12 CapitalPress.com
February 10, 2017
‘I’m grateful I’ve spent my career in a dynamic industry’
SCHLECT from Page 1
Part of the appeal for
Schlect was the opportunity
to travel.
Schlect would follow in
Falk’s footsteps to become
president of the Horticultural
Council — known by its ini-
tials, NHC. For more than 36
years he has advocated on be-
half of the tree fruit industry
in the halls of Congress and
before federal agencies and
helped negotiate the creation
of the World Trade Organi-
zation, laying out the ground
rules for international trade.
Schlect, now 65, is retiring
at the end of March.
ements of the Food Safety
Modernization Act of 2011.
Complicated and costly test-
ing of orchard water strikes
many as overkill, and there’s
hope the Trump administra-
tion will roll back such regu-
lations, Schlect said.
There have been many
other issues NHC has worked
on during Schlect’s tenure, in-
cluding saving the fumigant
methyl bromide for cherry ex-
ports, access for U.S. apples
to China, keeping other mar-
kets open and industry oppo-
sition to genetically modified
apples developed in Canada.
Sometimes, NHC gets
involved in getting specific
truckloads of apples moving
again when they are stuck at a
border because of paperwork
problems.
NHC has an export manual
open to the public on its web-
site that lists minimum pes-
ticide residue level require-
ments and tariffs for imported
tree fruit by country.
The transition
Falk had been NHC pres-
ident for 33 years. A big part
of his job had involved freight
rates charged for Washing-
ton apples that were shipped
overseas and domestically
by rail. The domestic part
was lessened by deregulation
during the late 1970s.
When Schlect became
president in October, 1980,
he was initially worried there
might not be enough to do. It
was a one-person office, and
Falk stayed on for a year of
transition.
“Compared to being a dep-
uty prosecutor, it was very
quiet,” Schlect said.
But he could see lots of po-
tential and with the election of
Ronald Reagan as president in
1980, it wasn’t long before the
pace picked up.
Future of NHC
Dan Wheat/Capital Press
Chris Schlect, center, president of Northwest Horticultural Council, Yakima, Wash., will retire in March. Mark Powers, left, the executive
vice president, will become president and Kate Woods, right, will continue as vice president.
Retirement reception
Northwest Horticultural Council will hold a public reception for Chris
Schlect from 2 to 5 p.m. March 31 at the Yakima Country Club.
Schlect and his wife, Janet, will be honored. They have three
children and four grandchildren.
Overarching issue
International trade issues
were developing and the rel-
atively new Environmental
Protection Agency would be-
come more active, but immi-
gration was the overarching
issue. Schlect spent several
years working on what would
become the Immigration Re-
form and Control Act of 1986.
“It was many of the same
issues we have now, taking
care of the people already
here and seeing if it was at all
possible to have a guestwork-
er program,” he said.
Schlect became involved
in the Farm Labor Alliance,
mainly driven by California
agriculture, that put forth a
guestworker program known
as the Panetta-Morrison
amendment, named for Rep.
Leon Panetta, D-Calif., and
Rep. Sid Morrison, R-Wash.,
who represented Schlect’s
home district.
A variation of the amend-
ment was adopted, also al-
lowing preferential legaliza-
tion for farmworkers without
criminal records.
“Many people now fore-
men and retired were legal-
ized in that. Yes, it was amnes-
ty and people don’t like that
word but to move millions of
people out of the country is a
tremendous undertaking and
disruptive socially,” Schlect
said.
“There was high expec-
tation we would gain control
of the border and we did not,
so people view it as a failure
but a number of laws were im-
proved,” he said.
One improvement requires
immigration enforcement of-
ficers to have probable cause
to apprehend suspected illegal
immigrants.
With Donald Trump now
president, Schlect predicts
immigration
enforcement
will increase. But he also said
federal agencies must cease
their hostility to the H-2A visa
guestworker program, which
in turn needs a more realistic
way to set the minimum wag-
es.
Legal work status is need-
ed for illegal immigrants who
James R. Cranney Jr., presi-
dent of California Citrus Quality
Council.
have not committed other
crimes, he added.
He’s optimistic it can hap-
pen.
“If the U.S. government
can control the southern bor-
der and there’s not a lot of
people flooding over, I think
public emotion on the issue
will die down,” he said.
Respectful approach
In industry meetings over
several decades, Schlect has
built a reputation for his calm
and reasoned approach.
“Anyone in my job has to
be diplomatic and forceful.
Shippers have strong views
that have to be communicated
but in a way that’s thoughtful
and respectful, not creating
more problems,” he said.
Thomas E. Stenzel, presi-
dent and CEO of United Fresh
Produce Association, has
worked with Schlect for 24
years and said he can be dip-
lomatic or aggressive when he
needs to be.
“He’s one of the smartest
guys in the room, but doesn’t
wear it on his sleeve,” Stenzel
said.
In 1995, Stenzel and
Schlect sought a California
congressman’s support to
amend the Perishable Agri-
cultural Commodities Act to
require produce buyers to pay
for produce bought on verbal
agreements.
“The congressman wasn’t
sure his constituents wanted
him to vote for it. Chris got
very firm. I’m not sure if he
pounded the table, but he said
it was national legislation and
that the congressman needed
to put the interest of the nation
first. It had the desired effect,”
Stenzel said.
James R. Cranney Jr., pres-
ident of the California Citrus
Quality Council and former
vice president of the U.S. Ap-
ple Association, has known
Schlect for 20 years and calls
him a “seasoned diplomat”
and very knowledgeable of
the Washington, D.C., politi-
cal process.
“Chris has always been
consistent in pointing the
way to practical and work-
able solutions,” Cranney said,
“and has an ability to get to
the heart of an issue.”
Alar scare
In 1989, the CBS televi-
sion program “60 Minutes”
broadcast a story on Alar, a
chemical plant growth regula-
tor used to keep apples from
falling from trees before they
were ripe.
Alar had been approved
by the government for use in
1963, but there was debate
over whether it caused can-
cer. The CBS show resulted
in congressional hearings in
which actress Meryl Streep
spoke against Alar.
“It was probably the larg-
est food safety issue in the
last 50 years. The industry
thought Alar was safe, but
people disputed that. Some
within the EPA felt it could be
pulled if there were stronger
laws,” Schlect said.
A philosophical debate
over the nature of regulations
and chemicals followed. It
was a major national story
for several months and the
biggest crisis NHC and the
Washington Apple Commis-
sion had faced.
Apple prices and sales
tanked. USDA estimated
Washington apple growers
lost at least $125 million in
the six months after the initial
uproar. Apples were dumped
on the ground.
Sales suffered even after
the manufacturer voluntarily
removed Alar from the market.
Growers then lost a $250
million class-action lawsuit
against “60 Minutes.”
“It was a perception prob-
lem. People like me found it
hard to explain. It was an in-
tense time. Plenty of us were
lying in bed at night with our
eyes on the ceiling,” Schlect
said.
It led, in part, to NHC hir-
ing its first vice president of
scientific affairs, respected
chemist Wally Ewart.
NAFTA and TPP
In 1994 Schlect worked for
passage of the North Ameri-
can Free Trade Agreement.
It was controversial be-
cause manufacturing jobs
would go to Mexico, but it
increased U.S. agricultural
exports there by eliminating
tariffs that ranged as high as
20 percent.
Few Washington apples
were sold to Mexico before
NAFTA. Now Mexico is
the No. 1 export market for
U.S. apples, buying roughly
10 million, 40-pound boxes,
worth about $200 million an-
nually. Mexico has reimposed
tariffs during anti-dumping
cases, but NAFTA outlines
the procedures for resolution.
President Trump plans to
renegotiate NAFTA.
“I don’t think the admin-
istration wants to shut down
trade with Canada and Mex-
ico but will negotiate a new,
better deal. It’s our opportu-
nity to improve our technical
access and we want to be part
of that,” Schlect said.
He believes Trump’s can-
cellation of the Trans-Pacific
Partnership is not a big loss
for Northwest tree fruit.
It had some benefits but
included no big new markets
or tariff reductions for apples,
he said. The gain was more
strategic to offset China’s in-
fluence in the region than for
trade.
The new administration
wants bilateral agreements
with the 11 other TPP coun-
tries, and NHC plans to work
toward that, he said.
WTO and trade
The World Trade Organi-
zation, an intergovernmental
organization regulating inter-
national trade, was created by
123 countries in 1994. It re-
placed the General Agreement
on Tariffs and Trade, which
had been in force since 1948.
WTO provides a framework
for negotiating trade agree-
ments and resolving disputes.
At the time, Schlect was
a member of the Agricultural
Thomas E. Stenzel, president
and CEO of United Fresh
Produce Association.
Policy Advisory Committee of
the U.S. Trade Representative
and USDA. In that position, he
was involved in negotiations
in Europe that set up WTO.
Schlect has now been on the
committee for about 30 years.
“Most of the other ag sec-
tor advisers, like dairy and
soybeans, were there to pro-
tect their commodities and
were dealing with tariffs,” he
said. “I had a different per-
spective along with few oth-
ers. Phytosanitary issues were
potentially more important to
our industries.”
They worked on the
Sanitary and Phytosanitary
Measures segment of the
agreement, which allowed
countries to set their own san-
itation standards for pests and
pathogens but required they
be based on internationally
accepted science.
It’s proven to be a useful
section of international law
and an achievement he’s most
proud of. Being on the advi-
sory committee has enabled
him to raise issues important
to tree fruit.
However, not all trade is-
sues were solved. For exam-
ple, Israel, Europe and Russia
all still pose access problems.
Other issues
The 1990s were busy not
only with trade agreements
and the WTO, but unanimous
congressional passage of the
Food Quality Protection Act
of 1996. It tightened controls
on the registration of agricul-
tural chemicals.
Schlect helped form and
served as chairman of the
Minor Crop Farmer Alliance,
which worked to have the act
include registration of chemi-
cals for minor crops. The alli-
ance still works with the EPA
to resolve issues facing chem-
ical use on minor crops.
For the past five years,
NHC has also been trying to
ameliorate burdensome el-
Organic sales increased to $6.2 billion in 2015
DEMAND from Page 1
demand for organic meat and eggs. Foreign
producers of organic feed jumped in with
cheap soy and corn.
Meanwhile, organic sales increased to
$6.2 billion in 2015, a 12 percent gain over
the previous year, but the number of organ-
ic farmers dropped and organic acreage was
essentially flat except for the addition of a
gigantic organic livestock ranch in Alaska,
according to the National Sustainable Agri-
culture Coalition.
One more: Millennials, those 18- to
34-year-olds, account for 52 percent of or-
ganic purchases.
“It would be shortsighted if we strive only
to fill the shopping baskets of millennials and
be happy at that,” said Katz, of Oregon Tilth.
He and other speakers said organic pro-
ducers need to tackle the problems in a variety
of ways. The industry needs more processors,
distributors and storage capacity in addition
to more farmers, they said, and should be tell-
ing the public about organic’s broader impact.
Katz said organic production can be an
economic driver in rural areas, and while not
a “silver bullet” for climate change problems,
it can be a factor in reducing the effect.
Most speakers and attendees appeared to
favor the “transitioning to organic” certifica-
tion label hammered out by the Organic Trade
Association and USDA. Such a label might
allow farmers who are in the second-year
of the required three-year transition, for ex-
ample, to label their products that way and
perhaps gain the higher price people pay for
organics. Backers see the transition label as
an “on-ramp” into the organic market.
Michael McMillan, sourcing manager
with Organically Grown Company, said the
industry needs to do “end to end supply chain
engineering,” and market the value of the
“social justice work” connected with growing
food organically.
Other efforts are more localized. Erin Sil-
va, with the University of Wisconsin-Madi-
son’s Extension program, said the university
now offers a short course on organic grain
production. It’s aimed at “traditional farm
kids” who come from conventional farming
backgrounds, she said. The course attracted
10 students the first year and double that this
year, she said.
For 70 years, NHC has
represented the Northwest
tree fruit industry on transpor-
tation, trade, legislation and
regulations.
During that time, the or-
ganization has only had two
presidents.
“I don’t know of any other
trade association that can say
just two people have been at
the helm over 70 years. Hope-
fully that’s a sign of stabili-
ty and not senility,” Schlect
quipped.
He’s enjoyed his career and
believes it was tailor-made for
him. His appreciation of the
hard work of raising tree fruit
came from growing up on the
family orchard that’s still run
by two of his brothers, Neal
and Kurt. He says his law
degree, public policy interest
and love of travel also made
a good fit.
He says he has every con-
fidence in his successor, Mark
Powers, 54, NHC vice presi-
dent for the past 18 years, who
has a background in trade an
international policy.
He also has high regard
for Kate Woods, 32, hired two
years ago as another vice pres-
ident, for her experience as
an aide to Rep. Doc Hastings,
R-Wash., before he retired.
NHC has grown to a staff
of seven and operates on an
annual budget of $1.46 mil-
lion, funded 40 percent by
the Washington Apple Com-
mission, 25 percent by the
Washington State Tree Fruit
Association, 13 percent by
the Washington Tree Fruit
Research Commission, 12
percent by the Fresh Pear
Marketing Committee, 5 per-
cent by the Washington State
Fruit Commission and small-
er amounts from Columbia
Gorge Fruit Growers, Oregon
Sweet Cherry Commission
and Idaho Apple Commission.
It was ingenious of the
industry to fund NHC so
staff could concentrate on
issues and not have to fund
raise, Schlect says. The Ap-
ple Commission occasionally
talks about reducing its NHC
funding, but Schlect hopes it
continues.
Schlect continues to be-
lieve face-to-face interaction
with federal officials is always
better than letter-writing.
Overall the Northwest tree
fruit industry has improved
in growing, storing, packing
and marketing fruit and has
become more sophisticated in
meeting the challenges facing
it, he says.
“I’m grateful I’ve spent
my career in a dynamic indus-
try ...,” he said.
Douglas’ 29th year at
the Northwest Ag show
WEATHER from Page 1
Douglas also forecast good growing weather in
Russia, whose wheat competes with Washington
wheat on the world market.
“I was more depressed about how good it is in
other countries,” Ritzville, Wash., farmer Jerry Sny-
der said of the presentation. That affects wheat pric-
es, which are currently below the cost of production,
he said.
But Snyder was pleased that Douglas’ forecast
showed more normal temperatures after a wet win-
ter.
It affects what happens with diseases, Snyder
said. “Every time you have a really wet year, things
that haven’t been out there show up again.”
This marked Douglas’ 29th year at the show.