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Season 1 episode 3: Garlic Breath

GENERIC INFORMATION
● 50 billion pounds of garlic every year - essential in many cuisines → it has gotten a “sexy
appeal” become exotic - essential to many cuisines
○ Spice of life
● Impact of the Food Network in the 1990s revolutionized the commercial food market →
such as emphasizing different spices with home cooks
● It generates around $40 billion of global revenue every year
● Competitive market reflects the ability of the consumers
● 60% of the garlic consumed in the U.S is pre-peeled

CHINA
● Most of the garlic in the world comes from one place - China
○ Grows 90% of the worlds production of garlic
○ Different variations - black garlic, traditional garlic, purple = more spicy
■ In different forms of product - powder, beverage, whole
○ Majority of it is taken to the U.S
● Shandong agricultural province
○ The communist leaders makes negotiation with richer nations and it does well -
but as a farmer I went through hard times but now that I am retired I am living a
“good life”
● Dumping - selling a product unfairly low price undercutting the domestic goods
○ Those found dumpin need to pay a steep tax

[Northern] Dixon, New Mexico - Stanley Crawford


● “Growing your own food is revolutionary act” “free of social, industrial, and commercial
systems that trap lifes” - Stanley Crawford
● 1.5 acre that sells primarily to farmers - began in 1970s when garlic was coming into the
public eye
● Began with growing a garden - currently focuses on shallots and garlic
● 2014 got a visit from Ted Hume - to go after Christopher Ranch
● Received in 2016 new technology from China as a thank you

Kristin and Avrem Davenport


● Small organic crop with an emphasis on garlic production
● Trusted Stanley
○ Their politics more liberal, Bernie Sanders individuals
● You need to have money to make money
● Stanley communicated to them that he received a cash incentive and tools essential for
production
○ But the operative word was “if”
● Research on Ted and Harmoni → learned a lot of things ex: that Hume’s clients were
direct competitors of Harmoni
○ Believed there was more to the story
● They believed that it was a pay-to-play situation → asked for it to be in writing
● Believed to have $2.7 million with an expectation of a payoff BUT Crawford says their
expectations got ahead of them
○ Received a gift of $5,000 for their hardship
● Demanded $25,000 because they felt as though they were being ignored
○ It was never about helping them it was about the direct competitors in China
● Harmoni called the Davenports to associate with them → sent their own letter therefore
they switched sides
● Debated that this family was corrupted by cash because they now have a standing
relationship with Harmoni
○ They didn’t have the resources to spend time on filing the lawsuit therefore they
were getting paid by hour to state

Ted Hume:
● Hume International trade law attorney
● Part of Hume was to communicate that two major Chinese garlic growing companies
was going to expand and in order to research them he needed an American company to
sign on to his cause.
● Address Harmoni by finding a farmer to file an administrative review process
○ In CA no one wanted to get involved because at least each ranch had one
representative of FGPA with association with Christopher Ranch
○ Would receive a check for $50,000
● Equates it to economic justice
● In November 2015 they filed the official investigative document → Harmoni sent a
summons to both farmers
● was not lured by the money he said it could reap the benefits

Harmoni International Inc - investigated by Hume


● 8.5 million dollars monthly on average - $100 million
● Not acting alone to create an unleveled system
○ Acting as an exporter and importer
○ They are the only company avoided dumping duties while all other garlic
companies were faced with anti-dumping tariffs
● Biggest buyer Christopher Ranch
● Launched a RICO lawsuit: “The Racketeer Influenced and Corrupt Organizations Act,
commonly referred to as the RICO Act or simply RICO, is a United States federal law
that provides for extended criminal penalties and a civil cause of action for acts
performed as part of an ongoing criminal organization”
○ https://en.wikipedia.org/wiki/Racketeer_Influenced_and_Corrupt_Organizations_
Act
○ Claimed 14 individuals and 2 corporations were planning to take down Harmoni
company
FGPA - Fresh Garlics Producers Associations
● Was made to stand up against the growing import of Chinese garlic - supposed to be the
voice of the local farmers
● Christopher Ranch largest distributor and marketer of garlic in the world -
○ Through investigation they have that GFPA was actually controlled and is
headed by Christopher Ranch
● Founders of Gilroy Garlic Festival in California - Christopher Ranch
● Was using FGPA for a loop hole in the system:
○ department of commerce reviews foreign companies reviews dumping in order to
review them garlic companies choose who to examine
○ The company that constantly avoided review was Harmoni → associated with
Christopher Ranch therefore they transported it through the U.S
■ It was a commercial loophole to create a self-regulating system without
checks and balances
■ Equated Harmonis association with Christopher Ranch as a cartel
● Hurt Chinese companies who were faced to buy large tariffs for dumping

Mingju XU - garlic importer, processor, wholesale


● Name was also listed on the RICO lawsuit
● From Shandong province China - where many individuals rely on garlic to make a living
● Strapped a camera to view the prison garlic supply chain in China that was illegal to sell
with in China but perfectly legal to sell to the US
● Peeled for 16-17 hours - it was not a choice each prisoner needed to finish 20 Kilos in a
day
○ Use their mouth to peel garlic from the root because they lose their nails after
working for a long time
● Followed the products to a packaging warehouse found that HOI inc. name was labeled
on the boxes and the Golden Lion “which was a staple of Christopher Ranch”
● Majority of people in China know the garlic is peeled by prisoners in the U.S it is a secret
● Alerted U.S border patrol and customs and filed a lawsuit
○ Responded with RICO
● Was unaware of Hume, Stanley, and Davenport
● Unable to return to China do to hsi exposure of the problem/

Jack Bai
● Man accused of giving Stanley the $50, 000
● His company was an export of garlic to the US but Harmoni destroyed the market and
lost it
● Irony in FGPA initiated the anti-dumping
● Throw away the RICO case and lead to them having to pay them money for their
attorney fees

RICO
● Stated that it was a conspiracy to tackle the company