Being for the benefit of Mr. Hass

One of the lesser known elements of Title X of the farm bill passed by the House was Section 209. The provision requires the Agriculture Secretary to issue regulations requiring all Hass avocados sold in the U.S. to meet a minimum quality requirement.



Here is how the text reads in HR 2419

SEC. 209. MATURITY REQUIREMENTS FOR HASS AVOCADOS

`(a) Minimum Percentage of Dry Matter- Not later than 180 days after the date of the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the Secretary of Agriculture shall issue final regulations to require that all Hass avocados sold to consumers in the United States meet the minimum maturity standard of not less than 20.8 percent dry matter.
`(b) Exceptions- Subsection (a) and the regulations issued pursuant to such subsection shall not apply to Hass avocados--
`(1) intended for consumption by charitable institutions;
`(2) intended for distribution by relief agencies;
`(3) intended for commercial processing into products; or
`(4) that the Secretary determines should not be subject to such subsection or such regulations.
`(c) Use of Existing Inspectors- The Secretary shall, to the greatest extent practicable, use inspectors that inspect avocados for compliance with section 8e of the Agricultural Adjustment Act (7 U.S.C. 608e-1), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to conduct inspections under this section.
`(d) Civil Penalties- The Secretary may require any person who violates this section or the regulations issued pursuant to this section to--
`(1) forfeit to the United States a sum equal to the value of the commodity at the time of violation, which forfeiture shall be recoverable in a civil suit bought in the name of the United States; or
`(2) on conviction, be fined not less than $50 or more than $5,000 for each violation.
`(e) Diversion- In the case of any Hass avocados that do not meet the requirements of this section or the regulations issued pursuant to this section, the Secretary may--
`(1) provide for the reinspection of the Hass avocados; or
`(2) authorized the diversion, export, or repacking of the Hass avocados.
`(f) Fees- The Secretary may prescribe and collect fees to cover the costs of providing for the inspection of Hass avocados under this section. All fees and penalties collected shall be credited to the accounts that incur such costs and shall remain available until expended without fiscal year limitation.
`(g) Authorization of Appropriations- There are authorized to be appropriated such sums as may be necessary to carry out this section.'.



Some observers have pointed out this type of provision has never been done for produce in a farm bill or any federal legislation before. The House farm bill tells all marketers of avocados - outside the context of a marketing order - what the acceptable maturity level of the fruit will be. Imagine if Congress set the minimum sugar level for grapes or apple?


The genesis for the provision came from the California Avocado Commission, or more accurately, California avocado growers.

But one California avocado marketer I talked to today said there is some reassessment of the provision, perhaps because the legislative language has change through the the lawmaking process. Right now the industry may be trying to determine if they should continue to support the provision, the handler said. Part of that possible change of heart relates to the transfer of authority from the state to the federal government. While the law may have been seen as a shortcut to a federal marketing order, growers in California would lose control over the process.


At 23% dry matter standards, both Chile and Mexican hass marketers have higher minimum maturity levels than required by this provision. There doesn't appear to be great need for the provision; one Chilean source told me Chile's hass fruit have never failed to meet California minimum maturity levels in the past, even though 80% of Chile's volume comes into California.


In any case, California hass marketers are happily distracted by hot market conditions. The f.o.b. has risen $4-5 in the last five days and was $2 higher today, the marketer said. A market that wants 20 million pounds a week is only getting 15 million to 16 million pounds. California will have hass through the end of August by volume is on the downhill slide. Chilean volume has been delayed because exporters have held off shipping waiting for better maturity and Mexico is in a supply gap. In the latest week, Mexico accounted for 5 million pounds, with Chile 2 million pounds and California with about 8 million pounds.