Business people like to say that there are only two sure things in life: death and taxes. We'd like to add one more to that: discord in the citrus industry. That's a sure thing if ever we came across one and when Jim McFadzean went to Pomona Valley on Saturday for a special membership meeting of of the Citrus Growers Association, he didn't expect anything different.
Here's what he found:
Jim McFadzean Reporting
Even before today's special meeting could get underway, the committee of management was locked in debate for two hours trying to address the return of some growers back into the ranks of this fractious organization.
Irving Eccleston, Chairman, CGA
"Growers good morning, we had a little delay there - a big one and they were asking me - they said we were upstairs in some AC room and the people are here in the sun. I told them that up there we're hotter than out here. The basis of our decision this morning was to deal with legal counsel; there are members who I would say who have strayed away a little bit and they have decided this morning that they wanted to come to this meeting."
The forty or so growers, who Eccleston referred to, turned down the invitation to re-enter the fold, after the CGA said they would have to pay outstanding membership fees. So troubled is the industry, a special prayer for divine intervention was offered.
Denzil Jenkins, Board Member, CGA
"We pray that you amidst and you will guide us. You will put down every force of evil that might be present in this meeting."
From the looks of things, they are going to need that prayer. The CPBL, the grower's processor, is strapped for cash and is in need of 5 million dollars to pay its bills. The banks have balked at a request for bailout, saying it's concerned about the volatile relations which exist between the company's shareholders and the functioning of the Board of Directors. This would be one of 8 items the Board would seek to discuss with its membership, including resolutions taken at its 42nd AGM.
Jim McFadzean
"Fruit Prices, continues to top the agenda here at the CGA. This most contentious of issues continue to dominate and generate serious concern amongst its membership"
A membership whose patience seems to be wearing thin. That growing impatience was evident at this meeting.
Tony Zabaneh, CGA Board Member
"It's a fiduciary duty, it's a duty that the processor has to the growers that they should be seeking the best possible price and we come here meeting after meeting hearing the same rubbish that they have already pre-sold the year before. This is unacceptable. At a time when the pound solids are $1.80 and if we look over the past 12 months when the lowest price when we started was $1.35 and we see what growers are getting where even in Brazil, we are talking growers getting $8.40 - $9.00 a box in Brazil and in Florida from $9.00 up to $12.00 a box. This is US I am talking and here we are with $5.50 or $6.00. Something is wrong."
Jim McFadzean
"The man who remains at the center of this prickly price issue, the fired CEO of CPBL, Dr. Henry Canton, became the target today of much ridicule."
Canton remains at the helm of the CPBL despite a court order upholding his dismissal.
Tony Zabaneh, CGA Board Member
"Mr. Canton is not working with this industry anymore from the 17th of December."
Canton the CGA claims has locked growers into prices that are substantially lower than World market prices.
Irving Eccleston, Chairman, CGA
"The resolution the committee and management want to propose is that we want you the growers to speak out, whereas the world market prices for FOCJ has ranged from $1.43 per pound solids to $1.80 per pound solids is the 2010-2011 crop year noting that CPBL has not provided all information related to the implementation of the price formula agreement as recommended in the arbitration report, be it resolved that growers are calling on the board and management of CPBL to ensure that growers get no less that $13.00 per box for their oranges."
Tony Zabaneh, CGA Board Member
"The person who is responsible for selling our product - which is one person - the CEO of the processor of CPBL, I don't know if he is asleep or what he is doing or what is happening but something is wrong but this supposed to be the super CEO - the super salesman."
While Canton was not at the meeting to defend himself, one grower came to his defense.
Frank Redmond, Citrus Grower
"I acknowledge the responsibility of the committee of management to get the best possible prices for the fruit. On the 18th of January CPBL submitted a revised submission to grapefruit to you all which will give growers another $0.92 a box for grapefruit. My information from CPBL is that CGA ignored this and the financial controller went to CGA to explain it. Now if you had a problem with the figures I'll accept that but CGA has always accepted more money for growers subject to review. In other words CGA's primary purpose is to get the maximum for growers, so I would like to know why the committee of management did not accept this revised submission for grapefruit."
Irving Eccleston, Chairman, CGA
"The thing here is that we have seen no real evidence when we point out that on the world market the price let's say for grapefruit $2,400.00 we have seen no real evidence that the factory is saying 'well I got $2,200.00 or I got $2,100.00' they are saying that 'I could only get $1,750.00, I only can get $1,800.00' that's the facts that are before us."
Frank Redmond, Citrus Grower
"The policy and principle must always be, accept more money whilst under purchase or else you go through it because it would have been more money in growers' pockets, that's my point."
Tony Zabaneh, CGA Board Member
"Mr. Chairman, are you aware of the statement that Mr. Redmond made that Mr. Canton recently came back. Has he informed you that he has now sold product for $1.89 a pound?"
Irving Eccleston, Chairman, CGA
"No sir."
Tony Zabaneh, CGA Board Member
"Now this is it growers, here is it - this is total disrespect, Mr. Redmond here knows about that but the chairman and the committee members don't know about that. This is total disrespect and this is what is happening here."
Anthony Chanona, Citrus Grower
"We have to agree what we are prepared to accept and what we are not prepared to accept and the price we are prepared to pay for our birthright and our sovereignty as citrus growers owning 51% of this industry."
'There are many unresolved issues, like the future of Dr. Henry Canton. The membership will leave here today with resolutions in hand, but with no assurances yet, that they will be getting prices similar to or closer to the current world market prices.' Reporting from the Pomona Valley, for Seven News, I'm Jim McFadzean."
We note that the complaint about prices has been chronic and in the past Henry Canton has put forth his position that Eugene Zabaneh in particular is knowingly misrepresenting what is a fair and judiciously won price formula…
