Official Newspaper of the New York Apple Association .... Apple Export Councl ... shopping channel in Shanghai and the e-commerce ... [email protected] todd Furber, Vice Chairman,

Paul Baker looks at minimum wage question world wide....................................... Page 4

New York Farm Bureau joins co-alition to fight against minimum wage hike proposal...................................... Page 5Apply now for U.S. Apple Asso-ciation’s Young Apple Leaders program....................................... Page 6

NYAA’s public relations team keeps apples in the news during harvest....................................... Page 9Budget cuts jeopardize crop in-surance program..................................... Page 10Apple industry turns out at New York Produce Show..................................... Page 11

NYAA continues its relationship with TCS NYC Marathon..................................... Page 13

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In this Issue

7645 Main StreetPO Box 350Fishers New York 14453-0350

Official Newspaper of the New York Apple Association Volume 4, Issue 7 December 2015

Inside: International trade battle brews with Mexico.

Page 12

USAEC China trademission summaryU.S. Apple Export Councl

Throughout this fall’s U.S. Apple Export Council trade mission to China, a key theme was emphasized numerous times:

China is hungry to new varieties of apples. Fuji is a variety that is grown in large quantities within China. Flavor preferences can vary in different regions of the country, and in fact, it would be a prudent approach to view China as an amalgamation of several markets (akin to different countries and cultures in Europe) rather than as one monolithic market. Traditional wholesale and retail distributions streams are strong within China, as is the relatively new e-commerce sector that ships fresh fruit directly to consumers via platforms such as T-Mall (owned by Alibaba), YHD (Yihaodian, owned by Wal-Mart) and FruitDay.

Saturday, Oct 31USAEC participants arrived in Beijing: Diane Smith, Executive Director, Michigan

Apple CommitteeJim Allen, President, New York Apple

AssociationMark Girardin, President, North Bay

Produce, Inc.Sarah Yancho, Export Sales, North Bay

Produce, Inc.Kurt Gallagher, Executive Director, U.S.

Apple Export Council

Morning meetingsThe trade mission officially began with a series

of meetings at the Business Center of the hotel. Phil Shull, FAS Minister-Counselor in China met with the delegation to welcome them and to offer his insights on the Chinese market. Afterwards Bruce Zanin, director of the Beijing ATO provided an introductory briefing on the Chinese market.

First the delegation met with Candice Liu of FruitDay. The company is based in Shanghai and distributes to a number of other cities. FruitDay operates 60 offline retail stores, a platform on a TV shopping channel in Shanghai and the e-commerce site www.fruitday.com. The company sells directly to consumers and 70 percent of its business is imported fresh fruit.

Afterwards the delegation was joined by representatives from Beijing Wenfeng Shengda Trading Co., Ltd.; China Processed Food Imp. & Exp. Co. , Ltd. (COFCO, a state owned enterprise that is the biggest fruit company in China); Shenzhen Golden Wing Mau Agricultural Produce Corporation; Beijing Golden Famous International Trading Co., Ltd. and Beijing HTHA Trading Ltd. The delegation split

See China, Page 15

Page 2 Core Report® December 2015

Retail ReviewNews from the retail marketing industry

Sale of subletted stores could raise $28M for A&PSupermarket News

A&P has asked the court overseeing its Chapter 11 bankruptcy case to approve sales of 10 subletted leases that would raise nearly $28 million for its estate.

The so-called “sandwich leases” cover former A&P store spaces since rented to other users.

TJX Companies, operator of the Marshall’s and TJ Maxx stores, was named high bidder for two properties, including a site in Norwalk, Conn., operating as a TJ Maxx store receiving a bid of $17.525 million. TJX also made a top bid of $5 million for the lease of a former Pathmark site in Commack, N.J., which currently operates as a TJ Maxx.

Other bidders include Big Lots (Lexington, Md.) and real estate company Balboa Retail, which bid for five leases, court documents show.

In other events in the case, Judge Robert Drain approved the sale of

A&P’s Edison, N.J., store to Tawa Inc., operator of the 99 Ranch Market chain.

C&S Wholesale announces Pa. projectandnowuknow.com

HARRISBURG, Pa. - C&S Wholesale Grocers, Inc. appears to be bouncing back with the purchase of a Pennsylvania facility with plans to invest upwards of $15 million into the project.

This is a move that will create a minimum of 500 full-time jobs in the area, according to a press release, a happy turn around following the company’s recent need to make nationwide cutbacks.

“Today we are pleased to officially announce the creation of 500 new, full-time jobs through C&S’s expansion project,” Pennsylvania Governor Tom Wolf stated in the release. “The reuse of this shuttered facility is a huge win for the commonwealth and the Lehigh Valley region, and serves as

a prime example of the importance of remaining engaged in securing new employers and opportunities to yield positive economic impacts for Pennsylvania.”

In addition to the hundreds of new full-time positions, C&S Wholesale reported it will also be retaining its 1,980 existing employees statewide over the next three years.

According to the governor’s office, the project was coordinated by the Governor’s Action Team, a group of experienced economic development professionals that work with businesses considering locating or expanding in Pennsylvania and reports directly to the Governor.

C&S Wholesale received a fundraising proposal from the Department of Community and Economic Development, which included Job Creation Tax Credits amounting to $1,290,000 to be distributed upon creation of the new jobs.

Publix announces new Fla. locationandnowuknow.com

TAMPA, Fla. - After over a decade of wooing, Publix has finally confirmed it

will be opening a new location in Tampa Florida. The 37,600-square-foot Publix store is expected to open in the fall of 2017, and will be part of an $80 million to $90 million development project.

“Publix is excited about the opportunity to serve the Channel District community,” a Publix Spokesman emailed the Tampa Bay Business Journal. “While there is still work to be done, including final contracts and the permitting process, we are confident that all parties want to see the successful completion of this project. We are thankful to the mayor for his continued commitment and focus on the culture and diversity of Tampa and the Channel District area.”

Ken Stoltenberg and Frank H. Bombeeck, the heads of store-developer Mercury Advisors, have worked for 13 years to bring a grocery store to the Channel District, according to the Tampa Bay Times. The developers say the store will be paired with a planned 21-story apartment tower in a project known as the Channel Club. Construction for the $80+ million project is set to being this upcoming spring.

“This really drives home the reality that downtown Tampa has become a place to live, work and play,” Tampa Mayor Bob Buckhorn shared with the

December 1NYC Produce ShowJacob Javits Expo CenterNew York

December 8-10NYFB Annual MeetingThe DesmondAlbany

December 15-16NYAA Board of Directors Mtg.Crowne Plaza Syracuse

December 8-10NYFB Board of Directors Mtg.Albany

February 1, 2016Lake Ontario Fruit Winter SchoolNiagara County

February 2LOF Winter SchoolNewark

February 15Northeastern NY Winter Tree Fruit SchoolFort William Henry Conference CenterLake George

February 16-17Hudson Valley WinterFruit SchoolGarden Plaza HotelKingston

February 23-24NYAA Board of Directors Mtg.The DesmondAlbany -2/23: Legislative Visits -2/24: Board Meeting

February 29Taste of New York Legislative ReceptionAlbany

march 1NYFB Lobby DayAlbany

march 3-5USApple – Capitol Hill DayUSApple MeetingsWashington, D.C.

august 25-26Apple Crop Outlook & Marketing ConfenceRitz CarltonChicago, Ill.

Calendar

December 2015 Core Report® Page 3

By Molly [email protected]

The holiday season is upon us once again; it is mind boggling that another year has passed so quickly.

This season we are fortunate to have another beautiful crop to promote. Retailers and c o n s u m e r s

core report® is published monthly by the New york

apple associationas a member service.

New york apple assn.contact

7645 Main St., Fishers, NY 14453-0350Phone: (585) 924-2171, Fax: (585) 924-1629www.nyapplecountry.com

StaffJames allen, President,[email protected] Zingler, Director of Marketing,[email protected] Willis, Executive& Communications Assistantellen a. mykins,Accounting Dept.susan sarlund,Northeast Account ManagerLinda Quinn,Nutrition SpokeswomanJulia stewart, Public Relations Directorand NYAA spokesperson, [email protected]

board of DirectorsWill gunnison, Chairman, District 1, Crown Point,(518) 597-3363, [email protected] toohill, District 1, Chazy, 518-846-7171,[email protected] chiaro, District 2, Hudson, (518) 828-1151,[email protected]

David Jones, District 2, Germantown, 518-537-6500,[email protected]

alisha albinder, District 3, Milton, (845) 795-2121,[email protected]

Kurt borchert, District 3, Marlboro, 845-236-7239,[email protected] sarah Dressel, District 3, New Paltz,(845) 255-0693, [email protected] torrice, District 4, Oswego(315) 342-3793, [email protected]

richard endres, District 5, Sodus(315) 483-6815, [email protected] Furber, Vice Chairman, District 5, Sodus(315) 483-8529, [email protected]

chris hance, Treasurer, District 5, Pultneyville,(315) 589-4212, [email protected]

abram Peters, District 5, Pultneyville,(585) 455-3600, [email protected]

Kevin bittner, District 6, Barker, 716-795-3030,[email protected] stannard, District 6, Medina, 518-477-7200,[email protected]

Jason Woodworth, District 6, Waterport, 585-682-4749, [email protected]

President’s Message

By Jim [email protected]

Last month I talked about our planned trip to China and mentioned that I would tell you how the trip went this month.

Being forewarned, here it is.Our cover story, written by Kurt

G a l l a g h e r (USAEC), is a very specific and detailed account of our week-long trip. I will skip the details and just give you some overview c o m m e n t s about the country, the p o t e n t i a l m a r k e t ,

and the realities of New York doing business in the Peoples Republic of China. First of all, the potential is massive just based on pure economics of the economy and the huge mass of prospective buyers.

Unless you have witnessed this first hand, it is almost impossible to comprehend the size and the buying power that China has. Fact is, without seeing it I would not have believed it. We visited only three cities that collectively have a population of over 92.5 million souls! The largest was

Guangzhou (45 million) and this by far was the center of the wholesale produce trade for the country. It is the largest city in China with the largest wholesale market, largest importer and trader base, and supplies a good portion of eastern China.

When I thought of China in the past, I envisioned millions of square miles of vast wasteland, overpopulated crowded cities with deteriorating housing, and a crumbling infrastructure. I did not see much of that at all. Sure, there are lots of people, very crowed highways, and traffic jams, which we are all familiar with here; but a quick look would suggest a productive economy and infrastructure. A closer look would suggest that the market is eager to expand and eager to grow. A number of the companies we met with were new over the last few years. An old wholesale company or importer might have roots back to mid-1990 or early 2000. Not that old! Everyone we spoke with is on a growth pattern and each year seems to expand. The largest wholesale market was a couple of years old, yet now at capacity and looking to once again either move or expand. The market is definitely growing and looking for more suppliers with new products.

Will those supplies come from the U.S.? We hope so and we certainly

Jim Allen

Branching Out

Molly Zingler

The China story

Looking back on exciting yearWAVY-TV

PORTSMOUTH, Va. – In the kitchen today we had a little healthy Halloween fun with Heidi Mitchell from the Military Produce Group and Linda Quinn from the New York Apple Association.

They made Scary New York Apple Witch’s Teeth and Easy Caramel New York Apples which are healthy and tasty alternatives to Halloween candy.

You find all these great top-quality New York Apples at all the local Hampton Roads Commissaries.

Also find these great recipes and much more at MilitaryProduce.com

This segment of The Hampton Roads Show is sponsored by Military Produce Group.

NYAA nutrition spokeswoman Linda Quinn, right, participates in a news segment on Vir-ginia’s WAVY-TV.

See Allen, Page 14

See Zingler, Page 14


By Paul [email protected]

Thanksgiving has always been one of the most important holidays to me personally. As a member of a family tradition of over five generations as farmers this marked the culmination

of a yearlong effort. My goal each year was to be able to sit down at this traditional feast and reflect on the months of sacrifice and effort to grow the year’s crop. To be honest I was always humbled and

exhausted by the enormity of the yearlong task.

I was asked once by someone who was not in our line of work what I enjoyed? I gave this some thought and then said the following. I look forward at the very end of harvest. Each crop is harvested and now safely in storage. I wished for one nasty, windy, stormy night. The kind that beats against your bedroom windows with a vengeance. I could just lie there and smile. I would tell Mother Nature to have at it! I had dueled her all year and I was safe. She had not beaten me. If you ever farmed you know the feeling. To the rest of you there is no way you can fully appreciate the thought.

I think we need to reflect on 2015 and be grateful for many factors that did flow our way.

The final tally is not yet in but it appears we have fought our way to close to another 30 million bushel crop of apples here in New York. We must have those bushels if we are to be successful.

I think we need to be grateful for the support we have received to generate those 30 million bushels. We have again in 2015 received extra funds from the New York legislature to help promote and sell those same apples. Over the last two years we have been granted $1 million dollars to be applied

to research to help us learn to be better producers. We are now harvesting in some volume two new varieties. Because of years of research we all are planting new orchards with higher yield capacity and quality. Yes we are better off.

I am sure you agree with me that we

are in a very good place. We have much to be thankful for. The New Year will be upon us before we are ready for it. I suggest for the present we lie back and smile and let Mother Nature have her way outside our doors.

Happy Thanksgiving and Seasons Greeting to each of you.

Baker

The Hort ReportNews from the New York State Horticultural Society

Thanksgiving 2015By Paul [email protected]

We hear a great deal of discussion about the minimum wage here in New York.

It will rise to $9 an hour on Jan. 1, 2016. The federal will remain at $7.25 an hour. This means that we will be 24 percent above the national minimum wage. There is discussion about raising our state minimum wage to $15 per hour. If we did this we would be 107 percent above the national minimum.

Just for reference I checked some other states and countries of common business interest to us all. Washington State is currently highest at $9.47 per hour in 2015. There are several states that stay at the Federal minimum level. (Pennsylvania to our south is one) Other states of interest are California at $9, Michigan at $8.15, Florida at $8.05 and Texas at $7.25. California is raising the state one dollar to $10. This will be the first change in five years.

I was curious if other nations had a minimum wage. Canada has one but varies by province. The Canadian average is $9.27. Mexico is at $.62, Jamaica is $1.26, China is $2.12, Japan is $6.54, Viet Nam is at $.54 with India being the lowest country that imposes a standard at $.28.

I was asked to call in on a conference call originating out of Albany. The topic was the increase in the minimum wage to $15 per hour. Those on the call were from all different sectors of the business community. I do not know if those on the call were feeling political pressure to agree to this or not.

I asked the group to tell me how New York would be at a better place if we rose to over twice the Federal standard. The answer was twofold. First if we did we would significantly reduce the welfare and medicare costs here in the state. Second we would see a huge spike in business as people would have more money to spend. I will allow each of you to assess the wisdom of these arguments.

I was in a conference with Rep. Chris Collins, R-Clarence, and a person made the same argument about raising the minimum wage to stimulate the economy. He said with that logic he could not see if going to $15 would stimulate this economy

we should not stop there. He would support it being $50 an hour. This would certainly give this sluggish economy a boost. I think his point shows the error in their logic quite clearly.

As we exit 2015 I want each of you to be aware that there is a very strong coalition in Albany that feels we would be a better place if we did raise the minimum wage to $15 an hour. They feel they have the best interest of every person who goes to work in this State. They have been delayed in recent years to obtain their goals. I want to be very clear that they feel equally strong about their goals as you do in defeating their agenda. We must be willing to debate and legislate to keep this from happening. This is an issue that if not opposed will dramatically alter every part of our economy.

I end by echoing that minimum wage is a starting wage. It never has nor should it be considered a “living wage.” We cannot survive in a free enterprise economy if we keep lowering the bar to raise every one up regardless of their contributions. Our goal should be to provide the opportunity to improve based upon each person’s ability and effort. I do not think that we owe all people in our state to have a 107 perent advantage over those in Pennsylvania or Texas.

Minimum wageLabormattersNews fromAgriculturalAffiliates

Enter raffle, help study precision ag in N.Y.Cornell Univeristy

Cornell University is privileged to be conducting a study on the impacts and growth potential of precision agriculture at the specific request of New York policy makers interested in understanding the usage and how to better promote agricultural technology.

As a significant first step, professors Harold Van Es and Josh Woodard have constructed the survey below to assess the accessibility of precision agriculture tools and availability, as well as additional needs that farmers see as a barrier to adoption of precision agriculture tools.

Information will be kept strictly confidential. In this survey, precision agriculture refers to technologies that allow producers to better manage

field sites through consideration of spatial and temporal variations. They rely on management technologies like geographical information systems, global positioning systems, crop and soil sensors, variable rate technologies for fertilizer, pesticide, and seed applications, high-resolution weather data, aerial and satellite images, use of unmanned aerial vehicle (UAV, aka drones), etc.

It’s important to assess both availability of precision agriculture tools and accessibility (for example, ability

of farmers to access broad band) as well as desire of farmers to utilize precision agriculture tools to improve profitability and environmental sustainability.

While most policy makers think of precision agriculture as something just for the row crop sector of agriculture, fruit farmers have also been utilizing precision agriculture tools for many years. The fruit grower perspective will inform future research and education programs.

Participants will have the opportunity to enter a raffle at the end of the survey for a new iPad 4 mini, and most importantly, contribute to policy makers understanding of usage of precision agriculture technology in New York.

The survey link is here: https://cornell.qualtrics.com/jfe/form/SV_2sOKaeyjlyPh7O5


By Frank Gasperini National Council of Ag Employers

Fruit growers are challenged every season by weather, pests, and

unpredictable input costs along with the need to compete with p r o d u c e r s from other c o u n t r i e s in our increas ing ly g l o b a l marketplace. As challenging and as these cultural and m a r k e t i n g

pressures are, most growers will tell you this is what agriculture is all about.

The constant and growing regulatory and legal pressures on U.S. agricultural employers however are not generally considered among the more welcome challenges growers must overcome to successfully maintain operations. The unique pressures agricultural

employers face because of your role as employer often pose greater, and more difficult to manage risks to your business than agronomic, biological, and marketing pressures combined.

In 2016 agricultural employers will contend with continuing uncertainties in H-2A approvals and documentation, full implementation of the Affordable Care Act, and the continuing failure of Congress to positively address the fundamental flaws in our immigration system that could alleviate many agricultural employer issues. Adding the volatility always inherent in a Presidential election year and newly resurgent security concerns pours gasoline on an already smoldering pile of employer concerns.

In general, the current administration is the most labor and union friendly administration since FDR. In 2016 expect to see no drop-off in auditing by Wage and Hour, OSHA, DOT, and other agencies. As states continue to look for funding, they will continue with increased levels of inspections and “document stops,” thus turning enforcement into profit centers. Assume that you will be stopped for

documents, log-books, tax, labor, and other records at any given time, be ready with all the necessary and up-to-date documentation.

Your only sure defense is to be absolutely sure that you are completing and retaining all your payroll records, timekeeping, and pay stubs properly. There are differences for H-2 and non-H-2 employees, but if you have H-2 employees and domestics doing any of the same work the H-2 pay-rates and time offered will apply. In 2015 a lot of employers got caught-up in innocent mistakes and oversights, or just got behind on documentation. To most regulatory agencies the cause does not matter, violations are violations and will cost you time and money.

Managing government issues is unlike managing your orchard, farm, or operations in that the only path to success lies in working together, usually through your state and national associations. Because of our low population versus other industries, agriculture is too often overlooked in the legislative and regulatory process. Even though American farmers continue to be the most productive producers of the

safest, most abundant, and economical food in the world, our legislatures and regulators too often overlook our needs unless we work together Washington, D.C., and state capitals.

Instead of being discouraged or angered by the issues discussed here, resolve to support and actively participate in your state and national crop industry and agricultural employer associations to proactively support your needs.

Your associations can help avoid bad legislation and regulation, change existing policies, and educate you on compliance and risks to allow you to spend your valuable time and effort continuing to be the most productive food producers in the world.

The author is Executive Vice President of the National Council of Agricultural Employers NCAE is the national trade association representing Agricultural Employers in Washington, DC. NCAE will offer updates on Congressional and federal regulatory issues important to Agricultural Employers. E-mail him at [email protected] , or visit our website at www.ncaeonline.org

Gasperini

The challenges of beingagricultural employers in 2016

New York Farm Bureau Among CoalitionLeaders Pushing Back on $15 Minimum WageBy Steve [email protected]

New York Farm Bureau is among the leaders of a coalition of business groups that are aggressively pushing back on a $15 minimum wage for New York.

The coalition held a news conference in Albany last month to kick off the “Minimum Wage Reality Check” campaign. It brought a host of farmers and

small business owners together to tell their stories about what the impact would be for them should New York State enact a $6 wage hike in the minimum wage.

New York Farm Bureau President Dean Norton highlighted the economic analysis from American Farm Bureau Federation that revealed it would be a $500 million increase in labor costs and a 25 percent reduction of farm net income.

“That is significantly less money that farmers will have to reinvest into their farms or spend at the local feed and tractor supply stores that rely on farm business,” Norton said.

New York Farm Bureau member Brian Reeves, who is also President of the New York State Vegetable Growers Association, spoke as well saying a $15 minimum wage would put farms in peril and drive business out of the state. He also stressed how it would make New York farms uncompetitive with growers in other states.

“We are looking at a situation to increase food prices 25 to 50 percent. New York would be an island,” Reeves said. “This would have dire consequences for the vegetable industry in New York.”

President Norton stressed this issue as well. He used the Union Square Green Market in New York City as an example. Farms from a half-a-dozen states sell their products at the large farmers’ market. Farmers from New York can’t raise their prices by double digits there to recoup their higher labor costs and still expect to compete.

Norton added that it won’t just increase wages for

those making the minimum, but all wages on the farm will rise in order to keep experienced employees. This is on top of additional payroll taxes and workers compensation that will dramatically rise as well.

“You can’t expect a worker who already makes three or four dollars above minimum wage to stay at the same wage rate when those with less experience are seeing a big bump,” Norton said.

In addition to the farming community, the Business Council of New York State and National Federation of Independent Business were among more than two dozen organizations represented in the coalition including those from the tourism, homebuilder, restaurants, and convenience store industries and chambers of commerce from across the state.

Speakers included the Ben and Jerry’s franchise owner from Saratoga Springs, the COO of the Fort William Henry Hotel in Lake George, GNH Lumber in Greene County and the owner of Roto-Rooter

Sewer Service in Binghamton. Each talked about the possibility of laying off employees and declining service should this large wage hike happen.

“I don’t want to say this is a death sentence for us, but it is hard to sell ice cream in the Northeast. We have a six-month window to carry us through the rest of the year,” said Patrick Pipino, of Ben & Jerry’s in Saratoga Springs.

The Business Council estimates that a $15 minimum wage will cost businesses statewide a total of $16 billion.

“If this was a tax increase the discussion would be over,” said Ken Pokalsky, Vice President of the Business Council.

New York Farm Bureau will continue to play an active role in the campaign. You are urged to follow it on Facebook and Twitter under the name “Minimum Wage Reality Check.” Also, you can e-lobby your lawmakers on the issue by going to www.nyfb.org.

New York Farm Bureau President Dean Norton speaks at a November news conference in Albany to kick off the ‘Mini-mum Wage Reality Check’ campaign.


Grooming the next generationof Young Apple Leaders By Jessa AllenU.S. Apple Association

We continue to see that the next generation of apple growers, packers, marketers and others in the apple industry are choosing a career in their family operations, reversing a trend from the late 1990s that lasted well into the 2000s. These men and women are smart, articulate, and eager for information and connections. They are on-the-go multitaskers who are highly motivated to adopt new technologies and try different approaches. These young people will be the future decision-makers in their businesses, communities, and at USApple.

U.S. Apple Association’s Young Apple Leaders Program, now in its seventh year, equips the next generation of

A m e r i c a n apple growers and leaders with an understanding of how federal r e g u l a t o r y and legislative issues directly affect their apple business. It is designed to foster fellowship and cooperative working relationships across U.S. apple growing regions through discussions about key apple industry issues, trends, research and other activities. Importantly, it also identifies and develops future leaders for the apple industry.

Young apple growers who are at the start of their career through approximately age 35 are eligible to

p a r t i c i p a t e . Y o u n g growers also involved in apple packing, s h i p p i n g , sales and marketing are e n c o u r a g e d to join the

program. Each class of Young Apple Leaders includes members from diverse apple-producing states.

At least 10 young growers from the apple industry are selected to participate each year in the Young Apple Leaders Program. They attend USApple’s annual Capitol Hill Day and the association’s other apple meetings in Washington, D.C., in March.

The Young Apple Leaders Program

is made possible with support from sponsors who fund the program and cover all associated costs for the participants. In your industry dealings, please remember the following who support the leadership development of the next generation of our industry: Farm Credit East, Knouse Foods Cooperative, Michigan Apple Committee, New York Apple Sales, Northwest Farm Credit Services, Ohio Apple Marketing Program and Tree Top, Inc.

If you are interested in becoming a Young Apple Leader, or know someone who would be a strong candidate, applications for the 2016 Class of Young Apple Leaders are now available. For more information or to obtain an application, contact Jessa Allen at [email protected].


This holiday New York Apple Association advertisement appears in trade publications encouraging retailers to continue offering New York apple varieties to theirconsumers.

season’s eatings


Gov. Andrew M. Cuomo last month joined Gov. Alejandro García Padilla to announce the grand opening of the New York State Office of Trade and Tourism in Old San Juan, Puerto Rico.

The office will promote mutually beneficial tourism opportunities and strengthen economic ties between the

state and the island. The office includes a New York State Discovery Center, which will offer residents and visitors a New York experience, with a Taste NY and I Love NY store promoting New York-made and produced products. Today’s announcement follows an aggressive action plan launched in September to foster a mutually

beneficial economic development relationship between Puerto Rico and New York.

“New York has always had a special connection with Puerto Rico – and today we are taking a step to make that relationship stronger than ever,” Cuomo said.

“This office is a new gateway to the

Empire State, where trade and tourism partnerships can be developed and people in Puerto Rico can get a taste of what New York has to offer.

“This is the beginning of an exciting new chapter in our state’s long and close history with Puerto Rico, and I’m eager to see it grow in the days to come.”

PMA’s Silbermann to retireThe Produce News

Bryan Silbermann, longtime chief executive officer of the Produce Marketing Association, will relinquish day-to-day operational responsibilities to association President Cathy Burns in 2016 and will officially retire from the organization in early 2017.

In a conference call with The Produce News, Silbermann revealed that the general succession plan and retirement date was established on Dec. 1, 2013, when Burns was hired as president.

“PMA’s Executive Committee approved Cathy’s hiring as my successor with the knowledge of my intent to retire on January 31, 2017,” Silbermann said.

Initially, the plan was to have Burns transition into assuming the day-to-day operations at some point in 2016, presuming that she met the expectations of the board as president and that the job was to her liking. Silbermann said she “exceeded the expectations of the board,” which has

led to the expanded role, effective Jan. 1, 2016. He said the staff will report to her as of that date.

Silbermann will maintain the CEO title and work on specific projects for the organizations during the year-long transition period. On Jan. 1, 2017, Burns will be named CEO and Silbermann will officially retire one month later.

During the transition year, Silbermann spelled out six areas in which he will concentrate his efforts, including offering “advice and counsel” as Burns needs it and “representing PMA at our events worldwide — both in and outside of the United States.”

He will also reach out to the membership and conduct additional face-to-face meetings of the association’s regular members to help them maximize the value of their PMA membership. Silbermann is also planning to work very closely with the Center for Produce Safety on its relatively new governance structure, which has it operating as a separate

foundation apart from the University of California-Davis.

During this year, PMA is also intent on expanding its collaborative efforts with other trade associations, especially the United Fresh Produce Association. Silbermann said the two organizations worked very closely on their response to the rules regarding the Food Safety Modernization Act, and that collaboration will continue.

Finally, the PMA CEO will work with current staffer Kathy Means and retired PMA veteran Duane Eaton to update the history of the association, which will eventually be available to the industry in some type of digital format. He said there is a lot of “institutional knowledge” that the trio will attempt to capture for the benefit of the organization and its membership.

Burns noted that during this year she will continue to implement PMA’s strategic plan 2.0, and be the primary contact between the PMA board of directors and staff.

“I will also have my eye on leading

PMA’s long-range growth,” she said.The former supermarket industry

veteran, who held a variety of senior management roles in the corporate world for many years, said she has very much enjoyed working for the industry at large as opposed to concentrating her efforts for one employer, as she did for most of her career.

The 61-year-old Silberman joined PMA in 1983 as manager of international trade and market research. He came from the financial industry with no produce industry background. After rising through the ranks for more than a decade, he was elevated to the top spot at PMA on July 1, 1996, when longtime CEO Robert Carey retired. Silbermann said he has been pointing toward a retirement date in this general vicinity for more than a decade.

“And I am retiring, I am not consulting,” he quipped, noting that while he might take on some small projects upon his retirement, his main focus is to retire.

State opens ‘I Love NY’ store in Puerto Rico


Breaking news helps NYAAkeep new crop top of mind By Julia [email protected]

The New York Apple Association’s public relations team began promoting the 2015 apple harvest while the crop was still on the trees, sending numerous news updates to consumer media outlets across the state to encourage them to report on New York apples.

The association’s spokespersons began beating the 2015 crop’s drum at blossom, and that work has continued throughout the summer and into the fall.

In August, NYAA invited media outlets to attend and report on NYAA Nutrition Spokesperson Linda Quinn’s annual presentation at the Great New York State Fair. As a result, Quinn appeared on all broadcast stations in Syracuse.

At the beginning of September, NYAA announced that harvest was now underway statewide, and reported that greater variety and ample supplies could be found this year at grocery stores, farm stands and farmers’ markets. NYAA’s harvest communications also drove consumers to the locator map on NYAppleCountry.com, which helps consumers find local apples and cider.

“Apple fans, this is your signal to get your taste buds ready – the country’s best apples are on the way,” NYAA President Jim Allen told media outlets then.

NYAA carefully positioned news of a slightly smaller crop, stressing that what consumers would notice is more of their favorite varieties. NYAA also urged New Yorkers to buy local apples and cider. “Apple fans don’t have to look any further for great apples,” Allen said.

In September, NYAA’s Quinn made numerous live in-studio appearances on morning and noontime television talk shows around the state, reporting on the latest apple health news and 2015 crop details.

NYAA also capitalized on opportunities to report breaking news throughout the harvest window. The association announced release in November of a new video designed to reach New York City schoolchildren and their families. In October NYAA reported winners of its school recipe contest, highlighting the local news angle to get media outlets’ attention. NYAA also publicized its first 2015-crop community relations event: sponsoring the 2015 TCS New York City Marathon. New York state McIntosh is the official apple of the marathon.

In addition to reaching out to consumer media outlets several times during harvest, NYAA also worked to generate editorial coverage of New York state apples in produce industry trade publications that reach wholesale buyers. The association announced Susan McAleavey Sarlund had been chosen to succeed her father John as NYAA’s Northeast account manager, to be assisted by her brother John Jr.

The state’s industry was also highlighted in a special section to The Packer, and NYAA spokesperson Julia

Stewart was quoted and referenced extensively in an article about the U.S. apple industry in October’s Blueprints magazine.

“By putting New York state apples and cider in front of the consumer and trade reporters repeatedly during our harvest window, we not only encourage them to cover us during our most important time of year, we can also repeatedly convey the key messages

that we want them to share with consumers and retailers,” Stewart said.

NYAA invites you to tailor any of our plans to help promote your business. For more information or assistance with social, media and other public relations, contact NYAA Public Relations Director Julia Stewart by email at [email protected] or by telephone at (703) 727-8808.

Public Relations

By also posting about it on Facebook, NYAA helped bring more consumer attention to a Price Chopper blog post written by Marketing Director Molly Zingler. NYAA’s Facebook feed now has more than 26,000 fans.

New reporter tools unveiledBy Julia [email protected]

With harvest now concluded in New York, the New York Apple Association public relations team has turned its attention to winning media coverage for New York apples for as long as that fruit is in the marketplace.

“We get great coverage during harvest, but we’re now a three-season food. So we have developed new tools to help reporters cover us at non-traditional times of year, and as more than ‘just’ a food story,” NYAA’s Julia

Stewart said.A new calendar educates reporters

about goings-on in New York state orchards month by month – and in the process conveys the year-round involvement and professionalism of today’s growers.

A list of suggested story ideas makes the case that New York state apples are about more than great taste and good looks.

Suggested story topics include the industry’s economic impact, our local impact, industry’s use of technology, and key industry issues including immigration reform. The new reporter tools are posted to the Press Room section of NYAppleCountry.com.

The Press Room also directs reporters to NYAA’s Flickr photo-sharing site, where NYAA offers an extensive library of photos from harvest to recipes to encourage consumer media outlets to report on New York apples.

Share your best photos

Have a great picture of apple growing, harvesting, packing or marketing, or cider and cider making, that you’d like to donate to NYAA’s photo library? Email a high-resolution color JPG to [email protected].

One example of the high-quality images that the New York Apple Association makes available to consumer media outlets.


The established and the futureI “snapped” this picture (no pun

intended) at a Whole Foods Market this week in Northern New Jersey. Yes, the display was beautiful and touted “local” which is great for our apples but, what really caught my eye was the power of Cortland apples standing strong behind our new variety SnapDragon.

Generally speaking, consumers get excited about “new” items in supermarkets and suppliers, or in this case growers, see them as a way to grow their brand or business. Having worked in both trade marketing and field sales at one of the most recognizable consumer goods companies for seven years, I am all too familiar with new varieties.

At Nabisco, not only did we produce and sell Chips Ahoy cookies, but we also introduced Chewy Chips Ahoy, Chunky Chips Ahoy, Chips Ahoy with Peanut Butter Chips and on and on. All of these line extensions (as they are referred to in their business) have gone on to be solid items in their line up of varieties while the original blue bag of Chips Ahoy stands strong in the background.

We are very excited to have New York

S n a p D r a g o n apples to support in the New York m a r k e t p l a c e . Our target audience, like all consumers, are looking for what’s new and different and we have something to offer them. With its sweet

and juicy flavor, “monster crunch” and one of its parents being the hugely successful Honeycrisp, we hope to have a lot to look forward to with this new variety.

This Thanksgiving time we have a lot to be thankful for with respect to New York apples. We have the tried and true stalwarts like the Cortland (developed at the New York State Agricultural Experiment Station in Geneva in 1898) and the newly introduced SnapDragon (10 years in the making and developed by Cornell University’s apple breeding program). Here’s to a solid combination of the established and the future.

Good Selling!

Sarlund

Crop insurance in cross hairs for budget cutsBy Diane KurrleU.S. Apple Association

In late October, Congress passed a two-year budget deal which included

an increase in the nation’s debt limit through March of 2017. This was the last major action taken by Speaker John Boehner (R-Ohio) before leaving office and was viewed as a positive for

incoming Speaker Paul Ryan (R-Wisc.) who would not have to immediately deal with the prospect of a government shutdown.

In addition to increasing the debt limit, the agreement also made some cuts and one of them was to the federal crop insurance program. The formula for the cuts was directed at crop insurance agents, not the growers. However, over time this would lead to further consolidation of the industry and would threaten to weaken the program and hurt producers.

The provision was not cleared with the Chairs or Ranking Members of the Agriculture Committees and they came out with a strong bipartisan and bicameral statement opposing the cuts. House Agriculture Committee Chair Mike Conaway, R-Texas, said, “The House Agriculture Committee was not consulted regarding any changes to policies under the jurisdiction of our committee.

This provision is opposed by an overwhelming majority of our committee members. It was debated and defeated during the 2014 farm bill process, and to move forward with it now breaks faith with the American producer.”

And Senate Agriculture Committee Ranking Democrat Debbie Stabenow, D-Mich., concurred: “These types of cuts only undermine the economic certainty that the Farm Bill provides. The Farm Bill made meaningful reforms to help reduce the deficit. Any attempts to reopen any part of

the Farm Bill to more cuts would be a major set-back for rural America and our efforts to create jobs.”

Agriculture groups including USApple voiced concern about potential damage to the crop insurance program but also strong opposition to the nearly unprecedented move of “opening up” the Farm Bill which was just negotiated and passed on a bipartisan basis less than two years ago.

As a result of the bipartisan pushback, the House and Senate leadership agreed to restore funding to the crop insurance program during the FY 2016 appropriations bill which has an early December target for completion.

USApple is an active member of a broad agriculture coalition working to ensure this promise is kept. The coalition is meeting with key members of the House and Senate leadership as well as members of the Agriculture and Appropriations Committees. The coalition also sent letters to the House and Senate urging support for the agreement and reminding them why crop insurance is so important.

“The alternative to a successful crop insurance system is often ad hoc disaster assistance, which is subject to the whim of Washington, is paid for entirely by the taxpayer, is not delivered in a timely manner, and may help a producer survive a disaster but does not help manage risk.” The letter was signed by 50 national agricultural organizations including USApple.

US AppleAssociationis online at

www.usapple.org


By Jim [email protected]

The New York apple industry gathered at Rochester Airport Marriott on Nov. 18 to attend the retirement reception for Ken Silsby. Since 2006, Ken has served as Eastern Technical Manager for AgroFresh, who sponsored the reception.

During the reception, Ken thanked all of those who contributed to his education and training, as well as, all who helped advance his career. At the closing, Ken traced his roots from growing up on a family farm in Gasport (Niagara County). After earning BS and MS degrees at Cornell, Ken worked several years in fruit farm management; initially in Western NY and leading him to a position in Michigan.

In the early 1980s, Ken worked as a field man for Belding Fruit Sales, Belding, Michigan. At the time, Belding managed the sales for several Michigan packers including Belding Fruit Storage. Ken became a member of the Lake Ontario Fruit Team (Cornell Cooperative Extension) in 1985, specializing in fruit maturity, storage, and marketing programs. During his ten year tenure with the Fruit Team, Ken coauthored the Extension Bulletin “Predicting Harvest Date Windows for Apples” with Dr. G. David Blanpied. The bulletin included “The Generic Starch-Iodine Index Chart for Apples” which has become the most widely used starch reference chart for assessing apple maturity in the Eastern U.S. and Canada.

Upon leaving Extension, Ken joined the Sun Orchard Fruit Company providing field services and quality assurance for the company and their growers in the Lake Ontario region. After Sun Orchard, he became Eastern Technical Manager for AgroFresh providing technical support for SmartFresh and Harvista sales programs. Since its introduction,

SmartFresh has become a standard postharvest apple treatment. Its use has greatly improved apple condition in storage and lengthened product shelf life. These have proven to be key factors enhancing the profitability of the Eastern apple industry.

Jim Allen, president of NYAA stated “Ken has been a tremendous value to the New York Apple industry for many years while he served on the LOFT in western New York.

“He specialized on maturity of apples and trying to determine the optimum picking dates for WNY varieties, which has never been an easy task. In private industry at Sun Orchards and Agro Fresh, his sincerity and his passion for his work always were visible. Thanks for the good work Ken and Good Luck in your retirement.”

Ken’s retirement becomes official on Jan. 1, 2016. He plans to continue consulting services for AgroFresh on a part time basis.

New york apples a hit at Produce show

Ken Silsby honored on his retirement from Agro-Fresh

The New York apple industry maintained a strong presence at December’s New York Produce Show in Manhattan Clockwise from top left: Booths from Red Jacket Orchards and Pavaro Cold Storage; Jim Allen and Molly Zingler join New York Commissioner of Agriculture Richard Ball in the NYAA booth; the Hudson River Fruit Distributors booth; John Cushing works in the New York Apple Sales booth. In the Fowler Farms booth, Mark Sharp and Lee Peters of Fowler Farms are joined by Jordan and Ron Cohn of Stanley Orchards.

From left, Ken Silsby, Bob Mathis and Jim Allen.


The trade battle behindyour Thanksgiving apple pieThe National Journal

The latest victim in a decades-old international trade war is that crimson peace offering gifted to a teacher and the quintessential ingredient of the most American of pies: the apple.

At the end of October, on a Monday, a union of Mexican farmworker activists called El Barzón rode horses and tractors onto the international bridge that joins El Paso, Texas, and Ciudad Juarez. Dressed in jeans and cowboy hats, the farmers threatened to block traffic until the Mexican government spoke with them.

“The countryside is in agony,” one sign read.

The farmers protested many things, like the murder of a former leader (assassinated by the government, they claim), as well as high energy prices. At the heart of their anger was the North American Free Trade Agreement, the 1994 pact that was supposed to boost both the U.S. and Mexican economies. It has done that—Ford recently announced it would invest $2.5 billion in a Mexican car plant; and in the first 10 years of NAFTA, U.S. merchandise imports to Mexico increased 226 percent. But what it has also done is destroy industries and displace millions of jobs on boths sides of the border.

As the world’s economy globalizes, and as countries sign trade agreements (like the new Trans-Pacific Partnership), nations increasingly compete for each other’s consumers. The winners stand to grow their market and make a lot of money. The losers are left with dead industries. Typically, that means people move to new cities to find work, and sometimes they move to new countries. The apple farmers of Chihuahua are beginning to understand this.NAFTA has pitted farmers in the states of Chihuahua and Washington against one another. They are the two largest apple-growing states in their respective countries, and their apples end up in everything from holiday ciders, to pies, to slices in a child’s brown-bag lunch.

Out of this fight has come an unlikely arbiter, a Mexican man who serves as the un- official apple ambassador between countries. His name is Leighton Romney, the blue-eyed, light-skinned second cousin of former presidential candidate Mitt Romney (Mitt’s father and his father were first cousins). “Ever since NAFTA was signed,” Romney says in an accent more Texan than Mexican, “if it’s not one thing, it’s another.”

NAFTA’s goal was to make all North America one large market. It did this by re- moving the tariffs each country placed on imports to give locals the advantage. One result, says Christopher Wilson, deputy director of the Woodrow Wilson Center’s Mexico Institute, was that the smaller farms died out, unable to compete on an international scale. In Mexico, he says, that led to “significant migration away from rural areas and small farms.”

The best example of this is corn. Farmers here were much more mechanized when NAFTA passed, and from 1995 to 2012 the United States gave $85.4 billion to farmers just to grow corn. Mexico doesn’t

subsidize its farmers like that. As Mexican markets ran awash in U.S. corn, more than 2 million Mexicans left the countryside. In a few years, rural poverty jumped from 37 percent to 52 percent, according to a study by the World Bank. The poor fled to major cities, and many came north to the U.S. From 1990 to 2000, the Mexican immigrant population in the U.S. more than doubled. Not all of that can be directly tied to corn or to NAFTA. But the World Bank reports that part of the rise in rural poverty—which was the No. 1 reason for immigration— could be blamed on ”the sluggish performance of agriculture, stagnant rural wages, and falling real agricultural prices.”

“One of the major complications of this is that if you have a strategy based on opening up competition, then the question becomes, ‘What do you do with the losers?’ “ Wilson says. “That’s something that Mexico hasn’t been good at—and the U.S. hasn’t been good at. No one has.”

The apple conflict has been delayed until now because Mexico called Washington state a cheater. In 1997, Mexico placed a duty on imported apples because it said Washington sold apples under market value (a tactic known as “dumping”) in a scheme to grab a larger share of the market. That duty was eventually reversed. But because the U.S. had reneged on a deal to let Mexican truckers transport loads into the U.S., Mexico kept a tariff on 99 products, apples included, until 2010. Then a drought hit northern Mexico. With the tariff finally lifted, Washington exported more apples that year—then even more the next. When finally, in 2013, Mexico had a decent

crop, local farmers couldn’t sell their apples at market.

“It was all the same,” one Chihuahuan farmer told a journalist with the Food & Environment Reporting Network. “They were full of American apples.”

Farmers and members of El Barzón were furious. In 2014, local papers reported that some $20 million worth of apples rotted. Farmers accused Washington growers of price dumping, once again, and in protest filled the streets of Chihuahua with apples. “Say no to the gringo!” they chanted. “Eat Mexican apples!” An empathetic local paper called American apples ugly, old, and cold. In the end, some farmers like the one quoted above cut their losses by cutting down their trees—unable to afford to maintain them.

“Chihuahua is not a real great area for growing apples,” says Rebecca Lyons, a spokeswoman for the Washington Apple Commission. Washington’s argument, Lyons says, is that Mexico just can’t compete. The $2.5 billion Washington apple industry has better technology, its trees grow more apples, and it can refrigerate the harvest to sell when market price is best. The dumping claims are lies, she said, and the reason Mexican apple growers couldn’t sell at market last year is because they overpicked. “They just put everything in a box that was on a tree.” Still, she adds, the Mexican apple market is “big enough for everyone.”

The apple dispute with Washington is part of what El Barzón was protesting when it blocked the international bridge from Ciudad Juarez to El Paso. The farmers and their horses remained on the bridge for an hour, then under pressure from federal police, they

agreed to leave. It was the dying pangs of an industry.

The rural Mexican town where Romney lives is surrounded by fields of orchards. His packing company, Grupo Paquimé, imports apples and pears, plums and apricots.

When his secretary answers the phone, she calls Romney “Mexico’s apple man.” Last year, the U.S. Apple Association invited him to speak at its conference in Chicago.

In all the turmoil, Romney has remained relatively neutral, which gives him a unique vantage in the apple battle. NAFTA deserves a lot of blame, he says. It assumed that Mexico and the U.S. were on a level playing field, but because of farm subsidies and America’s general wealth, Mexican apple growers are having an impossible time catching up. Still, NAFTA hasn’t been a total loss for Mexico, he adds. Mexico cornered the market on cheap labor because in 1995, right after NAFTA, the American minimum wage was $4.25 an hour (now $7.25), while the Mexican minimum was $2.70 a day (now $4.25). Later, a lot of low-skill manufacturing eventually moved to Asia, where labor is even cheaper. But the auto industry seems to have stuck around Mexico, and the new Ford plants will bring the country 3,800 jobs

“You have to compete with the other country with the best thing that you do,” Romney says.

As for Mexican apple growers, “It’s easy to turn around and a blame another country,” Romney says,

By Dianne C. KurrleU.S. Apple Association

The COOL Reform Coalition has been meeting with key Senate offices over the past several months.

I have participated in a number of those meetings as a coalition as well as on my own. More meetings are planned after Thanksgiving.

The latest reports are that the WTO will likely issue a dollar value to Canada and Mexico in late December. Retaliatory tariffs would be instituted early next year.

Apples are on Canada’s list and expected to be on Mexico’s once they release it. USApple and our partners in the coalition are working to bring resolution to the issue before the tariffs are implemented. Toward that end, the best opportunity is the omnibus appropriations bill which Congress is expected to act on in early to mid-December.

While the House passed a repeal of COOL last May with strong bipartisan support, opposition in the Senate remains from both Democrats and Republicans. Pressure from small cattle and hog producers and consumer organizations has made it impossible to reach the 60 vote threshold needed in the Senate.

The Senators from our major apple producing states understand the potential impact on the entire industry if the tariffs are allowed to be enacted. Many remember the impact of the Mexican trucking dispute from 2010. However, many of those same Senate offices are also under pressure from consumer groups and activists in their own states who are positioning this as a consumer’s right to know.

Targeted grassroots action will likely be needed in the next few weeks. Please watch your inbox for action alerts on this issue.

COOL backgroundThe 2008 Farm Bill made

amendments to the 2002 Country of Origin Labeling (COOL) requirements for meat and poultry. Less than one year after the rules took effect, both Canada and Mexico challenged the rule at the World Trade Organization, arguing that it gives the U.S. an unfair advantage by reducing the value and number of cattle and hogs shipped to the U.S. market.

Preliminary reports indicated that the WTO likely would rule against the

United States and there were failed efforts to address the issue in the 2014 Farm Bill. Just before Memorial Day, the WTO settlement body adopted a final decision finding the U.S. out of compliance.

The House immediately acted, passing a repeal of the meat and poultry COOL with a large bipartisan majority. In the Senate, Agriculture Chairman Pat Roberts, R-Kan. authored a repeal amendment which he had hoped to offer last summer but an opportunity did not present itself and a significant number of Senators voiced opposition to the approach.

Agriculture Committee Ranking Member Debbie Stabenow, D-Mich., and John Hoeven, R-N.D., introduced a compromise bill to replace the mandatory COOL with a voluntary approach.

The bill’s supporters maintain that it is WTO compliant but the Canadian government issued a definitive statement that they would not accept the approach. This means that tariffs would be allowed until the WTO reached a decision on the voluntary program. That could take several months or more and is a risk that the apple industry cannot afford to take. Therefore, we and our partners in the coalition support a clean repeal like that adopted by the House.

COOL update from USApple

See Battle, Page 14


McIntosh declared official appleof TCS New York City Marathon

The run-away favorite apple of many New Yorkers has been named the official fruit of the 2015 TCS New York City Marathon.

New York state McIntosh apples have been declared the official apple of the event, reports New York Apple Association. An 18-year sponsor of the Big Apple’s largest marathon, this year NYAA distributed apples at the finish line as well as several related events. The association also sponsored 15 runners including members of the Rochester police and fire departments.

As a Supporting Sponsor, NYAA provided more than 80,000 local McIntosh apples for the event – 82,320 to be exact. Of those, 56,160 were distributed to TCS New York City Marathon finishers on Nov. 1. Apples were also distributed at the Poland Spring Marathon Kickoff on Oct. 25, the NYRR Dash to the Finish Line 5K on Oct. 31, the TCS Run With Champions on Oct. 30 and the TCS New York City Marathon Eve Dinner on Oct. 31, and to finish volunteers on Nov. 1.

“Apples are great for restoring your kick after a run, or any exercise for that matter – and it doesn’t get any more ‘New York’ than our top variety McIntosh,” said NYAA President Jim Allen. “We are glad to support our local community and a world-famous healthy event, while shining a spotlight on our state’s great apples at the same time.”

NYAA encouraged participants in this year’s TCS New York City Marathon and related events to “Munch a McIntosh” via advertisements in the runner handbook, check-in goodie bag, event program, wayfinding towers in the TCS New York City Marathon Start Village, 5-second public announcements at the expo and the finish, and race results edition.

The TCS New York City Marathon is the premier event of New York Road Runners and the largest marathon in the world. Held annually on the first Sunday in November, the race features

Above, runners Ted Kuppinger, Cathie Trabucco, Tom Szatko, Kelly Nash. Below, Ellen Allen and Marshall Allen pose with Tenley Allen after her race finish.

Post-race ‘goodie bags’ are distributed to runners. In addition to advertising about New York apples, the runners received Mc-Intosh apples.

Ambrosia levy goesto vote in Canada

Apple growers in the Okanagan will vote to renew or abandon a levy on Ambrosia apples used to pay for research and marketing.

The 2.5 cents-a-pound levy was introduced in 2001, and was renewed in 2006 and 2011. The current five-year mandate expires in June 2016.

The levy is paid by the first receivers, such as BC Tree Fruits, to the New Tree Fruit Varieties Development Council.

The Ambrosia apple is the first apple in B.C. to have a levy, said Jim Campbell, New Tree Fruit Varieties Development Council member. “The purpose is to pay for promotional research for the variety,” he said.

Promotional marketing includes tastings, displays and attending various events to promote the Ambrosia, said Campbell. The levy also contributes to funding for research to improve the storage and quality of the apple.

The vote to renew or abandon the

levy will take place in the spring. In the meantime, Campbell and other council members hope to speak with apple growers and answer any questions about the levy.

While most of the Ambrosia apples are distributed throughout B.C., they are also sent to Alberta, Saskatchewan, Manitoba, the United States and Asia.

“We’re trying to cultivate those export markets,” said Campbell. “It’s relatively unknown in other parts of the world.”

In the early 1990s, there were two or three acres of Ambrosia apple orchards in the Okanagan, said Campbell. Now there are more than 1,000 Ambrosia acres in the area.

In 2015, growers in the Okanagan produced 750,000 cartons of Ambrosia apples, or 30,000,000 pounds of apples.

In 2016, production is expected to grow to 800,000 cartons.

See Marathon, Page 14


the world’s top professional athletes and a vast range of competitive, recreational, and charity runners.

The race began in 1970 with just 127 entrants running four laps around Central Park, and expanded citywide in 1976. In 2014, a record 50,530 runners from 130 countries toured New York

City’s five boroughs, including the one-millionth finisher in the history of the event, starting on Staten Island at the foot of the Verrazano-Narrows Bridge, and running through the neighborhoods of Brooklyn, Queens, and the Bronx, before ending in Manhattan at the iconic Central Park finish line. More than one million spectators line the city streets to cheer on the runners, while millions more watch the live television broadcast

in the United States and around the world. The race is part of the Abbott World Marathon Majors, a series featuring the world’s top marathons—Tokyo, Boston, London, Berlin, Chicago, and New York—and crowning the top professional male and female marathoners in the world. Tata Consultancy Services, a leading global IT services, consulting, and business solutions organization, is the premier partner of NYRR and the title sponsor of the TCS New York City Marathon. To learn more, visit the TCS New York City Marathon website at www.tcsnycmarathon.com.

Laternfly fruit pest sweeps across Pa.Patch.com

The spotted lanternfly which consumes grapevines, apple trees, stone fruit trees, and pine trees, along with the potential to destroy ecosystems, has been officially spotted in Montgomery County, according to the Pennsylvania Department of Agriculture.

It’s serious enough that a

“quarantine” has been implemented in several townships in Montgomery County, and a few in Bucks County as well, officials said.

Any business that stores products outside must first be approved by an inspector from the state department of agriculture.

That includes not just firewood and organic material, but companies that

showcase items on patios or sidewalks or parking lots, like hardware stores, supermarkets, and car dealers.

The ”quarantined” locations are in Upper Hanover, Red Hill, Pennsburg, and East Greenville in Montgomery County.

In Bucks County, the edict affects Milford Township and Trumbauersville, according to officials.

Over the summer, the lanternfly was spotted throughout the state, including Berks county, just a mile from the border with Montgomery County.

The lanternfly is a native to the Asian countries of China, Indian, Japan, and Vietnam. It has done invasive damage to Korea, where officials say it has attacked 25 plant species that also grow in Pennsylvania.

support the Washington exports to China to do nothing BUT increase over the years. Will New York have an opportunity? Yes I think so, but it would never be at the expense of Washington’s business. First of all the market is too enormous to take a share away, only to grow the share. Second, for us to even think about competing with Washington varieties that are now in China, we would be kidding ourselves or we would be willing to be placed into a lower quality sector of the market.

We do have a chance with varieties that Washington cannot supply. I believe this would be our window to open. Our goal now is to find the flavor and the variety and introduce it to the market. The demand is there. This will take some time.

My favorite fact to tell that exemplifies the power of this market is the growing on-line commerce, which includes huge amounts of food and produce. If you think we are consumed with Amazon and all the online retailers here, the China industry literally dwarfs ours. One of the richest companies in the world is Alibaba. In 1999, Jack Ma and 17 colleagues founded on-line marketing in China. His companies such as T-Mall continue to overshadow

the rest of the world on line. 11/11/15, a day referred to as singles day in China, is like our cyber Monday or black Friday. Customers flock to the internet to make purchases that are on sale. Last month, a record single day of sales in China reached 15 billion dollars. ONE DAY! This news was featured on our CBS news on 11/12/15. Amazon in 2014 reached 88 billion in sales for the entire year compared to Alibaba sales at 176 billion.

We met with a huge on-line food supplier, yiguo.com that reports having door to door service in 6 major cities, offering over 3,200 products, 365 days a year. In 2005 they started delivering fresh foods and those sales have now reached over 30 million alone. By the way, 85 percent of online shoppers are between the ages of 20-45, and 75% are female. Talk about market setters, here they are! And all of this has happened over the last 20 plus years, when the population growth rate has been stifled by the one child rule, which has now been lifted.

No doubt the massive growth of China’s economy comes as a result of the loss U.S. jobs and manufacturing, because of cheap labor and low cost of doing business. Perhaps we can regain some lost ground, and reverse some trends by increasing U.S. goods into China.

Good luck,Jim

alike have commented on the quality of the apples from New York, and it is an honor for me to be able to represent our industry to them and speak to the hard work and commitment our growers have to their trade.

While traditional promotions still are going strong in the retail segment for New York apples, I have tried to incorporate some new, innovative promotions for this season. I have spoken to the importance of the digital promotion many times and will continue to back this sentiment up given the variety of digital tactics out there to reach the consumer. We partnered with a loyal retailer this season to do a wide reaching digital program tying in coupons, online ads to promote the coupons, free apple giveaways to kids during National Apple Month, and also promoted online via social media, banner advertising, as well as blogging. We also featured New York apples at a southern retailer cooking school and also heavily promoted via social media.

This past October Linda Quinn, MS RDN, nutritionist for NYAA, traveled to Norfolk, Virginia to work with Military Produce Group, supplier to the DeCA commissaries, on a television segment featuring New York apples to the naval military community. Linda also visited a few commissaries and spoke to the produce departments about the importance of healthy eating and incorporating apples into a healthy diet.

We have exciting things happening and its fun to think outside of the box, try new things and see what happens!

Jim

AllenContinued from Page 3

Molly

ZinglerContinued from Page 3

MarathonContinued from Page 13

“But the reality is we need more infrastructure.” The government needs to help farmers invest in better refrigeration technology and higher-yielding trees, or to help them compete somehow, like the U.S. does with many of its farmers, he says. Even so, Romney expects Mexico’s apple industry to run a similar course to what happened with corn. A lot of the smaller operations will die, he says, leaving behind “a handful of growers.”

In a warning of what’s to come, two years ago a Chihuahuan newspaper headline read, “The collapse of state production: U.S. fruit invades the market, 50,000 jobs at risk.” This year, U.S. apple imports to Mexico increased 42 percent. The president of a local apple organization said it amounted to Mexico’s “largest losses ever.”

If, or when, the Mexican apple industry crashes, all those people it supports will need new jobs. Meanwhile, forklifts in Washington this fall readied boxes of Red Delicious apples for export, most handpicked by Mexican laborers in Yakima County, home to a growing Latino population.

BattleContinued from Page 12


into two groups and rotated between meetings with these additional companies. In these meetings the delegation learned that this year China has a large apple crop and that domestic prices have dropped by half. Shenzhen Golden Wing Mau Agricultural Produce Corporation is organizing a retail promotion for the Washington Apple Commission the following week that will be held in several major cities throughout China.

Afternoon meetingsThe China Agricultural Wholesale

Markets Association represents wholesale markets throughout China. At present day, wholesale markets distribute the vast majority of fruit in China and are becoming more important for the distribution of imported fruit in Tier 2 and Tier 3 cities. Fuji is currently the most popular apple variety in China and a large number of this apple is grown by the Chinese apple industry. Taste preferences vary throughout the country, with large, sweet apples generally being preferred in the north while in the south sweeter apple varieties are preferred, but size is not as important. In recent years China has been organizing technical visits to other major apple producing counties.

The China Fruit Marketing Association China Fruit Marketing Association is comprised of traders, importers, wholesale markets, chain supermarkets and e-commerce markets. This organization sponsors the iFresh

conference and other e v e n t s throughout the year.

In China fresh fruit is the third l a r g e s t p r o d u c e m a r k e t , after greens and fresh vegetables.

China consumes 260 million metric tons of fresh fruit, of which 100 million metric tons is melons. Apples comprise the biggest segment after melons. China’s fresh fruit consumption continues to grow.

Tuesday, Nov. 3The delegation departed the hotel

for Xinfadi Wholesale Fruit Market at 6 a.m. On site, the group was guided through the market by the Manager of Beijing Shengbaotai Fruit Co., Ltd., Mr. Youyi SU. After the tour, the delegation returned to the hotel to have breakfast, pack luggage and check out. The delegation departed for the airport shortly before noon and flew to Guangzhou later that day.

Wednesday, Nov. 4The delegation was given a tour

around the Jiangnan Wholesale Fruit Market, the largest such market in China, by the market staff. Afterwards the delegation met with Vice General Manager of the Jiangnan Wholesale Fruit Market, Mr. Zhiqiang GUAN. The Jiangnan Wholesale Fruit Market is also a major shareholder of the

Huizhan Wholesale Fruit Market in Shanghai.

In terms of competition to U.S. apples, Mr. Guan stated that apples from New Zealand are generally more expensive than apples from the United States.

USAEC hosted a networking lunch with Chinese traders that was kicked off by a brief presentation on the USAEC and the US apple industry. Guangzhou ATO Guangzhou Director, Mr. Hoa Van Huynh, joined the delegation for the presentation and lunch.

In the afternoon the delegation visited a location of the Olé Supermarkets to see how apples and other produce are marketed and displayed. Store general manager, Mr. Kiwi LIU, offered an overview and answered questions.

Thursday, Nov. 58:45-10:30 a.m.Trade Breakfast

meetingThe delegation met with

representatives of Shunfeng Trading –President: Mr. David LIANG and Import Manager: Ms. Una WU–along with an Import Manager of Shanghai Guohai Trade Co., Ltd., Mr. Avid LIU, to discuss the prospects for exporting US apples to China. Ms. May LIU of the Guangzhou ATO joined the meeting.

10:45-noon Guided Retail Tour Following the morning meeting, the

delegation toured two grocery stores before heading to the airport: JUSCO Supermarket and TEASE Supermarket.

7 p.m. Group Dinner with ATO Shanghai Director Ms. Valerie Brown

Friday, Nov. 6Morning MeetingsThe delegation started the day with

a visit to the Huizhan Wholesale Fruit Market. Ms. Freddie XU of the ATO Shanghai joined the group for the visit. The delegation was led on a tour of the market by the market’s Vice General Manager Jenny FANG. Afterwards the group met with the General Manager of the market, Kurt HUANG.

USAEC hosted a trade networking lunch where conversations with the organization met during the morning were able to continue and new contacts were met. Attendees of the trade networking lunch are listed below.

Afternoon MeetingsFirst the delegation met with a

Shanghai representative of the China Fruit Marketing Association (organizes the iFresh trade show). The company also imports fruit and is developing an e-commerce platform that will launch soon for business-to-business transactions.

Later the delegation met with representatives of two major e-commerce companies for produce in China: YHD E-Commerce Co., Ltd. (Yihaodian) which is owned by Wal-Mart and Shanghai Yiguo E-Commerce Co. Ltd. Both companies have experience selling imported fruit, including apples from the United States and ship directly to consumers. YHD is its own platform. Shanghai Yiguo operates several online platform, including the fresh fruit section of T-Mall (owned by Alibaba), which sees 325 million visitors each day. Shanghai Yiguo supplies to 48 cities in 18 provinces throughout China.

In conclusion, the USAEC representative met with more than 75 importers, wholesalers and traders; as well as FAS/ATO staff members from USDA.

ChinaContinued from Page 1


Export Report

U.S. apples pour into Mexico as dumping dispute plays outThe Yakima (Wash.) Herald

From his desk on the sales floor, Victor Ratia has no trouble selling apples to Mexico.

International politics, dumping allegations and a long-postponed decision about whether Washington’s largest export market will impose duties haven’t made life any harder for the Latin American sales specialist at Washington Fruit and Produce Co., one of the largest apple shippers in Central Washington’s fruit country and the nation.

“They need our product and they buy,” Ratia said.

The $1.9 billion state apple industry is waiting for the Mexican government to decide whether it will impose punitive duties on U.S. apple shippers for allegedly selling apples in 2013 for less than the cost of production, a tactic called dumping.

Ratia and state officials deny any dumping.

Mexico’s Ministry of Economy has been investigating the claim by Mexican growers and was scheduled to make a preliminary determination over the summer but hasn’t yet.

“We’re just waiting,” said David Anderson, assistant manager of the Northwest Fruit Exporters, a Yakima association that works with foreign governments to develop export procedures. After the announcement, the issue could go to the Mexican courts.

The investigation covers all U.S. shipments, but Washington, the nation’s largest producer, accounts for 85 percent of apple exports to Mexico.

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The uncertainty is having no effect on current sales, in the meantime.

Trucks carrying Washington’s Red Delicious and Gala apples continue to cross the border to Mexican stores with no sign of slowing, Ratia said.

“The Mexico apple market is a very mature market for us,” said Ratia, born and raised in Spain. “Consumption is not affected just because of potential threats.”

Last week, crews on the Washington Fruit docks loaded Mexican-bound trucks nearly every day, said Eric

Hanses, shipping and warehouse manager.

Mexican groceries prominently display Washington apples, said Rebecca Lyons, international marketing director for the Washington Apple Commission, which promotes apples internationally. Mexican shoppers regard apples right up there with bananas and oranges as a dietary staple, she said.

However, duties could slow down the export fire hose.

Mexican trade investigators are analyzing the 2013 prices of 40 Washington shippers and could impose individual duties — extra charges on imported products similar to tariffs. All other shippers would face a weighted average of duties.

Industry officials have not estimated a potential sales risk and probably couldn’t even if they knew the duty amounts because everything from supply and demand, gas prices and currency exchange rates affects apple exports, Lyons said.

In 2010, Washington apple shippers noticed the difference when Mexico slapped a 20 percent tariff on imports in retaliation for a trucking dispute with the Obama administration.

In the 2009-10 crop year, exporters sent 10.2 million boxes of apples to Mexico. That dropped 10 percent to 9.2 million in 2010-11 under the tariff. In 2011-12, after the tariff was lifted, exports jumped back up to 10.2 million boxes.

The next year, after the tariffs were lifted, exports jumped back up to 10.2 million.

“One fact that cannot be argued is that Mexico is an important market for us,” Lyons said.

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Mexico is far and away Washington’s largest export destination, taking in 15.4 million 40-pound boxes of the state’s 2014 crop.

But Mexico also grows apples, almost all of them in the high desert northern state of Chihuahua. Growers there have a history of apple dumping charges against the United States.

Mexican trade officials imposed duties on U.S. shipments from 1996 to

2010, lifting them only after a NAFTA review panel determined they used outdated calculations.

A Chihuahua growers association made the more recent charge in December 2014, asking their government officials to investigate prices during the calendar year of 2013.

That’s one of the main reasons Washington shippers and industry officials flatly deny the charge; prices were high that year.

“It’s hard to imagine that anyone could make the argument that we dumped product in 2013,” Ratia said.

In 2012, Washington growers harvested a record crop while other growing regions in the East were nearly wiped out by frost, giving our state’s shippers almost sole dominion of domestic store space.

In 2013, when most of those 2012 apples were being sold, growers received a near-record average of 41 cents per pound of fresh apples, according to U.S. Department of Agriculture statistics.

Most of the current construction boom in packing lines and cold storage facilities visible throughout the Yakima Valley started after that 2012 banner crop.

Mexican exports during the 2012-

13 shipping year indeed spiked to 13.7 million boxes, a good 30 percent over the year before.

However, also in August 2013, Mexican growers harvested a glut of their own apples, a record 859,000 metric tons, more than twice the previous year’s harvest. When growers and packing houses tried to take them to distributors and stores in Mexico, they often were turned away. Growers turned to selling their products in the streets at times, according to news reports.

Then, they unfairly blamed U.S. competition for their problems, said Mark Powers, vice president of the Northwest Horticultural Council, a Yakima-based group that lobbies for the tree fruit industry in matters of federal policy and international trade.

“They are trying to keep our apples out of the market,” Powers said, calling the allegations of dumping “not factual.”

Ratia chalked the dispute up to the complexities of world trade. Apples from Chile, New Zealand and China all compete in ports throughout the world.

“Everything is interconnected ... ,” Ratia said. “We’re all kind of fighting for space in a way.”

By Mike HornickThe Packer

China’s apple imports are expected to jump nearly 50 percent over last year to 100,000 metric tons, while pear and table grape imports are also on the rise according to the U.S. Department of Agriculture.

Pear imports will increase more than 20 percent to 12,000 tons for the year ending June 2016, with grape imports up about 10 percent to 250,000 tons, the USDA Global Agricutltural Information Network (GAIN) report estimated Nov. 16.

Washington apples regained access to China in October 2014 after the country lifted an import suspension where quarantine pests were at issue. As a result, China’s apple imports nearly doubled in 2014-2015. The

U.S. is China’s second largest apple supplier, trailing Chile.

With the suspension gone and new U.S. varieties allowed access, Washington and other producers will regain import market share previously lost to New Zealand and Australia, according to the USDA. The dominant U.S. varieties in China are red delicious, gala and granny smith. Holidays are the main marketing occasions for apples in China, the report finds, with gift packages targeting that demand.

China’s own apple production is forecast to rise 5 percent to 43 million metric tons. Late mature fujis account for nearly 70 percent of that.

China’s widely reported economic woes have cut into prices as well as income. Produce consumption is holding its own, at least in major cities, the report found.

China boosts importsof apples, grapes, pears

Documents

Official Newspaper of the New York Apple Association .... Apple Export Councl ... shopping channel in Shanghai and the e-commerce ... [email protected] todd Furber, Vice Chairman,