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NABC SPRING BOARD MEETING MEETING MINUTES March 1, 2017

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NABC SPRING BOARD MEETING MEETING MINUTES March 1, 2017 NABC SPRING BOARD MEETING MEETING MINUTES March 1, 2017 NABC President Bob Carini called the 2017 NABC Spring Board Meeting to Order at 10:10am on Wednesday, March 1, 2017, at the Crowne Plaza Phoenix Airport Hotel, Phoenix, Arizona. Roll call by NABC Secretary Ken Patterson showed the following NABC Members in attendance: Agricare, Inc Clear Springs Company North Bay Produce, Inc. Alma Sunbelt Blueberries Cornerstone Ag Enterprises, LLC North Carolina Blueberry Council Atlantic Blueberry Company Diamond Blueberry, Inc. O-G Packing Company, Inc. British Columbia Blueberry Dole Fresh Vegetables Oregon Blueberry Commission Council (SunnyRidge) Berryhill Foods, Inc. Driscoll’s Pan-American Berry Growers, LLC Biln Farms, Ltd First Pick Farms Parsat Enterprises, LTD Black River Blueberry, Inc. Florida Blueberry Growers Riverbend Organic Farms, LLC Association Blueberries of Indiana Gingerich Farms Products, Inc. Silver Valley Farms Blueberry Hill Farms, Inc. Goin’s Blueberry Farm Sunny Valley International, Inc. Brookside Farms Hurst’s Berry Farm True Blue Berry Management California Blueberry Assoc. Island Grove Ag Products True Blue Farms California Blueberry Commission Ivanhoe Blueberry Farms, Inc. Washington Blueberry Commission Carini Farms Jubilee Blueberry Farms, LLC Winzler Farms Carolina Blueberry Association MBG Marketing Wish Farms Carter Farms, Inc. Naturipe Farms, LLC Woodland Enterprises, Inc. Chambers Brothers Blueberries, New Jersey Blueberry Council LLC NABC Officers in attendance were Bob Carini (President), Tom Bodtke (1st Vice President), Tom Avinelis (2nd Vice President), Ken Patterson (Secretary), Neil Moore (Past President), Legislative Consultant Dan Haley and NABC Executive Director Mark Villata were also in attendance. Following roll call (agenda item #1), President Carini asked if there were any additions to the current meeting agenda (agenda item #2). As there were none, for agenda item number two Carini asked for approval of minutes from the last Board Meeting held on October 5, 2016 (agenda item #3). All members and alternates had received an emailed copy of the minutes following the October meeting. Ken Patterson moved, with a second from Mark Hurst, to approve the minutes as written. The motion carried. The NABC 2016 crop report was the fourth item on the agenda. NABC Representatives provided 2016 figures from their states and regions. Based on these updates the North American Highbush 1 Crop for 2016 totals 766.4 million pounds (383.5 million pounds fresh and 382.9 million pounds process, up from 750.2 million pounds total in 2015) (See Exhibit #1). The fifth item on the agenda, the NABC Online Inventory Reporting Update, was presented by NABC Staff Compliance Coordinator, Rick Ruckman. Ruckman explained how the tool will work which will provide more extensive data on cold storage holdings than the current USDA cold storage report (see sample in Exhibit #2). The Online Inventory Reporting tool (a voluntary report) is planned to be implemented in March or April of 2017. It was suggested that the NABC include a link to the tool on its website. A confidentiality agreement was also proposed to be included with the new online tool Carini emphasized the importance of all frozen packers participation and utilizing the online tool to better track frozen inventory. Ruckman noted that the tool would be a good opportunity to grow the NABC membership as well. A discussion occurred as to whether there would be value in pursuing differentiation between lowbush and highbush berries in the report and this will be taken into consideration. Item six on the agenda was the NABC Finance Committee and Treasurer Report. NABC President Bob Carini called upon NABC Finance Committee Chairman Tom Avinelis for the Finance Report. Avinelis opened his report noting the NABC had received a clean audit again in 2016. The NABC audit and results confirmed that all NABC financial operations are being reported fairly and that all material respects operate under the GAP procedures (see Exhibit #3). A copy of the 2016 Audit will be sent to all NABC Members following today’s meeting. Avinelis then reviewed the NABC Profit & Loss Budget versus Actual Report and noted that NABC income was +$20,000 over the projected income budget, and all budgeted categories came in under budget (with some small line item overages for Office Rent, Computer IT Service, Legislative Representation, Depreciation and Administrative Staff Travel) (see Exhibit #4). Avinelis reviewed the NABC Balance Sheet Comparison between 2016 and the previous year nothing that cash in the bank is down -$36,763 and totals $227,320.89. Accounts receivable (which are primarily dues for USHBC fees) are up +$90,475 and total $187,700. Total Liabilities increased by +$6,291 over the previous year (See Exhibit #5). Avinelis updated the Board on NABC dues collections noting that a total of $130,800 in dues were received from the 2015 crop to fund the 2016 program. As of March 1, 2017, a total of $78,950 has been received in dues from the 2016 crop collections with additional dues expected. To date we have 111 NABC grower members, up from 101 in 2016, and 36 associate members, which is down from 37 the previous year (See Exhibit #6). Avinelis then reviewed projected funds for 2017. Based on current figures we now project a total of $580,317 in funds available for 2017 up from the total of $504,778 projected at the Fall 2016 meeting. This total is based on current cash, receivables, dues still expected to be collected and our 2017 service fee from the USHBC, less our accounts payable (see Exhibit #7). Avinelis noted that the NABC is continuing to build its cash reserves each year to support future opportunities or needs. 2 Avinelis followed with a report on the Recommended Revised 2017 Budget based on these revised income figures. The revised budget includes $8,500 budgeted for Good Practices, General Expenses budgeted at $48,950, Administration Expenses at $201,181, Travel and Meeting expenses at $55,600, and Uncommitted Expenses at $265,769 for a total of $580,000 (see Exhibit #8). Avinelis then noted that through the previous year’s internal audit an updated payment procedure was recommended to the USHBC for direct deposits and wire transfers for invoices over $25,000 and the NABC Finance Committee suggests NABC adopt this procedure as well (See Exhibit #9). President Carini entertained a motion to accept the Finance Committee Report and recommendations. Mark Hurst moved with a second from Ken Patterson to approve the 2017 budget of $580,000 as allocated. Motion carried. Lorrie Merker motioned to approve the $25,000 updated payment procedure, seconded by Pat Goin. Motion carried. The audit report was motioned to be approved by Tom Bodtke, seconded by Mark Hurst. The motion carried. Agenda item number seven was the NABC Legislative Committee Update. President Carini called on Legislative Committee Chairman Tom Bodtke to report on the Legislative Committee activities. Bodtke noted no formal meeting of his committee had been scheduled to date but introduced Legislative Consultant Dan Haley who provided an update on recent NABC concerns, an update on recent actions in Washington D.C. and the new administration as well as what possible changes will be coming with the new administration now in office. Haley also discussed progress being made in our efforts to gain fresh blueberry market access to China and other markets; the Fresh Fruit and Vegetable Program (FFVP) related to child nutrition re-authorization; the recent withdrawal of agreement from the Trans-Pacific Partnership (TPP); discussed the EPA; immigration issues; Organic Regulation; Regulatory Reform; and NAFTA (See his report in Exhibit #10). The eighth item on the agenda was an update on the Food Safety Modernization Act (FSMA) President Carini called upon Tom Jones of the Safe Food Alliance for his report. Jones explained the FSMA and the key rules that have been published; Preventive Controls Rule, Produce Safety Rule, Foreign Supplier Verification Program, Accreditation of Third-Party Auditors, Sanitary Transportation of Food and Feed, and Intentional Contamination. The FSMA was signed into law in 2011 and requires preventative controls, risk based inspections and science based standards for all fruits and vegetables. He noted timing of this program, exemptions and training (See Exhibit #11). He offered the Safe Food Alliance as a good source of training for those interested. It was also noted that the NABC office can provide additional information on the FSMA upon request. 3 The ninth item was an Update on Organic Certification of Container and Greenhouse Growing methods. President Carini called on Denny Doyle for this update. Doyle explained that this issue involved more closely defining organic production practices and whether plants grown in substrates in containers are to be considered organic. A considerate discussion followed as to whether the NABC should take a position on this and issue a statement. After much debate and a vote showing an even split on this issue it was decided that this issue needs to be addressed by the Organic Industry and no action should be taken on this by the NABC. Mark Hurst moved, with a second from Lorrie Merker, to table this issue for no further discussion. The motion carried. Agenda item number ten was the approval of new grower and associate member applicants and an update on discontinued NABC memberships. NABC President Carini called on Mark Villata to report. Villata reported the NABC had received five new grower applicants; Blueberry Lake Farm, Inc – Pulaski, Wisconsin, J & D Blueberry Farm – Poplarville, Mississippi, Wolff Lake Farm – Fruitport, Michigan, Meduri Farms, Inc. – Dallas, Oregon, Penner Ag Inc. – Dinuba, California. He also noted one associate member applicant: RainSweet Inc – Salem, Oregon. Chris Barnhill asked Villata to add SweetBerry Farms, LLC -- Ivanhoe, North Carolina to the list of new grower applicants.
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