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  • redpepperking

Mistakes and Misconceptions in production and retail


Good morning and happy Wednesday. I have a lot to discuss today and I hope you read until the end with all the associated links. The first is a Q &A with the opposing representatives of the suspension agreement. https://www.producebluebook.com/2019/08/04/qa-with-leaders-of-tomato-suspension-dispute/

I have written my opinion on this matter several times and the only thing I want to reiterate is that the Michael Schadler’s arguments are BS. This has nothing to do with dumping and everything to do with Mexico investing the time, the technology, and discovering what consumers wants and beating the Florida growers whom did nothing to advance their one-time superior product. This is not about family farms this is about 3 big families that want to control the tomato business in the USA and Mexico is standing in their way. They are also the biggest buyers and growers of Mexican tomatoes, let that sink in and then you see their motivation. It’s greed not family farms and they can’t win with their tomatoes, so they fight with politicians.

The same data can be manipulated to argue each side, but I believe The Florida tomato exchange went well beyond manipulation, as many of their facts are false. As I always say “ It’s not dumping it’s produce” We are held to the forces of supply and demand and sometime those forces dictated that we sell below production cost. This happens with every produce item not just tomatoes. Which brings me to the next question? If the Florida exchange wins, what next? Do they use the same argument for peppers, eggplant, cucumbers beans etc.? If they win this, we all lose.

Another article caught my eye where it tries to prove something but, in my opinion, proves nothing.

https://www.thepacker.com/article/us-imports-mexican-tomatoes-fall-may-and-june

The graph wants to show the correlation of Mexican tomatoes imports and the suspension the cessation of the suspension agreement. This may in fact be the case but there are some inherent flaws.I’ll give you 2 of the biggest reasons. What was the weather in Mexico over the same period over those 3 years, and how much did it affect volume and quality? What was the National market price compared to the USA market/ If the National Mexican market is higher than the USA market the tomatoes stay in Mexico?Again the data can always be manipulated to prove your point of view.

I have 2 more links but I will save most of my commentary for Sunday because I see your eyes glazing over. The first is Kroger’s take over of Mariano’s. All I will say now is the giants take over the independents and instead of learning from them in what makes them great, they change them into what is wrong.

https://www.chicagobusiness.com/consumer-products/kroger-ruining-marianos

And last do you recognize any of these quotes?

https://www.thepacker.com/article/what-industry-needs-now

Have a GREAT day!!!!

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