marketing order and agreement division

Production research is critical for the success of plants for a number of reasons. The resulting data helps growers adjust to the needs of the plant environment and develop best practices to efficiently use water and energy, mitigate pest damage, minimize diseases, and improve productivity. The California Walnut Board, which funds production research across an entire spectrum of walnut needs, has used production research to increase the number of delicious, flavorful walnuts available on our tables.

The California Walnut Board operates under the authority of a federal marketing order, which is overseen by the USDA’s Agricultural Marketing Service (AMS) via its Marketing Order and Agreement Division (MOAD).  Federal marketing orders and agreements are requested for and funded by various groups in the U.S. produce industry to help growers and handlers within a geographic region to overcome marketing barriers and increase awareness of the commodity.

Each industry has its own recipe for success. For the ripe olive industry, the recipe for success includes many ingredients. This includes a commitment to consistency, marketing, and research. These factors help the nearly 1,000 family farms from California supply 95 percent of the ripe olives grown in the U.S.

The USDA’s Agricultural Marketing Service (AMS) provides the ripe olive industry many of the ingredients for its success. One of the ways we do this is by overseeing the federal marketing order for olives grown in California, which is administered locally by the California Olive Committee. Federal marketing orders and agreements are requested by various groups in the U.S. produce industry to help growers and handlers within a geographic region to overcome marketing barriers and increase awareness of the commodity. Industry groups get together to decide the tools needed to support the commercial and financial success of the businesses in the industry.

Success is often achieved when you have access to a number of tools and know how and when to use them. The USDA’s Agricultural Marketing Service (AMS) is equipping produce businesses with the proper tools for success through our Marketing Order and Agreement Division (MOAD). As discussed before, this division administers fruit and vegetable marketing orders and agreements designed to support the industry’s financial and commercial success with the help of tools such as funding production and market research.

As self-help programs requested for and completely funded by the industry, marketing orders and agreements can address issues ranging from combating invasive species to identifying key product attributes based on consumer preferences. Our MOAD employees oversee industry boards and committees as they partner with local universities and organizations to overcome these types of challenges.

Successful businesses all seem to have a common bond – a commitment to quality, consistency, and integrity. During a recent trip with my colleagues, I saw firsthand the many ways that companies are turning to my agency – the USDA’s Agricultural Marketing Service (AMS) – to provide these factors to pave their path to success.

Our first stop was the packinghouse at West Coast Tomato LLC in Palmetto, Fla. Thanks to meeting USDA audit requirements, the high-volume packer can confidently sell its tomatoes to restaurants, grocery stores, and re-packing companies. The fascinating thing about West Coast Tomato LLC is that the facility is nearly completely automated. Almost all of the tomatoes are sized and sorted mechanically. “Our use of technology has significantly decreased our re-packing,” says plant director John Darling. “As a result, we’re better equipped to meet buyer requirements.”

Every successful business must have a solid plan to successfully take it from the initial startup phase all the way through its push to expand its operations after the business matures. The same can be said for an industry looking to reach new heights in its lifecycle. A concerted emphasis must be placed on strengthening research, product development, and marketing efforts. To help out on this front, the USDA’s Agricultural Marketing Service (AMS) oversees 28 fruit and vegetable marketing order boards and committees. These entities develop regulations that moderate the flow of high quality produce, benefitting growers, handlers, and consumers. These groups also create research, marketing, and promotional campaigns that help expand the reach of the industry’s products. 

Through the AMS Marketing Order and Agreement Division (MOAD), industries approach the agency to establish a way to overcome marketing barriers. These efforts help growers and handlers within a geographic area increase their sales. The issues the committees focus on vary. For example, the Pistachio Marketing Order established reporting and Aflatoxin testing requirements on inshell and shelled pistachios. Pistachios produced in California, Arizona, and New Mexico are now required to be certified as meeting certain minimum quality requirements that are established by the Administrative Committee for Pistachios (ACP).

The fruit and vegetable industry is an integral part of our country. Besides helping increase access to healthy foods, the industry generates $40 billion in sales and empowers communities by creating jobs and stimulating economies. While it’s great to notice the strength of the produce industry, it is important to remember that it is the result of careful research and planning. I had the chance to watch the industry rekindle this energy as I visited with leaders from each of our marketing order boards and committees during a management conference last week.

There were some great takeaways from the meeting. We heard an update about the Food Safety Modernization Act (FSMA) from Food and Drug Administration (FDA) Deputy Commissioner Michael Taylor. He ensured us that FDA is looking to collaborate with partners like USDA to help the industry comply with the FSMA regulations when they become final. We also heard from our Commodity Procurement Program Director Dave Tuckwiller, who encouraged everyone to take advantage of new opportunities to sell food to USDA. Thanks to new National School Lunch standards, my agency, the Agricultural Marketing Service (AMS) purchased 20 percent more fruits and veggies in 2013 than in the previous year.