COA meeting addresses global onion scene and labor issues
COA meeting addresses global onion scene and labor issues
GREELEY, CO -- Attendees at the Colorado Onion Association annual meeting, here, Jan. 25, were provided with a snapshot of the condition of the industry on the state, national and international levels, and had an opportunity to learn more about significant changes to the employment verification process in Colorado.
"The onion industry is enjoying prices that aren't the norm," National Onion Association Executive Vice President Wayne Mininger told the audience. "It may be another 36 years before this happens again."
According to Mr. Mininger, Colorado f.o.b. prices for 50-pound sacks were $19 for jumbos and $17 for mediums. Factors that have influenced pricing include around 19 days of excess heat in California's San Joaquin Valley, which hurt domestic production and short onion crops globally.
"We had a very unusual year," he stated.
Mr. Mininger indicated tghat onion supplies decreased through the last week of October, followed by product gluts. Another one- to two-week slowdown occurred at the beginning of January.
"It happens every year," he said. "Adjusting the price does nothing to alter this."
Specialty crops generate $53 billion, or 54 percent of total U.S. crop receipts, Mr. Mininger noted, adding that onions account for over 6 percent -- or $1 billion annually -- of total U.S. vegetable receipts.
Bulb production in the United States has increased since 1980, and Mr. Mininger stated, "We're seeing better onions and lower shrink." Increased demand for onions has come from ethnic populations in the United States that incorporate onions into their cuisine.
Mexico and Canada have doubled their onion imports from the United States, and Mr. Mininger said that demand in Peru and Chile has also increased. "Canada is the largest U.S. customer [of onions]," Mr. Mininger noted. "Japan is very erratic due to domestic production."
Globally, Mr. Mininger said that no other commodity has shown "such dramatic increases [in price] since 1995." China, India, the United States, Turkey and Pakistan are the world's top producers of onions, accounting for 55 percent of global product. The United States, he added, accounts for 2.2 percent of world onion acreage and 6 percent of the world supply.
U.S. per capita consumption of onions is 21.2 pounds annually, he said, adding that 17.4 million pounds of onions are consumed per day.
Mr. Mininger's final comments dealt with the federal budget and proposed guest-worker program.
"To put it simply, the federal budget is a mess," he stated. The federal government has been operating on a continuous resolution for a long time, "and there is very little chance of getting the money we want in 2007. Perhaps in 2008."
With regard to the proposed guest worker program, Mr. Mininger said that he expects it to have a greater chance of passage following the 2006 congressional elections.
He commented on the efforts of the Colorado Onion Association, saying that working relationships between state organizations and the National Onion Association make each better by association.
Carol Hildebrand, an attorney with Sherman & Howard LLC in Denver, was the keynote speaker at the conference and addressed labor issues and immigration reform. She said that Colorado revised statute 24-76.5-101 -- which became effective Jan. 1 -- requires employers transacting business in Colorado and employing another person to submit a second affirmation beyond federal form I-9 to verify employment eligibility.
The requirement is more stringent than federal law, Ms. Hildebrand noted, and the state of Colorado could levy fines of up to $5,000 for a first violation and up to $25,000 for subsequent violations for employers who fail to provide the affirmation. The fines are also higher than those imposed by federal agencies.
While the statute is currently in effect, Ms. Hildebrand told the audience that no rules and regulations have yet been promulgated to implement the program. During a question-and-answer period, Mr. Mininger noted that every state that has enacted more restrictive laws has been challenged. Ms. Hildebrand agreed that Colorado's statute will be problematic.
"Keep your I-9s absolutely in order," she cautioned.
Ms. Hildebrand expects the agriculture jobs bill to be part of comprehensive immigration and naturalization reform legislation in Congress. "The ag bill may possibly be passed separately, even if the overall bill fails," she said.
"The onion industry is enjoying prices that aren't the norm," National Onion Association Executive Vice President Wayne Mininger told the audience. "It may be another 36 years before this happens again."
According to Mr. Mininger, Colorado f.o.b. prices for 50-pound sacks were $19 for jumbos and $17 for mediums. Factors that have influenced pricing include around 19 days of excess heat in California's San Joaquin Valley, which hurt domestic production and short onion crops globally.
"We had a very unusual year," he stated.
Mr. Mininger indicated tghat onion supplies decreased through the last week of October, followed by product gluts. Another one- to two-week slowdown occurred at the beginning of January.
"It happens every year," he said. "Adjusting the price does nothing to alter this."
Specialty crops generate $53 billion, or 54 percent of total U.S. crop receipts, Mr. Mininger noted, adding that onions account for over 6 percent -- or $1 billion annually -- of total U.S. vegetable receipts.
Bulb production in the United States has increased since 1980, and Mr. Mininger stated, "We're seeing better onions and lower shrink." Increased demand for onions has come from ethnic populations in the United States that incorporate onions into their cuisine.
Mexico and Canada have doubled their onion imports from the United States, and Mr. Mininger said that demand in Peru and Chile has also increased. "Canada is the largest U.S. customer [of onions]," Mr. Mininger noted. "Japan is very erratic due to domestic production."
Globally, Mr. Mininger said that no other commodity has shown "such dramatic increases [in price] since 1995." China, India, the United States, Turkey and Pakistan are the world's top producers of onions, accounting for 55 percent of global product. The United States, he added, accounts for 2.2 percent of world onion acreage and 6 percent of the world supply.
U.S. per capita consumption of onions is 21.2 pounds annually, he said, adding that 17.4 million pounds of onions are consumed per day.
Mr. Mininger's final comments dealt with the federal budget and proposed guest-worker program.
"To put it simply, the federal budget is a mess," he stated. The federal government has been operating on a continuous resolution for a long time, "and there is very little chance of getting the money we want in 2007. Perhaps in 2008."
With regard to the proposed guest worker program, Mr. Mininger said that he expects it to have a greater chance of passage following the 2006 congressional elections.
He commented on the efforts of the Colorado Onion Association, saying that working relationships between state organizations and the National Onion Association make each better by association.
Carol Hildebrand, an attorney with Sherman & Howard LLC in Denver, was the keynote speaker at the conference and addressed labor issues and immigration reform. She said that Colorado revised statute 24-76.5-101 -- which became effective Jan. 1 -- requires employers transacting business in Colorado and employing another person to submit a second affirmation beyond federal form I-9 to verify employment eligibility.
The requirement is more stringent than federal law, Ms. Hildebrand noted, and the state of Colorado could levy fines of up to $5,000 for a first violation and up to $25,000 for subsequent violations for employers who fail to provide the affirmation. The fines are also higher than those imposed by federal agencies.
While the statute is currently in effect, Ms. Hildebrand told the audience that no rules and regulations have yet been promulgated to implement the program. During a question-and-answer period, Mr. Mininger noted that every state that has enacted more restrictive laws has been challenged. Ms. Hildebrand agreed that Colorado's statute will be problematic.
"Keep your I-9s absolutely in order," she cautioned.
Ms. Hildebrand expects the agriculture jobs bill to be part of comprehensive immigration and naturalization reform legislation in Congress. "The ag bill may possibly be passed separately, even if the overall bill fails," she said.
