Washington asparagus expected to fetch good prices in 2008
Washington asparagus expected to fetch good prices in 2008
ELTOPIA, WA -- While asparagus acreage in Washington state has dropped significantly in recent years, down from 22,000 in 2000 to 8,500 this season, new plantings are starting to come into production, and prices are looking good for 2008.
According to Alan Schreiber, executive director of the Washington Asparagus Commission, fresh-market grass from Washington could bring 65 cents per pound "or better" this year.
Moreover, he said that in 2007, "more asparagus nurseries were planted in the Columbia Basin and Yakima Valley than in the three previous years combined."
Figures show that in 1990, 30,000 Washington acres were planted in asparagus; that dropped by 8,000 acres at the beginning of this decade. "My prediction is that acreage has bottomed out, and we'll see increased plantings," Dr. Schreiber said.
The decline was brought about primarily by the closure of three canneries in eastern Washington: Chiquita, Del Monte and Seneca, all of which shut down and/or moved between 2003 and 2005. Figures show that in 1993, 55 million pounds of grass went to process, with 33 million pounds going to the fresh market.
In 2001, approximately 60 percent of the state's crop still went to processing, but when the last of the canneries, Seneca, closed, asparagus that had initially been grown for processing was diverted to the fresh market. Much of that "cross-over" acreage has now been planted in other crops.
At the bottom of the processors' decision to leave Washington was the Andean Trade Preference Act of 1991, which eliminated tariffs for four South American countries in an effort to stanch drug trafficking, which is the reason American canners have relocated to Peru.
The act gave Peru, Bolivia, Ecuador and Colombia preferential trade benefits, and the Peruvian asparagus industry emerged as a major competitor for U.S. growers.
Ultimately, the ratio of fresh to process upended in Washington, and today, fresh asparagus accounts for 90 percent of production.
The state is far from unique in its situation, however. At the commission's annual grower meeting in Pasco, WA, on Jan. 21, Dr. Schreiber presented statistics that showed similar declines in asparagus acreage in both California and Michigan. California is down 57 percent from 2000, or 37,000 to 16,000 acres, he said.
Collectively, the nation has seen a 6 percent decline in fresh-market production since 2007, according to U.S. Department of Agriculture statistics. USDA figures also show an overall 8 percent decline in acreage in the last year and a 26 percent reduction in the past five years.
At the same time, the price of asparagus rose 17 percent between 2006 and 2007.
Dr. Schreiber said that Washington's 15 handlers have indicated that although they will all ship this season, "there is a huge shortage of asparagus, particularly during our window."
He added that the new plantings are a good start, but "Without a significant increase within two or three years, we will lose our critical mass of acreage. Buyers will stop calling."
And, he said, the labor issue looms large in the asparagus industry. The crop is especially labor-intensive, and at $8.07 per hour, Washington has the highest minimum wage in the nation. Growers face a two-pronged dilemma: Too few workers willing to do the job and a wage indexed to Seattle's cost of living paid to those who do work the fields.
"Asparagus growers are no different from other growers who need labor. They need a stable, plentiful, legal and timely supply of labor. Maybe they could get it through a guest worker program, a revamped H-2A," he said. Another significant factor is the fact that alternative crops such as alfalfa, hay and corn are bringing high prices with low production costs and no labor costs.
Predicting that "some very good asparagus will be removed mid-harvest" to make way for the competing alternative costs, Dr. Schreiber said it will take a price of 70 cents per pound, a mechanized harvester and/or a steady labor supply to bring about the needed big jump in planted acres.
"There have been inquiries from people interested in getting into asparagus," he said.
Also, a prototype mechanical harvester designed by Kim Haws is showing promise, and grower Steve Danz spoke optimistically about its commercial use.
"I believe it ran well," Mr. Danz said of the Haws Harvester. "It's not perfect yet ... but after another season, I think it should be ready to roll."
Dr. Schreiber, who has his own block of certified organic asparagus growing for research at the Eltopia, WA, facility, told attendees at the January meeting, "You are in the driver's seat, and it's not a bad time to be a grower."
(For more on Washington asparagus, see the April 7 issue of The Produce News.)
According to Alan Schreiber, executive director of the Washington Asparagus Commission, fresh-market grass from Washington could bring 65 cents per pound "or better" this year.
Moreover, he said that in 2007, "more asparagus nurseries were planted in the Columbia Basin and Yakima Valley than in the three previous years combined."
Figures show that in 1990, 30,000 Washington acres were planted in asparagus; that dropped by 8,000 acres at the beginning of this decade. "My prediction is that acreage has bottomed out, and we'll see increased plantings," Dr. Schreiber said.
The decline was brought about primarily by the closure of three canneries in eastern Washington: Chiquita, Del Monte and Seneca, all of which shut down and/or moved between 2003 and 2005. Figures show that in 1993, 55 million pounds of grass went to process, with 33 million pounds going to the fresh market.
In 2001, approximately 60 percent of the state's crop still went to processing, but when the last of the canneries, Seneca, closed, asparagus that had initially been grown for processing was diverted to the fresh market. Much of that "cross-over" acreage has now been planted in other crops.
At the bottom of the processors' decision to leave Washington was the Andean Trade Preference Act of 1991, which eliminated tariffs for four South American countries in an effort to stanch drug trafficking, which is the reason American canners have relocated to Peru.
The act gave Peru, Bolivia, Ecuador and Colombia preferential trade benefits, and the Peruvian asparagus industry emerged as a major competitor for U.S. growers.
Ultimately, the ratio of fresh to process upended in Washington, and today, fresh asparagus accounts for 90 percent of production.
The state is far from unique in its situation, however. At the commission's annual grower meeting in Pasco, WA, on Jan. 21, Dr. Schreiber presented statistics that showed similar declines in asparagus acreage in both California and Michigan. California is down 57 percent from 2000, or 37,000 to 16,000 acres, he said.
Collectively, the nation has seen a 6 percent decline in fresh-market production since 2007, according to U.S. Department of Agriculture statistics. USDA figures also show an overall 8 percent decline in acreage in the last year and a 26 percent reduction in the past five years.
At the same time, the price of asparagus rose 17 percent between 2006 and 2007.
Dr. Schreiber said that Washington's 15 handlers have indicated that although they will all ship this season, "there is a huge shortage of asparagus, particularly during our window."
He added that the new plantings are a good start, but "Without a significant increase within two or three years, we will lose our critical mass of acreage. Buyers will stop calling."
And, he said, the labor issue looms large in the asparagus industry. The crop is especially labor-intensive, and at $8.07 per hour, Washington has the highest minimum wage in the nation. Growers face a two-pronged dilemma: Too few workers willing to do the job and a wage indexed to Seattle's cost of living paid to those who do work the fields.
"Asparagus growers are no different from other growers who need labor. They need a stable, plentiful, legal and timely supply of labor. Maybe they could get it through a guest worker program, a revamped H-2A," he said. Another significant factor is the fact that alternative crops such as alfalfa, hay and corn are bringing high prices with low production costs and no labor costs.
Predicting that "some very good asparagus will be removed mid-harvest" to make way for the competing alternative costs, Dr. Schreiber said it will take a price of 70 cents per pound, a mechanized harvester and/or a steady labor supply to bring about the needed big jump in planted acres.
"There have been inquiries from people interested in getting into asparagus," he said.
Also, a prototype mechanical harvester designed by Kim Haws is showing promise, and grower Steve Danz spoke optimistically about its commercial use.
"I believe it ran well," Mr. Danz said of the Haws Harvester. "It's not perfect yet ... but after another season, I think it should be ready to roll."
Dr. Schreiber, who has his own block of certified organic asparagus growing for research at the Eltopia, WA, facility, told attendees at the January meeting, "You are in the driver's seat, and it's not a bad time to be a grower."
(For more on Washington asparagus, see the April 7 issue of The Produce News.)
