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November 10, 2017 CapitalPress.com 3 CDFA’s Ross urges growers to communicate with consumers By TIM HEARDEN Capital Press ORLAND, Calif. — State Food and Agriculture Secre- tary Karen Ross held up the rice industry in the middle Sacramento Valley as an ex- ample of how growers can respond to public concerns about their production activ- ities. The industry’s effort about a decade ago to move away from winter residue burning by using water for decom- position quieted downwind complaints from urban resi- dents while creating habitat for birds — and enhancing an already famous hunting ground, Ross said. The move illustrates what California’s 77,500 farms often have to do to mollify concerns among the state’s roughly 40 million residents, many of whom may have formed misconceptions based on inaccurate information, she said. “People don’t know how passionate we are about our land and all the steps we take to preserve it,” Ross told about 75 people at the second annual North State Innova- tions in Agriculture conference Nov. 8 at the Glenn County Fairgrounds. Ross cautioned producers not to lose their human touch. She encouraged farmers to tell their stories on social me- dia and in personal interac- tions with consumers. “People can feel a connec- tion with you even if they’ve never met you,” she said. She pointed to former California Cattlemen’s As- sociation president Matt Byrne, whose family’s Sun- Fed Ranch markets its new grass-fed beef product lines Tim Hearden/Capital Press by handing out samples at California Secretary of Food and Agriculture Karen Ross (left) talks functions such as last year’s with Kevin Spafford of Ryan Wealth Management and Ryann New- Natural Products Expo West in Anaheim, Calif. man, manager of the Glenn County Fairgrounds, before speaking “That takes a lot of effort,” at the second annual North State Innovations in Agriculture confer- Ross said, adding the ranch ence Nov. 8 in Orland, Calif. doesn’t sell all of its beef that She urged growers to work educate Northern California way but still finds the venues with environmental groups farmers and ranchers about valuable. While California’s regula- and cultivate relationships and technological advances and tions often flummox growers, human interactions with city marketing trends. Her message provided a the upside is that the state’s dwellers and consumers. “You have the water of the bookend after keynote speak- products are coveted around state, and you have the wild- er David Schabazian, a man- the world because people life, the forests and the diverse ager for the Sacramento Area know they’ve met high stan- landscapes,” Ross said. “If Council of Governments, dards, she said. To that end, you want to be bolder going opened the conference Nov. 7 California Grown, an or- forward, you have to form by telling growers they should ganization that promotes partnerships and communicate form partnerships with local the state’s farm products, is government planners to have working with the group Visit with more people.” Ross’ remarks came during input on land-use policies that California to enhance food- a wide-ranging speech and could maximize their farms’ and beverage-related tourism, which already accounts for 25 question-and-answer session earning potential. Noting the conference’s fo- percent of all the tourism to near the close of the confer- ence, which was started to cus on emerging technologies, the Golden State, she said. Tiegs expands frozen fruit business with purchases Rader Farms, Willamette Valley Fruit Co. under new ownership By MATEUSZ PERKOWSKI Capital Press Intensifying foreign com- petition hasn’t dimmed farm- er Frank Tiegs’ enthusiasm for the frozen fruit business. With his recent purchase of two processing companies — Rader Farms of Lynden, Wash., and Willamette Valley Fruit Co. of Salem, Ore. — Tiegs is betting on the indus- try’s resilience. “There’s always going to be a place for U.S.-grown fruit,” he said. “I wouldn’t have bought them if I didn’t think it was a good invest- ment.” For Northwest crops such as blackberries and raspber- ries, anxiety about the future of the U.S. frozen fruit in- dustry springs from the easy availability of lower-priced imports from Mexico and South America. Blueberries also compete on a global scale, with new plantings and production ris- ing steadily around the world in recent years. Tiegs said he’s not fazed by the industry’s changing dy- namics, recalling the anxiety surrounding the Chinese ap- ple industry in the 1980s and 1990s. Decades later, U.S. ap- ple growers continue to find ways to compete. In his time as a farmer, Tiegs has found it’s often wis- Mateusz Perkowski/Capital Press A worker at Willamette Valley Fruit Co. in Salem, Ore., unloads blackberries for processing. Farmer and entrepreneur Frank Tiegs recently bought Willamette Valley Fruit Co., Rader Farms in Lyn- den, Wash., and other assets from Inventure Foods for $50 million. er to invest during periods of uncertainty. “My own experience has been to plant what’s not the hot thing,” he said. In the 1970s, Tiegs began his agricultural career doing tractor and truck work for oth- er farmers, then began buying land for himself in the 1980s. Eventually, he moved into fresh packing of apples and potatoes, then invested in pro- cessing fruits and vegetables. Now, Tiegs owns about 15 fa- cilities across Oregon, Wash- ington and Idaho. This “seed to fork,” verti- cally integrated approach al- lows Tiegs to better withstand agriculture’s economic cycles, he said. When crop prices are high, growing his own supply of raw product helps mitigate costs at his processing facilities. When prices are low, the processing facilities add value to crops. Though he primarily con- siders himself a potato grow- er, Tiegs regularly rotates this mainstay crop with sweet corn, onions, peppers, carrots, peas and green beans for process- ing. Frozen fruit offers interest- ing opportunities for innova- tion, such as the retail smooth- ie mix kits that Rader Farms sells under the licensed “Jam- ba” brand. Under Tiegs’ control, the newly acquired facilities in Oregon and Washington will generate more product for food manufacturers than previ- ously, requiring an investment in building inventories. Increasing the amount of crops processed at the facili- ties will also reduce their down time. “I usually try to run plants as close to capacity as I can get them,” said Tiegs, who plans to buy crops from more farmers in the Skagit and Wil- lamette valleys. “We’re hoping to expand our grower base,” he said. Inventure Foods, the previ- ous owner of Rader Farms and Willamette Valley Fruit Co., was hindered by serious finan- cial problems dating back to a food recall in 2015. The recall was prompted by the detection of listeria, a bacterial pathogen, at its Fresh Frozen processing facility in Georgia. Inventure lost money in every quarterly period since the recall, though the compa- ny also blamed the losses on lower frozen food prices and reduced distribution of certain products. Before the recall, the company was reporting sol- id financial gains to the U.S. Securities and Exchange Commission. Mateusz Perkowski/Capital Press Tim Ramsey (left), the newly-hired CEO of the Wilco farmers’ cooperative, shakes hands with Doug Hoffman, its retiring CEO, in front of the company’s new headquarters in Donald, Ore. New CEO will oversee Wilco’s hazelnut foray Tim Ramsey replaces retiring chief Doug Hoffman By MATEUSZ PERKOWSKI Capital Press With its forceful foray into the hazelnut business, the Wilco farmers’ coopera- tive is also bringing in a new CEO with experience in the food processing industry. Last year, Wilco merged with the Hazelnut Grow- ers of Oregon coopera- tive, adding a significant new venture to its existing businesses of retail stores, agronomy supplies and fuel distribution. The merged cooperatives will operate out of a mas- sive new processing facility and distribution center in Donald, Ore., that’s nearing completion. By the end of the year, former Oregon Chery Grow- ers CEO Tim Ramsey will be taking the helm at Wilco when its current chief, Doug Hoffman, retires after 23 years. As he switches from cherries to hazelnuts, Ram- sey looks forward to grow- ing the consumer market for the crop. “We want to take the lead in driving new products and domestic consumption growth,” he said. Traditionally, Hazel- nut Growers of Oregon has largely been geared toward packing in-shell hazelnuts for China — a major export destination — and shelling them for food manufactur- ers. Since it already operates 18 retail stores in Oregon and Washington, Wilco now sees an opportunity to sell packaged hazelnut products to consumers as well. Hazelnuts aren’t widely available at mainstream gro- cery stores, so consumers must often seek them out at specialty shops, said Hoff- man. “Today, it’s hard to find on the shelf,” he said. To compare, walnuts pro- cessed by the Blue Diamond company have a strong con- sumer presence, said Ram- sey. As it works to increase the domestic visibility of ha- zelnuts, Wilco benefits from the fact they’re grown by its own farmers — modern con- sumers value such transpar- ency, he said. Market research will de- termine the exact nature of Wilco’s hazelnut products, but history has shown that crops can quickly achieve breakthrough popularity with the right approach, Ramsey said. “Who had a pomegran- ate before five years ago? Look what POM (the food products company) has done with the pomegranate,” he said. Wilco’s retail farm stores have been successful at a time when the overall bricks-and-mortar retail in- dustry is under stress. Up until now, the coop- erative has focused on the Interstate 5 corridor in Ore- gon and Washington, but it’s exploring an expansion into California and elsewhere in the Northwest, said Hoff- man. The company has found its niche in locations with a substantial population base that earns a decent income but are still rural enough for raising livestock and hobby farming. “Our stores don’t fit in all communities,” Hoffman said. The biggest challenge for Wilco’s retail stores is e-commerce, which the co- operative aims to overcome with its own strategy for on- line shopping. Retail stores can serve as useful pickup points for items bought online, said Hoffman. “It’s the same rea- son Amazon bought Whole Foods.” Wilco isn’t as vulnerable to the rise of e-commerce as grocery stores, since its retail stores often sell items that are too heavy or un- wieldy for easy shipping, Ramsey said. “Not everybody is going to buy T posts online,” he said. Wilco’s agronomy unit is also adapting to changes in production agriculture with its recent joint venture with Valley Agronomics and Winfield Solutions. The joint venture allows the three companies to reach more farmers over a larger geographical area while in- creasing their buying power for fertilizers and chemicals, said Hoffman. Such expansion is neces- sary as farmers have grown larger and suppliers have be- come more consolidated, he said. “Our competitors also grew. They became national competitors.” 45-3/102