US top fruit shaping up

The US apple industry has been serving the UK market for more than 200 years and has become known for its bright red apples, in particular.

According to the 2009 edition of the US Apple Association’s Production and Utilization Analysis, the 2008 crop, at 233 million bushels, was the 14th-largest apple crop since the US department of agriculture (USDA) first recorded statistics on commercial apple production.

However, this year’s crop forecast of 241m bushels should rank as the 11th-largest crop produced by US growers - 8m bushels more than last year’s production and 8m bushels above average production for the past five years.

The production estimate for 2009 in all three apple-producing regions - Eastern, Midwestern and Western - is at or above the five-year average production levels.

In the East, the 2009 crop is forecast at 57.2m bushels, down two per cent from 2008 and equal to the five-year average. The 2009 New York State crop, at 30.2m bushels, is forecast to be 1.5 per cent greater than last year and three per cent above the five-year average.

In the Appalachian region, which includes Maryland, Pennsylvania, Virginia and West Virginia, this year’s production is forecast at 19.3m bushels, up three per cent from 2008. The New England crop, from Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, is forecast to decrease 10 per cent, from 4.3m bushels in 2008 to 3.9m bushels in 2009. Production in the South East (Georgia, North Carolina and South Carolina) is expected to increase by four per cent over the 2008 crop.

In the Midwestern region, production is forecast at 32m bushels, up 48 per cent from production in 2008. Michigan’s crop is predicted at 25m bushels, 75 per cent higher than last year’s crop of 14.3m bushels, and 40 per cent above the five-year average. The combined Eastern and Midwestern crop is forecast at 89.3m bushels - up 12 per cent from 2008 and nine per cent above the five-year average.

The Western crop is forecast at 151.5m bushels, a one per cent decrease from 2008, one per cent above the five-year average. Washington State is forecast to produce 138m bushels, equal to its 2008 production and two per cent above average production over the past five years. Californian production for 2009 is forecast at 7.9m bushels, eight per cent less than 2008 production and seven per cent less than the five-year average.

Apple production in Oregon is forecast at 2.6m bushels, a decrease of eight per cent from the 2008 crop.

The New York State apple programme is now well into its harvest in the lower eastern region of the state, with Empire - the state’s largest variety export to the UK - showing exceptional signs of quality, according to Jim Allen, president of the New York Apple Association (NYAA).

The Empire crop is in good condition, with decent sizes and good sugar levels, and harvesting will continue in the north of New York State this week.

Allen hopes that the export season to the UK will last until November this year. “Yield is good,” he says. “It is a good-sized crop and has exceeded our estimations because of great growing conditions this season. We have hit August’s estimate and will maybe reach even higher.”

Indeed, the New York crop is above its five-year average of approximately 29m bushels and the industry is hoping to export 700,000-800,000 cartons of apples to the UK from now to November.

Allen is cautiously optimistic. “I would like to see a substantial amount going to the UK, but the money is just not in the market. However, we continue to see the UK as an important market and hopefully a growing one, which appreciates high-quality fruit.”

The growing season in New York State has been wetter than usual, but the last couple of weeks have been drier, so hopes are that the situation will balance out. “This season, the Empire apple is a very attractive, red apple,” says Allen. “It is a hard crunchy apple, with that all-important white flesh. I think that UK consumers appreciate Empire compared to, say, Braeburn because of the brix level and its dual purpose; it can be used as a cooking apple as well.”

Kris Marceca of the US Apple Export Council, which covers up to 40 per cent of apple exports grown in the US, believes that the US apple industry may be in for a better time this season. Mainly exporting Empire and McIntosh apple varieties to the UK from the producing states of New York, Michigan, California, Pennsylvania, Virginia and New England, the council tries to work in co-ordination with the World Apple and Pear Association to keep the season moving as smoothly as possible.

“We had a tough year last season because of the general economic condition, with the UK marketplace and in general - we have had to re-evaluate the market and are looking down the road a little,” she says. “It is an excellent crop this year; the size of the fruit is good and it is a really strong product.

“McIntosh is a very consistent, well-received variety, and we are looking to make up ground this year. But in reality, it is about returns; it is a very good production and we can only sustain our industry if we receive the right returns.”

Of course, the rising cost of inputs and the softening of the economy has affected the US apple industry, but the ability to source skilled and willing labour on farms has been a particular challenge this year. “Despite high unemployment across the US, local citizens are not interested in manual labour on farms and we rely heavily on migrant labour, which has various underlying issues,” explains Allen. “Our government’s migration policy is very outdated. We hope to push for reform, but there are a lot of issues this country has to deal with. It is unknown whether this matter will be reconsidered.”

Pairing up

When it comes to US pears, the niche organic offer leads the way, with organic pear imports making up nearly 90 per cent of total pear imports. The UK market mainly imports organic Anjou, red pears and small volumes of Bartlett, which is grown in Oregon and Washington.

An important part of the puzzle, the UK market for fresh US pear imports ranks third in the EU behind the Netherlands and Germany. While the organic pear market has been expanding, red pears are also gaining momentum. According to Pear Bureau Northwest, which represents 1,600 producers and 50 packers and shippers, growers have planted some Taylor’s Gold and Concorde with mixed results.

The pear crop in the US is expected to set a record this season. Pear Bureau Northwest believes that this year’s crop will be 14 per cent larger than last year - a 12 per cent increase on the five-year average.

US pear imports to the UK are always affected by the size of the European pear crop and it averages that the UK imports approximately 750 tonnes of pears from the US. However, last season, more than 1,100t were shipped and this year may see an increase due to the larger pear crop in general and organic pear production in particular.

The summer pear harvest started around mid-August and the winter pear harvest began two weeks ago and will be ongoing for two to three weeks before fruit is packed and stored. The Anjou crop will be shipped at the end of September.

In stark contrast to last year, the growing season was ideal, with no major weather issues. “Last year, a wet spring affected the buds when setting, but this year there were perfect growing conditions,” says Jeff Correa, international marketing director at Pear Bureau Northwest. “The pears are clean and sizing up really well. There have not been many problems at all. The only thing is that some are maybe too big, but we have had this before and it is just a case of looking for a different marketplace for them.

“This year, the European pear crop is up, but the one thing we don’t know is the volume of organic pears that are produced in Europe. We may lose out on sending conventional shipments, but organic pears are our main offer. The UK is our second-largest buyer of organic pears and really important, but it is a tough market.”

US pear production faces similar challenges to other growing areas worldwide, including labour issues, increasing costs of inputs and housing pressures. Ever-increasing regulations have also put pressure on grower returns.

“There are a lot of factors when it comes to trying to expand the market,” continues Correa. “Despite the fact that it takes 20 days to export by sea, there are the facts of the changing exchange rate and the small export window of opportunity we have. It is an eight- to 12-week window. Some European pears continue to be available well into autumn, but it is December when our product really comes in and then the southern hemisphere finishes. We have two book-ends that constrain our window.”

Correa also believes that uniformity of regulations and accreditations is needed to help growers cope with expensive and time-consuming audits. “We serve 60 different markets, all with their own accreditation schemes and retailer audits,” he reasons. “It can be a real nightmare, but we are all getting the schemes closer together. GlobalGAP is starting to see that and moving towards harmony and common ground. Some similar audits can be done at the same time.”

As the pear market moves on, there is a continued push for ripening pears with ethylene. The industry believes that this process provides the consumers with a better-tasting pear, as well as more consistency at retail.

“The newest trend in the pear industry is the establishment of ripening pears in the US and UK market,” says Correa. “There is now a greater consistency in a box and the result is a better eating quality. Research has shown that pears ripened with ethylene have increased consumer purchase and there has been a decided shift from consumers buying pears every two to three weeks to one to two weeks, meaning they are not waiting as long for the fruit to ripen. In the UK, there are ‘eat me, keep me’ packs of four pears and I believe they have done very well.”

So it appears that the US will be welcoming a season of good-quality fruit that will hopefully result in decent returns for this age-old industry.

“The US pear sector has had several seasons with good grower returns,” says Kevin Moffitt of Pear Bureau Northwest. “This year’s record crop may lower some returns, but it should be another profitable year. In terms of the future, the mood is optimistic among growers. European varietal pear production in the US and worldwide has remained relatively flat, while consumption and populations worldwide have increased. Low-priced Chinese pears are a competitive threat in any market, but price rather than quality or flavour drive demand for Chinese pears.”