Top 25 Prune Markets by ert554898


									RMA RME Project Introduction

                                         UNITED STATES DEPARTMENT OF AGRICULTURE
                                                 RISK MANAGEMENT AGENCY


                               Commodity Partnerships for Risk Management Education


                               Market Risk Education and
                               Information Opportunities
RME Topics

                                Prune Bargaining Association
                     Market Risk Education and Information Opportunities

                                    PBA District Meetings
                           January 29 – 31, 2008 & February 8, 2008


             1.   Market Risks and the Power of Grower Cohesion

             2.   Case Study: The Prune Industry Since 2003

             1.   Grower action that leads to better market risk management

             2.   Evaluation
Power of Cohesion –
  Some Examples
      • Potato Growers
      • Pear Growers
Potential Market Risks
without Grower Cohesion

• No field price at harvest
• Fracturing industry, more grower packers,
 inefficiency, loss of profitability

• Ineffective response to global competition
• Declining significance in world market, loss
 of market share
 Case Study of Prune Industry
          Since 2003

1. The loss of marketing order controls has increased
   market risks for growers and packers.

2. Some packers and PBA members have not honored
   their contracts with the PBA.

3. A culture of independence hampers efforts to increase
   PBA membership and implement more effective risk
   management strategies.
Grower Cohesion Results
 • More effective business relationships between
   growers and packers to better share and
   manage risk

 • Improved returns and contractual
   arrangements for growers

 • Market transparency for growers
 • An effective industry that increases market
   share and expands demand
Grower Action for Better
  Risk Management
• Be informed.
   – When growers have a common understanding of the
     issues they face they are more cohesive.
• Pay attention to contracts
   – don’t sign one-sided agreements.
• Market your crop to the best buyer
   – Which packer is the stronger marketer?
• Invest the time needed to be informed & involved
   – Don’t grow the crop successfully only to fall short of your
     objective because you didn’t take the necessary time.

• Grower cohesion is important to effective
  management of market risks for prune growers.

• The loss of marketing order controls in the industry
  has created greater risks for growers and packers.

• Effective grower action will improve cohesion
  among producers and allow more effective risk

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