History of Michigan Processing Apple Growers Division of the Michigan Agricultural Cooperative Marketing Association
MACMA's first commodity division was the Michigan Processing Apple Growers Division organized in 1961. It was preceded by the Michigan Processing Apple Growers Marketing Cooperative, organized in 1959 to negotiate prices, grades and other terms of trade with buyers of apples for canning and freezing. When MACMA was formed, the leaders of that association decided to reorganize as a MACMA division.
The new division attracted a substantial membership during the first several months. Faced with a large crop of apples, grower-members held several membership recruitment meetings. The leadership of the new MACMA division signed up over 200 apple growers in the month of August 1961. The members represented a large percentage of the state's processing apple tonnage.
An extensive membership campaign in 1962 increased membership to 440. MACMA's apple division then represented about 50% of the processing apples in the state or approximately two million bushels. Despite the substantial membership, Michigan processors were unwilling to negotiate. Membership grew in 1963 and the marketing committee decided that if processors refused to negotiate and sign a season-long contract, then the apples would be sold on a load by load, day by day basis. This approach launched the MACMA Apple Sales Desk.
Throughout the 60s, membership continued to increase and become recognized by some processors. Others continued to purchase apples directly from growers. Every available marketing alternative was utilized to gain recognition for MACMA members including picketing of processing plants and diver sion of apples to processors that had agreed to prices.
When the Michigan Agricultural Marketing and Bargaining Act P.A. 344 was enacted in 1973, the division applied for, and received, accreditation starting with the 1975 crop. Under the new law, processors were required to negotiate in good faith with the division and to deduct marketing service fees from all growers. The division has operated under the provisions of P.A. 344 since that time. Following the U.S. Supreme Court decision on P.A. 344 in 1984, the division has effectively negotiated in behalf of members only.The division is MACMA's second largest membership division with about 750 members who grow approximately 60% of the processing apples in Michigan. Division management operates the AAMA Processing Apple Program with all of the major eastern apple producing state associations participating.
Low priced imported apple juice concentrate, which has taken a majority share of the apple juice market in the United States, challenges the welfare of division members. Unfair competition from subsidized imported juice, which has been sold to consumers without country of origin identified on the labels, some of which is transshipped from communist countries to escape duties, has caused the division to appeal to the federal government to restore equity in the market place and enable the apple industry to successfully compete for a rightful share of the market.