The Many Shades of Agribusiness Success
Transcription
The Many Shades of Agribusiness Success
Imperial Valley Economic Development Corporation January 2012 The Many Shades of Agribusiness Success see page 4 Ticket to a Hungry World see page 16 Sowing Seeds Around the Globe see page 22 www.ivedc.com 2 l ABUNDANT OPPORTUNITIES January 2012 CONTENTS Features 5 Imperial Valley Agriculture by the Numbers Facts and figures behind the valley’s success Lifeblood of the Valley Water from the Colorado River helps make it all possible 9 Valley’s Top Crop Has Hooves and a Tail A look at Imperial County’s cattle industry 12 All in the Family Sheep are more than just a business—they’re a way of life 14 Ticket to a Hungry World Field crops feed consumers and livestock internationally 16 Welcome to the Nation’s Winter Salad Bowl More than 50 different vegetable and melon crops grow here 18 Sowing Seeds Around the Globe Tiny seeds equal big business 22 Taking Food Safety Seriously Protecting public health affects all aspects of valley agriculture 24 Growing Algae…in the Desert Earthrise Farms’ Spirulina is prized by cultures worldwide 26 IVC Harvests a Commitment to Agriculture Preparing the agribusiness leaders of tomorrow 28 Match Made in Heaven Meet Connie Valenzuela, new Imperial County Ag Commissioner 30 Map and Agricultural Facts 34 Message from the IVEDC Board of Directors Valley of Opportunity Departments Report from the CEO Fueling Enthusiasm, Growth Report from the CEO The Many Shades of Agribusiness Directory of Investors Imperial County Farm Bureau The 21st Century Farmer IVEDC Staff Imperial Valley Vegetable Growers Association Valley of Possibilities 4 5 38 39 4 8 11 On the cover: A lettuce field south of Brawley. Leaf and head lettuce had a total gross value of more than $290 million in 2010 and ranked 2 and 4, respectively, among the valley’s top 10 crops. In the distance is a sugarbeet processing facility constructed by Holly Sugar Corporation in 1947, now operated by Spreckels Sugar Company. Photo © Bill Gates Photography. Abundant Opportunity is a publication of the Imperial Valley Economic Development Corporation, a partnership of private enterprise and local government united by the common vision of expanding and diversifying our economy. Our Investors include a host of public and private organizations that benefit from the growth of our regional economy. IVEDC’s offices are located at 1405 N. Imperial Ave., Suite 1. El Centro, CA 92243 • Mailing Address: P.O. Box 3005, El Centro, CA 92244 Phone: 760-353-8332 • Fax: 760-353-9149 • www.ivedc.com Publisher: Contributing writers: Editing & design: Imperial Valley Economic Development Corporation Susan Giller, Darren Simon, Gary Redfern, Gina Germani Valley Solutions Group, Inc. © 2012 Imperial Valley Economic Development Corporation. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, nor transmitted in any form by any means without the prior permisson of IVEDC. ABUNDANT OPPORTUNITIES January 2012 l 3 REPORT FROM THE CEO The Many Shades of Agribusiness Success F rom the sky, the Imperial Valley offers a view few are privileged to enjoy of an agribusiness marvel that increasingly is becoming the hub of global trade. Fields of green and gold radiate across the desert in a complex pattern stitched together by a series of glistening canals, which are part of a modern irrigation system spectacular. With 360 days a year of sun, the Imperial Valley’s verdant tapestry sprawls over nearly 500,000 acres producing the food, fiber and energy essential for the state, national and global markets. The kaleidoscopic design of agricultural development here is a thing of beauty; it also is the geometry of agribusiness success. Timothy Kelley This issue of Abundant Opportunities offers a bird’s eye view into the mysteries and miracles that make agribusiness unique and extraordinary in the Imperial Valley, in the heart of California’s southeastern desert. Everything from artichokes to zucchini grows here and often reaches markets around the globe. Within the pages of this magazine you will learn why forage crops planted in Imperial Valley soil are on a trajectory to feed cattle in Japan, South Korea, the United Ariab Emirates, Asia and other ports of call. In this issue, you will see the thousands of acres of seed crops under cultivation here that are on course for use in Australia, Europe and China. And who would guess that the acres and acres of durum wheat thriving in the Imperial Valley are destined to be turned into pasta? Thanks to a year-round growing season, ample supplies of water and the valley’s fertile soil, Imperial Valley agribusiness leaders here grow more than 100 types of crops at any given time, regularly produce record-breaking yields and in 2010 produced a total agricultural output of $1.6 billion. Long billed as the nation’s winter salad bowl—producing one-seventh of the nation’s winter vegetables—the Imperial Valley is listed among the top agricultural producers in numerous categories in state and national databases. We who work in this expansive, but often overlooked, ag- 4 l ABUNDANT OPPORTUNITIES January 2012 ricultural treasure have come to expect the unexpected from the agribusiness leaders here. This is, after all, an area transformed from an arid wasteland in the early 20th century. Visionaries willing to buck conventional wisdom tamed the harsh environment here by diverting water from the Colorado River that forms the Imperial Valley’s eastern boundary. The early efforts to develop the gravity-flow irrigation system that would transform the desert into an oasis were not without drama. First, ruinous flooding and then epic political strife ensued for decades. In the end, the vision and doggedness of early Imperial Valley developers paid off. Their efforts spurred passage of the federal legislation that funded the building of Hoover Dam and the series of other dams and diversions now in place to control the Colorado River. Those early efforts and negotiations over how the Colorado River would be used by the surrounding seven states and Mexico provided the Imperial Valley with senior rights to sufficient water for today’s cutting-edge agricultural and economic development. The Imperial Irrigation District (IID), a public agency that holds the Imperial Valley’s water rights in trust, provides the water and power to the community. Celebrating its centennial this year, IID operates the 3,000 miles of canals and drainage ditches that make up the largest irrigation system in the nation, based on the volume of water it carries. The system is a model of water efficiency on the Colorado River. While that aforementioned bird’s-eye view of the Imperial Valley may look like a placid and serene mosaic, it is anything but. Change is always in the air. Imperial Valley agribusiness success is built on innovation and flexibility to adapt as market conditions change. With this issue of Abundant Opportunities—Agribusiness Leader you will get an insider’s look at the latest angles on agribusiness success. Timothy E. Kelley President/CEO Imperial Valley Agriculture © Bill gates PHOTOGRAPHY By the Numbers By SUSAN GILLER A ny way you slice it, Imperial Valley agribusiness is as mighty as the community’s name—it is grand, it is dominant and its reach is global. Agriculture packs a punch potent enough to routinely earn the Imperial Valley billing as one of the top 10 producers of agricultural value in the state of California and in the nation. With agriculture shining as one of the few bright spots in the gloomy national economy and emerging global markets hungry for U.S. commodities, Imperial Valley agriculture is poised to expand its sway. “The farmers and ranchers of Imperial Valley are blessed in that our region offers mild weather conditions, water availability and rich soil,” said Linsey J. Dale, Imperial County Farm Bureau executive director. “Imperial Valley growers recognize Seed & Nursery Crops $52,952,000 Fruit & Nut Crops $51,294,000 Livestock $321,022,000 Apiary Products $4,001,000 our region’s uniqueness and take advantage of the prime agricultural conditions to supply the world with healthy food, grain and livestock products.” The numbers speak volumes about Imperial Valley agricultural prowess. Consider the most recent Imperial County Agricultural Crop and Livestock Report. It puts the Imperial Valley’s gross agricultural output for 2010 at nearly $1.59 billion, up 10 percent from 2009. The county report, compiled annually since 1907, reflects the gross value of all agricultural commodities, not the net paid to growers. “The numbers reflect increased acreage and favorable markets for a number of crops,” said Imperial County Agricultural Commissioner Connie Valenzuela. “It was an excellent year, not the best ever, but quite good.” Imperial Valley’s highest agricultural gross value was $1.68 billion in 2008. The perennial king of Imperial Valley agriculture is cattle. In 2010, beef continued its reign as the county’s single most valuable commodity with a gross value of $267 million, despite a dip in value of more than $19 million from the previous year. Many factors influence commodity values. In 2010, the cattle market nationally was the victim of the weak economy, high fuel prices and rising feed costs. Bill Brandt, of Brandt Cattle Co., north of Brawley, takes the 2010 results in stride. “You have to be a risk taker,” Brandt said, “to survive in the cattle industry.” continued on Next page Vegetable & Melon Crops $809,126,000 Field Crops $360,139,000 NUMBERS MAY NOT COMPUTE DUE TO ROUNDING Source for all statistics: Imperial County Agriculture Commissioner—Agricultural Crop & Livestock Report 2010 www.co.imperial.ca.us/ag/Crop_&_Livestock_Reports/Crop_&_Livestock_Report_2010.pdf ABUNDANT OPPORTUNITIES January 2012 l 5 2010 Summary Commodity Vegetable & Melon Crops Field Crops Livestock Fruit & Nut Crops Seed & Nursery Crops Apiary Products TOTALS Year Harvested Acreage Value 2010 115,501 $ 809,126,000 2009 114,099 690,311,000 2010 352,760 360,139,000 2009 353,128 312,554,000 2010 321,022,000 2009 343,201,000 2010 7,104 51,294,000 2009 6,745 47,765,000 2010 53,969 52,952,000 2009 62,237 55,577,000 2010 4,001,000 2009 3,562,000 2010 529,334 $1,598,534,000 2009 536,209 $1,452,970,000 Despite year-to-year setbacks, National Beef, which operates a beef processing plant in Brawley, remains bullish on Imperial Valley cattle. National Beef recently broke ground on an expansion that will add a hamburger processing facility to the beef plant. (For more on the valley’s beef industry, see story on page 12). Even in a good year, it takes more than cattle to keep the Imperial Valley among the elite of the nation’s ag producers. The region’s edge comes from the unprecedented diversity of commodities it harvests, thanks to its abundant acreage, year-round growing season and access to irrigation water. Throughout the year, Imperial Valley routinely produces about 100 different crops, including produce, fruit and nut crops and apiary products to field crops, sheep, and aquaculture and algae. When the value dropped in 2010 for cattle, fish and algae (down by $7 million from 2009, to $6.4 million), and head lettuce (down $22 million, to $124 million), the increase in value of several other commodities still boosted the county’s total production level for the year to near record levels. In 2010, some of the biggest gains were posted in the valley’s vegetable and melon crops, an assortment of more than 50 crops ranging from the region’s traditional salad bowl of lettuce, carrots, onions and the like, to more exotic things like aloe vera, cilantro and bamboo. The group was valued at $809 million for 2010, up 17 percent from 2009. Imperial Valley’s biggest produce increases for the year were: leaf lettuce, at $166 million (up $50 million); market onions, at $65 million (up more than $38 million); spinach, at $20 million (up nearly $7 million) and cantaloupes, valued at $53.6 million (up more than $18 million). A catch-all category of some smaller-acreage crops called “miscellaneous 6 l ABUNDANT OPPORTUNITIES January 2012 More than 100 different crops—from artichokes to zucchini—resulted in a total agricultural output of $1.6 billion in 2010. vegetables” shot up $24 million, to $80 million. “Locally, produce is a vibrant industry,” Ayron Moiola, executive director of the Imperial Valley Vegetable Growers, said. “Growers work in an ever-changing, and risky, environment. It’s a definite gamble and things move at a rapid pace. It speaks volumes about the caliber of the people in produce that they face all these challenges and still come through with the crops to feed the nation.” Imperial Valley’s field crops also posted some hefty gains in 2010. The category includes such crops as sugarbeets, wheat, cotton and alfalfa and other forage crops that use the majority of the acreage in the region. In 2010, the total gross value of Imperial Valley field crops was up 15 percent to $360 million. The biggest gainers were: alfalfa, up nearly $44 million to $129 million; sugarbeets, up $28 million to $70 million, and sudangrass, up nearly $19 million to $46 million (see article on field crops on page 16). Of the Imperial Valley crops harvested in 2010, nearly 40 had values in excess of a $1 million, 23 those with values measured in the tens of millions. That may be why growers here often say, “If it grows, it can grow in the Imperial Valley.” Is it true? “I don’t know about that,” said Steve Birdsall, retired county Agricultural Commissioner, who is now a consultant. “I couldn’t get avocados to grow, although I know someone Top Ten Commodities 2009 Ranking 2010 Ranking 1 Cattle 2 Leaf Lettuce 166,052,000 3 3 Alfalfa 129,227,000 5 4 Head Lettuce 124,638,000 2 5 Onions 76,069,000 8 6 Broccoli 75,298,000 6 7 Sugarbeets 70,099,000 9 8 Carrots 64,225,000 7 9 Cantaloupes 53,645,000 13 Sudangrass Hay 46,600,000 16 10 $ 267,510,000 1 who has a tree producing fruit in his backyard. And, maybe some stone fruits that need a winter freeze won’t do that well, but pretty much anything else grows here.” Imperial Valley is uniquely suited for the diversity of crops it grows. It starts with good bones—a lot of good land and water for irrigation from the Imperial Irrigation District. Add a climate conducive to year-round growing and innovative growers and you end up with the potential for even more harvests. In 2010, Imperial Valley growers produced multiple crops on 37,000 acres, according to IID’s Inventory of Areas Receiving Water. In 2008, the year in which the Imperial Valley posted its highest agricultural production value, 105,000 of the 535,000 acres planted yielded multiple crops, according to IID’s inventory. Mild winters also give Imperial Valley growers a growing season that meets a profitable niche market. The southwest desert region that includes the Imperial Valley, for instance, is the only area in the U.S. that can harvest lettuce and other vegetables at certain times in the winter. Orchards in the Imperial Valley are the only ones in the nation that harvest mangos during a certain time of year. The value of Imperial Valley agribusiness strategies shines even in California, the state that leads the nation in agricultural production. Consider data compiled by the California Department of Food and Agriculture (CDFA). For 2009, based on the most recent state data, Imperial County ranked tenth among the 58 counties in the value of its agricultural output. Drilling deeper into the numbers offers an even richer perspective. CDFA’s Agricultural Resource Directory lists the percentage of the total state value of commodities that come from the top-producing counties. In 2009, Imperial County led California in the production value of six commodities. Imperial County growers produced nearly 29 percent of the gross value of California’s wheat; 42 percent of the state’s carrots; nearly 29 percent of the state’s sweet corn; 50 percent of the state’s alfalfa seed; 76 percent of the state’s sudangrass; and nearly 99 percent of the state’s sugarbeets. According to CDFA data, Imperial County produced the second-highest value of five additional commodities in 2009. Those commodities were: lettuce, 14 percent of the value; onions, 17 percent; salad greens, 19 percent; cantaloupe, 23 percent; and dates, 35 percent. Altogether, Imperial County was among the top five California counties in production value of 26 commodities, according to the CDFA data. Rounding out the list of the commodities were: cattle, alfalfa, broccoli, cauliflower, spinach, honeydew melon, potatoes, cabbage, vegetable seed, sheep and lambs, celery, watermelon, asparagus and grapefruit. Yet the commodity superstar one year may not even be listed in the credits the next, leading to the notion that a crystal ball may be one of a grower’s more important implements. continued on page 33 P lanters Hay, Inc. is a grower-owned hay compress in the Imperial Valley. Grown on our local, family farms with GMO-free seed, we export a full product mix of Alfalfa, Sudan, Klein, and Bermuda Grass. For product availability: Richard Akikuni, Sales Manager Planters Hay, Inc. office (760) 344-0620 fax (760) 344-2691 [email protected] www.plantershay.com Lowest Fees in the Imperial Valley. Friendly Local Government. 121 W. 5th Street • Holtville, CA 92250 (760) 356-4574 • www.holtville.ca.gov ABUNDANT OPPORTUNITIES January 2012 l 7 I M P E R I A L CO U N T Y FA R M B U R E AU The 21st Century Farmer We face challenges—and opportunities—today that our predecessors couldn’t imagine. T Mark McBroom he Imperial Valley farmer of today looks a lot different than 100 years ago, even 20 years ago. Pioneer farmers could make a living on fewer acres, even support many families. Most farming operations were and still are year-round as we have a growing season that never ends. For that, we are blessed. However, today we have challenges that our predecessors couldn’t imagine. Because we are in a global economy we are impacted by imported products constantly—products that are grown in places that don’t have to adhere to the regulations, taxes and costs of doing business that impact the California farmer. When an invasive species was found on your property years ago it meant that the neighbor’s livestock got out and were devouring your vegetable patch. Today, it is an insect, animal or virus that brings with it contamination, destruction and potential economic devastation that can completely wipe out an industry without any recourse. Through it all, we adapt and go on, ever reinventing ourselves and overcoming the continuing challenges every day. Besides looking through a windshield at a crop, we now have satellite imaging, infrared vision and other tools to “see” our crops growing in a way that only a few short years ago was a science fiction show. When checking our fields for irrigations and digging holes to feel the soil, we now also have probes that relay soil moisture to satellites so it can be tracked 24 hours a day, seven days a week. What is hard for us to imagine today will be commonplace in a decade or so. Agriculture and food production have become even more necessary in today’s world where we need to feed more people with fewer and fewer resources. Farming in the Imperial Valley will be a tremendous opportunity for those who enjoy the daily challenges it brings in the wonderful outdoors, where your fields are your walls and the sky is your ceiling. You cannot ask for a better office. Anyone who has the desire can start in farming. However, farming is not a 9-to-5 job. Agribusiness requires a commitment that becomes part of your lifestyle. But the best part of farming in Imperial Valley is the community we live in, the people we work with and lives we live, always interweaving with each other to make this place we call home the best around. Mark McBroom President, Imperial County Farm Bureau 8 l ABUNDANT OPPORTUNITIES January 2012 Lifeblood of the Valley W ater has been used as an important literary device through the ages. It babbles through poetic brooks. It symbolizes life in countless tomes. It can signify serenity; as crashing waves it can turn violent. And, its shimmering, reflective surface mirrors both good and evil. For Imperial Valley agribusiness, water is poetry in motion as it flows through 1,600 miles of Imperial Irrigation District (IID) canals to the thousands of cultivated acres that make the region one of the top agricultural producers in the nation. None question that the Colorado River water carried through the canals is the literal lifeblood of the arid region and its agriculture. For that reason, Imperial Valley growers and IID have advanced the science of irrigation and water delivery to achieve extremely high levels of efficiency, among the highest along the Colorado River system. Yet, Colorado River water remains the bone of contention of rancorous political strife in the Western United States. Disputes among water users in the seven states along the Colorado River system are legendary and lawsuits still rage in an arid region where water is as precious as gold. To get ahead of a potential new round of water disputes, the IID and its water users have begun a unique planning process geared at meeting the diversifying water needs within the Imperial Valley. Tina Shields, assistant manager of IID’s Water Department, said, “There is plenty of water here—if we figure out how to manage it better.” The Imperial Valley integrated regional water planning effort provides a way to meet long-range water demands within the IID’s boundaries that are rapidly diversifying as the region attracts renewable energy and other development. Some think the new, collaborative planning process may actually lead to the creation of water supplies not now available for farming or industrial use. Some of the proposals being considered include banking water (storing unused water in groundwater aquifers), treating and reclaiming wastewater, desalting drainage water that otherwise would be discharged into the Salton Sea and other options. While the idea of creating water in the desert may seem unlikely, efforts already are in the works to squeeze more usefulness from water currently in the system. Geothermal developer Ormat, for instance, is currently negotiating with the city of Brawley and other communities in Imperial County to build and pay for the operation of tertiary treatment plants so the reclaimed water can be used for geothermal power plant cooling. That way irrigation water now used for power plant cooling processes would instead be available for agriculture and other purposes. The IID in 2009 adopted a water management plan intended to maximize the use of its Colorado River entitlement for the next 37 years after it began receiving requests for water service from a number of proposed renewable energy projects. Based on that plan, the district’s board of directors set aside 25,000 acre-feet of water a year for new non-agricultural projects with the idea that water rates paid by those developments would fund water management or conservation projects anticipated in the plan. The state of California encouraged the region to embark on the current regional integrated water management planning process that started last year. State funds may be available to assist in the process and any water project must be part of an integrated regional plan to be eligible for state funding. “We have to manage to the future,” Shields said. “This is a collaborative process through which we can make realistic projections about long-term water-use needs. By planning, we can ease into diversifying water use but we have to make sure changes are not at the expense of existing users.” Agriculture uses about 97 percent of the water that IID continued on Next page © Bill gates PHOTOGRAPHY By SUSAN GILLER (Pictured) Headgate on the East Highline, one of three main canals that receive water from the All-American Canal. AABBUUNNDDAANNTT OOPPPPOORRTTUUNNI ITTI IEESS J Jaannuuaar ryy 22001 122 ll 99 Lifeblood continued FROM previous page sells. And, agriculture is expected to remain the largest user of water in the integrated regional water use planning process. Yet growers tend to look at any proposed change in water policy with concern because they already are farming with less water under agreements signed by the federal government, California and Colorado River users, including IID. The Quantification Settlement Agreement (QSA) set up the largest ag-to-urban water transfer ever undertaken and requires—and finances—the implementation of unprecedented water efficiency on farms and in the water delivery system in the Imperial Valley. IID and Imperial Valley growers are experimenting with space-age technology as they figure out how to conserve the water required for the epic water transfer. Infrared photography, sat- ellite imaging, increased automation, on-farm pilot conservation projects and equipping IID water delivery employees with laptop computers are among the extreme steps being tried and implemented to ratchet up the region’s already high level of water efficiency. Shields is under no illusion that the integrated regional water planning process will be easy or satisfy everyone. However, she sees it as a way to create opportunity in the Imperial Valley. “To make it work we have to understand the issues and we cannot do that in a vacuum,” she said. “Just the process of getting the parties together creates opportunities.” With its fluidity, water is never an easy substance to compartmentalize. This time, Shields said the Imperial Valley has reason to try. “The QSA and the water transfer were prompted by the needs of others; now we are focusing on local needs to take care of local interests.” For Imperial Valley agribusiness, water is poetry in motion as it flows through 1,600 miles of IID canals to the thousands of cultivated acres that make the region one of the nation’s top ag producers. Giller can be contacted at [email protected] Available For Rent Private Research Facility Including Office Space, Small to Large Research Plots, Green Houses, Laboratory and More! To schedule a site visit or for more information contact: 4151 Highway 86 | Brawley | CA | 92227 760.344.4184 10 l ABUNDANT OPPORTUNITIES January 2012 IMPERIAL VALLEY VEGETABLE GROWERS ASSOCIATION Valley of Possibilities A Larry Cox few years ago, a friend of mine told me, “If you are going to bet the farm on something, make sure you have another farm...”. That statement resonates loudly in the current vegetable production environment, especially in California. In our chosen industry, the risks oftentimes outweigh the rewards and we can go for months with prices at below break-even. Production costs have escalated dramatically in the past decade due to homeland security costs, food safety directives, increases in fuel, fertilizer, seed and periodic shortages of labor. However, none of these challenges are new and in light of what previous generations faced, our problems seem not so large. Even with the above-mentioned challenges, the farmers of Imperial Valley have much to be thankful for. • To begin, the gravity-flow irrigation system we have works incredibly well. That coupled with our senior water rights on the Colorado River have so far protected us from serious shortages or interruptions of service. Plentiful affordable water makes the Imperial Valley the envy of many growing around the state and the nation. • Next, one of the best aspects of Imperial Valley is that we have the ability to grow a multitude of crops like alfalfa and sugarbeets, instead of strictly produce. This allows growers to diversify and spread risk and also allows for double cropping, which helps keep our employees working and our equipment busy. This also helps with disease management by allowing for crop rotation, without which you can have soil diseases that can reduce yields or damage crops to the point of not being harvestable. • Another advantage we have is that our leafy vegetable time slot is counter to that of much of the nation. When we harvest lettuce or spring mix here, most of the nation is too cold to compete with the Imperial Valley, Yuma area and Florida. • We have a wide mix of soil types here from blow sand to very heavy clay. Sand is well suited to carrots, potatoes, many lettuces and melons. Well-drained clay soils produce abundant crops of lettuce, melons, onions and much more. • We are also blessed to have a great labor pool available to help us harvest the crops our fields produce. On that final point I would like to expand a bit, as I see it as a very important and personal aspect of our industry. The relationships that grow between farmers and irrigators or tractor drivers over decades are meaningful and unique and in many cases much like family. For example, a few years ago my family attended the funeral of Enrique Moreno, who drove a tractor for my father then me for decades. Enrique was a kind and helpful man and I am a better man because of him. As his health failed in his latter years his family would bring him to our ranch office to visit. Even though his body was giving out he would always have a smile and a kind word. Enrique is one that resonates with me today, but I have many people I work with who are in many ways family to me. Do we have many issues facing us ? You bet we do. But we also have many positives in the Imperial Valley. I told a friend of mine the other day, the Imperial Valley has been a great place to raise our two sons. A big reason is because of the people here and that is a resource you can’t replicate or do without! Larry Cox President, Imperial Valley Vegetable Growers Association ABUNDANT OPPORTUNITIES January 2012 l 11 12 Cattle are the Imperial Valley’s No. 1 agricultural commodity, with nearly 300,000 head in local feedlots. By DARREN SIMON Has Hooves and a Tail l AABBUUN NDDAAN NTT O OPPPPO ORRTTUUN NIITTIIEESS JJaannuuaarryy 22001122 © Bill gates PHOTOGRAPHY Valley’s Top Crop continued on Next page © Bill gates PHOTOGRAPHY W hen Brawley Beef opened its state-of-the art beef processing plant in 2001, the Imperial Valley celebrated an economic triumph built on the gutsy, pioneering spirit of local cattle industry leaders. That milestone celebration came as the Imperial Valley cattle industry had reached one of those make-or-break moments in its storied history. Transportation costs and lack of access to beef processing facilities threatened the viability of the local cattle industry. Local industry leaders came up with a bold plan: build the first new beef processing facility to open in the U.S. in 20 years in Brawley, in the heart of Imperial Valley’s cattle industry. With ingenuity and dogged determination, local cattle industry leaders risked their capital—their very livelihoods—on that gamble. Imperial Valley and its cattle industry won. Today, cattle remain the valley’s leading agricultural commodity. According to data from the county Agricultural Commissioner’s office, cattle’s value was $267.5 million in 2010, with nearly 300,000 head in local feedlots. The next highest ranked commodity was head lettuce at $166 million. There have been many changes since Brawley Beef— today owned and operated by National Beef—first opened its doors, but what hasn’t changed in the gutsy, pioneering spirit of the cattle industry leaders. “You have to be risk taker,” said Bill Brandt, who owns and operates Brandt Cattle Co. north of Brawley. Brandt was one of the principals who made Brawley Beef a reality a decade ago. That daring spirit first gave rise to cattle ranching in the Imperial Valley in the early 1900s. In the early days, the number of feedyards grew to some 150. Today, there are about 10 large feedyards operating in the valley, all of them are family owned. The size and configuration of today’s cattle feeding operations are determined by market and economic constraints. Even today, the industry benefits from the Imperial Valley’s year-round sun and moderate winter temperatures that allow cattle to gain weight continuously. Paul Cameron, another of the original Brawley Beef principals, owns Mesquite Cattle, located between Brawley and Holtville. The feedlot has a capacity to handle up to 35,000 head of cattle. “We are a critical part of the Imperial County economy,” Cameron said. “Not only that, but we provide a safe, wholesome product as efficiently as anyone else in the world.” While 2010 was not the best year for cattle, Cameron said it turned out pretty well. The number of cattle in feedyards around the nation was down, which translated into higher prices for the beef produced. Still, there are several concerns on the horizon. For one, rising fuel prices threaten an industry that always operates on tight margins. Higher fuel prices also jeopardize what consumers are willing to spend on good meat. The rising cost of gasoline means consumers “have no disposable cash to spend on a good night out to dinner at a PHOTOS: Jim Luck (left) and Robert Pacheco work cattle at Foster Feed Yard, owned by second-generation cattle feeders Gary and Rod Foster. It is one of a few local operations that still employs cowboys to treat sick cattle and to move cattle from one pen to another or for transportation to the packing plant. (Above) Aerial view of National Beef’s Brawley Beef processing facility, the first to open in the U.S. in 20 years. (Above right) Most of the cattle in Imperial Valley feedlots are holstein steers, which are placed on high-concentrate feed for 300 days or more to reach an optimum weight of 1100–1200 pounds. ABUNDANT OPPORTUNITIES January 2012 l 13 VALLEY’S TOP CROP continued FROM previous page nice restaurant with good beef,” Cameron said. “To me, this economy is shaping up just like 2008, and that could have a definite effect on our business.” In an ironic twist, the nation’s enthusiasm for green energy has taken a bite out of beef. The cost of the corn fed to cattle has doubled in the last year, largely due to the growing ethanol industry. There is less corn now available for feed, in part because of government incentives for ethanol development. And, storms in the Midwest have further cut corn supplies and raised prices. “We’ve had a pretty good run this past year, but I am not optimistic for 2012,” Cameron said. Despite challenges, the local cattle industry has an edge with the local beef processing facility now operated by National Beef, one of the nation’s largest beef processors. The story of how the Brawley processing facility came to be is true Imperial Valley pioneering. The idea for Brawley Beef started to germinate in the late 1990s when local cattle feedyard operators realized the processing plants they were using in Vernon, CA, were starting to close. That would have left a processing facility in Arizona as the only regional option available. And, sending cattle by rail to major processing centers in Texas or beyond would have been cost prohibitive for Imperial Valley cattle operations. “We needed to have another packing shed in this region All in the Family For these Imperial Valley ranchers, sheep are much more than just a business. By Darren Simon F Wyoming-based producer Broadbent Brothers Sheep Co., just like his father did before him. Like Lizarraga, The Martin Auza Sheep Co. winter pastures 45,000 sheep in the valley from © Bill gates PHOTOGRAPHY or Robert Lizarraga, Martin Auza and Saturnino Araguas tending sheep is more than big business; it is family. “That’s why we stay in this industry,” said Lizarraga, “It’s in the blood …you love the animals.” Every winter, Lizarraga pastures about 30,000 head of sheep in the Imperial Valley for 14 l ABUNDANT OPPORTUNITIES January 2012 September to April every year. They, Araguas and one other herd manager truck in sheep from Wyoming, Colorado, Hemet (CA) and elsewhere for the valley’s balmy winter temperatures and acres of alfalfa stubble. It is the perfect environment for sheep to gain weight and to give birth to lambs. But make no mistake, the sheep and lambs frolicking under the valley’s winter sun are more than a quaint nod to a tradition that has Old World roots in the bucolic Basque region of Spain. The Imperial Valley sheep industry is nothing to sneeze at. According to the latest Imperial County Agricultural Commissioner report, about 150,000 continued on page 32 to be competitive,” Brandt said. That led a group of local cattle industry leaders to jointly invest in the effort to open a packing plant. Initially, as other partners were brought in from outside the valley, locations in Arizona also were considered for the plant site. Ultimately, Brawley was selected and in 1999 plans were under way to build the plant. The plant opened in 2001. By three years into its operation, the local facility owners realized that to build the Brawley facility to its full potential they needed bigger guns. In 2006 National Beef, which is based in Kansas, purchased the plant and the local feedyard owners became stockholders in the company and thus continued to have ownership of the local plant through National Beef. Today National Beef employs 1,200 workers with an annual payroll of $400 million at the Brawley facility. It also has generated at least 200 more jobs in ancillary industries that work with the plant, according to Keith Welty, spokesman for National Beef. The plant continues to benefit the local cattle industry, providing a way to pack and market the local beef under the National Beef banner. It is also a significant asset for National Beef. Brawley, Welty said, “allowed National Beef to grow into a new geographic region from our primary procurement and operating area of southwest Kansas, expand our market share and to be closer to significant population centers of the western U.S.” Additionally, the Brawley plant exports some of its beef to Japan and other Pacific Rim countries, Welty said. The plant processes about 12,000 head of cattle a week, 60 percent of which come from Imperial County cattle feedlots, and processes and markets fresh beef and beef byproducts for domestic and international markets. Cameron added of National Beef: “It’s become a good partnership. It’s benefited all the guys down here whether or not they were part of the original Brawley Beef.” As for the future of the cattle industry in Imperial County, both Brandt and Cameron are confident the industry will continue to overcome obstacles and thrive. “Everybody seems to be hanging in there,” Cameron said, adding: “everyone seems to have someone who will be around and be part of the succession plan. I think everyone is pretty much in this for the long haul.” Brandt said he has loved his career in the cattle industry, despite the challenges. He added: “Anyone coming into this business has to have those feelings because there will be ups and downs.” Simon can be contacted at [email protected] California Manufacturing Technology Consulting® For more than 25 years CMTC has provided “hands-on” solutions to thousands of manufacturers in Southern California. Our capabilities and services include: • • • • • • • • • • Strategy and Business Planning Succession Planning Product Innovation and Development Sales and Lead Generation Marketing, Branding and Messaging Advanced Lean Manufacturing ERP, MRP, CMR and IT advisory services M&A and Valuation Services Energy Audits and Related Services Recruiting Services Our services result in an annualized ROI of more than 10 to 1. Some companies have seen their profits more than double in a year. Contact CMTC for a complimentary assessment or for information on how we can help you succeed. California Manufacturing Technology Consulting® www.cmtc.com ABUNDANT OPPORTUNITIES January 2012 l 15 Ticket to a Hungry World Hungry consumers—and livestock—the world over depend on field crops from the Imperial Valley. By GARY Redfern 16 l AABBUUN ND DAAN NTT O OPPPPO ORRTTUUN NIITTIIEESS JJaannuuaarryy 22001122 © Bill gates PHOTOGRAPHY I t’s green, stacks neatly and has global versatility and value. Even though these are the attributes of the U.S. dollar, they also describe one of the most venerable commodities produced by Imperial Valley’s agricultural industry, which was worth $1.6 billion in 2010. Though it grows in many forms and has many names, to the general public it’s simply “hay.” And, in the Imperial Valley it is everywhere, thousands of stacks lining rural roadsides storage areas like a patient infantry ready to advance. Make no mistake, it does move and its arrival at ports in Asia and, increasingly, in the Middle East, is most welcome. The foreign demand “developed because of their needs for annual feed and a growing concern over water: What’s the best use? Feed animals or urban development?” Brawley hay exporter Greg Jackson explained of rapidly growing and landlimited nations such as Japan, Korea and the United Arab Emirates. Those countries decided it was better to provide urban water and import land- and water-intensive feed crops. Jackson, a 23-year industry veteran, is the export sales manager for Border Valley Trading. Founded 22 years ago by Greg Braun and partners Paul Cameron and Bob Presley, it is one of 11 Imperial Valley firms that export hay. It also has a smaller operation in Turlock. Another is El Centro–based El Toro Export, whose president and co-founder, William R. Plourd, said the hay export market developed in the early 1980s due to changes in Asian lifestyle. El Toro opened its doors in 1983 to an eager response. “The export industry took off and we became a player. It was just identifying the hay export market. It coincided with an emerging Japanese economy and a trend (in Japan) toward a more Western diet with more meat and dairy. In order to (Above) About 70 percent of the valley’s wheat crop is exported. (Below) A harvested alfalfa field. produce that they had to improve the quality of what they were feeding the cattle,” Plourd said. Another factor that has persisted over decades is that the Japanese yen has strengthened against the dollar, meaning foreign buyers get a better deal. Where it once took 300 yen to get one dollar, it recently was exchanging just over 80, Plourd said. it has spawned an enormous processing industry that employs hundreds and is worth more than $100 million a year, Plourd said. After the exporters purchase the hay, it is transported to their huge facilities where it is compressed for more efficient shipping. These are factory-style operations bustling with transport trucks, loaders and compress machines surrounded by numerous hay stacks the size of two-story office buildings. The hay is stored under either fixed covers or tarps to preserve its quality. Hay dampened by rain will lose its export quality. The hay’s destinations are broadening beyond the original Asian customers to China, Taiwan, Malaysia, and Middle Eastern nations such as the United Arab Emirates and Jordan. New markets are being sought, including Saudi Arabia, Vietnam and India, and that means exporters travel, too. “The industry continues to grow, but it’s because we find new destinations,” Plourd said, adding it’s also important to maintain existing relationships and face-to-face is preferred. “You need to see your customers. They also come see us and inspect our products.” Flanked by maps of the Middle East and Asia in his office, Border Valley’s Jackson added, “I spend a lot of time traveling, upwards of 60 days a year. We like to travel and learn about these markets. It’s a mix of maintaining our base business and the potential for new customers.” The Internet age, however, means exporters must be ready to serve. “A lot of times the market will find you. You can Google sudan hay and find our website,” Plourd said. continued on page 21 Imperial County Field Crops Crop Acres Gross Value Alfalfa Hay (Baled) 136,815 $ 129,227,000 Bermudagrass Hay 48,726 39,574,000 4,563 8,657,000 Cotton (Lint) 1,373,000 Cotton (Seed) Kleingrass Hay 12,528 13,372,000 Pasture Crops 79,576 3,341,000 59,403 46,600,000 Sugarbeets 25,188 70,099,000 Wheat 58,562 42,424,000 2,505,000 Baled Straw Sudangrass Hay Misc. Field Crops TOTALS (2010) 6,975 2,967,000 352,760 $ 360,139,000 © Bill gates PHOTOGRAPHY The generic term hay refers to a number of “forage” or “field” crops, including alfalfa, sudangrass, bermuda straw, kleingrass hay and bermuda hay. Each has its own nutritional value, which buyers use as a guide to decide what will be fed to which animals. For many reasons, the Imperial Valley was, and is, an ideal source of hay and in fact, its product is among the world’s top-quality feeds. In addition, the valley’s large produce growers must rotate crops at intervals to keep fertile soil from losing essential nutrients and hay crops are an ideal alternative. Because forage crop exporters do not always grow their own crop, growers and hay exporters enjoy a symbiotic relationship. “The beauty of our agriculture here is the ability of farmers to grow many crops a year and there’s plenty of water for farming, plenty of opportunity to increase production,” Jackson said. Plourd has high praise for Imperial Valley field crops. He describes his Asian customers as “appearance-oriented,” meaning the hay needs to look as good as it feeds and he has confidence he can deliver a product that meets expectations. The annual Agricultural Crop & Livestock Report issued by the county Agricultural Commissioner’s office reveals just how important the hay and hay export industries are to the local economy. The latest report, released in May, shows that in 2010, field crops, of which hay crops are a portion, experienced a 15 percent increase in value over 2009. In 2010, total Imperial Valley field crops were valued at more than $360 million, up from $312 million in 2009. That dramatic increase came despite the fact that local growers planted 1,400 fewer acres in field crops. The biggest increases came in sugarbeets, sudangrass and alfalfa. One category of field crop that showed a marked decrease in acreage and value was wheat. The durum wheat grown in the Imperial Valley is used to make pasta. Plourd said about 30 percent of the crop grown in the Imperial Valley is exported. Despite a drop in demand, the crop was still valued at $42 million in 2010. “We still feel the industry will grow,” Plourd said. There is a global need for high-quality forages and they can’t grow their own. “Countries need to be sustainable for protein products and meat and milk don’t import well,” he adds of the importing nations’ needs for feed. Though hay is a stable field crop for the Imperial Valley, Source: Imperial County Agriculture Commissioner—Agricultural Crop & Livestock Report 2010 NUMBERS MAY NOT COMPUTE DUE TO ROUNDING ND DAAN NTT O OPPPPO ORRTTUUN NIITTIIEESS JJaannuuaarryy 22001122 AABBUUN ll 17 17 T and melons fill the grocery store produce section, leading to the region’s often used nickname “the nation’s winter salad bowl.” During winter months the southwest desert region of California and part of Arizona are the only places he art of cooking requires obtaining specific ingredients, combining them carefully and creatively and presenting the final product in an appealing manner. It’s much the same in Welcome to the Nation’s Winter Salad Bowl 18 18 ll A A BB U UN ND DA AN N TT O O PP PP O O RRTT U UN N II TT II EE SS JJ aa nn uu aa rr yy 22 00 11 22 in the nation where produce is harvested. Leaf and head lettuce, onions, broccoli, carrots, cantaloupes, sweet corn, cauliflower and spinach are among Imperial Valley’s top produce crops. While the value of valley produce grew substantially in 2010, not every vegetable fared so well. Head lettuce, normally the valley’s most valuable vegetable, dropped $20 million to a gross value of $126.6 million in 2010. However, leaf lettuce posted a gross value of $166 million, up $50 million from the previous year. Other big vegetable gains were posted in 2010 by market onions, up by $38 million to $65.1 million and miscellaneous small acreage vegetable crops, up by $24.2 million to $80.2 million. “There is no question growing produce is a definite gamble,” said Ayron Moiola, executive director of the Imperial Valley Vegetable Growers Association. “It is labor intensive, markets are risky, it is expensive, there are a lot of challenges… You can make a lot, but you can lose a lot, too.” Jack, who grows about 4,000 acres of produce, said what he relies on to overcome the obstacles produce growers face are the people who have been Produce: © Bill gates PHOTOGRAPHY the most basic part of the food chain: farming. Yet growers must navigate myriad variables no chef would ever tolerate—a situation analogous to having to regularly change kitchens, recipes and ingredients to get consistent quality result and show a profit. If there are masters of this fluid environment, they are Imperial Valley’s produce growers, who combine up to four generations of experience with techno-savvy worthy of Silicon Valley. Though most are college-educated, their arsenals have traditional basics at the ready. “This year was probably the toughest we’ve had (recently),” reflected Alex Jack of Brawley-based Jack Bros. farming. “Rain, hail, cold, the Bagrada bug... Mother Nature just threw everything at us.” Despite the adversities, Imperial Valley produces an aggregate of more than 50 separate vegetable and melon crops, valued at $890.1 million in the 2010 Imperial County Agricultural Crop & Livestock Report. This represents an increase of more than 17 percent over 2009. Grown primarily in the cooler months, Imperial Valley vegetables tongs: © photos.com By GARY Redfern in farming for decades. Yet, he sees a new day is coming. “The management team I have is fantastic and forward thinking, but I would hire (college) graduates in each category. There’s so much technology,” Jack said how agriculture is evolving. Proud to be part of the Valley’s rich agricultural heritage. Committed to being a partner in our bright future. During winter months the southwest desert region of California and part of Arizona are the only places in the nation where produce is harvested. Discussing a recent college graduate he hired on, Jack added, “There’s no replacement for experience. He has the book knowledge, but it takes seven years to learn how to run a ranch.” Yet agronomy, soil and seed science, water efficiency and other cultural practices are only part of the equation. Dealing with changing markets has required changing approaches. “If you’re not a year-round shipper, it’s tough,” Jack said. Like many other produce growers, his company now contracts with third-party sellers and shippers to deal with chain stores. Holtville-based produce grower Jack Vessey said the family company founded by his great-grandfather in 1923 has adapted a well. “The biggest change is there used to be a lot of one-area shippers. You grow a small amount and find someone to sell it to. There’s very few of those,” says Vessey, whose company farms about 10,000 acres in Imperial Valley. He added, “Many of us in Imperial Valley have joint venture projects. I just grow it. They (third-party operations) come in, pack, ship and sell it. And, it’s in my best interest not to put my name on it. The larger stores want to deal with the same company all year.” No longer do all growers put their own brand name on their product. Jack said much of his produce ends up with brand names familiar to a broader consumer market, including Green Giant. New marketing approaches may also take Imperial Valley produce to fast-food outlets. “We sell to the largest fresh market onion producer in the U.S., Gill’s Onions in Oxnard,” Jack said. “They’re trying to secure a contract with McDonald’s. They (McDonald’s) bought red onions for their sirloin burgers. Now they’re (Gill’s) trying to get a contract for yellow onions.” The access to major markets comes with another yet another compromise: some of the large packers and shippers continued on Next page Contact us to see how a Farm Bureau membership can benefit you. 1000 Broadway, El Centro 760.352.3831 . [email protected] www.icfb.net . www.JoinFB.com B enson Farms, LLC is a fourth generation, family-owned farming business providing high-quality hay, seed, and vegetable crops since 1932. We offer contract grower services and are affiliated with Planters Hay, Inc. Benson Farms, LLC Stephen Benson, President 30 East Shank Road, Brawley, CA 92227 Cell: 760-996-1671 • Office: 760-344-4591 • Fax: 760-344-7691 [email protected] ABUNDANT OPPORTUNITIES January 2012 l 19 WINTER salad bowl continued FROM previous page have moved to Yuma, AZ, where labor is less expensive and there are fewer costly state regulations to deal with. “That’s something that’s sad,” Vessey said. “I wish it would change.” One grower bucking the trend is Ralph Strahm, who farms Imperial County Vegetable & Melon Crops Crop Acres Gross Value Broccoli (Market) 12,215 $ 75,298,000 Cabbage (Market) Carrots (Total1) Cauliflower (Market) Sweet Corn 1,147 6,881,000 12,503 64,225,000 3,341 26,964,000 10,523 38,434,000 Head Lettuce (Total ) 19,657 124,638,000 Leaf Lettuce 14,138 166,052,000 Spring Mix 5,673 33,754,000 Onions (Total1) 8,366 76,069,000 Potatoes 1,347 11,844,000 Spinach 6,184 20,407,000 Misc. Vegetables3 9,934 80,217,000 Cantaloupes 7,795 53,645,000 Honeydew & Misc. Melons 1,041 6,882,000 2 Salad Products 10,622,000 Watermelons TOTALS (2010) 1,637 13,194,000 115,501 $ 809,126,000 Source: Imperial County Agriculture Commissioner—Agricultural Crop & Livestock Report 2010 NUMBERS MAY NOT COMPUTE DUE TO ROUNDING 1 ) Market, processing & other; 2) naked pack, wrap pack, bulk; 3) aloe vera, arugula, artichokes, asparagus, beans, black eyed beans, beets, bok choy, napa cabbage, celery, chive, Chinese spinach, cilantro, collard, cucumber, dandelion greens, eggplant, endive, fennel, gai lon, mixed herbs, kale, leek, mizuna, mustard greens, okra, parsley, parsnip, peas, peppers, rapini, rutabagas, squash, Swiss chard, tomatoes, turnips Agricultural Resources Air Quality Analysis Conservation Planning Cultural Resources Ecosystem Restoration Environmental Planning Greenhouse Gas Analysis Landscape Architecture Native Plant Nursery Natural Resources NEPA/CEQA Noise Analysis Mitigation/Monitoring Visual Impact Analysis SAN DIEGO | SANTA MARIA | TUCSON | AUSTIN www.reconenvironmental.com 20 l ABUNDANT OPPORTUNITIES about 4,700 acres of produce with his father and brothers. “We probably go more to local markets,” said Strahm of the targets for a produce salesperson with whom he contracts. “Some of it’s a value judgment. We’re known in the industry and we have our own brands.” Strahm said his best customers are local grocers in the Los Angeles area, as well as some in Canada and Mexico. The Strahm farm also has ventured into organic produce, which must be certified to be grown under certain conditions that avoid conventional pesticides and fertilizers. In 2010, there were 26 certified organic farms in the Imperial Valley with gross sales of $36.1 million, according to the county crop report. “It’s working out O.K. It’s a small portion now (of what Strahm grows), but I see it growing. It’s a relatively new product model and we learn a lot,” Strahm said. Even as growers test new marketing approaches, they still face traditional challenges, including crop predation by a variety of pests. In 2010 it was the Bagrada bug, a small stink bug with an enormous appetite for broccoli, cauliflower and cabbage, caused significant damage to valuable crops. The Imperial County Agricultural Commissioner’s Office headed by Connie Valenzuela provides an important first line of defense against agricultural pests. “We spend a lot of time on pest detection and control. It never ends,” Valenzuela said. “We have to eradicate or learn to live with (pests).” The enemy is a mobile society that brings in plants and plant products from travels or receives them in the mail, Valenzuela said. And Imperial County’s border location puts it at risk of incoming problems. However, Imperial Valley growers and the state have a history of waging heroic and creative battles against pests. In the 1990s, a whitefly plague virtually wiped out the melon crop until growers working with researchers and government representatives identified a tiny wasp with a voracious appetite that has brought the whitefly into check. “California is amazing,” Valenzuela said. “When there is a problem, we mobilize. It is the only state that has ever eradicated a pest.” Valenzuela said two such victories came in Imperial County with the elimination of the pink bollworm, a vermin that had brought the Imperial Valley cotton crop to its knees and the control of hydrilla, an insidious, fast-growing water weed that can clog irrigation canals, which is now controlled by sterile grass carp. However, because of state austerity measures, funding for agriculture programs has been cut back including agricultural inspection stations that check vehicles entering California for plants and produce carrying potentially dangerous pests and disease. “We see in a year or two these cuts having a big impact on continued on page 31 January 2012 Ticket to a hungry world continued FROM page 17 The hay loads are trucked from the valley to the massive seaports in Long Beach and Los Angeles where container ships await. Despite being just over 200 miles away, those ports remain a vital link. “One of the important parts of our (business) model is the efficiency to ship overseas,” Plourd said. “The Long Beach port is a huge port with many containers. This is very beneficial.” Jackson added, “When you talk about competitiveness, it’s a definite advantage we have in our industry compared to other companies in other areas of the U.S. There’s better availability of empty containers. The other West Coast ports, Seattle and Oakland, are limited in size.” Of course, the Imperial Valley is not the only farming area to discover hay exporting. There’s competition from other areas of California and the U.S., Canada and even Europe. It means firms such as El Toro and Border Valley must strive constantly to provide the best hay at the best price. With rising fuel costs, currency fluctuations, political unrest in the Middle East and myriad other variables and it’s clear that only the strong survive. For the Imperial Valley strength means reputation, not just of the firms, but for the area itself. “Our business philosophy is we work very hard to promote the Border Valley image: good quality hay at a reasonable price and a stable supply,” Jackson said. His biggest challenge: “The capital to buy all this hay. We buy hay when the farmer bales it and we don’t get paid until we ship. Hay is stored anywhere from two weeks to 12 months or more (before export). This is industry is very, very capital intensive.” Plourd added, “When you’re dealing with any non-freemarket society (such as some in Asia and the Middle East) there is a risk we have to assess.” And, currency rates are monitored carefully because Plourd said, “Exports are sensitive to currency changes. A weak U.S. dollar allows our customers to import more efficiently.” Both express confidence in their business models and the Imperial Valley as a whole. “As long as Imperial Valley can produce competitive crops, we can continue to export,” Plourd concluded. Explaining a key aspect to the global reputation of Imperial Valley agriculture, Jackson said, “A big advantage for Imperial Valley is the use of pest control advisors. We’ve got people walking these fields. We’re able to confidently go out and market a product and be confident it’s free of disease and pests.” And, he said, “Those who answer the challenges are going to be more successful.” Redfern can be contacted at [email protected] “Investments In Nature” Agricultural Consulting, Development & Management “Over 100 years and four generations of farming and real estate experience in the Imperial Valley!” www.donbarioni.com ABUNDANT OPPORTUNITIES January 2012 l 21 SOWING Around the Globe By GARY Redfern I n one of the Bible’s most famous parables Jesus feeds thousands with just a few fish and loaves of bread. A modern-day embodiment of that miracle might be the highly refined, or breeder, seed used in agriculture today. Properly cultivated, just 20 pounds of the precious pellets can be parlayed into a much larger quantity of seed that will grow into millions of pounds of high quality grain to help feed the nation and the world. Orchestration of this delicate symphony of agricultural bounty requires many interworking instruments skillfully played. Rubin Seeds in Brawley is one of several seed companies in the Imperial Valley that play a role in the world of practical science and determined farming yielding results nothing short of miraculous. “The (seed) breeder might have worked for 10 years to get that seed,” Rubin Seeds President Ron Rubin said. “It’s a scientific process of trial and error. The breeder is looking for a product that services an area with certain quality factors. You develop it for a market to do a certain job.” An example is CUF 101, a seed type from which most of the alfalfa in Imperial County is grown. It was developed in cooperation with local growers by Dr. Bill Lehman of the UC Desert Research and Extension Center in Holtville. The objective was to breed a variety of seed that would result in optimal yield and quality in the Imperial Valley’s unique environment. It was time and resources well spent. “It was released in the 1960s,” said Rubin, an articulate man with a handlebar mustache and affable demeanor. “People have done things with it over the years, but we don’t have a whole lot of varieties adapted to Imperial Valley.” Such is the primary objective of seed development: create something that will work the best in the environment of a certain growing area. From meticulous seed breeding to growing it and dis- 22 l ABUNDANT OPPORTUNITIES January 2012 tributing it, seed is big business in Imperial County. In 2010 there were nearly 54,000 acres of seed grown in the Imperial Valley with a value of almost $53 million, according to the county Agricultural Commissioner’s annual crop report. Types of seed grown include alfalfa, bermudagrass and onion, as well as smaller amounts of various produce crops. An intriguing aspect of the business is “seed increasing,” which Rubin described as taking a few pounds of pure breeder seed and expanding them to tons of seed without losing the quality. Imperial Valley’s year-round growing season makes seed increasing very attractive to growers in other parts of the nation and the world. “One of the things we specialize in is seed increases,” he said. “We plant wheat and canola (seed) in October so the seed is ready to ship to the Dakotas, Minnesota and Canada for planting in April.” Yes, Imperial Valley plays a key role in providing seed used in the legendary amber waves of grain on the vast farms of the northern plains and Midwest. There can be up to four generations of seed resulting in a final product called “certified seed,” meaning a grower knows the result will be a crop of top yield and quality. That confidence is the cornerstone of Rubin Seed, which Rubin founded in 2006 after working in the local seed industry for more than 20 years. It’s now a family business as he is joined by his son, Kurt, a graduate of the agriculture program at the California Polytechnic University, San Luis Obispo. The Rubin Seed plant on the north edge of Brawley is a bustling mix of warehouse-sized buildings, storage silos and conveyors. Besides seed increases, Rubin works to match local alfalfa seed growers with buyers locally and as far away as Mexico, Saudi Arabia and Argentina. The company sells seed to growers, grows wheat seed for sale, provides management services for seed production and stores wheat and seed. It also has a processing operation that cleans seed to remove contaminants such as weed seed, dirt and small sticks. Other local seed companies focus more on onion seed and servicing the market for produce seed, a massive industry considering the variety of crops grown in Imperial Valley fields. Rubin said his business focuses on the niches in the market it can best serve, so the company mostly deals in wheat, canola, alfalfa and bermudagrass seed. However, the firm’s seed cleaning operation handles a variety of seeds, including barley, artichokes and coriander grown in the Imperial Valley. “My whole existence is that I do business with a farmer and a seed company and get them the product they want. If they can’t make money, my purpose to exist ceases,” Rubin said. Rubin has even had the chance to name a wheat seed his firm markets, though he has no expectation that will earn him any special recognition “It is called RS 559.The company that developed it was Resource Seeds. They left it up to me, so I used their letters and added a number,” Rubin said. Other seeds have names with local ties. The Desert King wheat variety developed by the University of California is so From meticulous seed breeding to growing it and distributing it, seed is big business in Imperial County, with a value of almost $53 million in 2010. © photos.com named because it was bred to grow in the Imperial Valley’s desert climate. Orita comes from a local feedyard and a rail siding of the same name. Kurt Rubin shares his father’s enthusiasm for the business. After college he did a stint in the insurance industry before joining his father in the business. Ron Rubin said he encouraged his son to try a different type of work to see if he really wanted to return to agriculture. Making his way through the Rubin Seed complex where seed seems to be going in every direction as contaminates are shaken, strained and blown out by an array of contraptions, Kurt Rubin said, “I like being able to get outside every day. I came from an insurance company, so I like it here where you’re working with hard-working farmers.” Surely many farmers appreciate the Rubins and the rest of the seed industry. Imperial Valley has nearly 500,000 acres of farmland and as large as it is, its legendary bounty owes its reputation to the tiny seed. Redfern can be contacted at [email protected] ABUNDANT OPPORTUNITIES January 2012 l 23 Taking Food Safety Seriously Protecting public health and ensuring healthy crops are grown and delivered to market affects all aspects of farming in the Imperial Valley. By DARREN SIMON 24 l ABUNDANT OPPORTUNITIES duce grower Larry Cox have taken leading roles in developing the regulations and research on food safety as representatives on the California Leafy Greens Marketing Agreement January 2012 (LGMA) board of directors. The LFMA website states the agreement “is working to create a culture of food safety on leafy greens farms… the LGMA incorporates science-based © Bill gates PHOTOGRAPHY I n September 2006, an outbreak of food-borne illness sickened more than 200 people in 26 states, caused three deaths and set off shockwaves that forever changed California’s produce industry. That the outbreak was eventually isolated to spinach contaminated with E. coli from one farm in San Benito County, CA, was of little consequence. Irrevocable damage had been done. The public’s trust was shattered. The ripple effect devastated growers throughout California, including those in Imperial County, where spinach was not even being harvested at the time. Produce markets plummeted as public fear rose and growers lost millions and left fields unplanted. California’s produce growers knew the time for change had come and that they would have to lead the way. The result was the formation in 2007 of the California Leafy Greens Marketing Agreement, an effort to lower the risk of food-related illnesses by voluntarily agreeing to expand safety measures and monitoring beyond state and federal requirements. Today, protecting public health and ensuring healthy crops are grown and delivered to market affects all aspects of farming in the Imperial Valley. “If we weren’t doing what we do in food safety, we wouldn’t be able to do this business,” said produce grower Jack Vessey, whose family business is Vessey & Co. in Holtville. Vessey and Brawley-based pro- Cory Peeks, food safety manager for Vessey Company of Holtville, inspects a melon field. when a field was cleaned, sheep herders would walk sheep across or down country roads to the next field. Now, sheep herders are being asked to truck their sheep from location to location to ensure they do not jeopardize produce growers ability to market their crop. Sheep herders such as Saturnino Araguas of Holtville understands the need for food safety, but he points out that the sheep industry in Imperial Protecting public health and ensuring healthy crops are grown and delivered to market affects all aspects of farming in the Imperial Valley. County is sanitary and has never had any issues with E. Coli. He said trucking sheep is a costly, time consuming operation that has led to ongoing discussions with produce growers as both learn to adjust the changing food safety landscape. Vessey’s company has taken food safety so seriously that he has hired a full-time food safety manager. He said most growers in the Valley have someone devoted at least half time to food safety issues. “You have to do these things. Otherwise you are not going to be selling crops to the Costcos and Vons of the world,” Vessey said. Cory Peeks is Vessey’s food safety manager. “It is my goal to keep food safe for the consumers,” she said. One critical part of her job is to do a pre-season survey of Vessey’s fields to make sure they are free of trash or animal droppings—anything that could make a field suspect and put a crop in jeopardy. It is also her responsibility to keep records of the fields and all food safety measures, so the documentation is available for food safety officers who regularly monitor local fields. Her job is also about educating the public about the way their actions can have an impact on food safety. Walking dogs near produce crops, for instance, has the potential of introducing potential contaminants. “Education for the public is a critical part of this,” Vessey said. Traceability is another critical point. The federal government last year, in response to nationwide food-borne illness outbreaks, adopted regulations heightening the level of traceability on agricultural products. Through documenting and digital records, any food item that ends up the store is supposed to be traceable back to the plant where it was packcontinued on page 27 A B UANBDUANNDTA O NP T POOPRPTOURNTI U TN I EIST I EJ aS n uJ aa rnyu a2 r0y1 22 0 1 2l ©ISTOCK/MicroColour Photography food safety practices and mandatory government inspections in an effort to assure safe leafy green products.” Vessey said the growers producing 99 percent of Imperial County’s leafy green vegetable adhere to the LGMA food safety program. The program consists of such measures as continuous surveying of fields both prior to planting, during planting and at the time of harvesting to reduce the risk of contamination. In addition, irrigation water is tested on a monthly basis. There are regular audits of farming operations by food safety officers. Even with such steps there is no way to completely protect against contamination, Vessey acknowledged. “There is no-kill step,” he said, to completely eliminate the threat of contamination. However, he said as many steps as possible are being taken to minimize the risk. The heightened concern about food safety does lead to unexpected complications. One such complication is a changing relationship between produce growers and those in the sheep-herding industry. Imperial Valley produce grows in the winter, the same months that sheep herding operations truck in sheep to graze. Vessey said sheep and produce have co-existed in near proximity without a hitch out—until now. Now, to satisfy buyers, growers have found themselves having to abide by rules that require livestock, including sheep, be kept a certain distance away from vegetable fields to minimize any potential risk of E-coli contamination. McDonald’s, for example, will not consider buying produce unless it is grown at least one mile away from livestock, Vessey said. Sheep spend the winter grazing on various fields throughout the valley. Until recently, the practice was that 25 l 25 Growing Algae…in the Desert Nutritional superstar Spirulina is grown by Earthrise Farms in the world’s largest aquaculture operation of its kind. By GINA Germani F © photos.com © Bill gates PHOTOGRAPHY rom one small parcel of land in a remote section of the vast Imperial Valley agricultural area, the world’s largest aquaculture operation of its kind produces a “crop” that is highly prized by cultures around the globe. At its 108-acre facility in near the rural city of Calipatria, Earthrise Farms cultivates, harvests and processes Spirulina, a blue-green algae that is becoming the darling of U.S. natural food aficionados because the minute organism is rich in protein, vitamins, minerals and immune system building nutrients. Why grow algae in the middle of the desert southwest? According to the Earthrise Farms website, “We copy the optimum conditions for Spirulina growth in nature to produce the world’s best Spirulina.” Amha Belay, Earthrise Farms chief technology officer, a leading Spirulina researcher who studied the algae growing naturally in lakes in his homeland of Ethiopia more than 30 years ago, explains what drew him to the Imperial Valley in 1983. “If it can grow wildly,” Amha Belay holds a jar of Spirulina Belay recalled of his work in Ethiopia, “then think about the ramifications of growing it in a contained environment.” That one question eventually led him to the Imperial Valley, where the region’s sun and water provide an optimal Spirulina growing environment and where a group of scientists in the mid-1970s was exploring the use of the blue-green algae to combat world hunger. Earthrise Farms and Earthrise Nutritionals went into operation in 1983 producing Spirulina, a food source that packs 20 times more protein than soy, Belay said. Earthrise is owned by DIC Corp, a Japanese diversified chemical company with a commitment to developing microalgae for food, biochemicals and pharmaceuticals. The 26 26 ll ABBU UN ND DA AN NTT O OPPPPO ORRTTU UN NIITTIIEESS JJaannuuaarryy 22001122 A company is proud to be the first commercial producer of Spirulina and still the world’s largest. It continues to conduct research on Spirulina’s potential as a food source to relieve world hunger and as a nutritional and curative agent. Today, Earthrise Farms operates a tightly secured facility near Calipatria with 30 lined food-grade ponds, a series of laboratories for research, product analysis and quality control, and a processing plant that extracts the water from the harvested algae and then dries it for packaging as nutritional supplements in powders, tablets, caplets, and capsules. Using ecologically sound cultivation processes with no pesticides or herbicides, Earthrise’s Spirulina yields more nutrition per acre than any other food, Belay said. Earthrise supplies Spirulina to about 30 countries and posts $10 million a year in revenues. Initially, demand for Spirulina came from the Asian market. But demand is growing. In the past decade, American consumers are growing more interested in Spirulina as a nutritional superstar. Earthrise’s products are USDA-certified as a processed specialty food and in 2003 the U.S. Food and Drug Administration accepted the company’s designation that Spirulina is Generally Recognized as Safe, or GRAS. “Without that,” Belay said, “major U.S. companies would not buy our product.” Earthrise products can be found in such popular U.S. chains stores as Whole Foods and in GNC-brand generics, as well in other major-brand products. Earthrise Spirulina is used in cheese crackers, energy bars and even in specialty beers, Belay said. Scores of studies have concluded that tiny Spirulina has a lot to offer. It is 60–70 percent vegetable protein, rich in B-complex vitamins, vitamins A, C, D and E, iron and is a good source of the fatty acid GLA (gamma linolenic acid). Research studies indicate Spirulina provides important antioxidant benefits and may promote immune system health. “If you are not a person who eats their five servings of fruits and vegetables a day, which is almost impossible, then one teaspoonful of Spirulina a day will go a long way to provide those benefits,” Belay said. Earthrise CEO Hiro Mochizuki said the reasons people use Spirulina differ widely around the globe. “The demand for Spirulina is a personal agenda, based on age, based on gender and nationality,” he said. “In China, men demand Spirulina for the immune difference. Women in China, 40 years and older, demand it for anti-aging.” And, in German-speaking countries, Earthrise market research found consumers want Spirulina products as a staple vegetable. Now the U.S. market is catching up with the rest of the world. Mochizuki said, “In other countries, especially Asian countries, they’ve always known the benefits of Spirulina, and the demand is big, it’s huge.” Facing growing demand, both in the U.S. and globally, Earthrise is beginning an expansion that will add another 15 ponds and 40 acres to its Imperial Valley production facility over the next five years. © Bill gates PHOTOGRAPHY Germani can be contacted at [email protected] Amha Belay at Earthrise Farms’ Calipatria facility, where the Imperial Valley’s abundant sun and water provide an optimal growing environment for Spirulina. FOOD SAFETY continued FROM page 25 aged and to the field where it was harvested. While California vegetable growers’ wake-up call came in 2006 from spinach contaminated with E-coli, the alarm sounded for the beef industry in 2003 over mad cow disease. The first apparent case of the disease was identified in a cow in the state of Washington, which sent shockwaves across the global market. Within hours, Japan banned all imports of U.S. beef. South Korea, Taiwan, Malaysia and Singapore all followed suit within 24 hours. Bill Brandenberg of Meloland Cattle Co. in rural El Centro said even before 2003, food safety steps to protect the consumer were in place. In fact, he said, food safety has been a growing focus of the industry over the last 20 years. And, since 2003, state and federal regulations and industry selfpolicing have expanded to ensure the consumer has the best possible product. “We feel pretty confident as an industry we are producing a safe product,” he said, adding the consumer has no idea the level of inspection that occurs on all beef from the feedlot to the packing plant. At the National Beef facility in Brawley, the cattle are individually inspected prior to entering the plant and the inspections continue throughout the packing process. Brandenberg said all of the inspections are done by U.S. Department of Agriculture officials. “There are hundreds and hundreds of inspections every day,” Brandenberg said. Federal inspectors have to certify the facility is cleaned and ready for use before the packing plant can even open its doors in the morning. Feedlot operations, such as Brandenberg’s, also must adhere to state and federal food safety regulations. Brandenberg said he and other local feeding operations also adhere to even stiffer restrictions set by their own industry under the auspices of the Feeder Council arm of the California Cattlemen’s Association. The requirements are strictly voluntary, but all the Imperial Valley feedlots abide by them. The Feeder Council regulations require feedlot operators to do quarterly tests of the feed to ensure it is free of any pesticide residue, something neither the state nor federal government mandates. There are costs to food safety. For packing plants, costs of production have risen 10 percent, Brandenberg said strictly to meet the needs of food safety, and that is a cost that is shared throughout the cattle industry and may impact what consumers pay. In the end, the goal is to provide a sense of security to the consumer that beef produced in the U.S. is safe. “The food safety in the U.S. cannot be matched in the world,” Brandenberg said. Simon can be contacted at [email protected] ABUNDANT OPPORTUNITIES January 2012 l 27 Agribusiness 101 IVC Harvests a Commitment To Agriculture By Gina Germani P © Bill gates PHOTOGRAPHY at Pauley has that endearing demeanor of a farmer—a man of few words, an aw-shucks persona that is quick to deflect a compliment and the knowledge and knack to snap open a rock-hard wheat flower in one pinch just to show you whether it’s in its milk or kernel stage. Yet, get him started on his visions of the future for the agriculture pro- Pat Pauley, director of IVC’s agriculture program gram at Imperial Valley College, and Pauley becomes a vivacious, chatty college cheerleader in a nonstop dialogue about potential and promise. “The Imperial Valley is the ‘Alice in Wonderland’ of farming,” Pauley said. “We are down the rabbit hole. We are upside down. We have a growing season that exceeds virtually any other growing season in the country. We have the ability of double-cropping, and in some cases triple-cropping here.” And that, says Pauley, is the reason 28 l ABUNDANT OPPORTUNITIES January 2012 IVC’s ag program is ripe for revival. “When I got here we had two dilapidated tractors, one disk, and a field that wouldn’t run water if you paid it to,” said Pauley, who became the director of the agriculture program at IVC in 2009. He was also disappointed that in a student body of about 7,000 at the time, there were only a dozen majoring in agriculture. In its heyday during the 1970s and ‘80s, the IVC ag program was booming with 80-acre alfalfa harvests, a horse arena, a machinery shop and about 200 students graduating annually, according to Pete Mellinger, who founded the program and is now retired. Back then, students could choose from four ag industry associates degree programs and graduates were snapped up for mid- and upper-management agribusiness positions locally and around the country. Following Mellinger’s retirement in 1989, the college’s farm land was leased out to a local grower for a few years, and then it became barren. Some of the land has been used for campus construction projects. The original 80 acres became 35. The number of agriculture courses was whittled down from 30 to only three. Two of the four degrees—ag chemical technology and animal science—disappeared. “There wasn’t continuity for years,” Mellinger said. “In just a couple of years there were four or five people they had in my place, and most of them were from out of the region. They may not have understood the dynamics.” While farming still reigns as the Imperial Valley’s major industry with nearly $1.6 billion in annual gross production, the local labor force saw significant changes during the last 25 years, focusing on law enforcement and other fields. Centinela and Calipatria state prisons, built in the 1990s, employ 2,400 people in the county. Since 9/11, the El Centro sector Border Patrol has doubled its number of agents to 1,200. And with geothermal, solar and other renewable energy prospects cropping up, the labor market diversified. Mellinger believes that might have contributed in part to the ag program’s decline. “Back then the IVC board was made up of farmers, fertilizer companies, feedlots, entomologists, equipment dealers and produce companies,” Mellinger said. “I am not criticizing the current board, but the emphasis is more on this ‘green revolution’ nowadays, not on agriculture.” Long-time IVC Trustee Rudy Cardenas, however, thinks the program just languished without a leader. “After Pete Mellinger left there was quite a bit of turnover in that department, and I just think that the interest wasn’t there from the students. But now you have a dynamic ag instructor that’s driving the ag program.” The arrival of Pauley, who holds a Ph.D. in agriculture education from Pauley, thanks to contracts with and donations from local farm machinery, labor, fuel, seed, fertilizer, and other local professional services. The IVC Agriculture Advisory Board meets at 6:30 p.m. the first Wednesday of every month at the Meloland UC Davis Desert Research Center in Holtville, and Pauley invites everyone to participate and contribute. He chalks up the accomplishments to community and industry involvement in the program. “The early bets have paid off,” Pauley said. “Now it’s time to get a piece of land that won’t get paved over, or a building slapped onto it. “My ultimate vision, and I might be able to get it into place before I retire, would be to have a 400-acre facility off-site, away from the campus,” Pauley said. Such an ag-teaching facility, he continued, would have farm land for vegetables, forages, pastures, greenhouses, livestock corrals, a machinery shop, three classrooms, and offices. IVC has just so much room to grow on its 160 acre campus, which is why Pauley believes an off-campus agteaching facility is important. As other college programs expanded, the ag program’s space has shrunk. What once was the IVC ag machinery shop now houses the college art department’s kilns and easels. Part of the farm land used by the ag program became the campus north parking lot. Pauley believes the future IVC ag program can accommodate students from all reaches of the world. “There is so much potential here,” Pauley said. “I see this as a place where students from everywhere will come to study agriculture because of the magnitude, the diversity, and in some regards, the uniqueness of the way thing are done here. “I want to build a program that will be fat, sassy, and happy by the time I retire,” Pauley said; as he surveyed the chest-high wheat crop his students grew. “And then I get to come back 10, 15 years later and hope to see that it has continued to grow and prosper.” Germani can be contacted at [email protected] © Bill gates PHOTOGRAPHY Texas Tech, shook the IVC agriculture program out of the doldrums. Several growers and agribusiness representatives jumped at the chance to help rejuvenate the IVC ag program when Pauley came calling for their support. Ed Hale Jr., a third-generation Imperial Valley farmer and a current member of the IVC Agriculture Advisory Board, was the first to step forward. He leveled the farm land just north of the campus—part of the $200,000 of inkind services Pauley has drummed up from several growers and agribusinesses since he arrived. “I got a lot out of the program when I was there,” said Hale, who attended the IVC’s ag program that Mellinger ran, “and I don’t mind giving something back. So, I said, ‘we can do this for you.’ ” Hale said he also has a vested interest in today’s IVC ag program because he needs a skilled workforce. “The tractor we use has seven onboard computers in it,” he said about his GPS-based land leveling equipment. “It’s got a touch screen that you’ve got to be fairly computer-literate to operate. We need young people with those skills, and that’s where junior colleges come in.” Within a year after the land was leveled, Pauley and his students were planting, growing, harvesting, selling, and managing salable wheat. “I’m not producing people that I expect to be out on the end of a hoe,” Pauley said. “I’m producing people I expect to be in managerial positions. And one of the things you need in ag education is to follow the market and identify what you should do to capitalize on maximal revenue and profitability. God threw it in our lap that wheat was at historic highs for two years I was here.” And, the ag program’s bank account is $125,000 strong and independent of college funding, according to (From left) IVC instructor Dr. Pat Pauley with students Dimitri Borastynski, Pete Guzman, Hugo Aguilar and Alison Willette ABUNDANT OPPORTUNITIES January 2012 l 29 Match Made in Heaven With a background in science and love of the outdoors, Connie Valenzuela is the new Imperial County Agricultural Commissioner. By SUSAN GILLER W © Bill gates PHOTOGRAPHY hen Connie Valenzuela walked into the Imperiabout 40, the county Agricultural Commissioner’s office caral County Agricultural Commissioner’s office 26 ries out many functions in its role of protecting and promotyears ago, she was looking for a permanent job ing agriculture, Imperial County’s economic base. Among that would let her put down roots and stop traveling. So she other things, the office does: pest detection, eradication and hesitated before taking the only job available—a temporary management; plant quarantine, exclusion and certification; cotton pest trapper position. seed and nursery inspections; fruit and vegetable inspections; By the end of cotton season, however, she had a permaAfricanized bee safety education, maintaining crop statistics nent position in the department and a growing realization and being the county’s sealer of weights and measures. that she had found the career for which she was destined. To Much of the work requires a science background and the day, after working in virtually every division in the departImperial County Agricultural Commissioner’s office mainment, Valenzuela is Imperial County’s Agricultural Commistains its own lab. sioner, the first woman to hold the position in the county’s For Valenzuela, it was a match made in heaven. She 104-year history. earned her degree in biology at the State University of New “When I started I just wanted to be outdoors,” ValenzuYork College of Environmental Science and Forestry. While ela said. “That spring she grew up in lush, and summer I had rustic farming and the most fun trapping dairy country in the pink bollworm. I loved Catskill Mountains of the work, even in AuNew York, she had not gust.” initially considered a And, from the start career in agriculture. of her career with the “I really didn’t county, Valenzuela was think about what I’d on the road to learn do,” Valenzuela said. and earn the licenses “I liked Jane Goodrequired for the posiall and her pioneering tion to which she was work with chimpanappointed in 2010, folzees, and I loved all of lowing the retirement the sciences, especially of former Agricultural biology.” Commissioner Steve After college VaBirdsall. While a love of lenzuela went to work the outdoors may have for the Forestry Serattracted Valenzuela vice. She took the job to the work, it was her with Imperial County keen and abiding interat the end of the winter est in science that comshe spent working as a pelled her to stay. camp cook for a sheepConnie Valenzuela checks a copy of the latest Imperial County Agricultural Crop & Livestock Report produced by her office. With a staff of herding group pastur30 l ABUNDANT OPPORTUNITIES January 2012 ing flocks in the valley. California takes the counties’ responsibility to agriculture very seriously. State licensure is required for several positions in a county agriculture commissioner’s office. A candidate for agricultural commissioner in any of the state’s 58 counties must pass a battery of progressively more difficult tests and numerous licenses. Before she finished her first temporary trapping assignment, Valenzuela had passed tests to earn three licenses, which made her eligible to apply for a permanent position in the department. She took a hiatus from the testing process while her daughter, Daniella, now 19, was a toddler. Credentials for county assistant agricultural commissioners and the top spot both require written exams and oral boards. “At the end, it is like preparing for a final exam without taking the course,” Valenzuela said. “It covers anything that you might face in the job. And the oral boards are brutal.” Still, she is an enthusiastic supporter of the testing process that had candidates for the ag commissioner tests from all over the state form a study group and work together to prepare. “All the study and research really helped,” she said. “It keeps you focused on the issues you need to know.” After she was named Imperial County’s assistant agricultural commissioner in 2007, Valenzuela started to set up lunch-hour study sessions to help others in the department prepare for the tests that could lead to future promotions. “I think you have to grow the staff from within,” she said. It is becoming increasingly difficult, she added, to find candidates with the science and math background needed to maintain the level of expertise California now requires for agriculture. “California is special,” Valenzuela said. “No other state has county ag commissioners. We have more ag inspectors in one county here than exist in some entire states. The benefit is we can make sure local needs are met.” Local needs include such things as phytosanitary inspection and certification by the ag commissioner’s office to ensure commodities are free of diseases or pests and without which local crops could not be exported. Another vital service California provides through its county agricultural commissioner offices is a pest detection and eradication effort so vigilant that more than once the U.S. Department of Agriculture has agreed to forego requiring a statewide quarantine and the draconian economic impact it could have on agriculture and instead limit restrictions to the specific area where a pest was detected. “USDA will do that because of California’s extensive local pest detection system. We have the data on which areas are infested with a pest, and which areas are free from that pest, and that data can be used to establish a smaller, but still effective, quarantine area. Without that local data, the whole state would be quarantined,” Valenzuela said. She is, however, concerned that budget cuts may reduce the effectiveness of the state’s pest eradication efforts. With its border location, diversity of crops and perpetual growing seasons, Imperial County has more reason than most to be wary of bugs. Recent reports that the South American palm weevil (SAPW) had been found in traps in San Ysidro, near an infestation in Tijuana, put Valenzuela on alert. The pest poses a threat to the date palm and nursery palm industries that produce a substantial crop in parts of Imperial County. Now that she has put down roots in Imperial County, Valenzuela spends more of her time in meetings or at her desk. Yet, she can’t resist checking trees, shrubs and plants whenever and wherever she is out in the county. “I really have to watch myself, though,” she said, “it’s not always safe to do when I am driving.” Giller can be contacted at [email protected] WINTER salad bowl continued FROM page 20 agriculture,” Valenzuela said. Foreign pests aren’t the only threats on the horizon. Produce growers agree that food safety rules have become such an issue that co-existing with neighboring farms can take some effort. “The food safety is so stringent (that) … pasturing sheep is a problem. You can’t have sheep within 400 feet of a vegetable crop,” Jack said. “We go to our neighbor and ask them to move the herd. We will pay them. The sheep farmers have been very good at notifying us.” During the winter produce season, Imperial Valley is home to thousands of sheep trucked in to feed on forage crops. Additionally, there are hundreds of thousands of cattle in feedlots. “McDonald’s won’t buy lettuce grown within one mile of sheep or feedyard,” Vessey added. “It’s difficult to deal with. It’s a third party setting the rules.” A common denominator among those in the Imperial Valley agricultural community is optimism. They know changes and challenges are coming. They also know they’ve handled them since the valley was first irrigated in 1901 and beaten back every threat. “I remember my grandmother telling me once that if Henry Ford were building the Model T today, he would be broke,” Jack said. “What she meant was don’t be complacent. The minute you are, you’re passed by.” Of the outlook for Imperial Valley agriculture, Strahm said, “There’s going to competition for land and water, but we’re well positioned because we’re ready to go into the high value crops (whatever they are). “That’s the thing about agriculture: It’s one of the last production industries in the United States. We have diversification.” Redfern can be contacted at [email protected] ABUNDANT OPPORTUNITIES January 2012 l 31 All in the family continued FROM page 14 sheep grazed in the valley during 2010 with a total value of about $4 million. Valley sheep also produced 469,500 pounds of wool, worth about $324,000. In 2009, the most recent year for which the state Department of Food and Agriculture has comparative data, the Imperial Valley ranked as California’s fourth largest sheep and lamb producing county. And California is the nation’s second leading sheep producer, right behind Texas. Since they were domesticated in 8000 BC, sheep have played a significant role in civilization. Sheep have been a New World staple since 1493 when, on his second voyage, Columbus brought a flock to Cuba. Even with centuries of experience, the sheep industry not a business for the faint of heart. The U.S. sheep industry—and by extension that in Imperial Valley—is being Committed to building the local economy through environmentally sound and cost effective regional solid waste management and energy solutions 444 S. 8th St., Suite B-1, El Centro, CA 92243 760-337-5552 32 l ABUNDANT OPPORTUNITIES January 2012 pinched by competition from New Zealand and Australia as well as the American appetite for other meat. In the past few years, U.S. sheep numbers have dropped to such precarious levels that some processing facilities have shut down. Industry leaders have launched an effort to encourage producers to increase the nation’s flocks. They have also stated a culinary outreach to entice consumers to try lamb, a staple protein source around the globe. Overcoming challenge is nothing new for Imperial Valley’s sheep men. They have known the trials and triumphs of sheep for generations. There have been lean years. Araguas, who emigrated from Spain to become one of the stalwarts of the Imperial Valley sheep industry, said producers face plenty of risks raising sheep with the goal of sending them to market when the price is strong enough to make a profit. Five years ago, he said, the market fell and he lost everything and had to rebuild his operation from scratch. “Not just anyone can do this business,” said Araguas, whose operation is based in Holtville. “You have to stay in the business all your life because that is how you get the experience to do it. Without that experience, forget it.” Auza agrees. His father emigrated from Spain in 1915 at the age of 10 and started herding sheep in Northern Arizona two years later. Martin and all his siblings were raised with sheep. He and three of his brothers ran sheep together in Yuma, AZ, for many years before Martin moved his operation to Brawley in 1988. Now his son, Martin Jr., works with him. There is much about herding sheep that harkens back to another era. Dogs, for instance, remain an integral part of the staff that herds and protects flocks from predators. Other challenges, such as the need to increase the taste for lamb, require a modern approach. Auza, for instance, sits on the American Lamb Council, the national industry organization that promotes lamb through the development of recipes, consumer and retail promotions and outreach to culinary professionals. Despite challenges, including rising operating costs, local sheep herders have reason to be hopeful. In the past few years they have gotten record prices for the lamb sent to market via packing plants in Colorado. Of the industry, Auza said, “I enjoy it—I really do.” Auza looks to the future with confidence knowing that Martin Jr. has grown up with the sheep industry and wants to take over the family operation when his father retires. “He’s there,” Auza said. “He could do it himself today. He enjoys it and that is what it takes.” Simon can be contacted at [email protected] continued FROM page 7 Consider the case of Imperial Valley’s 2010 wheat crop. After leading the state in wheat production in 2009 with a crop valued at $98 million, Imperial Valley’s 2010 wheat value plummeted to $42 million. “What happened is wheat is very sensitive to food prices on the world market,” said Roy Motter, a Brawley wheat grower, who also serves on the California Wheat Commission and the U.S. Wheat Associates, two key research and marketing organizations for wheat. “When the market’s depressed, a lot of guys don’t even plant wheat.” There were plenty of more profitable field crops Imperial Valley growers chose to plant instead. In 2010, just 58,500 acres of wheat were planted in Imperial County, down from 111,600 acres in 2009. The price paid for wheat fell so low in 2009, Motter said, “some guys could not even afford to buy fertilizer and they sold their crop for feed.” Imperial Valley grows durum wheat, the kind used to make pasta. Durum is a crop of choice here because it does not handle rain well, especially at harvest. With Imperial Valley’s average annual rainfall of less than 3 inches, there is a better chance of winning the lottery than seeing rain during the May and June durum harvest here. “Imperial Valley’s unique climate produces a consistently high quality durum,” Motter said. “We have an excellent worldwide reputation for our product that customers seek out.” On the heels of a very favorable 2010 county crop report many Imperial Valley agribusiness leaders are optimistic that the region will continue to hold court in the world market. “There is no question that agriculture has become a star in a down economy,” said William R. Plourd, president of El Toro Export. “The world market is expanding rapidly. That makes the outlook for Imperial Valley agricul- ture look pretty good for the foreseeable future.” The world market for commodities is up and expected to keep growing rapidly. A key driver is emerging markets in India, China and Southeast Asia, where growing middle classes have money and an appetite for U.S. commodities. Motter and other Imperial Valley wheat growers are smiling as they read the tea leaves, too. Motter estimated that this year local wheat growers planted more than 100,000 acres of durum and were getting about $400 per ton at harvest, more than double what the market paid in 2010. “At that level a guy is making money,” Motter said. “Next year, you can expect a lot more wheat.” Giller can be contacted at [email protected] The New Barbara Worth Resort Country Club Championship 18 Hole Course • Open to the Public • Full Size Tournaments • Driving Range • Membership Packages • New fleet of Golf Carts • Crushed Marble Sandtraps • Golf Instruction • Club Fitting • Club Repair Call Now to set up Tee Times, Tournaments and Lessons. • Upscale yet Casual • Great atmosphere • Golf Course View • New and Exciting Menus Head Professional Blaise Smith 760-356-5800 Make Hotel Reservations • 100 Hotel Rooms • Stay and Play packages • Golf Course Views • The Valley’s Newest Sports Bar • NFL Package • Live Entertainment • Food & Drink Specials • Party on the Patio Convention Center & Banquet Facility * Taking Reservations in the Convention Center for Corporate Meetings, Weddings. Quinceañeras, Birthday Parties, Fund Raisers, Holiday Parties, etc... New Banquet Menus • Fine Cuisine • Outstanding Service N10423396 Ag by the numbers Call Jamie Low - Convention and Banquet Manager 760-356-5800 ABUNDANT OPPORTUNITIES January 2012 l 33 Food and Fiber for Consumers The Imperial Irrigation District (IID) service territory (above) covers 6,471 square miles, including all of Imperial County along with parts of Riverside and San Diego counties. With low electric and water rates, an abundance of natural resources, a capable workforce and a close proximity to the border, this region has turned into a destination for business and industry of all kinds. 34 l ABUNDANT OPPORTUNITIES January 2012 Worldwide Imperial County Agriculture Facts Farmers in Imperial County produce more than 100 different commodities, including bamboo, sugar cane, flax, corn, artichokes, fish, goats, honey, cilantro, water lilies and more. It is estimated that more than two-thirds of the vegetables consumed in the United States during the winter months are grown in the Imperial Valley. In 2009, Imperial County produced enough lettuce (including head lettuce, leaf lettuce, salad products and spring mix) to serve 4-ounce dinner salads to more than 5 billion people. Farmers here also grew enough carrots to serve a half-cup serving to 83% of the Earth’s population— more than 5,5 billion people. Imperial County is home to three dairies and a cheese plant—the only processing facility in California that produces Swiss and Muenster cheeses. The county is California’s #2 producer of aquaculture, and is home to one of the largest catfish farms west of the Mississippi. Imperial County is among the nation’s top sheep and lamb producing counties. Approximately 150,000 sheep pass through the county each year. In the 1950s and again in the 1990s, close to 350,000 sheep passed through the valley annually. The lush fields of Imperial County provide habitat to hundreds of thousands of birds every year. Of the 800 or so bird species found in the United States, over 400 species have been spotted in the Imperial Valley. Over 70% of the state’s burrowing owls reside in Imperial County. There are more owls per square mile here than anywhere else in the United States, and possibly the world. The Imperial County TMDL (Total Maximum Daily Load) program, administered by Imperial County Farm Bureau, has been recognized nationwide for its success in reducing the amount of silt and minerals that enter our water drainage systems. Simple solutions such as wider drainage channels or wheat strips planted in drainage channels help inhibit the flow of silt and minerals while allowing water to pass through. MAP: Imperial Irrigation District —Source: Imperial County Farm Bureau ABUNDANT OPPORTUNITIES January 2012 l 35 Lending to farmers for five generations Let’s grow together Rabobank was founded in 1898 by farmers who pooled their savings to provide loans to their neighbors and communities. More than 110 years later, we’ve grown into a leader in agricultural and community banking by standing by our customers, rain or shine. Our agribusiness relationship managers are seasoned ag professionals who have the tools to help your operation thrive. Let’s grow together. Call us and get started today. John Levada Regional Agribusiness Manager Imperial Valley (760) 337-2762 Rabobank, N.A. Member FDIC www.rabobankamerica.com 36 l ABUNDANT OPPORTUNITIES January 2012