Friday, June 3, 2022 CapitalPress.com 9 Meadowfoam growers bring processing in-house By MATEUSZ PERKOWSKI Capital Press SALEM — Oregon meadowfoam growers have begun extracting oil from the seed crop themselves with a new processing facility that’s intended to make them more self-sufficient. “Eventually, we got to the scale where there’s money to be made by bringing man- ufacturing in-house,” said Mike Martinez, CEO of the Oregon Meadowfoam Grow- ers cooperative. “It’s the next logical step.” The cooperative has already moved into the new 15,000-square-foot facility in Salem, Ore., and expects to fully complete the $2.5 mil- lion project before the new meadowfoam crop is har- vested this summer. Farmers in the cooper- ative have outsourced pro- cessing of meadowfoam seeds, whose oil is used in cosmetics, since the organi- zation formed in the 1980s. “Everything historically was contracted out,” Marti- nez said. However, that approach was risky because the mead- owfoam seeds were handled by food processors who typi- cally extract oil from crops at a much larger scale. When the entire Oregon meadowfoam crop is pro- cessed in a few days by large machinery, any malfunction Mateusz Perkowski/Capital Press Meadowfoam grows in Oregon’s Willamette Valley. Growers have invested in a new meadowfoam processing facility. Charles Ortiz, field operations manager for the Oregon Meadfoam Growers cooperative, with bags of mead- foam oilseeds that are ready for processing. has the potential to damage a substantial portion of the state’s output, Martinez said. “It’s a lot less risky from our perspective to have a fixed asset where we’re pro- cessing three-quarters of the year,” he said. Under the previous out-sourcing approach, the cooperative was unable to finish processing the crop until early in the year fol- lowing harvest, he said. It took time to consolidate and ship the meadowfoam seeds to a facility in California. Now, the cooperative expects that it will begin processing soon after farm- ers deliver meadowfoam seeds in late July, which also reduces the time they spend waiting for payment. “You can get cash cycled seed farmers, said Charles Ortiz, the cooperative’s field operations manager. “It’s a simple crop to grow,” he said. A big advantage is that meadowfoam is a broadleaf crop, which expands options for herbicides, he said. Grass weeds can be controlled in it with older chemistry that is less expensive. “There are some chronic grass weeds that meadow- foam helps break the cycle of,” Ortiz said. “You have to break the biological cycle for them.” Killing grass weeds within grass seed crops requires specialized herbi- cide formulations that are costlier than those that work in a broadleaf crop such as meadowfoam, he said. Capital Press File back to the grower faster,” Martinez said. Last year, the coopera- tive’s marketing arm, Nat- ural Plant Products, saw its sales grow 25% over the previous year due to increased spending on cos- metics during the coro- navirus pandemic, which reduced spending on ser- vices, he said. That upward growth tra- jectory won’t likely remain as steep but the cooperative expects to keep the custom- ers it gained in 2021, Marti- nez said. “You don’t land a whale every year.” Meadowfoam seeds will fetch 70 cents per pound for the 2022 crop, up from 65 cents per pound last year, he said. The price has remained largely flat for the past decade but yields have risen from roughly 700 pounds to 1,000 pounds per acre as farmers refined agronomic practices. Acreage has likewise been stable at about 5,000 to 6,000 acres in Oregon’s Willamette Valley in recent years, though the coopera- tive bumped up production to 7,000 acres last year to build an inventory for the change in manufacturing methods. While meadowfoam prices haven’t been enough for farmers to “drool over,” the crop generates a profit and serves as a valuable rota- tion for grass seed, Martinez said. Due to reduced costs for fertilizer and chemi- cals, meadowfoam is also a low-input crop for grass “New means expen- sive in the chemical world because somebody’s got to make their money back for the research,” Ortiz said. The cooperative has recently seen its fortunes improve after experienc- ing economic volatility in the early 2000s, when an oversupply brought acreage down to nominal levels. A distributor for mead- owfoam oil over-contracted for the crop in the late 1990s, placing much larger orders than the demand would jus- tify. The resulting oversup- ply prompted the coopera- tive to largely cease growing the crop aside from research purposes between 2000 and 2006. “It was way out of bal- ance,” Martinez said. R-CALF loses case over eartags By CAROL RYAN DUMAS Capital Press Mateusz Perkowski/Capital Press Carissa Cook, development director for Willamette Val- ley Vineyards, enjoys a glass of wine at the company’s new restaurant in Lake Oswego, Ore. Oregon winery expands into restaurant business By MATEUSZ PERKOWSKI Capital Press LAKE OSWEGO, Ore. — Wine is often intended to enhance the flavor of food, but Willamette Valley Vine- yards wants to prove the inverse is also true at its new off-site restaurants. “The food is there to highlight the wine and showcase the wine,” said Carissa Cook, the Ore- gon-based company’s development director. “The food will be a support to the wine.” The company recently opened the first restaurant in Lake Oswego, Ore., and plans to open two more this year, in Vancouver, Wash., and Happy Valley, Ore. A fourth restaurant is planned for next year in Bend, Ore. Jim Bernau, the winery’s president and CEO, does not plan to stop there, ultimately aiming for 50 locations, Cook said. “He wants them all over the country eventually.” Food is already served at a full restaurant at the com- pany’s headquarters near Salem, Ore., where its impact was big enough to help spur the broader investment in off- site eateries. “We found the customers stay a little longer and spend a little more when there’s a food component,” Cook said. “They’re doing that because they form a connection with this wine.” Memorable food expe- riences while people sip Willamette Valley Vine- yards wines are expected to strengthen the compa- ny’s brand, but the restau- rants are meant to substan- tially boost its revenue as well. Each location is projected to generate more than $2 mil- lion in wine and food sales, including the bottles that cus- tomers buy to take home. Last year, the publicly traded company had nearly $32 million in revenues, so if the four initial restaurants perform as planned, they’d increase sales by roughly 25%. “We definitely expect sig- nificant bottle sales through here,” Cook said. “We expect to be hitting revenue with the restaurants.” Restaurant visits are also expected to provide a lon- ger-term sales lift, with each location projected to gener- ate 600 wine club member- ships a year. Club members are generally more loyal to the brand and buy more wine. The restaurants will also feature a selection of beers and cocktails for non-wine drinkers, but will only sell wines produced by Willa- mette Valley Vineyards, sea- sonally highlighting varietals from across the state. “It’s a chance to show- case the wines’ full poten- tial,” Cook said. “This is really trying to create a brand experience.” To emphasize wine sales, the restaurants will charge for glasses and bottles at the same price point as at the winery. A glass of wine typically costs about four times more when purchased at a restau- rant, so the savings for cus- tomers will be considerable, Cook said. “We’re not doing a restau- rant markup,” she said, not- ing that higher restaurant prices can discourage wine consumption with restaurant meals. “It’s hard when you know you can go to the gro- cery store and get the wine cheaper.” Wine club members get 20% off the price of wines, while the company’s share- holders get a 25% discount. Both are given priority for reservations. “Owners get the top ech- elon of perks,” Cook said. “We want to be sure they feel good about their investment.” The restaurant locations were influenced by where the company’s shareholders live and the level of inter- est in food and wine experi- ences in the neighborhoods, she said. Ranchers have lost their appeal in a case against USDA that alleges the agency violated the Federal Advisory Committee Act, or FACA, in its effort to man- date radio frequency identi- fication eartags. Identification is required on all adult cattle and bison entering into interstate com- merce. But current law gives producers flexibility in deciding which type of iden- tification to use, including low-cost metal eartags. R-CALF USA has strongly opposed a man- date for the exclusive use of RFID, saying it would be costly and burdensome to producers and a case of gov- ernment overreach to benefit RFID eartag manufacturers. The 10th U.S. Circuit Court of Appeals in Wyo- ming on Friday ruled against R-CALF and four indepen- dent ranchers in their appeal of a federal judge’s dismissal of their amended lawsuit in May 2021. The amended lawsuit sought to prohibit USDA Animal and Plant Health Inspection Service from using the work product of two committees allegedly formed in violation of the advisory committee act RFID ear tags on a cow. should the agency proceed with future efforts to man- date RFID tags. R-CALF contended the committees consisted of RFID manufacturers and other advocates and alleged they pursued the precise agenda dictated to them by APHIS. In her 2021 dismissal, U.S. District Judge Nancy Freudenthal ruled APHIS did not form or select the membership of the Cattle Traceability Working Group and the Producer Traceabil- ity Council and did not exer- cise management or con- trol over the operations of either. Therefore, APHIS is free to use whatever work product it obtained from the committees. The appeals court last week agreed. “We agree with the dis- trict court that there is no basis to conclude that defendants either estab- lished or utilized the (work- ing group or the coun- cil) within the meaning of FACA,” the court said in its decision. APHIS employees sup- posedly calling for the cre- ation of an industry-led task force does not prove defen- dants actually established either group. The evidence in the record quite clearly indicates that both groups were formed and composed of industry leaders, the court said. “Consequently, we reject plaintiffs’ requests to direct the entry of judgment in their favor. Instead we affirm the district court’s decision in its entirety,” the court said. “We are disappointed but not surprised that the appel- late court would not rein in the USDA’s action of estab- lishing and utilizing hand- picked committees to assist it in crafting public policy outside the public’s view,” said Bill Bullard, R-CALF CEO. R-CALF has litigated the case for nearly three years, but it is over and R-CALF is now focusing on the USDA’s new RFID rulemaking effort. USDA has submitted a proposed mandatory RFID rule to the White House Office of Management and Budget, he said. Fish and Game gains ground on crop depredation in south-central Idaho By BRAD CARLSON Capital Press Idaho Department of Fish and Game staff- ers say crop destruction by elk, as reflected in depre- dation claim spending, has dropped substantially in the south-central region. Claims paid to landown- ers in the region last sum- mer totaled about $215,000, the lowest in six years, compared to $543,000 in the summer of 2020, said Terry Thompson, a regional spokesman for the depart- ment. Claims totaled 11 last summer, down from 16. Managers aim to build on the success by honing tech- niques developed in the past few years. John Guthrie, regional habitat biologist and former longtime landowner-sports- man coordinator, led a field study of depredation-re- duction tactics in 2018 and 2019. “We have been imple- menting these in a manage- ment sense,” he said. “We are starting to see success.” Recently, more elk stayed out of fields where Fish and Game used a tall, temporary version of electric fencing. They also stayed away or left in response to propane cannons or shotgun shells that fire a noisy, firecrack- er-like projectile. Radio col- lar data help managers track movement. Guthrie said the study proved the electric fencing effective at creating “more of a psychological barrier for elk” but was not immedi- ately embraced by landown- ers. The approach has gained acceptance in the last two years among landowners. The electric fence is installed on top of typi- cal rangeland pasture fence posts. Polyvinyl chloride tubes, equipped with electri- fied wire, are then slid over the top of fence posts, mak- ing them 2 to 3 feet taller. He said the PVC is quick and easy to install and remove. “The lift has really been by private landowners being willing to accept and engage in those tools,” Guthrie said. Mike McDonald, regional wildlife manager in Twin Falls, said about 40% of the region’s dam- age claims involve elk get- ting into corn. The region is a major corn producer, and the depredation claims can be expensive. “One issue we continue to wrestle with is elk in standing corn,” he said. Guthrie said the number of corn-related claims has stayed about steady in the region since 2017, but loca- tions have varied as land- owners and wildlife man- agers reduce depredation in one area, and then see new pressure in another. Crop depredation by elk is more common south of Interstate 84 and the Snake River, he said. “Those new depreda- tions are probably occurring because we have slightly growing elk populations in those areas, but I would ven- ture to say they are as much or more based on changes in ag practices” like growing more corn, Guthrie said. Aside from deterrence, hazing and other non-lethal methods, the department can lethally remove the ani- mals using public depreda- tion hunts and landowner kill permits. Guthrie said the Fish and Game Commission has been proactive in adjusting pub- lic hunting seasons and tag allocations to the region’s elk population where it is higher than the landscape can support. Thompson said that in the Pioneer and Smoky-Ben- nett zones, which encom- pass several big-game man- agement units, more tags were issued for antler- less elk in 2019-20, result- ing in elk populations fall- ing to within management targets.