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Sat, 14 Sep 2002 09:01:33 -0400 |
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Dee Lusby said:
> And presumedly there is a 49% to 51 % ratio for
> the cooperative to maintin, does this mean that Sioux will
> be buying less Argentina honey in the future or will they
> stop being a cooperative and just become and international
> packer of some sizing? What are the possibilities for this?
The "49% to 51% ratio" is a part of Capper-Volstead, but my
understanding is that this clause may not restrict the actions
of Sioux Honey in regard to ratios of honey processed, packed,
and sold in the least.
What the act says is written in plain English:
"The association shall not deal in the products
of nonmembers to an amount greater in value
than such as are handled by it for members."
But Sioux Honey is a valid producer co-op, and so is FACAP.
In 1962, the US Supreme Court ruled in "Sunkist v. Winckler
& Smith" that two or more cooperatives may join forces, acting
as one larger co-op, and still have Capper-Volstead protection.
Under NAFTA, nationality gets blurred in regard to treatment
of entities located in each of the nations who "sign up".
So, membership in FACAP may now be equivalent to
membership in Sioux Honey!
The dead give-away would be if the relationship was
described to the USDA (who has some regulatory
authority over cop-ops) as a "federation" or
"marketing agency in common".
Interesting, eh?
I told you it was a smooth move.
jim
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