The Modesto Bee from Modesto, California • 53

The Modesto Bee Agribusiness Sunday January 5 1986 Business Section Canning fruit brightens dim 1 986 outlook Sunday Focus: Almonds ketplace where foreign competitors have undercut US prices and walked away with bigger and bigger portions of the world export pie While the outlook for agriculture in varies from one commodity to another experts can find few signs of substantial overall improvement in 1986 see a lot more of the said Bill Gisvold an agriculture accountant with Arthur Andersen Co will continue to be a shakeout still got massive surpluses in a lot of commodities and the export markets just At Bank of America agriculture economist Fred Cannon is perhaps a bit more optimistic but not by much eighty-six I think by any means will be a banner he said could be the first year in the last five where some improvement We might start to see the light at the end of the To hear Cannon elaborate however leads one to think that the sight of light may simply be a sign that an ailing agriculture industry get sicker next year the permanently planted crops supply and demand appear to be getting back into Cannon said referring to nut and fruit crops Field crops still are in trouble and most experts seem to believe there will be no significant improvement on that front before 1987 They also see little or no letup See Page F-2 OUTLOOK By ANN CONY McClatchy News Service SACRAMENTO Unlike most farmers Jim Culbertson of Courtland can look forward to the year with a bit of relish Culbertson grows pears and the shakeout in his business has come and gone At least for the time being In the late 1970s and early 1980s pear and peach growers took orchards out of production which reduced surpluses and shored up prices Now supply is roughly in step with demand Growers this year received a record $206 a ton for Bartlett pears to other agricultural commodities say pears are in better shape than a lot of said Culbertson In fact the canning fruits look pretty good for said Henry Voss president of the California Farm Bureau Federation But those commodities represent bright spots in an otherwise dim outlook that calls for a continued shakeout in California agriculture next year Cotton and rice for example are frequently cited as major California commodities that are likely to continue in a downward spiral Since 1980 most commodity prices have fallen precipitously depressing agricultural land values and turning the screws on farmers with heavy debt loads Huge surpluses combined with government price supports have made it increasingly difficult for American farmers to sell their crops in the international mar Debbie NodaThe Bee Almond grower Don Beachler walks with his dog Muffin through field he has prepared for planting almond trees a confident grower Others are removing trees Don Beachler is planting more Communication is key for exporters going to have to get along as best they can Beachler said he received 77 to 80 cents a pound for his almonds in 1984 and has no idea of what he will get for his 1985 crop Light-heartedly he estimated that if he have to count the costs of land equipment and labor which includes three year-round workers probably be breaking even But that the case he said realistically price is going to have to go to $110 a pound or even $125 a pound for almonds to be profitable he said According to Easter the last good price for almonds was in 1980 when growers received $144 a pound was in an average crop year and there was a good market for the he said By contrast growers received an average of 744 cents a pound in 1984 Easter said that it was during 1980 and 1981 that the dollar began to strengthen and have an effect on the almond market In 1984 California growers recorded their largest crop in history 587 million pounds The 1985 crop appears to be the second largest with estimates of 450 million to 460 million pounds Easter said The California Almond Growers Exchange official said he expects the dollar to weaken in the coming years and that an expanded market should play an important roll in the future of the almond industry- big increase seen in the last two years has involved purchases by the Soviet Union That has helped to strengthen the he said think this year the Soviet Union can take in excess of 10 percent of the almonds produced in California and might even take as much as 14 Easter doesn't necessarily believe that percentage will increase in the coming years but suggested that it could hold at 10 percent As for the 1984 crop Easter said some growers may have covered their costs but See Page F-2 ALMONDS By STEPHEN FERRIS Bee staff writer Almond grower Don Beachler is bucking the trend At a time when other growers are pulling out their trees because of falling almond prices Beachler is busy planting 56 acres of new almond trees believe prices are going to come back said Beachler optimistically all if things stay as they are a lot of growers are going to go Steve Easter vice president for member and government relations at the California Almond Growers Exchange estimates that 10000 to 15000 acres of almond trees are being pulled statewide But he added many are older trees in low-producing orchards and probably will be replaced by younger trees Beachler looking for an immediate turn-around in prices He thinks that could be as far off as four or five years or about the time his trees start coming into production Meanwhile he thinks growers are io Saturday of Nakano advised those attending the US International Food Show at the Los Angeles Convention Center Nakano also told his audience to avoid trying to matters of substance at the first He said the Japanese will act quite formal until they fully understand the American position then they will reach a consensus about whether to make a deal rely more on personal relationships than just on he said The 12 countries of the Pacific Rim have surpassed Europe as the chief export markets for American farm products said Philip Letarte marketing specialist for the US Department of Foreign Agriculture Service He outlined a number of USDA services designed to help American crop brokers sell abroad today requires long-term commitment by farmers traders and the Letarte said But the effort will be worthwhile if prosperity grows in the Pacific Rim he said The Associated Press LOS ANGELES American agribusiness companies that hope to increase exports first must improve communications with their foreign buyers speakers at a seminar stressed all the difficulties we encounter the communications aspect is so important" said Ancil Scull export manager for Safeway Stores we Americans are so busy and so eager we neglect to communicate with those people we are trying to Good communications can produce not only increased business but increased understanding among people of different cultures Scull said we learn to integrate what doing with what doing I like to think not only restoring balance of trade a little building bridges to he said Good relationships are vital in dealing with Japanese businessmen said Niroshi Nakano deputy director general of the Japan External Trade Organization every opportunity for person-to-person contact instead Zacky Farms acquires poultry processor Manuel DiasThe Bee Delta National Bank teller Pat Roe likes working Saturdays are she said everything is fast paced and in banking people often lose their identity I hope we never get rid of tellers After all they know their customers by Marian Sandler of Oakland president of World Savings and Loan Association said that banking institution regards itself as customer service- and retail business-oriented base our hours on when our customer want to see she said offices are 9 am to 4:30 pm Monday through Thursday 9 am to 6 pm Friday and 9 am to 2 pm Saturdays World has no automatic tellers and Sandler said it until it is clear the customers want them The bank operates two branches in Modesto at 10th an 1 streets and 2509 McHenry Ave The latter has a driveup window Sandler said association branches are open because many of its customers are couples and Saturday is the only time they can transact business together I think the emphasis on customers is she said World gives its employees time off to vote on election day but still stays open while other lending institutions close she said And we think hours are important also are open some holidays such as good Friday We give our people time off to go to services but we close the Besides Delta and World the driveup window at Great Valley Bank 1925 Yosemite Blvd is open from 9 am to noon By STEPHEN FERRIS Bee staff writer Adam Hart 77 of Modesto emerged from Delta National branch at 1901 McHenry Ave Saturday after making a deposit like bring able to bank on aid the 77-vear-old retiree who has been doing business with at Delta since 1983 lot of times my Social Security check comes in on Friday or at other times I want to go somewhere and I can go to my bank on a he said Hart the only customer transacting business at Delta Several tellers were busy with customers who either had gone into the bank or used the driveup window Sometimes things happen that prevent people from banking during the week or they suddenly find they need money on a Saturday said Delta vault teller Kay Bourassa whose bank is one of only a few lending institutions in the Modesto area open Saturdays of our Saturday customers are people who for one reason or another or want to do business through our automatic teller or at our driveup window We re open for said the operation's officer Denia Young Delta in fact is open 10 am to 4 pm Monday through Thursday and until 6 pm on Fridays The automatic teller operates around the clock while driveup window hours are 7:30 am to 6 pm Monday through Friday The bank operates out of Manteca with branches in Modesto Riverbank and Denair Young said hanking has be employees at the Dinuba plant bringing to more than 1600 the number of people working for Zacky in the Fresno County area At one time Poppy operated a chicken and turkey hatchery and farm near Dinuba but those operations were sold to another firm more than a year ago said See Page F-2 CHICKEN McClatchy News Service FRESNO Zacky Farms the second-largest poultry supplier in California with extensive fryer-production facilities in Fresno has acquired Poppy Foods of Di-nuba for an undisclosed price Poppy a longtime processor of poultry produces a wide variety of products including turkey ham hot dogs bologna and smoked meats With the purchase of the 90000-square-foot plan! Zacky has grown beyond a poultry company to a full-scale food-processing firm "The Poppy acquisition is the final tie-in to Zacky becoming a complete food company" said Duane Herrick Zacky complex manager for the Fresno area The Poppy operation has an annual payroll larger than $2 million There are more than 150 panied by their parents are introduced to banking Young said also get pre-teenagers and young teenagers who with their parents help are setting up accounts with us One of the advantages of a Saturday is that we have time to talk to them and go through the various Young believes Saturday hours represent just the beginning of changes within the banking industry hours used to be standard You banked at the convenience of your bank" she said bankers especially the small institutions are more aware of the need for customer Young who started in banking in 1968 as a part-time teller for Wells Fargo Bank in Patterson said the big banks may want to get rid of tellers and replace them with machines But tellers come so competitive she thinks it is important for a small independent institution such as Delta to offer a little more in the way of services if it is to attract customers One such service she said is to have tellers on duty who can work one on one with customers Both teller Pat Roe and customer Hart agreed people want to deal with a said Roe like dealing with tellers because they get to know Hart said Delta rotates its Saturday shifts among employees so no one has to work every Saturday However Linda Downey who normally works at the Riverbank branch said she requested to work this particular Saturday because she liked earning the extra money Besides its regular customers Delta frequently is visited on Saturdays by children who accom Inside MECCA EXISTS in Wisconsin town for the dairy cow Page F-2 WAR ON BUGS in 1985 centered on killer bees Page F-2.