Page 14 - 040820-Market-Bulletin
P. 14
PAGE 14 FARMERS AND CONSUMERS MARKET BULLETIN – 404-656-3722 – agr.georgia.gov WEDNESDAY, APRIL 8, 2020
GeorGia Growers: Food safety, facility sanitation are always driving concerns
Continued From Page 1
uct going to go? Is retail going to be able to ing extra measures to protect workers and en- of all cotton grown in the U.S. was sold over-
absorb that much product, so we don’t get sure workspaces are sanitary. seas.
into an oversupply?” Hall asked. “It’s a little “We are asking sales, our peers, and our Liu added lower oil prices will likely in-
too early to know exactly how that is going control committees what we can do to be crease competition from synthetic fiber, mak-
to shape out, but I know retail and others are safer and efficient. What can we do to make ing it even more challenging to sell cotton.
doing their best to accommodate the extra sure the customers feel safer to get a good, With the world economy practically shut
product that is going to be on the market as safe product to the table? Those are our daily down, Liu said no one knows how long the
we go through this.” questions and conversations,” Crosby said. downturn will last.
Jerome Crosby, chairman of the Geor- Sandlin added that the processors “are do- “China agreed to purchase at least $40 bil-
gia Blueberry Commission and a blueberry ing a really good job of making sure inspec- lion worth of agricultural products for each of
farmer in Willacoochee, agreed with Hall tors are on-site, and the supply is safe, and the next two years. However, no details have
that labor shortages are a big concern with Blueberries (GDA file photo) we’re hearing reports of plants taking extra been released so far about how China will be
blueberry growers. He believes H-2A workers “The poultry industry takes this respon- measures to make sure their workers are pro- able to fulfill this large purchase of agricul-
being fast-tracked at U.S. consulates may not sibility seriously. Poultry processors and egg tected. Inside the plant, it could probably be tural products,” Liu said. “The outbreak of the
be enough. producers will continue to do all that they the cleanest place you would want to be in be- coronavirus further increased the uncertainty
“The question remains, will the ones al- can to produce the food that is vital during cause of the federal government’s sanitation in trade.”
ready in the system be enough to get through this recovery period, while implementing requirements.” Bart Davis, chairman of the Georgia Cot-
and fulfill the contracts? I believe the answer science-based measures to protect employ- ton Commission, said he has heard that some
to that is no,” Crosby said. “At some point in ees working in our facilities,” Giles said in a farmers are growing more corn. Still others
time, our consulates are going to have to start statement. are taking a long view that the cotton markets
releasing people who are first-time applicants. Giles said a challenge for food producers is will recover. Davis admits there is a lot of un-
That’s just going to have to be done.” shifting production to grocery stores and less certainty, and it’s not clear when the market
For Vidalia onion growers, the biggest to food services like restaurants and schools. will improve or how long it will take for pric-
concern is having enough workers to harvest He said the demand for chicken is strong, and es to move up again.
and package the popular sweet onion. Ari- his industry is working to meet that demand. “I don’t know what is going to happen. I
es Haygood, chairman of the Vidalia Onion “I think there are a lot of adjustments be- mean, just as they had the trade agreement
Commission, said growers are trying to be ing made in how poultry is being delivered,” signed, cotton was starting to ease up a little.
optimistic as the April 16 pack date moves he said. “The bottom line is the volume of It was looking to move up, then this virus hit,
closer. production in our industry is steady and is not Red Angus cattle (GDA file photo) and the bottom fell out,” Davis said. “This me
“I can tell you, I just don’t know,” Haygood disrupted.”
responding to questions about having enough Giles added that chicken processors always Peanuts
workers. “I don’t think the packing date will had federal government safety requirements For row crops like peanuts, labor is not as
be moved back. It’s just whoever can find peo- to follow and that consumers should continue big an issue as for fruit and vegetable grow-
ple to harvest can, and whoever can’t, won’t. to have confidence in the poultry industry’s ers. But like beef, peanuts are in high demand,
There’s just a lot of uncertainty right now.” commitment to food safety. and that will keep farmers busy during this
“Typically, on third shift each day the growing season.
entire plant is sanitized, so the industry has Don Koehler, executive director for the
some built-in advantages in that many of the Georgia Peanut Commission, said farmers
practices they already employ are effective in aren’t seeing prices follow the recent increase
the general cleanliness and sanitation of the in demand but are hoping the market remains
facility itself,” Giles said. strong through the fall. An open cotton boll (GDA file photo)
“We kind of hope we will see an increase
Beef in that price because contracts for the 2020 speculating, but I feel like the cotton market
Beef is in high demand across the state, crop are not good right now, they’re just aw- and all the markets will go up and go back
while retailers struggle to keep shelves ful,” he said. “I hope I see some strengthen- booming again.”
stocked. Dale Sandlin, executive vice presi- ing in price, and the farmers will need to be Greg Mims, who grows cotton, soybeans
dent of the Georgia Cattlemen’s Association, patient.” and other crops in Seminole County, said he is
Banana peppers (GDA file photo)
attributed shortages to supply chain and ware- Conditions surrounding the COVID-19 planting corn but will keep his cotton acreage
Another uncertainty for Vidalia onion house issues. emergency change almost week to week, and the same as planned before the coronavirus
growers is what shape the market will be in “It’s more a function of demand and allo- that uncertainty makes this unusual event outbreak.
once they start shipping their onions to stores. cation than supply. For example, if the store even more difficult. Koehler said the only sure “It hasn’t really changed anything as far as
Haygood said the binge-buying that grocery is only ordering 100 cases a day usually, now thing is getting out in the field. our planting intentions or anything because
stores experienced in mid-March has mud- they are ordering 500 cases a day,” he said. “There is so much that is unknown right we still have stock in the gin, and we have to
dled the outlook for this year. “The warehouses that we have can’t manage now. This virus is causing unknowns for ev- support the gin,” Mims said. “We’re hoping
“For Vidalia, the question right now is, that type of increase. With that said, what we erybody, so much that farmers are basically this thing gets cleared up before it completely
will the demand still be there when we start?” are doing and what we are seeing is retailers flying by the seat of their pants right now,” he kills the economy, and maybe the price will
Concerning food safety, Haygood said the shifting their products around so there will said. “I think that’s where we are now, and the hopefully come up.”
growers are working to protect workers and be beef in the store, but it may not be the cut picture will improve a little bit as we get into Farmers do have an option to put their
ensure sanitation in packing and processing you’re used to buying.” April. There’s some planting going on right cotton through the federal Loan Deficiency
areas. Sandlin said the biggest sellers have been now, and we need to get into full swing in ear- Payment program, taking the crop out of the
“Thankfully, we already do a lot of that ground beef, rib eye and chuck. ly April.” market and selling it when prices improve.
to assure food safety, so we’re not having to He said beef producers across the state The LDP rate is set by the difference between
reinvent the wheel,” Haygood said. He said have plenty of product and that it will take Cotton the base price of 52 cents and the Adjusted
the industry is paying close attention to CDC time for the system to right itself following There were signs that cotton futures pric- World Price, which the U.S. Department of
recommendations to sanitize areas to combat the early days of the outbreak when panic es were going up after the United States and Agriculture Farm Service Agency announces
the virus. buying occurred. China signed the Phase 1 trade deal in Jan- weekly. At the end of March, the AWP was at
“We do have the cattle. We have good pro- uary. However, the price per pound dropped 49.95 cents per pound.
Poultry cessing facilities,” he said. “I’ve spoken with to 60 cents in February and was hovering “If a producer is willing to take the risk
Mike Giles, president of the Georgia Poul- one of the largest processors here in the state, around 50 cents by the end of last week. That and feels that cotton prices are going to im-
try Federation, said the Coronavirus outbreak and they are keeping things going, six days a price drop is the lowest since the 2008 Great prove, then they could take the LDP and
has not affected chicken production signifi- week, two shifts a day.” Recession. market the cotton later,” Liu said. “Looking
cantly. The industry averages 31 million Sandlin and the other commodity leaders Yangxuan Liu, UGA professor and cotton ahead, producers need to be aware of the con-
pounds of chicken and 7 million table eggs also wanted to assure the public that food economist based in Tifton, said the economic tinuous risk of downside price weakness and
produced each day. The goal is to remain de- from Georgia farms and cattle ranches is safe shutdown will hurt cotton farmers who de- volatile cotton prices. It might take a while
pendable and ensure the safety of employees. and that the growers and processors are tak- pend heavily on exports. In 2019, 83 percent before we see a recovery of cotton prices.”
FARMERS & CONSUMERS MARKET BULLETIN (ISSN 0889-5619) Gary W. Black, Commissioner Subscriptions to the Farmers and Consumers Market Bulletin are $10 per
is published biweekly by the Georgia Department of Agriculture MARKET BULLETIN STAFF year. To start or renew a subscription, go to our website to pay by Visa or
19 Martin Luther King Jr. Drive Julie McPeake, Chief Communication Officer MasterCard, or send a check payable to the Georgia Department of Agriculture
along with your name, complete mailing address and phone number to PO Box
Atlanta, GA 30334-4250 Amy H. Carter, Editor 742510 Atlanta, GA 30374-2510. Designate “Market Bulletin” in the “for” line. To
404-656-3722 • Fax 404-463-4389 Jay Jones, Associate Editor determine if an existing subscription is due for renewal, look for the expiration
Office hours 8 a.m. to 4:30 p.m. Monday – Friday Lee Lancaster, Contributing Writer date on the mailing address label on page 1. Postmaster: Send address
Stacy Jeffrey, Business Manager changes to 19 Martin Luther King Jr. Drive, Atlanta, 30334.
The Department does not discriminate on the basis of sex, race, color, national origin, age or disability in the admission or access to, or treatment in, its employment policy, programs or activities. The
Department’s Administration Division coordinates compliance with the non-discrimination requirements contained in Section 35.107 of the Department of Justice Regulations. Information concerning the
provisions of the Americans with Disabilities Act, and the rights provided thereunder, are available from this division. If you require special assistance in utilizing our services, please contact us.