Canada close to dry land

Last season proved a testing time for Canadian apples. Dry conditions meant a reduction in apple production across the country and unfortunately this was part of a regular pattern that was proving difficult to break. From 1996 to 2001 the acreage devoted to apple production decreased by 18 per cent. This was attributed to low commodity prices and retail consolidation, despite a rise in new production practices and better yield per hectare. Producers have also been struggling to receive a fair return on their crop.

The 2002 Canadian apple crop was 412,161 metric tonnes, which was a 15 per cent drop on 2001 when the crop was 482,484mt. More worryingly, this was the fourth consecutive decrease since 1999 and the provinces of Ontario and Quebec were particularly affected.

This season though, there is already a ray of sunshine breaking through the clouds and 2003 sees growers in optimistic mood. Tom O'Neill, general manager of the Ontario-based Norfolk Fruit Growers' Association, is confident that 2003 will at last be a much better season and provide growers with a good crop and some favourable returns. “We're looking forward to a much better season,” he says. “Not only will we be looking at a better crop, but also a bigger crop than last year. Fruit size will be much improved as will quality, and the colouration of the fruit so far is impressive.”

Empire World Trade (EWT) is also expecting a big improvement this season in quality. Senior trading manager Patrick Broadhurst believes the Canadian apples have a good season ahead of them. “EWT procure Empire apples from Ontario and this year has been a good growing season. The fruit has a nice full colour and the volumes are up around 30 per cent on last season. Also, the fruit has slightly lower levels of acidity which gives it much better eating qualities and as the fruit is small it is ideal for the UK market,” he says.

The crop in 2002 undoubtedly suffered at the hands of the weather. Ontario and Quebec both experienced problems with an awkward combination of frost and drought. These conditions played a key role in the decreasing of apple production in both regions. O'Neill says the spring weather is crucial to the success of the crop and this season conditions have been much kinder. “Last year a major spring frost damaged large quantities of the crop, and this meant reduced volumes,” he says. “Spring conditions this year have been as near perfect as they could have been. We have had good growing conditions throughout June, July and August. This has left the fruit in a very good condition and we are confident of a much improved season.”

Low returns are always a concern for those involved in the Canadian apple industry, particularly as growers are finding the costs of production continues to rise. O'Neill stresses that the growers are looking for good returns this year. “Last year the returns were reasonable with a smaller crop and with demand likely to improve around the Christmas period growers are looking to make the most of a buoyant season,” he says.

The apple growers of Ontario are still awaiting a replacement for the Ontario Apple Marketing Commission (OAMC), which was disbanded nearly two years ago. O'Neill says that since the disbandment of the OAMC the apple growers in the region are keen to see a new association in place to represent their views. “The growers felt that they were not getting decent representation after suffering low returns for many years,” he says. “The Ontario Growers Steering Committee is working hard to get a new body in place, and with its continuing efforts we are confident that a new body will be in place by February next year. It is hoped that the new association will work closely with the government so adequate support is in place for the growers.”

Organics is an area where there has been little development in Canada, but O'Neill explains that Ontario growers are focusing their attention on matters elsewhere. “Organics produce is not growing rapidly in Canada. In British Columbia there is some development taking place,” he says. “However, in Ontario “apple scab” is a big problem and growers here are focusing on Integrated Pest Management (IPM). The Canadian apple industry has developed IPM to a national level and it is important that our fruit meets these standards. Growers are realising the importance of reducing the levels of pesticides and ensuring that fruit meets the required standards.”

The apple industry, in cooperation with provincial extension specialists and officials at the Pest Management Regulatory Agency, has developed an IPM strategy that optimises the use of biological, cultural and chemical measures to control pest and disease pressures. Producers continue to adapt their agricultural management practices to respond to environmental concerns.

The realisation that EurepGAP certification is crucial to perform successfully within the UK market is also acknowledged by the Canadian market. O'Neill says: “This year there is an increased number of growers who are EurepGAP certified and growers are realising how important certification is to be able perform successfully in the UK and mainland Europe. I think as its importance continues to rise we will see even greater numbers acquiring certification next year.”

Broadhurst states that Empire World Trade's suppliers understand the necessity of certification. He says: “The suppliers we work with are EurepGAP certified and this is becoming a more important issue.”

The UK market is big business to the Canadian apple sector. Canada exports apples to more than 20 countries and the UK is ranked second only to the US in terms of volume taken. Although in Europe, Canada mainly exports to the UK, this net could be cast wider in the forthcoming season.

O'Neill believes that Canadian apple growers are looking to make the most of the heatwave problems that have swept across Europe this summer reducing volumes. “Growers are expecting demands to increase in the post-Christmas period, so we're confident that this season will be an all-round success,” he says.

Broadhurst agrees and feels Canadian growers could have an ideal opportunity this season. “The fruit has good storage qualities. This could provide the Canadian market with an opportunity to ship volumes over in the post Christmas period,” he says. “There is an apple shortage expected later this season due to the European heatwave seen this summer and the Canadians will be looking to capitalise. With a favourable exchange rate growers are hoping to acquire good returns in this period, when demand is likely to peak.”

O'Neill says that it's been a while since there have been requests from Europe. “The last time we saw requests like we are experiencing now was in 1991 when we received large numbers of requests for processing apples, and that seemed a long way for people to come for an apple pie. We're delighted with the enquiries received this season and hope they continue.”

The trialing of new varieties is continuing to play an important role in Canada. O'Neill says: “The Honeycrisp and Ambrosia varieties have proved extremely successful in recent trials. These varieties are expecting to enter Canadian stores this year. In the future it is hoped that these varieties will reach the UK.”

Looking to the future there are many challenges facing the Canadian industry and hopefully a fruitful season this year could be an invaluable boost. O'Neill says: “Other markets that have been crucial in the past but have lost their importance due to government instability are markets in Central and South America. The UK market is acquiring significance as an export market for Canadian apples and we're confident this season is a turning point.”

CARON BUILDS ITS EMPIRE

“We have a good crop of high quality apples and they are an ideal size for the UK market,” Benoit Caron, sales manager of Quebec grower, packer and processor Caron Apple House, told the Journal at PMA in Orlando.

“Our major export market is of course the US, but we send to the UK and we are always looking to expand our European presence. We have the infrastructure and we're capable of shipping whatever volume the customer wants to whatever specification.”

Caron is part of a private Montreal-based group, with 10 growers, 1,000 acres of apples and a 500,000 bushel crop. Around 50 per cent of that crop is Macintosh and of the remainder one third is Empire. A number of smaller volume varieties are also in production. “There is still a lot of potential for us in Europe and it is one of our aims to take advantage of that,” Caron, pictured below, said. “Some of our growers have been working with importers in Europe for a number of years and there is a window for our varieties.”