Jun 26, 2006
Cherry Industry Administrative Board Sets Preliminary Free, Restricted Percentages

The Cherry Industry Administrative Board (CIAB), the national marketing order for red tart cherries, recommended that the free percentage, net of the Market Growth Factor and accounting for appropriate economic adjustments, be set at 67 percent and the restricted percentage be set at 33 percent.

The decision was made at CIAB’s annual marketing policy meeting June 22 in Grand Rapids, Mich., following USDA’s estimate of the crop size that morning. Percentages are calculated using the USDA’s estimate of harvest. The USDA released its official crop estimate projecting a national crop of 256 million pounds of red tart cherries.

The board is charged with recommending to Secretary of Agriculture Mike Johanns the percentage of the crop that should be considered free and that which should be restricted under the terms of the marketing order. Preliminary percentages are determined at that time and final percentages are determined in September.

The board considers numerous factors concerning the supply of and demand for red tart cherry products for the coming season. The CIAB considers 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.

The board used the Optimum Supply Formula (OSF) as set forth in the order.

Free tonnage is production of the current year that can be marketed by handlers of tart cherries without any limitations. Restricted tonnage is that which must either be retained by handlers in inventory or diverted by handlers into other market opportunities, such as exports or fresh sales.

After the red tart cherry harvest, the CIAB will reconvene to recommend the final percentages based on actual production. The meeting to determine the final percentages will be held Sept. 8 in Traverse City, Mich.




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