California apple producers holding firmly to niche window
California apple producers holding firmly to niche window
In the mid-1990s apple growers in California were producing 10 million boxes of apples annually. Today, growers there produce between 2.5 million boxes and 3 million boxes, and that number has held as about average over the past several years.
Alex Ott, executive director of the California Apple Commission in Fresno, CA, told The Produce News that in the 1990s, mostly Fuji and Granny Smith apples were produced in the state.
“We had over 40,000 acres then,” said Mr. Ott. “But they were planted in the wrong places. Consumers like their Fujis to be red, and it takes cold weather to color an apple. They were big and delicious, but they were not red. We even marketed them under the ‘California Green Dragon’ brand in Taiwan to try to keep the program strong. But major competition from other areas, and the fact that growers in California have the option of ripping out what doesn’t sell and planting what does, caused our apple production to decline pretty fast.”
Gala beauties from California apple growers.California apple producers do not use controlled atmosphere storage, and instead market only fresh supplies. Mr. Ott said that there is a fine science behind this decision. The state’s apples come on during a supply gap between the Chilean and Washington state movements, providing California with a perfect market niche.
“Because of this window, California continues to be a viable state for apple production,” he added. “In the past few years we have seen new acreage going in. Older varieties are being removed and replaced with new ones. Between 400 and 500 acres of apples were pulled out in the past four to five years, but between 500 and 600 acres went back into the ground in new trees. Growers are increasing their Fuji and Gala production, and Granny Smiths are holding in volumes. There is also strong focus today on the Crisp Pink, which is often marketed as the ‘Pink Lady’ brand.”
He noted that the Gala apple variety is definitely increasing in demand and production, and that he wouldn’t be surprised if it takes over the running for Granny Smith — currently the most produced variety — within the next couple of years.
“The new plantings are with higher density trees,” explained Mr. Ott. “They require less acreage to produce more fruit. Our total box count will grow, but I don’t think we’ll exceed three million boxes. If it were to, we’d be faced with fierce competition.”
Over time, growers developed technology that enables them to now grow very red apples. And the green Granny Smith variety has no blush as is sometimes the case in other areas of the country. The improvements have solidified the state’s niche market.
“California will continue to be a reliable market,” said Mr. Ott. “If you want high-quality, fresh product, this is where you come. We start in late July and run through December to early January. Of course, if Chile is late, or Washington is early, our window of opportunity shrinks. Conversely, our window expands if either of those regions have problems.
“Growers here have no desire to compete with Washington, Michigan, Pennsylvania or New York in apple production,” he continued, “and there is no sense in trying to. Apples are a staple commodity, and we fill a void with a great product.”
Today California has about 70 apple producers and about a dozen packers, shippers and marketers. It is the fifth largest apple producing state in the country in volume, but it ranks second in exports. Location has a lot to do with this because of its proximity to Canada, Southeast Asia, Taiwan and Mexico.
The majority of the state’s apples are produced in the central valley of California. Most growers are located in San Joaquin County, followed by Sonoma and then Santa Cruz Counties. Stanislaus County is fourth in production, followed by Kern County, which is fifth.
The state’s total apple acreage figures include what is sold to processing and at farmers markets.
The California Apple Commission’s focus is to help apple producers deal with government regulations, pests and diseases, expanding export markets, research and other challenging issues.
“Almost a decade ago, we discussed what the role of the commission should be,” Mr. Ott explained. “It was decided that our focus has to be on what the individual growers and packers cannot do on their own. We work with the U.S. Apple Export Council on expanding sales in Mexico, Taiwan and other countries, and we work to help educate consumers and buyers in these places about California being open for apple business. Given our limited resources, these efforts best serve our industry.”
Mr. Ott is also the executive director of the California Blueberry Commission and of the California Olive Committee, a federal marketing order. The three agencies are housed in the same building, but they have separate phone numbers, emails, websites and boards.
“Many organizations are teaming up to utilize the same resources, which makes great economic sense,” said Mr. Ott. “The Blueberry Commission was formed two years ago. We have established the Californian Blueberry Marketing Intelligence Resource Center, which requires all handlers to report details on volumes, pack styles and sizes, pricing, destinations and other details. This will enable us to get a handle on what is being produced in the state and where it’s going. The first season we were organized, growers produced 29 million pounds of blueberries. Last year we did over 34 million, so we know it’s a growing industry.”
The California Olive Committee functions in a similar manner, with the addition of marketing, promotion, inspection and standardization, but it’s a much longer established industry. The state produces between 95 and 98 percent of the country’s canned ripe olives. Mr. Ott noted that olives are an alternative bearing crop.
“All three commodities are doing really well,” he added. “We just keep getting the message out to buy our apples, blueberries and olives.”
This year apple growing conditions were average. Mr. Ott said growers got a bit of a heat spell toward the beginning of July, but that it was not long-lasting.
“Some folks reported a little sunburn damage, but other than that we are very pleased with the quality and movement of the crop,” he said.