Sep 18, 2008Cherry Board Sets Final Free and Restricted Percentages
The Cherry Industry Administrative Board (CIAB), the national marketing order for red tart cherries, has recommended that the “free” and “restricted” portions of the 2008 crop be set at 73 percent and 27 percent, respectively.
Free tonnage can be marketed without reservation. Restricted production is that portion of the crop that must be either retained in inventory or marketed only in designated markets.
The board met in Lehi, Utah, Sept. 12 to calculate and recommend the final free and restricted percentages. The secretary of agriculture makes the final decision. Preliminary numbers were determined in June, based on crop estimates at the time.
The tart cherry market order operates to manage supply in both long- and short-crop years. This year’s crop was 210 million pounds – relatively small.
A portion of the crop is to be used to expand markets for the industry. These “market growth factor” cherries may be marketed without reservation just like the “free” tonnage, according to CIAB executive director Perry Hedin. For this year, the market growth factor is 18 million pounds, so the effective “free” percentage is 82 percent.
The CIAB also considered such factors as the average annual volume of sales of tart cherry products, the carry-in of product into the current year and the desirable carry-out of product for the following season.
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