California Raisin Marketing Board Ruled to be of Dubious Legal Origins
Fresno, CA
By ANUK Staff
4.29.13
A Sacramento County Superior Court judge has ruled that the Fresno-based California Raisin Marketing Board was not created legally.
Lawyers representing a group of growers and packers who have been trying to dismantle the board for years challenged the California Department of Food and Agriculture, claiming the board did not meet the appropriate requirements when it formed 15 years ago, according to the Fresno Bee.
Judge Raymond Cadei's decision was applauded by the group. "This is a huge win," said Brian Leighton, an attorney representing the dissident growers and packers.
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.
Cadei found that the raisin industry failed to fulfill 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.
The board must also repay assessments to the plaintiffs in the case, including Lion Raisins. The amount could reach into the millions, Leighton said.
Officials with the raisin marketing board said they intend to explore all their legal options to keep the organization operating. The judge gave both sides 10 business days to file post-trial briefs before he renders his final ruling.
"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."
Some central San Joaquin growers fear that a dissolution of the board would result in a lack of 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 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.
It 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.
Others have complained that the marketing board focuses on just one variety of raisin grape at the expense of others. For decades, most of the raisins made in the U.S. have been the Thompson Seedless grape. But farmers have developed other varieties, such as the Selma Pete and the Fiesta.
"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."
California Raisin Marketing Board Update
