USDA scuttles blueberry assessment increase

Capital Press

The USDA has called off a controversial assessment fee hike on blueberry production.

On Feb. 19, the agency announced the withdrawal of a proposed rule that would have increased assessment fees from $12 per ton of blueberries to $24 per ton.

The fee increase was supposed to fund increased promotions and advertising by the U.S. Highbush Blueberry Council.

“I’m very surprised,” said Mark Villata, the council’s executive director. “I thought the rationale behind the assessment increase was very sound.”

If the increase had been approved, the council would have seen its annual revenues rise from about $2.4 million to $4.8 million, based on 2008 production statistics.

Additional advertising is needed to boost consumption of the crop, which is expected to face dramatically expanding supplies in coming years, Villata said.

Due to new acreage being planted, global blueberry production may grow from about 600 million pounds to about 1.5 billion pounds by 2015, according to council estimates.

North American blueberry production may increase from about 400 million pounds to 900 million pounds in that same time. To keep up with burgeoning supplies, consumption in the U.S. would need to double from 22 ounces to 44 ounces per person.

The council expected to review alternative promotional plans at its quarterly meeting in late February, Villata said.

Villata said he received no information about the USDA’s decision-making process. Marketing and economic arguments in favor of the hike seemed strong, he said.

Growers were evenly split in their written comments on the proposal. Many supported the council’s views, while others questioned the wisdom of raising fees on producers at a time of low blueberry prices. Some opponents claimed USHBC marketing efforts were ineffective, or said they preferred to invest in their own promotions.

If future production is expected to surge, then the council can expect more incoming funds even if the assessment level stayed the same, according to some comments.

Doubling fees would actually quadruple the council’s revenues, wrote farmer David Beach.

“That is excessive,” he said. “None of us are getting that kind of increase in value for our farms’ production.”