marketing orders

Although Florida’s green-skin avocado industry may be a niche compared to Hass avocado operations in California, green-skin avocados are beloved by their growers and a staple for the communities that grew up eating them.

With more than 60 varieties and peak maturity ranging from May to December, the Florida avocado industry uses harvest timing and technology to ensure only mature avocados reached consumers.

The industry works with the U.S. Department of Agriculture (USDA) to operate a federal marketing order, which helps the producers expand marketing opportunities and ensures quality fruit for consumers.  Industry members make up the committee that locally administers the marketing order.  Marketing order committees are able to establish industry standards, develop markets, gather data, and conduct research - all tailored to meet the individual needs of a particular commodity and size of its industry.

Why does someone choose to serve on a USDA board?  To find out, we asked several members of one important board that very question.

The Peanut Standards Board, which is overseen by USDA’s Agricultural Marketing Service (AMS), was created by Congress to establish quality and handling standards for peanuts sold in the marketplace. Peanuts are an important agricultural commodity. According to the American Peanut Council, U.S. peanut farmers produce around 1.9 million tons of peanuts annually on approximately 1.44 million acres. In 2014 American peanut production generated an estimated $1.1 billion in revenue (NASS).   Peanut quality affects the entire industry and the Peanut Standards Board is comprised of a mix of producers and industry representatives covering the entire supply chain. This means peanut farmers, manufacturers, shellers, importers, and their representatives are all welcome to serve.

USDA’s Food Waste Challenge is underway and federal marketing orders for fruits and vegetables continue to help out in the food donation effort. Under these industry self-help programs that are overseen by the Agricultural Marketing Service (AMS), groups decide minimum quality standards that benefit the entire industry. When products do not meet a marketing order’s quality standards but are still edible, they can be diverted to secondary markets to minimize food waste while increasing producer returns.

When this occurs, businesses have a couple of options: send the food to the processed market, donate the food to charities and food banks, or process the food into livestock feed. Nearly half of the active fruit and vegetable marketing orders also include comparable import regulations to ensure foreign products meet the same quality standards as those produced domestically.

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.

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 strength of America’s farmers and ranchers is undeniable. I knew that strength firsthand growing up in a rural community that depended on agriculture. And I see it in so many ways as I meet folks from across the country in my role at USDA—in their work ethic, in their dedication to their crops and animals, and in their commitment to feed their communities and the world. They are all #AgStrong—an old truth in a new format, celebrating the common agricultural roots among farmer and rancher, family business and rural community.

Through these commonalities, many family-owned farms find strength in numbers, in pooling resources and expertise to grow and sustain their family businesses.  For many of them, ag boards—with oversight from USDA’s Agricultural Marketing Service (AMS)—are vital to their success, increasing business opportunities and mapping out a long-term future for their industry.

As the saying goes, “Two heads are better than one.” This certainly holds true when it comes to the critical partnership between public and private sectors. Several times a year the Commodity Roundtable brings together leaders from many of USDA’s national research and promotion programs and marketing orders, which play a vital role in helping our nation maintain one of the strongest agricultural sectors in the world.

At the most recent Commodity Roundtable meeting in Memphis, TN, I was impressed by the open dialog and the leaders’ deep commitment to supporting America’s farmers and ranchers. Members discussed best practices and strategic plans that will help their respective industries succeed and grow, thanks in part to a commitment to diverse leadership, viewpoints and opinions.