California handlers describe marketing issues for organic kiwifruit

O fruit production and marketing is a fast-growing niche that is beginning to utilize traditional channels to reach an expanding market segment. As organic production grows and consumer preferences change, marketing practices will evolve. Many California commodities have established government-sponsored and producer-financed marketing programs that cover both organic and conventional production. California has federal and state marketing-order programs, commodity commissions and councils to assist in marketing agricultural products. A study of marketing issues associated with federal marketing orders for organic kiwifruit, almonds and winter pears surveyed all organic handlers for these crops (Carman et al. 2004). We report on the results for California organic kiwifruit. California kiwifruit producers are well organized to market their crop. They secured the California legislature’s approval of the California Kiwifruit Commission (CKC) in 1980 and voted to establish a federal marketing order for kiwifruit in October 1984. The CKC authorizes promotion and research activities, which are funded by an assessment on all shipments of California kiwifruit. The federal marketing order, administered by the Kiwifruit Administrative Committee (KAC), established mandatory minimum quality standards for grade, size and maturity that were first used for California kiwifruit during the 1987-1988 marketing year. These quality standards were extended to imports of fresh kiwifruit in 1990. Individual handlers pay mandatory inspection fees, and KAC activities are financed by an assessment on all shipments of California kiwifruit. Based on reported sales, California kiwifruit growers paid total assessments of approximately $524,500 in 2000-2001 and $433,200 in 2001-2002. The majority of these funds were used by the KAC for promotional activities.