CCM President Issues Statement Regarding Chinese Tariff Announcement
News Release from California Citrus Mutual
While the proposed 15% Chinese tariff increase will affect all fruits, nuts and vegetables shipped to China, California Citrus Mutual (CCM) President Joel Nelsen issued the following statement regarding the tariff increase on California citrus as a retaliatory counter to President Donald Trump’s new tariffs on steel and aluminum:
The decision by the Chinese government to levy exorbitant tariff increases on U.S. produce will surely have a direct impact on California citrus producers. Maintaining access to foreign markets and having the ability to compete in a global market place are critical to the success of the citrus industry.
The retaliatory tariffs imposed by China hinders our ability to be competitive by increasing costs for Chinese consumers, an important market for California citrus. Family farmers in our industry will suffer from the economic fallout unless we can find alternative markets for California’s While our Administration focuses on those business sectors requiring attention, the Chinese Administration has chosen to expand the discussion to include the agricultural industry. In fact, the Chinese indicated last week in a statement that constructive talks could alleviate the real issues, yet insufficient time was given to accomplish that objective. Now Chinese consumers and California citrus producers are innocent parties to a trade debate.
Nelsen, CCM Executive Vice President Casey Creamer, and Board Chairman Curt Holmes have traveled to Washington, D.C. recently for meetings with Congress and the Administration regarding trade and other important issues affecting the California citrus industry.
Tulare County’s top ten crops [crop value] in 2015 were:
Cattle & Calves
Oranges- Navels & Valencias
Almonds Meats & Hulls
Tangerines – Fresh
Corn – Grain & Silage
Silage – Small Grain
Kinoshita explained, “Dairy is our number one industry here. Our milk production was off a little bit. We have fewer dairies in business now because of the low milk prices. Anytime your fresh market milk is off, that’s going to affect our overall value. A good 2/3 of that billion-dollar decrease came from the dairy industry. The price was low the entire year, as opposed to the year before.”
Thus far, the reported 2015 county crop reports in the Central Valley are down this year. “Fresno County, for instance, was down 6.5% off its record $7 billion in 2014,” Kinoshita said.
“It has a lot to do with low water deliveries in Fresno and Tulare Counties,” she continued. “The smaller the water deliveries, the more efficient those growers have to be with that water. Anytime you’re pumping water out of the ground, it’s terribly expensive,” she noted.
“Some of our growers have had to decide, ‘All right, I’ve got this much water; I’m going to keep those blocks alive and I’m going to push an older block that isn’t producing as well.’ The returns aren’t as good as some of the newer plantings,” said Kinoshita.
Despite all of that, Kinoshita said agriculture does sit at the head of the table in Tulare County. “Yes, and we need a successful Ag industry to thrive here,” she said.
Tricia Stever Blattler, executive director of the Tulare County Farm Bureau, noted the crop report demonstrates the strength of the agricultural industry. “I think every year when this crop report comes out, it is always a testament to the resiliency of this industry. This industry takes hard knocks, gets knocked down, then steps right back up to the plate and keeps swinging,” Blattler said. “The agricultural sector has a lot of outside challenges that impact the number that we see reported every year.”
Blattler acknowledged the crop value numbers do not reflect net revenue for growers. “It’s always really important for our listeners to know that the crop value is a gross revenue number. When our Ag Commissioner steps to the microphone and speaks to our Board of Supervisors about this report each year, she’s reflecting values that are attributed to all of the gross revenue, and it’s not only the field value,” Blattler said.
“That gross number reported each year also represents our packing houses, our milk processing facilities—the creameries, the butter plants—the packing sheds, all those other parts of our industry that [create] value in our industry,” said Blattler.
Blattler noted up or down, it’s all about the resiliency of farmers. “The industry has its years that are really blockbuster and it has its years when it falls back and we see a reduction acreage. We see reductions in surface water deliveries. The drought is still certainly playing a significant role in the numbers we’re seeing,” she explained.
With regard to surface water, Tulare County is in a bit of a unique position. “As an Eastside county, some of our water deliveries are not as subject to the situation that the Westside is in. In the same sense, we have some significant cutbacks that have been attributed to the San Joaquin River’s restoration and the biological opinions in the Delta—all have had an impact on the Central San Joaquin Valley [water] deliveries regardless of whether you’re Eastside or Westside.
“Also, as the exchange contractors either take greater deliveries of water or give up water, that also impacts the amount available to Eastside growers here in Tulare County,” she said.
In summary, 2015 Tulare Crop Report covers more than 120 different commodities, 45 of which have a gross value in excess of $1 million. Although individual commodities may experience difficulties from year to year, Tulare County continues to produce high quality crops that provide food and fiber to more than 90 countries worldwide.