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Marketing Orders and Agreements

Building better capabilities to meet food safety requirements
Government Views

Competition in the U.S. produce industry leads to innovations and efficiencies meant to make one company more successful than another. As growers and handlers of fruits, vegetables, nuts, and other specialty products, there are federal marketing orders and marketing agreements available to help the entire industry compete more effectively in the marketplace.

Overcoming Barriers and Obstacles
Food marketers are susceptible to a range of economic factors that impact the marketability and profitability of their products. Regional and commodity segments work aggressively to resolve barriers to global markets and address food safety issues that continually evolve and present challenges to a new generation of industry members.

Sales barriers can be resolved by companies working together and contributing resources to a common goal. Federal marketing orders and marketing agreements provide a framework for growers and handlers to come together to discuss issues of mutual concern and develop strategies to fix them.

Elanor Starmer, administrator of the Agricultural Marketing Service, part of the U.S. Department of Agriculture (USDA), agrees and believes these agreements “enable growers and handlers to work together to improve the competitive profile of their own industry and in turn, can help all companies selling a particular product succeed.”

How Marketing Orders & Agreements Work
Commodity groups choosing to operate under a marketing order or agreement do so with a board or committee that generally consists of growers and handlers who represent the industry’s best interests. The boards and committees meet periodically to develop strategies for resolving industry situations. Once the board or committee agrees on a path to move forward, it provides a “justification” or plan to the USDA for consideration.

Just as the USDA may implement industry-requested regulation after considering public input and research, producers decide whether to implement a marketing order that determines how shippers, brokers, processors, and other handlers place their product into commerce. Handlers or suppliers, however, decide whether to enter into a marketing agreement themselves. Any marketing order or agreement applies to the handling of the specific product after it leaves the production facility, as it is placed in commercial channels.

Each program is customized to meet the needs of a specific industry. Handling regulations may have provisions that require grading and inspection services to meet minimum standards, or standardized packaging and labeling of containers to boost transportation efficiencies and consumer awareness of a product.

Efforts can be undertaken to conduct production research projects, or create market research and product promotion activities. In addition, the committee or board can, with the input of industry members, increase or decrease the amount of product allowed into commercial channels during periods of exceedingly high or low volume.

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