Producer Profitability

Priority Actions:

Profitability | Economic Development | Marketing | Trade | Invasive Species Control | Consolidation | Education  

Trade:

Conclusion: Need to find ways to address trade imbalances to ensure that all foreign produce meets American food safety and environmental standards so South Florida producers can operate on a "level playing field"

Suggested Actions: Here are several ways in which this might be done, using South Florida as a test case:

Consider steps to ensure the American public receives products that meet all U.S. food safety requirements, labor laws, environmental regulations and restrictions on chemical use.

Consider requiring that all produce brought into U.S. meet the same requirements as those imposed on American growers — or relax restrictions on American growers. 

Consider banning products that do not meet these requirements. 

As a first step, consider developing a prototype program with a stamp, certificate or ‘green label' for products that meet all U.S. laws. The stamp, certificate or label would tell consumers that: "This product was grown at extra expense to meet all U.S. food safety requirements, labor laws, environmental regulations and restrictions on chemical use." Also, develop a second stamp, certificate or label for products produced using best management practices or grown with some environmental benefit. The labels would be attached to all consumer packaging to provide an environmental OK or prove compliance with environmental stewardship/BMP practices. Like a ... ‘Fresh from Florida,' or ‘grown with the environment in mind' label. 

In theory, theses marks would add value by encouraging consumers to choose these products over other similarly priced products that are not labeled, thus boosting sales at the retail level. 

This strategy should place particular emphasis on food safety. U.S. laws are designed to ensure food safety. Consumers also are concerned with and respond to food safety concerns. 

This strategy also would place market forces on foreign growers to meet U.S. laws, and could do more to bring them into compliance with these laws than any other actions that might be taken through trade legislation to encourage compliance. Nevertheless ...

"Ensure that future trade agreements include provisions to standardize key agricultural inputs, such as ag chemical regulations. [Also] allow labor to travel freely across borders in free trade zones."

Give consumers clear choices between local, domestic and foreign grown products. Consider product labeling to indicate point of origin for all foreign products. Provide South growers with option of labeling to promote the products of a specific county or region. Consider point-of-sale displays to clearly indicate all products that are grown in the U.S. and South Florida. Also, consider point-of-sale displays to provide consumers with information about growing practices in each region where products for sale originate. 

No ag leaders or producers who commented on this paper disagreed with country-of-origin labeling. In fact, Rick Roth suggested that "new trade agreements should be conditional on implementation of country of origin labeling."

Ferdinand F. Wirth, Ph.D., however, disagrees. See his comments — and a rebuttal — under Endnote. Dr. Wirth says: "The better approach (discussed under ... ‘Education'[below]) is to clearly identify local produce and develop point-of-sale materials to encourage consumers to buy local food products when they are available. The government can also produce buyers guides for stores and restaurants listing all local growers who have the capability to sell directly to the stores. The growers can also be provided with guides listing the buyers for all stores and restaurants which have indicated that they are willing and able to buy locally. This type of program was developed jointly by the states of Delaware, Maryland, and Virginia to promote sales of local food products from the Delmarva Peninsula. The program, known as the ‘Shore-to-Store' program was funded by the USDA, under the Federal-State Marketing Improvement Program (FSMIP)."

Art Kirstein also weighed in on this subject, saying: "We live in a global economy in which the U.S. must lead. I think that we must, for political and economic reasons, continue to support trade treaties that attempt to eliminate all trade barriers. The NAFTA treaty keeps coming up throughout [this] report. The reality is that the U.S. has had a net positive agriculture trade balance against Mexico since the inception of the treaty. In a time when we have few net positive balances because of trade, this is important. It is also the reality that our ag exports to Mexico are primarily in coarse grains, soybeans, and cotton that are not produce in Florida and our imports are approximately 43% in fresh and processed fruit and vegetables. Since NAFTA, the single biggest import item from Mexico has been fresh vegetables, represented in 1998 with $1.47 billion. Before we attempt to put up barriers such as ‘a level playing field,' child labor and ‘country of origin' legislation, let's address our advantages in production, distribution, financing, proximity to market, etc. We must remember that some of Mexico's advantages are a result of monetary devaluations and need for hard currency to meet their international debt commitments. And let's not forget the corn farmer in Nebraska who depends on this export market."

Allyn L. Childress, AICP, a staff member for the South Florida Ecosystem Working Group, says: "The paper targets the Task Force with developing a list of actions to be implemented in regards to international trade. Is this a valid action of the Task Force? It is not clear whether Florida would be a ‘test case' and serve as an example for other regions. Would South Florida agricultural products be the focus, or would it be for national products?"

Good questions. Suggestions?

Recommendation:

Who: The South Florida Ecosystem Restoration Task Force (SFERTF), with support from DOACS, OTTED and USDA.
What: Need to initiate actions at the state and federal levels. SFERTF, with support from DOACS, OTTED and USDA, should develop a list of state actions and federal actions that can be implemented, within the context of current laws and consistent with international trade agreements, to ensure that South Florida producers can operate on a "level playing field." 

Identified as a possible task for assistance from the Governor's Commission for the Everglades