Bipartisan Protest by Members of Congress to State Water Board Denial of Delta Pumping Flexibility

February 13th, 2015

A bipartisan, bicameral group of legislators has sent a letter to the California State Water Resources Control Board (Board) requesting that it reverse a recent decision by staff to block moderate pumping increases in the Sacramento-San Joaquin Delta under certain conditions. The letter, sent to the Board’s Chair, Felicia Marcus, was signed by Majority Leader Kevin McCarthy, and five other Republican members of the California delegation (Costa, Calvert, Valdao, Nunes and Denham), as well as Senator Dianne Feinstein.

Legislators said it was “difficult to understand” the decision made by the Board’s Executive Director that contravened the opinions of five federal and state regulatory agencies, three of whom are tasked with protecting fish. Those agencies, including the U.S. Fish and Wildlife Service, the National Marine Fisheries Service, and the California Department of Fish and Wildlife, all “had assessed and concurred that the export adjustment would not cause harms beyond those allowed under the most stringent statutes and biological opinions.” 

The letter pointed out that “from the day the order went into effect until storm flows arrived in the Delta, as much as 10,000 acre-feet or 3.25 billion gallons of water was lost.”  Legislators also said that their constituents continued to face serious financial and lifestyle hardships amid worsening drought conditions and that wildlife and refugees were also being affected.

Members concluded that “we find the Executive Director’s reasons for denial unpersuasive and unsupported by the facts that have been carefully evaluated by five State and Federal agencies.”

Western Growers is also protesting the decision and is sending a letter to the Board asking for the decision to be reversed.

Texas Judge Blocks Obama’s Immigration Orders

February 18th, 2015

Siding with 26 states that filed a lawsuit to block implementation of President Obama’s Executive Orders announced last November, a federal district court judge in Texas issued a temporary injunction yesterday halting the program on the basis that the president overstepped his authority.  Although officials at the Department of Homeland Security (DHS) acted quickly to comply with the judge’s ruling, the White House said it would appeal the decision.  The anticipated appeal would place the preliminary injunction in front of the 5th Circuit Court of Appeals in New Orleans, according to a report by Reuters

The ruling places in limbo the fate of millions of undocumented immigrants who stand to gain relief from deportation and obtain work permits should the orders ultimately be upheld on appeal. It also comes at a time when Republican and Democrats in the U.S. Senate are locked in a fierce battle over a House–passed bill that would defund the Department of Homeland Security if Obama’s immigration orders remained in effect.  According to CQ Roll Call, Republican leaders might be willing to put an end to the current DHS funding battle and allow the spending legislation to advance without the immigration provisions, at least until the lawsuit is resolved.

State Water Board Asked by WG to Reconsider Staff Denial of Temporary Pumping Modifications

February 18th, 2015

Western Growers President and CEO Tom Nassif sent a letter to the State Water Resources Control Board (Board) on February 12, 2015, strongly objecting to a recent staff decision to deny limited increases in export pumping from the Sacramento-San Joaquin Delta under certain conditions and asked the Board to rapidly reconsider its decision on the Temporary Urgency Change Petition (TUCP). The modified pumping levels were supported by three federal regulatory agencies and two state agencies.  Three of the five agencies are tasked with protecting fish, including the U.S. Fish and Wildlife Service, the National Marine Fisheries Service, and the California Department of Fish and Wildlife. 

In his letter, Nassif said, “Throughout the last year, state and federal officials have praised their collaboration in managing the drought and have pointed to their increased reliance on real-time monitoring and data to manage our infrastructure more flexibly and ensure that all water users, including farms and cities south of the Delta, are not harmed by unnecessarily restrictive decisions to limit water deliveries. The Executive Officer of the State Water Resources Control Board has acted unilaterally to undermine the projected benefits of this collaborative, flexible approach.”

Last week a bipartisan group of California’s Congressional delegation also sent a letter to the Board asking it to reverse the staff decision.

Tomorrow, February 18, 2015, the Board is holding a workshop in Sacramento to receive input on a drought contingency plan for the State Water Project (SWP) and the Central Valley Project and on the TUCP.

Obama Directs Labor Secretary to Intervene in West Coast Port Negotiations

February 18th, 2015

President Obama has dispatched his labor secretary to engage in talks with the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) in order to try to bring an end to the months-long contract dispute between both parties.  Secretary of Labor Thomas E. Perez will attempt to intervene and end the dispute which has severely jeopardized the transport and sale of fresh produce to customers overseas, and has placed some growers on the West Coast at a disadvantage with their competitors.  

The action comes on the heels of the of requests by agriculture and retail organizations, including Western Growers, that have urged President Obama to use his influence to get both sides to come to terms and end a slowdown that  has been estimated to  cost importers and exporters billions of dollars per day. Last week, Western Growers President and CEO Tom Nassif issued a press statement calling on the president “to become personally and immediately engaged” in the dispute.

Cal OSH Standards Board to Vote on Revisions to Heat Illness Prevention Regs

February 18th, 2015

On February 19, the California Occupational Safety and Health Standards Board will vote on revisions to the heat illness prevention standard (General Industry Safety Orders §3395). Previous proposals were roundly criticized by Western Growers and other industry groups in written comments and at a public meeting last September.

The earlier proposals contained requirements that water must be within 400 feet of workers and shade placed no more than 700 feet from workers.  In December, the board published a 15-day notice of proposed modifications which would now require water and shade to be placed “as close as practicable to the areas where employees are working.”

The latest proposal maintains the prior proposal’s lowering of the “shade-up” trigger temperature from the current 85°F to 80°F. However, the prior proposal’s lowering of the threshold for “high heat” procedures from 95°F to 85°F has been removed. Despite these improvements, industry groups maintain that no evidence has been produced by Cal/OSHA to justify changing a regulation which has been so successful at reducing incidents of heat exposure in outdoor industries.

Look for updates on the proposed revisions to the HIP standard in future editions of Spotlight.

Affordable Care Act Webinar Presentation and Video Available

February 18th, 2015

Last week, during a WG-sponsored webinar, Jon Alexander, general counsel for Western Growers Assurance Trust, provided a wealth of information to participants about what companies need to do to comply with the Affordable Care Act.

Regardless of whether you participated in the webinar, if you are a Western Growers member, you can now download the presentation. Once you download the presentation slides, the email you receive will contain a link to the video as well.

If you have questions about the webinar or Affordable Care Act compliance, contact Jon Alexander at 949.885.2330.

Paul Couture, Innovator and Couture Farms Patriarch, Passes Away at 97

February 19th, 2015

Western Growers regretfully announces the death of former board member and Couture Farms patriarch, Paul Couture, who passed away on February 2, 2015, at the age of 97.  Paul was born in Modesto, California, on January 13, 1918, into a farming family and was raised on a small farm at the edge of town (his dad shipped the family’s first grapes in 1926).  He attended Modesto High School and Modesto Junior College for a year before moving on to U.C. Davis where he was elected student body president.  Couture was married for 71 years to his wife Charlotte with whom he had four children: Suzanne, Steve, Christopher and Corinne.  Sadly, Corinne (a.k.a. Cori), also recently passed away on January 6, 2015.   Memorial services are being planned in March to honor both Paul and Cori.  

While Couture’s family and friends mourn his loss, they are also celebrating his full life and the legacy of a man who was considered an innovator, inventor and respected farmer.  His son Steve said he leaves a remarkable legacy, both as a man and in the agriculture industry.  “When he came out of college, he was very well-rounded.  He loved reading and music — especially jazz — and also of course, loved to farm,” Steve fondly recalls.  “He was always improving the layout of our packing sheds and spent time inventing and modifying other equipment.” 

Couture Farms is a family partnership and is based in Kettleman City, California.  The company grows melons, asparagus, almonds, pistachios and pomegranates.  In its early days, the Couture family dehydrated and shipped large emperor grapes to Europe; however at the start of World War II, that operation ceased and the family instead moved into carrots, melons and other crops. The carrot operation supplied almost half of the dehydrated carrots to the U.S. Army in the Pacific theater.        

Western Growers Executive Vice President Matt McInerney said, “Paul and his company have enjoyed a lengthy history with Western Growers.  A leader and legend in the melon industry, he was also an innovator whose contributions will long be remembered.  He will be missed.”

Couture Farms has been a member of WG since 1946 and Paul served as a WG Board member in 1956-58, 1960-64, 1968 and 1971-76.

In lieu of flowers, the family requests that donations be made to the California Agriculture Leadership Program.

China Closes Market for Citrus-to-Citrus Originating in Tulare County

February 19th, 2015

In 2013, China closed the market for California citrus due to phytophthora syringae (brown rot).  The market reopened, however, in July 2014 after a work plan was developed following negotiations between the U.S. and China. 

Unfortunately, effective February 17, 2015, China's quarantine agency (AQSIQ) has suspended shipments of all citrus from Tulare County, due to the same issue.  AQSIQ will not allow imports of citrus from Tulare County that departs ports on or after February 18, 2015.  The suspension does not affect fruit sourced in counties other than Tulare.

The United States Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) reported that several loads of citrus were tested in Shanghai and Phytophthora syringae was, in fact, detected.  APHIS is conducting investigations in California to evaluate compliance with the China Protocol. 

CDFA Issues New Policy on HLB Infected Citrus

February 19th, 2015

On February 11, 2015, the California Department of Food and Agriculture’s (CDFA) Plant Health and Pest Prevention Services office issued an advisory to all county agriculture commissioners (CACs) for Huanglongbing (HLB) infected citrus.  Pest Exclusionary Advisory No. 07-2015 notifies the CACs that commercially produced citrus fruit will no longer be tested for HLB by CDFA’s Plant Pest Diagnostics Center and should not be rejected under 7 CFR 301.76.  

The exemption of commercially-produced citrus fruit is based on a risk assessment of pathways for the transmission of HLB and Asian Citrus Psyllid (ACP).  The Federal Domestic Quarantine for Citrus Greening and Asian Citrus Psyllid still applies to non-commercial fruit as they have not been properly cleaned and ACP are known to hitchhike on the fruit. For this reason, only commercially-cleaned fruit (even when it is HLB positive) is exempt.

West Coast Port Slowdown Over; Impact on Trucking Capacity and Rates Anticipated

February 25th, 2015

The West Coast port slowdown is all but over after a tentative deal was struck late last week between the ILWU and PMA; however, fresh produce exporters and domestic shippers may not be out of the woods yet. A massive port backlog is estimated to take as much as 12 weeks or longer to clear.  The combined effects of the backlog are expected to negatively affect equipment availability and truck rates in the near term.

Through the WG Transportation Program (WGTP) and our strategic relationship with CH Robinson, shipper members have exclusive access to tools and information that can help your company navigate through what is likely to be to be a period of instability in the transportation market. CHR’s Monday informational sheet and continued interaction with your CHR account representative can greatly assist in providing market information and solutions to your transportation requirements.

Understanding issues like the need to provide additional lead time in ordering transportation services and how to communicate possible delays with your customers is paramount.  Working with WGTP can stave off issues before they develop. 

If you are not already availing yourself of these tools, WG highly recommends you contact CHR’s John Stenderup at 866-771-1270 today.  Both CHR and Spotlight will continue to provide updates on the transportation situation. 

For questions related to the port slowdown or other related issues, please contact Ken Gilliland at (949) 885-2267.

Standards Board Approves Changes to Heat Illness Regs

February 25th, 2015

Last week, the California Occupational Safety & Health Standards Board approved changes to the state’s Heat Illness Prevention (HIP) Regulations (Cal. Code of Regs. tit. 8, § 3395).  The board intends to request that the revisions be made effective May 1, 2015, so that the changes are in place prior to the upcoming heat season.

Here is a summary of the HIP regulation revisions:

Water: “Fresh, pure, suitably cool" water must be located as close as practicable to where employees are working, with exceptions when employers can demonstrate infeasibility.

Shade: Must be provided when temperature reaches 80° F (current threshold is 85° F), and accommodate all employees on recovery or rest periods, and those taking onsite meal periods.

“Preventative cool-down rest“:  Employees must be 1) monitored for symptoms of heat illness; 2) encouraged to remain in the shade; and 3) cannot be ordered back to work until symptoms are gone. Employees with symptoms must be provided appropriate first aid or emergency response.

High-heat procedures: Trigger remains at 95° F. Employer must ensure "effective" observation and monitoring, including a mandatory buddy system and regular communication with employees working by themselves. During high heat, employees must be provided with a minimum 10-minute cool-down period every two hours. This means that employees must be given an extra 10-minute rest period for workdays longer than 8 hours during high heat periods.

Emergency response procedures: Requires effective communication; response to signs and symptoms of heat illness; and procedures for contacting emergency responders to help workers in distress.

Acclimation procedures: Employers must closely observe all employees during a heat wave (80° F). New employees must be closely observed for their first two weeks on the job.

Employers will have to revise their heat illness programs and train employees prior to May 1, assuming the Office of Administrative Law approves the Standards Board’s request for an early effective date. Normally, the changes would be effective July 1.  Western Growers will update members when the effective date is officially announced.

Western Growers Insurance Services has safety specialists that can provide required heat illness training and assist you in developing your heat illness plan.  Please contact Greg Nelson, vice president insurance services at (949) 885-2287 for more information.

February 27 Webinar — New Requirements for Conservation Compliance

February 25th, 2015

The most recent Farm Bill links conservation compliance to crop insurance.  If you currently utilize or market crop insurance, it is critical to understand the new requirements.  To help you do this, Western Growers will host a 90-minute webinar with experts from USDA’s Risk Management Agency (RMA), Farm Services Agency (FSA) and Natural Resources Conservation Services (NRCS) who will explain the new requirements to ensure that companies who currently have crop insurance, as well as those who are contemplating it, have met their obligations under the new law. 

This webinar will equip growers and/or their agents to file the correct documentation and when necessary certify compliance.

Webinar Details

New Requirements for Conservation Compliance Webinar

Friday, February 27th from 10:30am-12:00pm

REGISTER NOW

Allowable Charges for H-2A Workers’ Reimbursement Announced

February 25th, 2015

The Department of Labor has published a Notice in the Federal Register to announce the allowable charges and subsistence reimbursements related to H-2A workers in 2015.  The notice provides the maximum meal charge for employers who provide three meals per day to workers, as well as the maximum travel subsistence meal reimbursement that a worker with receipts may claim. It also includes a reminder about the employers' obligations with respect to overnight lodging costs as part of required subsistence for the H-2A program.

In its job offer to U.S and H-2A workers, the employer either must state that it will provide each worker with three (3) meals a day or furnish free and convenient cooking and kitchen facilities to the workers that will enable the workers to prepare their own meals. If the employer is going to provide the meals to the workers, the job offer must state the charge, if any, to the worker for such meals.  The maximum meal charge is $11.86 per day.

In addition, the employer must state the minimum and maximum amounts of money that workers will receive for daily subsistence when traveling to and from the place of employment. For workers who complete 50 percent or more of the work contract period, the employer must pay workers for subsistence expenses incurred traveling from the place the worker came from to the place of employment. If the worker either completes the work contract period or is terminated without cause, and the worker has no immediate subsequent H-2A employment, the employer must pay workers for subsistence expenses incurred traveling from the place of employment back to the place the worker came from to work for the employer. 

The maximum daily subsistence amount remains at $46.00 per day for 2015 with documentation of actual expenses. If a worker has no receipts, the minimum daily subsistence reimbursement is $11.86 per day.

WG Webinar — Current Fumigant Regulatory Issues

February 25th, 2015

On February 25, 2015, Western Growers is hosting a webinar to bring our members up to speed on the current fumigant regulatory issues facing growers. This presentation will focus on the challenges related to the use and restrictions of methyl bromide, chloropicrin, metam sodium and 1-3 D/telone.  Reserve your spot and REGISTER TODAY!

Webinar Details

Current Fumigant Regulatory Issues

February 25, 2015 at 11:30 a.m. (PST)

REGISTER TODAY! Don’t miss this important webinar

Featured Speakers:

Jim Wells, President, Environmental Solutions Group

WG Board Members Discuss Industry Issues with Arizona Elected Officials

February 27th, 2015

Western Growers Executive Committee and Arizona Directors, led by Chairman Vic Smith, President and CEO of JV Smith Companies, and President and CEO Tom Nassif, were in Arizona this week for meetings at the Arizona State Capitol.  The Western Growers delegation met with statewide officials and legislators regarding several issues facing our members.  

The agenda included a visit with Governor Doug Ducey, as well as a meeting with his new Natural Resources Policy Advisor Hunter Moore. Lunches with Secretary of State Michelle Reagan and Speaker of the House David Gowan and meetings with State Treasurer Jeff DeWit, President Andy Biggs and several legislators were also part of the packed schedule.

Topics of discussion included WG’s bills to protect the piece-rate wage calculations in Arizona and a bill to clarify the statutes regarding investigations of alleged pesticide violations. The group also discussed water policy, the Department of Agriculture budget and the preservation of the ag water conservation tax credit.  

Pictured in the photo from left to right are: WG Chairman Vic Smith (JV Smith Cos.–Yuma, AZ); Gary Pasquinelli (Pasquinelli Produce Co.—Yuma, AZ); Hunter Moore Natural Resources Policy Advisor to Gov. Ducey; Arizona Governor Doug Ducey; Larry Cox (Lawrence Cox Ranches–Brawley); Sammy Duda (Duda Farm Fresh Foods, Inc.—Salinas, CA); WG President and CEO Tom Nassif; Will Rousseau (Rousseau Farming Co.—Tolleson, AZ)

WEBINAR TOMORROW FEBRUARY 27 — New Requirements for Conservation Compliance

February 27th, 2015

The most recent Farm Bill links conservation compliance to crop insurance.  If you currently utilize or market crop insurance, it is critical to understand the new requirements.  To help you do this, Western Growers will host a 90-minute webinar with experts from USDA’s Risk Management Agency (RMA), Farm Services Agency (FSA) and Natural Resources Conservation Services (NRCS) who will explain the new requirements to ensure that companies who currently have crop insurance, as well as those who are contemplating it, have met their obligations under the new law. 

This webinar which takes place tomorrow, February 27th, 2015, will equip growers and/or their agents to file the correct documentation and when necessary certify compliance.

Webinar Details

New Requirements for Conservation Compliance Webinar

Friday, February 27th from 10:30am-12:00pm

REGISTER NOW

Western Growers Forms Partnership with Colorado Fruit and Vegetable Growers Association

February 25th, 2015

On February 25 in Denver, the Colorado Fruit and Vegetable Growers Association (CFVGA) and Western Growers (WG) announced a strategic collaboration between their respective specialty crop grower trade associations.  The two associations have signed a memorandum of understanding that allows them to work together on federal policy issues, food safety and other policy issues of mutual interest. In addition, the two associations will seek to work together on other mutually beneficial programs and activities which will include opportunities for online informational and learning webinars.  The memorandum gives Colorado growers access to WG association services as well as expertise in trade and commodity services and creates a dynamic collaboration on membership.  

“For almost 90 years, Western Growers has represented members from California and Arizona in Washington, D.C. when advocating the needs and concerns of fresh produce growers, handlers and shippers to federal government agencies and to members of Congress,” said Western Growers President and CEO Tom Nassif.  “Today, we can proudly say that the voices of growers in Colorado will join ours when we go before federal leaders to discuss our concerns and advocate for solutions to our problems.”

Western Growers will provide membership to growers and allied members of the CFVGA throughout 2015 and 2016 as outlined in an exclusive strategic partnership agreement approved by both organizations and access to Western Growers federal government affairs staff and resources as well as WG’s Science and Technology staff.  The agreement does not include Colorado state advocacy or other state activities.

 “I have had the pleasure of getting to know Western Growers over the last few years having participated in fly-in visits to Washington D.C. and other meetings,” said Robert Sakata, president of the Colorado Fruit and Vegetable Growers Association.  “I think the knowledge and expertise of the Western Growers science and technology staff, especially regarding food safety issues and regulations as well as from other staff on immigration reform and farm labor issues will be of great benefit to CFVGA members. Western Growers has been a great force on the national stage and we hope to add to their strength with our activities from Colorado as we share many of the same concerns.  My hope is that this will be the first step in building many long lasting friendships to help our growers.”

The two associations will also promote one another through several marketing and communications tools and services and explore other ways to collaborate over the next several years as we add Colorado to our Western Growers family.

Nassif Responds To L.A. Times Column

February 1st, 2015

(Editor’s Note:  Western Growers President & CEO Tom Nassif’s “Letter to the Editor” disputing a column by George Skelton about the use of water to produce almonds, was published by that paper in its Dec. 16 edition.)

 

To the editor: Skelton thinks California shouldn’t produce almonds for export because they require lots of water.  It also generates 97,000 Central Valley jobs and $11 billion for California’s economy.  We should be proud that America produces something the world wants.

We bemoan America’s trade deficit and we celebrate other industries that produce something desired around the globe.  Silicon Valley’s microchips require a lot of water to make; about 10 gallons for one chip.

In February, President Obama said, “Over the past five years, thanks to the hard work and know-how of America’s farmers, the best in the world, we’ve had the strongest stretch of farm exports in our history,” adding, “What we grow here and what we sell is a huge boost to the entire economy, but particularly the rural economy.”

Skelton may want to think more about the farmworkers, farmers and communities who created this American success story.

 

Tom Nassif

Irvine, CA

Feeding the World When Global Population Reaches Nine Billion: Something to Worry About?

February 1st, 2015

Do you have days when you feel you are damned if you do and damned if you don’t?  I read news reports all the time about our industry, as you probably do.  It’s the criticism in the media that stings when judgments are made that farmers do not use natural resources well, in particular, water.  Some accuse us of exporting our water because we are successful at growing and selling almonds and pistachios for export to other countries.  (By the way, California farmers and ranchers also export a large amount of citrus, dairy and meat products, but for some reason environmental activists train all their fire on almonds and pistachios.)

As much as it bothers me to hear this criticism, do the critics’ arguments have any merits — why shouldn’t we concern ourselves first with feeding and taking care of our own people and preserving water for ourselves in this country?  Should we worry or feel guilty about all the water required to grow commodities and tree nuts which we then export?  But then I read other critics bemoaning the fact that the United States suffers from a negative balance of trade, and that’s not good either.  How many times have you heard someone lamenting the fact that so much of the stuff we buy comes from China?

America has had a trade deficit every year since 1975.  Last year it was around $40 billion.  When he came to office in 2009, President Obama said he wanted the U.S. to double its exports by 2015.  Well, agricultural exports soared to a record $152.5 billion last year (41 percent higher in value over five years).  That was thanks to grain crops, oilseeds and livestock (and some tree nuts) but not fresh fruits and vegetables.  In that category our trade deficit was about $4.4 billion.  There are many reasons for this which could fill several pages of this magazine, but let’s set that aside for later.  The fact is that over the years, fruit and especially vegetable imports, have been increasing and taking over more of our markets while our exports are decreasing.  Exports are a good thing.  We should be proud that America produces something the world wants and needs.  In the future the world is going to need more — much more food than we produce today — and 95 percent of those consumers live outside the United States.

This is an opportunity, not a threat.  World population is expected to grow by 30 percent in the next 30 years with 98 percent of that growth happening in developing countries.  Along with it will be a growing middle class looking for more diverse kinds of food, like fresh produce and tree nuts.  Americans eat very well today.  Soon many more in the world will, too.  Is that a bad thing?  Why should we have to apologize for prudently using natural resources, human resources and capital to grow food that feeds and nourishes people either here or in other places around the globe?

Of course we should worry about feeding a hungry world: for the benefit of people, the benefit of America, and for our own individual benefit.  Look at China, for example.  Over the years we have had trouble competing with them as they took over the garlic market for a while and then the processed apple market.  It’s logical to think that demand will one day exceed supply in China and that it won’t be able to feed its own people everything they want.  The United States has the ability to provide fresh produce and protein-rich nuts for export and is using less water to produce more.

The amount of water it takes to produce a pound of almonds has fallen by a third since 1990. We supply the world with 80 percent of its almonds for a reason.  China, and India, have tried to put down massive plantings of tree nuts and have not been very successful.  According to Dave Doll with the University of California Cooperative Extension, this is because no other region in the world has California’s combination of land, climate, infrastructure, and research.  I agree, and with the benefit of applying more high tech services and products to our industry from another thriving and leading region — Silicon Valley — we are unsurpassed at precision agriculture in many commodity groups.  This is cause for celebration, not apologies.

As people in developing countries discover better eating and gain access to food diversity as their own economies grow, they will desire, want and insist on having the kinds of food America grows and ships.  Yes, we absolutely need to worry about increasing our exports and expanding our markets, and about the balance of trade as well as job creation here in the United States.  We need to worry about the profitability of our industry and businesses within it.  This we know:  We have the best growing climate in the world and with more and better technology we can utilize our natural resources more efficiently and grow more with fewer inputs.  That is our future, so full speed ahead and damn the critics.

Innovation & Sustainability Hallmarks of ‘Living Herbs’ Operation

February 1st, 2015

Leo & Suzette Overgaag

North Shore Greenhouses Inc.

Thermal, CA

Member Since 1996

Background: Leo and Suzette Overgaag met at Hollandia Farms in Carpinteria where Leo worked at his father’s firm in the greenhouse flower business and Suzette first found employment as a teenager.  After several years went by, the duo became a couple and eventually married.  “We had decided we wanted to raise our family in the desert so we moved to this area and started our own farm,” said Suzette.

And thus began North Shore Greenhouses Inc. in 1987.

 

From Greenhouse Cukes to Living Herbs: Initially the family business featured greenhouse-grown European cucumbers.  Leo handled the growing end of the business while Suzette was in the office and handled the financial affairs.  “European cucumbers were a specialty crop then and they were a very good item for us for years,” Suzette said.

However, the popularity of the item moved it toward the commodity category with larger, Mexico-based farms achieving a competitive advantage.

To this day, North Shore still grows a few European cukes, but in the mid-1990s, it changed its product mix to greenhouse-grown living herbs.

“Becoming parents spurred on our health focus and got us cooking healthier meals,” Suzette said.  “That led to our experiencing the flavor superiority of herbs picked fresh from the garden.  We wanted to make that experience available — year round — to other everyday people — garden fresh flavor at your fingertips.  That’s where our focus on living herbs came from.”

Packed in a clamshell with roots intact, the North Shore Living Herbs were able to carve out a unique position in the marketplace.  “We started with seven varieties and have grown to 21.”  The firm also added a potted herb category over the years.

Basil is the number one seller, but mint, rosemary, thyme, dill and chives are not far behind.  There are many others that especially appeal to the “foodie” community.

 

Measured Growth: Suzette said the company did not experience difficult times during the recession, nor is it in boom times now that the economy has rebounded.  “We try to keep our growth very gradual,” she said, noting that this philosophy has allowed the firm to responsibly grow its business over the years.  “Some people consider us a luxury ingredient and we were happily surprised to see that growth in demand for our produce hasn’t been impacted by economic swings.  Due to the impact of trends on healthier eating over the last few years, we have seen interest remain good in our category.”

 

Responsibility & Sustainability: The very idea of beginning the company more than 25 years ago in an area where it could take advantage of geothermal conditions is de facto proof that sustainability has always been in the forefront of North Shore’s thinking.  But they didn’t call it that.

In recent years, with the sustainability concept gathering momentum, North Shore Greenhouses endeavored to achieve sustainability certification.  During the process, the firm discovered that with most of its ingrained practices, it was already well on its way to earning that distinction with few changes.  Besides the use of renewable geothermal power for energy, Leo’s many greenhouse growing innovations created a very efficient use of water, including the use of recycled water.

Suzette said it turns out that the company’s progressive practices with regard to pay, benefits and the care of its employees were also important factors in gaining sustainability certification.  While treatment of resources is important, so is the treatment of the worker.  In both cases North Shore received top marks.

The same company culture prevailed when North Shore sought Global Gap certification this year.  It scored 100 percent on the audit.

 

Grower Challenges: Suzette said greenhouse growers face many challenges but she can’t compare them to those faced by field growers as they don’t walk in each other’s shoes.  “It is very expensive and very challenging to operate a greenhouse,” she said, “but it’s completely different than field farming.  I don’t know their challenges.”

However, she said challenges with tax laws and government regulations are areas where probably all growers have issues.

 

Technology Rules the Greenhouse:  Maybe more than field agriculture, technology is a very important factor in greenhouse production.  Suzette said that just like computers, greenhouse technology is advancing all the time and it is important to keep up to date to be able to produce crops in an efficient manner.  The high cost of production—which is calculated on a per-square-foot basis—makes it imperative that the latest technological advances be incorporated.  Her husband and partner, Leo, takes care of the grower end of the business and is well-versed on those technologies.  Suffice it to say that producing crops under greenhouse conditions today is much different than it was when the firm was started 27 years ago.

 

The Western Growers Connection: In 1996 North Shore Greenhouses joined Western Growers to be a part of the grower community.  “We were aware of the services they provided to the industry and when we started our own company we thought it was important to have the resources that Western Growers provides.  Many different ones, with a focus on employment/labor/benefits, we utilize those services mostly.  I look forward to having the time to use their services more as our company continues to grow.”

The company has a year-round workforce, so it does not have the seasonal labor issues that plague others, but it still has to deal with a myriad of labor regulations.

 

A Family Affair:  As mentioned earlier, Leo’s father was a longtime greenhouse grower in the Carpinteria area, so it was with particular delight that the Overgaags welcomed their daughter, Brittney, into the family business this past year.  “That was very exciting when she came to work with us full time,” said Suzette.

Of course, Brittney and her two siblings grew up in the business and did whatever jobs were necessary, but it was very special when she joined the company full time.  Another daughter is a teacher who doesn’t appear to have the family business in her future.  “We want Brittney to explore other options as well but it’s great that she is working with us.  She graduated from University of Redlands and is currently doing some great graphic design work for us.”

In addition, the couple have a 17-year-old son who currently says he is going to run the business one day.  “He is not mechanically minded, but he has a good business sense and a good personality.  We’ll see.”