USDA Directs Continuance Referendum for California Kiwifruit Marketing Order

The U.S. Department of Agriculture's Agricultural Marketing Service (AMS) has directed a critical referendum for California kiwifruit growers, beginning May 18 and concluding June 8, 2026. This vote will determine whether the federal marketing order that regulates the handling of kiwifruit grown in California for the fresh market will continue. This process represents a standard six-year review designed to ensure that agricultural marketing programs maintain industry support and effectively serve their intended purpose for an informed audience.

Understanding Federal Marketing Orders

Federal marketing orders, authorized by the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601-674), are industry-designed, government-enforced programs that allow producers of specific commodities to collectively address marketing challenges. For California kiwifruit, this order (7 CFR Part 920) focuses on maintaining quality standards, fostering market stability, and potentially funding research or promotion initiatives. These orders are not unilaterally imposed by the government but are typically initiated and supported by the producers themselves. The Act's intent is to provide orderly marketing conditions and fair prices for agricultural producers by preventing chaotic market conditions. Periodic referenda, such as this one, are a built-in mechanism to assess ongoing grower sentiment and ensure these programs remain relevant and beneficial to the industry they serve.

The California Kiwifruit Referendum Specifics

This particular referendum specifically targets California kiwifruit growers who produced kiwifruit for the fresh market within the order's production area between August 1, 2024, and July 31, 2025. This eligibility criterion is precise, ensuring that only those directly impacted by the fresh market regulations have a voice in the order's future. Ballots will be distributed by U.S. mail or electronically and must be delivered to the AMS by 11:59 p.m. Eastern Time on June 8, 2026, to be counted. The AMS has estimated approximately 142 California kiwifruit growers will participate, with each ballot taking about 20 minutes to complete. Participation is voluntary. Kathie Notoro and Abigail Maharaj, both with the USDA AMS West Region Branch, have been designated as the referendum agents responsible for conducting this process.

Potential Outcomes and USDA's Deliberation

The voting threshold for continuance requires support from at least 50 percent of the growers who cast ballots, representing at least 50 percent of the total kiwifruit volume voted in the referendum. If these thresholds are not met, the USDA would consider termination of the marketing order. However, the Federal Register notice clarifies that the USDA's decision will not rest solely on these percentages. The agency will also thoroughly evaluate "all other relevant information concerning the operation of the Order and relative benefits and costs to growers, handlers, and consumers" before making a final determination. This broader assessment highlights the USDA's role in balancing industry preferences with overall market health and consumer interests. It means that even if the vote fails the 50 percent threshold, the order might still continue if the USDA finds sufficient overall benefits. Conversely, strong grower support may not guarantee continuance if the USDA identifies significant disadvantages to other stakeholders or the broader market.

Implications for the Industry

The outcome of this referendum carries significant weight for the California kiwifruit industry. A vote to continue the marketing order would reinforce the current structure, which aims to ensure quality, manage supply, and promote orderly marketing. This could mean continued stability for growers through consistent market access for high-quality produce, predictable quality for consumers, and a structured environment for handlers to operate within. Conversely, a vote against continuance, potentially leading to termination, would dissolve the regulatory framework. This dissolution would shift greater responsibility to individual growers and handlers for managing their market strategies, quality control, and promotional efforts. Such a shift could introduce new challenges related to quality consistency and market access, potentially impacting the collective branding and competitiveness of California kiwifruit. However, some stakeholders might argue that termination could also foster greater innovation or individual autonomy by removing collective obligations. The decision process underscores the cooperative federal-private partnership model inherent in agricultural marketing orders, where industry input is balanced with federal oversight to achieve market efficiency and fairness.