I think this definition of 'effect' as a verb has some extra nuance in real usage that isn't entirely captured by the dictionary definition.
Generally you'll see it used as "[actor] effects [intangible/ephemeral noun]", rather than "[actor] effects [physical object noun]". "Trees effect oranges." would generally not be considered proper English, despite meeting the dictionary definition.
Sometimes it's important to use the most(-ly) correct word, rather than merely a correct word. In both cases, "produce" would work much better: "Trees produce oranges". "It [the union] doesn't just produce cereal. It also produces Jimmy Dean breakfast bowls."
produce (verb): make or manufacture from components or raw materials.
I agree with the C- though! It's certainly not entirely wrong. And a really fun opportunity to talk about effect as a verb!