Good Fruit Grower

April 15

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26 APRIL 15, 2015 GOOD FRUIT GROWER www.goodfruit.com Grandy closes almost 20 years as manager of pear bargaining group by sealing a three-year contract with record prices for growers. by Melissa Hansen A new processor-grower contract gives Pacific Northwest pear growers strong incentive to grow Bartletts for canning instead of the fresh market. The contract was not only agreed to early, but at record high prices. Jay Grandy, manager of the Washington-Oregon Canning Pear Association, announced the three-year contract in late February during the Pear Association's annual meeting in Yakima. The Pear Association was organized in the early 1950s to help stabilize the canning pear industry and return a fair price to growers. Bartlett is unique in its dual purposes—it's the only pear variety that's canned, and it also is sold fresh. "It's somewhat unprecedented to have the agreement this early in February and not late May or June," said Grandy. Grower prices for No. 1 grade Bartletts will be $320 per ton in 2015, $340 in 2016, and $360 in 2017. Growers are paid according to grade of fruit, which is simplifi ed into one grading structure under the new contract. Fruit are graded by size; growers will be rewarded a 5 percent pre- mium from the base price ($320 in 2015) for fruit grading No. 1A, the largest size. Grade No. 2, the smallest size, will receive a 38 percent discount from the base price. Grandy said two of the three Northwest processors— Del Monte Foods, with a plant in Yakima, Washington, and Northwest Packing (The Neil Jones Food Company) of Vancouver, Washington—have agreed to the contract. The third processor, Seneca Foods, headquartered in New York, with a plant in Sunnyside, Washington, has not signed the contract. The Pear Association board of directors chairman, David Garcia of Diamond Fruit Growers in Hood River, Oregon, said the board's understanding is that Seneca is willing to go along with the negotiated prices but does not plan to sign a contract. Seneca did not return calls for comment. "There's not really a concern that the third processor didn't sign because the other two processors are very interested in more tonnage," Garcia said. More going fresh For the last 15 years, there's been a shift in Northwest pear production from processing to fresh. In 2000, around 65,000 tons of Bartletts were grown for the fresh market; by 2014, the fresh volume had increased to 115,000 tons. Conversely, in the same period, tonnage of Northwest Bartletts sent to canneries declined from 180,000 tons in 2001 to less than 120,000 tons last year. Grower prices in the new contract refl ect the shortage of fruit grown for processing and the canners' need for more pears. Canned pear products are at their lowest inventory in years, and there's been no carryover of late. As a result of the strong fresh market, processors have had to signifi cantly increase their prices to growers to attract tonnage needed to keep plants running and help keep overhead costs down. In past years, contracted prices annually increased around $6 per ton each year. But in 2014, all three Northwest canners (Del Monte, Northwest Packing, and Seneca) voluntarily increased grower prices to $300 per ton for No. 1 grade, up signifi cantly from the Pear Association's contract price of $272 the previous year. Association future The recently completed pear contract was Grandy's last. He plans to retire later this year after compiling industry statistics one last time and helping the board fi nalize its future. Grandy has been manager at the bargaining associ- ation since 1996 and instituted the fi rst multi-year con- tract with a variable pricing system in 1998. Known as a numbers guy, he annually produced charts and tables to show canned pear supply and demand, costs of pro- duction, and production trends to help growers better understand both sides of the industry. From 1984 to 1996 he managed Snokist Growers, a processing cooperative in Yakima, which later gave him unique perspective as Pear Association manager and helped him bring canners and growers together. Through the years, he has served on the boards of the Pacific Coast Canned Pear Service, Pear Bureau Northwest, Washington State Fruit Commission, and regional and national food processor groups. Grandy received the Silver Pear Award from the Washington State Horticultural Association in 2005. In addition to his Pear Association duties, Grandy teaches in the business department at Yakima Valley Community College and prepares income taxes for clients. A few years ago, when the number of Northwest pear processors shrank from fi ve to three, it was Grandy who initiated discussion about the future of the Pear Association and whether it had outlived its life. The outcome of member discussions was reaffir- mation of the value and important role of the Pear Association, says Garcia. "But it also was an example of Grandy's humbleness," he said. "Jay is well respected by the processors because of his knowledge of the process- ing industry from his time at Snokist. He knows cannery operations and can talk at their level." But Grandy also has the respect of growers, Garcia added. "He's been a strong advocate for the grower and is very level headed. He found the middle ground between growers and processors. In negotiating, growers always want the sky, but Jay knew how to bring their expectations down to reasonable levels." Grandy, armed with industry statistics, knew what farmers were going through and what acreage was being 50,000 tons 100,000 tons 0 150,000 tons 1990-95 1995-2000 2000-05 2005-10 2010-15 Canned vs. fresh pears Northwest canned pear tonnage has been declining while fresh tonnage has increased. Bartletts for canning 5-YEAR AVERAGE Bartletts for fresh 5-YEAR AVERAGE SOURCE: WASHINGTON OREGON CANNING PEAR ASSOCIATION TJ MULLINAX/GOOD FRUIT GROWER Jay Grandy, manager of the Washington-Oregon Canning Pear Association for nearly two decades, will retire this year. Canners need BARTLETTS

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