E7VESTIGATION C? THE ETTECTS  OT  FCCD  STANDARDS

                  ON PESTICIDE USE


Environmental Protection Agency  Contract 68-01-2602



                    Prepared  by

                  Martin Brown
                  Richard .Garcia
                  Cathlsen Magovan
                  Alan Miller
                  Michael Moran
                  David Pelzer
                  Joel Swartz
                  Robert van  den Bosch-


               Principal Investigator

                Robert van den Bosch


                    Consultants

                  Richard Buxbaua
                  Richard Garcia
                  Richard Norgaard
                        For
               Environmental Protection  Agency
                Office of Pesticide Programs
              Charles D. Reese, Project  Officer
              Carl ton J. Kempter, Project Officer

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                  EPA Review Notice
This report has been reviewed by the Office of Pesticide
Programs of the Environmental Protection Agency and
approved for publication.  Approval does not signify that
the contents necessarily reflect the views and policies of
the Environmental Protection Agency or does mention of trade
names or commercial products constitute endorsement or recom-
mendation for use.

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                                ABSTRACT


     Three commodities, fresh market organes, processing tomatoes and cling
peaches were assessed concerning the role of pest related (largely insect)
quality standards and their relationship to pesticide usage.

     In each of the commodities cosmetic quality standards appear to have
a significant effect on pesticide usage, both in regard to the amount of
chemicals used and the utilization of specific pesticides and in regard
to the general approach to pest management.  In one commodity (processing
tomatoes) insect contamination of produce is also a factor.   In general,
extremely strict quality standards seem to mitigate against the adoption*
of integrated pest management (IPM) or serve to prevent integrated pest
management from being fully utilized.  Even where IPM programs are effec-
tive under prevailing standards, growers are reluctant to adopt such pro-
grams because they are forced by processor, marketer and consumer pressures
to strive for virtual "zero" pest levels.  This is a major reason why avail-
able IPM programs which maintain crop quality and yield while reducing
pesticide usage up to 50 percent are hardly used by the growers of the
three crops assessed in this study.  This is one of the most unfortunate
aspects of the prevailing produce standard situation, because IPM programs
demonstrably produce efficient pest control at reduced cost and pesticide
usage.

     There appears to be a clear necessity, then, for appropriate adminis-
trative or legislative action which would permit the public agencies whose
mandate it is to protect the quality of the environment to intervene agres-
sively, if necessary, on behalf of those sectors adversely affected by
environmental degradation resulting from inadequacies in the economic and
administrative systems currently determining pest related quality standards
for produce.

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                           TABLE OF CONTENTS     .                      -

                                              •               ...     Page

Acknowledgements                      /                                   1

Summary.  .         ....''                               .              11
''...';-  Pesticide Use .;...,: ;'::'"  •:' \.V •;.-•'.•.-,./;'--'-V  '•••"..; •.'•';•'.-.       iv

    .  Pesticide Use Regulation                      .                      vi

      Qualltr 5taTi'i^'p^!?     .."'•.                                vil

      Consumer Attitudes                         .                          z

 Introduction                                   •        "                  xi

 Chapter 1.   Quality.Standards for Fresh and Processed
             Produce in California                          :               1

    '_•         Produce Quality Standards                      .     .          1

      '•''.' Quality Standards for Fresh Produce                           2
                                            *              ".'"•..
             Marketing Orders                           •                  6
                              - '                  •                       *
             Marketing Cooperatives                   .      •               6

             Private Marketing Organizations  •                             6

             Retail Standards                                              7

             Cosmetic Quality Standards                                   10

             Quality Standards for Processed Foods           .             11

           .       Processed-Foods—State"Standards                        11

         :       , Processed 7oods«~Federal Standards       .              .li

            . Contractual Standards                                        21

             Consumer Attitudes                                           23

             Quality Standards and Supply Control                         25

             Cosmetic Quality Standards  Summary                  .        27

             Quality Standards—Footnotes                                 28

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                                                                          Page

 Chapter 2.  Pesticide Use and Regulation in California..                   33

             Pesticide Use and Regulation In California                   33

             Fest Management Technology "             '                     35

             Sources-of Pest-Management Information                -      39

           •- Regulation of Pesticide   Use  in California                  43

           ." Enforcement        .••'•_.  .           '    . '                 44

'•'•".:  •'...'-•'••'• • . Licensing Procedures '•''."."'•. ;  ../' ':_  •;•- ..•• '••'.'.". '' v ' '...  "'   ^6  -

 - -    .'  ..'• .  State Action   . : •    -  .-  - "... •''':/-   . '     - '•'-  '  '.  '  '  ; : :'.'    48

             The Impact of Pesticide  Use in. California                    49

             Pesticide Use and Regulation in California—Footnotes        54"

 Chapter 3. . An la-Depth Case Study of Pesticide Use for
             Cosmetic Quality Standards                                   59

       . .     Citrus.      .     '     .  '               '     •                   .

        '.      . -I»  Supply and Demand-             •'                    ..  59  .
                    Citrus Acreage  and Production             ".     •      59
                    The Fresh Market.                 .      '               .59

             'The Problem, of Over-Production                           "i  60

               II.  Cooperatives and  Marketing Orders                     65

              •      Marketing Orders  907-908        .                      67

              IH^  Quality Standards                                 .    72

        .      17.  Pest Management              . .  '                      79

                7i  The Citrus Thrips                                     86
 -  '•;'..• ;:. .  ':•'    History      -   . " •••   .'..'.'',  ; ;.. '  •'   :   .  '•         86

                    Current Status                                         88

                    Alternatives and  Obstacles                    •        97

             References                                           .        101

 Chapter 4.  Cosmetic Quality Standards and Pesticide Usage in
             Processing Tomatoes and  Cling Peaches                        108

             Processing Tomatoes                      .                    108
                Tomato Production                                         108

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                                                                        Page

               Use     Allocation of Processing Tomatoes           .     110

               Quality Standards for Processing Tomatoes                III

               Pest Management for Processing Tomatoes                  113

            ding Peaches            ..'....                          115

               Acreage and Production                 .                  116

               The Cling Peach Marketing Orders          .     .          116

               Surplus Elimination   .                           .   '     116

               Quality Provisions               .           •             118

               Pest Management in Cling Peaches                         123 *

               Cosmetic Quality and Pesticide Use in Cling Peaches      125

            Cosmetic Quality Standards and Pesticide Usage in
            Processing Tomatoes and Cling Peaches—Footnotes            128

Appendices   -                  '         .

     Table 1                                            :                ^'L

     Table 2      •                 .                     .                144

     Table 3        .   :                                              "*  145

     Table 4                                    .         .             :  143

     Table 5                   .    ."       -                           .  149.

     Table 6         '                                                   150

     Table 7 .                                                           151

  .   Table_8    '..    "; '-';,••.'•'../;'...''.•.   '     •  • '.'    .;•.   '  ' ;. ;     152

     Table 9          >     :        "                  r                  153 .

     Figure 1                                       .                    154

     Figure 2                   .                                        155

     Figure 3                                    .                        156

     Figure 4                                                           157

    . Figure 5                                                            158

     Figure 6          .                '                   .               159

     Figure 7                                                            160

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                            ACKNOWLEDGEMENTS







     We wish to thank the many individuals in county, state and federal




government and in the private sector who agreed to give us their view-




points on this important subject.  Specifically we wish to thank Charles E.




Kennett, Leopoldo E. Caltagirone, Christine M. Merritt and Andrew P.




Gutierrez for reviewing draft sections of the report, Mrs. Joanne Fox




for her patience and skill in typing this large document, and, especially,




.Mrs. Mary Jane Clarkin for maintaining some sort of managerial control




over things during the course of our study.
                                     -i-

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                                   ii






                                 SUMMARY






     Three commodities, fresh market oranges, processing tomatoes and cling




peaches were assessed concerning the role of pest related (largely insect)




quality standards and their relationship to pesticide usage.



     In each of the commodities cosmetic quality standards appear to have



a significant effect on pesticide usage, both in regard to the amount of




chemicals used and the utilization of specific pesticides and in regard



to the general approach to pest management.  In one commodity (processing




tomatoes) insect contamination of produce is also a factor.   In general,



extremely strict quality standards seem to mitigate against the adoption



of integrated pest management (IPM) or serve to prevent integrated pest



management from being fully utilized.  Even where IPM programs are effective



under prevailing standards, growers are reluctant to adopt such programs



because they are forced by processor, marketer and consumer pressures to



strive for virtual "zero" pest levels.  This is a major reason why avail-



able IPM programs which maintain crop quality and yield while reducing



pesticide usage up to 50 percent   are hardly used by the growers of the




three' crops assessed in this study.  This is one of the most unfortunate




aspects of the prevailing produce standard situation, because IPM programs



demonstrably produce efficient pest.control at reduced cost and pesticide



usage.




     While federal and state regulations and consumer preference appear to



play some role in the determination of cosmetic standards, more direct



economic motivations on the part of growers and processors appear to be



of greater importance.  Other researchers have commented on  the welfare



loss due to artifically maintained prices for agricultural resources due

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                                   lii






to the functioning of marketing orders and other forms of quality and quanity




control.  In this report, it is pointed out that further negative social




Impacts due to pesticide use are also attributable to these mechanisms.




Our investigation reveals that while modifications in consumer attitudes




and clarification of ambiguous federal and state regulations are desirable,




it is unlikely that changes in these areas alone will have a significant



effect on produce quality standards and current pesticide use practices.




In order for this to happen there must be direct incentives aimed at




modifying pesticide use patterns,. and a concurrent careful examination of the




entire system of production and distribution of specialty crops as it



relates to pesticide overuse.  This latter undertaking will be particularly



difficult because the current system of allocation of resources for




specialty crops was not designed to provide a means of economic expression



on behalf of the stability of the agro-ecosystem, the health and welfare



of farmworkers, the public health, or even the long-term economic well-.




being of individual growers.  The various types of legislation that were




passed into law in the depths of the Great Depression were designed to .




provide the failing small farmer with a modicum of short-term security.  It'




is not surprising, then,, that the current system results in negative impacts




in areas the importance of which have been recognized only in the very



recent past.  There appears to be a clear necessity, then, for appropriate




administrative or legislative action which would permit the public agencies




whose mandate it is to protect the quality of the environment to intervene



aggressively, if necessary, on behalf of those sectors adversely affected




by environmental degradation resulting from inadequacies in the economic



and administrative systems currently determing pest related quality standards



for produce.

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                                   iv






                          •".• RECOMMENDATIONS



     The following recommendations       ::..-.     .....     are




suggested as areas in which the EPA may wish to sponsor further work on




produce quality standards and pesticide use.  While some of the recommenda-




tions may appear to be unrelated to produce quality standards or pesticide .




use, they are designed to have an impact in these areas through the inter- '




connections described in-this report.



Pesticide Use            .                                       .




     If more and better information were available to growers it is probable



that pesticide use decisions in regard to produce quality standards would



be more rational from a personal as well as a social standpoint.  This does




not mitigate the fact, however, that under the most ideal circumstances in



regard to information availability, produce quality standards still would




remain as an obstacle to the full implementation of integrated pest manage-




ment.  Nevertheless, a need exists for the establishment, of more realistic




and reliable economic threshold levels for pest damage and pest contamination



levels in regard to produce quality, and an efficient mechanism for the




communication of this information to the grower.  Little research has been




done in the area of the relationship between pest damage and cullage due to




cosmetic defects,and more is needed.  In addition experimentally derived and




verified pest damage assessment systems should be made universally available



so that growers are able to make pest management decisions on the. basis of



actual pest population levels rather than prophylactic or pre-programmed




treatment.  These and other goals would be effectively approached if the



quality of pest management advisory personnel were improved.  Wayne Willey




has evaluated various economic incentives that could be implemented for

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'tins purpose.  Another approach would be to increase the licensing require-

ments for pest control advisors.  We would suggest the following m-fnTmma  .

requirements:                   .     ..   .

     Pest control advisors should not be allowed to be directly or indirectly

employed by agricultural chemical companies to function in a sales capacity;

that is, the income of pest control advisors should not be related to the
            <•     -   ."".-"•" •*"•'-  '  '  '     * •   *.-'"•'   .       ". '  '   '     ' . •  '
amount of pesticides applied.  For the same reason* pest control advisors

should not be allowed to solicit pesticide application services, or for

that matter, be directly involved in sales of biological controls or other

non-chemical controls, or to be associated-with companies vending particular

pest control technologies.  To allow such associations is analogous to

allowing physicians to have a financial interest in pharmaceutical companies;

it does not guarantee that the best mode of therapy will be followed.

Alternatively,it is envisaged that contract advisement provided that it is

based on a set predetermined fee could involve producers of various types of

control agents, in a way that is analogous to the the functioning of a

human HMO.       '.'•'.-                            "

     In addition it would be highly desirable for pest control advisors to

receive university level education in integrated pest management, plant and

animal systems ecology, pesticide toxicology, environmental health, natural

resource and agricultural economics, and law and institutions in regard to

pesticide regulations, food quality standards, marketing orders, cooperatives,.

grower-processor contracts, worker health and safety and environmental impact.

The basis for such an interdisciplinary curriculum is available at the

University of California, and probably elsewhere, but there has been no

attempt to design a specific Pest Control Advisor programsof this nature,

though the current pest management curricula do contain some of, the features

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                                   vi






indicated here.  It would also be desirable for pest control advisors to




undergo field internships, preferably under the supervision of experienced




integrated pest management consultants.  An internship program of this




nature supported by a three year grant from the Noyes Foundation, is




currently being conducted by the University of California, Berkeley.




Reaction by both students and professional pest management participants




has been extremely positive.  Postgraduate education and periodic retesting




of pest control advisors would also be desirable.  Finally, the Pest Control




Advisor licensing examination should be designed to test the ability of




the candidate to deal with complex pest control situations rather than the




individual's ability to respond to simple technical items.




     The idea of regional pest control districts which would provide inte-




grated pest management advice should also be explored.  Such districts




might be supported out of state or federal revenues, by a compulsory tax




or assessment on growers and/or other sectors of the agricultural system,




or by voluntary assessment among grower-members of special cooperatives




established for the purpose of pest management.




Pesticide Use Regulation




     More stringent pesticide use regulation could serve as an incentive




for efficient use of pest management technology and discourage the use of




pesticides for non-substantial pest damage.  One measure that might help in




this area would be to require that the Pest Control Advisor indicate the




reasons for recommending the use of a specific pesticide application.  The




report should ideally contain data of the past and present population levels




of the pest, the expected economic damage if treatment is delayed or




cancelled, the rationale for the specific material or technique recommended




and the alternative measures considered.  Such a requirement would tend to   ,

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                                   vii

       •m                  •                   .           •
discourage unjustifiable pesticide treatments and these reports could also,

serve as an important data base for the evaluation of pest, management

practices and the development of an improved, pest management strategy. In  •

this connection, it would be of great benefit if intensified and expanded

research on integrated pest management were undertaken by federal agencies,

the state agricultural experiment stations and perhaps agri-business itself.

     It seems reasonable that County Agricultural Commissioners should be

responsible for the administration of pesticide use regulations, however,

because of their natural tendency to identify with the interests of agri-

culture, it does not seem proper that they should administer worker health

and safety regulations.  More appropriate agencies might be the State

Departments of Public Health or the Federal Occupational Safety and Health
                                'the agricultural area it
Administration.  In addition,in/would seem advisable to give some type of

official recognition to farmworker representatives for the purpose of

detecting and reporting pesticide poisoning incidents and/or violations of

worker • safety regulations.  In those cases where farmworker unions are

recognized, union designated persons might assume this responsibility as

is the case with other groups which function under the provisions of OSHA.

Farmworkers are certainly in a better position to detect such incidents

and violations than the understaffed offices of the County Agricultural

Commissioners.               •               ...                     .  -  .

Quality Standards                 .

     A systematic study of quality standards for specialty crops is needed

to determine the specific degree of cosmetic content crop by.crop.  A

uniform system of quality standards should be developed and there should be

a consumer education campaign on the meaning of quality standards in fresh

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                                  viii






and processed produce.  Quality standards should be modified with regard to




maximizing the efficiency of pest management technology.  The standards




should be specified with more regard to end use, so that highly cosmetic




quality standards are not used unnecessarily in regard to produce that is




allocated to noncosmetic uses.  Improved systems of allocation of produce




to various grades could facilitate this.




     The Federal Food and Drug Administration regulations pertaining to




insect contamination should be clarified in regard to the source of the




insects, and processors should not be allowed to cite the FDA regulations




to justify specific cosmetic standards, for fresh produce used as an input




to the processing plant.  The whole matter of insect contamination levels




and the real hazard posed by minuscule insects or insect parts should be




brought under intense scrutiny, especially since there is reason to believe




that in many cases the hazards posed by insect control far outweigh those




posed by the insect contaminants.




     The role that cosmetic quality standards may play in facilitating




undue market power by growers, processors or-retailers should be investi-




gated in regard to possible anti-trust violations.  This is especially




relevant since the Capper-Volstead Act and the Marketing Order Act forbid




the use of marketing cooperative or marketing order mechanisms to obtain




undue market power.  Incentives to encourage the development of a greater




number of diverse marketing cooperatives and firms which could offer a




range of quality of produce to the market should be explored.  At present




most specialty crops are dominated by a single marketing organization which




may not be able to serve the diverse needs of all the growers in the industry.




In this connection, California is currently experimenting with a state operated

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                                   ix






direct marketing system for fresh produce.  Marketing order boards should




be modified so that representatives from a wider diversity of interest are




included.  Marketing order boards in California now must have some consumer




representatives and this is a step in the right direction.  Such repre-




sentation would help insure that quality standards are designed to fulfill




the needs of groups other than growers and processors.




     The potential for absorption of surplus produce through secondary




markets should be explored.  Potentials include allocation of produce that




doesn't meet the cosmetic quality standards of the primary market but is




otherwise fully wholesome and nutritious to such segregated and guaranteed




markets as federal school lunch programs or other food programs for families




below a certain income level.  Such programs should not damage the aggregate




demand for produce of high cosmetic quality since the bulk of this demand




comes from high income families.  Another variant of this approach is to




sell surplus produce from the processing sector on a field—run basis




directly to the consumer, at minimum state quality standards.  This has been




done on a limited basis in California since 1975 by the Consumer's Co-




operative of Northern California, and consumer response has been highly




favorable.  This latter approach,  of course, could result in a reduction




in demand for some high cosmetic quality produce.




     Tax shelter and subsidy programs which have resulted in false market




signals and raisallocation of agricultural resources should be examined and




modified.  Possible regional or state systems of agricultural resource




allocation which might result in more rational long-term planning in




agricultural production should be explored.

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Consumer Attitudes




     The determinants of consumer behavior in regard to the consumption



patterns of fresh and processed produce should be investigated.  Consumers




should be fully informed on the nature of insect contamination in fresh




and processed produce and on the use of pesticides in food production.



Consumers should be educated concerning the manifold consequences of



cosmetic food production.

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                                   xi
                              INTRODUCTION

          It shall be the object and duty of the State Agricultural
          Experiment Stations through the expenditure of the appro-
          priations hereinafter authorized to conduct original and
          other researches,  investigations, and experiments bearing
          directly on and contributing to the establishment and
          maintenance of a permanent and effective agricultural
          industry_of the United States, including researches basic
          to the problem of agriculture in its broadest aspects, and
          such investigations as have for their purpose the develop-
          ment and improvement of the rural home and rural life and
          the maximum contribution by agriculture to the welfare of
          the consumer, as may be deemed advisable, having due regard
          to the varying conditions and needs of the respective States.

                        —Hatch Act, 1887

     Agricultural research,  as defined by the Hatch Act, is based upon a

pluralistic ideal, taking the welfare of all sectors of society into account.

However, some persons question how well agricultural research, in reality,

has maintained the ideal of the Hatch Act.  Agricultural Economist Alex F.

McCalla has written,

          What has happened in the twentieth century is that the Land
          Grant establishment has redefined its mission to be primarily
          production agricultural efficiency rather than the much
          broader charge contained in the Hatch Act.  Thus, rather
          than perceiving the general public, particularly those that
          are "disadvantaged", as our clientele we have given special
          attention to production agriculture....
          While doing this we have identified very closely with our
          perceived clientele so that often, after a couple of generations,
          we begin to think like them, share their values, and come to
          perceive their sanction of our activities as necessary and
          desirable....
          Issues of environmental quality, consumer safety, nutrition,
          quality of rural life, and many others have arisen in part,
          in the public's mind, because of our single purposed dedication
          to production efficiency....It is time we focused our goals to
          serve our many publics, including, but not limited to,
          agribusiness.^

     In this report we have attempted to keep in mind the original intent

of the Hatch Act.  While pesticide use has had an undeniable positive effect

on the capability of production agriculture, pesticide use has also produced

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                                   xii






some negative externalities, externalities which often occur in subtle




and indirect ways and which impact on groups and individuals who may not




receive any direct benefit form this aspect of agricultural technology.




     The purpose of this report is to investigate the relationship between




cosmetic food quality standards and pesticide use, and to detect any elements




of the current system of laws, regulations and practices which result in




negative impacts to public health and environmetnal quality.  The relation-




ship between quality standards and pesticide use is not simple and direct.




It is conditioned by political, economic, legal, technical and ecological




factors that, together, constitute the environment in which-modern agri-




cultural production operates.  In this report we have attempted to describe




these relevant factors and their impact on the issues under consideration.




     .In Chapter 1.the origin, history and current nature of the relevant




quality standards is examined and the meaning of a "cosmetic quality




standard" is defined.




     In Chapter 2. pesticide use, regulation  and impact is examined,




especially in regard to California.  The alternative available approaches




to pest management are examined and the factors which influence pesticide




use decisions are described.




     A brief outline of the impact of pesticides on man and the environment




is also presented.




     In Chapter 3. the complex relationship between cosmetic quality




standards and pesticide use is closely examined in California oranges with




emphasis on fruit produced for the fresh market.




     Chapter 4 briefly treats of our investigation of produce quality




standards as they affect pesticide usage in processing tomatoes and cling




peaches.

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                                  xiii






     Sources of information for this report include the technical literature




in the fields of agricultural economics, pesticide and quality standard




law, applied entomology, pesticide toxicology, epidemiology and other




fields.  We were privileged to obtain information from a number of studies




in progress or not yet published.  In addition personal communications with




academic researchers; county, state and federal officials; individuals




associated with grower organizations, processing firms, shipper and packer




organizations, retail food chains; farmworker union representatives, and




private pest management consultants were carried out.  It was anticipated




that systematic interviews with a large number of growers, farmworkers,




consumers and other relevant groups would be carried out.  However, efforts




in this direction were frustrated by the Federal Office of Management and




Budget which refused to approve the appropriate survey questionnaire even




after all technical and administrative objections had been properly responded




to.  To our knowledge, the requested survey was never actually formally




turned down and we were never notified of the reason for the survey not




receiving approval.  The lack of this important research tool was made up




for, in some instances, by the coincidence of other survey studies which




partially met the needs of this report.  However, the inability to conduct




survey studies in important areas of concern did restrict the study to




primarily qualitative rather than quantitative conclusions.  Nevertheless




it is hoped that the tendencies identified will prove to be a useful guide




in the consideration of pesticide policy.




     This report represents the first attempt to study a subject that is




complex and broad.  The report, then, is primarily descriptive.  However,




because this report defines and characterizes a new area of concern it can

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                                   xiv






serve as a guide to additional, more specialized and systematic investi-




gations.  Some specific areas for additional study are     identified in




our recommendations.  Finally, for various reasons this study primarily




concerns insecticides.  However, it should be clear from what we report




that this discussion has broad implications for pesticide usage.

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                                   XV
    mil i-




1,  Alex F. McCalla, Public Sector Research and Education and the Agribusiness




    Complex:  Unholy Alliance or Socially Beneficial Partnership?"  American




    Journal of Agricultural Economics, December, 1973, p. 1001.

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CHAPTER 1.  QUALITY STANDARDS FOR FRESH AND PROCESSED PRODUCE IN CALIFORNIA






     The establishment and administration of quality standards for fresh




and processed produce in California is not the exclusive domain of any




single agency.  To understand the nature of food quality standards a




complex system of private and public institutions at the county, state




and federal levels must be examined.  The relevant institutions for fresh




produce quality standards include the California State Legislature, the




California Department of Food and Agriculture, state and federal marketing




order boards, agricultural marketing cooperatives, shipper and packer




organizations, retail food distributors and the consuming public.  In




regard to processed produce the roles of the Federal Food and Drug




Administration and food processing companies and cooperatives must also




be considered.




     The cosmetic aspect of food quality standards has not been formally




defined within any of these institutional structures.  Thus, a definition




of "cosmetic quality standard" will be constructed and the degree to which




various institutions contribute to the cosmetic aspect of food quality




standards will be considered.






PRODUCE QUALITY STANDARDS




     The  two categories of quality standards that are relevant to this




study are those which pertain to the marketing of fresh produce and those




which pertain to produce which is sold as an input to processing firms.  In .




both cases foraal, statutory standards exist; however, for many crops the




operationally effective standards are those that are required by contractual




agreement between producers and buyers, or by the joint agreement of producers

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through marketing cooperatives and marketing orders.  In most cases this



latter type of quality standard is much more stringent than the statutory



standard.         .           '              .




QUALITY STANDARDS FOR FRESH PRODUCE



     The establishment and enforcement of quality standards for fresh



produce is essentially a state function.  The federal government does



maintain a system of federal grades as a service to buyers and sellers.



According to the National Commission on Food Marketing, "One of the principle



functions of Federal grades for fresh fruits and vegetables is to provide a



basis for describing products and, thereby, facilitate trade between



shipping point and terminal market firms."   The National Commission goes



on to document the fact that federal grades do, in fact, play a substantial



role in commerce between the sellers and buyers of fresh fruits and


           2
vegetables.   Nevertheless, federal grades are not the same thing as



mandatory quality standards.



     The purpose of federal grades is to provide buyers and sellers with a



common basis of information.  Grades are not directly linked to mechanisms



that function to allocate produce between the primary and secondary markets



or to withhold produce from the market.  Thus, to the extent that grades



represent accurate and accessable information, they may serve to increase



producer and consumer welfare.  Quality standards may be directly linked



with mechanisms which serve to constrain the amount of produce that may



reach the primary market in a given period.  In this sense, quality standards



may place constraints on the functioning of consumer sovereignty.   Quality



standards may also result in other externalities, such as are the subject



of this report.

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     The Federal Food, Drug, and Cosmetics Act specifically forbids federal

quality standards, providing that "no standard of quality shall be

established for fresh or dried fruits, (or) fresh or dried vegetables."^

California State Quality Standards

     The California legislation regulating the quality of fresh fruits and
                 '•-.•'•-••     -  -   '"•'•'    4         •    . •  .
vegetables began to develop early In this century.   Because of progress in

transportation, eastern markets were beginning to be accessible to fresh

California produce.  Thousands of small grovers and shippers scrambled to

serve these markets.  It was in the interests of each grower to reach the

market first each season to reap the premium prices available for early

produce; invariably the competition resulted in many shipments of insuf-

ficiently ripe produce.  Further, the hope of growers to sell all their

crop led to the swamping of the markets in peak season with produce of

marginal quality.  Deceptive packaging, marking, and grading were used to

hide defective produce.  Eastern wholesalers, retailers, and consumers-&

became cautious about California produce and prices began to fluctuate.  To

protect consumers by eliminating     deceptive practices and thus to promote

the reputation and the business of the state's agricultural industry, both

inside and outside the state, the California legislature established miniTmim

maturity, size, packing, and labeling standards for some of the major
                        » -  - •    '           •-.  -      *       .      "     .   *  . .
California fruits and vegetables.                          ;                 '

     The quality standardization laws have grown progressively more com-

prehensive and complex.  They now apply to the sale or shipment of all fresh

fruits and vegetables, packed or in bulk.

     The state of California has'enacted quality standards with respect to

pest damage which apply, across the board, to all fruits 'and vegetables.

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These criteria are rather broad and vague, providing that any fresh fruits

or vegetables cannot be sold unless 90 percent  by weight, of the produce,

is free of worms, mold, decay, or any insect injury which has penetrated

the edible portion, as determined by inspection of representative samples.

     Crops to which additional, specific quality standards apply are apples,

apricots, artichokes, asparagus, avocados, berries, broccoli, brussel sprouts,

cantaloupes, carrots, cauliflower, celery, cherries, citrus fruit, corn,

dates, grapes and raisins, lettuce, melons, nectarines, onions, peaches,

pears, peas, persimmons, plums and fresh prunes, pomegranets, potatoes,
                                              Q
quinces, sweet potatoes, tomatoes and walnuts.

State quality criteria for selected crops are shown in Table 1.

     In the past California state quality standards for fruits and vegetables

were established as statutes by the California legislature.  Beginning in

1975 this authority was transferred to the Director of Food and Agriculture.

Under the current law the Director, upon a petition from a commercial

grower or handler, "may", and upon a petition from 10 commercial growers

or handlers "shall" hold a hearing to establish, modify or rescind a quality

standard for a fruit, nut or vegetable product.  The Director's decision must

be based upon the following criteria:

     1.  The regulation will provide the consumer with acceptable quality .

fruits, nuts, and vegetables which will also provide stability in the

marketing of such products.

     2.  The regulation will tend to prevent waste in the production and

marketing of fruits, nuts, and vegetables.

     3.  The Director will consider the impact of the regulation upon the

agricultural industry.

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     All quality standards enacted by the state legislature before 1975 are


carried over into the new system as regulations unless the Director finds

                          9
them to be unsatisfactory.


     While it is difficult to evaluate quality standards except on a crop-


by-crop basis, it is safe to say that the Califronia state quality standards


for fresh fruits and vegetables are, by and large, directed at maintaining


a minimum level of produce quality and are concerned primarily with maturity


and substantial damage.  One reason the standards have been set low in


the past is that, as the statutes required legislative action for adoption


or amendment, they could not be readily altered in response to emergency


situations, such as anabrupt change in the weather, that might suddenly


result in a substantial reduction in the quality of a specific crop, though


the crop might still be basically wholesome.


     Growers apparently have no great difficulty in meeting the current


standards as evidenced by the fact that for the fiscal year 1972-73, 99.6


percent of the produce inspected in Fresno County was passed.  (Fresno


County is the largest agricultural producer of any county in the United


States, measured by the gross value of sales.  The value of its crops in


1972 were in excess of $550,000,000.^


     There has been some pressure to increase the level of the state quality


standards.  For example, the Western Growers Association, which is a major


shipping organization for California row crops, .has consistently lobbied


for increased quality standards.  According to a Western Growers Association


spokesman, the effect of increased quality standards is to improve the


quality reputation of California produce and to improve the competitive

                                                        1 7
position of fresh produce relative to processed produce.

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MARKETING ORDERS     ..-".'



     Under the provisions of federal and state marketing orders*producers



may agree to establish and enforce quality standards in addition to those



specified by state law.  In 196S there were 49 marketing orders in effect



under-the federal provision and 34 under the state of California.    Of the

             »     '                   •

91 federal and state marketing orders tabulated by the National Commission



on Food Marketing,76 percent contained provisions for grade, size, maturity,


                         14
or other quality control.    The general goal of marketing orders is to



increase the net return to the grower by  improving market organization,



by increasing consumer demand, by regulating the flow of the produce to



the market place, and, in some cases, by restricting the total supply of



the product.  The quality standards that are specified by marketing orders



are tied to this general goal and related to one or more of these  ' .-"  •• -:r   •



mechanisms.  '  .       •                                   •         '



MARKETING COOPERATIVES             '.                                   *



     Under the provisions of the Capper-Volstead Act the producers of a



commodity may join together in a cooperative for the purpose of jointly



marketing their produce.    Marketing cooperatives may establish and



enforce their own quality standards.  For example, Sunkist Growers, Inc.,



the major marketing cooperative for fresh California oranges maintains a



set of quality standards that is far more comprehensive, specific and


                                                   18 •
stringent than the regular state quality standards.



PRIVATE MARKETING ORGANIZATIONS                     .   .            •



    . Likewise private marketing organizations may maintain their own set



of quality standards.  For example Kenneth Dunham of the giant, produce



marketing firm Eeggeblade-Marguleas-Tenneco testified in 1972 that, "we

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have consistently atrivcd with the growers to upgrade the quality of their



produce in order to compete in the marketplace, domestic and international.



We are relentlessly hammering at the growers to put up the finest package



of fruit and vegetable possible.  If you ask why we have done this over



the years and are continuing to do so, it is done for the growers'



salvation—not to become fat with profit, but to enable them to compete in



the marketplace with their products, whether it is fruit, nuts or vegetables,


                                    19
with a reasonable return to invest."



RETAIL STANDARDS



     The most comprehensive use of quality standards in fresh produce occurs



in the buying transactions of large supermarket chains and in the selling



of produce to these chains by large marketing organizations.  Buyers for



retail supermarkets have reported to us that cosmetic criteria are routinely



used in selecting produce.  The buyers state that the standards they use are



not written down or codified in any way, but that they are acquired from a



buyer's experience regarding what consumers .will or will not buy.



     Crates or boxes of produce in which.insects are found are often



rejected summarily.  Buyers maintain that the presence of one insect often



indicates that more may be present in the shipment.  It makes no difference



whether the insect is one which attacks the commodity on which it is found



or whether it is an innocuous insect that does not feed on the commodity.



Evidence of insect damage is treated almost as seriously as the presence of



insects.  Buyers said that produce must be practically free of insect damage



to be saleable.



     Size and color are also cosmetic criteria that are important to buyers.



Retail stores often like to stock tvq sizes of the commodities for which



there is a federal grading system (e.g. apples, oranges, tomatoes, etc.)

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                                                                         8

Retail score buyers prefer Co buy Che largest produce wichin a given grade.
They have commented Chat consumers are ofcen uninformed as Co whac size
indicates; smaller produce within a grade may have becter Caste qualities
according to Che buyers but consumers seem to always equate maturity  and
quality with size.  Color is important for the same reasons; consumers
equate good color with maturity and quality.  According to the buyers, this
is not always true.  The cosmetic criteria applied are flexible and vary
with the season and with the availability of produce.  Buyers are conscantly
in touch by phone and by personal visits with wholesale brokers and with
large growers who sell directly to retailers.  They actively compare the
produce which is available and buying decisions are made by balancing price
with cosmetic quality, assuming that the produce is acceptable on other
     A  20
grounds.
     Don Dressier of Che Wescern Growers AssociaCion concurred wich this
viewpoint.  He asserted that the use of agricultural chemicals was vical
in obGaining produce with Che "righc color" and for "blemish concrol".  He
thought that the cosmetic appearance of fresh produce was a major'factor in
competition against canned and frozen produce which have the advantage of
picturesque labels and elaborate packaging.  According to Dressier, "fresh
produce is ics own label".  Dressier also contended that even a small
proportion of non-cosmetic produce appearing in the marketplace could spoil
the consumer market for the entire industry.  He was especially upset about
                                21
the marketing of "organic crap".
     Not all produce people feel this way.  According Co Bill Ramsey,
supervisor for Mann Packing Company, which ships 25 percent of the nation's
broccoli, it is the retail buyers, not the consuming public, who demand the

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maintenance of high cosmetic quality standards.  According to Ramsey, a



reduction in the cosmetic quality standards would result in a saving to



both the grower, who would use less pesticides, and the consumer.  "Consumers



buy the relative best so if quality goes down, they would buy the relative


                   22
best," said Ramsey.



     According to the Sunkist Newsletter of August, 1976, regreened oranges,



Valencia oranges that have turned green when left on the tree beyond the



point of early ripening, are "sweet and juicy", as good or better than



orange colored fruits.  However, the Sunkist Newsletter of September, 1976,



reports that, "Regreening continues to be a serious problem this season



and is proving to be a major factor contributing to heavier amounts of



non-premium fruit".



     Barney McClure of the Botsford-Ketchum advertising agency has designed



campaigns to educate consumers to the non-cosmetic aspects of fresh produce.



"One winter (artichoke growers) had a heavy frost which turned the outside



leaves of the chokes brown.  They put on a campaign which explained that



frost-kissed artichokes really have improved flavor.  They turned frost



damage into a money-maker."  According to McClure, "Some of the new peach



varieties have been developed with an eye toward blush, that beautiful



color that is associated with peaches.  But there is a problem with them.



They don't taste so good.  I think people are ready for a change.  This



growing emphasis on consumerism is beginning to counter 40 years of effort


                                     23
and promotion of the perfect produce."



     This "consumerist" attitude was expressed by Christina Rose, of the



California Department of Consumer Affairs, who testified in 1973, that,

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                                                                        10
     In spice of the original purpose of commodity standards, there are
     those who question whether their real benefit accrues to the consumer
     in every instance.

     They ask, for example, if consumers might not gladly purchase fruit
     and vegetables for cooking purposes which did not meet the stringent
     standards to which they have become accustomed, but which could be
     purchased at a reduced price consistent with greater supply.

     The price of a food product is, in some measure, influenced by the
     quality and maturity standards applied to basic agricultural commodities.
     To increase the price, one may raise the standard acceptable on a
     given commodity and thus reduce the legal supply available on the
     market.

     A substantial lowering of the standard will increase the supply and
     may reduce the price, but will possibly provide to the consumer what
     would previously have been considered an inferior product.


COSMETIC QUALITY STANDARDS

     Nowhere in the vast system of quality standards for fresh produce is

there a definition of a "cosmetic" quality standard.  However, commentators

within and outside of the fresh produce system have acknowledged the

existence of such a thing for many years.  At this point, based upon our

review of quality standards for fresh produce, it seems clear that a cosmetic

quality standard can be defined in the following manner:  A cosmetic quality

standard is one that refers to superficial damage to or alteration  of
                                                               /
the exterior appearance of the commodity; damage or alteration which does

not significantly affect the taste, nutrition or storage capacity of the

produce.  Of course, this report is concerned, more specifically, with

cosmetic damage that is actually caused by, or is attributed to, insect or

other pests.

     From our review of quality standards for fresh produce we can make

the following comments regarding the relative degree to which quality

standards incorporate a cosmetic component.  The regular state quality

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                                                                        11






standards refer, by and large, to minimal maturity and non-cosmetic quality




criteria.  The quality standards that are established and enforced by




marketing cooperatives and marketing orders often contain substantial




cosmetic components.  Finally, at the retail level, cosmetic factors seem




to play the decisive role in decisions of the large marketing concerns to




buy or not to buy fresh produce.  According to retail store buyers this




reflects a "cosmetic consciousness" on behalf of the consumer.






QUALITY STANDARDS FOR PROCESSED FOODS




   PROCESSED FOODS—STATE STANDARDS




     The states play little part in setting quality standards.for processed




foods.  The first attempts to regulate processed foods were made by the




states, but the emergence of a national economy and the dominant proportion




of processed food shipped through interstate commerce made national regulation




necessary.  State power to regulate products in interstate commerce was




limited.  Conflicting regulations made it difficult for producers to serve




multi-state markets.  The Federal Food, Drug and Cosmetic Act now is the




dominant force in regulating processed foods.




     California's health codes illustrate the merger of state and federal




regulations.  Claifornia does have one state stuatute which controls the




quality of food which can be processed, but the standards are totally




non-cosmetic.25  But beyond this statute California has adopted the federal




standards.




   PROCESSED FOODS—FEDERAL STANDARDS




     The primary federal statute which regulates, inter alia, the quality




of processed food is the Federal Food, Drug, and Cosmetic Act (FDCA).

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                                                                        12
The main purpose of the Act is to protect consumers from the dangers of



unwholesome food.  In general, FDCA provides for the promulgation of three



types of food standards which an interstate processor must meet.    The



three types of standards are identity, quality, and fill of container.



The Act prohibits from interstate commerce, foods which are "adulterated"


                28
or "misbranded,"   and the receipt or delivery of such defective foods.



Almost all the civil and criminal violations with respect to food under



FDCA involved adulterated or misbranded food, both of which are given



broad definitions.  The Food and Drug Administration, (FDA), under the



Department of Health, Education, and Welfare, is responsible for ad-



ministering the major part of FDCA.


                        29
     Section 402 of FDCA   gives the Secretary of HEW the authority,



delegable to FDA, to "promulgate regulations fixing and establishing for



any food, ... a reasonable definition and standard of identity, a



reasonable standard of quality, and/or reasonable standard of fill of



container" excepting most fresh fruits and vegetables.  FDA has issued a



large number of regulations under the authority of section 402 covering



nearly all processed food.  Most of these regulations are concerned with



mandatory standards of identity and fill of container to insure that



consumers receive what they reasonably expect they are buying.



     FDA has also issued standards of quality for the major processed foods,



but very little of the standards' contents are concerned with quality that



could be termed cosmetic.  The general exception is the requirement that



most processed fruits cannot contain more than a stated percentage of



fruit (usually between 15 and 20 percent) blemished with "scab, hail



injury, scar tissue or other abnormality or discoloration."  But none of

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                                                                        13






the quality standards are mandatory; the processor may market his product



without penalty if only it is labeled as being below the FDA standards.



The objective is disclosure to the consumer as to what he is buying, giving



him the opportunity to make decisions on quality without setting govern-



mental quality standards which are mandatory.  Hence, the FDA has chosen



not to use the authority delegated by section 402 to set minimum quality



standards.



     Rather, the FDA regulates the quality of processed foods by promul-



gating regulations and tolerances which, in part, define adulteration as



the failure to meet certain quality standards.  Because FDCA prohibits the



introduction or delivery for introduction into interstate commerce, or



the receipt in interstate commerce, of adulterated food,   it then becomes



a crime to use interstate commerce to sell processed foods which do not



meet these quality standards.



     Section 402(a)(3) states that a food is adulterated if "it consists



in whole or in part of any filthy, putrid, or decomposed substance, or if



it is otherwise unfit for food."  The FDA and the courts have applied this



section in such a manner as to define and enforce standards to include


                                                                        32
insect debris which in fact, poses no threat to human health whatsoever.



     If section 402(a)(3) were strictly construed and enforced, it would



ban all processed food from interstate commerce.  Even with the best of



technology all defects in food cannot be eliminated.  Technologists using



only a microscope can find at least minute quantities of decomposed or



moldy substances in almost all processed food.  These minute amounts make



the food "in part" filthy and hence adulterated, even though they pose no


                                33
possible danger to human health.

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                                                                        14
     Further, the courts have uniformly held that 402(a)(3) is to be


                               34
interpreted in the disjunctive-,   that the phrase "otherwise unfit for



food" does not limit the phrase • which bans food in whole or in part which



is filthy, putrid, or decomposed.  Thus food containing minute amounts of



"filth" could be found to be in violation of 402 (a) (3)  even though it is



fit-  '• for food, and indeed, even if it is of excellent quality.  This



interpretation reads the word "otherwise" out of the statute.    But .the



courts have accepted this interpretation, rationalizing that Congress nay



have wanted to set a standard well above what was required for the health



of consumers.  A high standard would force the industry to Inspect strictly,



thus reducing the probability that dangerous food might reach the public



even very infrequently.      '  x



     Thus the dilemma arises that, despite the clearly undesirable result,



the Act if strictly enforced would conceivably ban from interstate commerce



essentially all processed foods.  Section 306 of the Act allows FDA the



discretion not to prosecute minor violations,   but this only begs the



question as to when to prosecute because there is no guidance in the Act



as to what constitutes "minor" adulteration since all food is to some



degree adulterated.                 .



     To reasonably limit the application of the Act, FDA has established

           *         ' '                '               *                   "

what are called "defect action levels for natural or unavoidable defects



in food for humans that present no helath hazard".    These are amounts of



defects or filth which are allowed in some categories of food because such



amounts are. often unavoidable.  They are established at levels that present



no health hazard to humans.  They do not represent an average level of



defects in processed foods, but are higher than actual empirical averages

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                                                                        15





of such defects.  Many of the defect levels are  tolerances as  to the amount



of insect debris allowed in food, and as insect  debris poses no threat  to



human health, these defect levels are minimum quality standards which are accom-



modated in  our definition of cosmetic quality standards.  If  a product,



assuming the processor employs  good manufacturing practices,  is within



the tolerances set by the defect levels, the .FDA will not .take legal action


           38                         •
against it.



     In order to explore the FDA's contention that defect action levels



apply to damage or debris that does not constitute a human hazard a review of  the



literature on the human health hazards of ingested insects has been



conducted.



     From man's antiquity insects and other small invertebrates have been



consumed either intentionally as a food source, or unintentionally, hidden



from view, in the fruits, seeds and other foods gathered as nutrients.



     The range of insects consumed as food is extensive and includes species



from all major orders including such loathsome forms, by Western standards,



as the head louse.  The major criteria in the use of insects and related



invertebrates as a food source appear primarily related to their abundance



and the ease of capture and/or the large size of such individual insects



as aquatic beetles and bugs.  Thus even rather small insects that occur



in great numbers in time and place such as the ephedrid flies of brine



lakes were harvested in great numbers by North American Indian tribes,  as


             39 40
were locusts.  '    Bodenheimer has extensively reviewed the use of insects



as food by peoples of the world and points out that in some human popu-



lations insects constitute a substantial source of nourishment.  The



natives of tropical Africa have used termites  extensively as food  and

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these dried or fried insects can be found in the markets for sale.  The




desert locust is another insect prized as a, food in Africa and can be




found for sale in markets (e.g., Morocco).
                                                             i



   .  Bodenheimer points out that, insects were particularly important to




human populations where large-animal protein was scarce and that these




insects formed a valuable addition of protein and fat as well as certain




minerals, vitamins and salts.'               .     .         ;   '•••.'-        .   .



     Certain insects do serve as intermediate hosts of various parasites




which, when consumed with the insects may continue to develop in humans.




For example, the spiny headed worms, Acanthocephala, utilize as intermediate




hosts various beetles and other insect species.-  On rare occasions these.




  rms have been reported as parasites in humans.  Certain tapeworms of




 bgs and rodents which utilize fleas and other insects as intermediate




hosts have' been reported in man, particularly in children.  E.  nana which  .



is capable of undergoing autoinfection in humans and is a normal parasite




of rodents may be transmitted on occasion to humans by grain beetles




Tribolium spp. which serve as excellent intermediate hosts in the laboratory.




Contact between rodents infected with tapeworms and grain or grain products


                                         •  •                         41
infested with the beetles would be the potential route of infection.




Treatment for these tapeworm infections is relatively safe and constitutes




no serious threat to health.  Additionally, cooking of the insects, which



often takes place in processing, would eliminate the threat of transmission.




Ron Taylor, a forensic toxicologist, has studied the use of insects as




food for several years.  Taylor found that some people, chronically exposed




to cockroaches develop allergies.  However, Taylor found no evidence of any



allergies to insect parts in processed food, nor has he found any toxins



in insects that would present a health hazard to humans.

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                                                                        17

     Thus, while some insects and associated debris could be a health
hazard to humans under certain conditions, there is no evidence to suggest
that herbivorous insects found in food that has been processed present a
health hazard to humans.
     While extraneous inclusions in food which are within the defect action
                                                                    43
levels are not hazardous to humans, health hazard is not a criterion
used in establishing these defect levels.  Instead, the levels are based
upon the processing industry's technological ability to remove, through
whatever means, the inclusion (defects).  The levels are subject to change
                                          44
as technology or new. information develops.    The FDA states that the
defect levels have been and will continue to be reduced and that the food
industry has a continuing responsibility to minimize even innocuous defects
,  1   . 45
in food.
     The courts have accepted the defect levels as having the force of
law.  FDCA does not provide authority for FDA to set administrative
tolerances for filth, and one court, although basing its decision on an FDA
                                                                        46
defect level, questioned the scope of the validity of the defect levels.
But a substantial majority of the courts accept the defect levels as
            47
dispositive.    The courts recognize that they do not have the expertise
to know what standard of food quality is necessary for the public health
nor what performance can be expected from the processing industry.    As
a minimum, recent decisions show that courts accept the defect levels but
                                      49
imply that they are not bound by them.
     The FDA has not adopted defect levels for many processed foods.  When
a processed food which is under prosecution as adulterated does not have
an action defect level, the courts interpret the words "filth, purtid, or

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                                                                        18

decomposed substance" in their ordinary rather  than any  scientific meaning.
The courts have emphasized  that  the sensibilities  and  esthetic  feelings
of consumers are protected  by the Act.    Without  defect levels to guide
                                                                *
them, courts often look to  expert witnesses  to  inform  them  as to what
                                                52
levels of defects are "usual" or "unavoidable."   If  the contamination
is "unavoidable," courts are likely to label,the defect  as  de minimis,
below the concern of the law, and find no adulteration.     This approach
implicitly adopts the same  criteria the FDA  used to establish its defect
levels.

      But being beyond  the narrow objection of de minimis, insect fragments
                                              54
in other than infinitesimal amount  are "filth"    even without a danger to
health.   This would be  particularly true for any visible insect  fragments.
Nearly all the FDA defect levels are-set at amounts of filth indiscernible
to the human eye,  and to our knowledge,  there exist no cases that hold
that processed  food with visible  insect debris is not adulterated regardless
of whether it is in a category to which a defect level has been  assigned.
Hence by recognizing consumer sensibilities and by adopting a meaning of
filth which does not include any element of potential  human harm, courts
have interpreted FDCA as including  cosmetic quality standards with  respect
to insect debris.
      There are circumstances under which food which is within the  defect
action levels would still be in violation of FDCA.   Section 402(a)(4)
states that a product is adulterated "if it has been prepared, packed,  or
held under insanitary conditions whereby it may have become contaminated
with filth,  or whereby  it may have  been rendered injurious to health."

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                                                                         19
To constitute a violation under 402(a) (4), the court in Berger v. United



States    held that it is sufficient that the manufacturing conditions "would



with reasonable possibility result in contamination."    A "mere possi-



bility" of contamination is not enough, but it is certainly not necessary



that  the  food  actually be contaminated.  The focus  of  section  402(a)(4)



is  on the conditions  of manufacturers;  the objective is  to prevent



adulterated  food by condemning  the conditions under which it could be



produced.



       In  1969  the  FDA promulgated regulations applicable to the  entire


                                                                     58
food  industry, called good manufacturing practice  (GMP)  regulations.



FDA's'objective was to provide  detailed standards as to  what is  and  what  is



not a violation of section 402(a)(4).   The regulations specify proper



practices relating to plant construction and design, the surrounding



grounds,  the equipment and utensils,  sanitary facilities and their control,



maintenance, animal and vermin  control, raw material handling, packaging,



and personnel  work procedures.  The FDA intended that  the GMP  regulations



have  the  force of  law and that  a violation of one of them would  be a viola-



tion  of section 402(a)(4).  Immediately after they  were  issued,  industry



lawyers scrambled  to  argue that the FDA had no authority to endow the



regulations  with legislative  status.  They maintained  that the regulations



could at  most  be guidelines for the industry which  were  not binding  on


           59
the courts.



      The  FDA has made it clear  that violations of the  GMP regulations will



bring prosecution  and the FDA has a high percentage of convictions under



section 402(a)(4).   But the courts  response to the GMP regulations has

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                                                                        20
not been clear.  Courts have acknowledged the existence of the GMP regu-

lations, but have grumbled that they are generally inadequate because

they are too vague.    Generally courts have not mentioned the regulations

in their opinions, but have continued to apply the Berger "reasonable

possibility" test.62

     While the FDA recognizes that defect action levels do not refer to

contaminants that are hazardous to human health and are not reliable

indices of processing plant sanitation, it is FDA policy to "periodically

lower (defect action levels) as technology improves".  On the other hand

this statement is balanced with the FDA declaration that,

     The alternative to establishing natural defect levels in some foods
     would be to insist on increased utilization of chemical substances...
     (and)...the  very real danger of exposing consumers to potential
     hazards from residues of these chemicals, as opposed to the
     aesthetically unpleasant, but harmless natural and unavoidable defects

     Pimentel, et al., have shown that for broccoli and spinach, defect

action levels for insect debris has become more stringent over the years.

Between 1938 and 1973 the defect action level.for aphids, thrips and/or

mites in broccoli was 80 per 100 grams.  Currently the defect action level

is 60 per 100 per 100 grams.  In the 1930's the defect action level for

aphids in spinach was 110 aphids per 100 grams.  Currently the defect

action level is 50 per 100 grams.  The defect action level for leaf miners

in spinach was 40 per 100 grams in the 1930's.  Currently it is 8 per 100

grams.  Pimentel et al. report that one of the effects of tightening up the

defect action level for leaf miners in spinach has been the increased use

of insecticides.  They conclude that,

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                                                                        21
     Evidence has been presented that suggests that FDA's ad hoc policy of
     reducing tolerances in food for small insects that offer no known
     threat to public health contributes to increasing health hazards
     from pesticides, deducing environmental quality, using more energy
     for pest control, and increasing the economic cost of food.  Therefore,
     reducing tolerances for small herbivorous insects in foods to improve
     the "cosmetic appearance" of the food appears not to be in the best
     interest of society and this nation.^

Contractual Standards

     The FDA regulations may be used to justify quality standards that

are written into contracts.  For example, according to Stanley D. Ray,

Agricultural Commissioner for the California County of Stanislaus, where

food processing is a major industry,


"The contracting system between growers and processors does have some

effect on pest contamination and the related use of pesticides.  The

requirements, however, are dictacted by strict Pure Food and Drug and USDA

regulations, and growers and processors cannot afford to have their

commodities condemned because of insect contamination."    Additionally

James Bell, Executive Vice-President of the Canners' League of California,

an organization which represents many marketing cooperatives and small

independent canneries., told us that contamination by field insects and

insect damage was a major problem for canners because of "consumer standards

and behavior and FDA standards."


     There is no way in which the FDA regulations can be easily translated

into insect-related quality standards for the grower, especially since all

insects must be considered potential contaminants whether defect action

levels for them have been promulgated or not.  Nor are just the fresh produce

standards followed in the case of produce that is used as an input for

processing.  The most important quality standards are those that are

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                                                                        22
specified in contractual agreements between processors and growers.  The




quality standards for insect and insect danage specified in such contracts




are usually much more stringent than state quality standards for fresh




produce.




     A 1971 contract form from the Canners League of California for




tomatoes specifies that the buyer may reject the entire shipment if more




than 1/2 percent of the tomatoes contain any worm or worm damage that




penetrates the flesh of the tomato.  A Hunt-Wesson Foods, Inc. tomato




contract specifies that the buyer may reject the entire shipment if any




worms or worm damage or insect infestation is present in the flesh, core




or stem cavity of any tomato.  A Canners League contract^for peaches says




that the buyer may require peaches to be free of worms, worm damage,




parasite or insect damage, and San Jose scale and may reject the entire




shipment if there are more than one percent wormy or worm damaged peaches.




     Stokely-Van Camp, Inc. which contracts for frozen vegetables specif-




ically requires that produce, be delivered, "in the condition buyer may




require, in order to meet the tolerances permitted by and requirements of




the United States Food and Drug Administration and in all respects conforming




to any applicable Pure Food & Drug requirements of the state or political




subdivision thereof in which this contract is to be performed and the crop .




is to be processed".  From this passage one might get the impression that-




FDA places specific quality requirements on produce at the point of




delivery to the processor, which is not the case.  It can only r.efer to




the exceedingly vague requirement that input produce from the grower does




not contain a level of insect contamination which would result in the




processed output exceeding the FDA defect.action level for insect debris.

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                                                                        23





A 1974 Stokely-Van Camp contract for frozen spinach contains the additional,



appended provision that, "Any lot of spinach infested with insects including



worms or aphids or seriously damaged by any of the above defects (which



includes insect damage effecting an area of one square inch on leaf or



stem) beyond the level normally accepted in the frozen spinach industry,



may be rejected by Buyer."
                                *

     These stringent contractual standards for insect debris and insect



damage may be justifiable, after the fact, on the basis of FDA regulations,



but there is no reason to believe that these standards are primarily



motivated, in the first place, by the FDA regulations.  The FDA regulations



are based upon "good industry practice" not vice versa.





CONSUMER ATTITUDES
     The other major reason given by industry spokesmen for the tough insect



quality standards, is consumer attitudes.  It is asserted that consumers



demand cosmetically perfect produce and would not stand for processed



produce which showed signs of insect damage or contained insects or insect
                                      t


parts.  There is undoubtedly a large measure of truth to this assertion,



although systematic studies of consumer attitudes toward insect contamination



are non-existent.  Additionally, it should be noted that many of the insects



which are so strictly controlled by the contractual standards would not



be detectable in many forms of processed food even if they were present



at levels far in excess of current contractual levels, except, of course,



by careful microscopic examination.



     It should also be asked to what extent current attitudes of consumers



are endogenous to human nature and to what extent they are the result of



promotional activities by the food industry itself.  The United States

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                                                                        24
Department of Agriculture estimates that in fiscal year 1962 1,200 agri-

cultural groups in the United States spent a total of $86 million to
                              68
promote agricultural products.    Among all California marketing orders

advertising and promotion costs averaged about 69 percent of total
                                   69
expenditures in the decade 1960-70.    John A. Jamison notes that, "Growers

have generally been very optimistic about advertising and promotion through-

out the post-World War II history of marketing orders.  Demand expansion

programs have seldom been met by the vocal opposition that has accompanied

quantity control programs.  The very fact that the results of these

promotional efforts can seldom be measured seems to encourage rather than

discourage their use. ' ...the great faith of producers in such programs

seems to be based principally on two premises:  (1) that these efforts

must be beneficial because advertising is so widely practiced and supported

in the case of product advertising vs. brand-name advertising.  Furthermore,

the effect of this promotional atmosphere may be to raise the overall

quality expectations of the consumer for all produce.

     Consumer attitudes toward insects in food may also be related to

more basic cultural values.  In a review of "entomophobia", the irrational

fear of insects, Helga and William Olkowski comment,

     A review of the literature on entomophobia and personal discussions
     with a phychiatrist have confirmed our impression that the basic
     syndrome is one of fear of contamination, penetration, and/or
     filth.  We find people who take a 'disinfectant' or sanitizing
     approach to gardening.  In some cases it seems to.be the germ theory
     gone astray....This general attitude may be extended to life
     generally, the natural world is feared, it is repulsive, dirty....
     These attitudes are not at all helped by government regulations that
     refer to insect parts as filth, lumping them together with rodent
     droppings, the inference being that any insect part is evil whether
     from beneficial or pest species.

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                                                                        25


     Of course, less acute aversion to insects may be thought of as part

of the accepted cultural norm.  However, to the extent that consumer

aversion to insects is based upon irrational fear or ignorance, it can be

countered by informational and educational programs.  An intrinsic aspect

of such programs should be not just how insect-related quality standards

affect consumers directly, but how they affect other segments of the

society and social welfare in general.


QUALITY STANDARDS AND SUPPLY CONTROL

     There are other possible reasons for the maintenance of extremely

stringent contractual quality standards, as well as fresh produce standards,

besides consumer attitudes.  The contracts are written in such a way that

the quality standards can be used as a mechanism for regulating the flow

of the supply of raw produce to the processing plant.  In periods of short

supply quality standards may be relaxed, or below quality produce may be

accepted with a penalty loss to the grower.  In periods of peak supply,

below quality shipments may simply be rejected.
                                                                         s
     In tesitmony before Senator Gaylord Nelson's U.S. Senate Subcommittee

on Small Business hearings on "Corporate Giantism and Food-Prices" in

1973, Ruben Reyes, of the Cannery Workers Organizing Committee, stated,

     I know that when I worked as a weightmaster for the Libby, McNeill
     and Libby people for ten years, I know that the grading procedures
     that they used are not overseen by the state or any regulatory
     agency.  In other words, the plant, itself, pruchases the product
     and they do whatever they want in regards to grading it and paying
     the farmer.

     I know that for the ten years that I was a weightmaster, the company
     I worked for was ripping off the farmers for at least $50,000—
     $60,000 a year in their deliveries on spinach, altering the grades,
     and by altering the grade of spinach they were purchasing.  I have
     written evidence by some of the company employees that were doing
     the purchasing...they were ripping off the fanner.

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                                                                       26
     The quality control that the companies all have are under their control.
     In other words,  there is no outside agency to oversee the quality
     control work done by the companies themselves.  They grade the product,
     they buy the product, they grade it to whatever category they want
     to and they sell it.  It can be the worst product in the world but
     they can sell it as prime stock because there is nobody there to
     stop them.72

     It is not strictly true that there are no outside agencies to oversee

quality control, state inspection on the input side and FDA regulations on

the output side set lower bounds for quality.  But, Reyes1 remarks suggest

that between these lower bounds and the upper bounds set by contract

provisions, processors may exercise discretion in adjusting the enforcement

level of quality standards to meet their economic requirements.

     In Table 1  we have summarized the quality standards for several

commodities that prevail under the various systems we have described.  It

can be seen that the quality standards specified by private marketing

organizations tend to be more stringent, more specific and more comprehensive

than those promulgated by public agencies.

     As indicated, quality standards of all kinds are written by and

primarily in the interest of producers, processors, and retailers.  The

preferences of the consumer may be given recognition but, in fact, consumers

have had little to say about the development of the current system of

quality standards.  However, even less consideration has been given to the

possible consequences of quality standards on the welfare of agricultural

workers, the stability of the agro-ecosystem and the general environment,

or the long-term economic and physical health of the public.  While the

current system of quality standards may benefit some groups, they may

actually be a detriment to other groups that have had no influence in

devising the system.

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                                                                        27
     As Cha late Senator Philip-Hart observed, "You can make 'certain book

that consumers will elect to have unblemished fruit unless and until they


become aware that the price of unblemished fruit is dead'farm workers."



COSMETIC QUALITY STANDARDS SUMMARY


     As we stated earlier (pg. 11), it would seem reasonable to define a        -


"cosmetic1* quality standard, as "one that refers to superficial damage          (
                                 --       =  -         •    .  •   •  -  :      •  -    •  .'!
to or alteration of the exterior appearance of the commodity; damage or


alteration which does not significantly affect the taste, nutrition or       .   !


storage capacity of the produce".  The state quality standards for fresh        .'
                                      ~                     .      •              »

produce do not seem to be, primarily cosmetic standards.  Rather they set       .


m-i-n-i-m'm levels for maturity of produce and prevent misrepresentation in         ;


packaging- and labeling.  However, the actual effective quality standards,


which are established and enforced by marketing organizations, with input


from retail sellers, often contain considerable and significant cosmetic


quality aspects.


     In the case of processed produce, the quality standards that ar%


established by processing firms and enforced  through contractual agreements


with growers often contain cosmetic quality aspects, especially in. regard


to  insect parts, which are sometimes justified by referring  to Federal


Pood and Drug regulations.                            ...


     The additional proviso should be made, that damage  due  to insects or


other arthropod pests or  their effect on produce appearance  can only be


considered cosmetic if  the specific pest does not in some other way


significantly disrupt the production system for the crop.

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                                                                        29






15.  Alison Masson, "The Economic Effects of Marketing Orders", in Report




     on_ Agricultural Cooperatives, Bureau of Competition, Federal Trade




     Commission, Washington, D. C., 1975.




16.  J. P. Doll, V. J. Rhodes and J. G. West, Economics of Agricultural




     Production, Markets, and Policy, Richard D. Irwin, Inc., Homewood -,




     Illinois, 1968, pp. 491-513.




17.  U. S. Congress, House Committee on the Judiciary, Subcommittee on




     Monopolies and Commercial Law, Hearings, Food Price Investigation,




     93rd Congress, 1st Session, June, July, 1973, Serial No. 15, p. 711-715.




18.  "Rules and Regulations Governing Fruit Packed for Marketing by Sunkist




     Growers, Inc.  Under'its Trademark Sunkist, Excel, SK, and Red Ball




     and Under Association Non-advertised Brands," Sunkist Growers, Inc.




     November 1, 1967.




19.  Fond, op. cit., December 4, 1973, p. 80.




20.  Tsueio Koto, Assistant Produce Buyer, Co-op, Pers. Comn., Richmond,




     California, March 14, 1975.




21.  Dressier, op. cit.




22.  Bill Ramsey, August, 1974, Salinas, California.




23.  Evan Maxwell, "Perfect Produce:  Cosmetic Defects Hold Key to Profits,"




     Los Angeles Times, August 20, 1971.




24.  California Legislature, Assembly Select Committee on Agirculture, Food




     and Nutrition, March Fong, Chairman, Interim Hearing, The Shipping




     Point Inspection System, December 3, 1973, Riverside, California, p. 70.




25.  Cal. Food and Agric. Code p. 41361  (West 1968)




26.  21 USC pp. 301-392.




27.  21 USC p. 341.

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                                                                        30
28.  21 USC p.  331.




29.  21 USC p.  341.




30.  Sec. 21 CFR pp. 10-125.




31.  21 USC pp. 341, 342. .•




32.  21 USC p.  342 (a) (3).




33.  Ibid.




34.  U.S. v. 1.500 Cases More or Less, etc.. 236 F2d 208 (7th Cir. 1956).




35.  See Circuit Judge French's dissention U.S. v. 449 Cases, Etc.. 212




     F2d 567, at 575 (2nd Cir. 1954).




36.  21 USC p.  336.




37.  Anonymous, Current Levels for Natural or Unavoidable Defects in Food




     for Human Use that Present no. Health Hazard, HFF 342, HEW-9NS-FDA,




     Wash., B.C. 1976.




38.  21 C.F.R. p. 128.10.




39.  C. T. Brues, Insect Dietary, 1942 Cambridge, England, pp. 419-422.




40.  E. 0. Essig, "The Value of Insects to the California Indians, "




     Science Monthly 38(2);  181-186.  1934.




41.  C. J. Weinmann, personal communication, Department of Entomological




     Sciences, University of California, Berkeley.




42.  Ron Raylor, pers. comm., September 23, 1974, Los Angeles, California.




43.  Alex McCormick, pers. comm., Compliance Offices, FDA, in San Francisco,




     pers. comm., July 31, 1974.




44.  21 C.F.R. p. 128.10 (c) .




45.  38 Fed. Reg. 854 (1973).




46.  U.S. v. 449 Cases, etc., 212 F2d 567 (2nd Cir. 1954).




47.  U.S. v. 1500 cases, Mora or Less, etc.. 236 F2d 208 (7th Cir. 1956).

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                                                                        31
48.  Ibid., at 211.




49.  U.S. v. 484 Bags, More or Less. 423 (F2d 839 (5th Cir. 1970;




     U.S. v. 1,200 Cans, Pastuerlzed Whole Eggs, etc., 338 F. Supp. 131




     (N.D. Ga. 1972).




50.  U.S. v. Roma Macaroni Factory, 75 F. Supp. 1663 (N.D. Cal. 1947.




51.  U.S. v. 1.500 Cases More or Less, etc.. 236 (F2d 208 (7th Cir. 1956);




     U.S. v. 935 Cases of Tomato Puree, 65 F. Supp. 503 (N.D. Ohio, 1956.




52.  U.S. v. 1,500 Cases More or Less, etc., 236 F2d 208, 212 (7th Cir. 1956)




53.  U.S. v. Capital City Foods, Inc... 345 F. Supp. 27  (N.D..1972).




54.  U.S. v. Cassaro. Inc..443'F2d 153 (1st Cir. 1971).




55.  21. U.S.C. p. 342  (a) (4).




56.  200 F2d 818,  (8th Cir. 1952).




57.  Ibid, at 821.




58.  21 C.F.R. p. 128.




59.  Cody, Authoritative Effect of F.D.A. Regulations 24 (f.A.C.L.J. 195




     1969).




60.  Alex McCormick, pers. comm., see footnote #16.




61.  U.S. v. 1,200 Cases, Pasteurized Whole Eggs, etc., 339 F. Supp. 131,




     141  (N.D. Ga. 1972).




62.  See U.S. v. H. B. Gregory Co., 502 F2d (7th Cir. 1974); U.S. v.




     Cassaro, Inc.. 443 (F2d 153 (1st Cir. 1971).




63.  Anonymous, Current Levels for Natural or Unavoidable Defects in Food




     fojr Human use that Present np_ Health Hazard, HFF 342, HEW-PHS-FDA,




     Washington, D. C., 1976.

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                                                                          32


64.   D. Pimentel, et^ aL_., "Pesticides, Insects in Foods, and Cosmetic
     Standards," Bioscience, in press.

65.   Stanley, D. Ray, pers. comm., August 6, 1974.

66.   James Bell, pers. consn., August 16, 1974.  Sacramento, California.

67.   See Appendix A for copies of contracts.

68.   Godwin, op. cit., p. 359.

69.   Jamison, op. cit., p. 307.

70.   Ibid.

71.   Helga and William Olkowski, "Entomophobia in the Urban Ecosystem,

     Some Observations and Suggestions," paper presented to American

     Institute of Biological Sciences, Tempe, Arizona, June, 1974.

72.   R. Reyes, statement before U. S. Senate Subcommittee on Small Business,

     Hearings on "Corporate Giantism and Food Prices," 1973, reported in

     The AgBiz Tiller. September, 1976.

73.   Statement of Agribusiness Accountability Project on Occupational

     Safety and Health Act of 1970 before U. S. Department of Labor Hearings,

     August 23, 1973.

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                                                                            33
         CHAPTER 2.   PESTICIDE USE AND REGULATION IN CALIFORNIA



     In considering the relationship between produce quality standards and


pesticide use it will be helpful to divide pesticide use into two broad, but


distinctive categories, rather than a large number of arbitrary ones.


Then rather than attempting an evaluation of the Impact of cosmetic quality


standards on the use of hundreds of materials it will be necessary only to


evaluate the effect of these standards on the general approach to pest


control.  This approach is not only convenient, it is also appropriate


because, in fact, two competing concepts of pest control exist and the ability


of the grower to adopt one or the other concept in his overall approach may


be significantly influenced by the existence of cosmetic quality standards.


These two general concepts of pesticide use will be described, and current


status of the two in California will be evaluated.  Additionally, the effect


of federal and state pesticide use regulations on grower pesticide use


decisions will be examined.




PESTICIDE USE AND REGULATION IN CALIFORNIA


     It is important and useful to examine pesticide use and regulation in


California for several reasons.  More pesticides are used for agricultural


purposes in California than in any other state in the nation.  In 1973,. 183,657,000


pounds of pesticides were sprayed on 26,618,000 acres of California farm land.


Partly because of this high use, California was one of the first states to


develop a system of pesticide use regulation and it currently has the  most


highly developed regulatory system in the country.  In fact, the California


system has been looked upon as a model for the development of a Federal

                                   2
system of pesticide use regulation.   For this reason, it is important to

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                                                                       34
critically examine the California system.  Additionally, California is the



leading state in the production of "specialty" crops in which cosmetic



quality standards may play an important role and in which a substantial



amount of pesticide use may be attributable to "cosmetic" pests.  California



is the leading producer of almonds, apricots, artichokes, broccoli, grapes,



lemons (second in oranges), lettuce, nectarines, peaches, pears, strawberries



and tomatoes, all crops in which cosmetic quality plays an important role.



Nationwide, fruits and vegetable crops account for 21 percent of agricultural



insecticide use.  Many of these crops account for a greater usage of pesti-



cides than would be expected on the basis of their acreage.  For example,



apples, which account for 0.07 percent of total crop acreage, account for



6 percent of all agricultural insecticide use.  Citrus, which accounts for



0.08 percent of total crop acreage, accounts for 2 percent of all agricultural


                4
insecticide use.



     In California, where most of the nation's specialty crops are grown,



these crops account for a very significant proportion of pesticide use, as



Table 2 demonstrates.



     Thus, while the use of pesticides attributable to the need to



meet cosmetic quality standards cannot be said to be the bulk of agricultural



use, it may be significant enough to have important consequences for public



health and the stability of the ecosystem, especially as an accumulative



process.  Furthermore, the average figures tend to obscure the fact that



pesticide use attributable to cosmetic quality standards nay be



relatively highly concentrated, in localized growing regions.  Thus, the



agricultural counties of Fresno, Imperial, Kern, Merced, Monterey, San Joaquin,



Tulare and Ventura which comprise only about 20 percent of the area of

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                                                                   35
California, accounted for over 60 percent of all pesticide use

in that state in 1974.  •


PEST MANAGEMENT! TECHNOLOGY

     Pesticide use decisions  related to cosmetic quality standards  are

partially dependent on the pest management technology which is available

and, just as important, is acceptable to the user.  Current pest management

technology can be characterized by two basic, and sometimes conflicting,

concepts.  These characterizations are general, and are not meant to describe

the specific pest management  practice of individual advisors, which consists

of the whole spectrum of possible practical approaches encompassed  by these

idealized concepts.  The first concept, "conventional chemical control," has

grown with the production and use of agricultural chemicals and has become a

major approach to pest management, especially in the last two decades.

     This approach is centered around what is felt to be the pragmatic use

of agricultural chemicals for the suppression of specific insect pest popula-

tions.  This often includes the use of chemicals in a preventive or prophylactic

manner and the use of pesticides which have a broad-spectrum of activity,

including toxicity to beneficial insects, and other non-target species and

humans.  The efficacy of conventional chemical control has as a total

strategy been seriously questioned in recent years by some entomologists.

For example, C. B. Huffaker and Ray F. Smith of the Department of Entomological

Sciences of the University of California, Berkeley, have written that:

        There was  (in  conventional  chemical control)  a general
        disregard  of  the fact that  even the simplest agricultural
        system presents  a maze  of- delicately  balanced ecological
        intricacies.   Elaborate  calender treatment  schedules
        were developed  on  a prophylactic basis.   Both approaches
        not only  ignore  the complexity of agroecosystems,  but
        both  of  them  ignored the  two  giants of  nature's own
        system of  pest  control,  i.e.,  over-the-eons-evo I ved
        p I an-t resistance and control  by natural  enemies.

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                                                               36
      Since the single  objective of the  unilateral  broad-spectrum
      chemical approach  was  total and  lasting  destruction of  the
      pests, serious  disturbances soon arose.  Target species
      counterattacked,  developing resistance  to one material
      after another.  Adverse effects on  natural  enemies and
      stimulating effects  on some pests  have  released the
      target species  to  rapid resurgence  and  caused minor or
      innocuous ones .to  become serious pests.   Increasing dosages,
      and more kinds  of,  and more frequent,  chemical applications
      have led to pesticide  addiction from  which  .it is difficult
      to withdraw.  Problems of residues  and  adverse environmental
      effects at places  even far removed  from  treated areas have
      led to public clamor against all pesticides.

      We do not believe  that our insect  problems  would simply
      disappear if we would  stop using insecticides but we  do  not
      believe the consequences would be  quite  as  intense,
      ubiquitous or prolonged as some would  have  us believe.
      Yet, this public  clamor, indeed, threatens  to deny the
      research needed to assure availability  of frpoper chemicals
      to save our crops  when needed and,  as  well, to perpetuate
      an enlightened, lasting control program.

      The unilateral  chemical  approach  has not  even  had  the
      prolonged success  in the  control  of the  initial  insect
      targets that was first suggested.    Insect problems  have
      not lessened;  they are even  greater than  before.   We
      are using more  chemicals  and  against more species  of
      insects than ever before.   Some  agricaltural  enterprises
      are threatened  with  disaster  from mounting  pest  control
      costs,  yet poor pest control.^


    Table 3 tabulates the most important insect  and insect-like pest species

in California and the degree to which they have  developed resistance to

insecticides and are involved in  resurgence or secondary outbreak problems.

The table gives stunning  insight  into the breakdown of the chemical control

strategy in California, an area of advanced agro-technology.

    The alternative concept that Huffaker and Smith, and others, have  pro-

posed  is integrated pest  management or integrated control.  Integrated  pest

management strategies attempt to  take into account all the relevant factors

that impinge upon the agroecosystem.  For example, Pimentel lists: pesticides,

non-target species, pathogens, insects, weeds, pollinators, human health,

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                                                                           37
biocontrol agents, rotations, soil preparations, fertilizer, diversity,

water, plant density, sanitation and plant genetics as relevant factors.

According to Pimentel, "the total costs, benefits, and risks of the factors

in the system can be evaluated and used as a basis for making sound decisions

about pest control measures."  Pimentel concludes that, in general, pesticide

use in the United States could be significantly reduced if,

     1.  Bioenvironmental pest'controls which were placed with pesticides
       .  were again put into full practice wherever possible.

     2.  Some or all of the 60 million acres currently diverted at a
         cost of $3 to $4 billion annually were planted to help balance
         the increased crop loss resulting from a reduction in pesticide
         use.  (In recent years this has been done^)

     3.  A "treat-when-necessary" program based on monitoring pest
         populations was . initiated and aircraft spray drift was
         reduced.
     4.  The public were educated to be concerned for the safety of
         their fruits, vegetables, and other produce and attach less
         importance to "cosmetic appearance."'

     While a specific pest may be suppressed by a number of alternative

means, such as chemical control, biological control or cultural control,

integrated pest- management is an overall strategy for maintaining the health

and productivity of the agro-ecosystem.  Integrated pest management includes

the option not to control for a pest when it is determined that the costs

outweigh the benefits.  As Luck, van den Bosch and Garcia have recently

commented:

     This (integrated pest management) represents a change in the
     philosophy of pest control: it utilizes and builds upon the
     natural mortality that affects any pest population, it tolerates
     uneconomic densities of pests and it aguments natural control with
     a variety of techniqeus that are tailored to be minimally dis-
     ruptive.  . . . Thus, there are various techniques and materials
     that can be utilized in pest management systems in which knowledge
     of the species and their ecosystems permit the integration of
     natural and artificial mortality factors in mutually augmentative

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                                                                       38
     programs.   These can lead to maximum pest control  efficiency with
     miminum ecological impact ....   Under this concept chemical
     control reverts from its present role of a single  strategy to that
     of a mere  tactic.'  Confusion of the latter with the former is a
     basic reason  for much of our current pest control  dilemma.^0

     The philosophy of integrated pest management, when carried to its

logical conclusion, implies that, in addition to the immediate welfare of

the grower, the welfare of other groups in society should be considered in

pest management decisions.  However, it is unlikely that this will be the

case when the pest control advisor is employed directly by, and in the

interests of the grower.  As was stated at the 1973 IB? Integrated Pest

Management Conference on Economic Injury Evaluations:

     There  is often  a conflict  betaeen  farmers and  the rest  of
     society.   Farmers on one  hand make  decisions  which directly
     affect production costs or yields  and thus  influence  profits
     whereas  society  may consider a pesticide  free  environment
     to be  more important than  pest control  in an  individual
     field,  farm or  area.   Therefore, we  must  consider who
     benefits from Pest Management Programs; both  farmers
     and  society should benefit from these programs  if they
     are  to be  truly  successful.

     The  costsof using pesticides may be  greater than the
     benefits which  we usually  associate  with  increased
     yield  or better  quality because of  externalities.
     For  example,  in  many of our  cost/benefit  calculations
     we exclude damage to the environment, the hazards in
     using  pesticides etc., and base our  calculations of
     benefits only on increased yield or  quality.11

     Feder and Regev have considered the case  in  which agricultural  pests are

 conceptualized as a common property  resource and  biological interactions and

 environmental  effects are taken into account.  When this .kind of a  situation

 is  mathematically modeled and the pest control decision expected from a

 single grower  is  compared to the decision that would be made as the  resulc

 of  a social optimization rule,  the following results are  obtained:

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                                                                             39


     The stock externalities inherent in the decentralized solution
     lead to myopic decision rules that are not optimal from society's
     viewpoint.  An additional external effect for some pesticides is
     pollution of the environment by pesticide residue.  A centralized
     control solution incorporates the population dynamics and environ-
     mental effects.  The optical decision rule then equates marginal
     benefits with monetary marginal cost of control plus the user
     cost.  The three elements comprising the user cost involve the
     effect of the marginal-unit of control on the stocks of pest,
     predator and residue.

     This is not to say that pest control must be conducted by a central

authority, only that it would be preferable to employ incentives or regula-

tion so. that the sum of individual grower pest control decisions would

approach the socially optimal decision.

     While the integrated pest management approach, even when applied for

the direct benefit of a client grower, takes more of the total social welfare

into account than the conventional chemical control approach, there is still

plenty of room for conflicting goals.  An economic threshold level of popula-

tion which is determined on the basis of meeting a cosmetic quality standard

for the benefit of the grower may be socially inappropriate if, in addition,  .

the welfare of the farai worker or the long-term stability of the agro-ecosystem
   not
is/taken into account.  Just how such factors are to be accommodated is a

political and economic problem.


SOURCES OF PEST MANAGEMENT INFORMATION

     The particular approach to pest management that growers adopt depends on

the availability  and the effectiveness of various pest management informa-

tion sources.  Von Rumker has studied this problem in relation to com and

soybean growers in Iowa and Illinois.  It is clear from the von Rumker study

that the conventional chemical control approach dominates in Iowa and

Illinois corn and soybean farming.  According to von Rumker:

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                                                                             40
     A substantial portion of the corn soil insecticide uses appear
     unnecessary or wasteful, while most growers consider their
     individual decisions to use a preventive treatment a necessary
     protection against possible yield losses.^

On sources of pest management information von Rumker comments:

     There are currently no effective, unbiased channels through
     which growers could receive such information regularly and in a
     timely fashion from the public agency originators of the
     information.^-

     The available information indicates that the situation iri California

with regard to pest management information is similar to Illinois and Iowa.

However, there are some notable differences.  In California integrated pest

management information is available not just from some public sources but

it is also available from some private independent pest management consultants.

Most of these private consultants, who have no ties to chemical companies

and sell their professional advice rather than chemicals, are members of

the Association of Applied Insect Ecologists (AAIE), a professional society

which explicitly endorses integrated pest management.  The AAIE defines

Integrated Pest Management as "The modern concept of careful monitoring of

crops for insect populations, recognition of economic damage thresholds and

avoidance of pesticide applications on simply a preventative schedule.  IPM

includes environmental and cultural management, biological control as well

as the careful use of pesticides."  AAIE's professional and general member-

ship numbers about 100.      This can be compared to the force of state

licensed pest control advisors employed directly by private agricultural

chemical companies in California.  To determine this Dr. Christine Merritt,

a Staff Research Associate in the Department of Entomological Sciences,

University of California, Berkeley, has polled the 133 California agricultural

chemical firms listed in the directory of the Western Agricultural Chemical

Association.  Ninety-five of the firms responded to the poll: 89 percent of

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                                                                            41
the firms employed agricultural pest control advisors; the total number of
the advisors employed by the firms was 1648.  This was a slight underesti-
mation because one of the largest agricultural chemical companies did not
specify the number of advisors it employs.  If the average 17.35 advisors
per firm is projected to all 133 firms the number of advisors would be
about 2300.  Thus, in the private sector the number of pest control advisors
that would tend to favor the conventional chemical control concept far
out-numbers those who endorse integrated pest management.  In fact the top
five agricultural chemical firms alone employ in excess of 550 advisors,
more than five times the membership of AAIE.  The bulk of California's pest
control advisors are in the direct employ of private agricultural chemical
companies and they far out-number the combined advisors, private and public,
that are available in California to provide independent pest management
 j *   16
advice.
     Gutierrez and Loew have polled 1200 California cotton growers on their
preferred source of pest management information.  Of the 415 growers who
responded, 66 percent listed chemical company representatives as the pre-
ferred source, 13 percent listed independent pest management consultants, and
17 percent listed themselves.  Fifty-seven percent of the growers reported
using a prophylactic miticide, a strong indication of a conventional
chemical control approach.  Gutierrez and Loew could detect no correlation
between the grower's decision to use integrated pest management and grower
experience or size.    The 13 percent figure for the use of independent pest
management consultants may be atypical because integrated pest management
has made more head-way into cotton than any other crop in California.
     Based on an intensive survey of pest control practices in cotton,
alfalfa hay, processing tomatoes, and grapes in Calfiomia, Wayne Willey

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                                                                   42
determined that, in 1972,8.7 percent  of these crops, by acreage, were under

independent pest management.  It was  also determined that with sugar beets,

nuts, deciduous fruits, vegetables, melons,  and alfalfa seed, 6.7 percent

of the crops were under independent pest management.  The total revenue of

the independent pest management consulting industry in 1972 was $3 million.
                                                              18
This compares to a total pest control industry revenue of $600 million.

    Data from a survey of the California citrus industry indicates that

about 6 percent of California orange  growers utilized independent pest

               19
managers in 1972.

    In evaluating the factors which  determine growers' decision to adopt, or

not to adopt, integrated pest management, Willey observes that:

     Several  consultants  indicated  that  they  would not  seek  to
     expand the  acreage served  until  they  become certain  that
     existing clients  are  satisfied.  The  implication  is  that
     the growers  must  develop enough  confidence in the  consultant
     so that an  occasional  less  than "satisfactory performance
     will be overlooked.   Such  poor performance will inevitably
     happen- to even the best consultant  due to  the complexity
     of the agroecosystem  that  he attempts  to  control.   The
     crux of the  problem  vis-a-vis  the grower's confidence is
     that when poor performance  occurs,  the tendency is  to
     place the blame on the consultant's  low  pesticide  use
     at certain  times  when  pest  populations are present.
     However, "the fact often is  that  a heavier  use of pesticides
     would not have provided economically  viable control.
     Subject to  massive pesticide advertisement via the
     media and salesmanship centered  around an  exploitation
     of the grower's ever  present fear of  losses, the tendency
     among growers to  single out the  consultant's low pesticide
     use p.ersists.   Instances in which pesticide salesmen
     have approached growers immediately  after  a consultant  has
     indicated that a  pesticide  treatment  should not be
     undertaken  have occurred.   The salesmanf's  strategy  in
     these cases  was to "fear talk" the  grower  into a  lack
     of confidence in  the  consultant's judgement.  Such  fear
     is easy to  exploit when a  pest is present  and can  be
     visually  identified  for the grower  by  the  salesman.   Thus,
     the uncertainty to the consultant which  accompanies  his
     attempt to  gain the  confidence of a  sufficient number of
     clients i£iQ2 key  factor in  the availability of information
     serv i ces . A

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                                                                            43
     It should be added chat the existence of stringent cosmetic or pest



contaminant quality standards can only magnify the "fear  factor" whether



it originates in the promotional activities of the pesticide salesman or



the mind of the grower.  In this regard, we know of at least two reported



cases where growers deliberately sprayed beneficial insects because they



were afraid of having marketing organizations find insect "contamination"



in their fields.  In one case a Syrphid fly-larva (an aphid predator) was



Interpreted as a looper infestation by a lettuce packer, resulting in re-



jection of the crop; in another case a tomato grower sprayed his crop because


                                    21
of an "infestation" of lady beetles.





REGULATION OF PESTICIDE USE IN CALIFORNIA



     California has a well developed system of pesticide use regulation.



Pesticide dealers, pest control operators, and pest control advisors are



licensed by the State Department of Food and Agriculture.  Pesticide use



permits must be obtained by operators and users in the case of restricted



substances  from County Agricultural Commissioners and pesticide use reports



must be filed with the County Commissioners.  The County Commissioners are



also responsible for enforcing pesticide use regulations, including the



State farm worker safety regulations which preempt those promulgated by the


                                22
Environmental Protection Agency.



     California provisions for the protection'of farm-worker health are more



comprehensive than the federal EPA provisions which apply to most states in



which state provisions do not exist.



                                                              According to


           23
Greenstone,   the California provisions, which are promulgated by the



California Department of Health, are similar to the kind of provisions non-



agricultural workers enjoy under the federal Occupational Safety and Health

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                                                                            44
    (OSHA).  Greenstone considers the exemption of agricultural workers from

     unjustifiable discrimination against  farm workers.' According to

Greenstone:

     The Environmental Protection Agency has not, by its promulgation
     of pesticide reentry regulations similar in form to those originally
   .  a-nd tentatively formulated by OSHA, actually exercised authority
     over agricultural working conditions, because its standards en-
     vision workers as only one element in an ecological balancing
     process.  . . . EPA can give worker protection no greater weight;
     protection of the^ work force is defined as incidental to a con-
     sideration of the" environment as a whole. . . .No language man-
     dating a balance of economic, social, and ecological benefits can
     replace the assurance of a workers' bill of rights.  Worker health
     and safety *r>A the legislation which guarantees it may not be
     compromised, as OSHA early recognized.^


ENFORCEMENT     .

     While the California farm worker safety provisions come closer to the

 SEA ideal than federal EPA provisions, several observers have expressed

reservations about the efficacy of enforcement by California County Agricultural

Commissioners.

     Cunning, as well as others, is concerned about the political origin  .

of County Agricultural Commissioners, noting that they are "hired and fired

by the county board of supervisors, which in rural counties generally is

dominated by local growers."  The Commissioners see themselves as politically

neutral.  In response to a recently proposed bill which would have required

the election of County Agricultural Commissioners "to assure agricultural

workers are given as much attention as the growers," the California

Agricultural Commissioners Association stated that the commissioners "are

the least politically-oriented group of any, and if we had to start playing

                                                       25
politics our office simply would not function as well."

     Cunning also noted that when pest control operators violate regulations,

sanctions are weak.  A criminal sanction exists, but it is rarely used.   Even .

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                                                                            45
when it is sought by commissioners, district attorneys throughout California
                              26
have been reluctant to comply.    Dunning noted the use in Imperial County

of mass appeals' by the Agricultural Commissioner:

     For example, pest control operators have been asked to avoid
     spraying fields with workers in them; to take precautions against
     the drift of sulphur, an irritant to the eyes, onto residential
     properties; and to avoid applications which do not conform to the
     product's registration, unless special authorization is obtained.
     All the acts cautioned against are unlawful, and the warnings
     suggest that the Agricultural Commissioner's office has had reason
     to believe they were taking place with some frequency.  A general
     warning may be helpful in curbing such violations, but the use of
     this technique also seems to reflect the present lack of any 'middle
     level1 sanction for violations by pest control operators. 7
           28
     Howitt   reports the following information on the level of enforcement

activities of all County Commissioners in California:

Fiscal Year   District Attorney       Court Citations     License Suspensions
	    Hearings	        Issued	     	

  1969-70           2                      3                  56
  1970-71           6                      3                  70
  -1971-72           -                      2                  70
  1972-73           -                     23                 117

     This level of enforcement activity is in reference to several thousand

pest control advisors and applicators.  Chronic and acute pesticide poisoning

remains a substantial problem for California's farmworkers and others

associated with pesticide usage at this current level of enforcement._

     Dunning also found the job permit system, upon which compliance with

pesticide use regulations is based, to be cumbersome and inadequate.

According to Dunning:

     With the manpower available, this is inevitable, for the quantity
     of applications forbids meaningful individual review within the
     time available.  Furthermore, there is insufficient information
     upon which to base a decision.  Permit applications presently
     show only the pesticide(s), location of the area to be treated,
     grower's name and address, total acres to be treated, commodity,
     pest(s), type of material (dust, spray, or other)  and method of
     application.  This enables one to determine some basics on label
     compliance, but little else.  If pesticide use were limited to
     "need," for example, and if the permit system were to be locked

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                                                                            46
     to for enforcement of that concept, then the regulatory officials
     engaged in review of permit applications would have to have, far  •
     more information in order to make intelligent decisions.  In fact,
     given the complexity of pest control, it would probably be necessary
     for an official to visit the field to be treated under the permit
     for which application is made.  Ultimately the most serious
     contemporary need in pesticide use is sound judgement exercised
     by decision makers with ecological awareness, and this need will
     not be met simply by insistence upon filling out and review of
     forms.29

     Indeed, Agricultural Commissioners report that they needed more man-

power for field inspection, and that they do not have adequate resources

to enforce worker safety regulations.


LICENSING PROCEDURES

     Imperial County pioneered all licensing of pest control advisers.  Pest

control advisers are required to register, pass a qualifying examination

and pay a license fee.  It might be thought that the examination require-

ment would improve the quality of pest control advice available to growers

but, according to Dunning, "the examination specified refers to knowledge

of pesticides, not pest control . . . ."  No one in Imperial County who had

been engaged in the pesticide business has been excluded as a result of the

examination.

     Since the Dunning study, the examination requirement for pest control

advisers has become a state-wide requirement.  Barry Wilk, who has a Masters

Degree in entomology and has worked as a graduate Research Assistant and

Staff Research Associate in entomology for five years, took and passed the

state examination in 1975.  Wilk felt that anybody who carefully read the

study guides provided by the state could pass the examination and that

passage of the examination would not qualify the individual to be a

competent pest control advisor.   Wilk spoke to another person taking the

exam who stated that he had taken a course at Modesto Junior College in

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                                                                            47
which he had been drilled in many questions which were identical or similar



to those which appeared on the examination.  Additionally, a grower friend who



had previously worked for a major agricultural chemical company in Los



Angeles, offered Wilk a large stack of past exam questions when Wilk



informed him that he intended to take the examination.  Wilk said that his



impression was that these questions were available to the employees of


                                                                         -  32
agricultural chemical companies who were preparing to take the examination.



Ironically, during the course of our investigation, we were refused copies



of past examinations by CDF&A officers on the grounds that the validity of



the examination depended on this security measure.



     Wilk proposed that a more valid certification procedure would require



a series of courses in pest management, similar to certain pest management



courses taught at the University of California, supervised field experience,



and" an  examination which required the individual to explain how he would



deal with specific pest management situations and scientific justification



for the proposed course of action.



     Everett Dietrick, a commercial insectary owner and licensed pest



control advisor, told us that his secretary (clerk, typist, receptionist)



with no prior pest management training, acting on a dare,  studied for the pest contrc



advisor's examination, passed it and is now a licensed advisor.  It would



seem, from what has just been described, that the examining and licensing



standards for California pest control advisors hardly rank with those


                                              34
required in high quality professions.  Dunning   proposes  that the up-grading



of pest control advisor quality could be approached by the simple measure



of making it illegal for any licensed pest control advis°r to be an enployee



of, or have financial interest in any agricultural chemical company,  or any



company which has a financial interest in any pest control technology.

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                                                                            43


STATE ACTION

     Dunning found basic failures at the state level in taking the initiative

on pesticide policy.  In 1971 the State's Director of Agriculture determined

that integrated control would be officially supported as the best method for

dealing with agricultural pest problems, but Dunning notes that little has

                                     36
been done to implement this decision.

     According to Dunning the Department of Food and Agriculture has also

failed to follow through on state legislation, enacted in 1969, which re-

quired the development of "an orderly program for the continuous evaluation

of all economic poisons (pesticides) actually registered" in order to

"endeavor to eliminate from use in the state any economic poison which

endangers the agricultural or nonagricultural environment, if not beneficial

for the purposes for which it is sold, or is misrepresented."  The Department

of Agriculture has stated that it simply did not have the resources to carry

out such an ambitious program.    However, the Department has been

criticized by the State's Legislative Analyst for wasting its resources:

     One reason the registration workload is not handled on a timely
     basis is because the registration staff spends a large portion
     of its time correcting errors in the applications for registra-
     tion or requesting copies of the proposed label.  This time-
     consuming and expensive practice of correcting errors should be
     curtailed.  It is the responsibility of the registrant prior to
     submitting the application to assure that it is correct.  The
     Department now permits itself to be used as a service arm of
     the industry which it is to regulate.  Much of the time which
     should be spent implementing new statutory policies is diverted
     to performing a service for the most inefficient registrants of
     economic poisons.38

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                                                                        49
                THE IMPACT OF PESTICIDE USE IN CALIFORNIA





     The ultimate purpose of this study and the reason for preparing this



report has been to ascertain, if possible, whether statuatory or privately



imposed produce quality standards increase the hazard posed by pesticides



(insecticides in particular) to human health and the environment.  To do



this we chose California as our laboratory because it was convenient to



us, it has a great diversity of crops which enter the specialty fresh



produce or processing markets, it has pioneered through legislation and



private action the imposition of cosmetic and pest contamination standards,



and it is the nation's most intensive pesticide user.



     Pesticides are hazardous;  for example the modern synthetic insecti-



cides are overwhelmingly either''nerve poisons or cholinesterase inhibitors



which affect exposed insects and humans in exactly the same ways.  In



addition, some of these insecticides are actual or suspected carcinogens,



teratogens and mutagens.  The other classes of pesticides such as the



.herbicides, fungicides and rodenticides also include materials which are



hazardous to human health and to the environment.



     There is a considerable literature on the impact of pesticides on



wildlife and other lower life forms ranging from fish, birds and mammals


              39 40 41
to honey bees.  *  '      Suffice it to say, this impact is often severe.



On the other hand there is a paucity of organized information on the



effect of these materials on the food chains and food webs in our agro-



ecosystems in which arthropods play a fundamental role.  This in unfortunate



because much of the ecological backlash, and hence the resultant treadmill



effect of pesticide usage in crops (and other resourcas too), results from

-------
                                                                        50

the disruption of insect communities by insecticides and other pesticides
(e.g., fungicides).
     As for human health impacts, there is no existing systematic review of
evidence concerning the effects of pesticide use on the health status of
farmers, farmworkers,  pesticide applicators or the general public, either
for California or the nation as a whole.  However, the official report
                                                                  42
of more than 1300 human pesticide poisonings in California in 1975   indicates
that adverse effects of pesticides on human health is a serious and continuing
environmental problem deriving from crop protsction.  Indeed, if we
accept the public pronouncements of Dr. Ephraim- Kahn, Chief, Epidemiological
Studies Laboratory, California Department of Health, that the reported
poisonings only represent about 1% of the actual cases of pesticide caused
             43
intoxication,   the list of "official" poisonings is but the tiny tip of
a disturbingly large toxic iceberg.  Dr. Kahn not only supports his con-
tention, with data developed fay himself, but he is further backed by a
                                                 44
1969 study by the California Department of Health   which revealed that
fewer than 1% of farmworkers with pesticide-caused illnesses serious enough
to require treatment reported their illnesses via the worker's compensation
channel.  And, this is the channel through which statistics are largely
obtained to compile the "official" annual reports of illnesses.
     A later study by Richard Howitt of the Department of Agricultural
Economics, University of California, Davis reported a lower discrepancy
between actual pesticide-caused illnesses and those reported through
workmen's compensation.  In this early assessment of his data Howitt
indicated that roughly half as many illnesses were reported as actually
         45
occurred.    However in recent testimony before a hearing of the California
Senate Committee on Health and Welfare, Howitt indicated that only about

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                              •                                          51





5 percent of the illnesses are reported.    The findings of Kahn and Howitt




are highly disturbing for they clearly indicate that there is a very high




risk of illness from occupational exposure to organophosphate and other




pesticides.  In fact, comparing the number of working hours lost to pesticide




illness per 1,000 man hours (5.25 hrs/1000 man hrs.) with that in the other




most hazardous occupation in California,"the construction industry.(4.9 •"


                                     '•'.'' 47 -     ••        • - •

hrs lost to illness and injury/1000 man hours),   the farmworker appears to




have one of the most, if not the most, dangerous occupations in California.




     There is also evidence of widespread occurrence of chronic, low grade




(virtually symptomless) intoxication among farmworkers (and by inference.  •




others in the general populace, too) which certainly magnifies the pesticide



poisoning problem.




     A statement by Dr. Thomas Milby points up the nature of the chronic



toxicity problem.  Milby states:  "our research leads us to suspect,



furthermore, that there is probably an even more common form of adverse




effect, one which is even slower to develop and even subtler in its




manifestations.  The individual may not feel nauseated, dizzy, etc., he




may not lose any time from work at all,, but he may have a little more




difficulty getting to sleep at night.  His appetite may be a little less




hearty than it was.  And there may be a gradual impairment of his hand-eye.




coordination and other neuromuscular functions, so that he is able to




pick 10Z fewer oranges or peaches, say, than formerly.  The affected



individual may not notice the difference at all, or if he. notices, .will




most likely shrug and ascribe it to 'getting older.'  Impairment of neuro-
                         i


muscular functions is not measurable through the cholinesterase test



referred to a moment ago, but we in California are working on new methods


                                                             48
for directly measuring these kinds of pesticide 'poisoning'."

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                                                                        52






     Several studies in the. U.S.A. and abroad involving human and animal




subjects indicate that chronic exposure to organophosphate and other




pesticides can have neuromuscular effects, that it can affect such factors




as serum creatine phosphate, glutonic oxalic transaminase, cholesterol, and




urine protein levels, and can cause damage to such organs as the liver and



        49,50,51,52,53,54,55,56,57,58,59,60  _       ...,.
kidneys.  »>»»»»»»»»»    xhe possibility of carcinogenic,




teratogenic, and mutagenic effect is another factor that must be taken




into account in pesticide usage.




     To sum up, then, there is-evidence for several adverse health effects




resulting from chronic pesticide exposure.  These include damage to the




nervous system with such accompanying effects as muscular weakness,




difficulty in sleeping, damage to the liver and kidneys, and possible




development of cancer.  These effects can occur even when no acute symptoms




(such as those accompanying cholinesterase inhibition)  are present, and may




occur even when cholinesterase depression is not detectable.  Virtually, no




work has been done which would indicate a dose-response relation for any of




these effects.  At this time we can only conclude that at present levels




of exposure, long-term contact with pesticides is likely to produce one or




more of these effects among a large number of persons occupationally




exposed.  Any sizeable reduction in pesticide use, therefore, would probably




make a goodly contribution to the health of persons occupationally associated




with pesticides, or otherwise exposed to pesticide residues.




     In this latter connection^ the general public is exposed to pesticides




largely in the form of residues in produce that has been sprayed in the




field.  These residues are generally of magnitudes of 1 ppm, or less.  Such




residues are too small to cause any acute effects, the amount ingested as




residues on produce being far less than those impacting on persons occupationally

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                                                                       53






exposed.  Although there are no acute effects from such exposures,  the




possibility exists that certain chronic effects can be caused by continued




.ingestion of pesticide residues.




     Not the least consideration here, is  the possible synergistic  or




potentiation effect  that may occur where mixtures of molecules  (which may




not necessarily be exclusively pesticidal) occur.  Synergism and potentiation




are known to occur where mixtures of pesticides or pesticides and other




chemicals exist.  Thus, whether exposure occurs in the field or through




ingestion of minute  residue of the chemicals in.produce, the phenomena




of synergism and potentiation must be of concern to us and measures taken




to minimize the chances of their occurrence.




     Thus, until it  can be shown that the  types of low level exposure to




pesticides just described are not a real threat to human health, every




effort  should be made to keep pesticide usage at a minimun. Specifically,




in -food production the use of pesticides should be related to maintaining




or increasing yields and to assuring the real needs of produce quality.




But, in this usage of pesticides the goals of high yield and quality should




not be  attained at undue risk to human health and environmental quality.




In this latter connection it is particularly important that frivolous or




superfluous pesticide usage based on invalid cosmetic or pest contamination




standards be avoided.

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                                                                        54
Pesticide Use and Regulations—Footnotes




 1.  Pesticide Use Report, 1973, Agircultural Chemicals and Feed, California




     Department of Food and Agriculture, Sacramento, California,  p. 289.




 2.  Harrison C. Dunning, "Pests, Poisons, and the Living Law:  the Control




     of Pesticides in California's Imperial Valley," Ecology Law Quarterly,




     Fall, 1972.  p. 636n.




 3.  California Agriculture 1970, A Report on California's Principle Crop




     and Livestock Commodities, California Department of Agriculture, 1971.




 4.  David Pimentel, "Extent of Pesticide Use, Food Supply and Pollution,"




     New York Entomological Society, March, 1973.   p. 15.




 5.  C. B. Christensen,' Pesticide Use Report, 1974, California Department




     of Food and Agriculture, Sacramento, California, 1975.




 6.  Ibid, p. 179.




 7.  Anonymous, Statistical Abstracts of California, Sacramento, California,




 8.  C. B. Huffaker and Ray F. Smith, "The IBP Program on the Strategies and




     Tactics of Pest Management," Proceedings, Annual Tall Timbers Conference




     on Ecological Animal Control by Habitat Management, Feb. 24-25, 1972.




     p. 220.




 9.  Pimentel, op. cit., pp. 27, 29.




10.  Robert F. Luck, R. van den Bosch and R. Garcia, "Chemical Insect Control,




     A Troubled Pest Management Strategy," Bio-Science, (in press).




11.  "The Principles, Strategies and Tactics of Pest Population Regulation




     and Control in Major Crop Ecosystems," Proceedings, IBP Integrated




     Pest Management Conference on Economic Injury Evaluation, April 5,  6,




     1973, Dallas, Texas,  p. 18.

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                                                                        55






12.  G. Feder and U. Reigev, "Biological Interactions and Environmental




     Effects in the Economics of Pest Control", Journal of Environmental




     Economics and Management, 2, 75-91 (1975).




13.  Rosemarie Von Rumker, Farmer's Pesticide Use Decisions and Attitudes on




     Alternate Crop Protection Methods,'U. S. Environmental Protection Agency,




     Washington, D. C., 1974.  p. 3.




14.  Ibid., pp. 5, 6.




15.  IPMSA brochure, IPMSA, 100 North Winshester Blvd., Suite 260,  Santa




     Clara, California 95050.




16.  C. M. Merritt, Department of Entomological Sciences, University of




     California, Berkeley, personal communication, January, 1975.




17.  A. Gutierrez and W. Loew, "Pest Control Decision Making in California




     Cotton", in progesss.




18.  W. R. Willey, "The Diffussion of Pest Management Information Technology",




     doctoral thesis, University of California, Berkeley, 1974. pp. 10, 11.




19.  D. C. Hall, ja£ al^., "The Performance of Independent Pest Management




     Consultants in San Joaquin Cotton and Citrus", California Agriculture,




     October, 1975, p. 12.




20.  Willey, op. cit., p. 105.




21.  Personal communications with growers who wish to remain anonymous.




22.  Delvan W. Dean, pers. comm., Chemicals and Feed Division,  California




     Department of Food and Agriculture,  July 15,  1974.




23.  E. S. Greenstone, "Farmworkers in Jeopardy:  OSHA, EPA and the  Pesticide




     Hazard", Ecology Law Quarterly, Vol.  5, No. 1, p.  69,  1975.




24.  Ibid.. p. 121.




25.  Dunning, op. cit., pp. 639, 640.

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                                                                        56






26.  Dunning, op. cit., p. 651.




27.  Dunning, op. cit., p. 652.




28.  R. Howitt, doctoral thesis, University of California, Davis, 1975.




29.  Dunning, op. £it_., p. 648.




30.  Robert Howie, pers. comm., August 6, 1974; Claude FinneJL, pers. conm.




     August 8, 1974.




31.  Dunning, op. cit., p. 655.




3.2.  Barry Wilk, pers. conm., March, 1975.




33.  Pers. comm. with State Department of Food and Agriculture, Licensing




     Division, January, 1975.




34.  Everett J. Dietrick, Riverside, California, personal communication.




35.  Dunning, op. cit., p. 675.




36.  Dunning, op. cit., p. 675.




37.  Dunning-, op. cit., p. 678.




38.  Dunning, op. cit., p. 678n.




39.  D. Pimentel, Ecological effects of pesticides on non-target species.




     Executive Office of the President, Office of Science and Technology.




     June, 1971.  U. S. Printing Office Stock No. 6106-0029.  229 pp.




40.  R. L. Rudd, Pesticides and the living landscape.  Univ. of Wise. Press.




     320 pp.  1964.




41.  R. K. Tucker and D. G. Crabtree, Handbook of toxicity of pesticides




     to wildlife.  Resource Publication No. 84.  U. S. Dept. Inter. Fish




     and Wildlife Serv.  131 pp.  1970.




42.  State of California, Department of Health and Department of Food and




     Agriculture.  Illness of employed persons reported by physicians to




     the state as due to exposure to pesticides or their residues according




     to type of illness.  1975.  1 page.

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                                                                        57






43.  Dr. Kahn made this comment in a seminar held in the Biological Sciences




     Department, Stanford University, on May 3, 1976.  During this dis-




     cussion he presented data supportive of his conclusion.




44.  California Community Studies on Pesticides, Contract Report #19.




     Jan. 1-Dec. 15, 1969.




45.  R. Howitt, Ph.D. Thesis, University of California, Davis.  1975.




46.  Hearing held in Sacramento on November 16, 1976.




47.  Howitt, op. cit.




43.  T. Milby, Testimony on Federal Environmental Control Act of 1971.




     Hearings before Senate Subcommittee on Environment Serial #92-80,  p.  397.




49.  K. Jager, et al., Br. J. Irid. Med. 27: 273.  1970.




50.  Dreuth, et al., Arch Envir. Health.  25: 395.  Dec., 1972.




51.  L. Schmertzler, "Achilles tendon reflex force as a sensitive test




     for organophoshate exposure."  To be published.




52.  Rayner, et al., pers. comm., Chem. Path, and Pharm. 4(3).  Nov. 1972.




53.  F. Medred, Residue Reviews 6: 42.




54.  L. Reiter, G. Talens, D. Woolie, Proc. West Pharm. Soc. 15: 123, 1972.




55.  Tocci, et al., Ind. Med. Sur. 38(6): 188, 1969.




56.  J. Davies, In Proc. of Nat'l. Conf. on Protective Clothing and Safety




     for Pesticide Workers.  Atlanta, Ga., May, 1972.




57.  M. Wasserman and D. Wasserman, In "Fate of Insecticides in the Environment."




     S. A. Tahori (Ed.), Butterworth, London.  1972.  p. 521.




58.  F. Kaloyonova-Siaieomova, Report at meeting of subcommittee on Pesticides




     of International Association of Occupational Health.  Amsterdam, 1971.




     Summary of Conference in Arch.  Envir. Health 25, Dec., 1972.

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                                                                        58
59.  M. Boguzs, Clin Chim ACTA 19: 367.  1968.




60.  T. Nakazawa and T. Nakazawa, J. Japan Assn. Rural. MeH. -22(6): 756.




     1974.

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                                                                            59
CHAPTER 3.  AN IN-DEPTH CASE STUDY OF PESTICIDE USE FOR COSMETIC QUALITY



            STANDARDS.





     In this chapter a specific crop is assessed regarding cosmetic quality



standards and their possible effects on pesticide use decisions.  -The crop,



California navel and Valencia oranges, is primarily a fresh market one.



Cosmetic quality standards may also play an important role in crops pro-



duced entirely for the processing market, as we have indicated in Chapter 1.





CITRUS



I.  SUPPLY AND DEMAND



     CITRUS ACREAGE AND PRODUCTION



     The citrus industry is an important part of California agriculture.



California oranges ranked as the state's number one crop between 1930 and



1950 in terms of cash value.  Since 1950 citrus has fallen in relative



importance, but was still the number ten crop in the state in 1969.   Navel



and Valencia oranges account for seventy percent of the California-Arizona


                                                     2
citrus crop, while lemons make up another 20 percent.   We shall restrict



most of our discussion to the orange crop.



     THE FRESH MARKZT



     California Navel and Valencia varieties tend to have a lower juice yield



than Florida oranges, a more cosmetically attractive exterior color, and they



tend to have a higher level of citric and ascorbic acid which are associated



with taste and nutrition.    Since the California citrus industry was more



or less fully developed before the advent of frozen orange juice concentrate



it is geared, in other ways, toward the fresh market.  The quality standards

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                                                                          60
which prevail in California are designed to meet the demands of the fresh



market.  The major marketing cooperative of California-Arizona oranges,



Sunkist Growers, Inc. has spent many years and millions of dollars to


                                                       4
cultivate and maintain a market image for fresh citrus.   Consequently, the



financial well-being of California-Arizona orange growers has been tied to



the state of the fresh fruit market.  Table 4 gives data on the return to



California citrus growers for Navel and Valencia oranges utilized j.n the



fresh and by-products markets.  The data indicate that California-Arizona



orange growers have made little or nothing on oranges sold to the processing



market.  They must sell a large percentage of their crop to the fresh market.



This is in contrast to the Florida citrus industry where the prices received



for citrus for processing are comparable to those received for citrus for



the fresh market.



     THE PROBLEM OF OVER-PRODUCTION



     The California-Arizona citrus industry has suffered from the problem of



"over-production."  There are several possible factors that contribute to



this problem.  The per-capita consumption of fresh oranges has declined



sharply in recent years.  Between 1945 and 1960 per-capita consumption de-



clined from 37.9 pounds per year to 16.2 pounds per year.  Since 1960 the



per-capita consumption has remained essentially constant at about 16 pounds



per year.  In terms of total consumption, the utilization of fresh citrus



declined from 72 million boxes in 1945 to 38 million boxes in 1962.



     In addition to slackening per-capita demand for fresh citrus, the -grower



has been receiving a decreasing proportion of the total return on citrus.



Marketing margins, the difference between the prica paid by the consumer



and the amount received by the producer, have been increasing since 1950 for



oranges.  In particular retailer margins have increased dramatically since



1950.  It should also be noted that when supplies of oranges are low and the

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                                                                            61
retail price is high the proportionate return to growers is relatively high,


whereas when supplies of oranges are high and retail prices relatively low,


the retailer margin is relatively high.   This is a special case of the


general observation by Jamison that, "The grower demand curve is generally


price inelastic in the relevant output range while the demand facing the


marketing firm is generally elastic.  Total revenue maximization therefore


calls for opposite control policies at these two levels—e.g., growers, as a


group, gain from decreased quantities sold and marketing firms, as a group,

                             g
gain from increased supplies.


     Given this situation, of decreasing per-capita demand for fresh citrus


and a decreasing proportionate return to the grower, we might expect to see


a pattern of decreasing acreage and production of California-Arizona citrus


in the post 1950 era.  However, this is not the case.  California orange


acreage did, in fact, decline from 235,000 acres in 1945 to 132,000 acres in

     9
1961.    However, this was due primarily to the urbanization of the Los


Angeles basin.  Starting in 1960, California acreage started to increase


rapidly to about 230,000 acres in 1970.  Since 1970 California acreage in


oranges has remained fairly stable.  Orange acreage continued to decrease


in the Southern California growing region in the sixties, while there was a


steep increase in orange acreage in the Central California growing region, and


an increase of lesser magnitude in the Arizona-California Desert region.  The


increased acreage was disproportionately allocated to the production of


navel rather than Valencia oranges.


     This pattern of acreage increase in the 1960fs is explicable for the


following reasons.  Growers who were forced out of production in the Los


Angeles area due to urbanization undoubtedly received very substantial capital

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                                                                              62
gains upon the sale of their land.  It would seem logical, from the viewpoint




of an individual grower, to reinvest this capital in new orange acreage in




Central California where the weather was conducive to citrus production,




water was available and land was relatively cheap.  For navel oranges grown




in Tulare county in 1971 the cost per acre for water was $36 and the cost per




acre for taxes $64.  For San Bernardino County the respective figures were




$64 and $125. . For Valencia oranges grown in Tulare County in 1971 the cost




per acre for water was $36 and taxes were $55 per acre.  The respective




figures for Valencias grown in Orange County was $80 and $150.    It would




be logical to invest in navel rather than Valencia oranges since a higher




percentage of navels make it to the fresh market, and therefore the potential




return is higher on navels.  In addition, under the federal tax laws operative




in the 1960's citrus growers were allowed to count cash expenditures on




orchard development as capital expenses.  Thus, the investor could deduct




depreciation, cultural costs, interest, taxes and management fees associated




with establishing the citrus orchard, from other income.  After the orchard was




established the cost of planting the trees was depreciable over their useful




life.  This incentive toward "tax shelter farming" undoubtedly contributed to




the expansion in citrus acreage in Central California.  The Tax Reform Act of




1969 wiped-out the tax shelter provisions for citrus and almond orchards and




this may account, in part, for the leveling off of citrus acreage since




1970.12'13'14




     The 1950's and 1960's were also periods of increasing population and




increasing real income.  Both these factors could be expected to contribute




to an increase in the total consumption of fresh citrus.   The larger the




population, especially in California where fresh citrus consumption is

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                                                                                    63
_relatively high,  the larger the total  consumption of the fresh product.  Since


 the demand for citrus has been shown to be income elastic, that is families


 with higher incomes purchase more citrus per-capita, an increase in real


 incomes for all' families would be expected to result in an increase in


 total consumption of citrus.  If these were the expectations of the 1960s


 they have not been fulfilled by the 1970s.  The population growth-rate


 is declining as is the level of real family income.   It is not clear that


 either of these trends are likely to be reversed before 1980.


      The combined effect of these factors, some of which induced an expansion


 of citrus acreage for reasons unrelated to consumer demand, is evident in


 the data for the percentage of California-Arizona citrus that  is actually


 sold to the fresh market.  For Valencia oranges, the percentage-of the crop


 sold to the fresh market averaged about 67 percent in the period 1950-1960.


 Between I960 and 1973 the percentage of the Valencia crop sold to the fresh


 market und,er-went a steady decline, averaging 60 percent for the period


 1S60-1973.  Navels follow a similar pattern.   In the period 1950-1960,



 88 percent of the navel  crop,.on the average, was sold to the  fresh market.

                                                           16
 For the period 1960-1973 this figure dropped to 78 percent. The season


 average on-tree returns  for California oranges, which had been increasing


 between 1950 and I960 also declined between I960 and 1973-   These various


 trends .are illustrated in figures 1, 2, and 3 and Table 5-


      The situation in citrus production seems to fit the general model of


 economic behavior described by the National Commission on Food Marketing:

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                                                                           64
     For a variety of reasons bearing acreage of some perennial crops
     exhibits broad,  cyclical movements.   The basic cause of such cyclical
     movements'appears to be the tendency of producers to formulate
     expectations of future price of a commodity upon the current
     price or those prices of the recent  past.  If expectations of
     earnings are high .car a single commodity relative to those for
     alternative uses of resources in some given period of time,
     planting of the former commodity tends to increase.  As plantings
     come into bearing in a subsequent period, production rises and
     prices falls, other- things being equal.  At that time the
     cyclical movement tends to reverse.   Because of the perennial
     nature of the crop and the relatively high proportion of fixed
     to variable costs involved in bearing acreage, resource adjust-
     ments occur in a laggad and sluggish manner.  Price may remain
     comparatively low for several years  during the cyclically high
     level of bearing acreage.  In time,  the price and market mechanism
     would bring about adjustments in resource use.  In the meantime,
     owners of resources are concerned with the short run and the. hard-
     ship which the impersonal forces of  the market might invoke.
     Given this situation in California citrus,  food quality standards

take on a critical role.   Quality standards are  the mechanism by which

the citrus crop is allocated between the fresh market and the juice and

by-products market.  From the viewpoint of the entire industry this

allocation is necessary in order to stabilize the industry and maintain

adequate returns to growers as a whole.  From the viewpoint of the

individual grower, quality standards are important because his returns

become dependent upon maximizing the proportion  of his crop that is

allocated to the fresh market.

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                                                                                65
II.  COOPERATIVES AND MARKETING ORDERS .



   The situation that prevails in citrus production, the low rate of return



and fluctuating price structure, the inordinate degree of market power



of the input and retail sectors; these factors have long been recognized



by citrus growers and agricultural economists concerned with California



agriculture.  Two basic institutional arrangements have been constructed in an



attempt to  stabilize intra-seasonal and inter-seasonal   prices.and increase



the general level of grower return.  These institutions, each of which



make the grower exempt from certain provisions of anti-trust law, are the



marketing cooperative and the marketing order.



     The dominant marketing cooperative for California-Arizona citrus is



Sunkist Growers, Inc. which markets about 80 percent" of California-Arizona


                                          9 n
citrus and  represents 8,500 citrus growers.  Under the provisions of the



Capper-Volstead Act of 1922 Sunkist growers are allowed to join together



into one organization for the collective processing and marketing of their



fruit without being held in combination or conspiracy.  However,  ?n



Case-Swayne  Company, inc.y. Sunkist Growers, Inc.  the U.S. Sumpreme Court



ruled, .in 1967, that Sunkist no longer qualified for exemption under the
                                                         .'


Capper-Volstead Act because 5 percent of its membership consisted of



corporate growers having their own packing houses and 15 percent  were



private corporations and partnerships owning and operating packing houses



for profit, whose relationship to growers was defined not by a cooperative


                                                       2.3.
agreement but a cost-plus-fixed-fee marketing contract.  Since 19&7 Sunkist


                                                       22
has reorganized to comply with the Supreme Court ruling.  However, as recently



as 197^ Sunkist still listed Goodyear Tire & Rubber Company and Kaiser



Aluminum and Chemical Company among its grower-members.  The practice of



allowing giant corporations like these to take advantage of the Capper-Volstead



exemption, which was meant to give economic paver to the small  farmer,  has



been criticized by some. ^3

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                                                                               66
     Each member of Sunkist is also a member of a local association or



district exchange.  The members, whether they market through a cooperative



packing house or a private packing house licensed by Sunkist, elect



representatives at the level of the district exchange.  The most .important



lechanism of communication between 'Sunkist management and the grower-members



 Ls the annual meeting of Sunkist.  In addition, according to Sunkist repre-



 jentative, Curtis Anderson, "Many opportunities are provided each year for



 growers to attend local and central organization board, meetings, to hear


                                       24
 how their business is being conducted."  '                               .



     Sunkist has. engaged in substantial promotional activities, spending $33



 nillion between-1934 and 1960 for radio, television, newspaper and magazine



 advertisements designed to build a quality image for fresh California citrus.



In order to maintain the quality reputation of the Sunkist trade-mark, Sunkist



 issues a set of quality standards in excess of statutory state quality



 standards, which must be adhered to by all packing-houses that market 'through



 it.  (See Table 1 for comparison of Sunkist and state quality standards.)   It



 has been estimated that the Sunkist quality reputation confers a price pre-



mium of five to ten percent on Sunkist products over the prices of competitive


         26           '
 products.



     Sunkist also plays a significant role in the administration of the mar-



 keting order under which the California-Arizona orange industry operates.



 The marketing order itself specifies that five out of the eleven members on



 the Administrative Committees of the orange marketing orders shall be members



 of Sunkist.27                                            .



     The other major citrus marketing cooperative in California-Arizona is



 Pure Gold, Inc. which markets about ten percent of the crop.  The giant



vertically integrated agribusiness corporation, Tenneco, currently markets

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                                                                             67
about five percent of the California citrus crop.  Tenneco is attempting to

increase its share of the fresh produce market through aggressive marketing

which places special emphasis on the cosmetic appearance of the produce and .
                                              •                 28
on increased packaging designed to appeal to consumer reflexes.

     Taken together, the top four firms (e.g., cooperatives) in citrus mar-

keting account for about 90 percent of the market..  A concentration ratio of

this magnitude would ordinarily be taken to represent a high degree of monopoly

      29                               •        '       '              '         •
power.     Under the Capper-Volstead Act, marketing cooperatives are allowed

to possess monopoly power as long as it is not exercised to produce anti-

competitive effects.    In any case, it is doubtful that citrus marketing

cooperatives really possess the kind of monopoly power that the concentration

ratio would appear to suggest.  The marketing .cooperatives face a retail

sector that is'also highly concentrated and well coordinated.    In addition,

the over-production problem we have already described puts the marketing

cooperatives at a great disadvantage when bargaining with retailers.  The
                                •  what                                *  '    •
Capper-Volstead Act, which allows/the organization of marketing cooperatives

does not, however, allows the organization of cooperatives which function to

control the total production of citrus products..

     MARKETING ORDERS 907-908.

     The California-Arizona orange industry also functions under federal

marketing orders, the intent of which is to stabilize the price level for

oranges and to increase the net returns to growers.  These marketing orders

are made possible by the Agricultural Marketing Agreement Act of 1937, the

federal law which exempts the activities of marketing orders from certain

anti-crust provisions.

     Charles Teague, the visionary president of Sunkist, in the 1930*s and

one of the pioneers of citrus marketing orders,, explained the purpose and

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function of the citrus marketing order in a 1938 radio broadcast, in which

he stated:

     Supply and demand set the price.  When supplies are in surplus they
     must be regulated.  Otherwise prices will fall until they do not
     cover packing costs and freight.

     A small surplus is all it takes.  If unregulated, it can be just
     as disastrous as a large one.

     Regulation of supplies must take place at the source of production.
     For we are dealing with perishables.  And once a surplus of perish-
     ables is shipped to market it will be sold even if the price does
     not cover the freight charges.

     There are only two ways of regulating at the source:

           1.  By cooperative control of the product.
           2.  By prorate agreements, either State or Federal, or both.

     . . .-There is probably a lack of understanding among growers and
     the public alike, of the difference between regulation of ship-
     ments and elimination of surplus.  We regulate shipments to improve
     returns to growers and insure a steady supply and reasonable price
     to consumers, even when all the production is marketed over the
     season.  But in some years the crop is larger than can be marketed
     at any return to the growers.  Then it becomes necessary not only
     to regulate the quantity shipped each week, but also to divert
     the surplus to by-products, or otherwise eliminate it from fresh
     fruit trade channels.

     The present marketing orders governing oranges, marketing order 907

for navel oranges and marketing order 908 for Valencia oranges, came into

                    33
being in the 1950's.     Each of these marketing orders is managed  by

an Administrative Committee composed of six growers, four handlers, who may

also be growers, and one non-industry'member who has always been nominated

by the other members to serve as the chairman of the Administrative

Committee.

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                                                                                69


Under the provisions of the marketing orders three of the grower members


and two of the handler members of the Administrative Board must belong


to Sunkist Growers, Inc.  The other marketing cooperatives, Pure Gold, Inc.


and Gold Banner Association get one grower and one handler member each,


and two grower members and one handler member are chosen to represent


independent growers and handlers.  The Administrative committees require

                                        34
six concurring votes to take any action.   Obviously, with five votes,
                    s

Sunkist has a good chance of dominating the policy of the navel and


Valencia  Aiministrative Boards.  Some non-Sunkist growers and handlers


have complained about  Sunkist domination  of the Administrative Boards.35


There is certainly a possibility of a conflict between Sunkist and non-


Sunkist interests in regard to marketing  order policy since Sunkist


enjoys a special "reputation for quality not shared by non-Sunkist


growers and handlers.   Thus, Sunkist may  wish to set a marketing policy


based on higher prices and lower market volumes than non-Sunkist people


would 1 ike to see.


     The orange  Administrative Co,mmittees are empowered to establish a


"best" policy for the  marketing of California-Arizona oranges.  A "best"


policy, presumably, is one which minimizes price  fluctuations and


maximizes returns to the grower.  In order to achieve the goals of this


policy the Administrative Committees collect and analyse information ori


the available crop of  oranges, including  estimated quality and composition


of sizes, the estimated utilization of the crop, available supplies of


competitive oranges, the level and trend  of consumer income, estimated


supplies of competitive citrus commodities, and any other pertinent infor-


mation.  Based upon this information the  Adminsitrative committees


produce a schedule of  estimated weekly shipments designed to meet the


goals of their marketing policy.

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                                                                              70
     The recommended weekly volume of orange shipments, which may be revised



as the season progresses, is implemented by a system known as Pro-rate.



Under the pro-rate system the weekly quantity of oranges that may be



shipped to the fresh market is fixed for each of the three growing regions



in the California-Arizona market.  Each packing house is allocated a



specific percentage of this quantity based upon its percentage of the



total production of the pro-rate region.  The packing-house is thus con-



strained to allocate only a certain proportion of each grower's crop to the



fresh market.  The mechanism by which this allocation takes place is the



enforcement by packing-houses of the quality standards established by



marketing cooperatives.  Tha administrative committees may also regulate



directly the size of oranges that are allowed to be sold on the fresh



market.  Specific exemptions from regular allotments are allowed in the



case of early maturing fruit, fruit with a short-tree-storage life,



and   for      weeks of the season in which freeze damage takes place.



     The orange marketing orders do not apply to fruit that is sold for



processing into juice  and by-products  or to fruit that is exported to
                                     r


countries other than Canada.  The marketing orders have no effect on the



development of new orange acreage or the entry of new growers.   As  a



 result, while intraseasonal price fluctuations  have followed  a fairly stable


                                     37
 pattern,  interseasonal prices do not.      In addition,  it  is  doubtful that



 the operations of the orange marketing  orders can  have  any significant effect



 on the over-production problem.   The marketing  order could effect over-



 production only if there were no commodity 'substitute available  for California-



 Arizona fresh oranges.   While this  is true to a great extent  from the  consumer's



 point of  view,  it does not  mean  that highly  concentrated retailers may not



 choose to feature other commodities than oranges if they perceive  that the

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                                                                           71




                                                         38
weekly volume flow of oranges is being unduly restricted..    The resultant


drop in wholesale price might force the Administrative Boards to restrict


the flow to even a greater extent in an attempt to make up for the loss in


projected revenues.  If this tendency exists, as the.pattern of declining


fresh market allocations and declining power returns indicate it might, then


it might also be dampened by the promotional activities of Sunkist, which


retailers may exploit in their own promotional activities.


     Under the Pro-rate system, critically important in determining the


grower's returns is the size distribution of the fruit, which is beyond his


immediate control, and quality of the fruit, which is, to some extent,


affected by pest control practices.  Each grower, then, seeks to increase


the total yield of the crop and seeks to maximize the proportion of his crop


that is allocated to the fresh market and -to the top grade in the fresh


       39
market.    The long-run consequence of these atomistic efforts may be to


decrease the industry-wide.average proportion of the crop that is allocated


to the fresh market, and this has, in fact, been the case in recent years.


The result of this pattern is to increase, even more, the incentive of the


individual grower to maximize yield and quality, resulting in increased


production costs and increased reliance on input factors.  This, along with


inflation of input costs, has lead to an increase in the minimal size of the


production unit.  One grower we spoke to stated that in the 1950's a ten acre

                                                                              40
orange grove could provide a living income, but today 40 acres is the minimum.


Robert Howie, the agricultural commissioner of Riverside County also indicated


that the smaller orange growers are being driven out of business by increasing

            41,42
input costs.

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                                                                             72
     In summary, the institutional arrangements Which have been developed


in response to the over-production problem, the marketing cooperative


and the marketing order, are incapable of directly attacking the root


causes of the over-production problem, the disproportionate market power


of the input and retail sectors compared to the atomistic production


sector.  Instead attempts are made to deal with the over-production


problem in a symptomatic way, resulting in additional dislocations


which may not be beneficial to society.  Such dislocations are not a


product of insincerity or ineptitude on behalf of orange growers and


their institutions, but result inspite of the best motivated and best


informed efforts on their part.


     Within this system quality standards play an important role,  and it


is to a consideration of these standards that we now turn.


III.  QUALITY STANDARDS



     The California-Arizona  citrus industry operates under two kinds of


quality standards  for  fresh  fruit.   In  the first  instance, the fruit must


meet the statutory quality standards which are established and enforced by

                              »
the state.  The  California standards require  that oranges have a soluble


solids  (sugar)  to  acid ratio of eight to  one if 25 percent of the surface


of 90  percent  of the fruit has attained an orange color,  and a soluble


solids to acid  ratio of ten  to one if the average surface of 95 percent of


the fruit is orange.   These  state standards clearly relate to maturity and


are written so  as  to ensure  that  green  or sour fruit does not appear on the

             43
fresh  market.


     The statutory standards are not, in  reality, the effective quality


standards that  orange  growers must meet.  Rather, quality standards of a much


more comprehensive and stringent nature are enforced by the orange marketing


cooperatives.   For example,  Sunkist maintains a set of quality standards

-------
                                                                            73
that specify criteria which oranges must meet in order to be sold under the



various Sunkist labels, e.g., "Sunkist,"' "Excel," "Red Ball" and SK."



These standards are shown in Table 1.



     The non-statutory standards contain a number of specifications which



relate to the external appearance of the fruit and may have no bearing on



the taste and nutritional quality of the fruit.



     Obviously, the non-statutory standards do not serve as a "standardiza-



tion" mechanism, assuring to all parties a minimum level of quality, especially



in regard to taste and maturity.  This is done by the statutory standards,



which-are, in fact, subsumed as part of the non-statutory standards.  It



might be thought that the non-statutory standards have been established in



response to a consumer preference for high cosmetic quality.  This theme has




been stressed by  numerous commentators,  including many of  those  who are  highly



critical of the current pattern of pesticide use related to cosmetic quality



standards.  For example, David Pimentel, writing in the March, 1973 journal of



the New York Entomological Society, observes, "Oranges also are in the same



category as apples, because of the currently high 'cosmetic standards' now


                          44
expected by the consumer.                          P. S. George and G. A. King,



agricultural economists with the Giannini Foundation, have indirectly



derived an "elasticity of quality" for oranges*  This elasticity is slightly



negative (-.035).which could mean a number of things; but it at least leaves



open the possibility that the current level of quality of oranges is higher



than consumer preference would warrant, that is, the level of quality could



be lowered without a fall in the price of oranges.

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                                                                               74
     Whatever the  current  state of consumer preference  for cosmetic quality



 in  oranges,  it  is  no  doubt,  in part, a product  of decades of promotional



 activities by Sunkist rather than just an  endogenous property  of  the human



 psyche.   The Florida  "russet grapefruit" which  is severely cosmetically



 affected  by  mites  and whiteflies, receives a premium price because of  its



 high interior quality.   In this case, the  cosmetic damage has  become a



 trade-mark,  as  it  were,  of the high quality of  the fruit.  The green color



 of  the re-greened  Valencia .orange is now being  advertised as a "guarantee"

                                              46
 that the  fruit  is  ripe,  which, in fact, it is.     Thus, consumer attitude



 does not  seem to be an insurmountable barrier to the alteration of cosmetic



 quality standards  once other obstacles to  change have been overcome.



      Non-statutory standards may exist for another reason, quite  apart



 from consumer preference,  and that is as a mechanism for allocating oranges



 to  the fresh market,  in accordance to the  policy goals  of the  orange



 Administrative  Boards.   It is in the packing-house that the enforcement of



 non-statutory quality standards takes place and it is as a result of this



 enforcement  that a certain number of oranges are offered for sale on the



 fresh market and the  remainder diverted to juice and by-products.



     This is all of great importance to  the grower,  for he receives a



significantly lower price for oranges that are classified as  "Red Ball"



rather than "Sunkist"  and an even lower  price for oranges that  go to



juice and  by-products.  For the  years 1950-51,  1965-66  and  1967-68,  Rausser



reports the following  composite  relative  prices  that were received for  the


different  grades of navel and Valencia oranges.

-------
Navels             Relative Price        Valencias        Relative Price
Sunkisc
Excel
Red Ball
1.00
.82
.74
Sunkist
Excel
Red Ball
1.00
.83
.71
 In regard to the price differential between oranges that are allocated
 to the fresh market and those that are allocated to the by-products
 market, the data in Table 4 indicate  that groves  receive little or
 no return on fruit allocated to the by-products market and that the
 price situation has constantly deteriorated in the by-products market
 since 1960.

Data from pack-out sheets that we have received for 1973 and 1974 confirm
this general situation.  These pack-out'sheets, which report to the grower
the distribution of his crop into different grades and the prices received,
indicate that the grower receives between $.-50 and $1.50 less per packed
(50 Ib.) box for oranges that are graded "Red Ball" or "Choice" rather than

"Sunkist" (or "Pure Gold").   Pack-out sheets for navel oranges indicate
               t
that growers received from nothing to $10.00 a ton for navel oranges that
went to juice and by-products.   This latter figure is equivalent to $.25
per box.  Obviously, there is a great financial incentive for  growers  to
meet the quality standards that adhere to the top  grade for  fresh  oranges.

     An important aspect of the quality standards  that are specified by
Sunkist is their non-quantitative nature.   For example,  it is  difficult to
know exactly what "more than slightly scarred" means.   Additionally, the •
cause of many of the defects is not specified.  Scarring may result from a
number of factors, including wind,  mechanical abrasion by branches,  and

-------
                     48
various insect pests.  The wide range of exterior defects specified in the


quality standards are not detected by any quantitative technique.  Rather,


the oranges are screened visually by packing-house workers as they are


carried down a conveyor belt.  It would seem that the non-quantitative


nature of the exterior quality standards and the inspection procedure would


allow 'for the adjustment of the enforcement level of the quality standards


without any change in the specification of the quality standards themselves.


It has been suggested, for example, that this could be accomplished by


simply increasing the speed of the conveyor belt that carries the oranges


past the quality inspectors, or by increasing or decreasing the number of


inspectors on duty.  Spokesmen for Sunkist categorically denied that any


"adjustment of the quality standards" takes placet In the strict technical •


sense of  this phrase they are correct.


       However, there, is evidence to suggest that adjustment


  of the level of enforcement of quality standards does,  in fact,


  take,place.  First of all, the decreasing proportion of oranges that


  are sold to the fresh market indicates that either the actual


  quality of  oranges  has  been deteriorating or that theTevel of quality


  standards enforcement has become more stringent.  The first possibility


  is explicable only  if we assume that insect related damage is the pre-


  dominating  factor in determining the level of quality and, furthermore,


  that orange growers had increasing difficulty in dealing with insect


  pests  in  the last decade.  Though there may be some element of truth in


  the latter of these assumptions, they cannot explain the regular decline


  in the proportion of fruit sold to the fresh market.  If this hypothetical


  quality decline is not due to insect damage it might be due to various


  cultural and mechanical factors, but here again, there is no reason to


  expect a regular increase in damage due to these factors.   It is  much more


  credible to assume that as orange acreage and production has expanded,

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                                                                            77
the enf or cement level for quality standards has had to be annually


adjusted to fulfill the marketing policy established by the orange


Administrative Boards.  This phenomenon should not be all that surprising.


In the June, 1972 issue of Citrograph, "The Magazine of the Citrus Industry,"


agricultural economists Leon Garoian and Kirby Moulton.wrote, "Certainly


at the grower level weTve -seen the results of low or nonexisting barriers


[to entry].   New growers can raise the required quality of citrus and can

                              50    ' ''   •'             '•-••'        •' ' '
join marketing associations."   (emphasis added)  Still this issue seems


to be a sore point with the marketing cooperatives.  As to whether the


level.of enforcement of quality standards is adjusted during the season,


as changes in the weekly volume flow of oranges to the fresh market might


suggest, the orange growers we interviewed unanimously and emphatically


agreed that this does occur.    (See =Table 6   for summary of citrus


grower interviews.)
                          -••..-•—....•-.• —-   • '   •        .        ;••...


 When the percentage of fruit that is allocated to the fresh market is


 regressed against the total seasonal crop,  using data for the years  1949-


 1973- from Table 2.  A positive correlation is  shown to exist between these


 two variables (especially when freeze years are eliminated from the  data).


 This would indicate that quality standards are adjusted,  at least  on an


 inter-seasonal level..  When the same procedure was applied to weekly


 data for the year 1973-74 no such relationship was found  to exist.   Thus,


 at least, according to this test, quality standards do not appear  to be


 adjusted within the season.  Thus, pro-rating  appears to  function  fairly


 well in allocating the volume flow of the average crop within the  season,


 but it fails in controlling the total quantity of oranges from season to


 season.

-------
                 •   .   .  •     ••'..-..•'•.             . -  •        '78



      The negative  result of the "second test, above, does not necessarily



 mean that the Individual growers      >   .   ' were entirely wrong in their



 perceptions of intra-seasonal quality standard enforcements.  While there



 was no overall correlation between the percentage of the weekly crop



 allocated to by-products and the total weekly crop, the weekly data for



 1973-74 do   appear to indicate a tine pattern in the allocation. At least



 for Navel oranges, the percentage of the crop allocated to by-products



 increasing throughout most of the season.                      .  .



      These results are summarized in Figures 4, 5, 6 and Tables3 and 4.       .



      Spokesmen for the citrus Industry emphatically deny that



 there is a cosmetic component involved in the quality standards as  far as.



 insect related damage is concerned.  Two grounds are cited in support of



 this position.  Richard Breuner,  the President of the Industry-Committee



 on Citrus Additives and Pesticides, a citrus industry advisory and  lobbying



 organization, stated that insect  related external damage is symptomatic of


                        52   '  ' '           '
 lower interior quality.                             .



      Don Avis, manager of pest control for Sunkist, also contended  that.any



 cosmetic effects obtained from pest control  are strictly the side benefits



 of sound pest management practices.-necessary for the maintenance of fruit



 yield and tree vigor and, that fruit exposed to proper pest control



 automatically meets the Sunkist quality standards with regard to insect-



 related damage. On these grounds Avis denied' that the Sunkist quality


...           •                .                  •••••.      <       • eo  ••

 standards contain  any operationally effective cosmetic components.JJ



      The viewpoint is not universally shared  by the citrus industry.   For



 example, the Florida Department of Citrus initiated a campaign in 1975 in



 which it "tells consumers that the external  appearance of Florida oranges has



 nothing to do with internal quality—the same climatic conditions that make



 Florida oranges exceptionally juicy and delicious also mean that they usually

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                                                                          79
carry a few blemishes, wind scars, scale, and sometimes have a pale color or



a peel that has regreened."




IV.  .PEST MANAGEMENT



     Citrus is among the top ten food crops in the U. S. in terms of pesticide



application.  Ninety seven percent of all citrus acreage is treated on a



regular basis and citrus accounts for 2 percent of all agricultural insecti-



cide use.     In 1973 over twelve million pounds of various pesticides were



sprayed on California oranges, according to the California State Department



of Agriculture Pesticide Use Report.  The chemicals used included such toxic



substances as Delnav-dioxathion, Malathion and Parathion.    The dispropor-



tionately large amount of pesticide use in citrus is reflected in the



extremely high pest control costs for this crop.  For.example, the average pest



control cost  (excluding control costs for weeds and nematodes) was estimated



at $160.00 an acre for the 1973-74 growing season for navel oranges in Central



California.    The significance of this cost can be appreciated by comparing



it to the net return for navel oranges which ranges between $500.00 and


                    58
$1,000.00 per acre.



     There are important variations in the number, type and severity of citrus



insect pests according to the growing region.  Southern California is relatively



inhospitable to a number of important citrus pests, most notably the citrus



thrips.  In addition, the parasites of certain citrus pests thrive in .



southern California but not in other growing regions.  This is especially



true of Aphytis melinus DeBach, an effective parasite on the California red



scale.



     In the Central California growing region the citrus thrips, the citrus



red mite, and the California red scale are major pests.   Other .citrus pests

-------
                                                                           80




are also more severe in these regions than in Southern California.  From a


pest management perspective, the enormous expansion of citrus acreage into


Central California was unfortunate.  It took place, anyway, for reasons


already discussed.  In recent years growers in this region have felt the


consequences in the form of increasingly difficult pest problems and swiftly


rising pest control costs.   '   '


     The specific approach toward pest control also depends upon the basic


philosophy of the grower and his pest control advisor.  There are essentially


two approaches to citrus pest control: conventional chemical control and


integrated pest management.  In conventional chemical control the approach is


to suppress specific pests without regard for the long-term effects of


chemical treatment or the actual level of the pest population necessary to


cause damage of economic significance.  This strategy has often led to


episodes of unexpected pest resurgence or outbreaks in citrus.  For example,


an important citrus pest, the cottony cushion scale, was brought under


effective biological control in 1892 with the deliberate introduction of its


adapted predator, the vedalia beetle.  With the advent and widespread use of


DDT in the 1940's, the vedalia beetle was decimated in many orange groves.


As a consequence there was a serious resurgence of the cottony cushion scale
                                                           to  the  orchards

which subsided only when the vedalia beetle was re-introduced/and the use

                                                 62
of DDT was discontinued on or near citrus groves.    Currently, attempts to


control the citrus thrips through conventional chemical control has led to


the elevation of the citrus red mite as a serious pest .in California, as well


as to the exacerbation of a number of other citrus pest problems.    (See


discussion of the citrus thrips, below, p.  86).


     The integrated pest management approach attempts to take the  entire


agro-ecosystem into account.  The population levels of insect pests are

-------
                                                                           81  .






carefully monitored to determine whether economically significant infesta-



tions exist, and if so, when and how they can be most effectively controlled.



Use is made of cultural techniques, the introduction of predatory or parasitic



insects, and the selection and use of chemical materials on the basis of



their long-term, as well as short-term, effects on the target pest and the



entire agro-ecosystem.        .         '           .   .     .                   .  .



     In tables 7 and 8  idealized programs of citrus pest.control for Central



California based upon the conventional chemical approach and the integrated



peat management approach are compared.  According to University of California



citrus entomologist, C. E. Kennett, citrus red mite falls to low status in



the pest hierarchy because integrated pest management consultants attach less



importance to it than chemical control specialists.  "Citrus thrips retain a



high position not so much because of their actual damage potential but more



so because the arbitrary classification, by the citrus industry of thrips



feeding scars on the fruit as serious damage, does not. allow the supervised
                                                                       v


control specialist to relegate it to a position of lesser importance,"



Kennett comments.       . .                  .          .    .                   .



     Richard D. Strong, Commodity Specialist, California Farm Bureau Federation,



analyzed comparative cost of conventional and integrated control on Valencia



oranges in Tulare County over a five year period.  Be reported that integrated



control programs cost $45 per acre as compared to $101 per acre for conven-



tional control.    (See Table 9.)



     Hall, Norgaard and True have compared citrus growers who use integrated



pest management and those who use conventional chemical control.    Thirty-nine



orange growers in the San Joaquin Valley were interviewed.   Seventeen were



clients of independent pest management consultants, while twenty-two were not.



An additional eighteen growers in the coastal region of Southern California

-------
                                                                           82






were interviewed.  All of chese growers were clients of independent pest




management consultants.  Differences in the general characteristics of




Central California management adopters and nonadopters seem apparent from




the survey.  On the average adopters have a smaller percentage of acreage in




crops other than oranges; they have a lower quality of land as measured by




the Storie Soil Index; they watered more often with less water per applica-




tion; they have fewer trees per acre and younger groves.  On the average




adopters tend to be better educated, have less contact with their farm advisor,




and to read more technical journals. They tend to have less total assets and




less total debts and a higher asset to debt ratio than nonadopters.  These




characteristics vary from grower to grower and this average composite picture




cannot be applied to any individual grower.  Additionally, the differences




between the average adopter and nonadopter are not striking in all of these




categories and it cannot be concluded that a cause and effect relationship




necessarily exists between these characteristics and the decision to adopt




or not adopt integrated pest management advice.  Nevertheless, these data are




suggestive of what some of the actual factors might be.




     When the nonadopters were asked to rank, in order of their preference,




their sources of pest control information, 15 out of 22 listed chemical




company salesmen as their most preferred source of information.  Significantly,




none of the nonadopters listed independent pest management consultants, even




as a second, third or fourth preference.




     The orange growers were also asked to rank reasons for utilizing the type




of advice they used.  The adop-ters attributed about equal weight to: "respect




for and friendliness with the advisor,""a lower cost of pest control," and

-------
                                                                         83






"a lower risk of pest damage."  The nonadopters weighted "personal respect




and friendliness" much higher than other factors and also listed "free




advice of the chemical company salesman" as the second most important




factor.  These responses would seem to indicate that the nonadopter is




being "sold" more on the personality of the salesman than on the effective-




ness of the pest control procedure.  This conclusion is supported by the




fact that most nonadopters, as well as adopters, agreed that integrated




pest management is cheaper and more effective than conventional chemical




control.




     It is difficult to know to what extent the attitudes of adopters and




nonadopters is the cause of their decision to adopt or not adopt independent




pest management consultants or the effect of having done so.  In any case,




grower attitude, though probably very important, may not be the only barrier




to the greater use of independent pest management consultants.  Another




barrier is the economic difficulty of an advisor starting an independent




small business enterprise, especially when competitors in the market are




the salaried and commissioned salesmen (fieldmen) of large chemical




corporations.




     The Hall, Norgaard and Tree Study yields the following information on




.the actual economic effects of independent pest management.    The average




net return per acre for San Joaquin Valley adopters was $480.00 while for




the nonadopters it was $460.00.  Other things being equal, the adopters of




independent pest management have not been adversely-affected financially.




The adopters also experienced a significantly lower average per acre pest




control cost than the nonadopters, even when the pest management consultant's




fee is added in.  The average per acre expenditure on insecticides reported




in the survey was $20.53 for the adopters and $42.35 for the nonadopters

-------
                                                                          84


over the years 1970 and 1971.  When Norgaard, Willey and Hall applied re-

gression analysis to the information from the survey results, the following

estimates were obtained for the profit accruing to the grower as a result

of adopting independent pest'management.  For 1970 the 90 percent confidence

interval for the average profit realized by adopters, attributable to

independent pest management, was -$14.44 to $153.03 per acre.  For 1971 the

interval was -$8.56 to $159.07 per acre.  The location of these confidence

intervals indicates that adopters could expect to have benefited from inde-

pendent pest management.  The analysis also suggests that there is a likeli-

hood that one-third of the nonadopters in the sample would also have benefited

from using independent pest management if they were to become adopters.
                              •
     The relatively favorable environment for natural pest control of coastal

Southern California was also confirmed by this survey.  When growers were

asked to estimate the percent pest damage loss if no pesticides were used,

the San Joaquin adopters gave an average estimate of 40 percent while the

Southern California adopters gave an average estimate of only 7 percent.  The

actual level of pest damage loss reported by the two groups was 22 percent and

2.5 percent respectively.

     A notable example in which citrus growers have taken advantage of the

favorable environment of coastal Southern California and integrated pest

management is the Fillmore Citrus Protection District, in Ventura County.

It is a citrus grower's cooperative pest control association which is respon-

sible for the maintenance of insectaries, for the release of predators and

parasites of citrus pests into the groves of its member growers,  and for the

general citrus pest management on the 8,000 acres of orchards over which it

has jurisdiction.  The organisation has been heavily involved with integrated.

pest management and biological control since 1922.   Red scale and.black scale

-------
                                                                              85
 are tinder relatively effective biological control in the Fillmore District


 and the amount of chemical treatment used for the control of other insect


 pests is relatively low.  In 1973,  a fairly typical year of the 8,000 acres


 in the Fillmore District, 660 acres vere treated for black scale, 75 acres


 were treated for red scale, 200 acres were treated for aphids,  800 acres


 were treated for citrus thrips, and 2100 acres were treated with a medium oil


 spray designed to prevent the fall  and winter build-up of red spider mites.


      Currently, any pest control strategy, -.conventional chemical or inte-


 grated management, must take cosmetic factors into account.  When we asked


 nine citrus growers to list insect  pests which they considered  partially or


 wholly cosmetic eight listed citrus thrips,  four listed citrus  red mite, five


 listed red scale and one listed worms.  When asked to estimate  the proportion


 of their pest control cost that is  attributable to cosmetic pests, the


 average estimate was 71 percent, with a range from 50 percent to 100 percent.


 When asked if they were able to take full advantage of integrated pest

       •             •     •              •            •    ' •              *
 management under the existing quality standards, eight of the nine said  they

          68
 were not.    For these growers, then, there is a definite relationship


 between quality standards which they consider cosmetic and their mode of


 insect pest management, including the degree to which they must use chemical


.pesticides.  This response also indicates that at least eight of the nine


 growers defined "cosmetic quality standards" in a way consistent with the


 definition used in this report.  That is, these growers understood "cosmetic


 damage" to refer to revenue loss.due to down-grading of fruit and not related


 to yield loss, or deterioration of  fruit flavor, nutrition or storability.


 (See Table  6..)              •

-------
                                                                          86



V.  TEE CITRUS THRIPS


     If any major agricultural insect pest has gained a reputation for


causing essentially cosmetic damage, it is the citrus thrips, Scirtothrips


citri (Moulton).  Yet, even in this case controversy rages as to the nature


of citrus thrips damage.  In an evaluation of whether, or to.what extent,


the citrus thrips should be considered a cosmetic pest, a'complexity of


factors must be taken into account, including the nature of the damage caused


by the insect pest, the age and location of the citrus grove, current and


past environmental conditions, current and past cultural and pest management


procedures, prevailing and projected economic conditions and quality standards.


Many of these factors have been discussed above and it is within this context


that the nature of citrus thrips damage will be examined.


     HISTORY


     The citrus thrips was first identified as an insect pest in California


in 1908 after a severe outbreak of thrips-related damage to the Tulare County


citrus crop.  A 1918 report of citrus thrips by the United States Department

              69
of Agriculture   provides us with information on the nature and extent of


thrips damage before the era of effective control.  The report notes that


severe infestations of citrus thrips can cause stunted growth on nursery stock


and. young groves.  Severe infestations can also result in fruit drop and the


splitting of fruit, as well as substantial deformation of fruit.  Certainly


this type of damage must be classified as non'cosmetic.  However, according to


the 1918 USDA report, such damage was relatively rare even when thrips were


left totally uncontrolled.  Fruit drop occurred only "in exceptionally severe


infestations," thrips were responsible for "only a small proportion of the


usual fruit splitting," and substantial malformation due to thrips occurred

-------
                                                                         87


in from one to six percent of the orange crop.  This is not to dismiss the

fact that certain groves at certain times suffered severe damage due to

thrips.  But, as the 1819 USDA report observed:

     The most important damage resulting from the feeding of thrips
     upon trees that have passed the period of rapid growth is the
     lowering of the market value of the fruit by unsightly scabbing
     and scarring.  Although the eating quality of the orange is not
     affected thereby, its commercial grading is lowered considerably
     and the selling price correspondingly reduced.

     Specifically, it appears that the typical mature citrus grove is pri-

marily susceptible only to the characteristic "stem-end ring scarring" of

fruit which occurs without significant loss of fruit yield or tree vigor.

The extent to which such damage constitutes an economic loss to the grower

depends not only on the severity and incidence of scarring, but on the .

level and enforcement of quality standards.  In the case of citrus thrips

scarring other than that which causes splitting or substantial deformation of

the fruit, applicable quality standards seem to fall into the cosmetic

category.

     In the severe thrips year of 1909 more than 80 percent of the oranges in

Tulare County were so damaged by citrus thrips as to lower the grade of the

fruit.  In 1910 this figure fell to 63 percent even though no treatment

procedure was available at the time.  In the fairly typical season of 1911 it

was estimated that the economic loss to San Joaquin Valley citrus growers

due to citrus thrips damage was in excess of $180,000.  This would certainly

be an incentive to control citrus thrips' scarring to a level of noncosaietic

damage.

     A 1938 report by the University of California Agricultural Experiment
       70
Station   concurs with the 1918 USDA report regarding the nature of thrips

damage.  As to tree damage it comments, "Citrus nursery stock and young

-------
                                                                          88






groves are often stunted and malformed by thrips'attack."  On fruit damage




the report states, "The fruit injury is rarely severe enough to cause




dropping or malformation, although some splitting is attributed to excessive




thrips1 attacks.  Though the eating quality remains unaffected by the surface




scarring, the market grade is definitely lowered and the selling price




reduced."  According to the 1938 report,thrips'damage in the Central




California growing region was reduced to 3.8 percent of the fruit by a




control procedure involving a series of three sulfur treatments.  With no




treatments 46.6 percent of the fruit was affected by citrus thrips.  What




proportion of this damage resulted in grade lowering and what proportion




resulted in more severe damage is not stated in the report.




     CURRENT STATUS




     Contemporary opinion on the nature of citrus thrips1 damage is mixed.




Certainly, citrus thrips is still considered a major insect pest in California.




According to estimates by Ronald M. Hawthorne, survey entomologist for the




California Department of Agriculture, citrus thrips accounted for $8,762,922




in crop damage in 1974.  This figure is based upon estimates submitted by




county Agricultural Commissioners and is probably rather inaccurate.    How-




ever, it may serve, at least, to indicate the order of magnitude of the




problem.   According to the same source an additional $2,024,898 was spent




in 1974 in attempts to control the citrus thrips, bringing the total direct




economic loss attributed to citrus thrips to about 10.8 million dollars.




     In the Desert and Central California growing regions the citrus thrips




is considered a leading insect pest.   In a 1973 article on "Citrus Pest




Management Studies in Tulare County," University of California entomologists,




D. L. Flaherty, J. 3. Pehrson, and C. E.  Kennett write, "Thrips are rated




high as pests in Tulare County.   The fruit must meet marketing standards:

-------
                                                                         89




too much scarred fruit results in heavy culling and reduced grade, both


                            72
influencing grower profits."    The "1974-75 Treatment Guide for California



Citrus Crops," published by the University of California, recommends treat-



ment for citrus thrips "to prevent fruit scarring" implying that thrips1



damage is primarily cosmetic.    In a 1971 newspaper account Don Avis,



manager of pest control for Sunkist Growers, Inc. "acknowledges that the


                                                      74
thrips damage to citrus is mostly cosmetic in nature."    According to the



1974 Sunkist Citrus Defects Market Handbook, "The interior quality of the



fruit is not affected (by citrus thrips1 scarring)."



     As we mentioned above, some citrus growers consider citrus thrips a



cosmetic pest.  In the previously discussed survey, it was listed as a



major pest more times than any other insect and it was designated either



wholly or partially cosmetic by all of those who listed it.  It was mentioned



specifically by several growers as constituting a large part of cosmetic



pest control costs and as a barrier to more effective utilization of inte-



grated pest management.



     On the other hand, Avis, in a recent communication modified his position



on the cosmetic nature of citrus thrips1 damage, contending that it was not



treated as a cosmetic pest as such, but that cosmetic results were achieved



as a side benefit of generally sound pest management practices.    This



position was reiterated by William K. Quarles, Vice President for Government



Affairs for Sunkist, who stated, "The current level of pest control activity



is necessary to maintain tree vigor, as well as crop productivity at a level



of economic necessity for the grower.  Most pest control activity has a



side benefit of improving the cosmetic appearance of the fruit, but there is



little use of chemicals for purely cosmetic purposes."

-------
                                                                         90
     In a recently published report on citrus thrips' treatment, Elmer,
                  78
Ewart and Brawner   noted that:

     The ring-scar on the stem end of the fruit is of primary concern
     along with scars caused by feeding of the rind along the sides of
     the orange.  There is no evidence that these scars affect the
     internal quality of the fruit, but for marketing purposes scarred
     fruit are given a lower grade in the packinghouse with a subse-
     quent monetary loss to the grower ....  There is some question
     about the necessity for using an insecticide to prevent ovi-
     position marks and rind silvering . . . and, besides adding to
     the grower's costs, these sprays may cause an increase of other
     citrus pests.

This study also presents evidence which indicates that treatment for

citrus thrips had no effect on the growth rate of young orange trees.

     In addition, this study provides some evidence that fruit yield was

higher in plots where heavy chemical treatment, involving eight applications

of organophosphate insecticides per season, was used, than in plots where

no treatment was used. ' However, this study was conducted on young, not

mature trees; thus the results'cannot be extrapolated to mature,"commercially

producing groves.

     Even for the young trees the results of the study in regard to fruit

yield cannot be interpreted unambiguously.  The report gives data for fruit

yield, over a three year period, for four treatment procedures: no treatment,

botanical (insecticide) treatment, light chemical treatment - one application

of organophosphate insecticide per year, and heavy chemical treatment - eight

applications of organophosphate insecticides per year.  The report provides

no statistical evaluation so it is difficult to tell whether any of the

differences in fruit yield are actually statistically significant.  In one

year out of three, the yield from the lightly chemically treated plots was

actually lower than from the untreated plots.  This particular negative

result would indicate that, in order to be statistically significant the

difference in fruit'yield would have to be in the range of 15-20%.  (Since

-------
                                                                          91
the negative result, which was one out of nine total samples, was of the



magnitude 6.8%).  Thus the only fruit yield differences that might be



statistically significant are for the years 1972 and 1974 for the heavy



chemical treatment.  In a personal communication Dr. Ewart indicated to us



that he did not consider his data on fruit yield differences to be statis-


                    79
tically significant.



     Even if we are to accept the dubious statistical nature of this evidence,



there is still another problem.  The trees in this study were randomized in



this grove.  However this procedure does not actually eliminate systematic



differences between the sample plots, because eight applications of organo-



phosphate insecticides per year may have effects other than those resulting



from thrips'control.  It has been shown in other crops, such as cotton, that



repeated applications of organophosphate insecticides has a fertilization


       80
effect, and a similar possible effect was not assessed in the citrus thrips'



study.  In addition the report does not indicate how the possible effect of



repeated organophosphate treatment on other insect pests was accounted for.



     Even if we were to dismiss all of these problems, there is yet another



consideration; the economic implication of this treatment procedure.  The



report does not take this into consideration but some elementary calculations



will show how important it is.  Assuming that the heavy chemical treatment



increases yield by 25%, then for an average mature grove producing 300 boxes



per acre (The Tulare County average), this would result in an increase of



about 75 boxes per acre.  At $2 per box, this would increase grower revenue



by $150 per acre.  But the cost of eight organophosphate treatments per year,


                                                81
at $20 per treatment per acre, is $160 per acre.    Thus there would be a



net loss to the grower of $10 per acre, even under very generous assumptions.

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                                                                         92


     Finally, the heavy chemical treatment may have other negative conse-

quences for farmworker and environmental health, and for the long-run

stability of the orchard's insect community, as we have indicated.

     It is of interest to note that, in apparent reference to the Ewart

study, the Sunkist Pest Control Circular for Arizona and California desert

regions, which formerly read:

     Citrus thrips attack all varieties of citrus.  Control to prevent
     foliage damage is important on young plantings and in citrus
     nurseries but is seldom practical on healthy, mature trees.
     Young fruit of all varieties is attacked from the time it is
     pea-size to walnut size or larger, which results in scarring and
     lowering of graded

has been changed to read:

     University research also indicates that ineffective control of
     thrips can reduce yields.$3

This new sentence also appears in Sunkist Pest Control Circulars that recommend

treatment for thrips in other citrus growing regions.  The pest control cir-

culars neglect to mention Ewart*s other, more statistically defensible result;

that thrips' treatment did not significantly effect the growth of young

citrus trees.

     Citrus entomologists Flaherty, Pehrson and Kennett note that, "In many

cases treatments for thrips are overdone, with unwise choices of chemicals.

In their zeal to protect their fruit, growers frequently resort to multiple

treatments, some of which include combinations of insecticides.  Often

treatments are applied beyond the stage of fruit development susceptible to

thrips' damage.  Such treatment programs trigger biological upsets and

promote resistance.  Costly citrus red mite, brown soft scale, cottony

cushion scale, or yellow scale treatments are the likely aftermath of thrips'
                                                                           84
control programs by multiple applications or combinations of insecticides."

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                                                                          93





     More research is needed to determine exactly the role citrus thrips'



damage plays in the grading of fruit.  If a realistic economic threshold



level for thrips can be developed it must still be effectively communicated



to growers by credible sources of pest control information.  The difficulty



with this approach is that the packing-house can instantly change the



effective economic threshold for thrips' damage simply by changing the



level at which it enforces this aspect of the quality standards.  Further-



more, such a change is not readily detectable without constant, after the



fact,monitoring of quality standards enforcement procedures.  As long as



growers are competing with each other to meet cosmetic quality standards



they are running a risk in assuming an economic threshold level for citrus



thrips greater than a few percent.



     Sunkist states in regard to its quality standards that, "These rules



and regulations are necessary, not only to preserve the legal rights of



Sunkist Growers, Inc. in the Sunkist, Excel, SK and Red Ball trademarks,



but to assure a continuing reputation of high quality which now attaches to



them.  This is the only way in which these famous trademarks can be used



to derive the maximum benefits and returns for those marketing their fruit



through Sunkist Growers, Inc.  In adhering to these rules the strength and



value of the trademarks will not only be maintained but will continue to


          85
increase."     Unfortunately, the current system of quality standard enforce-



ment, which attempts to maximize the joint profits of growers, has negative



social consequences.  Some of the social costs can be enumerated in the



case of citrus thrips.



     As already indicated, the control of citrus thrips results in a cost of



several million dollars annually to California citrus growers.  The former

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                                                                           94




 widespread use of DDT for citrus  thrips  and later  broad-spectrum organo-



 phosphate insecticides,  has resulted in  the elevation,  to serious pest



 status,  of a number of heretofore minor  insects and  mites.   The most



 notable  example of this  phenomenon is the citrus red mite,  Panonychus



 citri, which has become  one of the leading citrus  pests in California, in


                                                        86,87
 large part as a side-effect of citrus thrips treatment.






                                     This increase  has paralleled the world-



 wide increase in the importance of spider mite problems as the use of



 synthetic organic insecticides has increased.   This  problem is highlighted



 by a recent issue (March, 1975) of Citrograph.  This leading citrus industry



 journal contains a full  page advertisement by American Cyanamid for its
                                       *


 insecticide Cygon.  The  advertisement is headlined,  "FOR THRIPS CONTROL—



 USE CYGON" and.goes on to say, "When it  comes to thrips on citrus, CYGON 267



 Systemic Insecticide is  outstanding.  It's been doing a superior job on



 both bearing and non-bearing trees for many years  and is now widely used



 for thrips and aphids."   The generic name for Cygon  is  dimethoate.  Dimethoate



 is an organophosphate insecticide which, according to von Ruiaker, is highly

                                             88
 toxic to beneficial insects, including bees.


      In the same issue of Citrograph there is a full page advertisement for



 Dupont's Lannate.  As a  giant size cartoon thrips  falls dead to the bottom



 of the page, the advertisement tells the reader, "This  year, protect your



 trees—and harvest more  scar-free fruit.   See your pest control advisor and



 spray LANNATE this season."  The  generic name for  Lannate is me thorny1.



.Methomyl is a highly toxic carbamate which also adversely affects beneficial


                            89
 insects  such as honey bees.     No mention is  made in either of the

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                                                                          95





advertisements of the possible adverse effects of using these insecticides,



such as the induced outbreaks of citrus red mite and other serious pests.



It is not known to what extent these advertisements affect grower pesticide



use decisions, but they surely are a reflection of what American Cyanamid



and Dupont salesmen are telling their client growers.  Guthion, Phosphamidon



and malathion are also highly destructive to Amblyseius hibisci, the pre-



daceous mite that, in the past, has often kept the citrus red mite under


                             90
effective biological control.



     The citrus red mite is one of the most expensive citrus pests treated.



The estimated cost for citrus red mite control in 1974 was $4,427,322.  The



estimated loss of crop value, much of it attributable to cosmetic damage,


               91
was $6,049,014.     Citrus red mites are widely sprayed with chemical acara-



cides but the populations are rapidly becoming resistant to many of these


          92
chemicals.    One of the leading acaracides now in use is Kelthane, manu-



factured by Rohm and Haas.  Kennett and Flaherty have pointed out that the



citrus red mite has developed a moderate degree of resistance to Kelthane



and as a consequence Kelthane is usually ineffective against the mite in the



spring when populations are increasing at a rapid rate.  On the other hand,



the predator of the citrus red mite, ^. hibisci has not developed resistance


                 93
against Kelthane.    Rohm and Haas ran a two page, full color advertisement



for Kelthane in the March, 1975 issue of Citrograph which features photo-



graphs of cosmetically perfect citrus fruit, but doesn't inform the reader of



Kelthane's limitations as an effective acaracide.



     As pesticide costs increase, the financial burden made necessary by



quality standards for citrus thrips and the consequent resurgence of other



pests, looms as a growing social cost to citrus growers as a whole, though



as individuals they continue to strive to maximize their returns through



the control of cosmetic insect pests.

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                                                                         96





     The current level of control for thrips damage may constitute a threat



to the welfare of farm workers.   It is difficult to determine the exact



amount of pesticides that are applied for the cosmetic control of citrus



thrips, since the California Pesticide Use Report does not report pesticide



use by pest category.  The University of California and Sunkist recommenda-



tions list parathion, Delnav-dioxathion, guthion, phosphamidon, and dimethoate


                                   94
for the treatment of citrus thrips.    These are all organo-phosphates with



high mammalian toxicities.  The $3 million spent 'annually for citrus thrips



control indicates that there is a substantial use of insecticides against



this pest.  According to the California Pesticide Use Report 23, 319 Ibs. of



Delnav-dioxathion, 35,580 Ibs. of guthion, 16,581 Ibs. of phosphamidon,



109,629 Ibs. of dimethoate, 194,061 Ibs. of parathion and 236,188 Ibs. of


                                                        95
malathipn were sprayed on oranges, in California in 1973.    Undoubtedly, a



large amount of this material was used for the treatment of citrus thrips.



Unfortunately, the California Pesticide Use Report does not classify pesticide



use by target pest.   An attempt to explore this question was made in the



survey conducted by Norgaard.  Unfortunately, the data on this question were



sparse.  The data that do exist and published pest control recommendations



point to the use of organophosphates for thrips control.  Growers and pest



management consultants also indicate that organophosphates are often used in



this manner, especially as the more selective botanical insecticide, such as



Ryania and Sabadilla have become increasingly difficult to obtain.



     We have dealt with the citrus thrips and- its potential as a cosmetic



pest in some detail.  It should not be forgotten, however, that a number of



the growers we spoke to also listed the citrus red aite and red scale as at



least partially cosmetic pests.   This is to say, there is some level of these



pests which requires treatment,  not because they' have yet reached a density

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                                                                          97




which constitutes a threat to the yield of fruit, internal fruit quality, or



to tree vigor, but because the grower must meet cosmetic standards.



     While at higher population levels, red scale and citrus red mite may



be very serious non-cosmetic pests, the treatment for these pests at



cosmetic levels may result in the same types of negative impacts that we



have discussed in regard to citrus thrips.  Moreover, it is possible that



the same kind of effects that we have described for citrus thrips may occur



in other crops that are marketed as fresh produce under strict cosmetic



quality standards.


     ALTERNATIVES AND OBSTACLES



     There are several imaginable alternatives to the current situation regarding



the citrus thrips' problem.  These involve the changing of pest control

                                                                         *

practices, the changing of quality standards, or the changing of marketing



practices, including consumer attitudes.



     It may be possible to meet current quality standards regarding citrus



thrips1 damage with substantial reduction in the amount of pest control



materials actually applied.  As we have indicated, the available information



suggests that an integrated control program, as opposed to an intensive



chemical control program, results in a generally reduced application of



insecticides as well as reduced over-all pest control costs.  However, in



regard to citrus thrips, the implementation of ah effective integrated
                                                                            •v


control program.is problematical.  Integrated control consultants would like



to lower the status of citrus thrips in the pest hierarchy, or, what amounts



to the same, to increase the economic threshold level for citrus thrips to



some value greater than zero.  If this could be accomplished the entire



outlook for integrated pest management in oranges would be improved.  As it



is, there are two barriers to this policy.  First of all, both the grower

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                                                                          98





and the consultant may be uncertain as to the actual relationship between



citrus thrips1 damage and economic return.  Additionally, the actual effective



quality standards for citrus thrips, even if known with certainty, may be



unreasonably high from an integrated pest management viewpoint.  The over-



whelming majority of growers market through marketing cooperatives, mainly



Sunkist, that adhere to strict quality standards for thrips1 damage.  This



difficulty could be resolved through the establishment of an explicit



quality standard for oitrus thrips' damage, a. standard that takes the



requirements of integrated pest management more into account.



     Even under the current quality standards, integrated pest management



consultants have sometimes been able to successfully tolerate a finite level



of citrus thrips1 damage.  It has also been shown that citrus thrips can be



partially managed through the use of cultural techniques and relatively non-



disruptive insecticides.  It is known that the presence of cover crops and



the use of overhead sprinkler systems for irrigation greatly reduces the



severity of citrus thrips1 infestations, even to levels below a reasonable



economic threshold.  An experiment conducted in Tulare County between 1970



and 1972 demonstrated that citrus thrips can be effectively controlled



through the use of such botanical insecticides as Ryania and Sabadilla rather


                                           Ofi
than much more hazardous organo-phosphates."   Hopefully, a comprehensive



and effective strategy for the integrated control of citrus thrips will


                                    97
eventually result from this research.  However, we should not lose sight of



the current quality standards with regard to citrus thrips1 damage which



appear to constitute a barrier to the full development of an integrated pest



management program for oranges as well as an integrated control program for



citrus thrips itself.

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                                                                         99




     Another alternative would be to simply not treat for thrips in mature



groves except against infestations of such severity that tree vigor or yield



is threatened.  In the Fillmore Protection District only about ten percent

                                                           98
of the acreage is treated for cttrus thrips on the average.    If the level



of enforcement of quality standards were relaxed even moderately it might



be possible to eliminate the need for treatment against citrus thrips in



this coastal growing area.  According to many commentators, the primary



obstacle to a change in quality standards is the attitude of consumers



toward the cosmetic appearance of fruit.  For example, W. Leland Brown,



Agricultural Commissioner for Sacramento County comments:  "Part of the



problem is educating the consumer that just because a fruit is scarred with



thrip (sic.) or whatever, doesn't mean that the interior quality is inferior.



Oranges that are clean and perfect on'the exterior just naturally sell better



than oranges scarred by thrip (sic.) even though there is no difference in


                                                                99
eating quality:  But how do you convince the consumer of this?"     However,



for the reasons already cited, it is net likely that consumer attitudes are



the primary obstacle to altering existing quality standards.  Consumer



education campaigns, can be successfully waged if somebody is willing to



carry them out.  The Consumer Cooperative in Berkeley, California,  a major



retail food outlet that is consumer owned and operated, recently featured


cosmetically lower quality oranges, at 19c per pound as a "superior buy" over



29c per pound "Sunkist" oranges.  This suggestion carried the prestige of



the store's home economist.     Safeway Stores, on the other hand,  recently



ran an extensive television advertising campaign which featured Sunkist



oranges and high-lighted the cosmetic aspect by showing grapefruit-sized



oranges in Christmas stockings.      While Sunkist officials say that they



give equal weight to taste and nutrition in their advertising,   '     it is

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                                                                         100






far-fetched to think that Sunkist would risk its quality reputation by




campaigning for cosmetically lower quality oranges.




    "Finally, it must be recognized that these suggestions deal with the




problem in only a symptomatic manner.   The unnecessary use of pesticides




is but one of the social costs incurred as a result  of a fundamental mis-




allocation of agricultural resources and economic power and the short-sighted




attempts to deal with these problems.    It is not reasonable from an




aggregate point of view, for the entire orange crop  to be treated for optimal




cosmetic appearance, when a large proportion of the  crop ends up as juice




and by-products.  But, under the current system, for many growers, operating




in isolation, seeking to maximize individual net return by maximizing the




proportion of the crop that qualifies  for the fresh  market and the highest




quality grade, means-spraying the entire crop for full cosmetic effect,




regardless of how much of the aggregate crop goes to juice and by-products.

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                                                                          101
 REFERENCES                                              -                   -




 1.   Gordon Rausser, "A Dynamic Econometric Model of the California-




     Arizona Orange Industry," Doctoral Dissertation, University of




     California, Davis, 1971, p. 1.




 2.   Walter Reuther, ed., THE CITRUS INDUSTRY, University of California,




     1967, p. 80.




 3.   Reuther,-op_. cit., p. 69.




 4.   Reuther, op. cit., p. 139.




 5.   Sunkist Growers, Inc., CITRUS FRUIT INDUSTRY STATISTICAL BULLETIN, 1975,




     p. 12,13.




 6.   Reuther, op. cit., pp. 65-67.




 7.   James Youde, "Marketing Margins," CITROGRAPH, June, 1972, p. V.




 8.   John A. Jamison, "Marketing Orders and Public Policy for the Fruit and




     Vegetable Industries," FOOD RESEARCH INSTITUTE STUDIES IN AGRICULTURAL




     ECONOMICS, TRADE, AND DEVELOPMENT, Volume X, No. 3, 1971.




 9.   Reuther, op.  cit., p. 66.




10.   R. C. Rock and R. G. Platt, CALIFORNIA ORANGES, ACREAGE AND PRODUCTION




     TRENDS, COSTS AND RETURNS, Agricultural Extension, University of




     California, 1973, p. 1.




11.   Rock, op. cit., Supplement.




12.   Hoy Carman and James Youde, "Alternative Tax Treatment of Orchard




     Development Costs: Impacts on Producers, Middlemen, and Consumers,".




     AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS,  Vol. 5'5, No.  2, May, 1973.




13.   Hoy Carman, "Tax Loss Agricultural Investments After Tax Reform,"




     AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS,  Vol. 54, No.  4, November,  1972.




14.   Jeanne Dangerfield, "Sowing the Till", CONGRESSIONAL RECORD, May 16,  1973,




     Vol.  119, No. 74.

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                                                                        102
15.  Between 1967 and August 1974 average weekly take-home wages as measured




     in 1967 dollars increased by less than 12 from  §90.86 to  $91.49




     according to the Bureau of Labor Statistics.




16.  CITRUS FRUITS, Statistical Reporting Service, United States Department




     of Agriculture, Washington, D. C., 1949-1974.




17.  Rock, op. cit.. p.  26.                                     .                .




18.  FRUIT AND VEGETABLE INDUSTRY, National Commission on Food Marketing,




     Tech. Study No. 4.   June,  1966.




19.  Leon Garoian and Kirby Moulton, "Structure of the California-Arizona Market,"




     CITROGRAPH, June 1972, p. VIII.  p. 355.




20.  Curtis Anderson, "Structure of Sunkist," CITROGRAPH, June, 1972,  p. X.




21   U.S. Congress, House Committee on the Judiciary, Subcommittee of




     Monopolies and Commercial Law, Hearings, "Food  Price Investigation,"




     93rd Congress, 1st  Session, June, July 1973, Serial No. 15, p. 711-715.




22.  Anderson, op.  cit.




23.  Linda Kravitz, WHO'S MINDING THE CO-OP?, Agribusiness Accountability




     Project, March, 1974, Washington, D. C. p. 47.




24.  Anderson, op.  cit.:




25.  Rausser, op. cit.,  p. 139.




26.  Garoian, op. cit.




27.  Federal Marketing Orders No. 907 and No. 908.




28.  Garoian, op. cit.




29.  F. M. Sherer,  INDUSTRIAL PRICING, Rand McNally  Publishing Co., Chicago,




     1970, p. 3.

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                                                                           103





30.  Kravitz, op. cit.




31.  Garoian, op. cit.




32.  Charles C. Teague,  10 TALKS ON CITRUS MARKETING, California  Fruit  Growers




     Exchange, Los Angeles,  1939, pp.  5,  16.




33.  Robert Rock, "Marketing Orders,"  CITROG5APH, June,  1972, p.  VII.   Also




     see  Rausser for  a complete discussion of  orange marketing  orders.




34.  Federal Marketing Orders No. 907  and No.  908,  FEDERAL REGISTER,




     December 30, 1961.




35.  Stan Gillette, pers. coma., manager  of Euclid  Pure  Gold packing-house,




     pers. comm., October, 1974.




36.  Federal Marketing Orders No. 907  and No.  90S.




37.  Rock, op.  cit.,  June, 1972.




38.  For  an analogous situation in cling  peaches  see Jamison, p.  298.




39.  Floyd D. Shimomura,  "A  New Look at the California Marketing  Act of 1937,"




40.  Tom  Karins, grower,  pers. comm.,  Exeter,  California, October,  1974.




41.  Robert Howie, pers.  comm., August 6, 1974.




42.  Shimomura,  op. cit., p. 191.




43.  California Food  and Agricultural  Code, Sections 46951-46961.




44.  David Pimentel,  "Extent of Pesticide Use, Food Supply, and Pollution,"




     NEW  YORK ENTOMOLOGICAL  SOCIETY, March, 1973, p. 21.




45.  George, op. cit.. p. 74.




46.  Everett J. Dietrick, Rincon-Vitova Insectaries, Inc., pers.  comm.,




     August 19,  1974.




47.  Rausser, op. cit.




48.  Irving L.  Eaks,  "Rind Disorders of Oranges and Lemons in California," in




     H. D. Chapman,, ed.,  PROCEEDINGS OF THE FIRST INTERNATIONAL CITRUS




     SYMPOSIUM, University of California, Riverside, March, 1969, p. 1343.

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                                                                          104






49.  Interview with Sunkist, Pure Gold, and ICCAP representatives, pers.




     comm., September 24, 1974..




50.  Garoian, og. cit., p. IX.




51.  Of nine orange growers interviewed, all nine stated that the enforcement




     of quality  standards was adjusted intraseasonally.




52.  Richard Breuner, pers. comm., August 6, 1974.




53.  Don Avis, pers. comm., August 11, 1974.




54.  N. G. Hardy, "New Citrus Committees Study Ways  to  Improve Quality,




     Increase Sales," The Produce News, Sept. 11, 1976.




55.  Pimentel, op. cit., p. 15.




56..  PESTICIDE USE REPORT BY COMMODITY, 1973, State  of  California Department




     of Food and Agriculture, Agricultural Chemicals  and Feed, Sacramento,




     1974, pp. 170-175.




57.  Don Avis, pers. comm., October 14, 1974.




58.  According to data provided by Norgaard, see note 67, below.




59.  Reuther, op. cit., p. 81.




60..  INTEGRATED  PEST MANAGEMENT PROGRESS REPORT, Volume 1, September,  1974,




     p. 87.




61.  C. E. Kennett, citrus entomologist, University  of  California, Berkeley,




     pers. comm.




62.  C. B. Huffaker, "The Ecology of Pesticide Interference with Insect




     Populations," in AGRICULTURAL CHEMICALS—HARMONY OR DISCORD FOR FOOD,




     PEOPLE AND  THE ENVIRONMENT, John E. Swift, ed., University of California,




     1971, p. 99.




63.  c. E. Kannett, personal communication.




64.  .Reported in Ray Smith, "What is Being Done by the Universities,"  in




     AGRICULTURAL CHEMICALS—HARMONY OR DISCORD, p.  141.

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                                                                             105






65. As part of a study on pest management technology, for the Ford Foundation,




    W. Willey and R. Norgaard have surveyed growers on their attitudes  toward




    integrated and conventional pest management and have collected objective




    data on growers who have and have not adopted independent pest management




    consultants.  The data on orange growers has been made available to us




    and we report some of our observations on these data.




66.  R. c. Hall, R. Norgaard and P. True, "The Performance and Independent




    Pest Management Consultants in San Joaquin Cotton and Citrus, California




    Agriculture, October, 1975, p. 12.




67. Howard B. Lorbeer, FIFTY SECOND ANNUAL REPORT, FILLMORE CITRUS PROTECTION




    DISTRICT, December 31, 1973.




68. A survey of nine California citrus growers, six located in the Central




    California growing region and three in the Desert region.




69. J. R. Horton, "The Citrus Thrips," United States Department of Agriculture




    Bulletin No. 616, February 14, 1918, Washington, D. C.




70. Stanley F. Bailey, "Thrips of Economic Importance in California,"




    Circular 346, University of California Agricultural Experiment Station,




    Berkeley, December, 1938, pp. 39-44.




71. Ronald Hawthorne, "Estimated Damage and Crop Loss Caused by Insect/Mite




    Pests, 1974," California Department of Agriculture, Sacramento,




    September 4, 1974.




72. D. L. Flaherty, J. E. Pehrson and C. E. Kennett, "Citrus Pest Management




    Studies in Tulare County," CALIFORNIA AGRICULTURE,. November, 1973, p. 4.




73. G. E. Carman, et_ al. "1974-1975 Treatment Guide for California Citrus




    Crops," University of California Agricultural Experiment Station, Riverside,



    1974, p. 31.

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                                                                           106


74. Dick Lyneis,  "If  You Rule  Out  Pesticide Use,  You May Have to Eat Worms,"

    THE PRESS,  Riverside, June 3,  1971.

75. Anonymous,  SUNKIST CITRUS  DEFECTS MARKET HANDBOOK,  Sunkist Growers,  Inc.

     1974.

76. Don Avis,  pers.  coma., August  11, 1974.

77. William K.  Charles, pers.  comm.,  December 19, 1974.

78. W.  H. Ewart,  H.  S. Elmer and 0. L. Browner,  "Effects of Citrus Thrips

    Populations on Navel Orange Fruit Yield and  Tree Growth in Central

    Valley" Citrograph, November,  1975,  p.  9.

79. W.  N. Ewart,  pers. coma.,  October 15,  1976.
80. T.  F. Leigh,  pers.  comm.,  February 11,  1977.
81.  Cost estimates and yield estimates provided  by citrus entomologist,  C. E.

     Kennett, pers. comm., October  26, 1976.

'82.  Don Avis,  Sunkist Pest Control Circular, February,  1974, 1975.

83.  Don Avis,  Sunkist Pest Control Circular, March,  1976.

84.  Flaherty,  op. cit., p. 4.

85.  "Rules and Regulations Governing  Fruit Packed For Marketing by Sunkist

     Growers, Inc. Under its Trademarks Sunkist,  Excel,  Sk, and Red Ball  and

     Under Association Non-Advertised  Brands," Sunkist Growers, Inc., November

     1,  1967.

86.  C.  E. Kennett and D. L. Flaherty, "Spider Mites," San Joaquin Valley

     Agricultural Research and  Extension Center,  Parlier, September, 1974.

.87..  R.  F. Luck, R. van den Bosch,  and R. Garcia,  "Chemical Insect Control,

     A Troubled Pest Management Strategy,"  to be  submitted to BioScience, 1975.

88.  R.  M. von Rumker, PESTICIDE MANUAL,  RvR Consultants, Shawnee Mission,

     Kansas, August,  1972, p. 234.

89.  E.  C. Loomis and W. Stengor, "Environmental  Impact  of Pesticides.  Insects,

     Mites, and other Invertebrates, Univ.  of Calif., Div. Agric.  Sci., 1972,

     p.  113.

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                                                                          107



 90.   Kennett, op. cit., September, 1974, p. 20.


 91.   Hawthorne, oo. cit.


 92'.   George P. Georghiou, "Resistance of Insects and Mites to Insecticides


      and Acaracides and the Future of Pesticide Chemicals," in AGRICULTURAL


      CHEMICALS—HARMONY OR DISCORD, p. 118.


 93.   Kennett, op. cit., September 1974, pp. 20, 26.


 94.   "Treatment Guide for California Citrus Crops," p. 31.


 95.   PESTICIDE USE REPORT, 1973, p. 170-175.
                                                                     •

 96.   Flaherty, op. cit., p. 5.


 97.   IPM PROGRESS REPORT, 1974.


 98.   Lorbeer, op. cit.


 '99.   W. Leland Brown, pers. comm.,. August, 1974.


100.   Observed at the Berkeley Co-op, December 17, 1974.


101.   Observed on Bay Area television and Safeway Stores, December, 1974.


102.   Quarles, op. cit.


103.   Sunkist representatives, pers. comm., September 24, 1974.

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                                                                       108
      CHAPTER 4.  COSMETIC QUALITY STANDARDS AND PESTICIDE USAGE


                 IN PROCESSING TOMATOES AND CLING PEACHES




     The conditions under which this investigation was conducted did not


permit as thorough an assessment of the produce cosmetic quality-pesticide


usage relationship in processing tomatoes and cling peaches as was done


for fresh market oranges.  However, sufficient information was gathered


to indicate that the pressures, which force the orange grower to produce


"impeccable" produce, also bear upon the tomato and cling peach grower.


Taken together  the three crop studies appear to set a pattern which


probably applies to many other types of agricultural produce.



PROCESSING TOMATOES


   TOMATO PRODUCTION


     California leads the nation in the production "of tomatoes.  In 1974


83 percent of the nation's supply of processing tomatoes (4.8 million tons)


were produced in California.   Along with Florida, California is the leading


producer of fresh tomatoes, each state supplying about 25 to 30 percent of


the national need.  The production of fresh and processing tomatoes are.


each very specialized activities; they are essentially different crops.


Therefore, this discussion will be restricted to processing tomatoes.


     Processing tomatoes are not grown throughout the state but are con-


centrated in certain geographical sections.  Eighteen of California's 58


counties produce processing tomatoes, with the mid-Central Valley counties


•of Yolo, Fresno, San Joaquin, Sutter, Solano and Sacramento being the major


producers.  Yolo County leads the state with a. 1972 production of one

                                                               2
million tons, about one-sixth of the national total production.   The

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                                                                       109



harvested acreage for the processing tomatoes in California has fluctuated


significantly from year to year.  For example the harvested acreage declined


from 231,000 acres in 1968 to 141,000 acres in 1970, but since 1970 acreage


has been steadily increasing at about 15,000 to 30,000 acres per year.  The


overall trend in harvested acreage for the state has been increasing in the


post World War II period.  On the other hand, for the United States, as a


whole there has been a declining trend from the peak harvest year of 1946


of some 570,000 acres, to the 1973 harvest of 300,000 acres.  The yield per


acre in California processing tomatoes has doubled in this same period to

                                            3
its present level of about 24 tons per acre.   There has been a sharp


decline in the number of processing tomato growers in California, from

                                                    4
about 4000 growers in 1964 to just over 600 in 1973.


     With the reduction in the number of processing tomato growers in


California from 4,000 in 1962 to about 600 in 1973,  it might be thought


that an effective bargaining association would develop among tomato growers.


However, this does not appear to be the case, at least to date.  With


several hundred processing tomato growers, without an effective grower


bargaining association, facing only a handful of processing firms, it


might be expected that the market is monopsonistic, with the bargaining


power centered in the processing firms.  But, Chern presents some econometric


evidence which suggests that the market is competitive with respect to the


price paid for processing tomatoes.   This, does not eliminate the possibility


that the processing firms may utilize the quality standard provisions of


processor-grower contracts to their advantage.  Statements from the California


Tomato Growers Association do not indicate that to date, the Association


has been able to muster any significant bargaining power.  In March of 1976,

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                                                                       110
the Association accepted a contract with Hunt & Wesson, the price leader, for

$47 per ton of tomatoes, down 12% from 1975.   California Tomato Growers

Association President, Jack Hayes, urged tomato growers to reduce acreage

                                              8
by 20% from the 299,200 acres planted in 1976.   However, if the lower

price fails to result in this substantial reduction in tomato acreage, the

Association has no formal method of enforcing or coordinating such a

reduction among its members.

     Lower product price may not, in itself, result in the optimal decrease

in planted acreage for the following reason, according to agricultural
                                 q
economists Doll, Rhodes and West:

     As Jthe total output of a particular farm product increases, prices
     received by producers decline.  What started out as individual
     decisions to increase output on individual units has consequences
     for the group.  An important aspect of the situation is that the
     decision with respect to the level of production is made prior to
     the time the product is ready to sell.  In many cases this may be
     several months or even in a few cases many years prior to the time
     the product is sold.  Research related to individual decision making
     with respect to level of output has shown that decisions are based
     on current price or the price which has existed in some recent past
     period.  The level of individual farm output may or may not be the
     optimum one if price changes during the production period.  However,
     assume for the moment that the individual farmer is well aware of
     the fact that if he and other individual farmers increase output
     prices will decline.  Will he as an individual find it desirable to
     restrain his increase in output?  Only if he can be assured that
     others will act in a similar way — an assurance he does not have!


USE ALLOCATION OF PROCESSING TOMATOES

     In 1960, the latest year in which complete comparative data are avail-

able, the California processing tomato crop was allocated to the following
     10
uses:
     Canned Tomatoes	212,000 tons
     Tomato Juice	211,000 tons
     Chili Sauce	 25,000 tons
     Tomato Purae	142,000 tons
     Tomato Products	 50,000 tons
     Tomato. Catsup	367,000 tons
     Tomato Paste	801,000 tons
     Tomato Sauce	414,000 tons

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                                                                       Ill

According to Mel Zobel, Farm Advisor in Yolo County California, processing

tomatoes are not distinguished by use until after they have been acquired

by the processor* thus all processing tomatoes must meet the same quality

standards, even though, according to Zobel, it is impossible for the

consumer to detect insect _parts or insect damage in the ground-up tomato

products, such as tomato paste, sauce, puree, and catsup.    As indicated

above, the presence of insects of field origin in these products has not

been known to cause a health hazard.                                        -


QUALITY STANDARDS FOR PROCESSING TOMATOES             '

     Tomato is one of the few crops in which there is a state quality

standard which refers  explicitly to the product meant for processing.  Until

1968 the state quality standards for processing tomatoes allowed up to 10

percent worm damage.  However, the provision was amended ' in 1968 to restrict

worm damage to 2 percent.                     .

     Processor contracts generally do not allow more than one percent worm

damage, and in fact many contracts allow the buyer to reject shipments which

contain in excess of 1/2 percent worm damage, and, in some cases, the buyer

may require zero worm damage.  The effect, in all these cases, is for the

grower to feel that^his tomatoes must have a zero level for worm damage, if

he is to avoid the risk of rejection of his crop at the cannery.  As one

grower explained,                   .     .        -         .

     Standards for insect parts and damage can be graded.  It is the idea
     of establishing standards that are designed to eliminate ALL insects
     that cause fear to develop in the mind of the farmer.

     We were under scheduled treatments and most of them are bought out
     of fear of very low tolerances established by processors through
     contracts.

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                                                                       112
     Further reductions in pesticide usage could be obtained if there
     weren't the fear of the zero tolerance for insect parts.

     I know we never would have to spray tomatoes if the rumor weren't
     to have zero tolerances on worms.  Russet mite is sprayed for only
     in unusual situations, usually after treating for worms.

In addition to contractual obligations tomato processor pressure growers who

deviate from an intensive spray program.  One processor representative sent

the following letter to a tomato grower who was attempting integrated

control:

     The 1971 tomato crop is in the process of being planted and, although
     we have had cool weather, the crop is approximately three-fourths
     emerged.  The early acreage is progressing at a rather slow rate
     but appears to have a satisfactory stand.

     I am again making it my responsibility to remind you that a continued
     emphasis on quality of raw product with special attention to insect
     contamination, is mandatory if California tomato products are to
     maintain their high quality reputation and market acceptance.

     The company intend to protect their operations during the coming
     harvest season by giving very close scrutiny to any or all your loads
     where "State Inspection" has indicated a measurable amount of worm
     contamination.  If contamination is confirmed by our own inspection,
     such loads may have to be returned to you.  Presentation of two
     consectuive loads containing 1% or more of worm contamination
     may result in condemnation of the remainder of the field involved.

Later in the season the processor representative wrote:

     It would look like we will have a full schedule for the month of
     August and the early part of September; therefore, I recommend
     that a twice-weekly inspection of all of the tomato fields be
     carried out and a vigorous insect prevention program be in effect
     at all times.  We do not want insect contaminated tomatoes (emphasis
     in the original)

Obviously, growers who receive letters of this kind are likely to be very

apprehensive about having worms of "a measurable amount".  A "vigorous insect

prevention program...in effect at all times" can only refer to prophylactic

spraying for worms whether they are present or not.

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                                                                       113
PEST MANAGEMENT FOR PROCESSING TOMATOES                                .




     The major insect pests in processing tomatoes are such'Lepidopterous




larvae as the tomato fruit worm, cabbage looper, armyworms, pinworm, and




tomato hornworm.  Russet mite, flea beetle* darkling ground beetle and




aphids are also commonly found attacking tomatoes.  Integrated pest manage—




ment and conventional chemical control depend on similar chemical materials,




with the exception that certain broad-spectrum  cehmicals are




avoided under integrated pest management.  However, under integrated pest



management there are generally fewer applications of the chemicals, lower



dosages of the chemicals used, and an avoidance of combination applications.




     In a recent study conducted by the Association of Applied Insect



Ecologists in collaboration with Dr. Charles Summers of the University of



California, Berkeley, the effectiveness of conventional chemical control and




integrated pest management, programs in processing tomatoes were compared.




Twenty-four fields were divided into two groups, twelve under conventional



control and- twelve under integrated control.  Reports of every chemical




application and the reason for it were requested.  Frequently an insecticide




was applied because the grower "felt like it".  At the time of a fungicide




application often an insecticide was added for good measure.  Summers




reported that approximately 30 percent of the insecticides were applied as



fungicide/insecticide combinations.



     The research team members did their own grading which was repeated, by



state inspectors.  None of the loads were rejected.  Statistical analyses




revealed that there was no difference in yield or insect damage between the



integrated pest management and the conventional chemical control fields.  At



one point in the study, when the integrated fields had received one treatment

-------
                                                                       114
and the conventional fields three, a group of cannery representatives and



growers were asked to compare two fields in the Lodi area; they could detect



no differences between the conventionally controlled field and that under



integrated pest management.           '-....'"•_               .  •



   •  Overall the integrated pest management fields received 58 percent



less insecticides than the conventional chemical control fields.  The



integrated control fields received between zero and three applications while



the conventional fields received between two and four applications~  The



pest management cost per acre was significantly lower for the integrated


   "           '"'        ' '        '     •      13        '                   '' • •'
control fields than the conventional fields.    Historically several



privately practicing pest control advisors have provided excellent tomato



pest control for California growers under integrated control programs


     •      . '  • . •    • •       .       '.     ' •      '       •               14

which utilized substantially less pesticide than conventional programs.
     The indications, then, are that current quality standards for processing

   •         •             '••••••    •    "               " '•           •*  '

tomatoes can be met with, a significant reduction in pesticide use.  However,

                        ' . •      •      .                T

as we have indicated above (see page 111), implied zero tolerance cosmetic



quality or insect contamination standards form an obstacle to grower        •



acceptance of integrated pest management'.  Furthermore* relaxation of



pest "injury" levels for processing tomatoes would allow for an additional,   ..



reduction in pesticide use. ' According to Zobel, two-thirds of the current



pesticide use in processing tomatoes is for the tomato fruit worm "control".



Under prevailing standards there is a strong probability that the bulk of



this treatment is essentially for cosmetic purposes and not because of



substantial threat to crop yield, quality or wholesomeness.'• In 1973,



89,923 pounds of parathion was sprayed on 113,610 acres of tomatoes in



California, according to the California State Department of Agriculture



Pesticide Use Report.  In addition 163,439 pounds of Methomyl (Lannate) and

-------
                                                                       115
256,488 pounds of Carbaryl (Sevin) were used.    These pesticides are often




used in the treatment of worms on tomatoes.




     There seems to be no compelling reason why the cosmetic quality and




insect contaminant standards in processing tomatoes should be as stringent




as they currently are, especially in the majority of cases where the




tolerance for isnect parts or damage approaches the zero level..  For example,




more appropriate worm damage standard would perhaps be the current state




standard of 2 percent for processing tomatoes.  It seems reasonable that




quality standards could be less stringent for the high percentage of




tomatoes that are allocated to such products as paste, puree and catsup if




some more rational allocation method could be designed.  In order for




there to be a relaxation of quality standards for processing tomatoes the




federal FDA regulations for insect parts debris would have- to be clarified




so that these regulations could not be used, by the processors as a justi-




fication for demanding stringent cosmetic quality standards for raw produce




at the input end of processing.  As indicated above, the future adjustment




of quality standards for processing tomatoes may also depend in part on




the growers who, quite ironically, may be developing a stronger position




vis-a-vis the processors as their (the growers) numbers diminish.  Whether




this stronger bargaining organization evolves., and if so, whether the




growers place high priority on modifying quality standards, remains to




be seen.






CLING PEACHES




     Virtually all cling peach production takes place in California.  In 1974,




51,705 acres of California agricultural land was devoted to cling peach

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                                                                       116





                                            18
orchards, producing a yield of 791,856 tons.    Cling peaches are used




exclusively as an input to the canned fruit industry, along with apricots,



bartlett pears and freestone peaches.  Cling peach is the predominating



commodity in California canned fruit industry accounting, in 1969, for



about 60 percent of the input in terms of tonnage and 54 percent in terms


                         19
of cash value to growers.






ACREAGE AND PRODUCTION



     Cling peach acreage, as well as production, increased throughout the



1960's only to take a precipitous decline in the last few years.  The number



of cling peach growers and canners declined significantly in the 1960's.



Between 1960 and 1968 the number of cling peach growers decreased from



about 2,800 to about 2,200, while the number of cling peach .canners declined



from 38 to 17.2°






THE CLING PEACH MARKETING ORDERS



     These historical trends are, in part, a result of the operation of the



cling peach marketing orders.  Cling peach growers and canners have been



under the control of state marketing orders since the early 1930's.  The



cling peach marketing orders have been the most comprehensive and complex



of any, and have certainly resulted in the most heroic attempts at commodity


                 21
quantity control.






SURPLUS ELIMINATION




     Until recently, the cling peach marketing orders contained a number of



provisions for the elimination of "surplus" fruit both by the producers



and processors.  If the cling peach marketing board determined that a

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                                                                       117
"general surplus" exists, that the producers aggregate capacity to produce



peaches exceeded the needs of the canning industry with consideration for



excess tonnage to assure an adequate supply in the case of adverse weather



or growing conditions, then individual growers had the option of eliminating



up to 108 bearing trees per acre from their orchards.  As an incentive



for such tree elimination the grower was granted credits for trees removed



against any seasonal surplus elimination that required mandatory elimination



by green drop or tree elimination.  By May 15 of each year, when the fruit



reached a degree of maturity that makes an accurate estimate of the final



yield possible, the crop was again evaluated to determine whether a "seasonal



surplus" existed.  If the board determined that a seasonal surplus did



exist it could recommend to the State Director of Agriculture that an order



be issued which required each and every peach grower in California to



eliminate a specified percentage of his crop by green drop or by tree



elimination.  Green drop required the removal of all peaches from a



specified number of trees in the orchard.  As an alternative the grower



could remove an equivalent number of bearing trees or apply credits for



bearing trees removed under the general surplus provisions.



     Surplus diversion could also take place at the cannery.  Immediately



prior to harvest the cling peach marketing order board reviewed its earlier



estimates of crop tonnage available in relation to market requirements.  If



a surplus was found to exist at this point, it recommended to the Director


of Agriculture that each processor be required to divert a quantity of



Number 1 cling peaches from normal processing during the season.  The amount



diverted could not exceed 7 percent of the quantity of Number 1 cling peaches

                         ?2
available for processing."

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                                                                       118
QUALITY PROVISIONS




     The cling peach marketing orders also contained provisions in regard to




quality standards.  These are listed in Table 1.  As we have Indicated above




there are no state statutory standards that are applicable to peaches used




as an input to processing.  The state quality standards for fresh (freestone)




peaches are concise and rather conservative.  The definition of insect




damage is rather vague, including injury "which has penetrated or damaged




the flesh."  The tolerance for insect damage is 5 percent, or 7 1/2 percent




if damage due to all causes is less than 10 percent.




     The cling peach marketing order sets quality standards for Number 1




cling peaches, the grade that fruit must meet in order to be acceptable for




processing.  The quality provisions in the marketing order are much more




detailed than the state quality standards for fresh peaches and, in




addition, the marketing order contains some types of quality provisions




that are absent from the state quality standards for fresh peaches, most




notably size standards.




     In addition to these marketing order quality standards, the contractual




agreement between processors and producers further reduces the tolerances




for brown rot and worms or worm damage to 2 percent and 1 percent respectively.




     The general cosmetic nature of these provisions is evidenced by the




fact that, under the provisions of the marketing order, the processor could




divert off-grade peaches or an equivalent amount of Number 1 peaches from




production.  That is, once the percentage of off-grade peaches was established




by inspection of a random.sample, the processor could simply divert that




percentage of peaches fron processing, regardless of the quality of the




individual peaches diverted.  The remaining peaches, which could include a

-------
                                                                       119
percentage of off-grade fruit, was then processed.  The producer, of course,

was not paid for the peaches "culled out" in this manner. . It is possible

for the canners to process off-grade peaches because, in most cases, the

"injury" is eliminated along with the skin when the peaches are boiled in

1   24
lye.

     According to Jamison the quality standards for Number 1 cling peaches
                                                                   25
have increased in their specificity in successive marketing orders.    The

green drop and tree removal provisions were used heavily and, the extremely

heavy use of tree elimination in 1969, 1970 and 1971 resulted in a 26

percent reduction in cling peach acreage and a 31 percent reduction in cling

                                       26
peach production between 1969 and 1972.    In his study on the cling peach

marketing orders Jamison explains this history in the following way.

Operations of the cling peach marketing orders resulted in short-run

increases in net returns to the grower.  But this results in a period of
                                                               27
rapid expansion in the production sector.  As Jamison comments,

     Monopoly pricing is, by definition, impossible in industries where
     entry is not highly restricted.  Where this is recognized in agri-
     culture attempts have been and are still made to block new entrants.
     These attempts have proven fruitless because the necessary condition
     of internal homgeneity within the monopoly-seeking group of fanners
     has never existed.  Producers who achieve rewarding net returns under
     cartel-like conditions have not long been content to subsidize their
     less profitable neighbors by restricting their own production.  Nor
     will the profitable members of the cartel be willing to erect entry
     barriers which may also limit .their own expansion.  Under these
     conditions, monopoly pricing is an impossible long-run goal in
     agriculture, and the pursxiit of the structural conditions which are
     required to achieve it is windmill-tilting in the extreme.

     The same factor which draws a disproportionate amount of new resources

into the production of cling peaches, the artifically maintained price of

the crop also results in a contraction of the processing sector.  If canners

pass the higher price of their raw produce on to the consumer they face a

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                                                                       120


fall in demand and, consequently, a profit squeeze; if canners absorb the

increased cost of the cling peaches they also face a profit squeeze.  Thus,

in the same period that the cling peach production sector was undergoing

price induced expansion, the cling peach processing sector was undergoing

contraction.  The gap was partially filled by an expansion of grower-owned

cooperative canneries.  However, it was also found necessary to exert pro-

gressively more stringent marketing order controls culminating in the 1969-71

                                               28
period with a massive tree elimination program.

     In evaluating the social cost of the cling peach marketing order •

Jamison includes the cost of eliminated trees, of green dropped fruit, of

cannery diverted fruit, of artifically high consumer prices, and of agri-

cultural resources.allocated inappropriately to the production of cling

peaches.  Jamison concludes,

     Not only have resources spent in cling peach production risen to
     levels far in excess of those suggested by market demand, but the
     producers themselves are being assessed continually higher costs as
     the burden of carrying this excess capacity.  In addition, while
     maintaining in production uneconomic orchards and inefficient
     producers the cling peach industry continues to attract new entrants
     who can operate profitably under the costly control programs and
     relatively stable price levels that have been maintained.  This new
     capital investment increases the surplus burden, and, more importantly,
     it further exaggerates the misallocation of total resources within
     the economy.  Because of this the consuming public loses two ways--by
     prices higher than justified by total resources allocated to cling
     peaches production and by the necessity of depriving o'ther more
     desired production activities of these resources .... One additional
     repercussion of the crop restriction pursued by the cling peach .
     industry relates to its effects on the total income generated by
     the product as it moves to the consumer.  For example on the basis
     of (postulated price elasticities) the increase in total revenue to
     producers resulting from a reduction in the pack from 30 million to
     24 million cases is $7.5 million.  This pack reduction decreases
     revenue at the processor level by $15 million and at the retail level
     by $27 million.  In other words, maintenance of the original level of
     production at the grower level would result in a total revenue
     generation of $210 million compared to $183 million at the quantity
     suggested by unit elasticity at the grower level.  This could be

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                                                                       121
    *     '        ••        ..»,••       •
     interpreted as a loss of jobs In the marketing as veil as the supplying
     Industries.  At the same time the retail cost of the product to
     consumers Is raised from $7.00 per case (29c per 2 1/2 size can) to
     $7.60 per case (32c per can).  The costs of restrictionism of this
     type are clear.  Even the cling peach growers, the only possible
     beneficiaries of the scheme, have eventually lost due to the apparent
     necessity of eliminating 25 percent of their production in 1970 and
     an even greater share in 1971.29

To these costs must be added the Increased cost of growing cling peaches as

individual growers, striving to Increase yields in order to beat back the  .

losses due to increased quality standards and cull out rates, utilise inputs,

Including pesticides, in a more Intensive manner.  Additionally, under these

conditions there is an irreaistable temptation for canners to attempt to"...

increase their supply of cling peaches and reduce the price of this supply

through the utilization of quality standards.  The grower has an equal

tendancy to attempt to meet the most stringent quality standards, in order

to maintain the full maintained, price of his produce.  Of course, he has an

added incentive to maintain quality in regard to the standards for •worms or

worm damage, since the entire shipment can be rejected on failure to meet

this standard.  Growers may even resort to expensive and time-consuming '

hand-culling at the ranch in order to insure that no worm damage is present

in  their crop.  Effective pest management, through chemical or other means

would obviously be preferred by the grower.

     Finally the increasing production of cling peaches at an artif ically

maintained price, coupled with the decreasing    capacity of canning plant

facilities, has aggravated the.problem Inherent in matching the time flow

of  harvested peaches with the plant capacity of canneries.  This problem Is

illustrated in figure 7.  Because of a constant plant capacity but a

seasonal variation in cling peaches harvested, if the canning industry is

to  run anywhere near full capacity for most of the season it will face an

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                                                                       122
over-capacity situation—an over-supply of peaches—for at least part of



the season.  The cling peach industry is currently giving consideration to



the development of and distribution of cling peach varieties that would



result in a smoother seasonal yield pattern, but such a program may take



a very long time to implement.  In the meantime, canners find it to their



advantage to invoke quality standards, during the surplus part of the season,



in order to reject the surplus cling peaches on the market.  The severe



quality standards for worms and brown rot that are often incorporated into



standard cannery-producer contract, or are included in "dirty riders" to .



the standard contracts allow for this to happen.  This is the reason why



the quality standards specified in individual processor-producer contracts



are more severe than the quality standards spelled out by the industry-



wide marketing order.  Growers would like individual contracts to coincide



with the marketing order but have not been totally successful on this


      30
score.



    . Various attempts have been made, in recent years, by cling peach



growers to alleviate the negative aspects of the cling peach marketing



order.  In 1971 the California Canning Peach Association, a grower's



bargaining cooperative, backed state legislation which would have allowed



growers to vote on the desirability of acreage limitation.  This bill passed



the state legislature but was vetoed by the Governor.  The Association has



bargained for long-term contracts with processors.



     Since 1975 the surplus elimination provisions have been excluded from



the cling peach marketing order.    The California Canning Peach Association



has attempted to constitute itself the exclusive bargaining cooperative for



the industry and thereby-replace the surplus elimination provisions of the

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                                                                       123
marketing order with a combination of free market regulation and grower
discipline.  However, the Association has not been successful in achieving
this goal to date.  In 1976 the Association settled on a price of $115
                                                          32
per ton for cling peaches, down 10.5% from the 1975 price.    Before the
cannery strike of 1976 there were 100,000 tons of cling peaches in surplus,
                                                                      33
and the Association was asking for reinstatement of cannery diversion.
California Canning Peach Association President, Ron Schuler stated that,
"The larger stocks of canned fruit on hand and prospects for a good harvest
and large crops in 1976 have put a stress on the association's ability to
                     34
bargain for a price."    Thus, the forces which make quality standards a
critical determinant in the economic survival of cling peach growers do not
seem to be at an end.

PEST MANAGEMENT IN CLING PEACHES
     The major pests in California cling peaches are the Oriental fruit
moth, Grapholitha molesta (Busck), the peach twig borer, Anarsia lineatella
Zeller, and several mites:  the two-spotted spider mite, Tetranychus urticae
Koch, the European red mite, Panonychus ulmi (Koch) and the peach silver
mite Aculus comutus (Banks).  Other pests that can cause trouble include
San Jose scale, Coryneum blight (Shot hole), thrips, lygus, the consperse
stink bug, the western peach tree borer, the fruit tree mite and the flat-
             35
headed borer.    Damage attributable to the Oriental fruit moth and the
peach twig borer is summarized below:
           ORIENTAL FRUIT MOTH                    PEACH TWIG BORER
YEAR    YIELD LOSS    CONTROL COSTS          YIELD LOSS    CONTROL COSTS
1970    $1,261,804    $2,172,979             $1,840,827    $3,027,282
1974    $2,154,950    $2,100,340          .   $5,449,737    $6,157,599
Source:  Ronald Hawthorne, California State Survey Entomologist

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                                                                         124
       Under conventional control programs these two pests have been treated


  heavily with organophosphata and carbamate insecticides.  In 1974 California


.  peach growers sprayed 54,675 acres with 71,704 pounds of Guthion and 40,664


  acres with 70,059 pounds of parathion.  This practice has resulted in the
                          •

  evolution,  to serious pest status, of the phytophagous mites.  For example,


  California peach growers sprayed 15,079 acres with 25,895 pounds of the

       •'  ' -.    •' '         37      '     "  '     '•.'"'
  acaracide Omite in 1974.    In. 1974, pest control costs for cling peaches

        '       •   -   •    •      '     •     •         '        38 '' •          •
  vere $154/acre out of total production costs of $701.19.


       A preliminary integrated pest management program for cling peaches


  has been developed"which is designed to take advantage of the natural controls


  already present in the system through a program of careful monitoring of


  insect and mite population levels and the selective use of pesticides. The


Bredacious mite Metaseiulus Occident alia which is commonly present in cling


  peach orchards, is an effective predator of the two-spotted spider mite and
                                                                      •

  the European red mite.  However, under conventional control this beneficial


  mite is often suppressed by the imprudent application of organophosphates
   •      •             '     •       - •        .                    t         -.-...

•  and carbamates^.  The peach silver mite is an important secondary food source


  for M. occidentalis, thus if the peach silver mite is eliminated with


  acaracides, the population of M. occidentalis will starve, very few will


  overwinter, and an inadequate population will be present in the spring to


  control the population of the two-spotted spider mite and the European red


  mite.  Based on this.knowledge, L. E. Caltagirone, of the University of


  California's Division of Biological Control, Albany, has devised the following
      /
                                                       39
  integrated pest management program for cling, peaches:              .          .


       (1) Control of peach twig borer, San Jose scale, and mites (partially)
           with a dormant spray.

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                                                                       125
     (2) Elimination of. the early spring spray.

     (3) Control of Oriental fruit moth, timing the treatments very
         carefully; two sprays during the season nay be sufficient.

     (4) Reduction or elimination of the sprays to control two-spotted
         spider mite and European red mite, if there are enough predators,
         treatments are not necessary.

     (5) Limitation of the treatments against peach silver mite to the
         absolute nrf.nlTmnn; very few cases, if any at all should require
         spraying.         '                    . •  .              .

Caltagirone comments, that the importance of the peach silver mite as a. pest

has been overestimated by growers.  Additionally,  he comments in regard to

the Oriental fruit moth and peach twig borer that,

     The economic injury level in terms of population density for these
     two species has not been established.  Tolerable damage to fruits
     may be somewhere between zero and four percent.  Some growers, and
     probably most if not all canners, feel that no amount of worm damage
     to fruits should be tolerated..  Apparently, damage to twigs is of
     little importance in bearing trees.  So, this gives some idea of
     how much damage we can accept.  But there is another dimension to
     the problem.  In order to implement a modified pest control program,
     it is necessary to predict the extent of damage that a given early
     season population will eventually cause, so the tactics can be
     modified, if necessary, without endangering either the crop or the
     program.

This critical aspect of the integrated pest management program for cling

peaches is extremely sensitive to the specification of quality standards and,

as we indicate below, has been adversely affected by recent modifications in

the quality standards.


COSMETIC QUALITY STANDARDS AND PESTICIDE USE IN CLING PEACHES

                               41
     In private communications,   an independent pest management, consultant

who manages a. substantial acreage and is familiar with both conventional

chemical control and integrated pest management in cling peaches indicated

that among the pests Lygus and thrips cause cosmetic injury, only and must

be treated simply to-meet quality standards.  Furthermore, the 1st brood of

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                                                                       126
peach twig borer and Oriental fruit moth cause only superficial (cosmetic)




damage that is removed with the peach skin in the processing procedure.




Mildew is superficial on fruit and is removed during processing.  Coryneum




blight (Shot hole) must be controlled in the dormant season but an extra




spray to protect the fruit from Shot hole will only prevent superficial




injury which presently results in the fruit being culled.  San Jose scale




can be very harmful to the tree vigor by virtue of its feeding on twigs and




limbs but the fruit feeding is not evident after the skin is removed in




processing.




     According to this same pest management consultant the quality standard




for worms (peach twig borer arid Oriental fruit moth) has undergone important




modifications in the last few years.  In the past fruit injury could only be




classified as worm damage if associated larvae were present in the lot of




fruit.  Under the new procedure the presence of larvae is not required.  The




effect of this is to make it necessary to treat the fruit to prevent




superficial damage caused by the 1st and 2nd broods of Oriental fruit moth




and peach twig borer, which feed only superficially on the green fruit.




The consequential early season spraying with organophosphates and carbaraates




disrupts the entire integrated pest management strategy.  The natural enemies




of mites are suppressed and it becomes necessary to treat for these pests




with expensive acaracides.  The situation is further aggravated because in




most cases the mites, develop resistance to the acaracide within two or




three seasons.




     Thus, in this case, the effect of strict enforcement of cosmetic quality




standards is to force the abandoment of a well-developing and promising




integrated pest management program with resultant increases in pesticide use

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                                                                       127
and further disruption of the peach agro-ecosystem.  Moreover, the motive




for strict enforcement of cosmetic quality standards, in this case, is




totally unrelated to consumer preference, or to crop yield or vigor; rather,




it is a side-produce of the continuing economic struggle between the interest




of peach growers and processors, a side-product whose negative social impacts




are not well taken into account by the current economic mechanism that



determines how cling peaches are to be produced.

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                                                                       128






 Cosmetic Quality Standards and Pesticide Usage in Processing Tomatoes




 and Cling Peaches—Footnotes




 1.   Wen S. Chern, "Acreage Response and Demand for Processing Tomatoes in




     California," American Journal of Agricultural Economics, May,  1976,




     p. 209.




 2.   Gordon A.  King, Edward V.  Jesse and Ben C. French,  Economic Trends




     in the Processing Tomato Industry,  University of California Extension




     Service, August 23,  1973.




 3.   King, op.  cit.




 4.   William H. Friedland,'Amy Barton and Robert Thomas,  "De-stalking the




     Wily Tomato," University of California, Santa Cruz,  1976,  p.  18.




 5.   Chern, op. cit.




 6.   Anonymous, .Pacific Fruit News, March 27, 1976.




 7.   Anonymous, Western Packing News, February 16, 1976.




 8.   J. P. Doll, V.  J. Rhodes,  and J. G. West, Economics  of  Agricultural




     Production, Markets, and Policy, Richard D. Irwin,  Inc., 1968,




     p. 472.




 9.   King, op.  cit., p. 124.




10.   Mel Zobel, pers. comm., March, 1975.




11.   Cal. Food and Agric. Code 40844-40845.




12.   See contractual standards,  Table 1.




13.   Anonymous  grower, pers. comm.




14.   Anonymous  grower, pers. comm.




15.   Charles G. Summers,  The Economic Impact of Integrated Pest Management




     in California Processing Tonatoes.   A report prepared for  the Environ-




     mental Protection Agency,  18 pp.

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                                                                        129






16.  John Nickelsen, Louis Rudd, and Everett Dietrick, pers. cotnm.




17.  Mel Zobel, op. cit.




18.  State of California Department of Food and Agriculture, Pesticide Use




     Report by Commodity, 1973, pp. 262-266.




19.  W. R. Bowen, et. al.., "Pest and Disease Control Program for Tomatoes",




     Division of Agricultural Sciences, University of California, 1973.




20.  Anonymous, Cling Peach A1™«nac, 1975, California Canning Peach Association,




     San Francisco, California, 1975.




21.  John A. Jamison, "Marketing Orders and Public Policy for the Fruit and




     Vegetable Industries", Food Research Institute Studies in Agricultural




     Economics, Trade, and Development, Volume X, No. 3, 1971, p. 242.




22.  Ibid., p. 322.




23.  Ibid., p. 241.




24.  Ibid.. pp. 371-377.




25.  See Table 1.




26.  See p. 126, below.




27.  Jamison, op. cit., p. 371.




28.  Ibid., p. 352.




29.  Ibid., p. 329.




30.  Ibid., pp. 326, 351, 352.




31.  Ibid.. pp. 341-348.




32.  Anonymous, Cling Peach Quarterly, Spring, 1974, pp. 7, 10.




33.  Anonymous, Cling Peach Almanac, 1972, 1975.




34.  Anonymous, Pacific Fruit News, June 5, 1976.




35.  Anonymous, Western Packing News, June 15, 1976.




36.  Anonymous, Pacific Fruit News, June 5, 1976.

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                                                                        130





37.  S. C. Hoyt and L.  E.  Caltagirone,  "The Developing Programs for Integrated




     Control of Pests of Apples in Washington and Peaches in California",




     in C. B. Huffaker, ed.,  Biological Control,  Plenum Publishing Corporation,




     New York, 1971, pp. 412, 413.




38.  Ronald Howthorne,  "Estimated Damage and Crop Loss Caused by Insect/Mite




     Pests", 1972, 1974, California Department of Food and Agriculture,




     Sacramento, California.




39.  California Department of Food and  Agriculture,  California Pesticide Use




     Report, 1974, Sacramento, California.




40.  Anonymous, Cling Peach Almanac, 1975.




41.  Caltagirone, op. cit., p. 419.




42.  Ibid., p. 415.




43.  Anonymous pest management consultant.   This  pest management consultant




     chose to remain anonymous because  he feels that identification would




     result in pressure on growers, from processors  and other sources,  to




     discontinue his. services.

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APPENDICES

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                                                                           131
                                 Table 1.

            QUALITY STANDARDS FOR ORANGES, PEACHES, AND TOMATOES

             AS SPECIFIED BY VARIOUS PUBLIC AND PRIVATE AGENCIES


A.  Oranges   "      -•   •-  '.•;•.:.;."'.      :  . -  .   . • ••

    1.  State of California Quality Standards for Fresh Oranges.

                       Article 5. .Oranges Generally  :         V v  ; .  '

            (Article 5 beading amended by Stats. 1968, Ch. 738)

           46951.  As used in this article, "damage on the segment walls"
        mggnq a water-soaked appearance, evidence of previous water-
        soaking, or the presence of crystals or crystalline deposit, on
        the two surface membranes of each of two or more segments as shown
        on the separation of two or more segments of a. section.  The
        section shall not be less than one inch or more than one and
        one-half inches  in thickness, and shall be obtained from the
        central portion  of the fruit by cutting off a portion of each end.
        Such evidence of freezing injury shall show for the entire length
        but not necessarily the entire area of the surface membranes..

           46952.  Oranges shall meet the requirements which are pre-  -
        scribed by this  article.                             .      .    -
      '   .  (Amended by Stats. 1968, Ch. 738).                            '»

           46953.  Oranges shall be mature.  Oranges, except bloods,
        tangerinesj and mandarins, shall not be considered mature
        unless they comply with one of the following requirements:
            (a)  The juice contains soluble solids which are equal to or
        in excess of eight parts to every part of acid which is contained
        in the juice (the acidity of the juice to be calculated as citric
        acid without water of crystallization), and 90 percent or more of
        the oranges in any lot, by count, before picking have attained, on
        at least one-fourth of the fruit surface, at least a. minlTmnrc
        characteristic orange color, as indicated by Color No. 7.5 Y .6/6,
        "Munsell Color." '       .
            (b)  The juice contains soluble solids which are equal to or
        in excess of 10 parts to every part of acid which, is contained in
        the juice (the acidity of the juice to be calculated as citric
        acid without water of crystallization), and 90 percent or more of
        the oranges in any lot by count before picking have attained, on at
        least one-fourth of the fruit surface, a m-fri-Cmim characteristic
        orange color, as indicated by Color No. 2.5 GY 5.6, "Munsell Color."

           No oranges may be accelerated in color unless the juice contains
        soluble solids equal to, or in excess of, eight parts to every part
        of acid which is contained in the juice (the acidity of the juice
        to be calculated as citric acid without water of crystallization).

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      ,                                                                       132
Table 1 (continued)

            The tolerances which, are allowed by Section 46961 do not apply
         to the provisions of this section when determining whether any .lot
         of oranges complies with the maturity standard.
             (Amended by Stats. 1968, Ch..738)

            46954.  Oranges shall be free from decay.
             (Amended by Stats. 1968, Ch. 738).

           ' ^46955.  Oranges shall be free from serious damage due to
         freezing.  Damage from freezing to any one fruit is serious if
         it causes any of the following conditions-:
             (a)  Damage on the segment valla, as defined in Section 46951.
             (b)  Drying or desiccation in 20 percent or more of the ex-
         posed pulp as shown on a transverse cut through the center.
             (Amended by Stats. 1968, Ch. 738).

            46956.  Oranges shall be free from serious damage which is
         due to drying at the stem or stylar end which results from causes
         other than freezing.  Damage by drying- at the stem or stylar
         end of all' oranges which results from causes other than freezing,
         is not serious unless 20 percent or more of the pulp shows
         staining, drying, or desiccation.
             (Amended by Stats. 1968, Ch. 738).

            46957.  Oranges shall be free from damage which is caused by
         splits, bruises, or punctures.  Damage which is caused by splits,
         bruises, or punctures in oranges is not serious if the injury is  .
         well healed and free from mold or decay.
             (Amended by Stats. 1968, Ch. 738).                           .    .

            46958.  In any season in which freezing damage to oranges which
         are produced In this state has occurred, the extent of damage by
         freezing to such oranges shall be determined as follows:
             (a)  By examination for damage on the segment walls from and
         after the time when the oranges were first exposed to freezing
         temperatures to the date, herein designated as date A, when the
         director, after survey, shall make a determination in writing that
         the drying process has developed to such extent as to furnish
         additional evidence of the extent of actual damage to the fruit.
             (b)  By examination of the exposed pulp on a transverse cut
         through the center, from and after the date, herein designated    .
         as date B, when the director, after survey, shall make a deter-
         mination in writing that the drying process has developed to such
         extent as to permit reasonably accurate determination of the full
         extent of freezing damage by such examination, without regard to
         damage on the segment walls.                                         .
             (c)  Either by examination for damage on the segment walls or
         by examination of the exposed pulp on a transverse cut through
         the center, or by both such examinations, during the period from
         date A to date B.  In no event shall the interval from date A to
         date B exceed three weeks.

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                                                                         133

le 1. (continued)

         46959.  The extent of damage by freezing of oranges which were
      produced outside of this state that are offered for distribution
      and sale in this state shall be determined by the same methods
      *r>A procedures as required for oranges produced in this state
      unless it is not practicable to obtain sufficient accurate infor-
      mation upon which to establish dates A and B as required by this
      article for such, oranges.  In such case the extent of damage by
      freezing in any lot of such oranges shall be determined as follows:
          (a)  By examination of the exposed pulp on a transverse cut
      through the center if examination of a representative sample of
      the oranges in the lot shows that the drying process has developed
      to such an extent as to permit reasonably accurate determination
      of the full extent of freezing damage.
          (b)  In any other case, by damage on the segment walls.

         46960.  The percentage of serious damage to oranges in con-
      tainers, or in bulk, may be established by inspection of a. repre-
      sentative sample which shall consist of not less than 100 fruits.
          (Amended by Stats. 1968, Ch. 738).

         46961.  The following tolerances which are to be applied to the
      standards that are prescribed by this.article are established by
      this section:
          (a)  With the exception of serious damage which is caused by
      freezing, not more than 10 percent, by count, of the oranges in
      any one container or bulk lot may be below the requirements, but
      with the'exception of serious damage by drying at the stem or
      stylar end of oranges which results from causes other than
      freezing. Not to exceed one-half of this tolerance shall be
      allowed for any one cause.
          (b)  In the case of serious damage by freezing injury, not
      more than 15 percent, by count, of the oranges in any one con-
   -   tainer or bulk lot may be below the requirements, but not to
      exceed one-third of this tolerance shall be allowed for oranges
      which show a drying or desiccation in 40 percent or more of the
      exposed pulp, as shown on a transverse cut through the center.
          (c)  The total tolerance for a. combination of defects shall
      not exceed the tolerance permitted for any one cause by more
      than 5 percent, by count.
        ; (Amended by Stats. 1968, Ch. 738).   .
                                 •               • 2 •
 2.  Sunkist Quality Standards for Fresh Oranges.

      (1)  Compliance with Federal and State Laws.

      No fruit will be marketed by Sunkist Growers, Inc. under any brand or
      grade, or at all, unless the same shall in all respects conform to
      the laws of the State of California or the State of Arizona, and, if
      the sale is made in Interstate Commerce, to Federal laws and to the
      laws of the place where the fruit is sold.  The Field Department
      shall insepct all grades of citrus fruits marketed through Sunkist

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                                                                             134

Table 1 (.continued)                                                 .

         Growers, Inc. and shall in every way endeavor Co make uniform the
         enforcement of the regulations and laws concerning the marketing of
         California or Arizona citrus fruits.

                                   Oranges

         (2)  Specifications for "Sunkist."

         Oranges packed for marketing, under the trademark Sunkist shall be
         mature; of one variety; of good eating quality and flavor; of good
        ; juice content; veil grown specimens of normal form, picked from the
         tree; of good color for the variety; of good texture; practically
         free from scale or other insect pests, fungus diseases, splits, or
         defects of any kind that cause fruit to decay.  The following classes'
         of fruit shall be excluded: rough; coarse; more than slightly puffed;
         more than slightly scarred; more than slightly sunburned; misshapen
         fruit; dirty fruit unattractive to the consumer; fruit showing
         effects of frost or which cuts dry for any reason;: immature fruit;
         fruit insipid in flavor; fruit deficient in juice content; and fruit
         green or very pale in color.  Soft fruit or fruit showing marked
         evidence of aging or shriveling shall be excluded.  Fruit of extra
         good texture and color may properly carry more scars than fruit
         possessing only the mt-n-Tmim of color and texture required under these
         "Sunkist" specifications.  Oranges packed for marketing under the
         trademark Sunkist shall not vary more than 5 percent below foregoing
         specifications except that decay within this tolerance shall not
         exceed 1 percent."

         C3)  Specifications for "Excel."                                '*

         Oranges packed for marketing under brands listed in the Sunkist
         Growers, Inc. brand list and/or manifested as "Excel" shall meet
         specifications for "Sunkist," except that as to interior defects, the
         minimum requirements of the State Agricultural Code shall apply.  In
         the case of damage from frost, the determination shall be made by
         examination of the segment walls until that time when the interior
         drying process has developed sufficiently so as to furnish sufficient
         evidence of the degree of damage by this means.  The tolerance for
         frost damage as evidenced in damage to the segment walls shall be
         15 percent of the fruits, by count.  When frost damage can be
         determined by drying, the amount of damage will be determined
         volumetrically by three equidistant cuts of the fruit.  The tolerance
         for frost damage as evidenced by drying shall be 15 percent,  by count,
         of the fruits showing a drying or dessication in 20 percent or more
         of the volume of the individual fruits, except that only 5 percent of
         fruits, by count, may show a.drying or dessication in 40 percent or
         more of the volume of the individual fruits.

         (4)  Specifications for "Red Ball."

         Oranges packed for marketing under the trademark Red Ball shall be
         mature; of one variety; of good eating quality and flavor; of good

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                                                                               135

Table 1 (continued)

         juice content; well grown specimens of fair form, picked from the tree;
         of fair color for the variety; of fair texture; practically free
         from insect pests (other than scale), fungus diseases, splits, or
         defects of any kind that cause fruit to decay.  The following classes
         of fruit shall be excluded: very rough; very coarse; badly sunburned;
         badly scarred; badly puffed; very scaly or very dirty fruit; fruit
        • showing effects of frost or which cuts dry for any. reason; immature
         fruit; fruit insipid' in flavor; fruit deficient in juice content;
         and fruit very green in color.  Soft fruit or fruit showing marked
         evidence of aging or shriveling shall be excluded.  Fruit of extra"
         good texture and color may properly carry more scars than fruit ••:
         possessing only the m-t-n •*•"»"» of texture and color required under
         these "Red Ball" specifications.  Oranges packed for marketing under .    .
         the trademark Red Ball shall not vary more than 5 percent below
         foregoing specifications with the following exceptions:  Decay within
         this tolerance shall not exceed 1 percent; as to fruit showing
         effects of frost or which cuts dry for any reason, the total tolerance
         shall be 10 percent, but not more than half of this tolerance shall
         be allowed for serious drying or freezing damage as defined in the
         State Agricultural Code.

         (5)  Maturity of Valencia Oranges.                     ...

         In addition to the 8 to 1 maturity test, Valencia oranges to be
         eligible for marketing under the trademarks Sunkist and Red Ball
         must have a Brix reading of not less than 9.0.

         (6)  Storage L^™^ tat ions for Oranges.                            •.

         Oranges, subject to all other regulations as to inspection, etc.,
         will not be marketed under the trademarks Sunkist or Excel, except
         as herein provided, if they have been off the trees more than 28
         days, except that, after the following dates - January 1 on Central-
         Northern California and Arizona navels; March -1 on Southern California
         navels and miscellaneous, and Arizona valencias and miscellaneous;
       •  June 15 on Central-Northern California valencias; and August 1 on
         Southern California valencias - the storage limitation shall be 21
         days.  Associations, at the conclusion of the above dates, may only
         ship after those dates by certification by the Field Department at
         time of shipping, such certification to consist of grade, pack, con-
         dition, .in jury. .and flavor certification, i.e., inspection with "B"
         grade and pack, "2" condition and injury, and satisfactory flavor
         classifications as miniTmTm requirements for certification.
         Each shipper must furnish the Field Department accurate and positive
         information of the date fruit has been picked; and further, all con-
         tainers, must be marked with a code or date indicating the date
         packed.  Failure to comply with these requirements will disqualify
         all fruit concerned for marketing under the Sunkist or Excel trade-
         marks for association account.  Should association ship fruit beyond

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                                                                              136

Table 1 (continued)

         the storage limitation without Field Department certification,
         association ^"1,1 be assessed $1.00 per carton as liquidated damages,
         in addition to any other penalties provided for or allowed in these
         rules and regulations or in the bylaws of Sunklst Growers, Inc.

         The Sales Division and Field Department shall have authority to make
         equitable adjustments on fruit picked during the first 30 days of any
         varietal season in any area when during that period domestic prorate
         allotments have not been sufficient to permit shipment of sizes not
      .  . wanted in export markets.     .   • .    .   • .      • -..-••    .  .-. '•'.  ,- ''  •

B.  Peaches       '.    .,':'.':.'.-.-•   ,••'•'   '_..•'..:••'  ',  '"'•.'•.:"'.'.'' '''••"   - :  ' . '••'"' ' '-'/.

    1.  State of California Quality Standards for Fresh Peaches

            48731.  Fresh peaches shall be mature, but not overripe, and
         .free from any of the following defects:
             (a)  Insect injury which has penetrated or damaged the flesh.
             (b)  Split pits which are open at the stem end.
             Cc)  Mold, brown rot, and decay.
             Cd)  Serious damage, due to cuts or skin breaks,, growth cracks,
         bruises, scab, rust, blight, disease, hail, or other causes.

            Damage to any one peach is not serious unless it causes a waste
       .  of 10 percent, by weight, of the individual peach.

            43732.  Peaches of the freestone variety shall not be con-
         sidered mature unless, at the time of picking, the flesh breaks  .
         free from the pit.  In addition, the flesh of peaches of the     '
         Elberta variety shall be a yellowish color.

            48733.  Not more than 10 percent, by count, of the peaches in
         any one container or bulk lot may be below the requirements which.
         are prescribed by this article, but not to exceed one-half of this
         .tolerance shall be allowed for any one cause.  Individual containers
         In any lot may, however, contain not more than 1 1/2 times the
         tolerances specified if the percentage of defects of the entire lot
         averages within the tolerances.    '      •

     2.  Federal Food and Drug Administration Defect Action Levels  .
         For Processing Peaches.3                  .

         Average of 5% wormy or moldy fruit by count or 42 if a whole larva
         •or equivalent is found in 2QZ of the cans.

                                                                            4
     3.  Processor Marketing Order Quality Standards for Processing Peaches.

            1.  "Cling Peaches" means peaches, the pits or stones of which
         closely adhere to the flesh when the fruit is ripe.

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Table 1 (continued)  '
                                                                        .  13 7


          2. a.  "N'^ber l Cling Paach" means any cling peach suitable for
       canning or freezing, not less than two and three-eighths inches
       (2-3/8" or 60.32 .millimeters) in diameter, ring measure, and of good
       shape, color, texture, and quality, in good condition for canning  or
       freezing, and of a maturity and flesh color suitable to yield a
       canned or frozen product of choice grade, as such grade is generally
       known in the canning or freezing industries; provided. that if the
       Director, pursuant to the provisions of Subsection 3, Section D,
       Article IV, of this Marketing Order, establishes minimum flesh
       color requirements as a measure of peach maturity, each Number 1
       Cling Peach shall meet those requirements.  The m-fnJTnnm diameter
       requirements established herein shall in no event be construed
       as limiting or restricting the delivery of Number 1 Cling Peaches
       of a diameter larger than such m-Trt-fTmnn diameter requirements.

                 (1)  Any cling peach shall not be classed as a Number 1
       Cling Peach if it has worms or worm damage, a gum pocket, rot,
       brown rot, black flesh, green core, if it is overripe, if it is a
       windfall,  if it is a visible split-pit, or-if it has more than a
       reasonable amount of mildew, scab, red streaks in the flesh, bruises,
       cuts, tears or punctures, parasite or insect damage, hail damage,
       San Jose scale, sunburn, shothole fungus, or other imperfections.
       Cling peaches having invisible split-pits shall be classified as
       specified hereafter in this Section.

                 (2)  A cling peach shall be considered to have more than
       a reasonable amount of the above defects if:

                      (a)  It has mildew infection of more than two spots
       with one of the spots being larger than one-fourth inch (1/4") in . .
       diameter, or one spot larger in diameter than a penny, or any spot1
       containing a crack or fissure more than skin deep, or any spot, that
       is warted.

                      (b)  It has scab resulting from limb rub or other
       causes longer or wider than the diameter of a penny or if the scab
       is cracked.       '                                     •

                      (c)  It has red streaks in the flesh to such extent
       that the peach is not suitable to yield a canned or frozen product
     .  of choice grade, as such grade is generally known in the canning
       or freezing industries..            ".'.".

                      (d)  It has bruises that result in discoloration .of
       the peach so that it will not yield a product of choice grade.
       Bruises which accidentally occur at the inspection station shall
       •be exempt and shall not be considered as defects.

                      (e)  It has cuts, tears or punctures, except those
       that accidentally occur at the inspection station, sufficiently
       severe that the peach is not suitable to yield a canned or frozen
       product of choice grade, as such grade is generally known in the
       canning or freezing industries.

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Table 1 (continued)
     •                                                                      133

                      (f)  It has parasite or insect damage or hail damage
       that has penetrated the skin.

          .            (g)  It has San Jose scale that has matured and"
       hardened.               '          .

                      (h)  It has sunburn, sfaothole fungus, or other  •
       imperfections that do not peel in the normal lye peeling process,
      . or that result In the peach not being suitable to yield a canned
       or frozen product of choice grade, as such grade Is generally known
       in the cam-Ing or freezing industries.                        .     .

       '         (3)  A cling peach shall be considered overripe if it.
       shows deterioration as a result of overmaturity as Indicated by
       wilting, softness, browning, or tissue breakdown.   .       .  *

                 (4)  A cling peach shall be considered to be a visible
       split-pit if it has an opening at the stem end.  A cling peach
       shall be considered as having an invisible split-pit when the peach,
       including the pit, can be pulled apart by the use of hands.  Fifty
       percent C50%) of the cling peaches having invisible split-pits in
       any lot shall not be classed as Number 1 Cling Peaches.

                 (5)  Bruises, cuts, tears or punctures resulting from
       mechanical sorting devices, even though such mechanical sorting
       devices may be operated in conjunction with an inspection station,
       shall not be considered accidental and do not qualify for exception.

           The entire shipment of cling peaches will be rejected for
       processing if the net weight of off-grade cling peaches due to    *
       brown rot exceeds five percent of the total net weight of the
     •  shipment or the net weight of off-grade cling peaches due to worms
       or worm damage, either or both, exceeds four percent of the total
       net weight of the shipment.

   4.  Processor-Grower Contractual Quality Standards.^'      _      '

         In addition to the marketing order quality standards, a California
         Canners.League Contract for peaches reads;

       • Seller shall deliver at point of delivery promptly after harvesting
       all peaches covered hereby of good shape, quality, and suitable for
       canning as herein defined, at. the state of maturity Buyer may re-
       quire, free from worms., worm damage, gum pockets, rot, brown rot,
       black flesh, green core, overripe peaches, windfalls,  split pits,
       mildew, scab, sunburn, red streaks in the flesh, bruises, parasite
       or insect damage, hail damage, San Jose scale, shothole fungus, or
       other imperfections.  All peaches shall also be of a color and
       texture suitable for canning into Choice grade as such grade is
       generally understood in the canning trade.

       Buyer may . . . reject any delivery or partial delivery containing
       in excess of 10% culls or in excess of 2% Rot and or Brown Rot, or

-------
                                                                             139
Table 1 (continued)

        in excess of 12 wormy or worm damaged peaches.  Culls shall consist
        of'any peaches not conforming to grade, size and quality specifica-
        tions set forth in paragraph 6 hereof.  (Paragraph directly above.)
    Spinach             :       .                '    •

    1.  State of California Quality Standards  for Fresh Spinach.

        So specific quality standards for spinach.      '            .
        " *   ";."'"     '(•••"   -   '       *     '     .•     '.   -'    •           ,
    2.  Federal Food  and Drug  Administration Defect Action Level  for Spinach
        For Processing.3.'   /.  •  ':.  •.-.-  ' •- .. .-•  '     '.-'• ;.... ---:.   -•  •••  ':.

        Average of 50 aphids,  thrips and/or mites per 100 grams.

        Two spinach worms  (caterpillars) or fragments of 3 mm.  in length
        having an  aggregate length of 12 mm. per 24 pounds of  spinach.

        Average of 8  leaf miners  of any size per 100  grams; or an
        average of 4  leaf miners  3 mm. in length per  100 grams.

        Average of 10% leaves  by  count or weight show mildew or other
        type of decomposition  1/2 in. in diameter.

    3.  Processor-Grower Contractual Quality Standards for Spinach.

        A Stokely-Van Camp, Inc.  contract for  spinach reads:

        Seller shall  deliver,  at  point of delivery, promptly after har-
        vesting, all  vegetables suitable for freezing as herein defined
        covered by this contract, in the condition Buyer may require,
        in order   to  meet the  tolerances permitted by and requirements
        of the United States Food and Drug Administration, and In all
        respects conforming to any applicable  Pure Food and Drug  require-
        ments of the  state or  political subdivision thereof in which
        this contract is to be performed and the crop is to be processed.

        Buyer may  reject any vegetables delivered or  tendered  for delivery
        hereunder  not complying with this contract and may charge the
        same and all  costs, freight and expenses incurred in connection
        with the receipt and return thereof back to Seller, giving notice
        in writing of any such rejection to Seller, or his agent, provided,
        however, that the rejection of any delivery or partial delivery or
        any grading down or regrading of any delivery or partial  delivery
        at point of delivery specified herein  by Buyer, shall  not relieve
        the Seller from his obligation to deliver the balance  of  the vegeta-
        bles purchased hereunder,  and to this extent this contract is
        severable.    ..             •

        Irrespective  of any provisions of this contract relating  to  the
        point of delivery or passage of title,  Buyer  shall have the  right

-------
                                                                            140
Table 1 (continued)
        to grade the vegetables delivered hereunder at its plant and the
        right to rejection, is reserved to the Buyer until after such
        grading.                         .   .                  .

        Spinach for freezing shall consist of fresh spinach of good typical
        green color, free from decay, dirt, minor damage, worms and insects,
        major damage to leaves or stems, weeds, roots and root stubs, pink
        stems, excessive stems and stem length, seed stalks, crown, free
        moisture, and free from damage caused by frost, hail, insects,
        smog, m°chaTi^ -gal or other means*
        Any lot of spinach', infested with insects including worms or
        aphids or seriously damaged by any of the above listed defects
        beyond the level normally accepted in the frozen spinach Industry,
        may be rejected by Buyer.
D.  Tomatoes                 .             '.         ...  •

    1.  California State Quality Standards for Fresh Tomatoes.

           50601.  Tomatoes  shall be mature, but not overripe, and
        shall be free from any of the following defects:
           (a) . Pinworm damage which has penetrated beyond the tissue
        making up the base of the core of the tomato, other insect injury
        which has penetrated or damaged the flesh, and mold, decay, and
        wet or soft rots.            .    '       •
           (b)  Serious damage due to freezing, blossom end rot, mosaic,
        alkali spot, sunscald, bruises, catfaces, growth cracks, or
        other causes.  Damage to any one tomato is not serious unless     l
        it causes a waste of 10 percent, by weight, of the individual
        tomato.

           50602.  Not more  than 10 percent, by weight, of the tomatoes
        in any one container or bulk lot may be below the requirements
        which are prescribed by this article, but not to exceed one-half
        of this tolerance shall be allowed for any one cause.

    2.  State of California  Quality Standards for Processing Tomatoes.

           A tomato shall not be regarded as suitable for canning purposes
        if, as established by inspection of a representative sample, it
        .has any of the following defects:     •                        •  .
           (a)  Any worm or  worm damage is present which has penetrated
        the flesh'of the tomato.   '                      •    .
           (b)  In excess of 10 percent of the weight of the tomato
        cannot be used for canning purposes due to the presence of mold.
           (c)  In excess of 20 percent of the weight of the tomato
        cannot be used for canning purposes due to the presence of rot.
           (d)  In excess of 25 percent of the weight of the tomato
        cannot be used for canning purposes due to the presence of
        sunburn, sunscald, growth cracks, insect bites, pest infec-
        tions, hail damage,  or other specifications which are not
        specified in this article. .                      .    •

-------
                                                                             14.1
Table 1  (continued)
     3.
             (e)  The tomato is sufficiently overripe to make it useless
         for eaqn-LTis purposes.                                            •
             (f)  The tomato is shriveled, frozen, or frosted.
             (g)  The external surface of the tomato is green, with no
         visible shade of red color.

            Any load, of tomatoes which  is offered for delivery to a  canner
         shall be rejected and turned back to the grower if in excess of
         2 percent of the delivery, by  weight, does not comply with  sub-
         division (a) of (the above paragraph) or if in excess of 8  percent
         of  the delivery, by weight, does not comply with subdivision (b)
         of  (the above paragraph).      .   :  .         .                • .  •" ,

            Any load of tomatoes which  is offered for delivery to a  canner
         shall be rejected and turned back to the grower if in excess of
         15  percent of the delivery, by weight, does not comply with sub-
         divisions (a) to (g) , inclusive  (of the paragraph.above.)

            Any load of tomatoes which  is offered for delivery to a
         canner shall be rejected and turned back to the grower if more
         than 2 percent of the delivery by weight is green as defined
         (above).                         •

            Any load of tomatoes which  is offered for delivery to a  canner
         shall be rejected and turned back to the grower if the load does
         not meet the m-fn-tmim requirements for color based on comminuted ..
         raw product sampling.                    . '               ,
Federal Food and Dru|
Processing Tomatoes.-
Administration Defect Action Levels For
         Tomato Catsup

         Tomato Juice  ,

         Tomato Paste or Puree

         Tomato Sauce (undiluted)  '
         Canned Tomatoes, with or
         without added tomato juice

         Canned Tomatoes packed  in'
         Tomato Puree

         Pizza Sauce (based on 62
         total Tomato solids after
         pulping)

         Tomato Soup and other
         Tomato products

         Tomatoes  (canned)
                                Microscopic mold count average of 30Z

                                Microscopic mold count average of 202.

                                Microscopic mold count average of 402.

                                Microscopic mold count average of 402.
                                Microscopic mold count average of
                                the drained juice is 122.
                                Microscopic mold count average of
                                the drained packing media is 252.

                                Microscopic mold count average of 302.



                                Microscopic mold count average of 402.


                                10 Drosophila fly eggs per 500 grains;
                                or 5 Drosophila fly eggs and 1 larva
                                per 500 grams; or 2 larvae per 500 grams.

-------
                                                                         14.2
                              • *                     .      .     .  •
le 1 (continued)

     Tomato Juice          .          10 Drosophila fly eggs per 100 grams;
                     '                or 5 Drosophila fly  eggs and 1 larva
                        .             per 100 grams; or 2  larvae per 100  grams,
                        •A
     Tomato Puree       '             20 Drosophila fly eggs per 100 grains;
                                     or 10 Drosophila fly eggs and 1 larva
                                     per 100 grams; or 2  larvae per 100  grams.
     Tomato Paste, Pizza _   '         30 Drosophila fly eggs per 100 grams;
     and other Sauces   ..'....   .     or 15 Drosophila fly eggs and 1 larva
                 .  .                  per 100 grams; or 2  larvae per 100  grams.

         ..'."''    '  • .   .''.  •  '•-••'      "'•'.'•'"'•      8        ••:.••..,.''".-'
 4.  Processor-Grower Contractual Quality Standards

     A. Cauners League of California Tomato Contract reads:

     Ho tomato shall be deemed suitable for canning if:
        (a)  Any worm or worm damage is present which has penetrated
     the flesh of the tomato.                               '
        (b)  In excess of ten percent of the weight of the tomato
     cannot be used for canning purposes due to presence  of mold.
        Cc)  .In excess of twenty percent of the weight of the
     tomato cannot be used for canning purposes, due to the presence
     of rot.                               .                 .
        (d)  In excess of twenty-five percent of the weight of the tomato
     cannot be used for canning purposes due to the presence of sunburn,
     sunscale, growing cracks, insect'bites, pest infections, hail damage,
     green or yellow color at the stem end, or other imperfections not
     specified in (this.paragraph) of the contract.
        (e)  The tomato is sufficiently overripe to make  it useless    *
     for canning purposes.                .   .
        (f)  The tomato is shriveled, frozen or frosted.      '
        (g)  It is not well colored by which is meant that the color
     .fails to meet minimum standard . . . as defined in Title III,
     Section 1331 of the California Administrative Code.       .
        (h)  It is green with no visible shade of red color on the
     external surface.

     Any load of tomatoes offered for delivery hereunder  may be rejected
     at Buyerfs option and turned back to seller if:      .

        (a)  Over one-half (1/2) of one (1) percent of the tomatoes in
     the delivery by weight fails to comply with subsection (a) of (the)
     paragraph above.
        (b)  Over one (1)  percent of the load by weight fails to
     comply with subsection (b) in (the) paragraph above.
        (c)  Over two (2)  percent of the load by weight fails to comply
     with subsection (h) of -(the)  paragraph above.
        (d)  Over fifteen (15) percent of the delivery by weight fails
     to comply with subsections (a) to (h) of (the) paragraph above.
        (e)  Over ten (10)  percent of the tomatoes in the delivery by
     weight are cracked or broken.                 \
        (f)  Such load contains mud-smeared tomacoes, loose dirt, or
     other foreign matter.

-------
                                                                       .   .  143
Table 1 (continued)                             .

       Other processor contracts for tomatoes contain similar provisions.
       (See Appendix A, below).
      California state standards for fresh produce are specified in
California State Food and Agriculture Code 42501-50833.

      jJSulesand Regulations Governing Fruit Packed For Marketing by
Sunkist Growers, Inc. under its Trademarks Sunkist, Excel, SK, and Red Ball
and Under Association Non-Advertised Brands,"  Sunkist Growers, Inc.,
Nov. 1, 1967.      ..  :.\ ..-;.-•.''"'•..'.:•--.•.;.•     •  .     '.-.':'.••"'''*"''.
     3                                '
      "Current Levels for Natural or Unavoidable Defects In Food For Human
Use that Presents No Health Hazard"  HFF-342 HEW-PHS-FDA, Washington, D. C.,
1976.  .               •  .
     4
     . Processors Marketing Order for Cling Peaches as Amended 1973-1975,
California Department of Food and Agriculture, Sacramento, California.

      California Canners League Contract for Peaches, See Appendix A. .

      Stokely-Van Camp, Inc. Contract for Spinach, See Appendix A.

      California State Food and Agriculture Code, 40844-40845.   ' / '
     8
      California Canners League Contract for Tomato, See Appendix  A.

-------
                                TABLE 2
           144
          POUNDS OF PESTICIDES USED IN CALIFORNIA IN 1974
                       Used On
Percent Used
ecialty Crops*
12417
665456
135145
.674032
1940318
200744
11701
316826
123018
276751
51278
633
271089
353539
3 67409
257740
162136
216631
664253

143500
312522
For all Uses
30750
1007768
601000
728643
2918144
353584
59883
471417
133431
334439
525441
12342
554729
.84388 -
781556
485085
404290
790294
1017115
\
182765
329.015
On Spec
40
66
22
92
66
•-'.-- '.•'••••57
20
67
92
83
10
5
49
63
47
53
40
27
... . "65

79
95
Pesticide

Aldrin

Carbaryl

Chlordane

DBCP

D-D .Mixture

Diazinon

Die-ldrin

Dimethoate

Ethion

Guthion-R

Kalthane

Lindane

Ma lathion

Meta-Systox

Methomyl

Methyl-Parathion

Naled

Omite-R

Parathion

Phosdrin-R

Phosphamidon

*  Almonds,  Apple,  Apricot, Artichoke, Avocado, Beets, Broccoli, Brussel
   Sprouts,  Cabbage,  Carrot,  Cauliflower, Celery, Cherries, Citrus, Cucumber,
   Eggplant, Figs,  Grapes, Grapefruit, Lettuce, Melons, Nectarines, Olives,
   Peach,  Pear,  Peppers,  Plum, ,Potato, Prune, Pumpkins, Squash, Strawberries,
   Tomato, Turnip and Walnut.

 1  California Pesticide Use Report,  1974, California Department of Food
   and  Agriculture, Sacramento,  1975"!     •             .

-------
                                                    Table 3
        The arthropod pests of California agricultural crops, each of which in 1970 caused losses of a million
        or more dollars, and a summary of their insecticide resistance, their status as resurgent or secondary
        outbreak pests, and the secondary pest outbreaks associated with their chemical control.
        (From Luckjetjil., 1977  BioScience (in press)).!
. .
Types of insecticides to which
species exhibit general or
specific resistance^ •
•


'
Pest
species

Citrus red mite
Panonychus citri
(McGregor)
European red mite
Panonychus ulmi
(Koch)
Pacific spider mite
Tetranychus pacificus
McGregor
Two-spotted spider mite
TetranychuB urticae
(A
0)
*rl •
4J
W ffl <
14 0)
O PS!
I H
W 0
. •
X

. •
0

0



X
8 .
a 3
rO 01 O
p. W -H
W W » M H *J
oi o w H 01 t> 4-1
ObOMHdijJ&JH.
NMn? 9*H a) b nj
OOOwiJWWH

X X


XX

X



X 0



Species
resistant in
California


X


X

X

'•

X

'

. Associated
resurgence or secondary
pest outbreaks.


X


X

X



X
(Koch)

Citrus thrlps
             citri
0  0  0

-------
Table 3 (Cont.)
Consperse stinkbug
EuBchlstua conspersufl
Uhler

Lygus bug
Lygus hesperus
Knight

Pear psylla
Psylla pyricola
Foerster

Cabbage aphid
Brevicoryne braBsicae
(Linnaeus)

Citrus aphid
Aphis citricola
van der Goot

Green peach aphid
Myzus persicae
(Sulzer)

California red scale
Aonidiella aurantii
(Maskell)

San Jose scale
Aspidiotus perniciosus
Corns toe k
XX
                               T  X  0  X
                                             0
                               0  X  X
                                             0
Tomato fruitworm-cotton
bollworm-corn earworm
Heliothis zea
(Boddie)

Beet army worm
Sppdoptera exigua
(Hubner)
 Cabbage
 Trichop
 (liubner)
             ni
      XX
X-  X X

-------
Table 3 (cont.)
Artichoke plum moth
Platyptilla carduidactyla           0
(Riley)

Potato tuberworm              •''.'.
Phthorimaea operculella       XXX
(Zeller)

Pink bollworm
Pectinophora gp_B_ayp_lella      X     0
(Sounders)

Peach twig borer
Anarsla lineatella          ">-°
Zeller

Omnivorus leafroller
Platynota Btulfcana          •
Walslngham
Codling moth
Laspeyresla pomonella
(Llnneaus)

Oriental fruit moth
Graphplitha molesta
(BuscK)

Cotton leaf perforator
Bucculatrlx thurberlella
(Busck.)
Alfalfa weevils
llypera spp.                   00
                         Ord
                      XXX
                                                                 0
                                                                 0
                                                                 0
aes of Insecticide resistance, target pestf' resurgence and secondary pest outbreaks cited here have
 reported In the literature or via personal ummunlcatlon by research specialists,
either
                    to Insecticide

-------
                                                                            143
                                    Table 4
           Returns for Fresh and Processed ..Oranges,, in .Calif ornia
                   ' *•"" and* Florida, "1940-41 to "1973-74  V  *r - -'
Tear
1940-41
1945-46
1950-51
1955-56
1960-61
1965-66
1966-67
1967-68
1968-69
9-70
1970-71
1971-72
1972-73
1973-74
Calif
Fresh
$/box1
.98
2.82
2.43
2.96
5.24
1.39
1.48
2.95
1.49
1.41
1.77
1.50
2.14
1.92
. Navel
Processed
$/hox1
.20
-12
;.Mp7;>. J
.•*'''"* . • .-,
.48
.04
.04
.06
-.11
-.12
-.17
-.18
-.30
-.43
Calif.
Fresh
1.55
3.52
2.14
3.05
3.71
1.61
1.31
2.56
1.10
1.55
1.55
1.28
1.83
1.76
Valencia
Processed
$/box1
.44
1.76
;.;>.4i.'.;' -.-.;
1.04
1.82
.61
.31 .
.51
.06
.21
.14
as
.18
.00
Florida
Fresh
$/box1





.88
.30
1.30
.99
- .73
.91
1.25
.93
1.14
oranges
Processed




-
.80
.48
.98
.83
.56
.71
1.01 *
.77
.76
Source:  1940-1960 — Walter Seuther,  ed., The  Citrus  Industry, University of  California,
                      1967,. p.  70.                    .        '
         1965-1973 - USDA Crop Reporting Board - Citrus Fruits by States,

                     Agricultural Prices; Florida Agricultural Statistiscs

     1940-1960 a box - 75 Ibs. .

 For 1965-1974 a box - 50 Ibs.

-------
                                                                          149
                                • Table 5'    •''•-.
Production Levels and Prices of California Oranges from 1949-50 to 1973-74

                California Navels                     -,,^	.   •
Tear Prod.' Fresi
	 ~~~~ •o.-i.cuu.i.rta
i Proc. Price ' Value PT-O^ . '» 	 v ' ,
49-50 14909* 13003* 1906* 2^25
50-51 14200 13147 1053. 2.63
51-52 12121. 10338 ,1783 2.75
52053 16385 14785 1600 0..99
53-54 14080 11945
54-55 14887
55-56 14693
56-57 15000
57-58 8860
'8-59 16610
'9-^^0240
0-61 24600
1-62 7360
2-63 12270
3-64 14950
V-65 15200
'-66 18200
<-67 16900
— £Q n- __ '
-os 9100
-69 18525
-70 21144
__ ^ ^ . — „,.
~'l .17865
-7 7 ^^— - -
c
-73^
'•* J
-74 1
BOO
«% 4*
00
12816
13070
13280
8485
14530
22530
19130
6660
90000
12636
13880
14090
14540
5530
14190
15949
14690
16600
12500
2135
2071
1623
1720
375
• 2080
7710
5470
700
3270
2314
1320
4110
2360
3570
4335
5195
3175
5700
6200
* «»t!UU 17AO° 4500
In thousands of tons #
rce: ci *.^.._ .-_ ..
.2.49
2.52
3.04
2.96
4.82
3.08
3.78
4.10
6.03
4.39
3.84
3.70
2.90
3.24
. 4.33
3.12
2.74
3.65-
3.n
3.52
	 	 **caa rroc. Price Valus
33545^25825" 14555* 11270* 1.89 488ol
37346 30179. 17928 12251 1.79 54020
33333 25394 16895 8499 1.83 . 46471
• 32606 28970 I0fi7n o-»nn "','•• •
*/u 190/0 9300 .1.68 48670
35059717585 13028 4557 " 3.01 ' " «o«'
37515 23730
44667
44400
42705
51159
114290
100890
44381
53865
57408
56240
52780
54756
39403
57798
7935
65207
69353
65824
22880
20200
13858
22890
17040
15840
12890
16200
16300
16100
- 17500
19600
9950
24900
17700
20650
21100
23400
15000
14330
12100
10978
14460
10980
10880
8630
9380
9800
11130
10950
12380
3730 ' 2.31
8550
7100
2880
8430
6060
4960
4240
6820
6500
4970 :
6550
7220
6110 3840
12900 12000
10400 7300
11250
9400
10820 10280
11600 11800
4.03 88257 18800 12100
in thousands of dollars
6700
2.70
2.27
4.64
2.74
3.81"
3.30
3.65
3.67
4.43
2.56
3.25
2.27
4.44
2.03
2.73
2.92
2.55
2.83
3.65
*t**J^J.
54816
» »^» * w
61776
45854
64301
62719
64922
52272
. 46976
59454
72209
41216
56875
44492
44178
50547
48321
60298
53805
66222
68620
  c                   • —* wuuusanas ot dollars
    crus.Fruits, Statistical Reportin* Ser^,a 'trcm  ,«*«..,*

-------
                                                                   150 '

                               Table 6   -

      Summary of Interviews with Sine Citrus Growers         .        .


   Location of ranch :   Central California. ..... ....6
                      •  California/Arizona' Desert... 3

2. Acreage: Range = 10—3500. acres,  Average = 905 acres

3. Crops grown:  Navel  Orange,.... 5   (Most growers raise more than one
                 Valencia Orange. .7    citrus crop)
                 Grapefruit ....... 2                   .   .
                 Lemon ...*.. ....... 3
-  '   .'     -.  ...  Tangerine ..... '...2   • .. •   ••.•.;.     '  "  . ••/    •'

4. What are the major pests:  Thrips. ....... ...8     .      :
                               Bed Scale ........ 5
        .'.'•.-   '.-'-.   '   ...   .  Mites ............ 5     .           :
     .                    ..    " 'Worms........ -....3      '         •
                     •••'.'. Citricola  scale.. 2          .     '
  '                             Leaf Roller ...... 1                    . ..

5. Which pests are  considered wholly or partielly cosmetic?

         Thrips ...... ....8
         Mi tea ........... 4         .                      •.'•'•
         Red scale ....... 3  (partially in all cases)
         Citricola  scale. 1               -
         Soft brown scalel
         Worms .......... .1                                   •••.'•

6, What proportion  of 'pest  control cost is necessary to meet co'smetic
   standards? .         .            .             .

         0-50% ..... 0
         50-75%..... 4 Average » 71%                       :
         75-100%.. .5                      .   •

7. Do D.C. pest  control recommendations take integrated control into
   account?               ....

         •Yes.. 2 . .  ••  .  -    -• ' - '   ',. •'•    '•:.'.'••'".      '  . ,
     .  . .' No. ..6       ;..  . •• ;• •-.  ...  .,' ... ;"  ...  -\ •:'  •   •' • '   .-•   '  ••  .  .

8. Does your buyer  adjust quality standards according to prevailing
   market conditions?       ...    •

         Yes . . 8
         No ... 0

9. How is the crop  marketed?           •       .

         Cooperative ..... . ...... .4
         Packinghouse Contract.. 3
         Independent ............ 1

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                               Table 7       '
            CITRUS 'PEST   HIERARCHY IN CENTRAL CALIFORNIA-'

      r Conventional Control   ,     '        '     •       .
            ™^^••W    .                - 
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CONVENTIONAL AND INTEGRATED PEST MANAGEMENT FOR CITRUS PESTS  IN CENTRAL CALIFORNIA^

Pest Species  Timing of Treatment       Pesticides               Natural Enemies

              Conventional  Integrated  Conventional   Integrated Conventional  Integrated
Citrus thrlps  May-post petal Post petal guthlon*
Citrus red
ml te
Red scale
Brown soft
scale
Cl trlcola
scale
Katydid

Fruit tree
leaf roller
and cutworms
               fall
Spring
Spring
Yellow scale   Spring
Spring
Summer
Fall

Summer
Spring

Spring
Leafhoppers    Fall

Citrus aphlds  Spring
               fal I
Winter
Summer

Spring

Summer
Summer
Fal I
Winter
Spring

Spring



Fall

Spring
            Dlmethoate
            Delnav
            Phosphamldon
              Ryanla*
              parathlon(OC)
                                                                Ineffective
Kelthane      NR.oll
Oml te
Chlorobenzllate
                       •'•effective some
                        years
parathlon
malathlon
parathlon 4
malathlon
NR oM

same as red
scale
carbaryl -f NR oil
NR ol I
parathlon(TC)  	
                                        ndne
            ma lath Ion     none
            (most disruptive
             chemical for citrus)
parathlon
NR ol I
parathIon

guthlon
parathlon
Dfbrom
carbary I  •»•     -w-«
NR ol I
parathlon (OC)
NR 445 olI

parathlon (OC) '--—

Bad I tus thurlnglensls
parathlon (OC)
carbaryl
                          hydrated  lime hydrated lime  -- —

                          rotenone      rotenone       '--....
                                        rotonone 4 olI
partially effective



effective


effectlve



Ineffective
Ineffective

Ineffective



Ineffective

effective

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                                                                                          153
           ;        ;    TABLE  .9-    .-••••

.Peat  Control  Costs  in  California  Citrus

Conventional  vs.   Integrated  Pest  Management—
                                  Cut per Acre (Tniar* Canal?)
ALTKHNATm: USE OF CHEMICALS
                    . Traditional Prst and Disease Control
Major Pert Problem
                                                                   CatptrAo*
< Hint* ihri(ni
Red and yellow wale. •
Ctrus ml mite

.-..."• Petal fall— organophosptiale . •• :
'••• . Summer— organophosphate or
botanical* for thrips
•'••. 29 •;';
9
      Glrirala sralr
Gilworm»
Orancedos
Brawn *nft yralc
!.rafliap|M!T*
Brown rnl ami Scploria npnl
                              Fall— miliridc for miles

                              Kail whiJcwnsh— fungicide
                                                                    •  26

                                                                       19
         TOTAL
                                                                     }101
                           Intre^ratesi Pest and DL*ra5e Control
      M«K>* Pt*t Problem
                                         Solulioo
                                                            CcxtpcrAen*
      Ctriroln wnlr>"
      Leafrollrr

      Cutworm*
      Yellow and red scales
      Brown soft «rali;
      Glrtr» mi miles
Lra/lio|iprr»

Turin* (latter season)

Brawn rot and .Vptoria spot
                        HipJirr iliresliold of economic damage
                        Uln/de preliloom orptnophosphate         .   $ 18
                        On thrips and mites—a number
                        .  of prcdaeeotts insects plus diseases

                        Parasite—Compcrella bifascaia             none
                        Parasite—Aphjctu latenlus                 none
                              Optional, drpnndini; on monitored
                                population
                              Petal to postbloom — botanicals
                                (two applications at J9.00)               $  9
                              Fall whitewash — funejcide                 9 18
         TOTAL
                                                                       4S
      PrM and disease cost as percentage of total input costs                  VL2%
      Difference between traditional aad integrated programs              $S6 per acre

      Savings as * reduction of net loss         -               .  '     '    38J7»
      ^ ^^*^^^        •                            *
      * TirtJ aTrmcn* Itv 5-rrur pvrierf. J9NS— 107O, on 1.000 »em at Omnce Caro ia TuUro Conntjr:
         niorlu ptanleii nineo 19&0 prorinccii 700 ta 1.000 fitld boxn rwr acre
         Hlnriw 40 r«r» anH nwro old Jirorfnirrf 300 la SOO Held bold per Mm
       fofit,^ at .'.nv with yr»r-l«ne |Mrk  (hichcrr triUi  unuanoi imrk)
         NOTK: N«r«i anneex— 500 la TOO baza viUt tax than 100% p»ekont (ye«r tone)


     — From R. Smith,  "What  is  Being  Done by  the  University,"
        Agricultural Chemicals — Harmony or Discord,  p. 141.

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 Figure 1
                 NAVEL  ORANGES.
f-

*£
C


3>
U
e
u.
B,
Q
0
€0
0

90 .



80 ..

70 .


60.

50 .


* - • •
• . . -
• ^ *
~~

'^^ • •
* • * • .
xx'Xs>^ •
• • •'^'NVX/-
- .'.- . . • • -

.• ' • . • • . ..'..-.-• '.'-.-.
Note: solid lines are regression lines
for the period:
1949-58,1959-63,1964-74.

.
            50  55  60  65  70  75
                     YEAR.
O
o
o
U
o

la
c
o
150



100



 50
            50  55  -60  65  70  75
                    YEAR.

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Figure 2
I-'
UJ

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                                                                156
  Figures    PER-CA PITA CONSUMPTION OF FRESH ORANGES
cc
u
O
I
ec
Ui
a.
CO
o
o
a.
30

20

10
               50   55  6O  65   7O   75   YEAR.
 SEASON AVERAGE  ON-TREE  RETURNS PER FIELD BOX FOR CALIFORNIA
                                                       ORANGES.
       $4
       $3
       $2
       $1

       $3
       $2
       $1
      Navels.
Valencias.
                                            Note: solid lines are
                                            regression lines for
                                            the period: 1950-55,
                                            1959-63, 1964-71.
               50   55   60   65   70   75
                                       YEAR.

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                                                              157
     Figure 4
                 CALIFORNIA NAVEL ORANGES.
CO
Q

O
cc
CL
O


a
ui
O
O
     30
      20
 o
 c
 o


or0
     10
                      1967
                               1972
              1961
                                  Fraeze Years
                     10       20



                     TOTAL CROP.
                                        30
                                             Slope = 1-1029


                                             Hypothesis that slope = o

                                             is rejected at the s%

                                             confidence leve!.

                                             Freeze years eliminated

                                             from data.

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  Figure 5
          CALIFORNIA  VALENCIA  ORANGES
     50
en

5
3
O
O
fiC
O.
40
Q
UJ
O
O
a.
O
a:
o
     30
     20
                          =Freeze years
              10       20



              TOTAL CROP.
                                      30
                                       S10pe=0-5602

                                       Hypothesis that slope = o

                                       is rejected at the 5%

                                       confidence level.

                                       Freeze years  eliminated

                                       from data.

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Figure 6
CALIFORNIA ORANGES 1973-74.
(0
H • • .
0
D • • ' ' ' • '
a
o
DC
a.
>l 50 .
m
o
"- 40 .
a
IU
5 30 .
0
o
d 20 .
<
a
0 10
(DC
U
o
ov




' * X
rv
* • • • • - •
*** •***•••
* • • x • „ •
-•'••*•' t * " • *
''***••***' K '• * ' *
• • ^ w ' • •
XX ** • M
*
' « X x
• X X *
K M XX X
• X X X X x% X X
'•':.• ' x x . ' •;••••

. VALENCIA
x x NAVEL

*Mfr*IBf^l1l!USffltfflllWffftMkiitV^
             10
              WEEK
          20
30
40

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               Figure 7
 ^

^,
   537


100,000


 90,000


 80,000


 70,000


 60,000


 50,000

 **•
   ,000

 30,000


 20,000


 10,000
                                                    OPTIMUM
                                                      PRODUCTION
   WEEKS ENDING    7-7 7-14 7-21 7-28  8-4 8-1! 8-18 8-25 9-19-89-21
                           1973 WEEKLY VOLUME OF DELIVERIES
                            NEEDED VOLUME.
                            EXCESS VOLUME ABOVE PLANT CAPACITY.

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