JULY | AUGUST 2023
AUTOMATIC FOR THE PEOPLE Western Growers’ Specialty Crop Automation Report reveals an industry on the precipice of dramatic benefits
Kristen Smith Eshaya President JV Smith Companies
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WESTERN GROWER & SHIPPER Published Since 1929 Volume XCIV | Number 4
To enhance the competitiveness and profitability of Western Growers members
FEATURES
Dave Puglia President & CEO Western Growers davep@wga.com
20 Getting to Know GMO 28 AUTOMATIC FOR THE PEOPLE Western Growers’ Specialty Crop Automation Report reveals an industry on the precipice of dramatic benefits 32 GreenLink ® : The Digital, Secure and Confidential Online Platform for Food Safety Data
Editor Ann Donahue 949.302.7600 | adonahue@wga.com Contributors Cory Lunde 949.885.2264 | clunde@wga.com Michelle Rivera 949.885.4778 | mrivera@wga.com Kara Timmins 949.885.4786 | kmtimmins@wga.com Circulation Marketing 949.885.2248 | marketing@wga.com Advertising Sales Dana Davis 302.750.4662 | dana@tygermarketing.com
ARTICLES 24 MEET YOUR FUTURE VOLUNTEER LEADERS Byron Talley 26 MEET YOUR FUTURE VOLUNTEER LEADERS Jose Covarrubias
34 WGCIT SPONSOR
City of Salinas: The Village Green for Agriculture
TOGETHER.
WGA.COM
DEPARTMENTS
18 Director Profile 19 Member Profile 22 WG Member Welcome & Anniversaries 36 Updates from the WGCIT 38 WG News You Can Use 41 Contact Us 42 Connections
4 President’s Notes 6 Agriculture & the Law 8 Advocacy | California 10 Science 12 Trade Practices
Western Grower & Shipper ISSN 0043-3799, Copyright © 2023 by the Western Grower & Shipper is published bi-monthly by Western Grower & Shipper Publishing Company, a division of Western Growers Service Corp., 15525 Sand Canyon Avenue, Irvine California 92618. Business and Editorial Offices: 15525 Sand Canyon Avenue, Irvine California 92618. Accounting and Circulation Offices: Western Grower & Shipper, 15525 Sand Canyon Avenue, Irvine California 92618. Call (949) 863-1000 to subscribe. Subscription is $25 per year. Foreign subscription is $50 per year. Single copies of issues, $2. Periodicals postage is paid in Irvine, California and at additional mailing offices. POSTMASTER: Send address changes to Western Grower & Shipper, PO Box 2130, Newport Beach, California 92658.
14 WGAT 15 WGIS 16 Innovation
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I Am Agriculture By Dave Puglia, President and CEO, Western Growers
On June 26, 1963, from the steps of the Rathaus Schöneberg, President John F. Kennedy demonstrated a show of Cold War-era solidarity with the citizens of West Berlin when he issued the declaration “Ich bin ein Berliner!”
For the 120,000 who gathered to see JFK that day, I imagine these words—intended to declare “I am a Berliner!”—conveyed America’s commitment to stand united with the citizens of West Berlin who were isolated deep inside communist East Germany. Today, some in U.S. agriculture may liken themselves to Cold War-era West Berliners, seemingly beset on all sides by hostile regimes. Certainly, the mounting challenges farmers must confront are being compounded by the actions of local, state and federal policymakers. For individual farming operations, the question then becomes: How does our business survive into the next generation in the face of overwhelming regulatory and marketplace demands? Historically, the answer has been, in part, through collective action in the form of trade associations. Over the years, numerous trade associations have popped up—some general in scope, while others represent a specific commodity group or geographic region. For all the benefits these trade associations provide their memberships, they are all—to varying degrees—susceptible to bouts of parochialism, leading to insular, territorial pursuits. Those moments can easily undermine the power of the collective voice of the whole. Make no mistake, trade association professionals know they must demonstrate value for every dollar of member dues. That is a good and healthy thing, but we probably all can think of times when the motivation to stand out from the crowd led to either a diminution of the power of collaboration, or even a fracturing of unity among industry groups. During my 20 years in the industry, I have often wondered how powerful agriculture could be if we locked arms on every issue. If, in the spirit of Jack Kennedy, instead of saying, “I am tree fruit” or “I am dairy” we said: “I am agriculture.” If, according to USDA data, we leveraged the $1.3 trillion contribution of agriculture, food and related industries to the U.S. gross domestic product, a 5.4 percent share. Or used the leverage of 21.1 million jobs related to agriculture and food sectors, 10.5 Even where we may have a difference of opinion, we must remember to heed the words of Founding Father Benjamin Franklin upon signing the Declaration of Independence: “We must all hang together, or, most assuredly, we shall all hang separately.” percent of total U.S. employment. Who would dare deny us then?
Our long and persistent nightmare on securing Congressional passage of ag labor reform—the most recent example being the Farm Workforce Modernization Act—confirms Franklin’s warning. The hard truth is that American agriculture has not been unified on this; nearly every interested farm group supported that legislation, but lack of support from the American Farm Bureau has been like trying to win a car race with the parking brake set. During my 20 years in the industry, I have often wondered how powerful agriculture could be if we locked arms on every issue. Sticking together has proven to deliver policy victories. Case in point: Historically shut out of the farm bill, specialty crop organizations from across the country banded together and secured funding for the first time in the 2008 farm bill. Today, that alliance of specialty crop organizations continues to drive industry consensus around emerging farm bill priorities like federal investments in mechanization and automation. I have good reasons for optimism. Upon assuming the role of President and CEO in February 2020, I found myself in the company of several other newly appointed top executives at sister California trade associations, including Ian LeMay, who became President of the California Fresh Fruit Association in June 2019, and Casey Creamer, who became President and CEO of California Citrus Mutual earlier that same year. Together with long-standing collaborative relationships with other association heads, like Jamie Johansson of the California Farm Bureau, Emily Rooney of the Agricultural Council of California and others too numerous to mention, I am confident in our shared commitment to a unified approach to the service of our collective memberships. JFK concluded his famous anti-communism speech by stating: “All free men, wherever they may live, are citizens of Berlin.” I would steal this line and amend it as follows: All sectors of our industry, wherever and whatever they may produce, are agriculture. We are all agriculture.
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Concrete Consequences: Supreme Court Cements Precedent Against Union- Sponsored Sabotage By Jason Resnick, Senior Vice President and General Counsel
In Glacier Northwest v. International Brotherhood of Teamsters, the U.S. Supreme Court recently ruled 8-1 that striking workers are not protected when they intentionally make inventory that they intend to ruin by walking off the job. According to the company’s allegations, the union called for a work stoppage when they knew that Glacier Northwest was in the process of mixing and delivering concrete. Sixteen truck drivers refused to complete their deliveries, with some even abandoning their trucks, threatening significant damage to the equipment if the concrete hardened inside. Non-union employees had to scramble to dispose of it before it hardened and damaged the trucks. Although the trucks were saved, the concrete was ultimately lost.
Glacier sued the union in state court for damages caused by the spoiled concrete resulting from the strike. The Washington Supreme Court had dismissed the case, finding that state tort law was not applicable to a labor dispute covered by the National Labor Relations Act of 1935 (NLRA). At the U.S. Supreme Court, the Teamsters argued that the drivers’ actions were protected under the federal NLRA. Previous cases had established that a union has a legal right to strike even if it risks the destruction of perishable goods, under the legal doctrine known as “ Garmon preemption.” For example, the National Labor Relations Board (NLRB) had ruled in favor of milk truck drivers who struck, risking the spoilage of milk, and a federal appeals court reached a similar conclusion regarding striking cheese workers. However, the U.S. Supreme Court majority rejected this argument, contending that Garmon preemption does not shield striking workers when they fail to take “reasonable precautions” to safeguard their employer’s property from foreseeable, aggravated and imminent danger. Justice Amy Coney Barrett, writing for the majority, highlighted a crucial distinction between this case and the cheese and milk situations: “Given the lifespan of wet concrete, Glacier could not batch it until a truck was ready to take it. By reporting for duty and pretending as if they would deliver the concrete, the drivers prompted the creation of the perishable product. Then, they waited to walk off the job until the concrete was mixed and poured in the trucks. In so doing, they not only destroyed the concrete but also put Glacier’s trucks in harm’s way.” (Italics added.)
Justice Coney Barrett’s majority opinion, joined by Chief Justice John Roberts and Justices Sonia Sotomayor, Elena Kagan and Brett Kavanaugh, determined the Teamsters indeed failed to take “reasonable precautions” to protect Glacier’s property from foreseeable damage during the strike. Justice Samuel Alito, joined by Justices Clarence Thomas and Neil Gorsuch, agreed with the result but not the reasoning of the majority. Alito would have allowed Glacier’s lawsuit to proceed based on a finding of intentional damage to the concrete. Justice Thomas, in a separate opinion joined by Gorsuch, urged the court to reconsider the doctrine of Garmon preemption in a future case. The case was remanded to the state court for further proceedings. Justice Ketanji Brown Jackson, the sole dissenter in the case, argued that the NLRB’s general counsel found merit in the argument that the strike was protected. In her view, the courts should pause their review and allow the NLRB to assess the dispute first. The implications of the decision are not yet set in stone. The state court could wait for the NLRB to act and stay Glacier’s lawsuit. Alternatively, the lawsuit could proceed, leading to potentially inconsistent decisions from the NLRB and the court. It is also uncertain whether the decision will have a significant impact on other labor strikes. However, based on the Glacier Northwest case and other recent decisions, it appears that from management’s perspective, that the current Supreme Court will continue to apply balance and common sense in labor law disputes that come before the court.
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Western Grower & Shipper | www.wga.com
2023 Energy Thoughts … From a WGA Innovation Center Pioneer
Advertorial – by Elliot Jaramillo www.PowerShingle.com
California Senate Bill 49: New Tax Credits for Solar Canopies. On April 12, 2023 the California Senate Transportation Bipartisan Committee unanimously approved a bill to support tax credits for solar canopies over parking lots and along highways throughout California. The Governor is likely to sign it when it gets to his desk (after WGA press time)… so here is a first look at the main points of the Bill.
Senator Josh Becker (D-San Mateo) explains: “Solar farms use a tremendous amount of land, but that type of open space either isn’t available or is tremendously expensive in cities and suburbs that use the most power,” said Senator Becker. “That’s what makes solar canopies so appealing, because they don’t require any more land and give owners an incentive to make dual use of their lots by installing a real power plant and generating large amounts of clean energy.” Western Growers Association members could benefit from SB 49 by planning dual-use of their existing lands and adding elevated solar structures over existing lots. We may also have opportunities to convert marginal lands adjacent to highways to maximize land value. Coolers, water pumping, and cold warehousing are all ideal power-hungry operations that can use solar to reduce (rising) energy costs from the grid. Future electric tractors may also be ideal candidates to couple with these solar arrays.
Senate Bill 49 , combined with existing 40% Federal Tax Credits in the Inflation Reduction Act, add two main provisions to incentivize business. 1. CA Sales Tax Exemption for materials to build solar canopies over parking lots. 2. Requires CA to develop a plan to make highway rights-of-way available for solar, energy storage & transmission infrastructure.
3 Employee Parking structures, 1.3 MW solar Taylor Farms, San Juan Bautista
PowerShingle ® is a proven water-shedding solar system that combines Nucor’s 100% domestic manufactured steel, with 180+ foot clear-span, pre- engineered steel building capabilities. Ideally suited to benefit from these State and Federal Tax Incentives… think clean energy production, highly effective space with large clear-spans and reliable low-cost energy for your operations. Elliot Jaramillo is the CEO of Concept Clean Energy and nearly a decade long WGA member. Elliot loves talking with WGA farmers about energy challenges. For more info, or to reach out to Elliot directly, feel free to call or email him at: (510) 813-0935 / elliot@conceptcleanenergy.com
Example Covered Truck Parking & Box Storage 2 MW Solar @ Bonipak, Santa Maria
Can California Finally Get Critical Infrastructure Built? By Matthew Allen, Vice President, State Government Affairs At the time of this writing, Gov. Gavin Newsom has submitted several budget bill proposals to the legislature that would streamline critical energy, water and transportation infrastructure projects in California. Following years of waiting on the construction of “approved” projects, the Administration has rightfully come to the conclusion that there are too many unnecessary delays in the permitting and litigation process. Longtime political observers are not surprised by the conversation. Points of contention are routinely raised by stakeholders who want projects to move forward, but nothing really happens to fundamentally improve the regulatory, administrative and legal processes surrounding critical infrastructure development.
What is noteworthy is that the level of frustration over the existing process has caused the Governor to place this in front of the legislature as a high-priority item. Western Growers is part of a very large coalition in support of this package. The coalition includes trade unions and businesses that recognize that the current system of project approvals needs to be more straightforward and guardrails need to be in place to limit the ability for project opponents to indefinitely stall project completions. How has the infrastructure package landed with members of the California Assembly and Senate? With a loud thud. They don’t like that this is a policy proposal that has been dumped into budget trailer bills. It’s not lost on those of us who advocate in the Capitol that this is the height of hypocrisy. Legislators embrace this practice with open arms all the time. In fact, they recently approved the updated card check bill in exactly this way with nary a concern in the world about the process. So why am I pontificating to such a degree on this effort by the Administration? Simple. We have to move forward in a deliberate way on a number of projects. The Sites Reservoir in Northern California is a great example. The project is awaiting final permit approvals, and a significant portion of the funding would come
from Proposition 1, which was passed in 2014. It’s been almost 10 years and not a shovelful of dirt has been moved on new water storage. This is extraordinarily frustrating given the state’s need for a stable water supply and that the final cost to complete a project only increases over time. California’s very aggressive air quality mandates also highlight the need for the rapid development of energy infrastructure that will be necessary to support the state’s transition to all-electric vehicles. Charging stations need to be permitted and installed all throughout the state. This is going to be a daunting challenge, but it has to happen. A reliable energy grid is essential for California to attain its air quality mandates. Given the discourse surrounding the overall proposal, it’s very clear that it will have to be significantly amended if it has a chance to pass and be signed by Gov. Newsom. On a positive note, legislators are indicating that they understand that changes need to be made and that they are both willing and looking forward to having this discussion. Perhaps that was the point of the introduction of this sweeping package—it has forced a substantive conversation to happen that will hopefully lead positive change. Better later than never. Goals mean nothing if you don’t take concrete steps to implement them.
8 JULY | AUGUST 2023 Sites Reservoir location. Photo courtesy of sitesproject.org Western Grower & Shipper | www.wga.com
INSV Defense: Breakthrough against INSV with first resistant lettuce varieties
A solution to the Impatiens Necrotic Spot Virus (INSV) is finally within reach for lettuce growers. After years of intensive research and breeding, the Dutch vegetable seed company Rijk Zwaan is launching two Romaine lettuce varieties for the U.S. market with a resistance to INSV. The varieties are the first in the company’s INSV Defense line.
Read more: rijkzwaan usa .com/insv-defense
For more information, contact Lettuce Crop Specialist Nathan Peretz at n.peretz@rijkzwaan.com
The Data Corner: Artificial Intelligence and Machine Learning Applications in Agriculture By Marlene Hanken, Data Analyst, Science Since the introduction of ChatGPT to the public earlier this year, Artificial Intelligence (AI) and Machine Learning (ML) have become hot topics for conversation. ML, a subtopic of AI, involves training algorithms (data models) on large amounts of data to enable them to make predictions or take actions based on the data. AI, on the other hand, refers to the ability of a machine or computer program to mimic intelligent human behavior—most notably problem solving, decision making and tasks that require human intelligence. Their applications and possibilities are endless.
To our growers, the most asked question is, “How can AI and ML be applied to agriculture?” While an exhaustive list of AI and ML applications in agriculture would be impossible to produce, this article will cover four applications to West Coast agriculture that have been underway prior to ChatGPT’s meteoric rise in attention. One of the most promising applications of AI and ML is precision farming. AI and ML algorithms can use field data on weather, soil conditions and plant growth to optimize crop yields. These algorithms can identify patterns and predict future crop growth and can set automated actions based on predefined threshold or benchmarks. By using precision farming, growers can optimize their use of resources, such as water, fertilizer and pesticides—resulting in increased crop yields, reduced water usage and overall costs and improvement of the efficiency of their operations. Another application of AI and ML is crop monitoring. Using cameras and sensors, growers can collect data on crop growth and health and feed these data to ML algorithms to identify early signs of disease or pests. Being able to detect these issues early, growers can take proactive measures to prevent them from causing significant damage to the crop. AI-powered tools, such as harvesters, can automatically remove affected crops from production upon detection. This is incredibly powerful and useful for crops susceptible to disease and pests. AI and ML are being used to improve efficiency of greenhouse operations. Greenhouses growing specialty crops can monitor temperature, humidity, light and other environmental factors. With these data, growers can optimize the conditions inside the greenhouse to improve crop yields and quality and set automatic responses to keep conditions optimal. Crops requiring more stringent conditions for growing are benefiting the most from this application. One of the most exciting applications of AI and ML is the development of autonomous tractors and
other farm equipment. Using the built-in sensors and cameras allows on-field data to be collected to aid in automated planting and harvesting equipment. Growers can fill labor shortages with some of these machines and reduce labor costs.
EXAMPLE ML USES • Prediction
• Image Recognition • Speech Recognition • Medical Diagnosis • Financial Industry & Trading
Source and Image: TowardsDataScience
Operations can implement AI and ML tools to improve the efficiency of supply chain management. By combining data from weather, crop growth and market demand, growers can make better decisions about when to plant and harvest their crops, optimize transportation schedules and better manage crop storage—all leading to better resource management. New applications are being discovered every day for this emerging technology. Are you using AI or ML in a way that wasn’t covered in this article? Contact us at data@wga.com—we’d love to learn more! Want to learn more about AI, ML and their applications in ag? Tune in to our Fall AI/ML webinar to learn more! Email us with questions related to this article or suggestions for future article topics.
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How the Western Growers Transportation Program Delivers for Shippers By Bryan Nickerson, Commodity Services & Supply Chain Management Director It's hard to believe that a year has flown by since Lauren Singh took charge of the Western Growers Transportation Program (WGTP). Over the past year, we have witnessed significant changes in the transportation market, shifts in consumer demand at the store level and evolving transportation requirements from our members. Here are some recurring themes and perspectives from these discussions:
During this time, the WGTP successfully implemented Navisphere® technologies for numerous members, resulting in enhanced efficiencies, real-time visibility, cost savings, improved reliability and positive customer experiences. We also noticed a rise in demand for specific modes such as Less Than Truckload (LTL) shipping and warehousing. About WGTP: The WGTP remains an exclusive benefit available to our esteemed Western Growers members. Through our partnership with C.H. Robinson, we provide a personalized program tailored to meet the complex needs of challenging supply chains. By leveraging state-of-the-art logistical technology, we optimize distribution patterns and reduce delivered costs, ensuring high- quality consultative service. For over a decade, the WGTP has been offering turnkey supply chain solutions to our shipper members. Our best-in-class services encompass truckload shipping, LTL, intermodal transportation, refrigerated warehousing and forward distribution. As part of the program, shippers gain access to national surge capacity, customized pricing options, transportation performance analytics and dedicated By enabling shippers to improve their logistics efficiency through effective management of spend, carrier performance and market risks, the WGTP provides a unique and substantial competitive advantage. We empower our members to optimize their supply chain operations, ensuring cost- effectiveness and superior performance. Transportation Market Insights: C.H. Robinson has two customer communities: shipper customers and carrier customers. account management. The WGTP Advantage: Through conversations with carriers of all sizes, we have gained valuable insights into the market.
• Awarded volumes are crucial for revenue stability • Larger fleets prioritize dedicated service awards • Over-reliance on the spot market poses challenges due to low pricing and limited volume availability • Timely delivery of tractor and trailer orders has been achieved as planned • The costs of new equipment remain remarkably high • Improved parts availability has resulted in fewer delays related to maintenance • There is an ample supply of drivers, enabling carriers to be more selective with their freight choices As we reflect on the past year, it is clear that the WGTP has made significant strides in meeting the evolving needs of shipper members. By leveraging advanced technology, optimizing supply chains and providing unparalleled services, we continue to deliver a substantial competitive advantage. We remain committed to supporting our members’ success in the ever- changing transportation landscape. To develop or expand your individual logistics program and learn more about the WGTP, please contact Lauren below:
LAUREN SINGH WGTP / CHR Transportation Director, C.H. Robinson (831) 392-7061 lauren.singh@chrobinson.com
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Western Grower & Shipper | www.wga.com
How to Enhance the Patient Experience By Tim Cheatham, Project Management Specialist
Western Growers Assurance Trust (WGAT) recently introduced the WGAT Healthcare Concierge powered by Rightway, a groundbreaking service designed to revolutionize the healthcare experience for WGAT members. There are many reasons behind the development of this service and why we chose Rightway Healthcare as our trusted partner.
According to The Patient Experience (PX) Revolution in Healthcare study by Talkdesk Research, 78 percent of patients believe engaging with healthcare systems through their preferred channels is crucial. In response, WGAT recognized the need to enhance patient experiences, empowering members to manage their healthcare effectively. After rigorous evaluation, we carefully chose Rightway Healthcare as the ideal partner for the WGAT Healthcare Concierge. Rightway is a leading healthcare navigation and advocacy platform that seamlessly blends technology and a human-centered approach to transform patient interactions with healthcare. The WGAT Healthcare Concierge brings a multitude of benefits and features to enhance the healthcare experience of our members. With Rightway’s user-friendly platform, members enjoy simplified healthcare navigation and personalized guidance in finding the right providers and treatment options, helping them make more informed decisions when it comes to their health. The dedicated care team, consisting of U.S.-based healthcare experts, provides comprehensive support throughout a member’s healthcare journey. Whether it’s scheduling appointments, reviewing medical bills, seeking second opinions or accessing telehealth services, the care navigators ensure that members receive the care they deserve. To make the healthcare experience even more convenient, the WGAT Healthcare Concierge offers a seamless digital experience. Through the user-friendly mobile app and web portal, members can easily access their medical plan information, communicate with their dedicated care team and receive personalized recommendations. The power is at the member’s fingertips, allowing them to take control of their healthcare journey anytime, anywhere. We understand the burden of healthcare costs, which is why the WGAT Healthcare Concierge incorporates tools to help members make cost- effective decisions. By comparing prices for services, members can identify cost-effective options, saving them money and reducing financial stress. WGAT’s commitment lies in providing a healthcare experience that caters to our members’ needs and preferences. The WGAT Healthcare Concierge
powered by Rightway offers a unique opportunity to enhance patient engagement, simplify healthcare navigation and make better decisions about healthcare costs. With the WGAT Healthcare Concierge powered by Rightway Healthcare, Western Growers Assurance Trust is here to support you in your journey toward improved health and well-being. If you currently do not have a WGAT plan and would like to learn more about how we can assist you in managing your healthcare costs, we encourage you to contact Western Growers Insurance Services. Our dedicated sales team members are available at (800) 333-4WGA to provide you with the information you need.
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Western Grower & Shipper | www.wga.com
The Top Three Mistakes Your Broker Made When They Sold You Product Recall Insurance— and How to Fix Them By Chad Klein, Sales Executive, WGIS It is a common misconception that product recalls are covered under a general or product liability policy. Those coverages do a good job of covering bodily injury and property damage, but generally exclude contamination and recall events. This is referred to as the sistership liability exclusion. The addition of a product contamination or product recall policy protects a company’s bottom line by covering the direct costs of recall, but transferring the risk is only one part of closing the recall exposure gap. • Your broker doesn’t understand product recall
Every company with products on the market, regardless of size, should establish solid product risk management policies and procedures for handling a recall or contamination event. Insurance for first-party losses caused by product tampering and contamination incidents are broadly labeled as product recall insurance. Product recall policies help to cover the additional costs of a recall, including product loss, costs to withdraw the product from market, product disposal, product testing, overtime wages and crisis management—costs that can be devastating because they arise at a time when a company’s revenues are typically hit hardest. Here are the top three mistakes your broker may have made when they sold you Product Recall Insurance: • They don’t fully understand your company’s exposures and what steps you take to reduce foodborne contamination. Your company was generically presented to underwriting and did not receive best-in-class rates and terms. We use a proprietary process to uncover and outline how you actively prevent contamination in order to present you in a way where underwriters fight to win your business.
insurance, so they use a third party to source coverage. You don’t have an advocate at the table who will add and delete the specific endorsements in order to design a policy that responds to your company’s specific needs. Work with a subject matter expert who has partnered with underwriters to design and build policy tailored for the fresh produce industry. • Your broker didn’t vet the crisis consultant team and has no in-house product recall claims experience. In the event of a claim or incident, you receive poor advice that causes the increased cost to the claim and damage to your brand. Partner with a broker who has a relationship with proven crisis consultation providers and has a tested internal claims team to guide you during the event. That broker would be Western Growers Insurance Services. We’ve spent the last eight years building institutional expertise and capabilities for the agriculture and food industries. For more information, please contact me, Chad Klein, at cklein@wgis.com.
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Agriculture Should Lean Into the Food is Health Initiative By Walt Duflock, Senior Vice President, Innovation There is a lot of conversation currently around food is health . It is absolutely true that consumers who have a healthy diet with more specialty crops will improve their overall health. To push this initiative, there is a lot of activity around program funding that incentivizes the purchase and consumption of healthy foods.
One recent example of a quality program was the USDA Farmers to Families Food Box, which helped turn millions of products that could have gone to waste when food service shut down due to COVID into food boxes that were given to families in need. This was a double win—food did not go to waste and families in need got some really healthy food boxes. Now, the far more interesting conversation to me is the competing resource allocation between food and pharma as a better health option. So, who is the key player in the resource allocation question between these two segments? How will the insurance companies decide which of the two gets resources, and how will they break ties and measure results? Think about one of the biggest problems in the U.S. today: Obesity is an increasing problem across age, racial and regional demographics, and it causes related problems like diabetes. There are two possible responses. Consumers can eat more healthy food and reduce the occurrence of obesity and diabetes. Alternatively, they can take medicine and use medical procedures to treat diabetes—and in some cases—to help reduce obesity. Note that pharma solutions fail to address the underlying problem, which is the consumption of unhealthy foods, which can lead to obesity and diabetes. The U.S. pays $1.9 trillion (yep, trillion with a T) on bad health outcomes each year. Much of that goes to pharma companies trying to fix the results of the problem instead of the real problem. What would we rather have government funding go to— pharma that fixes the result or fresh produce that
solves the underlying problem? It’s an easy answer when posed this way. So how do we get some of the $1.9T to go towards fresh food? We need to help the pharma companies evaluate their results, and we need to start measuring the results of healthier food consumption. From the data I have seen, the advantages of healthier food consumption is already pretty clear and getting clearer all the time. The data on pharma as an alternative spend is a lot less clear, particularly on a relative basis when compared to food. One solution treats the underlying cause, so you have to believe it will deliver better long-term ROI. I think agricultural providers of specialty crops should lean into this one and help measure the results along a couple of key metrics: 1. Long-term health impacts of food and pharma; 2. Change over time in health impacts from behavioral change; and 3. ROI on the relative investment in both outcomes (i.e., which one delivers better results for the investment made by companies and policy makers). Once the data is collected, policy makers will be able to make decisions based on real data and real outcomes and be able to allocate resources based on what the data tells us. It would surprise me if food does not end up being a better investment than pharma by a fairly wide margin for the reasons outlined above. Regardless, we should all want the data to get collected so it can drive policy discussions. If that means funding research that can gather the data, the entire ag industry should write that check.
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Western Grower & Shipper | www.wga.com
PLAN YOUR INVESTMENTS FOR RELIABILITY, EFFICIENCY & PROFIT. DON’T LET TECH BE YOUR WEAK LINK. TECH: THE NEW FARM INPUT
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Support When You Need It, Day or Night
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Bob Giragosian, Managing Partner of Kern Ridge Growers, LLC Director since 2022 | Member since 1977 | D-9 Kern County/Bakersfield Farming for Generations By Michelle Rivera While narratives of generational family farmworkers resonate within the ag industry, Bob Giragosian has independently charted his own unique path to achieve success.
Bob began his agricultural career in Fresno, where he worked as a farm laborer throughout high school and college. After receiving his BA from California State University, Fresno and his MBA from Claremont Graduate University, he got a job with Marshburn Farms in 1978, immersing himself in the growing, packing and processing of carrots and other vegetables. Soon after, Bob joined Grimmway Farms, where he worked as General Manager for 16 years. “When I started at Grimmway, we had about 100 employees, and when I left, we were at about 3,000 employees,” he said. Today, Bob is the Managing Partner of Arvin, Calif.-based Kern Ridge Growers, a position he’s held since 1996. Kern Ridge Growers is a year-round shipper of conventional and organic carrots and has been a leader in the carrot industry for more than 35 years. Alongside carrots, Kern Ridge also farms, packs and ships oranges and bell peppers under the Kern Ridge label. Since joining the company, Bob has helped contribute to a remarkable expansion of the business, with sales growing from approximately $10 million to an impressive $60 million. “We’ve been in a very good position with our business in general,” he said. “I consider us somewhat recession-proof because no matter how bad things get, people will still eat carrots, oranges and bell peppers. We don’t have any glamor products; we just offer the hardware products.” His dedication to ag spans decades, and Bob remains steadfastly committed to improving and advancing the industry. “I love everything about ag. There aren’t many opportunities for you to do the same thing for 45 years and still be successful while finding it rewarding the entire time,” he said. But working in the same industry for 45 years doesn’t equate to complacency. Quite the opposite, in fact, according to Bob. “What we do today versus what we did 40 years ago, it looks like a whole different business,” he said. “This industry has changed so much over the years, and if you don’t change with it, you won’t survive.” Embracing technology and innovation has been a deep-seated passion for Bob, and his efforts have helped improve both quality and cost at Kern Ridge Growers. “I’m very involved in the design and modernization of our plants,” he said. “We do a lot of in-house construction with the help of outside engineers and specialists. Our plants are very
modern, and because of this, we’ve gone from all hand labor to mostly automation.” Bob helped facilitate the company’s purchase of Green Valley Cold Storage, a plant that had laid dormant for nearly 40 years. At the height of its operation, Green Valley Cold Storage had been the largest stone fruit packer in the country in the 1950s and early ‘60s, Bob explained. “We restored the plant, which was built 100 years ago, to its original configuration and beyond,” he said. “We reconditioned it and turned it into a modern and automated plant, like our other operations.” According to Bob, automation has allowed the business to survive, even with a dwindling workforce. “The workforce is getting smaller, and if we can’t make changes, we can’t exist. The lives of our employees have been improved by automation. The work is a lot easier than it ever was before, and it’s a lot more rewarding,” he said. Bob was elected to the Western Growers Board of Directors this past November, making it his first time serving after five nominations. “I really wanted to get on the board because I felt I could bring a lot of experience and different viewpoints to benefit the ag community,” he explained. Bob said he’s most looking forward to actively contributing to water policy, legislation and labor issues and currently serves on the water and legislative committees. “Agriculture is a great business—and it’s very rewarding—but it requires a lot of dedication. Feeding people is a wonderful thing.”
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Fresh Kist Produce LLC Member since 2000 The Collective Advantage By Michelle Rivera The saying “there is strength in numbers” resonates with all of us. Fresh Kist Produce LLC was founded on this very principle of unity and collaboration and continues to embrace it as the foundation for its continued success.
Headquartered in Guadalupe, Calif., Fresh Kist Produce was established in 2000 when a collective group of grower-shippers joined together with the goal of enhancing the marketing of their vegetable production. The growers were facing the challenges of an unstable marketplace and unfavorable market conditions and knew they needed to make a momentous change. “They realized back then they’d be stronger together if they wanted to make a profit from growing and shipping their vegetables,” said Denny Donovan, who has been with Fresh Kist Produce since 2005 and sales manager since 2009. These grower-owners have worked together ever since to grow high- quality vegetables marketed and sold by Fresh Kist. “We also draw quite a bit of product from several other local growers who support us in growing, harvesting and shipping fresh produce in the U.S. and internationally,” Denny said. Fresh Kist prides itself on its broccoli program— the backbone of its business, Denny explained. “We export most our product to Japan and Taiwan. If we didn’t have the international market, I don’t think we would be growing that much broccoli because that’s what keeps us moving.” In addition to broccoli, Fresh Kist grows cauliflower, celery, lettuce and mixed vegetables, including sugar peas and snap peas. “We’ll also bring in product from Mexico, like radishes, onions, kale and cilantro when it’s in season,” he said. With nearly 50 years of experience in selling fresh produce, Denny said he knew at an early age that this would be his career path. “I was born into a produce family and exposed to produce sales early. My dad was a produce salesman, my grandfather was a produce salesman, and my uncle was a produce salesman,” he said. “I saw my dad enjoying what he did and figured I could hang around with some really great people who were enjoying themselves and making a good living.” One of Fresh Kist’s winning formulas has been its focus on open market items, explained Denny. He said that many ag companies are heavily involved in contract sales and contract around 60 percent to 70 percent of their products. “We’re the opposite,” Denny said. “We contract about 20 percent of our product. We look smart when
items are short and we’re selling at a higher price. For example, last year we were able to sell romaine lettuce for $70, $80, $90 a box, which are numbers we’ve never seen before. Our growers were rewarded for that, of course.” But there are times when this can present a challenge, particularly when the market becomes saturated, which Denny is seeing right now. “There are people fulfilling their contracts, and there’s not much product being sold on the open market, so if you have any kind of excess product, you’re selling for really low prices,” he said. This year has so far brought some unexpected surprises for the industry veteran. With record rainfall and cold temperatures in January, February and March, Denny expected to see product shortages from the first part of May to the middle of June. So far, that hasn’t been the case. “I saw pictures of overflowing rivers and flooded fields—it was looking like Armageddon for a while. I was wondering how we were going to get products to our customers two months down the road, but these growers managed to pull it off. You’ve got to hand it to these California growers. It’s a negative that the prices are terrible right now for some of the products, but it’s a real tribute to the workaholic mentality of the California grower.”
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FEATURE STORY
Getting to Know GMO By Kara Timmins
G enetically Modified Organisms, or GMOs, have become a featured topic when it comes to food and food regulation since its introduction to the market in the early 1990s. While the acronym is familiar, many don’t know what it actually means for something to be a genetically modified organism, and fewer still have looked into what it means for them if they consume something that falls within the GMO category. Commonly searched questions include
introduced to promote a beneficial characteristic. This is different from gene editing, which modifies the genetic material that already exists within the organism. Genetic modification through selective breeding has been happening throughout human history. A shift away from hunting and gathering toward agriculture started the ever-present push to create more food in a better way that continues today. But in 1982, the FDA approved the first genetically engineered consumer product: Biosynthetic Human Insulin (BHI). Not long after that, the federal government established the Coordinated Framework for the Regulation of Biotechnology in 1986. This document is a comprehensive summary of the roles and responsibilities of the three principal regulatory agencies—FDA, U.S. Environmental Protection Agency (EPA) and U.S. Department of Agriculture (USDA)—have with respect to regulating biotechnology products. This document was updated in 1992 and again in 2017. In the 2017 version, the document notes that it set out to “clarify current roles and responsibilities, to develop a
long-term strategy to ensure that the Federal biotechnology regulatory system is prepared for the future products of biotechnology, and to commission an expert analysis of the future landscape of biotechnology products to support these efforts. The goal of this work is to increase public confidence in the regulatory system and to prevent unnecessary barriers to future innovation and competitiveness.” These updates are an indication of the ever-changing nature of human-affected adaptation in biology. These initiatives are perpetually motivated by the need to feed a growing population fresh, nutrient- dense food. Of the plants that are classified as GMOs, the United States grows only a few, and of those that are, even fewer are specialty crops. Specialty crops are defined by the USDA as fruits and vegetables, tree nuts, dried fruits and horticulture and nursery crops, including floriculture. According to the FDA, the majority of plant GMOs are used to make ingredients that are used in food products, like cereal, snack chips and vegetable oils.
what is a GMO, is it safe to eat GMO foods or is my seedless watermelon GMO? Many consumers are unaware of the developments and innovation that happen within agriculture all the time. Misunderstanding or a lack of information is common fodder for fear and reactive responses to that anxiety. It’s up to individuals to decide their stance on GMOs, but that stance—and the decision-making that comes from it—should be made with supporting information. This article is not meant to be exhaustive in that endeavor, but it will hopefully spur curiosity or act as an introduction for someone looking to make informed voting decisions. The History of GMOs and What They Are According to the United States Food and Drug Administration (FDA), a GMO is “a plant, animal, or microorganism that has been altered through genetic engineering, which involves the manipulation of DNA using techniques that are not possible through traditional breeding methods.” The tag of GMO is often used to mean an organism that has had genetic material
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What a GMO Isn’t Because there is a gap in explaining what a GMO is, confusion exists around determining which food in the produce section of the grocery store is a product of GMO. Genetic innovation to make fruit sweeter, seedless, bigger, smaller, more robust, or easier to harvest are happening in agriculture all the time, but that doesn’t mean those products are a result of genetic engineering. Along with genetic editing, a lot of these new variants of much-loved produce come from a more traditional approach like selective breeding. This is a more time-intensive approach requiring methodical scientific work. So though some may find a seedless fruit suspicious (how can something that comes from a seed be seedless?), that doesn’t mean the produce is a result of genetic alteration. Innovation in agriculture is creative and groundbreaking, and it is powered by the motivation of the industry to provide fresh, healthy produce to the public year after year while adding a bit of surprise and delight (like making fruit taste like a ballpark candy favorite). What are Common Fears Related to GMOs? The primary concern people seem to have in relation to GMOs is the potential negative health outcomes that may come from consuming them. Of the concerns, some note that they’re worried that consuming GMOs may lead to allergic reactions, toxic effects, long-term health issues or that the introduction of foreign genes into crops could have unforeseen consequences. According to the FDA, “GMO foods are as healthful and safe to eat as their non-GMO counterparts. Some GMO plants have actually been modified to improve their nutritional value.” But in the common practice of science, the summary is not a declaration, and many researchers continue to assess whether or not there are long-term health effects associated with consuming GMOs. It’s important to recognize that the availability of GMOs were created and utilized with a purpose, and they have accomplished some of those objectives. In the article A Meta-Analysis of the Impacts of Genetically Modified Crops, researchers Wilhelm Klümper and Matin state, “On average, GM technology adoption has reduced chemical pesticide use by 37%, increased crop yields by 22%, and increased farmer profits by 68%.
Yield gains and pesticide reductions are larger for insect-resistant crops than for herbicide-tolerant crops. Yield and profit gains are higher in developing countries than in developed countries…The meta- analysis reveals robust evidence of GM crop benefits for farmers in developed and developing countries. Such evidence may help to gradually increase public trust in this technology.” What Lies Ahead? Agriculture is an industry that is pulled by the current of adaptation; it’s a component of the very product growers are in the business of selling. The tools that are used today also change with the adaptive nature of the industry and are one step in the way forward. In the same way that the science of the past seems outdated to us now, the ways of today will look the same to those looking back. Already the techniques of genetic alterations are opening up the way to gene editing. As a succinct overview, the researchers Alessandro Nicolia et al. noted in the article An Overview of the Last 10 Years of Genetically Engineered Crop Safety Research : “ The technology to produce genetically engineered (GE) plants is celebrating its 30th anniversary and one of the major achievements has been the development of GE crops. The safety of GE crops is crucial for their adoption and has been the object of intense research work often ignored in the public debate. We have reviewed the scientific literature on GE crop safety during the last 10 years, built a classified and manageable list of scientific papers, and analyzed the distribution and composition of the published literature. We selected original research papers, reviews, relevant opinions and reports addressing all the major issues that emerged in the debate on GE crops, trying to catch the scientific consensus that has matured since GE plants became widely cultivated worldwide. The scientific research conducted so far has not detected any significant hazards directly connected with the use of GE crops; however, the debate is still intense.” The effort to provide food to a growing population will continue in both the field and the lab. It’s the responsibility of consumers (who are also voters) to navigate the scientific literature to question beliefs and challenge fears.
WESTERN GROWERS OFFICERS – 2023 ALBERT KECK, Chair STUART WOOLF, Vice Chair NEILL CALLIS, Treasurer DON CAMERON, Executive Secretary DAVE PUGLIA, President & CEO DIRECTORS – 2023 GEORGE J. ADAM Innovative Produce, Santa Maria, California CRAIG ALAMEDA Topflavor Farms Inc, Salinas, California ALEXANDRA ALLEN Main Street Produce, Santa Maria, California CHAD AMARAL D’Arrigo Bros Co of California, Salinas, California KEVIN S. ANDREW Illume Agriculture, Bakersfield, California ROBERT K. BARKLEY Barkley Ag Enterprises LLP, Yuma, Arizona STEPHEN J. BARNARD Mission Produce, Inc., Oxnard, California BARDIN E. BENGARD Bengard Ranch, Salinas, California BRIAN BERTELSEN Cove Ranch Management, Reedley, California GEORGE BOSKOVICH III Boskovich Farms, Oxnard, California RODNEY BRAGA Braga Ranch, Soledad, California NEILL CALLIS Turlock Fruit Company, Turlock, California DON CAMERON Terranova Ranch, Inc., Helm, California EDWIN A. CAMP D. M. Camp & Sons, Bakersfield, California CAROL CHANDLER Chandler Farms LP, Selma, California LAWRENCE W. COX Lawrence Cox Ranches, Brawley, California STEPHEN F. DANNA Danna Farms, Inc., Yuba City, California THOMAS DEARDORFF II Deardorff Family Farms, Oxnard, California TIMOTHY ESCAMILLA Bolthouse Farms, Bakersfield, California CATHERINE A. FANUCCHI Tri-Fanucchi Farms Inc., Bakersfield, California DAVID L. GILL Rio Farms, King City, California ROBERT GIRAGOSIAN Kern Ridge Growers, LLC, Arvin, California BRANDON A. GRIMM Grimmway Farms, Arvin, California JOHN JACKSON Beachside Produce, LLC, Nipomo, California A. G. KAWAMURA Orange County Produce, LLC, Fullerton, California ALBERT KECK Hadley Date Gardens, Thermal, California J.P. LABRUCHERIE LaBrucherie Produce, El Centro, California STEPHEN MARTORI III Martori Farms, Scottsdale, Arizona HAROLD MCCLARTY HMC Farms, Kingsburg, California TOM MULHOLLAND Mulholland Citrus, Orange Cove, California DOMINIC J. MUZZI, JR. Muzzi Family Farms, LLC, Moss Landing, California THOMAS M. NUNES The Nunes Company, Inc., Salinas, California STEPHEN F. PATRICIO Westside Produce, Firebaugh, California JOHN POWELL JR. Peter Rabbit Farms, Coachella, California RON RATTO Ratto Bros. Inc., Modesto, California CRAIG A. READE Bonipak Produce, Inc., Santa Maria, California ERIC T. REITER Reiter Affiliated Companies, Oxnard, California KYLE RICHARDSON Garry Richardson Farms, Bakersfield, California JOSEPH A. RODRIGUEZ The Growers Company, Inc., Somerton, Arizona BRUCE TALBOTT Talbott’s Mountain Gold, LLP, Palisade, Colorado RYAN TALLEY Talley Farms, Arroyo Grande, California BRUCE C. TAYLOR Taylor Farms California, Salinas, California JACK VESSEY Vessey and Company Inc, Holtville, California MIKE WAY Prime Time International, Coachella, California STUART WOOLF Woolf Farming & Processing, Fresno, California ROB YRACEBURU Wonderful Orchards, Shafter, California
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