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SPOTLIGHT ON B.C.: APPLES AND CHERRIES
Canada’s fruit industry has adapted well to our cold climate and short growing seasons. Southwest British Columbia enjoys about 180 frost-free days every year, and is one of the top two fruit producers of in the country. Our pristine agricultural resources have enabled B.C. growers to produce premium-quality fresh apples and cherries (HS code: 080810: Apples, Fresh; and HS code: 080920: Cherries; Sweet or Tart, Fresh) that are sought in markets as far away as Asia, Europe, South America, and the Middle East.
The tree fruit industry has been experiencing difficult economic times for a number of years, especially for traditional varieties of apples and soft fruit. Newer varieties have resulted in better prices and improved returns for growers. Many growers have adopted a new variety strategy as a way to improve profitability, as new varieties tend to sell at a price premium over older ones. Varieties such as Royal Gala, Fuji and Ambrosia commanded significant returns at their introduction and have continued to do so for a number of years after. Some cherry varieties such as Lapins, Skeena, Staccato and Sweetheart are highly successful. The industry is currently replanting new varieties at the rate of about 600 to 800 acres per year.
What’s New in B.C.
APPLES
In 2011, B.C. produced about 24% of the apples grown in Canada and was the third largest producer after Ontario and Quebec. The total marketed production from B.C. in 2009 was 96,614 metric tons with a farm gate value of C$36.7 million. This represented about 26% of the national farm gate value of apples in 2011 (Statistics Canada).
About 60% of all planted land in B.C. orchards is planted apples. Nearly 92% of the apple crop is sold fresh with British Columbians consuming around 25% of the apples grown in B.C. The rest of the crop is processed, with apple juice being the most popular processed product.
Of the $14.4 million in fresh apples exported from B.C., 74% went to the U.S. Out of the top 10 markets for B.C. apple exports, six are in Asia and two are in South America. There has been a significant decrease in B.C. apple exports since 2006, when B.C. exported $28.1 million worth of fresh apples. That number went down to $14.4 million in 2011.
B.C. apple growers, like most Canadian apple growers, have been experiencing falling incomes due to world oversupply, weather-related disasters, retailer consolidation and increased foreign competition, both in the domestic and export markets. Washington State is the biggest competitor, producing around 30 times more apples annually than B.C. due to its warmer growing climate. The oversupply of Washington state apples has forced prices below the cost of production. However, the market situation is changing as prices have improved from the low in 2009. The industry is responding with packinghouse cost saving measures that should increase grower returns in the long run.
MEDIA MONITORING
B.C. growers replant with tastier, crunchier varieties Vancouver Sun – May 2012
Old lunch-box favourites such as the McIntosh that many of us grew up with could be a lot harder to find on store shelves over the next decade as the trend to plant sexier varieties of apples grows.
Sleeker, crunchier and tastier apples such as Ambrosia, Gala and Honeycrisp have replaced the softer, mealy types like McIntosh, Spartan and Red Delicious as the top sellers, says Nick Ibuki, a horticulture research technician with the Okanagan Plant Improvement Corporation.
Just as the McIntosh once replaced the 1950s-era Spartan as the most-popular apple, now it looks as though the Ambrosia has knocked out McIntosh for top spot in the fruit bowl.
To find out more, please visit: www.vancouversun.com/news/growers+replant+with+tastier+crunchier+varieties/6670282/story.html.
Big cherry crop expected Kelowna Capital News – May 2012
Close to ideal winter and spring weather conditions should result in a large crop of cherries this year, reports Hank Markgraf, B.C. Tree Fruits (BCTF) senior field advisor. “We were lucky we didn’t experience any of the frost issues that other parts of Canada did,” he commented.
A fairly mild winter and a long blooming period with little in the way of freezing temperatures during bloom point to a good season which may be early as well.
He is forecasting BCTF will see eight million pounds of the sweet little red fruits, nearly double that of the previous year, when a late, cool spring created some hardship for growers.
For more information, please visit: www.kelown-acapnews.com/news/151961265.html.
CHERRIES
B.C. is the number one producer of sweet cherries in Canada, accounting for 87% of the planted acreage of the total sweet cherry production. B.C.’s marketed production of sweet cherries was 9,370 metric tons in 2011, with a farm gate value of C$30.8 million. This represents 93% of production in Canada and over 93% of the national sweet cherry crop farm gate value.
Canada’s sweet cherry area expanded 30.4% since 2006 to 4,178 acres in 2011. Of this acreage, B.C. accounted for 86.6%. 97% of the sweet cherry crop is sold fresh; the rest of the crop is processed.
The main varieties grown in B.C. are Bing, Lambert, Van, Lapins and Sweetheart. Newer varieties like Sweethearts are late harvest varieties, which are receiving high returns in eastern and offshore markets.
In 2011, Canada as a whole exported $42 million worth of cherries. B.C. was responsible for almost 95% of these exports, totalling $39.98 million. Hong Kong, U.S. and Taiwan are the top three markets. Of the top 10 markets for B.C. cherry exports, five are in Europe and another four are in Asia. Exports have experienced significant growth since 2006, when B.C. exported $18 million worth of cherries. That number has more than doubled to almost $40 million in 2011.
Fresh food statistics from Euromonitor International show that global volume sales of fresh cherries rose by 17% over the 2006-2011 review period, outperforming other high-end fresh fruit “treats” like strawberries and grapes. In 2011, cherries emerged as the second most dynamic fresh fruit category, achieving a 4% volume gain, ahead of cranberries and blueberries.
To learn more about the Canadian fruit industry, please consult the following Agriculture and Agri-Food Canada industry report: www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1294265926815&lang=eng.
FEATURE COMPANY: JEALOUS FRUITS
Jealous Fruits is owned by fourth-generation fruit grower David Geen, whose family has farmed in the Okanagan since 1903. The Geen family predominantly grew apples and pears until 1991, when David decided to diversify into cherries. The initial cherry planting of nine acres has since expanded forty-fold. David started by hand-packing cherries in the field, before constructing his first packing shed in 1996. From the outset, the focus was on the export markets, with early crops going mostly to Taiwan and the U.K.
Jealous Fruit’s facility is 30,000 square feet and features state-of-the-art optical sizing and colour sorting, along with sophisticated systems creating pack-to-order shipments to customers worldwide. Initially, the export sales of fruit were conducted through third party brokers. In 2008, sales and marketing was integrated into the company, allowing greater strategic control over which markets and customers the company sells to.
Today, Jealous Fruits is the largest cherry producer in Canada, with 300 acres in full production and another 75 acres planted this past spring. In response to increasing demand for their products, another 75 acres are scheduled to be planted in 2013, with a further 100 acres planned for spring of 2014. This will bring the total cherry acreage up to 550 acres. Jealous Fruits is one of the few completely vertically-integrated cherry producers in Canada, with the fruit grown, packed, shipped, and sold by the same company. This unique selling point coincides with growing global demand for product consistency, reliability, and traceability.
General Sales Manager: Julie McLachlan (pictured below)
Currently Exporting to: Asia (Hong Kong, Taiwan, Thailand, Singapore, Vietnam), Europe, U.K., and U.S. Smaller volumes are exported to Russia and India.
Interested in Exporting to: China, Malaysia, Switzerland, and the Middle East. (Also Japan and Korea if the fumigation requirement is lifted.)
Products: Fresh cherries, with a focus on the late season market period of August and early September. The 10-12 varieties grown include early ripening varieties Satin and Van, mid season production varieties Lapins and Sweetheart, and late season varieties Regina, Staccato, Sovereign and Sentennial. Other varieties include Sylvia and Sonata. The late season varieties ship particularly well, and fill a market window where competitive cherry supplies from the U.S. are diminishing.
Key Attributes: Large, premium, high quality, fresh cherries. Supply is available outside of the traditional peak cherry season of July. The cherries are picked at full maturity, and marketed immediately. All cherries are hand-inspected and run through a second grading as part of the sorting process, allowing Jealous Fruits’ cherry packs to be virtually defect-free. Second grade cherries (cherries with minor wind rubs, small defects, or missing stems) are sorted, and sold locally under a separate brand.
Shelf life: Varies depending on shipment methods. All fruit is picked and packed the same day and shipped the following day. Fruit meant for export shipment is meticulously selected to make for the strongest possible arrival. Properly cared for fruit will last 5 to 7 days upon purchase by the consumer. Most cherries shipped offshore are flown to destination. Fruit shipped offshore in a controlled-environment ocean container will remain in strong condition for 14-21 days in transit, and still have good shelf life on arrival.
Packaging: Varies depending on the market. Canadian and U.S. retailers prefer 1 and 2 pound clamshells and the 2.25 pound catch weight bags. Bulk options include 2, 5, and 9 kilogram boxes. A 1.25 pound catch weight punnet is also available. Most Asian markets prefer 2 and 5 kg bulk packaging. Europe prefers the punnets.
Retail price points in Canada: Depends on the retailer, the packaging, and the size of the fruit. All price points are at a premium. Costco Canada’s two-pound clamshells typically retails in the prairie markets for $7.99-8.99. Urban Fare in Vancouver markets only the biggest fruit, which retails for $7.99-10.99 a pound.
Certification: CFIA, Global Gap, Tesco Nature’s Choice.
Popular Among: Health conscious consumers inclined to enjoy luxury products such as premium cherries.
Ideal Export Partner: An established, stable company with similar ethics and values as well as deep links and connections in their country. The company should be focused on high-quality produce, have a long-range vision, and be looking for a long-term business relationship (10 years or more).
Website: www.jealousfruits.comExport Contact Email: [email protected]
FEATURE COMPANY: B.C. TREE FRUITS LTD.
Orchards in the Okanagan were cultivated for over a century before B.C. Tree Fruits (BCTF) was officially formed in 1936. Today, the BCTF is part of the Okanagan Tree Fruit Cooperative, which is owned by over 800 local grower families. The individual orchardists use their strength in numbers to pack, store, transport, and market their product. BCTF provides expertise in produce promotion, packaging, and transportation. This includes assistance with sales, marketing, accounting, technology, shipping, and regulation compliance. To address competitive pressures from Washington State, the dominant competitor, over 85% of BCTF produce is shipped within Western Canada. The BCTF nonetheless maintains a significant export program.
Director of Sales & Marketing: Rick Austin (pictured right)Sales Manager: Tom Stearns
Currently Exporting to: U.S., Iceland, Russia, Vietnam, Hong Kong, Mexico, Singapore, Thailand, Holland.
Interested in Exporting to: Open to all markets.
Products: Apples, cherries, pears, peaches, nectarines, prune, plums, apricot, grapes and blueberries. Only apples and cherries are currently being exported, and there is capacity for blueberry and pear exports as well.
Varieties of exported cherries include Lapins, Staccato, and Sweetheart. Varieties of exported apples include Ambrosia, Royal Gala, and Red Delicious. The BCTF is also looking to export their Granny Smith, Nicola, Pink Lady and Spartan apple varieties.
Key Attributes: Even abroad, the Ambrosia apple is known for its chance discovery in a B.C. orchard, its sweeter flavour, and its red and yellow blush colouring. The Lapins cherry variety was developed in Summerland’s Pacific Agri-Food Research Centre and it grows extremely well in B.C. climates.
Shelf life: 65+ days for apples, 10-15 days for cherries. Additional technologies are available upon request to extend the shelf life of tender fruits like cherries and blueberries.
Certification: CanadaGAP (Good Agricultural Practice) and QMI-SAI Global. Certain individual growers in the co-operative also hold organic certification.
Packaging: Export packaging consists of 40-pound tray packs for apples and 5 and 9.3 kilogram boxes for cherries. Other packaging is available upon request.
Retail Price Points: Export prices are set by Washington State and can be subject to weekly fluctuations. For perspective, Washington State produced approximately 105 million boxes of apples last year compared with BCTF’s 2.85 million boxes. Pricing is also dependent on appearance in addition to supply and demand.
Popular Among: Parents, anyone who buys fruit.
Ideal Export Partner: A financially stable company with knowledge of the industry and modern, foodsafe facilities. The company should be looking for a long-term partnership.
Website: www.bctree.comExport Contact Email: [email protected]; [email protected]
FEATURE COMPANY: CAWSTON COLD STORAGE LTD.
Cawston Cold Storage started approximately 15 years ago. The company operates as a limited company, but functions in some aspects like a co-operative due to the pooling of sales and prices between both shareholder and non-shareholder growers. Today, Cawston Cold Storage is the largest producer and packer of organic tree fruits in B.C., producing approximately 15,000 bins annually.
General Manager: Billy Potash (photo, right)Operations Manager: Dan Taylor (photo, left)
Currently Exporting to: Taiwan, Vietnam, U.S.
Interested in Exporting to: Cawston has exported to Europe previously and would consider it again, taking into account the different organic regulations and the economic stability of the European market. Cawston would like to export more Ambrosia varieties to the Taiwanese market, which currently has a preference for Fujis.
Products: A variety of organic vegetables and tree fruits, including apples, cherries, peaches, pears, tomatoes, and peppers. Only apples are exported. 60% of Cawston apple varieties consist of Ambrosias and Galas. Other varieties include Red Delicious, Golden Delicious, Granny Smith, Gala, Spartan, and Braeburn.
Key Attributes: Organic apples sales are very minimally affected by global economic turbulence. Growth of the organic industry in North America has also created more demand for small apples.
Shelf life: Depends on the retailer and whether or not they have refrigerated fruit bins. Under controlled-atmosphere storage conditions at Cawston facilities, September apple harvests can last until May. Certification: CFIA, Canada Organic, and CanadaGAP (Good Agricultural Practice) and QMI-SAI Global.
Packaging: Apples are packed into 40-pound boxes with fortified trays and into Europacks, a 2-tray box which holds 28 pounds. Small 2 L and 3 L containers are available for smaller fruit.
Wholesale prices: $30.00-38.00 per 40-pound box.
Ideal Export Partner: A company with strong knowledge of the target market, as well as foodsafe and proper apple storage facilities.
Website: www.naturesfirstfruit.comExport Contact Email: [email protected]; [email protected]
EXPLORING URBAN CONSUMER PREFERENCES FOR APPLE CULTIVARS
What does it take to breed a best-selling apple variety? Scientists at the Pacific Agri-Food Research Centre (PARC) in Summerland, B.C., are collaborating with industry to find the answers, and have come up with some interesting market research along the way.
For example, PARC scientists conducted research at the 2010 Apple Festival at the University of British Columbia (UBC) in Vancouver to explore apple preferences among urban consumers of different ages, genders, and ethnicities. Three apple varieties were evaluated for their taste and appearance: Ambrosia, Honeycrisp, and the as yet unnamed SPA 493 variety, which was developed by the PARC apple breeding program. (The SPA 493 apple will be named at the 2012 UBC Apple Festival in the Fall.)
A total of 1,182 consumers successfully completed the demographic survey, taste, and visual assessments. The “sweet” and “tart” apple preferences of the participants were also noted. Statistical analysis was conducted for the European and Asian sub-groups only, due to insufficient sample sizes on all other ethnic groups. Eighty-eight percent of Asian consumers identified that they usually ate “sweet” apples while European consumers identified that they ate both “sweet” and “tart” apples.
Consumers who usually ate “sweet” apples gave significantly higher scores for the “sweet” apple (Ambrosia) than the other two apples. Likewise, consumers who usually ate “tart” apples rated the “tart” apple (SPA 493) significantly higher than the other apples. Both consumer groups rated the neutral Honeycrisp apple least. Both the red Ambrosia and SPA 493 apples scored high on their appearances, while the Honeycrisp’s green colour scored lower, likely due to a perceived association between green apples and sour taste.
This research, conducted under Agriculture and Agri-Food Canada’s Developing Innovative Agri-Products program, is the first of its kind to document ethnic, age, gender, and choice differences among consumers in an urban market. It will be used to assist industry to understand and more appropriately market apples to their consumers.
The apple breeding program at PARC Summerland began in 1924. The program continues to focus exclusively on traditional breeding methods that have produced some of the world’s most popular apples. The ultimate goal is to provide high quality apple cultivars for Canadian apple growers with attributes such as high fruit quality, high yields, disease resistance, distinctive appearance and flavour, and good storage and shelf life. It takes 20 years to develop each new variety.
To view the full report (Report on Urban Consumer Preferences for Apples, Dec 10, 2010), please visit: www.picocorp.com/research_and_development.
For more information, please contact the BC Regional office at 604-666-6344 or email: [email protected]. Aussi disponible en français.
