NWPB recommends assessment increase
NWPB recommends assessment increase
ASHEVILLE, NC -- The National Watermelon Promotion Board recommended a 50 percent increase in its assessment during its spring board meeting, here, Feb. 24 during the National Watermelon Association convention.
Mark Arney, executive director of the board, told The Produce News that "the board voted to recommend a rate of six cents per hundredweight," up from the current four-cent rate.
As part of the new assessment, watermelon producers and handlers would see their assessments rise to three cents from two, while importers would see a rise to six cents from four.
Mr. Arney said that the increase, which probably would not go into effect until the spring of 2008, would help raise an additional $800,000 for the board, bringing its operating budget up to $2.4 million.
"I am very happy with the decision by the full board," he said. "We haven't had an assessment rate increase since our inception. Like every other organization, our costs have risen to the point that it's affecting our programs. The rate increase will keep us competitive in an environment that is becoming more and more competitive. For instance, the mango board, which is a relatively new organization, has a $5 million budget. We are all in competition for the consumer's stomach."
Mr. Arney said that the proposed increase now has to go through "the rule- making process" which includes being reviewed by the U.S. Department of Agriculture, where there will be a comment period of 30-60 days. Following the comment period, Mr. Arney said the secretary of agriculture will render his decision, but "because the assessment is collected through Customs, there will be a 90-day notice once the decision is made."
The NWA's membership also went on record in support of the two-cent assessment increase by a 44 to 7 vote at its general session Feb. 24, "On behalf of the board, we are very appreciative of the NWA's support," Mr. Arney said. "It is invaluable for us to have our sister organization support this increase."
Mark Arney, executive director of the board, told The Produce News that "the board voted to recommend a rate of six cents per hundredweight," up from the current four-cent rate.
As part of the new assessment, watermelon producers and handlers would see their assessments rise to three cents from two, while importers would see a rise to six cents from four.
Mr. Arney said that the increase, which probably would not go into effect until the spring of 2008, would help raise an additional $800,000 for the board, bringing its operating budget up to $2.4 million.
"I am very happy with the decision by the full board," he said. "We haven't had an assessment rate increase since our inception. Like every other organization, our costs have risen to the point that it's affecting our programs. The rate increase will keep us competitive in an environment that is becoming more and more competitive. For instance, the mango board, which is a relatively new organization, has a $5 million budget. We are all in competition for the consumer's stomach."
Mr. Arney said that the proposed increase now has to go through "the rule- making process" which includes being reviewed by the U.S. Department of Agriculture, where there will be a comment period of 30-60 days. Following the comment period, Mr. Arney said the secretary of agriculture will render his decision, but "because the assessment is collected through Customs, there will be a 90-day notice once the decision is made."
The NWA's membership also went on record in support of the two-cent assessment increase by a 44 to 7 vote at its general session Feb. 24, "On behalf of the board, we are very appreciative of the NWA's support," Mr. Arney said. "It is invaluable for us to have our sister organization support this increase."
