Chilean grape shippers oppose block by Coachella producers
Chilean grape shippers oppose block by Coachella producers
As part of an effort to oppose what it believes is an unwarranted block of late-season Chilean red grapes by Coachella, CA, grape producers, the Chilean Exporters Association, known as ASOEX_and based in Santiago, has requested related market information from the U.S. Department of Agriculture. With this was a request for a 60-day extension on the comment period related to a proposed marketing order change.
David Holzworth, who works from Washington, DC, as general counsel for ASOEX, requested this information on Nov. 2 from the USDA's Agricultural Marketing Service fruit and vegetable program marketing order administration branch. In a separate request, he asked that the comment period pertaining to needed information be extended for 60 days from the time the information is made available. Without an extension, the deadline for comments is Nov. 26.
Mr. Holzworth said the afternoon of Nov. 19 that he was still awaiting a USDA response on both requests. If there is no response by Nov. 26, the USDA AMS evaluation of the proposed change will begin. In that case, a final decision is expected by Dec. 26.
The Desert Grape Growers League of California in Palm Desert is asking the USDA to make the changes.
The Nov. 26 deadline was set on Oct. 25, when The Federal Register published a notice that reopened the comment period with the USDA Agricultural Marketing Service to consider data that are more current and revisit requirements for late-season Chilean grapes. It is that data that ASOEX and others would like to see.
Currently, Chilean grapes are allowed to enter the United States until April 20 before undergoing special inspections to meet AMS regulations. This change has been a possibility for the last couple of years, but domestic grape interests in the Coachella Valley of California have been unable to win such changes.
The changed marketing order would require specified varieties of Chilean grapes arriving in the United States after April 1 to be inspected before being shipped from U.S. ports. In those inspections, the grapes would have to meet U.S. No. 1 standards for shipping point. As reported Nov. 5 in The Produce News, Mr. Holzworth noted that shipping-point standards are high for a product that has been shipped across such a great distance.
The information requested by ASOEX, Mr. Holzworth said Nov. 19, would detail Coachella grape production numbers for the 2007 season. These numbers would show if Chilean grapes had an adverse effect on Coachella's prices and will "demonstrate if there was an impact that was the result of substandard fruit being sold into the market at the same time."
The Coachella producers and Chilean exporters "are not in the market at the same time with the same varieties at all. In its late season, Chile is predominantly exporting Flames and Crimsons, and early Coachella is shipping Perlettes. Coachella is not in significant commercial volumes." That volume level, in Mr. Holzworth's view, "is enough volume so it has the ability to be picked up in pricing data by Market News. Typically, you can't do that until it is in the neighborhood of 50,000 cases shipped."
He added, "At the very earliest," Coachella ships early-season green grapes - Perlettes - by May 15, though that start date is usually later in May. Mr. Holzworth reiterated that in April, Chile "tends to be shipping Crimsons and red seedless, non-green varieties. It is an absurdity to say Chile and Coachella are in the market at the same time. There is no data to demonstrate any adverse effect on early Coachella because of late Chilean production."
Mr. Holzworth said that the ASOEX request "at a minimum" would extend the comment period for 60 days beyond Nov. 26, but he added, "The clock should run from the day AMS puts relevant data out. We don't believe there is any relevant data from 2007. Nothing is relevant to a change in the [April 20] date."
With Thanksgiving falling on Nov. 22, if no response is heard from AMS by Nov. 21, "they will have effectively denied the extension" request.
Mr. Holzworth said that AMS is receiving requests similar to his from the Maritime Exchange for the Delaware River & Bay, based in Philadelphia, and the Chilean Embassy. Other requests are coming from "people who either import or are involved in supporting the Chilean fruit supply one way or the other."
Mr. Holzworth said, "I represent the Chileans, but we coordinate with everyone involved in any way with the supply of fresh Chilean fruit to the U.S. market."
In an Oct. 26 presentation in Philadelphia, Mr. Holzworth noted that while Chilean grapes could still enter the United States after April 1, if this marketing battle is lost, the volumes shipped would likely be affected.
This is because if these standards are in place by this spring, "it creates uncertainty" for grape exporters. If they have a 10-20 percent chance of rejection, they may choose to simply ship to Europe instead of the United States, thereby avoiding the possibility of hassles and the expenses of rejection by USDA grading authorities.
Mr. Holzworth added that the Chilean season appears to be 10 days late this year, which may put a greater pressure on shipping grapes into April.
The Coachella grape handlers contacted by The Produce News declined to comment on the situation.
David Holzworth, who works from Washington, DC, as general counsel for ASOEX, requested this information on Nov. 2 from the USDA's Agricultural Marketing Service fruit and vegetable program marketing order administration branch. In a separate request, he asked that the comment period pertaining to needed information be extended for 60 days from the time the information is made available. Without an extension, the deadline for comments is Nov. 26.
Mr. Holzworth said the afternoon of Nov. 19 that he was still awaiting a USDA response on both requests. If there is no response by Nov. 26, the USDA AMS evaluation of the proposed change will begin. In that case, a final decision is expected by Dec. 26.
The Desert Grape Growers League of California in Palm Desert is asking the USDA to make the changes.
The Nov. 26 deadline was set on Oct. 25, when The Federal Register published a notice that reopened the comment period with the USDA Agricultural Marketing Service to consider data that are more current and revisit requirements for late-season Chilean grapes. It is that data that ASOEX and others would like to see.
Currently, Chilean grapes are allowed to enter the United States until April 20 before undergoing special inspections to meet AMS regulations. This change has been a possibility for the last couple of years, but domestic grape interests in the Coachella Valley of California have been unable to win such changes.
The changed marketing order would require specified varieties of Chilean grapes arriving in the United States after April 1 to be inspected before being shipped from U.S. ports. In those inspections, the grapes would have to meet U.S. No. 1 standards for shipping point. As reported Nov. 5 in The Produce News, Mr. Holzworth noted that shipping-point standards are high for a product that has been shipped across such a great distance.
The information requested by ASOEX, Mr. Holzworth said Nov. 19, would detail Coachella grape production numbers for the 2007 season. These numbers would show if Chilean grapes had an adverse effect on Coachella's prices and will "demonstrate if there was an impact that was the result of substandard fruit being sold into the market at the same time."
The Coachella producers and Chilean exporters "are not in the market at the same time with the same varieties at all. In its late season, Chile is predominantly exporting Flames and Crimsons, and early Coachella is shipping Perlettes. Coachella is not in significant commercial volumes." That volume level, in Mr. Holzworth's view, "is enough volume so it has the ability to be picked up in pricing data by Market News. Typically, you can't do that until it is in the neighborhood of 50,000 cases shipped."
He added, "At the very earliest," Coachella ships early-season green grapes - Perlettes - by May 15, though that start date is usually later in May. Mr. Holzworth reiterated that in April, Chile "tends to be shipping Crimsons and red seedless, non-green varieties. It is an absurdity to say Chile and Coachella are in the market at the same time. There is no data to demonstrate any adverse effect on early Coachella because of late Chilean production."
Mr. Holzworth said that the ASOEX request "at a minimum" would extend the comment period for 60 days beyond Nov. 26, but he added, "The clock should run from the day AMS puts relevant data out. We don't believe there is any relevant data from 2007. Nothing is relevant to a change in the [April 20] date."
With Thanksgiving falling on Nov. 22, if no response is heard from AMS by Nov. 21, "they will have effectively denied the extension" request.
Mr. Holzworth said that AMS is receiving requests similar to his from the Maritime Exchange for the Delaware River & Bay, based in Philadelphia, and the Chilean Embassy. Other requests are coming from "people who either import or are involved in supporting the Chilean fruit supply one way or the other."
Mr. Holzworth said, "I represent the Chileans, but we coordinate with everyone involved in any way with the supply of fresh Chilean fruit to the U.S. market."
In an Oct. 26 presentation in Philadelphia, Mr. Holzworth noted that while Chilean grapes could still enter the United States after April 1, if this marketing battle is lost, the volumes shipped would likely be affected.
This is because if these standards are in place by this spring, "it creates uncertainty" for grape exporters. If they have a 10-20 percent chance of rejection, they may choose to simply ship to Europe instead of the United States, thereby avoiding the possibility of hassles and the expenses of rejection by USDA grading authorities.
Mr. Holzworth added that the Chilean season appears to be 10 days late this year, which may put a greater pressure on shipping grapes into April.
The Coachella grape handlers contacted by The Produce News declined to comment on the situation.
