NEWS & INFORMATION

CONTENTS:

I was recently cleaning out some old files and ran across a letter I wrote in 1992 congratulating Bud Klein on the sale of his company to ConAgra. Looking back, I often think of a saying I have constantly viewed on National Geographic: "Always wonder."

We have seen some dramatic changes in this industry, and I'll bet it's not over yet. I imagine some of our old friends were saying the same thing 30 years ago. We'll probably look back on these changes later in our lives and marvel at how we got through it all -- but we will.

There has been a lot of negative sentiment with regard to the industry in general, and California in particular. I personally am more upbeat than most, considering our lack of production and the movement to distant lands of varieties that were once the domain of California. When I reflect on the past, I recall when the 70 day Light Red Kidney was developed. Now, we hardly raise any for commercial use, and the production is mostly east of the Sierras. Blackeyes in Texas, Dark Red Kidneys in Minnesota/Wisconsin, Garbanzos in North Dakota, Nebraska, and Canada. Should I go on?

We do, however, have an advantage here in California that most do not; a long growing season with near perfect weather, and our ability to document every substance applied on acreage under production going back umpteen years. That one factor -- traceability -- is important for California's future. Witness the documents necessary to simply make shipments to canners and the written guarantees they require.

Moving to the lighter side. When Las Vegas was first selected as the site for the 2002 U.S. Dry Bean Convention, I wondered if the committee had been smoking some of that funny stuff -- Las Vegas in July? Did not seem like the ideal summer location to me. Well, from now on I will refrain from questioning the committee's choices -- particularly Francis Giudici. Las Vegas was one of the most awesome conventions I've ever attended. Great spot, great food, great entertainment, spectacular rooms and facilities -- I can't say enough good things -- and well attended.

My sincere thanks to those of you who have again perpetuated the Tracy Bean Festival. It has been a long hard road to hoe and those that have spent their valuable time need to be congratulated!

I look forward to seeing you all at the Post Harvest Bean Bash in November at the Wine and Roses in Lodi. And I hope the harvest has treated you well!

A belated but heartfelt congratulations to Don Cameron, who was honored by CBSA members earlier this year with the 2001 K.P. Kincade Memorial Award.

Cameron retired this September after 43 years at Cal-Bean & Grain Co-op in Pixley. He began as a grower member, and joined their Board of Directors in 1961. He served as President of the Co-op from 1962 to 1971. In 1973, Cameron became General Manager of Cal Bean and served in this capacity until his retirement. He also served on the California Dry Bean Advisory Board for many, many years.

CBSA Past President Dave Mendonca presented the award to Cameron at the Spring meeting of the California Dry Bean Advisory Board.

The K.P. Kincade Memorial Award is presented annually to recognize an individual who has made a substantial contribution to the dry bean industry, either during the previous year or through a lifetime of achievement.

K.P. KINCADE AWARD RECIPIENTS
2001 Don Cameron, Cal-Bean & Grain Co-op
2000 Bill Bolster, Kelley Bean Company
1999 Frank Gomes, Valley Seed Growers
1998 Jim Melban, CA Dry Bean Advisory Board
1997 John Thoming, Thoming Farms
1996 Bill McCormack, Trinidad Bean & Elevator
1995 Ken Kirsten, Klein-Berger Company
1993 Ken Kroeker, Western Trading Company
1992 Francis Giudici, L.A. Hearne Co.
1991 Dard Hunter, Trinidad Bean & Elevator Co.
1990 Mike Brown, Chico Bean Growers
1989 Steve Haskell, Sutter Basin Growers Co-op
1988 Larry Teixeira, Rhodes Bean & Supply Co-op

Earlier this year, the CBSA office was contacted by Senator Mike Machado (D-Linden). Machado had an urgent request -- he needed beans to include in gift packs that were being sent to Cuba. CBSA members Jody Manzer, Barbara Kascht and Ken Kirsten of Stockton District Kidney Bean Growers and Tom Stine of Tarke Warehouse answered the challenge.

CBSA staff assembled the gift packs which included several varieties of dry beans, rice, wheat, cotton, and dried milk. Following are excerpted press reports:

Stockton bean growers look to Cuba
Stockton Record
Stockton growers provided the kidney, lima and garbanzo beans carried on a recent trade mission to Cuba, where they were served to officials who expressed interest in discussing imports.

That could be a boon to local farmers, who face low commodity prices as well as shrunken demand, especially since the bankruptcy of Tri Valley Growers two years ago eliminated a major bean processor.

"That hurt," said Jerry Munson, manager of the California Dry Bean Advisory Board.
Kidney beans are a particularly good crop for California farmers, he added.

"We'll be glad to send some of our kidneys over to Cuba," Munson said.

A farming cooperative, the Stockton District Kidney Bean Growers provided the dark red and light red kidney beans, garbanzo and lima beans at the request of state Sen. Michael Machado, that among other California farm goods were carried to Cuba by U.S. Sen. Barbara Boxer.

"At one point, Cuba was one of the biggest markets we had for California light red kidneys," said Ken Kirsten, cooperative manager.

San Joaquin County dry-bean growers, who in 1999 led all California counties in the value of their harvest at $12.8 million, would welcome the chance to trade again with Cuba. It would require lifting of the U.S. embargo on most trade with the Caribbean nation, Kirsten said.

"It's all in the hands of the politicians right now," Kirsten said. "People in agriculture don't really have much to say about it."

Boxer, Castro try Bean Detente
Oakland Tribune
The latest weapon in the arsenal of American politicians who want warmer relations with Cuba: the humble baked bean.

U.S. Senator Barbara Boxer came to Cuba with a delegation packed with Californians who brought California-grown beans -- and then ate them at a dinner with Fidel Castro that lasted until 3a.m.

The California Democrat pronounced her plate of beans "wonderful" and said it was a symbol of the benefits that can be gained when Americans and Cubans cooperate.

"There are certain things that pull people together, including food," said Boxer, who criticized the 40-year old U.S. trade embargo against the communist island.

The 24-member delegation included Bill Mattos, president of the California Poultry Federation. It also included British actress Julia Ormond, who Boxer said spoke with Castro at dinner about the possibility of producing a documentary on ties between Americans and Cubans. Grateful Dead drummer Mickey Hart, also in the delegation, talked about a project that would bring musicians from the two countries together.
 

As reported by Steve Haskell, Sutter Basin Growers Co-op
The National Dry Bean Council continues its efforts to expand Foreign Promotion and Food Aid programs. NDBC also, through its very capable and professional staff in Washington, D.C., constantly monitors legislation that would affect our industry. Following are a few highlights of NDBC activities:

JAPANESE REVERSE TRADE TEAM. Eight members of a Japanese trade team recently concluded visits to Nebraska and California. The delegation included 3 bean paste manufacturers, 4 importers, and NDBC's Deputy Representative in Japan, Motoishiro Kitazawa. While in California, the team got a first hand look at the growing, harvesting, storing and shipping of Baby Limas. They also enjoyed evenings with industry members and growers and concluded the tour with a trip to Pac Bell Park to watch the Giants knock off Houston.

The California leg of the trip was co-sponsored by the Baby Lima Council of the California Dry Bean Advisory Board.

It's always difficult to quantify the results of a trade team mission; however, there is no doubt the hospitality shown by our industry was a public relations success. A special thanks to John Thoming, Cindy Sanders, David Giampaloi, Jerry Munson, Tom Stine and of course, Jim Melban for his tireless efforts in promoting dry beans.

KENYA/SOUTH AFRICA. This past August the USA Rice Federation and NDBC teamed up to send Cindy Brown, Amy Philpott and Peggy Sheehan on a 7-day visit to prospective food aid clients in Kenya and Southern Africa. The purpose of the trip was to meet with government officials and food aid sponsors to promote the use of dry beans in food aid programs. Besides meeting with various groups, a short list of their activities included:

sFilming a NDBC documentary
sReviewing the Vitacow project (a portable method of cooking large volumes of beans)
sDevelopment of a rice bean co-pack for schools and emergency operations
sLearning firsthand the extent of the drought conditions in southern Africa.

If you would like a complete copy of their report, please give me or Jane a call.

COST OF PRODUCTION INSURANCE. At the NDBC summer meeting in Las Vegas, the Board appointed a Cost of Production (COP) Insurance Committee, headed by Bob Green, to work with the firm "Agrilogic" to develop a COP program. Bob subsequently requested each member organization to submit the name of one individual to Agrilogic for the purpose of acting as an "industry expert" in the COP insurance process. Our thanks to Larry Teixeira for his willingness to take on this responsibility.

OTHER NBDC ACTIVITIES as related by Amy Philpott, NDBC

sThrough the efforts of Johanna Stobbs, the NDBC representative in France, US blackeyes and black beans will be on the menu at Euro Disney's park restaurant for the first time. Disney's Parisian chefs will create special dishes with the intention of attracting park visitors and food service buyers alike.

sFive members of the US dry bean industry attended the Mexican harvest tour in the Zacatecas region.

sPaul Lambert and Bob Green will be representing NDBC at the 2003 Gulf Trade Show in Dubai. This is our second year of participation at the show and according to past participants, a significant number of potential buyers are present.

sAt the 6th Annual Mexico Congress, US suppliers will have a chance to meet with potential Central American buyers. For the first time in the Congress' history, Central American importers will join their Mexican counterparts in attending the meetings.

sBrazil and Peru are requiring pest risk analysis (PRA) on various US ag products, including dry beans. NDBC is working with industry representatives and USDA officials to comply with the request while at the same time monitoring and evaluating the use of the information.

sNDBC delegates attended the 2002 SIAL trade show in Paris, France, October 20-24. Although the show was in Paris, buyers from all over the world were in attendance. After the show, NDBC, USA Rice Federation, and the US Dry Pea and Lentil Council sponsored a trade seminar during which US delegates addressed potential buyers.

One closing thought, there has been legitimate concern expressed within the CBSA membership over the cost of our membership in the NDBC. I believe the question is not whether NDBC is worth the dues, but rather can we continue to afford it? In my biased opinion, we should find a way. No where else can we receive a four to one return on our foreign promotion dollar. The cost of the Japanese reverse trade team alone exceeds the amount of our annual dues. The total NDBC allocation for Japanese promotion this year is $105,000 and we're basically speaking of just a single California variety. And how many of our colleagues have gained first hand knowledge of global markets through programs sponsored by NDBC?

I agree it's hard to argue the economics of our industry, and one has to be solicitous about the direction it's heading. However, given all the foreign competition in the market today, my hope is that we find a way to maintain our support of the National Dry Bean Council.

CBSA members who wish to comment on or discuss NDBC activities, please call our NDBC representative Steve Haskell at (530/735-6295).

A bond measure proposing construction of a high speed rail system through the Central Valley will be decided by state voters on the November 2004 ballot.
If the measure (SB1865, Costa) is approved, planning and construction would begin on the first leg of a 700-mile long high speed rail system. Proposed San Joaquin Valley stops include Fresno, Visalia, Bakersfield, and Merced. These communities would be connected to San Francisco and Los Angeles by electric trains traveling at sustained speeds of at least 200 mph.

Extension into the Sacramento Valley would occur during a second period of construction connecting Merced to Sacramento. A final decision on alignments and station stops in the Valley would await completion of additional studies and environmental review. While the bond measure speculates limited service by 2008, completion of the entire system would not occur until 2020.

The measure would request $9.95 billion in general obligation bonds to begin construction in accordance with the High Speed Rail Final Business Plan presented to Governor Davis in June of 2000. For more info: www.cahighspeedrail.ca.gov

COSTLY WORKERS COMP PLAN TO BECOME LAW JAN. 1, 2003
Workers' compensation legislation signed into law early this year is certain to increase costs by $3.5 billion, according to industry estimates. AB749 (Calderon) will increase maximum workers' compensation benefits for temporarily and permanently disabled workers by 20 percent beginning January 1, 2003 -- from $490 to $620 per week. But it doesn't stop there. The benefits will increase to $728 weekly in 2004 and $840 per week in 2005. Annual increases thereafter are linked to cost of living adjustments in the state's average weekly wage.

COST CONTROLS
AB 749 includes a number of features aimed at tackling the high cost of unnecessary medical care:
sGives employers with a designated health care organization (HCO) control over the injured employee's treatment for 90-180 days depending on whether or not group health insurance is offered and the employer offers to pay more than 50% of the cost. Employers not using an HCO are limited to 30 days of control.
sPartially eliminates after January 1, 2003, the presumption that the treating physician's evaluation of disabilities and needed treatment is correct (a presumption that had encouraged doctor shopping by applicants and their attorneys). The presumption remains if the physician has been pre-designated and treated the employee before the injury.
sRepeals the so-call "baseball arbitration" process, which led to the most costly disability awards rather then narrowing down competing assessments of the degree to which a worker was impaired.
sBroadens the insurer's ability to disclose medical information to employers.

CONTINUING CONCERNS
A number of shortcomings in the bill will be of continuing concern to employers:
sThe bill fails to address the other major system cost driver in addition to medical treatment costs-permanent partial disability (PPD) awards. There has been an explosive growth in the number of PPD claims at the lower end of the disability ratings, as well as some inflationary creep in the amount of the percentages of disability rating.
sThere is no restriction on who may be the treating physician, nor is there a restriction on chiropractors.
sThe penalty structure remains largely unchanged however the bill broadens a claimant's ability to collect attorney's fees in penalty cases involving delayed benefit payments.

COST DRIVERS
Also of concern to employers are features of the bill that could push workers' compensation costs even higher:
sThe cost of living adjustments for life pensions and permanent total disability claims is uncapped and retroactive for open claims.
sVocational rehabilitation still is mandatory, although the bill allows the employee to opt for a one-time cash grant of $10,000 for self-directed vocational rehabilitation.

SAVINGS DEPEND ON DETAILS
AB749 includes a number of requirements that could lead to savings, depending on how they are implemented. These provisions relate to the use of generic drugs, how employees obtain prescription drugs, the pharmaceutical fee schedule and outpatient surgery facility fee schedule.

OTHER PROVISIONS
sThe bill expands the definition of first aid to allow employers to pay directly for a wider range of medical costs outside the workers' compensation system.
sIt also offers grants of up to $2,500, beginning in 2004 to help employers sustain modified duty programs for injured employees who return to work. The program, however, is subject to the Legislature approving the funds.