Scaroni Family of Companies · Scaroni Family Of Companies Family Business Father, Mother and 2 Sons Many 15-30 yr employees, many of which started as Farm Workers / Pickers Largest

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Scaroni Family Of Companies

● Family Business ● Father, Mother and 2 Sons ● Many 15-30 yr employees, many of which

started as Farm Workers / Pickers ● Largest NON-Association H-2A user in USA

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History

How we got here: ● Stephano and May Scaroni- Immigrated from Switzerland to

the Imperial Valley in 1909 ● Farmed 400 acres - Their Farm is the original homestead and

where Steve/Brenda Scaroni still live today ● Three Generations of Scaroni families raised on this Farm

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History

How we got here (cont.): Scaroni- 4 Generations of Agriculture Service

Gen. 1: Stephano Scaroni: Farmer, Dairyman

Gen. 2: Stanley Scaroni: Farmer

Gen. 3: Steve Scaroni: Farmer, Labor, Harvester, Cooling

Gen. 4: Matt & David Scaroni: Farmers, Labor, 4

Scaroni Family Of Companies USA ● Valley Harvesting & Packing: USA Harvesting Company ● SMD Logistics: USA Trucking, Maintenance and Logistics Company ● Fresh Harvest: Labor Company to support Valley Harvesting & Packing ● AG Data Global: Administration, IT, Safety, Food Safety Services ● Alpha Site Logistics: Imperial Valley based Sanitation Business and Portable

Bathroom Supplier to other companies

Mexico Operations ● HarvestTek De Mexico: Farming, Packing, Shipping - Romaine, Broccoli,

Cauliflower, Celery, Brussel Sprouts

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Q Q Q Q Q Q Q Q Q Q Q Q Q

Areas of Operation 2017 Central, AZ /Phoenix, Aguila Yuma, AZ Coachella, CA Imperial Valley, CA (Base) Oxnard Santa Maria, CA Sacramento, CA Salinas, CA Southeast SJV, CA Westside/Huron, CA Yreka, CA Center, CO Baja California, MEX Guanajuato, MEX 6

SJV

I rengberr.i~~ I. It. • '

l. • • \ \. , I I I

DB SPEC 1_.:.L TY F .:.~ MS

1/t, DriscollS ONLY THE FINEST BERRIES '"

BERRY GROWERS, INC. SINCE 1917

~ i ii ~)(PR.ESS

Taylor FARMS

QCIAN,lill_Sl F A R M S

Wonderful citrus™

LIMON LIRA . S I C l 1110 J

Earthbound ___ , .. _ Farm8 ORGANIC

Ready: paC foo~M

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Massive immigration enforcement of farmworkers working in Yuma Arizona.

2003 2004-2013 Forced to utilize H-2A program to serve harvest demand needs for current Yuma Arizona lettuce harvest (100 workers). Slowly grew program to about 200 people for winter harvest.

Pilot program with Driscoll's Berry (grower) in Oxnard berry harvest-100 workers. Over 4000 workers currently working in stawberry program.

Largest H-2A employer in the nation, estimated 6500 workers.

Timeline Of Fresh Harvest H-2A Usage

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Current Crops We Harvest

● Lettuce ● Romaine ● Leaf Lettuce ● Butter Lettuce ● Broccoli ● Cauliflower ● Cabbage ● Bok Choy ● Napa Cabbage ● Strawberries ● Raspberries ● Blueberries

● Cherries ● Blackberries ● Garlic ● Pears ● Cut Flowers ● Onions ● Oranges ● Lemons ● Celery ● Sweet Corn ● Bell Peppers

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1,600 , 000~-------------------------------------------------

SAW/RAW 1,4- 00 • 000 -+---------- ~L_e_ a_v_e_ A~~G~ ~f~o- r _____________________ _

1,000 , 000-t-- -------~ --- ---------- ------------------------------

0+----------~---------~---------~---------~--------~ 1986 _0 1995 _0 2000 _0 2013 _0

The Shrinking AG Labor Force

AG Labor Force Since IRCA 1986 For demonstration purposes only!

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Current Labor Dynamic and Domestic Supply

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L\ 1PLOY'.ML , r A..vu ·r RA I N J., c A U,',.1.1.,L!,'""i-11.A'I IO.!I.I, U . OO L

OFF ICE OF FOREIGN LABOR CERT IFICATION H-2A Temporary Agricultural Labor Certification Program - Selec ed Statistics, FY 20 7

Acollcatlo ns Prooossod Oe-l•m lnsbon N 2011 Q I

Total 10 .097 1,549 0e,enn1na .1lon1 - Certifie d 9 ,797 1,495 -• Denied ... 28

- Whhdrawn 156 28 P~ltlOnl 20 ,se 28.96" R&a uHM!-d 1

P~ltlO n l 200.049 2!1.0 3 Conllled ~:>aed 97.8% 98..7 '%

Top States

Top Crops 3.3%

4 .3% 3.9% 3 .5% ~ 6.0% ~ 3.2%

Q2 0 3 Q4 .... 2,890 1,4,,C,Q

4.33' 2.eo-1 1,3!37

39 •s 32

<S .. ., 70,409 65.L0.5 41,378

"8,834 62 "8 40 ,236

98..0 % 97 .1% 95 .

� Acn :b

•Go""'"' � Mcrt Ca.ralm t •Wa::nn;ll:n � Citlilam a. • Laui!i.111:t � K-antuky • ew Varlt

Mich:g:an

� Anzona • Rt!m:snrg St:lte

� Api:tc::

� Tcbte:::cc

� Frurts :in!! Vegcrt:d:le~

� Gcmor:il Farm '/ lar kars

• Melon5

• Pai::i:«~

9Nee: Po! ::tt:De.~

� Hay IU1d StnrN

Rt!rrmnna Crai:~

~NQUNatldattttC.:::l'ID IWil'lOIO.bi:tt~-~ Fwm,.c f cot"illlliloH 2Aa~ •olQ},od'JOdlvstat,::n-wua!lc»•ol 'WGd.. A~ ... 2A &pl!IClitkln ,. C!"G\Md • MIi OOt'l llllftftg Al mt docl.manlldoft :~. ~UMglinlpac;!kr,nipen, ...:nMS' CICffl.:,IIMnO'\ ro:n.il mer.t •~nl nllCMMl"'Jtol' Voll OFLC c~,~ Otkar u �&Ill• Ira! dctw.mrwlcn 30 drtS =,ol:n It. 1Ul1 m.lt (lf ,_,_

Review of Poa lti on1 c.tlfl ed FY 2017 1, of 1o1aj certffled fY20 1'n

A Mda 25,303 2..6% -Ceorgla 2'3,�21 11.7%

North Caro l"" 20,7 13 10.4%

Wasl'lirl;l OO 18,&35 9 .3%

Top10 Ca.lilorr..a 15,232 7 .6% Sta1N 0 iane 8,875 4.4%

Ke.nlooky 7.403 3 .7%

ew Ori< 6.870 3 .4% -- -WJcNg11t1 6.432 3.2%

Artzooa 6.060 3.0% North Carolina Oro,.-ers 11,947 6.0% Assoc..ati.on. Inc. IVAFtA 7.134 3.6%

Fresh Harvest. Inc. 4.623 2.3%

Zirk le Frui t Com pa ny 2.970 1.5% Top10 Elkhorn Packing Co, ll C 2.653 L3 % Emp loye,f'I

S1ami[1 Ag. Service s LLC. 2.082 1.0%

A 8. R Harvesting , nc. 1.999 1.0% -Foothi ll Packing, Inc. 1.854 0.9%

Peri & Sons Famts . Inc. 1.739 0.9% Virg inia Agricultura l 1.602 0.8% Grower s Assoc .• Inc. Berries ' 2 ,946 1.0% - - - -Apples . 12,697 6.3% Tobacx:o~ 12,&34 6.3%

Frui1s an d Vegetables 12,�65 6.2% Top 10 Ctop lll Gene ral Fa rm Walkers 12,037 6 .0%

Occupatio n• Metais a 8.535 4 .3%

Com ' 7.818 3.9%

Peppers 11 6.903 3 .5%

S·Neet Pota :oes 6.662 3.3% -Hay a nd Straw• 6.411 3.2%

~Ses?-c .ncl.(lm -,-ry Crops a B�nl•. BYdo::effl• . 81.0:i � mas, Cra.'i:a!~~ffla,, , andSTW.Mf'tGL •Ai,:Kii CallQC)f)' ndua:lt. Pr.mr, Oopt,011 A;cllt Dro~and A:ir,IH. ~ot1.:x:oC.1ago,vh:::h,dHPr.mr,Crq:6a l 81r ,11,-, • .v.l •C....r~ R. o Cir.I. sw~.ai.:ISUlp~To:i.ia». alo'e..orwC.19QOrvn:\dHPunri,Qq:s.01!Carolou~ Mtlor-., anllW~

:~~~~~~~o~C:~an::::.~~~.Jaa.aoo F\lppan..~9Wf,.anc:IS-1Po~ '--ar•~S1ra.ea 1~1!dudos. Pr.ma-,~a,A.hlillancl~..i,..!C s lfil,. �

LJ "EMPLOYM ENT A ;n TRACNlNG ADMIN1STRA 'l1 ON , U.S. [X) L

OFFICE OF FORE IGN LABOR CERTIFICATION H-2A Tempora ry Ag ricult ura l Labor Ce rtificat ion Progra m - Se lected Stat istics , FY 201 6

Applica ti ons Rece ived ' "' FY

FY 2016 01 02 03 04 Chang,o FY15

8,801 l ,7SS 3,86 1 2~145 1,040 16.4 %

Aoolica tions Processed Determlnadon FY 2018 01 To ta l 8.6114 1,146 OetermlnaUone - Certifie d 8.297 1,064

- De,n led 188 <3

-W ithdrawn 199 39

Poa ltlons 172 ,654 24 .563 Reaueated Pos.ltlons 165 .74 11 23.ne Certlffecl

ProCH 9e d 95 .0%. 99 .3% Tlmelv'

Top States

Top Crops

6%

02 03 04

3,649 2.577 1,312

3,553 2,468 1.212

54 <9 42

42 60 58

52 ,2 6 61 ,373 34 ,502

50,887

90.5 %

� B&rrtea

58 ,753 .32,:322

96 .6-% 98 . 1%

� FIOri:!a

� North Cfll'Olina

• GEto-gia

•Wash ington

� C afitcwnia

� U:1 . .-1$ at1a

� Kcrrr. ucky

• e-NVcrk

Alrl :t:CS'lli

� SOL~ C8r Oir"l8:

• Remaining Stales

� Hay and S:raw

• ~ ptes � Tot:6oeo

• Gfine,at Farm-",o!Mi, � Ml!fOr~

� S..-"f!et P~ atoes

� Le~ ce

NLn ery & Gree rthcuse .

� Cerr'I

Al3fflaininp Cro t!I · =>kl.za l'IQIXl lh aJ ap:iatlcr.cS l'OOCll"V<c-0 ""fl no, ILW:.'I poim 1d ds.:::.bsu• e d:na .as t'U d,a,r.a: s,ec en~ l!l::Lc cs DC utt cmao ~plc:itton r. • " arco.!'111 O'I ao,-P aMI H 2A ~.cal.ens. rmot,, oll JO u·,,s tel 0111 1no uan cau, al noad.. A o:::n-~ H--2A 11.�plc.Mlon .s dmnod ,a.s O!'III cam:iinr-G all tho lb:u mom ~o n (�.g •• h:t.al~ ln~ocion 'll PDrt, IIIC.'U .-i: 1 111p<lf() r,~ h::r lt' a OFlC C o!t ~ O"'lca"" 10 IZUO a 1m al l!(fia nnr...do!'l 30 Colp b Ok>'ll l 'MI 5 111ft tt.nD a! l"CIC!d.

D&Jtt as of ~t1ter?1tirtv 30,. 2016.. A1l ~~res tua rau-~ 11 ar'ld r'JCf autJ;~ed.

Rev iew of Poattiona Cen il led FY 2018 t'% Of tOI .. c.tis.d FY 2011 1

Florida 22 ,828 13.8%

orthCarol na 19 ,786 11.9 %

Georgia 17,39 2 10.5%

Was h ingto 13 ,689 8 .3 ~/o ---Top 10 Caldorn ia 11,106 6.7% Stat e • LO.Jisiana 8,301 5.0%

Ke nlud<.y 6,779 4. 1%

ewYor"k. 5,522 3 .3 % -Ar1zona 5,391 3.3 %

South Carolina 3,896 2 .4 % Nor1h Carolrna Grow ers 12 ,16 1 7 .3 %, Association !NOG A \ W ash ington Farm Labor 9,455 5 .7 % Ass n.. WAFLA F·es"I Ha.-vost, 1;c. 3,8 19 2 .3 %

Rodrigo Gutie rrez-Tapia 3. 162 1.9% Top 10 -Employen Zi.rkl8 Frurt Compa:,y 2,596 1.6°/o

Elkhorn Pack Company 2,304 1.4 %

Po~i & So"'ls Fa:ms, Inc. 2,003 1.2 % Virginia A-gricuttu rat Growers 1,642 1.0°/o ,_¥sn.. VAGA l A and A Hat vesling , Inc.. 1,638 1.0%

Atewelt Concrele, Inc. 1,343 0 .8%

8eHl8S 3 15,3 35 9 .3 %

Hay a.i;ct Straw"' 10,066 6.1%

App les ' 9,764 5.9%

Tobacco 6 9,269 5.6% Top 10

General Farmworker 8,7 17 5 .3% Cropa/ Occupat lone elons 7 8,5 13 5.1% ,_

Sweet Potatoes 7,426 4 .5 %

LeUuce 8 7.060 4 .3%

.Jrsery and G reenhO so 6,008 3 .6% W Ol'ker.s Com' 5,893 3 .6%

lMH-C..U,:,,, -.:t..-,.-t>,.,,....,Crur;:aditao,_ IH•:,..-.,.,.,__.,. t-.a;,ta,,o-MLI ~--~~~-":'.:c,f ,•= ~°:...:."'0r":..:!:~~- ... ..i o,-. --..,.,)~~ -.:1.-~~P•,.a,yCWiaolAM..a.-ct, ~ 0.0.°" ~So,tng, ~-u.-.ci•u-. • .,... .. CMioor,,.ne1_...ct1,,-p,n-,.o.:,.-uc ... ~.........,~w ...... l'NIOl'II •1..tt...::.~t-eLdlNICllllit_.f't __,,C,cu:ouilbi:-.,~1111-dAo.....,. •ea,,,c.,~ "'llfj--ill-fl•._,yCru;:aolOotft~~cw,,.

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H-2A Key Points

● No other legal vehicle to source Agricultural workers ○ Don’t expect Washington DC to implement something better!

● “No one is raising their children to be Farmworkers in the USA”

● Bureaucratically burdensome ● Operationally COMPLEX ● Many agencies and groups scrutinize our practices and care of

the H-2A worker ● Penalty for noncompliance are multi-million dollar fines and

disbarment 13

-EDD -I ii 1 1• o (

-EDD -Id 1 t • Cl f

2007-2012 2012-2015

-EDD t ... ,----;:--::--f

2016

US IMMIGRATION AND CUSTOMS ENFORCEMENT

US CONSULATE (VISA SYSTEM)

UNITED FARM WORKERS

AGRICULTURAL LABOR RELATIONS BOARD

CALIFORNIA RURAL ASSISTANCE

STATE OF CALIFORNIA (Gov. BROWN)

DEPARTMENT OF LABOR

EMPLOYMENT DEVELOPMENT DEPARMENT

Agencies and Organizations “Involved” And scrutinizing our use of a Legal H-2A System

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Successful H-2A Execution Successful H-2A

Execution

Constant social media interaction with Employees...Reinforcing the POSITIVE and the benefits of being able to be part of Fresh Harvest H-2A

30,000 Facebook Followers

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In-house recruitment /em

ployee care

Focusonproductivity /costperunit

Hands

on,passionate, focused leadership

Commit ted to legal com

pliance

Recruitment

1. International 2. Mexico national recruitment team 3. Recruitment offices throughout Mexico

a. Expanded into Guatemala in 2016 4. Recruitment efforts led by Company Ownership on-site in

Mexico and Guatemala areas 5. Simulated work / skills testing 6. Rigorous interview process of recruits 7. Medical / physical examinations 8. NEW for 2017: 2 Step Program

a. Work in Mexico operations first; come to USA if strong display of work ethic and attendance 16

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Employee Care and Giving Back

Brenda… ● CASA Board Member Imperial Valley ● Non Profit Drug & Alcohol Rehab

Center Board Member

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H-2A Aguilas (Eagles) Leadership Development Training Leadership and Management Development Training

2016-17 Class # 1 24 Eagles 2017-18 Class # 2 36 Eagles

● Leadership ● Conflict Management ● Management Skills ● California Driver's License

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Chaplaincy Program

● Employee Care ( Personal issues)

● Crisis Counseling

● Led by Dr. Paul Grendon ○ Team of 5 Chaplains in various area we

operate

● Free Service to all Scaroni Employee’s 21

H2a Program Costs

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Does Size and Scope drive Efficiency

● Depends ● Housing ● Transportation ● Overhead

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Weekly Hrs

Starting Date

Ending Date

Fresno

120

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5/1/2018

6/15/2018 --~

7.00

29,400

H-2A Costs ( Fixed Costs)

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in Hotel/Apts/Other

Total Workers

Inspection Weeks

Working Weeks

Total Weeks Needed

Cost Per Room

Rooms

Total Cost Per Week

120.00

120.00

$400.00

30.00

$12,000.00

3.00

7.00

10 .00

H-2A Costs ( Fixed Costs)

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res 0

Cost Dur ing Work $ 84 ,000.00

Cost Per Day $ 10.00 Additiona I Cost

3 Weeks Inspection/Setup/ Teair down $ 36 ,000.00

Cost Per Day 4 .. 29 I Final Cost Per Day $ 14.29 I

H-2A Costs ( Fixed Costs)

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Set Up/Tear Down Housing Housing Sub Total

In/Outbound Mex-USA-Mex H2A Visas Meals (During Tijuana) Hotel Tijuana (Appointment C

Staff Internal Wages Consulate Travel O ice Staff

Meals duri;J e Contract

Laund~ penses

L gal Fees

Litigation Reserve

Breakdown

$ 70.00 Per Worker / $196 per H2A per each processing

/ $13 DIis Per Day per worker (4 Days) st)

Total Costs: Service Fee @7.50% Final Cost To Client:

Cost Per Worker Total H2A Program Hours

Total of Contracted H2A hour # of locations

$ 252 ,481.60 $ 252,481 .60 $ 18,936.12 $ 18,936.12 $ 271,417 .72 $ 271,417 .72

$ 2,261.81 $ 2,261 .81

29,400 29,400 1

Fixed Cost Breakdown

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f ;ix Cost By Hrs Worked Variable Cost By Hr All Cost Est Weekly/Hr/Wk Cost Per Hr Cost Per Hr Total All / Hour

AEWR 2018 $13.18 35 $9.23 $18.78 $28.01 40 $8.08 $18.78 $26.86

Mark Up % 45 $7.18 $18.78 $25.96 50 $6.46 $18.78 $25.24 55 $5.87 $18.78 $24.66 60 $5.39 $18.78 $24.17

Fixed Cost Breakdown

Depends

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H-2A Costs ( FLC Mark UP) Normal FLC Mark Up What's Covered ? Taxes Workers Comp Safety Human Resources …..

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H-2A Costs ( FLC Mark UP) pg. 2 ● Supervision ● Overhead of Run a Business ● Fair Profit ● And…. ● Transportation!! ○ Buses and Vans

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H-2A Costs ( FLC Mark UP) pg. 3

● 75 Buses ● 50 Vans ○ Off Season non utilization of assets

● Driver proficiency and proper licenses and Certification ○ Off season Retention of Drivers

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H-2A Challenges Going Forward

● HOUSING “You H-2A providers better provide good, safe housing!! BUT, not in my Backyard!!”

● COST “We compete in a GLOBAL economy”

● California OVER Regulation (Labor & Business) “Anti-Employer” ACTIVISM Employee Transportation Portal to Portal..

Cost driver 30-40% of Todays Direct Labor Cost 34

Meyers King City Housing

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Meyers King City Housing

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Bottom Line On H-2A

There is NO other option to get a legal workforce to pick your crops correctly

and on time!

● “No one is raising their children to be Farmworkers in the USA”

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Contact Information

● Steve Scaroni ○ [email protected] ○ (760) 427-4000

● Matt Scaroni ○ [email protected] ○ (760) 427-3000

● David Scaroni ○ [email protected] ○ (760) 427-5000

● Main Office ○ [email protected] ○ (760) 352-2200

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