ANNUAL REVIEW - U.S. Apple Associationusapple.org/.../2017/11/2017USAppleAnnualReview.pdf · when silly special interests attack. ... so we must shift between defense and offense

U.S. APPLEASSOCIATION2017ANNUAL REVIEWTHE NATIONAL VOICE OF AMERICA’S FAVORITE FRUIT

2017-2018 BOARD OF DIRECTORS

ChairmanMark Boyer*

Ridgetop Orchards Fishertown, PA

Vice ChairmanKaari Stannard* New York Apple

Sales, Inc.Glenmont, NY

SecretaryJeff Colombini* Lodi Farming Inc.

Stockton, CA

TreasurerJohn Graden* Crunch Pak, LLCCashmere, WA

Past ChairmanMike Wade* Columbia Fruit Packers, Inc.

Wenatchee, WA

Chris Alpers* RedPath OrchardsLake Leelanau, MI

Dave Benner El Vista Orchards

Fairfield, PA

Brenda Briggs Rice Fruit Company

Gardners, PA

Steve Clement Sage Fruit Company

Yakima, WA

Mike Dietrich Leo Dietrich &

SonsConklin, MI

Jim Divis Tree Top, Inc.

Selah, WA

Bill Dodd* Fruit Growers

Marketing Association

Amherst, OH

David Douglas Douglas Fruit

Pasco, WA

Todd Fryhover Washington Apple

CommissionWenatchee, WA

Philip Glaize, III Glaize ApplesWinchester, VA

Kelly Henggeler Henggeler Packing

Co., Inc.Fruitland, ID

Craig Hinkle Knouse Foods

Cooperative, Inc.Peach Glen, PA

Mark Nicholson* Red Jacket

Orchards, Inc.Geneva, NY

Ned O’Neill Joseph P. Sullivan

& Co., Inc.Ayer, MA

Mike Preacher Domex Superfresh

GrowersYakima, WA

Bob Price Price Cold Storage & Packing Co., Inc.

Yakima, WA

Steve Smith Yakima Fresh LLC

Yakima, WA

Elizabeth Wittenbach Wittenbach Orchards

Belding, MI

Jason Woodworth

Fish Creek Orchards

Waterport, NY

Jon Wyss Gebbers FarmsBrewster, WA

OFFICERS

DIRECTORS

* Serves on Executive

Committee

12017 Annual Review

Top: USApple Board of Directors gather for a

photo while in Chicago.Bottom Left: Jim Bair honors

Lee Peters’ service on the Board with Apple Champion Award.

Bottom Middle: Jon Alegria passes the gavel to Mark Boyer

at August Board Meeting.Bottom Right: Mark Boyer and Jon Alegria present a wreath at the Tomb of the

Unknown Soldier at Arlington National Cemetery.

About Us

Message from the President

Government Affairs

Out & About

Regulatory & Industry Information

Education & Outreach

Membership

Apple Crop Outlook & Marketing Conference

Finance & Administration

Association Staff

234

1011

CONTENTS

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2 U.S. Apple Association

WHAT WE DOThe U.S. Apple Association (USApple) is the national trade

association representing the entire vertically integrated apple

industry. The farm-gate value of the U.S. apple industry is about

$4 billion per year, with a downstream value after packing, ship-

ping, marketing and processing of about $15 billion per year.

Our mission is to advocate for American apple growers and

their industry partners to promote the profitable production

and marketing of apples and apple products. We serve the

entire industry by representing the industry on national issues,

increasing the demand for apples and apple products, and

providing information on matters pertaining to the apple industry.

OUR STRATEGIC GOALS • To develop and influence federal policies which preserve

and improve a viable American apple industry.

• To manage domestic crisis issues that could disrupt the

industry and its relationship with consumers.

• To increase consumption of American apples and apple

products.

• To increase the capacity of USApple to serve and repre-

sent the American apple industry in an effective and

efficient manner.

• To facilitate communications and provide information on

industry issues.

ABOUT US

It has been said that ‘politics is nastier than it’s ever been.’

I’m not so sure. You’d certainly have a difficult time

convincing the ghost of Founding Father Alexander

Hamilton, killed in an 1804 duel by the sitting Vice President

Aaron Burr. Ponder that for a minute.

It doesn’t matter where you fall on the political spectrum,

I think on this we can probably all agree – the current

political climate is like nothing we’ve seen in modern times.

While the occupants of Congress and the Oval Office

change, our job here at USApple never does. Your asso-

ciation’s leadership and staff are focused on just one job

– advocating for the apple industry so every participant

has the opportunity to succeed and thrive.

In the current political environment, it may be stylish to be

against something, yet we know the apple industry is very

much for things. Following is a short list of things USApple is for.

Standing up for the safety and wholesomeness of apples

when silly special interests attack. Defending your ability to

operate your orchard or facility in the best and most sustain-

able way you know how. Speaking up for you when you

need a clear and consistent voice to carry your message to

regulators and policy makers.

Choosing to be positive is a trait common to apple growers

across the country. Perhaps that’s the result of a career that

is tied to the fickle whims of Mother Nature. Whatever the

source, it makes it enjoyable to represent you here in the

nation’s capital.

Jim Bair

President & CEO

32017 Annual Review

MESSAGE FROM THE PRESIDENT


From agricultural labor to Farm Bill programs, regulations

and trade agreements, the policies and decisions made in

Washington, DC impact your business every day. Responding

to these critical issues and ensuring the “apple voice” is heard

by Members of Congress and the Administration is a top

priority for the USApple staff and our volunteer leadership.

USApple is the only national organization focused solely

on the needs of the U.S. apple industry. From agricultural

labor and H-2A issues to food safety regulations and crop

insurance policies, the apple industry has unique needs and

challenges which need to be taken into account in crafting

legislation and regulations.

Working toward that goal, the Government Affairs Committee

holds an annual strategy meeting in Washington, DC to

set policies and priorities for the coming year. When the

Committee met in January of 2017, trade issues, agricultural

labor and the 2018 Farm Bill quickly rose to the top. The

Committee also discussed the challenges and opportunities

presented by the new Administration and Congress. USApple

focused on these issues throughout the year in work on our

own, with coalitions, and grassroots efforts by our members.

NEW ADMINISTRATION & CONGRESS USApple is used to working with new Presidents and their

Administrations. They bring changes in policies and priorities

so we must shift between defense and offense. Bottom line,

there are always challenges but that creates opportunities to

work with every new occupant of the White House.

USApple is committed to seizing these opportunities while miti-

gating risk. Toward that goal, USApple President & CEO Jim Bair

and Senior Vice President Diane Kurrle have participated in a

GOVERNMENT AFFAIRS

52017 Annual Review

wide variety of meetings with top Trump Administration officials

at the White House, Department of Agriculture, United States

Trade Representative and the Department of Commerce. We

have brought a strong apple message to all of these meetings.

We are educating officials on the economic footprint of

the apple industry and importance to the stability of rural

communities. We are doing this in the context of arguing

for agriculture labor reform, maintaining and building on

key trade agreements such as NAFTA, and highlighting the

success of key Farm Bill programs like the Market Access

Program and Specialty Crop Research Initiative. Our efforts

over the past year have brought success but there is

much more to be done. The Trump Administration is now

filling key positions at agencies such as the Department

of Agriculture, Department of Labor and others. We will

continue to meet with these important new decision

makers and further build those relationships.

In addition to outreach to the Trump Administration,

USApple also met with all of the new Members of Congress

who represent significant apple production and worked to

maintain strong relationships with returning members.

NAFTA AND TRADE ISSUESWith about one of every three fresh U.S. apples destined

for overseas markets, trade is critical to the health and

future of the entire industry.

Mexico and Canada are our two largest export markets. The

apple industry has benefited greatly under NAFTA. From

1993 to 2015, exports to Mexico quadrupled while exports to

Canada doubled. Export sales to the two markets total more

than $450 million annually. The importance of maintaining

this critical market has been a top USApple priority this year.

The anti-trade rhetoric during the presidential campaign

got heated from both sides. Candidates Trump and Clinton

vowed to scrap the Trans Pacific Partnership, an agree-

ment that USApple and most agriculture groups strongly

supported. Criticism of NAFTA became a rallying cry at

Trump and Sanders rallies and for groups that had bene-

fited from the agreement it became clear we would need to

be proactive in telling our success stories.

Shortly after the 2016 election, USApple and other pro-trade

groups began meeting and developing strategies for educating

the new Administration on the benefits of NAFTA to the agricul-

tural sector. Agriculture is a clear winner under the agreement

with exports increasing by 350% since its enactment.

USApple and our partners in the NAFTA coalition met with all

the members of the House Ways and Means Committee and

the Senate Finance Committee as they have jurisdiction over

trade agreements.

USApple is regularly communicating with key apple offices

regarding the importance of a strong export market and

specifically for maintaining the gains in NAFTA. USApple

submitted comments to the Trump Administration at the

onset of the negotiations with a clear message, “do no harm.”

At press time, four rounds of negotiations have been

completed with at least two more planned. There are

varying predictions about the potential outcomes. USApple

continues to seek every opportunity to educate the

Administration and Congress about the economic importance

of NAFTA to our industry.

USApple President & CEO Jim Bair authored an Op-Ed on

the importance of NAFTA that received national promi-

nence when it was published in the Wall Street Journal on

October 25. That same week, Kurrle joined representatives

from across business and agriculture sectors for a NAFTA

lobbying day sponsored by the U.S. Chamber of Commerce.

LABOR AND IMMIGRATION ISSUESLabor and immigration enforcement issues continue to domi-

nate the list of “things that keep apple growers up at night.”

GOVERNMENT AFFAIRS


Whether it is concern about having enough harvest workers,

getting H-2A applications through the approval process or

the threat of an audit, labor is top of mind for East and West

Coast, large and small growers alike.

Agricultural labor is the quintessential example of this new

Trump Administration bringing “challenges and opportunities.”

Candidate Trump promised to “build a wall,” vigorously

enforce immigration laws, and make sure that Americans

are not displaced by foreign workers. All of this lead to

concern among growers and workers about the potential for

increased raids, I-9 audits and a push for Congress to pass

mandatory E-Verify.

While these are clearly challenges, candidate Trump also

vowed to reduce regulatory burdens. Trump winery in Virginia

uses the H-2A program. Could this provide an opportunity?

We thought so. USApple and a small DC-based coalition of

grower organizations began meeting shortly after the election

to develop a list of H-2A improvements that could be made

by the Administration without changing the law. Using that

list as a starting point, a diverse group of House members sat

down with Labor Secretary Jim Acosta to discuss the chal-

lenges and regulatory burdens of the H-2A program.

We are getting traction. President Trump has appointed a

multi-agency working group headed by USDA and charged

with seeking improvements to the program. USApple is in

close touch with the USDA staff lead in that effort and we are

providing input and suggestions as they move forward.

President Trump’s decision to revoke the Deferred Action

for Childhood Arrivals (DACA) program effectively jump-

started immigration discussions in Congress, creating both

a threat and an opportunity. Some in Congress and the

Administration have suggested mandatory E-Verify should

be paired with DACA. Congressional leadership knows

Top: Chris Alpers testifies before Senate Agriculture Committee.

Bottom Left: California delegation meets with Rep.

Jerry McNerney (D-CA).Bottom Right: Diane Kurrle and

Jim Bair with Sen. Kirsten Gillibrand (D-NY) at New York Farm Day.

72017 Annual Review

that won’t fly unless there are agricultural labor reforms

passed along with it. They know this because of the work

that USApple and our partners in the Agriculture Workforce

Coalition (AWC) have done over the past several years.

In addition to discussions with dozens of House and Senate

offices about the perils of enforcement without reform,

USApple and the AWC delivered a letter to House leadership

signed by nearly 60 Republican members saying they would

not vote for E-Verify without an agriculture fix. The message

got through and so far it has stuck.

President Trump and many House conservatives want to see

mandatory E-Verify passed into law immediately but the lead-

ership including House Judiciary Chairman Bob Goodlatte

(R-VA) are linking it with agriculture. On October 25, the

Judiciary Committee passed the Agriculture Guestworker Act

(to reform and replace H-2A) and the Legal Workforce Act

(mandatory E-Verify).

USApple and the AWC met with Goodlatte’s staff throughout

the bill writing process, offering suggestions and raising

concerns where appropriate. In order to appeal to conserva-

tive members whose votes were needed to pass the bill out

of Committee, changes were made to the legislation that

cause concern to agriculture groups like USApple. At this

writing, efforts are being made to seek improvements to the

AG Act while insisting leadership keep their commitment not

to move E-Verify without us.

FARM BILL Reauthorization of the Farm Bill is well underway as the current

law expires on September 30, 2018. USApple is a founding

member of the Specialty Crop Farm Bill Alliance (SCFBA) and

is active on its Steering and Legislative Committees. It was

because of the work of the SCFBA that specialty crops were

finally recognized in the 2008 bill. The SCFBA successfully built

on those accomplishments in the 2014 legislation which main-

tained and even increased funding for key programs.

Top: Washington Board members pose with Rep. Dan Newhouse (R-WA) at USApplePAC Reception.

Bottom Left: Rep. Jaime Herrera Beutler (R-WA), Ryan Ayres, Mercer Canyons, Prosser, WA, Diane

Kurrle, USApple, and Jon DeVaney, Washington State Tree Fruit Association. Bottom Right: Sean

Gilbert meets with Rep. Collin Peterson (D-MN), top Democrat on the House Agriculture Committee.

GOVERNMENT AFFAIRS


USApple played a leadership role on several SCFBA policy

committees that developed recommendations now being

advocated for by the Legislative Committee. Issue areas for

the recommendations include trade, research, crop insurance,

block grants and nutrition programs.

USApple is also active in the Coalition to Promote U.S.

Agricultural Exports, a broad agricultural coalition working

in support of the Market Access Program (MAP). The MAP

Coalition strongly supports an increase in funding for the

program that have remained flat since 2002.

PESTICIDE ISSUESWe were very active this year working on pesticide-related

issues that affect the apple industry. USApple is a founding

member of the Minor Crop Farmer Alliance (MCFA), whose

mission is to “address legislative and administrative policies to

ensure the continued availability of crop protection chemicals

for minor use crops.” In addition, USApple is a member of the

Pesticide Policy Coalition (PPC) consisting of a broad cross

section of commodity groups and agricultural organizations.

In 2017, the newly elected Trump Administration imple-

mented significant policy changes at the Environmental

Protection Agency (EPA) through new political appointees at

the agency. The EPA reconsidered a number of regulatory

actions begun at the end of the Obama Administration aimed

at further restricting the use of, or completely cancelling the

registrations of a number of crop protection chemicals that

are important to apple production. We worked with industry

allies and coalitions as well as individually on the revised

proposals. USApple took action to support:

• Chlorpyrifos – used to control of serious pests including San

Jose scale, rosy apple aphid, pandemis leafroller, oblique-

banded leafroller, climbing cutworms, and the American plum

borer.

• Dinotefuran insecticide – one of a very few compounds

that has been demonstrated to control a devastating

Top: Phil Glaize speaks to a packed room of Congressional staff

about the dire need for labor reform. Bottom Left: Ohio delegation

meets with Rep. Bob Gibbs (R-OH). Bottom Right: Jim Bair and Mark Boyer

meet with Trump Administration officials.

92017 Annual Review

invasive pest to apple production – the Brown Marmorated

Stink Bug (BMSB).

• Imidacloprid insecticide – important tool for control of

aphids in Integrated Pest Management (IPM), and Integrated

Resistance Management (IRM) programs because of its

lower impact on beneficial insects.

• Bifenthrin insecticide – one the few compounds known

to provide effective control of the BMSB, in addition to a

number of significant insect pests attacking apples.

• Sevin (Carbaryl) – plays a critical role in fruit thinning.

PollinatorsUSApple is a member of the EPA Pesticide Program

Dialogue Committee’s (PPDC) Pollinator Protection Working

Group (PPWG). The working group continues to explore

methodology, pesticide label requirements, available training

materials to applicators, and developing recommenda-

tions to the EPA to reduce the potential for bee losses

associated with pesticide use by growers and beekeepers.

USApple continues to advocate for a balanced, science-

based approach that weighs the impact and benefit of any

proposed regulatory action on both pollinators and growers.

LOOKING AHEADThere is no question that the coming months and the new year

will continue to present the industry with challenges and opportu-

nities. Much of what we have been working on over the past year

will continue into 2018. NAFTA, agriculture labor, and the Farm

Bill will likely stay at the top of the list. But new issues will likely

present and the USApple staff will work to ensure the industry

is represented, defended and always has a seat at the table.

The USApple Government Affairs Committee will meet in

January 2018 to discuss strategy and goals for the coming

year. And, in March, apple leaders from across the country

will make their annual descent on Washington, DC to bring

their personal stories to Capitol Hill in meetings with their

Senators and Representatives.

Top: Rep. Dave Reichert (R-WA) addresses the crowd before Capitol Hill Day. Bottom Left: California delegation meets Rep. Ami Bera (D-CA). Bottom Middle: Ohio grower

Sara Shanteau poses with Rep. Robert Latta (R-OH) on the steps of the Capitol.

Bottom Right: House Ag Committee Chairman Michael Conaway (R-TX) and Jim

Bair spend a day in WV skeet shooting.


OUT AND ABOUT

112017 Annual Review

The goal of the Industry Information program is to provide

relevant and timely information to the U.S. apple industry,

and represent the interests of the apple industry in areas of

regulation, research and industry standards.

CROP INSURANCE At the instigation of USApple, the Federal Crop Insurance

Commission (FCIC) has approved funding for the devel-

opment of an apple tree insurance policy. USApple’s

Risk Management Task Force continues to work with

a consulting firm to develop the terms and conditions

of the apple tree crop insurance policy. As the provi-

sions are developed, Task Force members and growers

will be consulted to provide feedback. The USDA Risk

Management Agency (RMA) will also be working with the

Task Force on potential changes to the apple policy to

address loss ratios experienced in recent years that exceed

statutory guidelines.

WATERS OF THE UNITED STATES (WOTUS)In a major victory for the agricultural community, the EPA and

the Army Corps of Engineers took action in 2017 to rescind the

controversial Waters of the United States (WOTUS) rule that

was finalized in 2015. USApple was part of a broadly based

agricultural coalition that opposed the rule on the basis that

it represented an unjustified expansion of federal jurisdiction

over streams and wetlands under the Clean Water Act. Under

the 2015 rule, growers would have faced a difficult and often

ambiguous situation in which federal agencies could exert their

authority over land that was often far from a navigable water.

The action to rescind the rule is the first step in a two-part

process. The second part of the process involves a re-eval-

uation and revision of the definition of Waters of the United

States, a process that could be lengthy.

RESEARCHUSApple was a leader in the effort to establish the Specialty

Crop Research Initiative (SCRI) in the 2008 Farm Bill. The

$50 million annual program to support research on specialty

crops was made a permanent part of the Farm Bill with

the passage of the 2014 Farm Bill. USApple encourages

researchers to seek funding for projects and provides letters

of support to research grant applications for projects that

represent research priorities for the industry.

Separate from the SCRI program, in 2017 USApple strongly

and successfully opposed the USDA budget proposal to

close down the Apple Postharvest Research Laboratory in

Beltsville, MD. The Beltsville Postharvest Laboratory is the

only federally funded research effort on apple postharvest

problems, and we were successful in retaining this important

research effort.

Among the many positive results for 2017 in the area of

research were:

• USApple was named to participate on the 2017 SCRI

“Relevance Review Panels.” The panels are made up of

industry experts invited by USDA’s National Institute for Food

and Agriculture (NIFA) to evaluate and rate SCRI research

proposals on the basis of relevance – how the proposal

addresses a specific need or needs of the specialty crop

industry. The relevance review is the first of a two-part evalu-

ation process, with the second part being a “science-based

review” by competent researchers that provides an evaluation

of the science and thoroughness of the research proposal.

• USApple was named to the Stakeholder Advisory Panel

overseeing the new five-year, $8.8 million project to

continue research on controlling the Brown Marmorated

Stink Bug (BMSB).

REGULATORY & INDUSTRY INFORMATION

REGULATORY & INDUSTRY INFORMATION


DATA AND ANALYSISProduction & Utilization Analysis The Production & Utilization Analysis, released each year at the annual Apple Crop Outlook &

Marketing Conference, is the only centralized source of current and historical data on U.S. apple

industry and is used extensively for developing marketing programs and for long term planning. Data

compiled and analyzed for the Production & Utilization Analysis is used by the USDA in such areas

as the Risk Management Agency’s (RMA) updates in the apple crop insurance program and by the

Agricultural Marketing Service in planning purchases of fresh apples and processed apple products.

Market NewsUSApple’s Market News is published monthly from November through June, providing the industry

with timely and valuable information on national apple inventories and movement. In addition to its

widespread use by the industry in decision-making, the monthly inventory data from Market News

is a fundamental part of discussions with the USDA on apple and product purchases. Table of ContentsTotal and Fresh Holdings

by Variety ...................2-7

Regional Apple Holdings ....8

Processing Holdings ...........9

Total U.S. Apple Holdings by Variety and Region ..10

Price Charts and Exports ..11

Fresh Apple Holdings at 143.3 Million BushelsNovember 1 U.S. Holdings• U.S. fresh-market apple

holdings of 143.3 million bushels on November 1, 2017, are 6 percent more than the November 1, 2016 holdings of 134.7 million bushels, and 15 percent more than the five-year average of 125.1 million bushels.

• Total processing apple holdings as of November 1, 2017, were 51.1 million bushels, 12 percent more than those on November 1, 2016, and 17 percent more than the five-year average for that date.

0

40,000

80,000

120,000

160,000

2015 Crop 2016 Crop 2017 Crop

117,782

134,711143,255

42,876 45,57751,129

42-lb

Uni

ts (

Thou

sand

)

Fresh Processing

MarketNewsNOVEMBER 2017 • VOLUME 24 ISSUE 1 • USApple.org

Total U.S. Fresh and Processing Holdings on November 1

PRODUCTION & UTILIZATION

ANALYSIS

2017

SPONSORED BY

FOOD SAFETY MODERNIZATION ACT In late 2015 the FDA issued the final rule for Produce Safety

Standards that apply to growers, but the industry is still awaiting

the important guidance documents that provides more specific

information on what must be done to comply with the produce

rules. USApple met with senior FDA officials on several occasions

to discuss issues associated with implementation of the Produce

Safety Standards, in particular, serious difficulties associated

with the agricultural water provisions. The FDA responded to

USApple and industry concerns by announcing that the agency

is reconsidering the agricultural water provisions and extending

the deadlines for compliance by two years (see below).

Though the FDA issued the first five of 14 chapters of Draft

Guidance for the Preventive Controls Rule that applies to packer/

shippers, we are still awaiting publication of the final nine chapters of

guidance for that rule. A summary of the status of the rules includes:

• Agricultural water provisions are being reconsidered by the

FDA. Originally, growers were to have begun water testing

in 2020 (for most firms), but the agency has pushed that

deadline back to 2022 pending the outcome of the agency’s

reconsideration of the agricultural water provisions.

• Produce Safety Standards – the section of the new rules

affecting growers - still await the issuance of guidance

documents.

• The FDA anticipates that additional guidance documents

for both rules will be gradually released through 2019.

• USApple’s Food Safety Committee will review FDA

guidance documents as they are made public, provide

comments to the FDA on apple-related issues and will

communicate key guidance provisions to members.

USDA APPLE PURCHASES The USDA Agricultural Marketing Service (AMS) Fruit and

Vegetable Program purchases fruits and vegetables for use

in the nation’s school lunch program and national feeding

programs for the low income and elderly. USApple works

closely with the AMS providing information and support for

including fresh apples and processed apple products in these

important national programs. USDA purchases of fresh and

processed apples for the 2017 Fiscal Year totaled more than

$81 million, up 15 percent from FY 2016 purchases. USApple

will continue its work to encourage the inclusion of apples and

apple products in all government nutrition programs.


EDUCATION AND OUTREACH

APPLES4ED: NEW PARTNERSHIPS EXPAND PROGRAMWith new campaign partners, the School Nutrition Association

(SNA) and the National Association of State Departments of

Agriculture (NASDA), Apples4Ed entered the 2017 – 2018 grant

year with a renewed focus on nutrition. Together, USApple,

SNA and NASDA were on a mission to get people talking

about healthy snacking in school.

Apples and other healthy snacks can drive alertness, focus

and energy throughout the school day.

That was the driving message behind the campaign – that

equipping kids with what they need to be successful in the

classroom starts first with nutrition, and not only at the break-

fast, lunch and dinner table.

Students, food service directors, faculty and school administra-

tors were encouraged to submit their creative healthy snacking

idea for a chance to win a $10,000 grant for their school. Within

24 hours of the launch of the program, USApple received 30

submissions and more than 100 submissions within the first

week alone. A judging panel will convene in December 2017

to determine the finalists. The first place $10,000 winner and

two $5,000 runner ups will be announced in February 2018.

USApple will then follow the winners and their journey imple-

menting the grant funds throughout 2018—giving a face to this

new healthy snacking movement and providing an opportunity

to showcase real success stories for other schools to emulate.

The program, and the newly revamped Apples4Ed.com

website was pre-promoted in the summer of 2017 at NBA

basketball camps across the country. Fliers on the program

were distributed to everyone and NBA athletes enjoyed apples

alongside camp-goers, reinforcing apple’s role as a healthy,

energy boosting snack.

Promotion of the program also included targeted mailings to

schools. In the fall of 2017, more than 1,000 schools across the

country received printed posters and material to promote the

contest on campus, giving life to the program and driving traffic

to the Apples4Ed.com site.

NOMINATE YOUR SCHOOL AND COMPETE FOR A

$10,000 HEALTHY SNACKING GRANT

SHOW US WHAT YOUR SCHOOL’S GOT!

VISIT: WWW.APPLES4ED.COM BE APPLE SMART

What is Apples for Education?The U.S. Apple Association, in partnership with the School Nutrition Association and the National Association of State Department of Agricultures, will fund three separate, healthy snacking initiatives on school campuses across the country in 2018, through the Apples4Ed program.

What is a healthy snacking initiative?A program that encourages daily consumption of healthy, balanced snacks that positively impact student achievement, focus, fitness and mood.

So what does that mean? Get creative! We want to hear from you. Do you have an idea to harvest a school garden on campus? Or do you have big plans for a snack pantry to keep students fueled and energized through the day? What about a new cooking and fitness competition to promote healthy lifestyles? Think big!

How do I nominate my school?Fill out the short form, found on the www.apples4ed.com site before November 30, 2017. All initiatives requesting grant funding must fall into one of three categories:

• Hands on Learning• Event• Food Service

Good luck!



What are the deadlines?November 30th, 2017: Nominations closeDecember 2017: Judging committee selects finalistsJanuary/February 2018: Consumer Voting on Finalists and Winners Announced

How will winners be judged and selected?A judging panel of representatives from USApple, SNA and NASDA will determine finalists based upon a combination of creativity, student impact, long-term viability and community involvement.

How do I know if my school is eligible?All schools, with students enrolled from Kindergarten up through 12th grade will be eligible and considered for the grant.

How many grants will be awarded? And when?First place will be awarded a $10,000 grant and two runner-ups will each receive $5,000. Checks will be presented to the schools in person, in January and February of 2018.










Fully leveraging the partnership with SNA and NASDA, both

groups distributed content on the program to their members,

through newsletters and social media content. Other notable

outreach efforts included a guest post on the American Farm

Bureau Federation’s blog, a group that boasts a membership

of more than six million.

The all-new Apples4Ed program has received overwhelming

positive praise from the industry and the broader education

and nutrition communities. The program is well poised for

growth and will serve as a platform to elevate the conversa-

tion on healthy snacking in the coming years.

APPLE MADNESS: YEAR TWO WINSIn its second year, USApple’s take on the college basketball

tournaments, saw another successful year of engagement.

A fan favorite, created to raise awareness on the versatility

of apples, Apple Madness increased its reach by 20 percent

over 2016’s campaign.

Held during National Nutrition Month, Apple Madness

tapped into the popularity of bracket fever, encouraging

people to pick and share their favorites among 32 apple vari-

eties. In addition to their own prediction bracket, consumers

could revisit the site each week to vote in that week’s match-

up. Each variety took on their own athletic persona, based

on analogies of their real-life attributes.

Strong member participation contributed to the campaign’s

success. Give-a-ways and online participation came from

Borton Fruit, Chelan Fresh, Domex Superfresh Growers,

Michigan Apples, New York Apple Association, New York

Apple Sales, Oppy, Rainier Fruit, Red Jacket Orchards,

Ridgetop Orchards, Riveridge Produce, Sage Fruit and



Washington Apple Commission. An active Twitter party was

held during the height of the tournament, driving more than

3,500 posts and over 1,200 retweets.

Apple Madness culminated in five rounds – the Fresh 32,

Vitamin-C 16, Edible Eight, Fiber Four and the National

Chompionship – registering a total of 31,037 votes. The

program continues to be a fun, effective way to educate

consumers on the different flavor profiles and culinary uses of

apple varieties.

Jim Bair moderates the Media Panel in Chicago. L-R: Gary Pullano, Fruit Growers News, David Eddy, American Fruit Grower, Greg Johnson, The Packer, Shannon Dininny, Good Fruit Grower, and Eric Nieman, Produce Business Magazine


ADVOCACY COMMUNICATIONS: PILOTING PR SUPPORT FOR MEMBERSWith 2017 being an extremely active legislative season,

USApple piloted a communications toolkit for participants of

the annual member fly-in. In addition to a customizable press

release for members to tout their involvement in the Capitol

Hill meetings, the following resources were sent to select

members in each state.

• Tips & Best Practices to Customize the Release

• What do Reporters Want to Know About You? We Asked One

• The 7 Elements of Every Press Release

• Building a Media List. It’s Easier Than You Think. Sample

Facebook and Twitter Posts

Member response was positive and USApple is developing

additional toolkits and training resources to assist members

with their own public relations efforts. Providing PR support

to members directly has been identified as a new member

benefit, worth the attention.

MEDIA PANEL: CONNECTING MEMBERS WITH THE MEDIAFor the very first time, the 2017 Apple Crop Outlook &

Marketing Conference featured a media panel with partici-

pation from preeminent trade press reporters and editors.

USApple members in attendance interacted directly with

press, asking questions that sparked dialogue on topics such

as what media look for in a source, the future of reporting

and most memorable story assignments. USApple President

and CEO Jim Bair led the discussion beginning with a spirited

back and forth on the top issues impacting apple growers.

#APPLEADAY: CAPTURING THE LOVE OF APPLESFrom sliced to sauced, from blended to baked, as a morning

meal or mid-night snack – USApple asked consumers to tell us

how they #AppleADay. As apples became top of mind during

peak harvest season, this online campaign launched in October

created a platform for people to share their apple preferences

and favorite recipes. USApple compiled a long list of the

hundreds and hundreds of ways people love to enjoy apples.

Big experts in pesticides and toxicology say this annual list, seen as

helpful for sales of organic produce, oversimplifies a complicated

issue. Just because pesticides are on an apple doesn’t mean the

apple is dangerous. Meanwhile, critics say, the EWG survey muddies

what is a much more important message for American consumers: Eat

more fruits and vegetables. Period.”

Given all that, it’s obvious the Dirty Dozen List does a huge disservice

to the public. If they cared about accuracy, they would tell you what

scientists do – that the American grown food supply gets an A+.”



CRISIS COMMUNICATIONS: MOVING THE NEEDLE ON PRODUCE SAFETYUSApple continued to do their part to increase consumer

confidence in produce safety. Through proactive media

outreach and direct consumer inquiries, USApple reiterated

the consistent message that apples are safe and healthy.

This included sharing industry research on the alarmingly

low rates of produce consumption from every age group and

demographic. USApple also corrected and responded to

misinformation head on, including the annual Dirty Dozen list.

Consumer sentiment and media bias is shifting in this area,

resulting in an increase of balanced media coverage. Examples

of notable headlines include:

LOOKING AHEAD: GOALS TO HIT IN 2018As 2017 nears an end, the first half of 2018 will focus on

selecting the Apples4Ed grantees and chronicling their

projects. Apple Madness will kick off in March for the third

consecutive year and USApple will also roll out new PR training

material and resources to members. Another big focus will be

advocacy related, as legislative activity heats up on Capitol

Hill related to the Farm Bill, NAFTA and others. The education

team will work hand-in-hand with the government affairs team

to communicate with media, members and select audiences.

Lastly, USApple will pursue new partnerships with like-minded

organizations and corporate entities, building upon the success

seen from the Apples4Ed collaboration with SNA and NASDA.


USApple has 180 dues-paying member companies, generating

$180,275 in dues revenue, exceeding the FY16-17 budget of

$152,000 and the $176,000 collected in FY 15-16. Fourteen

new companies joined the association generating more than

$10,000 in revenue. The 2017 membership renewal retention

rate was 93%.

MEMBERSHIP

USApple members also include the following state and regional apple associations representing the nation’s 7,500 apple growers throughout the country, as well as more than 1,000 individual firms involved in the apple business.

California Apple CommissionColorado Apple Admin. CommitteeConnecticut Apple Marketing BoardGeorgia Fruit GrowersIdaho Apple CommissionIllinois State Horticultural SocietyIndiana Horticultural SocietyKentucky State Horticultural SocietyMaine Apple Marketing CommitteeMaryland Apple Promotion BoardMassachusetts Fruit Growers Assoc.Michigan Apple CommitteeMinnesota Apple Growers Assoc.Missouri State Horticultural SocietyNew England Apple Assoc.

New Hampshire Apple AssociationNew Hampshire Fruit Growers Assoc.New Jersey Apple Industry CouncilNew York Apple AssociationNorth Carolina Apple Growers Assoc.Ohio Apple Marketing ProgramOregon – Hood River Grower-Shipper Assoc.Pennsylvania Apple ProgramUtah Apple Marketing BoardVermont Tree Fruit Growers Assoc.Virginia Apple Growers Assoc.Washington Apple CommissionWest Virginia Horticultural SocietyWisconsin Apple Growers Assoc.

MEMBERSHIP


YOUNG APPLE LEADERS PROGRAMThe Young Apple Leaders Program, now in its eighth year,

continues to provide value to the next generation and is an excel-

lent way for the young leaders to be introduced to the association

while learning more about key issues facing the industry. The

Class of 2017 included 17 Young Apple Leaders representing five

states - California, Michigan, New York, Ohio, and Washington.

They joined forces with the USApple Board of Directors and

other apple industry leaders for Capitol Hill Day in March. The

Young Apple Leaders educated their Representatives and

Senators about critical apple business issues, such as the

need for a stable, legal agricultural workforce.


Jordan BachmanSunny Hill Fruit Farm

Carroll, OH

Gunnar BergYakima Fresh, LLC

Yakima, WA

Joel CristCrist Bros. Orchards

Walden, NY

Clint EdwardsFrosty Ridge

OrchardsYakima, WA

Tabitha FrancisCalifornia Apple

CommissionClovis, CA

Marcus JonesGeorge W Saulpaugh

& Sons, Inc.Germantown, NY

Spencer MacQueen

MacQueen Orchards Holland, OH

Brett MonsonMonson Fruit

CompanySelah, WA

Jesse MulburyNorthern Orchard Co.

Peru, NY

Matthew MurphyRed Jacket Orchards

Geneva, NY

Ryan RaschGreenTree Orchards

Sparta, MI

RJ SimonsBelleHarvest Sales

Belding, MI

Megan WadeColumbia Fruit Packers, Inc.

E. Wenatchee, WA

Jake Walkenhauer

Larson Fruit CompanySelah, WA

Cristy WarnockAllan Bros., Inc.

Naches, WA

Hailey Wertenberger

Sage Fruit CompanyYakima, WA

Jordan Youngquist

Youngquist FarmsKent City, MI

2017 YOUNG APPLE

LEADERS

WE WOULD LIKE TO RECOGNIZE THE 2017 SPONSORS.Thank you for your continuing support of USApple and the Young Apple Leaders Program.


APPLE CROP OUTLOOK & MARKETING CONFERENCEThe 2017 Apple Crop Outlook & Marketing Conference

featured the unveiling of the projection for the 2017 U.S. crop

at 248 million bushels, plus estimates from other major apple

production areas that impact the market. More than 300

apple industry leaders attended the conference, including 49

from 19 foreign countries and 61 first-time attendees.

NAFTA was this year’s buzz word. With the Trump

Administration announcing its’ intention to renegotiate the

NAFTA treaty, the conference kicked off with keynotes led

by government officials from Mexico and Canada. Roughly

a third of U.S. grown fresh apples are exported, with Mexico

and Canada comprising the number one and two export

destinations, respectively. Outlook speakers with NAFTA

expertise spoke from varying viewpoints on the various

possible outcomes of renegotiating the treaty.

The conference offered plenty of networking and reception

events, giving attendees an opportunity to visit with old and

new colleagues alike.



APPLE CROP OUTLOOK & MARKETING CONFERENCE

PLATINUM

GOLD

SILVER

BRONZE


THANK YOU TO OUR 2017 OUTLOOK SPONSORS

SAVE THE DATE2018 APPLE CROP

OUTLOOK & MARKETING CONFERENCE

August 23 - August 24, 2018The Swissôtel • Chicago, IL

2017 Apple Person of the Year Award

Fred HessHess Brothers Fruit Co., Lancaster, PA

Presented by The Packer

2017 Apple Grower of the Year Award

Rod FarrowFish Creek Orchards, Waterport, NY

Presented by American Fruit Grower Magazine


CONFERENCE HIGHLIGHTS INCLUDED:NAFTA Update: Mexico’s Perspective

Karen Antebi, Economic Counselor, Trade and NAFTA Office

Ministry of the Economy of Mexico

NAFTA – Making a Good Thing Better

John Cruickshank, Consul General

Consulate General of Canada in Chicago

How Do You Like Them (NAFTA) Apples?

Veronica Nigh, International Trade and Environmental Issue

Economist, American Farm Bureau Federation

Reassuring Consumers About the Safety of All Produce

So Facts, Not Fears, Can Guide Shopping Choices

Teresa Thorne, Executive Director,

Alliance for Food and Farming

APPLE CROP OUTLOOK & MARKETING CONFERENCE


FINANCE & ADMINISTRATION

CHECKING THE BOOKS: USAPPLE’S FINANCIAL OVERVIEW

To keep USApple on firm ground financially, John Graden,

CrunchPak and USApple’s Treasurer, along with the

Executive Committee, oversees the association’s finances,

human resources and office operations. It also ensures asso-

ciation compliance with applicable state and federal laws

and guidelines.

The financial statements for the fiscal year ending June 30,

2017 show USApple accrued revenues of $2.2 million and

expenses of $2.1 million. Compared with the previous year,

the association’s net assets increased $63,000.

State assessments represented the largest share of

USApple’s budget, supplying 70 percent of revenue. The

annual Apple Crop Outlook & Marketing Conference was the

second largest contributor to USApple’s budget.

The Government Affairs and Education/Crisis Management

programs are the top priorities in USApple’s strategic plan and

represent the largest share of the association’s expenditures.

In addition, USApple administers financial accounts for the

Tree-Fruit Technical Advisory Council (TreeTAC), a group of

technical industry experts who work to ensure that potential

imports of deciduous tree fruits from the international market

pose no insect or disease threats to our domestic production

areas or food safety concerns to our domestic markets. The

program is separately funded through voluntary contributions

from USApple and the Northwest Horticultural Council.

Jim BairPresident & [email protected]

Diane KurrleSenior Vice [email protected]

Jessa Allen, CAEDirector, Membership

& [email protected]

Korenna WilsonDirector, Consumer Health

& Media [email protected]

Mark SeetinDirector, Regulatory &

Industry [email protected]

Tiffany VasquezOffice Manager

[email protected]


ASSOCIATION STAFF

U.S. Apple Association7600 Leesburg Pike, Suite 400 EastFalls Church, VA 22043703.442.8850USApple.org

The national voice of America’s favorite fruit

Documents

ANNUAL REVIEW - U.S. Apple Associationusapple.org/.../2017/11/2017USAppleAnnualReview.pdf · when silly special interests attack. ... so we must shift between defense and offense