Issue link: http://read.dmtmag.com/i/146156
consumption, it doesn't work as effectively if the consumer can't look at the fruit and align it with our activities. If the point-of-sale materials show Washington and we have our logo on them, and the product doesn't have the logo, how do they know it's the same product? "Generic stickers are less expensive, identifiable by consumers, and tie in with the Washington Apple Commission's activities and point-of-sale materials," Fryhover added. Unlike in the domestic market, where Washington dominates, it is a minor player in the international marketplace, requiring brand support to be identifiable and promotable. all it can to promote apples overseas during the coming years when supplies could exceed demand. "I'm going to put every resource over the course of the next three years—the financial resources of the growers plus MAP money—to try to make a difference. Together, let's give this thing a shot." • Logistics The apple sticker is valuable real estate, and he acknowledges that there are logistical reasons why packers might not use the generic logo. For example, there might not be room for the Washington logo on a sticker, along with the producer's brand, and the packer might not want to have inventories of two different stickers. Another barrier is that it takes time to switch over from one type of sticker to another on the packing line. Yet another is that when the fruit is packed, the shipper might not know whether the fruit will be sold on the domestic market, where the Washington brand is no longer promoted, or on the export market. But many of the apples exported from Washington go in what are known as heavy packs, which are not shipped to the domestic market, Fryhover said. Packers began exporting heavy packs (which contain several more pounds of apples than the standard 44-pound carton) many years ago to minimize tariffs, which are assessed on a per-box basis. The practice continues today. Statistics show that during the 2011-2012 season ten million boxes of Red Delicious and two million boxes of other varieties were shipped in heavy packs, Fryhover said. "That's twelve million boxes that you know when they go across the packing line are going export." We're with you from the ground up For more than a century, KeyBank has delivered a unique combination of agribusiness knowledge, experience, and flexible service. We have solutions to help our clients, whether you're a grower, processor, packager, or distributor. Our tailored solutions spring from our understanding of the cycles of farming, seasonal dynamics, and the unique risks associated with the industry.. KeyBank is one of the nation's leading agribusiness lenders. We specialize in: Boxes He also appealed to shippers to use the Washington logo on export boxes. This is particularly important in markets like India, where the retail market is not well developed. Importers control the market, and most fruit is distributed through wholesale markets to local markets. Washington has competition in India, Fryhover pointed out. "China's in this market. The Southern Hemisphere's in this market. Having the logo on the box is critical for identification. If they're in the wholesale market and they see our big billboard we paid thousands of dollars for and they don't see the logo on the box, how do they associate the two things? "If you don't have the logo on the box, please go back and look at it, and see if it's something you could consider," he added. "It just gives us support for the programs we have." Fryhover said the commission will do www.goodfruit.com These services can help protect you from the inevitable Contact us today. We want to help your business grow and thrive. To learn more, call Mike McKay, Northwest, at 800-346-8828 or Scott Rueff, Great Lakes/East, at 574-295-2910, or visit key.com/agribusiness. * Securities products and services such as investment banking and capital raising are offered by KeyBanc Capital Markets Inc., Member NYSE/FINRA/SPIC. Banking products are offered by KeyBank National Association. All credit products are subject to credit approval. Key.com is a registered service mark of KeyCorp. ©2013 KeyCorp. KeyBank is Member FDIC. KeyBank is an Equal Housing lender. ADL6291 GOOD FRUIT GROWER AUGUST 2013 9