From the CAC Hosts Food Safety Officials

Fall 2018 From the GrThe Latest News from the California ve Avocado Industry CAC HOSTS FOOD SAFETY OFFICIALS Read more on page 8 Avocado Brainstorming 2018 - Page 40 From the Grove Fall 2018 Volume 8, Number 3 In This Issue President Tom Bellamore 12 Western Retailers Report CA Avocado Commission Avocado Sales Top the Charts Editor Departments Tim Linden Champ Publishing 4 Message from the President 925.258.0892 20 CaliforniaAvocado.com Improvements [email protected] Make it Easier for Visitors 6 Chairman’s Report Ad Sales 8 Issues Watch Tom Fielding 626.437.4619 16 Handlers’ Report [email protected] 26 CAC Summer Consumer PR Activities 22 Better Growing Design/Layout Heather Gray 28 Global Perspectives User Friendly, Ink. 32 AvoTech [email protected] 36 Retail Promotion Highlights April Aymami Industry Affairs Director 949.754.0738 38 Foodservice Promotion Highlights [email protected] 40 Avocado Brainstorming 2018 Volume 8, Number 3 Fall 2018 FROM THE GROVE is published quarterly by Califor- nia Avocado Commission; 12 Mauchly, Suite L; Irvine, The articles, opinions and advertisements presented in this magazine are CA 92618. Postmaster: Send address changes to designed to offer information and provoke thought. Inclusion in this publi- California Avocado Commission; 12 Mauchly, Suite L; cation does not presume an endorsement or recommendation by the Cali- Irvine, CA 92618. fornia Avocado Commission for any particular product or cultural practice. www.californiaavocadogrowers.com Fall 2018 / From the Grove / 3 Message from the President The Rise and Fall of Reserves arlier this year, at the California production in Ventura and Santa Barba- Avocado Commission’s (CAC) ra counties. On the heels of the fire were annual meetings, management crop-damaging freezing temperatures Ereported that the organization was in and then fog, which coincided with and sound financial health. A crop size of impaired the bloom in some parts of the Tom Bellamore around 375 million pounds was ex- growing region. By spring, most indus- pected, revenue was projected to exceed try experts had adjusted their crop size efficiently as possible. Here’s where re- expenditures, and ending reserves were downward. Then came the heat. As the serves help. forecast to exceed $12 million. season wraps up, the final crop size for By the close of 2019, reserves are Reserve levels have sparked grow- the year appears to be around 320 mil- projected to be on the order of $6 mil- er interest and debate since the Com- lion pounds, about 50 million pounds lion. What looked to be “excessive” mission’s inception. Historically, they below the opening estimate. To support reserves in March 2018 will now be – have hovered around 33 percent of the the late season shipments, and in light just a few shorts months later – exactly budget, so at the annual meetings there of the ample reserves, the Commission what was needed to carry us through was little doubt in anyone’s mind that the chose not to curtail marketing expendi- the last three crop years (2017: 216 mil- projected year-end reserves were atypi- tures this year. Ending reserves are now lion pounds, 2018: 320 million pounds cally high. Management made a point forecast to be $2.5 million less than the and 2019: 160 million pounds). A look to call attention to that fact, reminding original projection. back through the industry’s statistical growers that reserves have increased in Everyone knows that the heat in data confirms that consecutive small importance over time, as a budget and early July not only caused damage to the crop years are an anomaly, but certainly risk management tool. current crop, but also the new crop set a possibility. For decades, California avocados on the trees. The 2019 crop that looked It is the board and management’s were harvested year-round, and the to be setting nicely prior to the heat is responsibility to be prepared for such Commission realized some revenue now thought to be considerably smaller, a possibility, and for other contingen- every month. Our current pattern of perhaps as low as 160 million pounds. A cies unrelated to crop size. Reserve seasonal shipping has changed that. The crop of this size would generate roughly levels rise when the market overper- Commission now operates for nearly $8 million in revenue at the current as- forms price projections and they fall six months (November through April) sessment rate, substantially below what when crop volume projections do not without income and reserves are used is needed to maintain strong marketing materialize. Some of the “fall” can be to develop the marketing campaign in and non-marketing programs in the mitigated with close budget manage- advance of the season start and to carry coming year. ment – scaling back expenditures when operating costs. Still, you might say, Of course, management’s pro- the crop size dips – or with assessment wouldn’t a lower level of reserves suf- posal to the CAC Board is to tighten the rate changes, if necessary. There is no fice? The answer is: “yes, however...” belt in 2019, to the point of discomfort. manual for managing reserves and any Reserves also are needed to con- There is little choice. We cannot, how- seasoned board member will explain tend with unforeseen circumstances, ever, risk becoming inconsequential as that it is more art than science. And and this crop year was chock full of a brand, so the work of maintaining ultimately, it is an art that a new, incom- those. The season had barely begun awareness and preference for California ing CEO must learn, and learn quickly. when the Thomas fire consumed more avocados among our trade customers That takes me to my final point. than 280,000 acres, impacting avocado and consumers must continue, as cost- When growers stood up at the annual 4 / From the Grove / Fall 2018 meetings and offered suggestions for re- management’s intent to propose an as- ducing reserves, we listened. The board’s sessment rate decrease in the new fiscal officers explained that a leadership year. Unfortunately, that decrease now transition was on the horizon, and the seems ill advised. Mother Nature, more change in personnel would likely result than anyone else, has seen fit to temper in a short-term spike in overhead, hence the Commission’s reserves, which now another contingency, another reason appear to be just where they needed to for carrying higher reserves. Still, ahead be to get us through three lean years. Board of the weather-related trouble, it was of Directors District 1 Member/Jessica Hunter-Secretary Member/ Ryan Rochefort Alternate/Michael Perricone District 2 Member/Leo McGuire Member/ Ohannes Karaoghlanian Alternate/Bob Schaar District 3 Member/ John Lamb Member/ Robert Grether-Treasurer Alternate/John Lloyd-Butler District 4 Member/ Ed McFadden Member/ Jason Cole Alternate/Bryce Bannatyne Jr. District 5 Member/Rick Shade-Chairman Member/ Tyler Cobb-Vice Chair Alternate/Randy Douglas Handlers Member/Egidio “Gene” Carbone Member/Gary Caloroso Alternate/Vacant Seat Public Member Nina Ames To contact a CAC representative, please visit: CaliforniaAvocadoGrowers.com/Commission/your-representatives Fall 2018 / From the Grove / 5 Chairman’s Report Time for a Change he time has come to write the col- are more or less foreign to my gray old umn that some have been dread- head, but so vital to our goals for Cali- Rick Shade ing, some eagerly anticipating, fornia Avocados. I would not be true to Tand most will read with measured in- my goals if I brought in the new leaders difference: my last column as chairman and then stood as a roadblock to their to other crops or new trades. Now is the of the California Avocado Commission success and innovation. time to seriously consider some of those (CAC). I am eligible to run for one more I have been asked why I have jobs on the ranch you’ve been putting term as the District 5 representative and spent nearly two decades involved with off. Those pruning projects? The time sit for one more year as chair, but it is the Commission. There are a few rea- to do those is now when there will be time to step away. sons. First, I was raised to volunteer and minimal fruit loss. Use your labor con- I have several good reasons for be active in the community, and being tractors and harvesters to get the jobs stepping aside. The first is my wife, Trish. active with CAC was a great way to be done and keep labor around for when During our years together, she has sat actively immersed in the avocado com- our crops return to normal size. by as patiently as she is able while I have munity. Second was a lesson from my As a multi-generational Califor- coached youth sports teams, been active college days well learned. On the first nia farmer, I have known since child- with Farm Bureau, CAPCA (California day of class in Fruit Science 101 at Cal hood that rain and rainfall totals were Association of Pest Control Advisors) Poly Pomona, Professor Lloyd Newell life and death topics. Listening to the and the Commission. I promised her took roll, looked out at the class, point- near reverential tones in which rain travel and adventure when we married ed around the room at us, and bellowed, was discussed around the dinner table and I owe it to her to do those things “If you can’t sell it, don’t grow it!” Those taught me that rain had more going for while we still can. Sitting in a board were words I took to heart and serving it than just water.

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