Issue link: http://read.dmtmag.com/i/543863
www.goodfruit.com Good Fruit Grower AUGUST 2015 17 sometimes they have special needs for certain varieties. While companies would rather buy on the spot market, they may face the need to contract with growers. That happens with Northern Spy growers in Nova Scotia, who grow the variety spe- cifically for two pie companies. While some varieties are considered superior for processing, because of size or some other feature, growers in Michigan have been taking out Idareds, Romes, Winesaps, and Empires as they aspire to more profitable fresh market varieties. In her job as negotiator on behalf of growers, Drake wants to find a home for their processing-quality apples, but supply and demand is not easy to even out. From the growers' point of view, they want as many apples in fresh pack as possible. In years of short apple supply, packers will put a higher proportion into fresh pack, even if they need to be less choosy about what they pack. In years of large supply, the pressure mounts on processors to take more apples. Sometimes growers have to take the bitter with the sweet. "Everybody loves Honeycrisp, but processors find it hard to use the table sorts," Drake said. "They tend to make runny applesauce, and there are more patulin issues with the juice." Phil Pitts, who runs the sales desk at MACMA, has found a small market with companies selling Honeycrisp juice. But, in the future, as Honeycrisp supplies mount, what happens to Honeycrisp sort-outs will be a growing issue. Ideally, Drake agrees, a good dual- purpose apple would be wonderful. In Michigan, which in some years has faced issues of poor color, apple scab, and poor size, growers like to make the decision at harvest whether to sell a whole block of apples directly to a processor and not incur packing charges if there are quality issues, Drake said. Varieties that have worked best in recent years are Idared, Rome, and Golden Delicious. Drake does not think that current prices for processing apples are attractive enough to entice growers to plant blocks specifically for processing. "$200 a ton is not a good price," she said. In recent years, the association has been able to achieve prices of about $240 a ton for hard varieties and $200 a ton for soft varieties, for the larger fruit for peeling. When conditions are like they were with last fall's crop, Eastern growers are happy that the West is a long way away. Processors in the East are still willing to pay for processing apples, while proces- sors in the West are turning apples away and growers are dumping them. Eastern prices for processing apples are generally not strong enough to entice Western growers to incur the transpor- tation charges to bring apples East, but in 2012 that happened when freezes decimated the Eastern crop. That year, Washington growers fared well in both fresh and processing markets. But the Eastern growers' goal is to put more apples into fresh market, where they compete head on with Western apples. • "Everybody loves Honeycrisp, but processors find it hard to use the table sorts. They tend to make runny applesauce, and there are more patulin issues with the juice." —Dawn Drake We know our field as well as you know yours. For over a hundred years, we've deepened our understanding of the complexities of agriculture operations, so we can provide you with the most informed and personalized financial solutions for your business. Whether you're a grower, processor, packager, or distributor, our broad team of specialists is ready to help your business. KeyBank is one of the nation's leading agribusiness lenders. We specialize in: • Financing for the future • Managing short- and long-term cash • Planning, protecting, and safeguarding your assets • Access to capital markets expertise and capabilities* Contact us today. We want to help your business grow and thrive. To learn more, call 800-346-8828 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. ©2015 KeyCorp. KeyBank is Member FDIC. E83409 150706-4855 83409_KB_GoodFruitGrowersAdRevise / 7.625" x 11" no bleed / CMYK 83409_KB_GoodFruitGrowersAdRevise.indd 1 7/10/15 3:50 PM