Market Update

Market Snapshot*

The U.S. Department of Agriculture was reporting the following prices on tray packs of Extra Fancy Grade (fine appearance) apples from the Yakima Valley and Wenatchee districts of Washington:

Red delicious: Size 72s, $20; 88s, $16-18; 100s, $18-20; 125s, $16-18.

Golden delicious: Size 72s, $20; 88s, $20; 100s, $18; 125s, mostly $16.

Gala: Size 72s, $22-24; 88s, $20-22; 100s, $18-20; 125s, $16-18.

* Prices from the USDA's Fruit & Vegetable Market News, Oct. 21.

The Shipping Scene

Washington's apple crop is recovering from an early-season cold front that swooped down on the state two weeks ago, but many growers already had harvested most of their crops, and they remain optimistic for a strong season.

Before the cold weather struck the weekend of Oct. 9-11, overall volume was similar to last year's, but the size structure was larger from Rainier Fruit Co. in Selah, said Suzanne Wolter, director of marketing.

"Now that we've had some cold weather, we're still assessing what kind of impact there has been to the overall crop," she said. It may be another week or so before growers can determine the full effect.

Rainier already had harvested up to 80% of its crop. The varieties most likely to be affected by the cold were those remaining on the trees - like fuji, pink lady, cameo, late maturing reds and a few granny smiths.

So far, demand for Washington apples has been strong, she said.

"Retailers are promoting apples," Wolter said. "Movement overall has been exceptional and ahead of last year's."

Besides the traditional apple varieties, Rainier offers its Grapple brand - with a concord grape taste - and is repeating a successful soccer ball promotion whereby consumers can obtain a Grapple brand soccer ball by mailing in Universal Produce Code labels. The company is promoting the offer with in-store retail displays.

Stemilt Growers in Wenatchee also had harvested a good portion of its crop before the cold hit.

"On our side (the effect of the cold) was pretty minimal," said Roger Pepperl, marketing director.

The company still has to pick its fuji and pink lady varieties. Pepperl said Stemilt has more pink ladies than most grower-shippers.

"That's the latest variety that harvests in the state," he said, with picking scheduled to start the last week of October.

The company also a lot of its "distinctive" Piñata variety this year as orchards continue to mature.

"It will be a nice size apple this year," he said, with sizes peaking on 80s with plenty of 72s and 88s. A hard launch for the variety is set for January.

"We have some marketing plans around it," he said, which include display pieces, point-of-sale materials and customized retail promotions.

Overall, Pepperl anticipates a good season this year because growers will have more of the big sizes retailers want. Last year, larger sizes were fetching decent prices, Pepperl said, but an abundance of smaller sizes pulled down the market.

Because of the cold weather, with low temperatures ranging from the upper teens to 27 degrees, many growers were sending some of their apples to regular, short-term storage rather than long-term, controlled-atmosphere storage, said Gene Loudon, director of marketing at Dovex Fruit Co. in Wenatchee.

That could mean more competitive pricing for the next couple of months, as growers clear out regular-storage fruit. Prices likely will strengthen as supplies tighten in December and into the new year, he said.

Loudon seemed please with the crop so far.

"We've got one of the nicest crops as far as size, color and taste that we've seen in a long time," he said, noting that sugar levels and pressures have been good.

About 80% of the apples Dovex ships are organic.

"The organic movement has been very strong," he said, with movement up 30% over last year.

The official Washington apple forecast calls for 107 million boxes, down from 109 million last year, but most grower-shippers expect production to fall at least 5% below the forecast, said Todd Fryhover, president of the Wenatchee-based Washington State Apple Commission.

Red delicious continues to be the most widely grown variety in the state, accounting for 30% of the crop. Gala is second with 20%, and granny smith, fuji and golden delicious each account for about 12%.

The honeycrisp variety is being planted heavily and is rapidly gaining popularity, Fryhover said.

Up to 65% of the apples consumed in the U.S. are grown in Washington, and 90% of the nation's apple exports come from Washington, he 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.)

October 23, 2009

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