Chilean groups oppose California effort to change grape marketing order
Chilean groups oppose California effort to change grape marketing order
On Nov. 28, the Chilean Exporters Association (Asociacion de Exportadores de Chile or ASOEX) filed comments with the U.S. Department of Agriculture in opposition to a marketing order rule change proposed by a group of table grape growers from the Coachella Valley in California.
In a Nov. 29 press release, ASOEX indicated that the proposed change, if adopted by the USDA, could cut at least 20 days and 2 million cases of Thompson seedless grapes out of the Chilean fresh fruit shipping season in April of each year.
The Produce News was unable to immediately contact a representative for the California Desert Grape Administrative Committee for comment. The committee's administrator, Larry Edge, has deferred comment on the topic to his group's board members.
According to ASOEX, the government of Chile estimates a total annual loss of 9 million cases of Chilean table grapes of all varieties at a cost of $84 million if the rule becomes final. The change could affect up to 25 vessels that bring Chilean fresh fruit to three ports in Pennsylvania, New Jersey and Delaware. The three ports typically receive more than 90 percent of the Chilean fresh fruit shipments in April.
Ronald Bown, chairman of the board of ASOEX, said, "Cutting short the Chilean season will short-change the American consumer. The Coachella growers do not ship Thompsons at all until mid-May, and even then not enough to meet U.S. demand."
The ASOEX comments include an econometric study that shows how the proposed change would increase prices to U.S. consumers and decrease availability of table grapes.
ASOEX represents growers and exporters of fresh fruit from Chile. ASOEX member companies include many well known international companies such as David Del Curto, Chiquita- Chile, Dole-Chile, Del Monte Fresh, Unifrutti, Rio Blanco, Agricom, Copefrut, Frusan Subsole, Rucaray, Aconex and Agua Santa. Approximately 900 companies export from Chile, and virtually every major grocery store chain carries Chilean fresh fruit from December through April 20.
According to David Holzworth, general counsel for ASOEX, "ASOEX comments were filed under protest because USDA's Agricultural Marketing Service failed to disclose data for public comment even though the agency relied upon and cited the data as a basis for the proposed change."
The government of Chile also filed comments in opposition to the proposed rule change expressing "great concern" because "contrary to repeated requests, neither the government of Chile nor ASOEX has had access to all of the information submitted to support the petition."
The comments also stated that "the current proposal contradicts the spirit and the letter of the FTA [Free Trade Agreement] signed by both countries" and also noted violations of the General Agreement on Tariffs & Trade. Opposition comments were also filed by the Maritime Exchange for the Delaware River & Bay, Philadelphia Regional Port Authority, BARTHCO International Inc., the port of Wilmington, Delaware River Stevedores, Western Industries, Royal Fumigation, seven importing companies, five shipping lines and approximately 70 companies involved in exporting fruit from Chile.
In a Nov. 29 press release, ASOEX indicated that the proposed change, if adopted by the USDA, could cut at least 20 days and 2 million cases of Thompson seedless grapes out of the Chilean fresh fruit shipping season in April of each year.
The Produce News was unable to immediately contact a representative for the California Desert Grape Administrative Committee for comment. The committee's administrator, Larry Edge, has deferred comment on the topic to his group's board members.
According to ASOEX, the government of Chile estimates a total annual loss of 9 million cases of Chilean table grapes of all varieties at a cost of $84 million if the rule becomes final. The change could affect up to 25 vessels that bring Chilean fresh fruit to three ports in Pennsylvania, New Jersey and Delaware. The three ports typically receive more than 90 percent of the Chilean fresh fruit shipments in April.
Ronald Bown, chairman of the board of ASOEX, said, "Cutting short the Chilean season will short-change the American consumer. The Coachella growers do not ship Thompsons at all until mid-May, and even then not enough to meet U.S. demand."
The ASOEX comments include an econometric study that shows how the proposed change would increase prices to U.S. consumers and decrease availability of table grapes.
ASOEX represents growers and exporters of fresh fruit from Chile. ASOEX member companies include many well known international companies such as David Del Curto, Chiquita- Chile, Dole-Chile, Del Monte Fresh, Unifrutti, Rio Blanco, Agricom, Copefrut, Frusan Subsole, Rucaray, Aconex and Agua Santa. Approximately 900 companies export from Chile, and virtually every major grocery store chain carries Chilean fresh fruit from December through April 20.
According to David Holzworth, general counsel for ASOEX, "ASOEX comments were filed under protest because USDA's Agricultural Marketing Service failed to disclose data for public comment even though the agency relied upon and cited the data as a basis for the proposed change."
The government of Chile also filed comments in opposition to the proposed rule change expressing "great concern" because "contrary to repeated requests, neither the government of Chile nor ASOEX has had access to all of the information submitted to support the petition."
The comments also stated that "the current proposal contradicts the spirit and the letter of the FTA [Free Trade Agreement] signed by both countries" and also noted violations of the General Agreement on Tariffs & Trade. Opposition comments were also filed by the Maritime Exchange for the Delaware River & Bay, Philadelphia Regional Port Authority, BARTHCO International Inc., the port of Wilmington, Delaware River Stevedores, Western Industries, Royal Fumigation, seven importing companies, five shipping lines and approximately 70 companies involved in exporting fruit from Chile.
