Western Growers wishes you and your family a very Merry Christmas! As a reminder, our offices will be closed on Monday, December 24, and Tuesday, December 25.

In the November 26 Spotlight, Western Growers provided the guidance developed by the Perishable Agricultural Commodities Act (PACA) on contract payment responsibility connected to the romaine situation. Over the last several days, the Trade Practices Department of Western Growers has been contacted by numerous WG shippers who have shared situations where certain buyers in the U.S. and Canada are ignoring the PACA guidance and are demanding or simply taking monetary claims that exceed any contract responsibility for those shippers. 

Western Growers is strongly recommending to shippers that dialogue and conversation with buyers follow the long established PACA case law. It is also relevant to understand that it is expected that DRC in Canada follows those of PACA.  Now is the time to utilize the PACA as your template to affect a fair resolution to these outstanding contract situations.

It is imperative to remember this Government Guidance affected all in the supply chain, not just one segment. All parties share responsibility dependent on the original timing of the FDA/CDC notification. If you are uncertain of your rights and remedies, please contact Western Growers Trade Practices Department’s Matt McInerney at [email protected] 949-885-2263 or Bryan Nickerson at [email protected], 949-885-2392.

Today, December 13, FDA updated its ongoing investigation and public advisory related to the E. coli outbreak currently linked to romaine lettuce. While the traceback investigation is ongoing, FDA has identified a pathogen matching the outbreak strain in an agricultural reservoir on the property of a single farm. The water from the reservoir on this single farm doesn’t fully explain the common source of the contamination. FDA is continuing this investigation.

In addition, FDA has removed three additional counties from the consumer alert: Ventura, San Luis Obispo and Santa Cruz. Three counties still remain under the advisory: Monterey, San Benito and Santa Barbara. All other areas not linked to this outbreak are clear to enter the market, provided that the product continues to be labeled with the harvest date and location.

Click here to read the updated FDA advisory.

Click here to read the updated food safety alert from the CDC.

For more information, please contact Sonia Salas at [email protected] or (949) 885-2251.

As we reported here, the adverse effect wage rate (AEWR) for H-2A workers and workers performing like services will rise significantly in many states next year. Given our continued struggle with an adequate supply of labor, allowing this AEWR increase will undoubtedly heighten our labor concerns. 

Growers who utilize the H-2A program for agricultural labor will soon face mandated wage increases of 6% nationwide, and as much as 23% in some states. 

Senator Thom Tillis (R-NC) is seeking to introduce a bill if the opportunity presents itself to freeze the AEWR until 2020 to prevent this drastic increase in wages. This is a potential short term solution but it will provide time for the Departments of Labor and Agriculture to develop a workable solution that better suits the market. 

Western Growers members that are concerned about the increasing AEWR are encouraged to call their Members of Congress to ask them to join Senator Tillis in this effort. The window of opportunity to encourage action is very short; the 115th session of Congress is almost over, potentially ending next week.

 Please reach out to Jonathan Sarager with any questions at 202-296-0191.