Western Grower & Shipper 2019 Jan-Feb

Western Grower & Shipper 2019 Jan-Feb

JANUARY | FEBRUARY 2019 WESTERN GROWER SHIPPER Meet RON RATTO

Western Growers’ Chairman of 2019

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WESTERN GROWER SHIPPER JANUARY/FEBRUARY 2019 WGA.COM

6 2019 CHAIRMAN OF THE BOARD Ratto Bros. Thrives with Unique Niche 10 McInerney Set to Retire after 43 Years with Western Growers 12 “Growth” A Resonating Theme throughout WG Annual Meeting 16 Augean Robotics Hailed as “Comeback Kids” during AgSharks Competition 18 AgTechx Events Sparking Technology-Led Disruption in Farming Regions 20 SPEED BREEDING New Technology Shows Promise 28 WGCIT SPONSOR All Terrain Mower Has Roots in Czech Republic 29 ZAG Bringing IT Security Awareness to WG Center for Innovation & Technology

WESTERN GROWER & SHIPPER Published Since 1929

Volume XC Number 1

To enhance the competitiveness and profitability of Western Growers members

Thomas A. Nassif President Western Growers [email protected] Editor Tim Linden Champ Publishing 925.258.0892 [email protected] Contributors Cory Lunde 949.885.2264 [email protected] Chardae Heim 949.885.2279 [email protected] Production Diane Mendez 949.885.2372 [email protected] Circulation Marketing 949.885.2248 [email protected] Advertising Sales Dana Davis Champ Publishing 302.750.4662 [email protected] Stephanie Metzinger 949.885.2256 [email protected]

DEPARTMENTS 4 President’s Notes 8 Director Profile 22 Legislative Profile 24 CA Government Affairs 26 Fed Government Affairs 31

32 Insurance Corner 33

Agriculture & the Law Science & Technology

35

37 Financial Services 40

Western Growers Connections

Western Growers Assurance Trust

41 42

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Western Grower & Shipper ISSN 0043-3799, Copyright © 2019 by the Western Grower & Shipper is published bi-monthly by Western Grower & Shipper Publishing Company, a division of Western Growers Service Corp., 15525 Sand Canyon Avenue, Irvine California 92618. Business and Editorial Offices: 15525 Sand Canyon Avenue, Irvine California 92618.Accounting and Circulation Offices:Western Grower & Shipper, 15525 Sand Canyon Avenue, Irvine California 92618. Call (949) 863-1000 to subscribe. Subscription is $18 per year. Foreign subscription is $36 per year. Single copies of recent issues, $1.50. Single copies of issues more than three months old, $2. Single copies ofYearbook issue $4. Periodicals postage is paid in Irvine, California and at additional mailing offices. POSTMASTER: Send address changes to Western Grower & Shipper , PO Box 2130, Newport Beach, California 92658.

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TOM NASSIF | PRESIDENT AND CEO, WESTERN GROWERS PRESIDENT’S NOTES

What Will NewsomMean for California Agriculture?

On November 6, Gavin Newsom rode into the California Governor’s Mansion on a blue wave (which some are dubbing a “blue-nami”) that all but wiped out Republican relevance in the state for the foreseeable future. At 61.8% of the vote—which included a victory in Orange County, which went for a Democratic governor for the first time in 40 years—Newsom tallied the largest gubernatorial point spread since 1950. California’s delegation to the U.S. House of Representatives now stands at 46 Democrats to 7 Republicans, with the Democrats flipping an incredible seven seats (again, Orange County will not have a single Republican House representative for the first time since 1940). To top it all off, Democrats, who in recent years briefly held a bare two-thirds supermajority in Sacramento, have now captured three-fourths “mega-majorities” in both chambers of the Legislature, which will allow them to pass tax increases, place constitutional amendments directly on the ballot and override the governor’s vetoes.

So, where does this leave a largely conservative industry like agriculture? What can Western Growers members expect out of a Newsom governorship? What I’m about to suggest may come as a shock to some, but should not be considered provocative. In fact, it could more appropriately be viewed as pragmatic: Let’s give Governor Gavin Newsom the benefit of the doubt. I’ll give everyone a moment to settle back into their chairs. Now, let’s set aside any personal views toward Gavin Newsom (and, perhaps, the Democratic Party) and try to have a levelheaded conversation. As an industry, we must acknowledge the political landscape in California and play the hand we have been dealt. Certainly, we will not roll over and allow hostile forces to dictate our destiny, and we will address injustices toward our industry whenever and however they occur. But we must also recognize the need to work within the system, to engage in productive dialogue with reasonable actors on both sides of the aisle. I, for one, believe Gavin Newsom could be that rational player—at least, at a minimum, on several key issues that impact California agriculture. Newsom is an entrepreneur, so he understands the profit-robbing consequences of burdensome government regulation and bureaucratic red tape. Furthermore, Newsom’s “real” job depends on agriculture, as he founded the PlumpJack wine store and related management group that operates nearly two dozen businesses, many in the winery and restaurant space. So, it would seem, agriculture and agricultural businesses should be natural allies of the new governor. Indeed, Newsom appears to recognize the foundational importance of the agriculture industry. During his keynote

address at the 2016 Forbes AgTech Summit, Newsom classified agriculture as one of the three most iconic industries in California, along with Hollywood and technology. He went on to admit that, “We have regulatory challenges in this state,” and conceded that the government cannot prescribe a “pill for every problem.” Instead, Newsom suggested that the role of government should be to create an environment where the private sector is fundamentally engaged in solving the big problems of the day, and pointed to the collaboration between agriculture and Silicon Valley to address issues like water scarcity and labor shortages. Newsom concluded his speech by saying, “We are grateful for the work California farmers are doing… I think we have an incredible opportunity here in California, not just to survive in the agricultural industry but to truly thrive in a growing, competitive environment.” If we take him at his word, then we have a duty to cultivate the seeds of respect and appreciation Newson has expressed for our industry. They may very well take root and blossom into a field of renewed prosperity for California agriculture. Extended metaphor aside, our recent experiences with California state politics compel me to offer this disclaimer: Be prepared to be disappointed. But, he has given every indication that he cares about agriculture. Therefore, as collective stewards of the industry, we have an obligation to engage the new governor from a position of guarded optimism. In this spirit, we must put forward a good faith effort and work to establish a genuinely positive relationship with the new administration. Perhaps we will be able to find some common ground, after all.

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2019 CHAIRMAN OF THE BOARD Ratto Bros. Thrives with Unique Niche

By Tim Linden M odesto, CA-based Ratto Bros. Inc. is very roots so commonplace in the fresh produce industry. But it also has developed its own unique niche that has set it apart from the norm and allowed it to thrive as a medium-sized California grower-shipper. Leading that firm and also helming Western Growers as the 2019 chairman of the board is Ron Ratto, the third generation of his family to run the business, and fifth generation of the family to farm in California. “My grandfather started selling vegetables when he was 16 years old in 1905 on Bay Farm Island,” said Ratto, who relayed that Antone L. Ratto would deliver vegetables to his customers via a horse-drawn cart. Bay Farm Island was once an island in the San Francisco Bay dotted with farms. A landfill project connected it to Oakland and made it a peninsula. It now sits adjacent to the Oakland International Airport and is home to a 36-hole golf course, office and retail complexes, and several housing developments. But the general area was the farming home of the Ratto family for the length of the 20 th Century. In fact, it was still farming on land adjacent to the airport until 2005. That was the same year Ratto Bros. completed its state of the art packing and cooling facility in Modesto and switched the company headquarters to that location. Antone L. Ratto actually first farmed in the Modesto area for a short time in the 1930s but Oakland was the sole focus of its operations until the 1960s. The original farm, as well as another near the airport, provided for his family of 10 children through the two World Wars and the Great Depression. In 1948 and not yet 60 years old, Antone had a heart attack and needed help with the business. His five sons started to come back to the farm and no doubt their involvement helped him live to the age of 98. It was in the 1950s that those five sons formed the Ratto Bros. operation that exists today. Knowing that urbanized Oakland wouldn’t always be friendly to the farming community, the company bought 160 acres in Modesto in the early ‘60s and began the long transition to becoming a San Joaquin Valley organization. Over the years, the company has expanded and now has grown to more than 1,000 acres, all in the close proximity to three rivers—the Stanislaus, San Joaquin and Tuolumne. The micro- representative of the agricultural industry at large. It has a long family history in agriculture and deep

climate caused by the confluence of these three rivers allows Ratto Bros. to be a year-round grower and shipper of vegetables. The company grows dozens of vegetable items concentrating on greens and other specialty vegetables. “We grow 30-35 different leafy greens,” Ron said. “We are seasonal, but we have some crops growing all year long.” The five members of the second generation that owned and ran the company for many years has evolved into four members of the third generation who are now part of ownership and form the management team. Ron is the president with his three cousins—Ray, David and Frank—handling production, sales and marketing. Ron said one of the family’s keys to success is that each partner takes responsibility for their own area of expertise. While discussions ensue for major decisions, there is a certain amount of autonomy within each department. “And everyone does a great job in their area. We produce great quality crops in the field and our sales and marketing departments do an excellent job.” He added that the company has a diverse customer list, selling directly to many foodservice and retail clients. He opined that fulfilling your commitments is another major key to the firm’s success. Ron’s path to the family operation was a straight line. After graduating from University of California at Berkeley with an agricultural degree in the 1970s, the second generation gave him the opportunity to join the family business, and he did so, making a career of it. He acknowledges that it is time for the four current shareholders to develop the next generation to take over the family business. “Retirement is lurking,” he quipped, adding that two members of the fourth generation do work for the company currently. Ron is bullish about the future for that next generation though he also acknowledges that there are major hurdles to jump. “There are plenty of challenges to deal with, including labor, water and regulations. We deal with those challenges as we can, planning ahead the best we can.” He said other grower-shippers have found success in diversifying by moving to other areas, states and countries to source produce but Ratto Bros. continues to manage with all its production in one district. It is this uniqueness that gives the company an edge. Virtually every other California vegetable operation is located in the coastal regions with the staple crops being their calling card. Other San Joaquin Valley farms tend to specialize in vines, nuts

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and tree fruit. Ron calls Ratto Bros. “a medium to small company” noting that its size “is viable for us” but admits to being an outlier as other vegetables grower-shippers are much larger, more geographically diverse and located elsewhere. No product dominates sales for Ratto Bros. but in aggregate, the sales add up. “There is only so much turnip greens a customer is going to buy,” he quipped. It might have been being a small guy in a big pond that pushed Ron into being an active member in the agricultural community. Ratto Bros. joined Western Growers Association about 20 years ago and Ron was one of the early board members of the Leafy Greens Marketing Agreement. He noted that it was his participation on the LGMA board that acquainted him with growers from other districts and got him more involved in industry issues. When the WG board seat for the Central San Joaquin Valley opened up about a decade ago, he ran for it and won. He’s not sure he would call himself an “activist farmer” but Ratto said he is willing to get out and talk to people about the issues and explain agriculture’s viewpoint. He said that is important as there are host of issues, including food safety and labor concerns, in which agriculture needs to have a voice. He is confident that both the staff and board leadership of Western Growers is moving in the right direction and he sees his position as chairman as continuing the good work that is already being done. He said the organization is an industry leader and has a history of innovative thinking. He pointed to the development of the Western Growers Center for Innovation & Technology as a testament to that. “It is still in its infancy, but there are some really exciting and useful developments coming out of that program.” But in his year as WG Chairman of the Board, change is going to be a prevalent theme. The association’s top two staff leaders—President Tom Nassif and Senior Executive Vice President Matt McInerney—have announced their retirement dates. Nassif will retire at the end of 2019 while McInerney is leaving in late March. Ratto said finding a new CEO will undoubtedly be an important task that the board undertakes. In late November, he said the details of the search were still under discussion but a plan would be forthcoming. “I will tell you that I have not been involved in a

WESTERN GROWERS OFFICERS – 2019

RON RATTO, Chairman RYAN TALLEY, Senior Vice Chair ALBERT KECK, Vice Chair CAROL CHANDLER, Treasurer VICTOR SMITH, Executive Secretary THOMAS A. NASSIF, President DIRECTORS – 2019 GEORGE J. ADAM Innovative Produce, Santa Maria, California KEVIN S. ANDREW Vanguard International, Bakersfield, California ROBERT K. BARKLEY Barkley Ag Enterprises LLP,Yuma, Arizona STEPHEN J. BARNARD Mission Produce, Inc., Oxnard, California BARDIN E. BENGARD Bengard Ranch, Salinas, California GEORGE BOSKOVICH III Boskovich Farms, Oxnard, California NEILL CALLIS Turlock Fruit Company,Turlock, California DON CAMERON Terranova Ranch, Helm, California EDWIN A. CAMP D. M. Camp & Sons, Bakersfield, California CAROL CHANDLER Chandler Farms LP, Selma, California LAWRENCEW. COX Coastline Family Farms, Salinas, California STEPHEN F. DANNA Danna Farms, Inc.,Yuba City, California JOHN C. D’ARRIGO D’Arrigo Bros. Co. of California, Salinas, California THOMAS DEARDORFF II Deardorff Family Farms, Oxnard, California FRANZW. DE KLOTZ Richard Bagdasarian Inc., Mecca, California SAMUEL D. DUDA Duda Farm Fresh Foods, Inc., Salinas, California WILL FELIZ Wawona Packing Company, Cutler, California CATHERINE A. FANUCCHI Tri-Fanucchi Farms Inc., Bakersfield, California DAVID L. GILL Rio Farms, King City, California BRANDON A. GRIMM Grimmway Farms, Arvin, California JOHN JACKSON Beachside Produce, LLC, Nipomo, California A. G. KAWAMURA Orange County Produce, LLC, Irvine, California ALBERT KECK Hadley Date Gardens,Thermal, California FRED P. LOBUE, JR. LoBue Bros., Inc., Lindsay, California FRANK MACONACHY Ramsay Highlander, Inc., Gonzales, California JOHN S. MANFRE Frank Capurro and Son, Moss Landing, California STEPHEN MARTORI III Martori Farms, Scottsdale, Arizona HAROLD MCCLARTY HMC Farms, Kingsburg, California TOMMULHOLLAND Mulholland Citrus, Orange Cove, California ALEXANDERT. MULLER Pasquinelli Produce Co.,Yuma, Arizona DOMINIC J. MUZZI Muzzi Family Farms, LLC, Moss Landing, California MARK NICKERSON PrimeTime International, Coachella, California THOMAS M. NUNES The Nunes Company, Inc., Salinas, California STEPHEN F. PATRICIO Westside Produce, Firebaugh, California RON RATTO Ratto Bros. Inc., Modesto, California CRAIG A. READE Bonipak Produce, Inc., Santa Maria, California JOSEPH A. RODRIGUEZ The Growers Company, Inc., Somerton, Arizona WILL ROUSSEAU Rousseau Farming Company,Tolleson, Arizona VICTOR SMITH JV Smith Companies,Yuma, Arizona KELLY STRICKLAND Five Crowns, Inc., Brawley, California RYANTALLEY Talley Farms, Arroyo Grande, California BRUCE C.TAYLOR Taylor Farms California, Salinas, California STUARTWOOLF Woolf Farming & Processing, Fresno, California ROBYRACEBURU Wonderful Orchards, Shafter, California

search of this magnitude before but I know many members of the board have. I will be relying on their expertise as we move forward and think this through. Finding a new president is going to be a very important task.” Personally, Ratto still lives in the general area in which he grew up. He lives in the East Bay, not too far from Oakland, and about an hour’s drive from the Modesto office…when traffic cooperates. He has been married to his wife, Catharine, for 38 years, and has known her for quite a bit longer as they were family friends growing up. The couple has three sons in their 30s— Anthony, Andrew and Robert—and their first grandchild on the way. Anthony works for Ratto Bros. mentoring under Ray Ratto on the production end of the company. Andrew is also in the business, working in sales with a Salinas area shipper.

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ARIZONA DIRECTOR PROFILE

Gary Pasquinelli: Steps Down after 45 Years of Service After 45 years on the Western Growers Board of Directors, Gary Pasquinelli stepped down in November having served the longest tenure in the 90-plus year history of the association. “Our longest serving board member is not only one of the most active producers in the industry, he puts his time, talent and treasure into everything he does,” said Tom Nassif, president and CEO of Western Growers and a friend Gary for the vast majority of both their working lives. “He has been an invaluable resource for me whenever I need advice on issues affecting our members. His breadth of knowledge in the agricultural field is matched by his political acumen and personal involvement. He will always make the difficult call to any legislator. His love of the Lord and family adds a dimension to his persona that reflects in how he treats friends and neighbor alike. He is a dear friend and will be missed by us all.” with the Jesuits and who served as an altar boy, Notre Dame was the end-all of universities. In 1965, after graduating cum laude from Notre Dame, Pasquinelli headed west to attend law school at UC Berkeley. But soon he decided that he wanted to follow in his father’s footsteps and join the fresh produce industry. In 1967, he joined Pete Pasquinelli in the family business. His first assignment was in the cabbage patch where he was responsible for its harvest. Compared to the rest of the 4000-acre farming operation, it was a small slice of the pie, just 40 acres…but it was all his. Having successfully managed the cabbage harvest, the following year he was assigned to manage the produce field trucks. For two years, he oversaw the trucks that hauled the lettuce from the fields back to the cooling plants and then was promoted to the position of overseeing the entire harvest. The next 18 years were formative for the young Pasquinelli and Pasquinelli told Western Grower & Shipper that he is also stepping back a bit in other aspects of his life. He has been a deacon in the Catholic Church for the past 27 years with official duties in his local Yuma church. He is also relinquishing those official duties. With regard to his company—Pasquinelli Produce Company, he is also beginning the transition process to new leadership, which he expects to occur on “the near horizon…over the next three years.” Son-in-law Alex Muller, who has focused on food safety issues at the company, is moving into a more senior administrative position provided a platform for constructing the man he is today. During those years he got to know every worker in the operation, all 230 of them. He knew their names, their families and their interests. And he got to where he could speak Spanish fluently. As he described it, “I lived with them out in the field and was with them

to assume some of Gary’s duties as time moves on. Muller was also elected by his Yuma area peers to succeed Pasquinelli on the WG Board of Directors. Pasquinelli attended boarding school in San Jose at Bellermine College Prep. Upon graduating in 1961, he was accepted into several different universities, but the letter from Notre Dame was the one that caught his eye. “When I got that letter, it was like a slam dunk,” he once told Western Grower & Shipper . It made sense. For a youth who attended Catholic grade school and high school

morning to night. I really respected those people. I got an appreciation for what tough work that was.” Between 1975 and 1983, Pasquinelli estimates he ran about 65 percent of the company and his dad ran 35 percent. When his dad passed away in 1984, Gary took over the entire operation. But farming

Gary retired from the board of directors at this past Annual Meeting after serving 45 years.

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wasn’t the only calling in Pasquinelli’s life. As mentioned above, he was ordained a deacon in the Diocese of Tucson in 1991 after several years of taking the required training. Besides tending to his own family matters, Deacon Pasquinelli has provided many services for his church, including preaching at Mass, running the infant baptism program, performing baptism interviews, teaching classes and delivering communion to nursing homes on occasion. Pasquinelli and his wife, Barbara, have four daughters. Their daughter, Kirsten, passed away from Adrenocortical Carcinoma and a foundation was established to cure this disease thereby supporting her legacy. He also called his sister and silent business partner, Adrienne McLaughlin, a great help over the years in all aspects of his life. Though Pasquinelli Produce was a member of Western Growers for many years under the tutelage of his father, it wasn’t until the late 1960s, when the labor battles came to Yuma, that the company got more involved with the association. Gary began working with WG lawyers and President Daryl Arnold to defeat the unionization efforts. As the ‘70s dawned, the fight intensified. “We ended up beating the union and were able to harvest our entire 2,000 acre cantaloupe crop under strike conditions. I remember Daryl Arnold saying of me that I am the kind of ‘young leadership’ that the board needed. I was about 28 at the time.” A couple of years later, longtime WGA Yuma director Sid Woods retired. “With his blessing, I ran for the position and have been a director ever since. My blood is in the bricks,” he said of WGA, recalling many services and activities that he was intimately involved in over the past five decades. He spoke of the advent of harvest-time strike insurance and noted that he was the person who came up with the name Quail Street Casualty for the association’s off-shore insurance entity. The name came from the street that housed the association headquarters in the 1970s. Pasquinelli recalls that he was asked to serve as chairman in the early 1990s but his deacon duties took precedent and he declined the honor. In 2000, he did serve as chairman under President Dave Moore. “I was very close to Dave and delivered the eulogy at his funeral.” The following year he chaired the search committee that brought Tom Nassif to the president’s position. Pasquinelli remembers meeting Nassif during the tumultuous labor battles when the future WG CEO was a young labor attorney. As chairman, and throughout the years, Pasquinelli said he has been guided by the notion of being a “servant leader…

(l to r) Alex Muller, Pasquinelli Produce Co.; Cong. Martha McSally (R-AZ-2); Robby Barkley, president of Barkley Ag Enterprises; Sonny Rodriguez, president of the Growers Company; Gary Pasquinelli, CEO of Pasquinelli Produce Company.

leading by example. I got so much more out of it than I ever gave,” he said, greatly undervaluing his service. He believes deeply in the work of Western Growers and the concepts of “circling the

wagons” and “strength in numbers.” And he also knows it was time to step down. There is a fire in the belly that informs this work and Pasquinelli said that while the flame is still there, it’s not burning quite as bright.

Pasquinelli Produce Company receives its 70-year anniversary plaque for being aWestern Growers member at the 2017 Annual Meeting

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McInerney Set to Retire after 43 Years with Western Growers

By Tim Linden A fter 43 years with Western Growers—the last 25 as the number two person—Western Growers Senior Executive Vice President Matt McInerney is retiring in March of 2019, after the association’s first board meeting of the year. McInerney grew up in Southern California’s San Gabriel Valley, the youngest of five kids. His mother was a registered nurse and his father worked as a sales manager in the Keds shoe division of U.S. Rubber, and were very much believers in higher education. McInerney followed the lead of one older brother and went to the University of Southern California. He majored in Business Administration with an emphasis in marketing, but upon graduation didn’t have a clear idea of what career path he would take. “I graduated in 1975, which coincided with a dip in the economy,” he said. “I sent out a multitude of applications but I was finding it difficult to find full time employment.” A family friend with Belridge Farms in Bakersfield, CA, paved the way for an interview with WGA President Daryl Arnold, who was also an alumnus of USC and had a great affinity for the school. There was a position open at the association for a field representative. “Mr. Arnold encouraged me to give it a try for a few months at a salary of $900 per month,” Matt recalls. He spent the next two years on the road visiting members and pushing association products, such as the WGA Claims Service. “In those days, lots of freight moved in refrigerated rail cars through the Southern Pacific,” he said, noting that the department was busy helping shippers with claims. McInerney attempted to “sell” the service to members during his visits. “I spent two full weeks of every month on the road and half of the days the other two weeks. My territory was all of California and Arizona,” he said. He learned the produce business from the ground up from the top minds in the industry…and loved it. “I called on some incredible people. They welcomed me into their businesses and answered any questions I had with patience.” He recalls meeting industry veteran Paul Fleming of Admiral Packing many years ago wearing a coat and tie on a hot desert day. “It was mid-June and I was in the Imperial Valley during the cantaloupe season… and it was very hot. I was wearing a sports

coat and tie. Paul said to me ‘You must be new. Farmers don’t wear ties.’” He also recalls meeting Bill Ramsey of Mann Packing Company who gave the young WG employee a sense of the high regard in which farmers held their workers. “That has stuck with me all these years.” In 1977, McInerney had an opportunity to move to the

claims department, an area he worked in or oversaw for the entirety of his career from that point forward. He became fully immersed in the nuances of the Perishable Agricultural Commodities Act. In fact, he became one of the industry’s foremost experts on the subject, often participating in panel discussions from coast to coast, as well as conducting regular seminars for WG members and their sales teams. Discussing the

highlights of his career, it is work with the PACA that he lists first, recalling the extremely important passage of the PACA Trust amendment in 1984. He remembers the charge was led by John Norton, a politically active Arizona grower-shippers and cattleman, who was also a former WG chairman of the board. Patterned after a similar amendment in the livestock business, Norton advocated for the trust provision, which put produce suppliers in a priority position in the event of a bankruptcy by a firm on the buy side of the equation. Over the past 30 years, that provisions has helped the produce industry recoup hundreds of millions of dollars.

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Another highlight he recalls was the establishment of the Dispute Resolution Corporation, the tri-national (Canada, Mexico and the U.S.) dispute resolution system that gave shippers from all three countries a road map and guidance on how to handle disputes no matter where they shipped their product. McInerney served as chairman of the DRC from its inception in 2000 through 2017. In 2007, Western Growers, in conjunction with C.H. Robinson, established the Western Growers Transportation Program. McInerney worked closely with CHR over the past decade fine tuning the program and helping to pitch it to members, as well as helping to expand it to other associations around the country. Still another highlight for McInerney was the six years he served as chairman of the Alliance for Food and Farming—another collaborative industry effort designed to solve an industry problem. During his career. McInerney servedWestern Growers in a variety of positions. Over the years he oversaw almost all WG activities at one time or another. He served a stint inWashington D.C. in between lobbyist hires and also was named interim president for a period of time as the association traversed the very difficult period between the untimely death of president Dave Moore in 2001 and the hiring of current president TomNassif in 2002. After being named president and CEO, Nassif remembers fondly meeting McInerney for the first time. “He pledged to me that he would support everything I wanted to do and do it as best he could, and he has.” Nassif continued: “He is one of the most respected ag leaders in the country. He is admired for his unmatched knowledge of the fresh produce industry and his willingness to tackle any issue that benefits the industry and our members. He avoids being in the spotlight and taking credit for the many invaluable successes he has spearheaded. We will find others to do his work but no one will replace him. It will be a great loss for us all.” McInerney is equally effusive about Nassif ’s impact on the association. “For the past 17 years I have been very lucky to work for Tom Nassif who has been a great leader and has brought a great entrepreneurial spirit to the organization. Over those years we have seen phenomenal growth in the services and products we offer to our members. We are a solution-driven association.” In fact, McInerney said that has been the approach at Western Growers since he joined the organization 43 years ago from both

Matt McInerney, Tom Nassif and Jasper Hempel of Western Growers in the early 2000s

the staff and the volunteer leaders. He said he has served with many generations of the same families as the organization leaders are often second, third and fourth generation family members of the growers who founded the organization and have taken it on its 90-year journey. “There are just too many to name,” Matt said. “I can’t recall one board member that I wouldn’t want to go out and get a beer with.” As he retires, McInerney is extremely confident that the association is in great hands. “I am very optimistic about the future of this organization as we have a number of young professionals who have come aboard in the last 10-15 years and are taking key position. These people are passionate about what they do and love the industry. They are the right people for these positions.” He noted that Bryan Nickerson, who has an industry background, has become the manager of the trade practices division. “He will answer to Jason Resnick, vice president and general counsel, who has a keen legal mind and will be very helpful to Bryan.” McInerney took the opportunity to bid farewell to Ken Gilliland, another long term WG employee, who retired at the end of the year and worked with Matt for the majority of the past four decades. “Ken was a great help and those international trade issues that he and I were involved in have been shifted to our Washington D.C. office where Dennis Nuxoll will oversee them. He is an international attorney by training so that’s a natural.” McInerney said Kim Sherman, the association’s director of membership, has taken on the responsibility of being the point person for the Western Growers Transportation Program that is run in conjunction with C.H. Robinson. He said her background with the Chamber of Commerce makes her well suited to handle that responsibility. In the area of food safety, another industry concern under McInerney’s umbrella, “Hank Giclas will continue to be our main guy in that area. He is a superstar in that area and has great industry respect. He brings a unique perspective to the position.” McInerney added, “I am at a point where I am very, very comfortable with the state of Western Growers as I walk out the door. I am proud of the team that I am leaving behind and look forward to watching from afar the exciting new directions they take the organization.”

Matt and Luanne McInerney

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JANUARY | FEBRUARY 2019

Western Grower & Shipper | www.wga.com

“Growth” A Resonating Theme throughout WG Annual Meeting

By Stephanie Metzinger T his past October, California’s Coachella Valley hummed with energy from the 500 leading agricultural professionals who flooded the ballrooms of the JW Marriott Desert Springs Resort & Spa for Western Growers’ (WG) Annual Meeting. The 93 rd Annual Meeting offered a host of workshops and events that embodied the theme of “growth.” Guests had the opportunity to participate in educational sessions that focused on expanding their knowledge in the hottest science and technology trends, as well as listen to world-renowned speakers who provided tools to influence behavior. Attendees also enjoyed a flurry of networking activities that provided an opportunity to reflect on 2018 and ignite The Annual Meeting was filled with celebration, thanking outgoing chairman Craig Reade, of Bonipak Produce, for his service and welcoming Ron Ratto, of Ratto Bros., Inc., as the 2019 Chairman of the Board. During Reade’s moving farewell address, words of inspiration filled the room as he spoke about the next generation of leaders who will disrupt current norms and spark an evolution in agriculture. “The increasing regulations on agriculture are an increasing burden,” said Reade during his speech. “Technology allows us to overcome these regulations. Millennials understand how to adapt to use technology and the innate innovativeness of millennials will allow agriculture to thrive.” conversation on how to grow the industry in 2019. RATTO TAKES HELM AS 2019 CHAIRMAN

This theme of growing young talent was also reflected when the new roster of board members was announced on day two of the Annual Meeting. The Board of Directors welcomed four former Future Volunteer Leaders to the team: Neill Callis, Turlock Fruit Company, Brandon Grimm, Grimmway Farms, Alex Muller, Pasquinelli Produce Company, and Kelly Strickland, Five Crowns Marketing, Inc. They join Steve Martori, Martori Farms, and now represent five current board members who have graduated from WG’s Future Volunteer Leaders program, a two-year cohort designed to cultivate the next generation of leaders within WG member companies.

Craig Reade, Steve Patricio, and Tom Nassif

Next year, the board will convene under the leadership of Ratto, who was elected to serve as chairman for a one-year term. “Ron has made significant contributions in his current role as a board member and senior vice chairman, advancing both the innovation and advocacy side of agriculture,” said WG President and CEO Tom Nassif. “I look forward to working with him as our new chairman, along with the rest of the board, to facilitate the ongoing growth of Western Growers in support of our members

and the fresh produce industry as a whole.” PATRICIO HONORED FOR SIGNIFICANT CONTRIBUTION TO AG

Steve Patricio, Westside Produce, who has helped move the needle on critical issues facing ag such as water scarcity and food safety, was designated as the 2018 Award of Honor. In addition

Ron Ratto and Craig Reade

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to the Award of Honor, Patricio was also presented a resolution from the California Legislature—a Joint Members Resolution from Representatives Anthony Cannella, Heath Flora and Adam Gray. Preceded by introductory remarks from Nassif, Patricio delivered an inspirational speech that resonated with each and every guest. “Growing up, our parents instilled an important principle in us that I have tried to impress on my children,” said Patricio. “That simple principle was hanging around with the good kids. By being

around the better kids, it would make you better. By being around the best kids, it could make you work harder and achieve more. Western Growers are the better kids. They are the best kids, and hanging around these kids have made me better.” STARTUP WINS $250K TO DEPLOY LABOR-SAVING TECH IN THE FIELD Augean Robotics, an early-stage robotics company that has built an autonomous vision-based robotic platform, walked away from the WG AgSharks® Competition with a $250,000

equity investment offer after facing off against four other startups. The seed funding, which was awarded by S2G Ventures, will allow the robotics startup to continue to scale and fine tune their product toward early commercialization next year. Its product, Burro, is a robot that follows farmworkers and functions as a virtual conveyor belt between pick points and collection points, allowing hand pickers to pick continuously rather than wasting up to 30 percent of their time shuttling produce. “In S2G and Western Growers, we see a group with boots on the ground and eyes on the horizon—keenly aware of the day to day needs of farmers and the incredible potential for robots in agriculture over the coming decade,” said Charles Andersen, CEO of Augean Robotics. “We are honored to have their support and look forward to working together as we bring collaborative robots to the industry that needs it most.” WORLD-RENOWNED SPEAKERS LEAVE GUESTS WITH POWERFUL MESSAGES The topic of embracing growth and change were top of mind during the Changing Minds to Influence Results with Arbinger and Advances in Genomics sessions during the Annual Meeting. Juan Enriquez, one of the world’s leading authorities on the uses and benefits of genomic research, shared a presentation on genomics and how advancements in the field will fundamentally change life in the future, while Mike Merchant, senior consultant for the Arbinger Institute, facilitated an emotional and eye-opening conversation about achieving an outward mindset. Through personal stories from WG members, the workshop demonstrated the importance of taking into account one’s impact on others and focusing on the needs of the organization as a whole. “Arbinger is more than a culture. This is a healing,” said Merchant. “It’s a way to humanize every interaction and speak the same language.” Additionally, keynote addresses from Judge Andrew Napolitano, Robert O’Neill and Jon Dorenbos left guests in awe. During the PAC Lunch, Fox News’ Senior Judicial Analyst Judge Napolitano shared insights on the current political environment. On the following day, O’Neill took the stage and provided an inside look into leadership and decision- making as a Navy SEAL Team Six leader.

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“This nation will never quit,” noted O’Neill during his keynote. “It will do everything it can to preserve and protect its people.” O’Neill—who released the famous three shots that dispatched the world’s most wanted terrorist, Osama bin Laden—has held leadership roles in more than 400 combat missions and shared some of his personal key principles to success with the audience: • Separate emotions from decision-making. • Never quit. Only move forward. • Complacency kills. • Trust your team. Trust your people. “Bravery is recognizing fear and putting it aside. Put your head

down, don’t give up and keep moving forward,” said O’Neill. The Annual Meeting culminated in a jaw-dropping magic performance by former Philadelphia Eagles long-snapper Jon Dorenbos, where he wowed the audience with his skills as a sleight- of-hand magician and inspired the crowd with his life story. Though the festivities of the 2018 Annual Meeting have concluded, it is never too early to begin thinking about WG’s next annual conference. WG is headed to Wailea Beach Resort – Marriott, Maui, on November 10 – 13, 2019, for another Annual Meeting filled with growth opportunities, interactive activities and ag collaboration.

Arbinger session

AgSharks® session

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Sharing a healthy future

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Getting the best out of nature • Positioned right at the start of the food chain, we apply state-of-the-art techniques to the rich genetic diversity nature offers us. With a global network of leading research institutes and universities, we are constantly working to further improve the effectiveness and efficiency of the breeding process. • We are always able to respond to ever-changing market demands and offer added value to growers, retailers and consumers, we help our growing partners to get the best out of our varieties. Together, we can make our vegetables tastier, more appealing, easier to prepare and even more healthy.

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Sharing a healthy future

Augean Robotics Hailed as “Comeback Kids” during AgSharks Competition

By Stephanie Metzinger A ugean Robotics is a true testament to the phrase “persistence pays off.” The robotics start-up company—which builds a fully autonomous, vision-based farming robot called “Burro”—returned to the AgSharks® Competition stage this past October for a second shot at winning $250,000 in seed funding. The early-stage company first competed in AgSharks in 2017 during the Western Growers Annual Meeting in Las Vegas. After fiercely pitching Burro to a panel of investors from S2G Ventures and specialty crop farmers, Augean Robotics was not selected as a winner and subsequently did not earn the investment capital at stake. The startup, which is headquartered in Philadelphia, PA, with another office in Salinas, CA, at the Western Growers Center for Innovation & Technology, used the experience as a learning opportunity. Implementing the feedback they received from the AgSharks judges and other stakeholders, the principals refined their product to better fit the needs of

agricultural industry. They came back this year, looking to change the outcome. “We’ve been very persistent,” said Charlie Andersen, CEO of Augean Robotics. “We pitched last year and didn’t win. Since then, we’ve assembled the world's best team, found initial customers and have been through a whirlwind of progress. We believe that we are the best play in the world in which to deploy capital into agtech robotics, and I’m glad that we won the judges over this year.” Augean Robotics walked away from the 2018 competition with a $250,000 equity investment offer, as well as access to farm acreage for pilot testing, to take its collaborative robotic platform from development to market. The seed funding was awarded by S2G Ventures (Seed 2 Growth) after competing against four other start-up companies also inventing new technology solutions to solve agriculture’s most pressing issues. Burro can follow workers; autonomously move cargo by acting as a

virtual conveyor belt from where people are working to where the crops are being collected; and captures the >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44

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