Posts Tagged “California fuel tax”

California Update: Cherries, Avocados and a Proposed Enormous Fuel Tax Hike

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IMG_5513+1Here’s a shipping forecast for California cherries, and an update on California avocado shipments.  At the same, you won’t believe the whopping diesel fuel tax increase being produced in that state.

California cherry shipments are predicted to get an early start this season with initial loadings getting underway the last week of April.   The season should run through  June.  Peak shipments are expected to occur the second, third and last week of May.  Assuming favorable weather holds, there should be strong volume leading up to Mother’s Day (May 14th) and Memorial Day (May 29th).  While good quality and volume are being forecast, no firm estimates have been released.  While California has the nation’s first domestic cherries each year, its total shipments are relatively small compared to Northwest cherry volume, which we’ll report on next week.

Avocado Shipments

Imported shipments of Mexican avocados have  declined for the first time in possibly 10 years as the season comes to an end.  Mexico shipped 2 billion pounds of avocados to the U.S. in 2016 and is projected to send 1.7 billion by the end of its season in June.  Volume from Mexico has  been increasing 12 to 15 percent a year while avocado consumption has been following a similar increase.

Now, the California avocado shipping season is well underway.  However, projected volume from the West Coast is only at about 200 million pounds — about half of the 2016 volume.  One of the biggest shipping season for avocados lies just ahead as Cinco de Mayo falls on a Friday, May 5.

California Fuel Tax

Asking state lawmakers for a more efficient plan, Western Growers is opposing California’s proposed transportation infrastructure funding package.

The funding package (Senate Bill 1) was announced in late March by California Gov. Jerry Brown, Assembly Speaker Anthony Rendon and Senate President Pro Tem Kevin de Leon, according to a news release.
“The staggering regulatory burdens and costs placed on California farmers have already placed our industry at a competitive disadvantage relative to other states and foreign countries,” Western Growers president and CEO Tom Nassif said in a news release. “These proposed fuel tax increases, including a 500% increase in the diesel sales tax, will disproportionately hit agriculture and communities dependent on our California farm economy.”
California’s current diesel fuel tax is 33 cents per gallon.

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