USDA: Transcription of QA session from tomato web seminar

03/18/2013 03:45:00 PM
Tom Karst

The reference prices that were calculated are FOB from the selling agent. The Agreement takes into account the growing costs and the costs to get it to the border, and everything from the border is in addition to the reference price.

There is a question on here, about do packaging companies need to comply with the Agreement?

I am not sure I understand the question completely; let me see if I can get at what I think is the right answer. The Suspension Agreement governs the first sale in the U.S., so the first purchaser, the first unaffiliated with sale, the first receiver, which is the sale that has to be made above the reference price. If the tomatoes are sold to a re-packer who, at or above the minimum price, that is where the Agreement governs that first sale. I am not exactly sure what the question meant, but I think hopefully that would answer the question. That it is the sale to first un-affiliated in the U.S., that is the sale that is subject to the terms of the Agreement.

There is a question does the price at the border include the cost of warehousing at the border?

The reference price requires that any charges incurred at the selling agent are added in. If they are warehoused for two weeks at the selling agent before they are shipped, that would be in addition to the minimum reference price.

There is a question why are cherry tomatoes classified a specialty tomato?

They are not bulk-pack; they are not in standard boxes. You know rounds and romas that can go in the 25 lb boxes, those are non specialty categories. So, we have always looked at grapes and cherries differently and now in order to meet the changes in the market we have come up with this specialty category.

There is a question here, what about RPC weights.

The box weight chart, those are net weights. So the RPC weights, the weights of the boxes, would be deducted. We know when we go and look and do verification, and we look at the prices and the paperwork, it is the weight of the product that is factored in. So the example that I used for the 5x5 sets (or the 6x6 maybe it was), the packaging type would not matter because the prices on the box weight chart are net prices. When we weigh the tomatoes we are sure to take the packaging into account.

I have a question, why is the adapted environment equal to shade house if a green house without the hydroponic methods of growing would also fall into the category of adapted environment?


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