An exclusive membership newsletter published by California Canning Peach Association the cooperative bargaining association in the canning cling peach industry. 2300 River Plaza Drive / Suite 110 / Sacramento, CA 95833 Vol. 39, No. 8 Sacramento: 916/925-9131 – Yuba City: 530/673-8526 – Modesto: 209/537-0715 November 2, 2009 Website: http://www.calpeach.com E-mail: firstname.lastname@example.org PLAN TO ATTEND THE 2009 DISTRICT MEETINGS All members and invited industry guests should plan on attending the Association’s upcoming 2009 District Meetings. The program will include remarks by Board Chairman Gary Darpinian, a review of the 2009 season results, the industry’s current marketing and contracting outlook, and the Association’s Tree Pull Program. We will also be recognizing the winners of the 2009 quality awards and the growers who came closest to their 2009 pre-thinning estimate. The schedule for our 2009 District Meetings is listed below: DISTRICT/AREA DATE & TIME LOCATION 1&2 (Coffee – 9:00 a.m.) Moose Lodge Gridley & Live Oak 9:30 a.m. 1533 Highway 99 Monday, November 9th Gridley 3, 4, 5 2:00 p.m. Ag Commissioner’s Office Yuba City, Marysville, Monday, November 9th 142 Garden Highway Wheatland Yuba City 9 (9:00 a.m. coffee/donuts) J. A. C. L. Hall Merced, Cortez, 9:30 a.m. meeting 12985 N. Cortez Avenue Livingston, Turlock Monday, November 16th Turlock 6, 7, 8 2:30 p.m. Stanislaus County Ag. Center Linden, Escalon, Modesto, Monday, November 16th Corner of Crows Landing & Service Rd. Hughson, Denair, Ceres Modesto 10 & 11 (9:30 a.m. coffee/donuts) Kearney Ag Center Kingsburg & Visalia 10:00 a.m. 9240 S. Riverbend Tuesday, November 17th Parlier CCPA BOARD APPROVES TREE PULL PROGRAM The Association’s Board of Directors met on Friday, October 30, following a day of hearing from each California processor regarding their view of the industry’s supply/demand situation and their company’s marketing outlook for 2010. Based on the comments from these processor meetings and the significant number of acres which are now uncontracted for the 2010 season, the Board unanimously approved an Association funded tree pull program to realign the industry’s supply/demand position. The program details are shown below. The Association’s upcoming District Meetings will include a review of the details of this program and the importance of returning to a production level which matches consumer demand. 2009 Tree Pull Program Covers acreage to be removed following the CCPA Board’s October 30 approval of a tree pull program and CCPA fieldstaff approval of acreage to be removed. Eligible acres planted after 1989 and before 2007. Payment for acreage removal shall be the greater of $100/paid ton on 2009 deliveries or $1,700/acre. Maximum payment shall be $2,400/acre. No replanting peaches on this ground for 10 years. First-come, first-served basis for CCPA members. Program participation is capped at 2,000 acres. (Option to pay non-members $1,200/acre for removing contracted acreage if CCPA member sign-up fails to reach targeted level. Sign-up Deadline is December 31, 2009. Funding for program to come from CCPA member assessment on 2010 deliveries. FIRST CLASS MAIL U.S. Postage Paid Permit No. 2915 Sacramento, CA PULLOUTS TO DATE TOTAL 762 ACRES The Association’s fieldstaff reports that pullouts to date following the 2009 season now total 762 acres. This amounts to just 3.1% of the industry’s 24,304 bearing acres in 2009. The Yuba/Sutter area has pulled 489 acres (4.1%) followed by the Modesto area with 213 acres (2.2%) and the Kingsburg area with just 60 acres (2.1%). Last year Statewide pullouts totaled 900 acres as of October 16. With 969 acres of 2007 plantings moving into the bearing category for 2010 and with a total of 3,129 acres of non-bearing 2008 and 2009 plantings already in the ground, it is clear that the industry currently has more acres than needed to meet market demand. Cling Peach Pullouts as of October 16, 2009 EE E L EL Total % of Area Acres Acres Acres Acres Acres Bearing Yuba/Sutter 122 79 185 103 489 4.1% Modesto 64 16 78 55 213 2.2% Kingsburg 7 13 29 11 60 2.1% TOTAL 193 108 292 169 762 3.1% CCPA RECEIVES SPECIALTY CROP GRANT FUNDS FROM CDFA On October 15, California Department of Food & Agriculture officials announced the recipients of CDFA’s Specialty Crop Block Grant Program. A project entitled “California Canned Peaches to India” submitted by the Peach Association was awarded $75,000 in grant funding. The project involves conducting market research regarding U.S. canned peach export sales opportunities in India and organizing a trade mission to India next spring. With a population of 1.2 billion, an expanding middle class, and a GDP of $3.3 trillion in 2008, India possesses a steadily growing economy. This project, which was supported by all three California peach canners, will provide us with useful market research regarding potential new sales opportunities in India for canned peaches. YTD EXPORTS DOWN 60%, IMPORTS DOWN 9% Canned peach export sales for the first three months (June-August) of the 2009/10 marketing year total 179,872 cases, down 60% from year-ago export sales of 449,862 cases. Mexico remains our largest export destination with 72,992 cases (-9%) followed by Canada with 70,175 cases (+50%). The biggest factor in decreased export shipments is Thailand which went from 244,750 cases last year to just 588 cases this year. Canned peach imports for the first three months of 2009/10 totaled 614,520 cases, down 9% from year-ago levels. China continues to consolidate their leading importer position with 458,772 cases shipped (75% of total import volume). Chile is a distant second with 38,375 cases, followed by Greece with 29,027 cases. OF INTEREST On Thursday, October 22, Dole Food Company sold shares representing a 41% stake in the company to investors at a price of $12.50/share. The deal raised about $450 million which will be used to pay off debt. David Murdock, who took the company private in 2003, will remain chairman and controlling shareholder with 59% ownership. The winning teams at the 49th Annual Cling Peach Golf Tournament were: 1st Place - Alex Marriott 2nd Place - Alan Stender 3rd Place - Gary Werner Jason Crass Chad Patterson Henry Swanson Richard M. Ramirez Scott Anderson Kenny Boss Brian Okland Ron Schmidt Maria Garcia Canned peach gift packs are now available for sale at the Association’s field offices. A case of six 29 oz. cans sells for $10/case and a case of twelve 8.25 oz. cans of chunky diced peaches is $6/case. The Association’s 2010 Annual Meeting will be held Friday, January 29, at the DoubleTree Hotel in Sacramento. Watch for further details in next month’s Peach Fuzz.