Judge hits California Raisin Marketing Board
Judge Raymond Cadei's decision was hailed by lawyers representing a group of dissident growers and packers who have been trying to dismantle the board for several years.
They challenged the California Department of Food and Agriculture, claiming the board did not meet the appropriate requirements when it formed 15 years ago.
The Fresno-based board is responsible for promoting California raisins through advertising and marketing campaigns. But some farmers have complained about paying for marketing that they don't agree with.
"This is a huge win," said Brian Leighton, an attorney representing the dissident growers and packers.
This is the second attack the raisin industry has faced in recent weeks. The US Supreme Court is hearing a case involving a maverick Fresno County raisin grower who is fighting the federal rules for regulating the flow of raisins into the market.
In Cadei's 54-page proposed decision, the judge found that the raisin industry failed to fulfil a key state requirement when forming the board 15 years ago: proving that the industry was in crisis.
"The record shows that there was no evidence of the kind of severe adverse economic conditions the Marketing Act was intended to address," Cadei wrote in his April 15 decision.
Officials with the raisin marketing board said they intend to explore all their legal options to keep the organization operating.
"We are still business as usual," said Gary Schulz, president of the marketing board. "Our doors are still open and we are still marketing and advertising and working events. We are not letting any moss grow under our feet."
Cadei's ruling comes as a blow to central San Joaquin Valley raisin growers who fear that without the organization's promotional help, they will lose their visibility in the marketplace.
"I really believe that we are going to lose sales," said Mitch Sangha, a Sanger-area raisin grower. "There are so many other commodities out there that we have to compete with. And growers can't do it on their own. That is what brought us together to form the marketing board."
The work of the California Raisin Marketing Board is funded through grower assessments that over the years have generated millions of dollars. Its 2012-13 budget is $7 million and will be used to promote raisins in magazine articles, at cooking contests and through the use of social media.
But the marketing board also has generated critics, including growers who have said the organization violates their freedom of speech by requiring them to pay for activities with which they disagree.
"Growers of the Selma Pete and Fiesta are forced to pay for ads that say the Thompson makes the best raisins and that hurts the marketing of their own products," said attorney Howard A. Sagaser, who represents Boghosian Raisin Packing Co., a plaintiff in the case. "That is like having a Ford but having to pay for advertising that says Chevy makes the best American cars."
Source:fresnobee.com
