates) 35166_r1_Annual Report 2011.indd 18 7/19/11 2:09 PM HEALTH BENEFITS TRUST The Trustees oversee the program that provides subsidies in relation to healthcare premiums for two basic employee health plans designed for farm workers. The plans continued to be available during the 2010/11 FY and were exclusive to League members through United Agricultural Benefits Trust (UABT), a nonprofit healthcare cooperative based in Irvine that provides insurance to about 15,000 Californians and Arizonans, mostly those employed in agriculturerelated positions. The Affordable Care Act was signed by Congress in March 2010, with one element of the act mandating that employers and insurance carriers transition toward coverage that sets no annual limits on essential benefits. In 2011, the annual limit on essential benefits was set at $750,000. However, the annual limit for UABT plans remained the same as currently established because UABT successfully obtained a waiver for the restricted annual limits requirements. This waiver was granted to UABT in September 2010 and applied to existing plans with an effective date of January 1, 2011. The current provisions under the waiver are good for one year and will require that the carrier reapply for the waiver through 2014. To qualify for the waiver, UABT demonstrated to the Department of Health and Human Services that the health plans were already in place prior to September 23, 2010 and that individuals on the plan would experience either a substantial increase in premiums or decrease in access to benefits as a result of the mandated annual coverage requirements (e.g. employers dropping/cancelling employee health plans). The Affordable Care Act has instituted a “phased-in” approach to increase the annual limits. Limits are set to progress to $1.25 million in 2012, $2 million in 2013 and no annual limits on essential benefits coverage by 2014. CHAIRMAN Chairman George Caratan (Blanc Vineyards) Jim Bates (Fowler Packing Company, Inc.) John Colbert (Green Leaf Farms, Inc.) Phil Herbig (Enns Packing Co., Inc.) Jim Simonian (Simonian Fruit Co.) Page 16 35166_r1_Annual Report 2011.indd 19 7/19/11 2:09 PM League Committee members ENVIRONMENTAL RESOURCES CHAIRMAN Paul Giboney, M. Caratan, Inc. VICE CHAIRMAN Steve Hash, Steve Hash Farms Jim Bryan, Jasmine Vineyards, Inc. Moe DiBuduo, DiBuduo Fruit Co. Nat DiBuduo, Allied Grape Growers Eugene Enns, Wes Pak Sales, Inc. David Fenn, Sun World International, LLC Steve Frauenheim, Scattaglia Growers & Shippers Micky George, Micky George Virginia Hemly Chhabra, Greene and Hemly, Inc. Mike Hemman, DuPont Crop Protection Cheryl Herbig, Enns Packing Co., Inc. Cindy Ibrahim, La Vina Ranch Robert Ikemiya, Ito Packing Company, Inc. Richard Machado, Agrian Inc. Andrew J. Pandol, Pandol Bros., Inc. Cliff Rolland, Abe-El Produce Cliff Sadoian, Cliff Sadoian & Associates Judy Stewart-Leslie, CCV Table Grape Pest & Disease Control District Gary Van Sickle, California Tree Fruit Agreement John D. Zaninovich, Merritt Farms GOVERNMENT RELATIONS CHAIRMAN Carol Chandler, Chandler Farms, LP CHAIRMAN Ken Enns, Enns Packing Co., Inc. Ed Bolger, Wells Fargo Insurance Services Joe Cacace, Enns Packing Co., Inc. Tony Fazio, Tri-Boro Fruit Co., Inc. Brian Laird, Rain and Hail Insurance Service Nelda Lewis, Pan American Insurance Agency Doug Reader, Fruit Patch Sales, LLC Brent Swanson, Buckman-Mitchell, Inc. Lyle Willems, Lyle & Becky Willems LABOR CHAIRMAN Ryan Zaninovich, V. B. Zaninovich & Sons, Inc. FIRST VICE CHAIRMAN Nicholas Bozick, R. Bagdasarian, Inc. SECOND VICE CHAIRMAN Kerry Whitson, Golden Maid Packers Maria Alvarado, Manectar Farms Ron Barsamian, Barsamian & Moody, Attorneys at Law Carol Chandler, Chandler Farms, LP Greg Feaver, Enns Packing Co., Inc. Dan Gallegos, Marko Zaninovich, Inc. Joe Garcia, Jaguar Labor Contracting Micky George, Micky George Bob Greiner, HMC Farms Nelda Lewis, Pan American Insurance Agency Rick Milton, Rick Milton Cliff Rolland, Abe-El Produce David Ysusi, DiBuduo & Defendis Insurance Brokers Andy Zaninovich, Jasmine Vineyards, Inc. John D. Zaninovich, Merritt Farms MARKETING CHAIRMAN John Pandol, Pandol Bros., Inc. VICE CHAIRMAN Harold McClarty, HMC Farms David Berg, David H. Berg & Co., Inc. Chris Caratan, M. Caratan, Inc. Edge Dostal, Chiquita Fresh North America Page 17 Maria Alvarado, Manectar Farms Peter Baldwin, Aon Risk Services Moe DiBuduo, DiBuduo Fruit Co. Micky George, Micky George Randy Giumarra, Giumarra Vineyards Corp. David Jackson, Family Tree Farms Herbert Kaprielian, CRJ Farming Co. LP Drake Larson, Drake Larson Ranches David Marguleas, Sun World International, LLC Pat Ricchiuti, P-R Farms, Inc. Blair Richardson, Wes Pak Sales, Inc. Cliff Rolland, Abe-El Produce Cliff Sadoian, Cliff Sadoian & Associates Todd Sanders, California Apple Commission Toni Scully, Scully Packing Co. John Tos, Tos Farms, Inc. Stan Tufts, Tufts Ranch LLC INSURANCE & FINANCIAL BENEFITS 35166_r1_Annual Report 2011.indd 20 7/19/11 2:09 PM League Committee Members Tony Fazio, Tri-Boro Fruit Co., Inc. Mark Flaming, Maxco Supply Inc. Darrel Fulmer, Sun Fresh International LLC Steve Hash, Steve Hash Farms Charlene Hightower-Wylie, Marko Zaninovich, Inc. David Jackson, Family Tree Farms Michael Little, V.B. Zaninovich & Sons, Inc. Rodney L. Milton, Rodney L. Milton Kathleen Nave, California Table Grape Commission John Rast, Rast Produce Company, Inc. Michael Reimer, Brandt Farms, Inc. Pat Ricchiuti, P-R Farms, Inc. Michael Sarabian, Sarabian Farms David Silva, Dayka and Hackett, LLC Gordon Smith, California Tree Fruit Agreement Sam Stewart, Wes Pak Sales, Inc. David Stone, Valhalla Sales & Marketing Co. Scott Wallace, Fruit Patch Sales, LLC Kerry Whitson, Golden Maid Packers Brian Wright, Del Mar Farms Jon P. Zaninovich, Jasmine Vineyards, Inc. MEMBERSHIP CHAIRMAN Ryan Zaninovich, V. B. Zaninovich & Sons, Inc. VICE CHAIRMAN Ron Frauenheim, Ron Frauenheim Nicholas Bozick, R. Bagdasarian, Inc. Anton Caratan, Blanc Vineyards Chris Caratan, M. Caratan, Inc. Carol Chandler, Chandler Farms, LP Verne Crookshanks, Venida Packing, Inc. Ken Enns, Enns Packing Co., Inc. Tony Fazio, Tri-Boro Fruit Co., Inc. Luke Gowdy, C.H. Robinson Worldwide, Inc. Steve Hash, Steve Hash Farms David Jackson, Family Tree Farms David Mann, Sunridge Nurseries, Inc. David Marguleas, Sun World International, LLC Louis Pandol, Pandol Bros., Inc. Cliff Sadoian, Sadoian & Associates, Inc. Jim Simonian, Simonian Fruit Company Dean Thonesen, Sunwest Fruit Company, Inc. Marko S. Zaninovich, Marko Zaninovich, Inc. Jon P. Zaninovich, Jasmine Vineyards, Inc. STANDARDIZATION & PACKAGING CHAIRMAN Louis Pandol, Pandol Bros., Inc. VICE CHAIRMAN Wayne Brandt, Brandt Farms, Inc. Anthony Balakian, California Growers Scott Boyajian, Marko Zaninovich, Inc. Nicholas Bozick, R. Bagdasarian, Inc. Jim Bryan, Jasmine Vineyards, Inc. Chris Caratan, M. Caratan, Inc. George Caratan, Blanc Vineyards Stan Cosart, W. F. Cosart Packing Co. Edge Dostal, Chiquita Fresh North America David Fenn, Sun World International, LLC Ron Frauenheim, Ron Frauenheim Randy Giumarra, Giumarra Vineyards Corporation Ed Johnson, Specialty Bags, Inc. Casey Jones, Sun Valley Packing Kathleen Nave, California Table Grape Commission Doug Phillips, Phillips Farms Marketing Pat Ricchiuti, P-R Farms, Inc. David Sarabian, Sarabian Farms Gary Van Sickle, California Tree Fruit Agreement Galen Van Aalsburg, PPS Packaging Company Scott Wallace, Fruit Patch Sales, LLC TRAFFIC CHAIRMAN John Rast, Rast Produce Company, Inc. David Berg, David H. Berg & Co., Inc. Jim Bryan, Jasmine Vineyards, Inc. Tyler Durant, C.H. Robinson Worldwide, Inc. Luke Gowdy, C.H. Robinson Worldwide, Inc. Drew Johns, Marko Zaninovich, Inc. William Johnson, Johnson Orchards, Inc. Chance Kirk, V. B. Zaninovich & Sons, Inc. Jaydee Martin, PCC Logistics Janice Simmons, Sensitech, Inc. Page 18 35166_r1_Annual Report 2011.indd 21 7/19/11 2:09 PM C a l i f o r n i a L e g i s l at i v e R e v i e w The California Grape & Tree Fruit League has taken the following positions with the respective legislation based on the recommendation of the Board of Directors. Environmental Resources AB 634 – SUPPORT Huber (D-El Dorado Hills): Would authorize the use of carbon monoxide (CO) for the control of vertebrate pests and allow farmers and ranchers to use CO for the control of vertebrate pests such as gophers and ground squirrels, which is currently prohibited. Traffic AB 907 – OPPOSE Ma (D-San Francisco): This bill would impose higher pilot rates on vessels and create a new, special 50 percent charge on all larger vessels calling on the Port of Oakland. Of further concern is the bill’s recommendation that larger ships coming into the Port of Oakland start to pay a 50 percent surcharge over and above the unnecessary rate increase itself. Page 19 AB 691 -- SUPPORT Perea (D-Fresno): This bill designates the Secretary of the California Department of Food and Agriculture as an ombudsman responsible for reviewing AB 950 – OPPOSE Perez (D-Los Angeles): all regulations promulgated by the state and other government agen- The bill, sponsored by the Teamsters, would require all port truck cies that affect agriculture. drivers to be employees rather than independent contractors, which would allow for the unionization of all drivers involved in port AB 1176 – OPPOSE Williams (D-Santa Barbara): trucking in California. Requires the Department of Pesticide Regulation (DPR) to perform complex scientific analyses and risk assessments in extremely short periods of time and would replace the interdepartmental pesticide Labor prioritization process initiated in 2004 by DPR with the Office of Environmental Health and Hazards Assessment AB 10 – OPPOSE Alejo (D-Salinas): (OEHHA) and Air Resources Board and would This proposal would raise the state minimum wage to require a mandatory review of every federal Haz$8.50 per hour in January 2012, and then automatically ardous Air Pollutant that is identified as a toxic air index the wage rate upwards every year thereafter. contaminant. AB 26 – OPPOSE Donnelly (R-San Bernadino): SB 900 – SUPPORT Steinberg (D-Sacramento): This bill would prohibit an employer from knowingly This bill would address conflict of interest requireor intentionally employing an unauthorized alien. The ments and the 10 percent rule that governs the State bill would require every employer to verify the employWater Resources Control Board and Regional Water ment eligibility of employees through the federal EQuality Control Board members. Currently, Water Board members are subject to both the Political Reform Act (PRA) Verify program and require employers to participate in the Federal and Porter/Cologne conflict of interest requirement provisions. SB E-Verify program in order to be eligible for economic development 900 would hold the Water Board members to the same standard as incentives. other board members/appointees in the State. AB 130 – SUPPORT Cedillo (D-Los Angeles): The bill would provide students at the university level (CSU, UC, Community College), who are exempt from paying non-resident Government Relations tuition (in-state students), eligibility to receive scholarship monies from non-state funds. AB 66 – SUPPORT Chesbro (D-Arcata): It would extend the funding (of 0.15 percent of the vehicle license AB 243 – OPPOSE Alejo (D-Salinas): fee) for local public safety programs including rural sheriff grants, Existing law requires an employer to furnish each employee with an rural crime prevention programs and CalMeth among others. accurate itemized statement showing, among other things, the name and address of the legal entity that is the employer. This bill would AB 1265 – SUPPORT Nielsen (R-Gerber): This bill would add in the provisions of the Williamson Act that require an employer who is a farm labor contractor, to disclose in were inadvertently deleted in the budget bill and authorize a county the itemized statement the name and address of the legal entity that to revise the term for newly renewed and new contracts and require secured the employer’s services. the assessor to value the property, as specified, based on the revised AB 400 – OPPOSE Ma (D-San Francisco): contract term. Mandates that all employers, except those with collective bargaining SB 653 – OPPOSE Steinberg (D-Sacramento): agreements, provide any employee who has worked in California for The bill would expand the taxing authority of local governments. seven days with paid sick leave, at the accrual rate at one hour for Specifically, this bill would grant all California counties the authority every 30 hours worked. to tax personal income up to one percent, raise applicable sales and use tax rates, and impose a new ‘local’ vehicle license fee up to 1.35 percent, as well as a variety of new excise taxes. 35166_r1_Annual Report 2011.indd 22 7/19/11 2:09 PM F e d e r a l L e g i s l at i v e R e v i e w Environmental Resources Government Relations HR 872 – SUPPORT Gibbs (R-OH): Based on a court ruling in the National Cotton Council v. EPA (6th Cir. 2009), the Environmental Protection Agency (EPA) and delegated states must now establish a program to require Clean Water Act National Pollutant Discharge Elimination System (NPDES) general permits for aquatic pesticide applications. For most of the past four decades, water quality concerns from pesticide applications were addressed during the registration and labeling process under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) rather than a Clean Water Act permitting program. HR 872 would uphold FIFRA primacy and not require NPDES permitting. HR XXXX – SUPPORT Nunes (R-CA): This bill would authorize the creation of a new type of charitable, tax-exempt organization to allow private monies to fund Ag research. Each organization would work in conjunction with agricultural and land-grant colleges and universities to conduct research. HR 910 – SUPPORT Upton (R-MI): This legislation, also known as the Upton bill, would prevent the Environmental Protection Agency from regulating greenhouse gases under the Clean Air Act. HR 1582 – SUPPORT McCarthy (R-CA): The Commonsense Ozone Regulation Act repeals a $29 million fine levied on the Central Valley for an air quality standard violation and postpones the implementation of new, stricter ozone standards until a Local Advisory Committee can study compliance feasibility. Traffic HR 761 – SUPPORT Nunes (R-Tulare): This bill, also called the San Joaquin Valley Transportation Enhancement Act of 2011, would permit federal funding, made available to the State of California, to be used for any project or activity to improve or maintain California State Route 99 between the cities of Sacramento and Bakersfield. Labor HR 800 – OPPOSE Carter (R-TX): The Jobs Recovery by Ensuring a Legal American Workforce Act of 2011 amends the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to make use of the Federal E–Verify program mandatory. State Legislation labor AB 1236 – SUPPORT Fong (D-Sunnyvale): This bill would prevent the State of California, cities and counties from mandating employers to use the federal E-Verify system. The bill prohibits businesses from being required to use E-Verify to obtain a business license, secure a contract for goods or services, or as a penalty for violation of licensing or other related laws. AB 1398 – SUPPORT Chesbro (D-Arcata): This bill extends the sunset of SB 319, which permits 16- and 17-year-old teens to work in Lake County pear sheds up to 10 hours per day for a limit of 60 hours per week when school is not in session. SB 1474– OPPOSE Steinberg (D-Sacramento): The Bill would similarly establish the card check mechanism as a means of selecting a labor representative. 35166_r1_Annual Report 2011.indd 23 SB 883 – SUPPORT Correa (D-Santa Ana): This bill would permit an employer to raise, as an affirmative defense that, at the time of an alleged violation, the employer was acting in good faith and in compliance with or reliance upon an applicable employment statute or regulation. An employer would not be liable or subject to punishment for any violation this code (Labor code) or wage order of the Industrial Welfare Commission. Page 20 SB 104 – OPPOSE Steinberg (D-Sacramento): The bill would permit the circumvention of the secret ballot election process and unlike previous versions of card check legislation; the bill adds that within five days after receiving a petition, the ALRB would be required to make a non-appealable administrative decision. This version of card check is perhaps the most insidious version introduced to-date. SB 829 – OPPOSE DeSaulnier (D-Concord): This bill makes sweeping changes to the procedures of the California Occupational Safety and Health Administration (Cal/OSHA) Appeals Board (Board), putting employers at a disadvantage and increasing costs to the board and to employers. Currently, employers have the right to appeal a Cal/OSHA citation and proposed penalty for any number of reasons. 7/19/11 2:09 PM YEAR IN PICTURES From Left: The League’s Executive Committee 2010/11 FY - Louis Pandol (Pandol Bros. Inc.), Dean Thonesen (Sunwest Fruit Company, Inc.), Carol Chandler (Chandler Farms, LP), Chris Caratan (M. Caratan, Inc.), Steve Hash (Steve Hash Farms), David Marguleas (Sun World International, LLC), Ryan Zaninovich (VB Zaninovich & Sons, Inc.), David Jackson (Family Tree Farms) and Marko S. Zaninovich (Marko Zaninovich, Inc.). Page 21 From left: Martin Zaninovich (Jasmine Vineyards, Inc.), Jon P. Zaninovich (Jasmine Vineyards, Inc.), Cliff Sadoian (Cliff Sadoian & Associates), Bruce Obbink (retired, California Table Grape Commission), Nick Buratovich (Wildwood Produce, Inc.) and Judy Obbink participated on the Membership Committee’s Historical Sub-Committee. From left: Ardith and Howard Marguleas (Juele I) with David and Robin Marguleas (Sun World International, LLC.) at the CGTFL 75th Annual Meeting, held in Rancho Mirage, CA. 35166_r1_Annual Report 2011.indd 24 The changing of the Chair: David Marguleas (right), Chairman 2010/11 FY passes the gavel to Steve Hash, Chairman 2011/12 FY. Bottom Left: League Staff- Chris Valadez, Gabrielle Kirkland, Barry Bedwell, Marcy Martin. Top Left: Vicky Jones, Jaclyn Pack, and Erin Ragnetti. From left: League Director Nick Bozick (R.Bagdasarian, Inc.), Assemblymember Brian Nestande (R-Palm Desert), and Chairman David Marguleas (Sun World International, LLC).. 7/19/11 2:09 PM YEAR IN PICTURES From left: John Tos (Tos Farms), Pat Ricchuiti (P-R Farms), Monte Peckinpah (Valent), Virginia Hemly Chhabra (Greene and Hemly, Inc.), Randy Giumarra (Giumarra Vineyards), Gov. Jerry Brown, and Barry Bedwell (League President) pictured during the 2011 GR Trip in Sacramento. Assemblymember Fiona Ma (D-San Francisco), pictured with League Director Wayne Brandt (Brandt Farms, Inc.) when Ma visited the Reedley-based operation to learn more about the tree fruit industry. 35166_r1_Annual Report 2011.indd 25 From left: Suppliers Committee Chairwoman Nelda Lewis (Pan American Insurance Agency) announced the “Supplier of the Year” award on March 14, during the Suppliers Event. John Atwood (API Kirk Containers) was selected by his peers as the 2011 receipent of the Supplier of the Year award. During the Sacramento Board meeting in June, fresh fruit donated by members was displayed during the legislative reception to showcase the high quality fruit produced in California. Page 22 From left: League President Barry Bedwell poses with Brian Laird (Rain and Hail Insurance Company, LLC), who was awarded with the Ag Industry Award during the Suppliers Event on March 14 at Rancho Las Palmas Resort. From Left: Secretary of the Labor and Workforce Development Agency Victoria Bradshaw, League President Barry Bedwell, League Director Pat Ricchiuti, and League Lobbyist Louie Brown at the June 2010 Legislative reception. 7/19/11 2:09 PM League’s ag network The League employs a collaborative approach to maximize its effectiveness by working together with other agricultural organizations or associations on issues that affect League members. Listed below are the group efforts in which the California Grape & Tree Fruit League participated in during the 2010/11 FY. Agribusiness President’s Council Description: To coordinate public policy issues among California agricultural associations and commissions. Members: 33 2010 Contribution: Included in CGTFL’s regular government relations expenses. Air Coalition Team Specialty Crop Farm Bill Alliance (SCFBA) Description: A broad alliance with the purpose of influencing the scope and efficiency of national agricultural policy. Members: 130 2010 Contribution: $5,000 Agricultural Coalition for ImmiDescription: Agricultural organizations that work together gration Reform (ACIR) on issues related to air quality litigation. Members: 17 2010 Contribution: $5,000 Alliance for Food and Farming (AFF) Description: Works in the areas of public relations, messaging, and outreach related to food safety and pesticide use related issues. Members: 53 2010 Contribution: $9,000 Crop Protection Coalition (CPC) Description: Coalition of national, regional and local agricultural organizations seeking to obtain critical use exemptions for methyl bromide, as well as funding for alternatives research. Members: 14 2010 Contribution: $3,000. Minor Crop Farmer Alliance (MCFA) Description: To serve as a leading advocate, seeking legislative reform addressing the short and long-term labor needs of the nation’s agricultural interests. Members: 75 2010 Contribution: $10,000. Invasive Species Coalition (ISC) Description: ISC was reformed in 2008, given the challenges with the emergence of new pests. This coalition provides a professional public relations response and outreach program in dealing with invasive plants and pests coming into California. CGTFL President served as the Co-Chair. Members: 15 2010 Contribution: $5,000. Coalition Against Card Check Description: This coalition was formed under the leadership of the League to fight SB 104 (card check bill). Members: 29 2010 Contribution: $10,000 Page 23 Description: An alliance of agricultural organizations dedicated to addressing pesticide registrations. Members: 18 2010 Contribution: $5,000. The California Grape & Tree Fruit League is known for its pragmatic approach to working with policy makers in Sacramento and Washington, DC. The organization reflects the collective interest of the industry, where leaders set aside personal convictions in a bi-partisan political environment. As the primary public policy organization for the fruit industry, the League has adopted a realistic and sensible approach to building bridges with elected and appointed leaders. - 2010/11 FY Chairman David Marguleas 35166_r1_Annual Report 2011.indd 26 7/19/11 2:09 PM Pa s t C h a i r m en of t h e Bo a r d The past Chairmen who have directed the work of the California Grape & Tree Fruit League 1936/43 A. Setrakian 1962/63 Edward M. Zeller 1982/83 Howard Mason 2002/03 Jon P. Zaninovich 1943/45 L. R. Hamilton 1963/64 Jack Pandol, Sr. 1983/85 Jack G. Zaninovich 2003/04 David Elliot III 1945/46 J. M. Prentice 1964/65 Grove E. Dye 1985/86 Darrel Fulmer 2004/05 Tony Fazio 1946/47 Robert Taylor 1965/66 George Sadoian 1986/87 Verne Crookshanks 2005/07 Louis Pandol 1947/48 E. L. Barr, Sr. 1966/67 Marion P. Newton 1987/88 Micky George 2007/08 Jerry DiBuduo 1948/49 Harold Butcher 1967/68 Nick Buratovich, Sr. 1988/89 Louis S. Caric 2008/09 John D. Zaninovich 1949/50 John J. Kovacevich 1968/69 E. L. Barr, Jr. 1989/90 Sarkis Sarabian 2009/10 Marko S. Zaninovich 1950/51 David J. Elliot, Sr. 1969/70 R. K. Sanderson 1990/91 Craig Rasmussen 2010/11 David O. Marguleas 1951/52 William A. Hamilton 1970/71 Robert A. Grant 1991/92 Doug Hemly 1952/53 William A. Lambert 1971/72 Howard A. Hall 1992/93 Dennis Parnagian 1953/54 Virgil E. Rasmussen 1972/74 David J. Elliot, Jr. 1993/94 Kent Stephens 1954/55 W. C. “Jerry” Day 1974/75 Allan Corrin 1994/95 Wayne Brandt 1955/56 Martin Zaninovich 1975/76 Franklin Debuskey 1995/96 Cliff Sadoian 1956/57 Alfred Tisch 1976/77 Dean Morrison 1996/97 Steve Biswell 1957/58 Julio Perelli-Minetti 1977/78 Milan Caratan 1997/98 Rick Widhalm 1958/59 J. A. DiGiorgio 1978/79 Tony Tranel 1998/99 Ken Enns 1959/60 Leonard LeBlanc 1979/80 Lucille Tidwell 1999/00 Nicholas Bozick 1960/61 M. A. Nielson 1980/81 John Giumarra, Jr. 2000/01 Fred Berry 1961/62 Franklin Gindick 1981/82 James Ruby 2001/02 Jim Simonian 35166_r1_Annual Report 2011.indd 27 7/19/11 2:09 PM 35166_r1_Annual Report 2011.indd 28 7/19/11 2:09 PM