Key National and Trade Marketing Organizations AEC 317 December 3, 2014

Perishable Ag Commodities Act PACA, legislation of 1930PACA, legislation of 1930 –Licenses required for certain kinds of transactions –Governs inter-state trade –Recourse for damages for non-payment, fraud, or non-performance of contracts –Investigations managed by the U.S. Secretary of Agriculture –Violations can lead to serious financial penalties and disbarment from future trading.

How PACA helps growers - -How PACA helps growers Lowers costs associated with risk of “hold up” 2.Reduces number of “bad actor” buyers 3.Makes interstate trading more secure 4.Protects the “little guy”

Red Book Credit Service Produce Industry Credit Council Credit rating system for fresh produceCredit rating system for fresh produce Buyers rated by growersBuyers rated by growers Quarterly print and real time electronic updatesQuarterly print and real time electronic updates Redbook Credit ServicesRedbook Credit ServicesRedbook Credit ServicesRedbook Credit Services Business Character AwardBusiness Character Award –Ethical, stable, professional, reputable, & admirable

Produce Marketing Association National produce trade associationNational produce trade association “Fresh Summit”“Fresh Summit” International participation & influenceInternational participation & influence Key industry functions – –Lobby for political interests of the produce industry –Immigration –Platform to establish industry standards –Resources for the trade –Created Center for Food Safety

The Packer – Weekly trade periodical for produceThe Packer – Weekly trade periodical for produce Packer Merchandising Guide: trade directory for shipping, packaging, promotion

USDA Ag Marketing Service Market News ReportsMarket News Reports Certify National Organic ProgramCertify National Organic Program USDA food purchasesUSDA food purchases –Schools, prisons, VA hospitals, other federally funded institutions Country of origin labeling (COOL)Country of origin labeling (COOL) –recent debates over mandatory vs voluntary labeling led to mandatory labels Sept 2008

National Ag Statistics Service

Economic Research Service Commodity outlook reportsCommodity outlook reports –Fruit and Tree Nuts –Vegetables and Melons Food markets, prices, & consumptionFood markets, prices, & consumption Special research initiatives on horticulture industry issuesSpecial research initiatives on horticulture industry issues

Animal and Plant Health Inspection Service Import and export permitsImport and export permits GMO certifications and proceduresGMO certifications and procedures Biocontrol, noxious weeds, beesBiocontrol, noxious weeds, bees Quarantine programsQuarantine programsQuarantine programsQuarantine programs

Federal Agencies and Horticulture Industries How do they help growers?How do they help growers? 1.Unbiased market information for planning and coordination 2.Documented trends in supply and demand 3.Protect domestic produce supplies from pests and diseases 4.Certifications benefit consumers and growers – verification and differentiation