July 31, 2009

California Tree Fruit

Market Snapshot*

The U.S. Department of Agriculture was reporting the following prices on California tree fruit:

Peaches, yellow: Two-layer tray packs, size 44, 34-36, 40-42, mostly $10.10-11.10; 25-pound cartons loose, size 54-56, 60-64, mostly $8.10-10.10; 70-72, $7.10-8.10.

Peaches, white: Two-layer tray packs, size 44, mostly $12.10-13.10; 34-36, mostly $14.10; 40-42, $13.10; 48-50, $11.10-12.10; 25-pound cartons loose, 54-56, mostly $10.10-12.10; 60-64, mostly $12.10.

Nectarines, yellow: Two-layer tray packs, size 44, $15.10-17.10; 40-42, mostly $16.10-17.10; 48-50, mostly $16.10; 25-pound cartons loose, 54-56, mostly $16.10; 60-64, mostly $13.10-14.10; 70-72, mostly $12.10.

Nectarines, white: Two-layer tray packs, size 44, mostly $16.10; 40-42, mostly $16.10-17.10; 48-50, mostly $14.10; 25-pound cartons loose, 70-72, mostly $12.10; 54-56, mostly $13.10-14.10; 60-64, mostly $12.10.

Plums: Black amber, 28-pound cartons loose, size 30-35, mostly $16.10; 40-45, $12.10-14.10; 50-55, mostly $12.10; 60-65, mostly $10.10-12.10.

* Prices from the USDA's Fruit & Vegetable Market News, July 29.

The Shipping Scene

Because of an early-March frost, California's tree fruit crops should be down about 25% this season compared with last year, but still, ample supplies are available, and quality is good, grower-shippers say.

In fact, Wayne Brandt, president of Brandt Farms Inc. and chairman of the board of Brandt DF LLC in Reedley, said, "Quality has been exceptionally good."

The company is receiving consumer kudos for the outstanding flavor of its peaches, plums, nectarines and pluots, he said. Sizing also is good this season.

The weather in California's Central Valley is hot right now, but the tree fruit has been bred to withstand the heat, Brandt said.

Volume of nectarines has been short for the past four weeks, plum supplies are getting tight, and supplies of peaches, which have been a bit on the long side for a month, are beginning to tighten, he said.

Prices on peaches are fairly weak, but plum and nectarine prices are pretty strong, Brandt said.

Kingsburg Orchards in Kingsburg is shipping several kinds of tree fruit, but Dan Spain, vice president of sales and marketing, said its four kinds of proprietary pluot varieties called Dinosaur Eggs are its hottest items.

The category now includes the traditional mottled pattern plus red-, black- and green-colored fruit.

"We're doing outstanding with them," he said. They're even merchandised in special Dinosaur Egg nest displays in produce departments.

Dinosaur Eggs are identified by stickers with distinctive dinosaur characters, and they provide a "wow" flavor experience with a brix level above 15, he said.

Kingsburg Orchards also markets the Peacharine - a fruit that is half nectarine and half peach. It's very fragrant, travels well and has a "crunch" to it, Spain said. The company also markets Flying Saucers - flat white and yellow peaches and nectarines.

Quality is very good, but volume is down this year because of the early frost, he said. However, the frost naturally thinned the trees, resulting in larger fruit.

Wes Pak Sales Inc. in Dinuba is shipping white and yellow peaches and nectarines, red and black plums and pluots, said Jim Stewart, president and sales manager.

Pluots are becoming increasingly popular, but retailers often market them as plums, since they are two-thirds plum and one-third apricot, he said.

The frost affected overall volume and production of some tree fruit varieties, impacting some regions more than others, he said. In some cases, damage did not show up until the product started to mature during the summer, resulting in aborted fruit.

A windy spring caused some scarring, and high temperatures had an adverse effect on some fruit, causing uneven ripening or bruising. Those conditions only affected product that was about to be harvested, however. The crop usually recovers quickly.

The region came off its third heat wave of the summer this week, and temperatures should be relatively cool - in the mid-90s - this weekend, compared to a normal of about 100 degrees.

California's tree fruit industry may have an especially challenging season this year with ample competition from other commodities, like cherries, and many consumers looking for bargain prices, Stewart said.

In addition, when prices were highest early in the season, yields were low, said Gary Van Sickle, director of research and regulatory compliance for the California Tree Fruit Agreement, Reedley.

A number of major tree fruit players went out of business this year, and he estimated this year's crop of peaches, plums and nectarines at 45 million cartons compared with 59 million last year.

The California season now is at the halfway point, he said. Nectarines should continue through September, and peaches and plums may be available until early November.

(By Tom Burfield, Western correspondent for The Packer. The Packer and Red Book Credit Services are part of food360º, a division of Vance Publishing Corp., Lincolnshire, Ill.)

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