August 22, 2008

New York Apples

Market Snapshot*

The U.S. Department of Agriculture was reporting the following prices on U.S. Extra Fancy Grade apples from New York's Hudson Valley:

Cell packs, size 100s, $30-32; 12 3-pound film bags, 2½-inch minimum, $24.

* Prices from the USDA's Fruit & Vegetable Market News, Aug. 20.

The Shipping Scene

Rain and hail pelted much of New York's apple-growing region this summer resulting in a crop that will be nearly 9 million bushels less than last year's. But what the crop may lack in quantity, it should more than make up for in quality, grower-shippers say.

Forrence Orchards Inc. in Peru started shipping its first apples of the season - paula reds - late last week, said co-owner Peter Forrence.

Quality has been good, size has been excellent, and the market has been reasonably strong with "perfectly acceptable prices," he said.

Forrence was eagerly awaiting the company's main macintosh crop the first week of September, which he also expected would be of good quality. Courtland and Honeycrisp varieties will round out the company's main varieties.

The harvest should last four to six weeks, with most of the apples going directly into storage as they are picked.

The apple crop endured up to three weeks of almost constant rain, which often was accompanied by hail.

The full extent of any damage may not be manifest until March or April, when it can be determined how well the apples are holding up under storage conditions, Forrence said.

Weather conditions have improved recently, with sunny skies and temperatures in the 70s and 80s.

Sun Orchard Fruit Co. in Burt just started its apple harvest with the jonamac variety, said Tim Mansfield, director of sales and marketing. The company also will pick gingergold, Honeycrisp, galas and macintosh varieties.

All should be good-quality fruit with good sizes, he said.

Mansfield, who previously worked in Washington state, said the shorter growing season in New York tends to result in smaller fruit for some varieties, which lends itself well to bag business, which requires size 100s and smaller.

Sun Orchard Fruit Co. ships 40-pound cartons as well as 3- and 5-pound bags.

Most companies were affected by the rain this summer, but Mansfield said Sun Orchard Fruit Co. was better off than most because the company's major growers are in Western New York, which escaped most of the hail damage.

Overall, Mansfield said, growing conditions this year were better than last year's hot, dry season.

Lynn-Ette & Sons Inc. in Kent was hard hit by the rain and hail, said Rob Roberts, secretary-treasurer.

The company prides itself on its large, premium-quality apples that are the result of long hours of hand thinning and hand pruning.

Because of hail damage, most of this year's crop won't meet the criteria for fresh-pack apples.

"Right now, we're dumping our early varieties on dump trailers for juice," Roberts said.

Only about 30% of the firm's crop will be eligible for fresh sales this year, he said.

The company lost its high-dollar returns on fresh gala, Honeycrisp and red delicious apples that are grown in high-density trellis blocks for high-end fresh pack, he said.

The shortages should result in strong prices, though.

"The outlook is good for all fresh fruit this year because in the area that we're in, the majority of the people are hurting," he said. "There's going to be a limited amount of fresh fruit."

Indeed, the state's growers were expected to ship 22.5 million bushels this year, down from 31 million last year, said Peter Gregg, spokesman for the Fishers-based New York Apple Association Inc.

The apple-growing regions received a good blend of rain and sunshine, he said, "so the fruit that's on the tree right now is exceptional."

The macintosh is the state's main variety, but growers commercially produce about 20 varieties in all, including empire, crispin, jonagold, courtland and gala apples.

The New York Apple Association plans "heavy promotions" this fall, including radio, television, and print advertising in high-end magazines, Gregg said.

New signage will be available for retailers, and the association will push a buy-local campaign and try to capitalize on the buy-local movement.

In-store demos have proven especially effective, so 1,000 demos will be held across the country with emphasis on the Northeast, he said.

"We have a proximity to 30 million to 40 million consumers right here in the Northeast," Gregg said.

(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.)