Issue link: http://read.dmtmag.com/i/54939
"That's exciting," Moffitt said. "That market could be 200,000 to 300,000 boxes. I think in five years, depending on the size of our crop, maybe an additional one million boxes is feasible." Argentina Foreman, who has a bachelor's degree in economics from Harvard, a master's in Preripening of pears is a key, says Mike Taylor. Export markets Foreman said if the U.S. pear industry could develop export markets for an addi- tional one million boxes, returns to pro- ducers should average $1.25 a box more, for a total of $35 million. The more pears exported, the stronger the returns overall. Foreman said even if there was no return on the actual fruit exported, the increased returns on the domestic market would still make exporting more fruit beneficial. "We have the ability to control how much effort we take to develop and prior- itize export markets, such as Russia and India, with the result of receiving higher returns across the entire manifest," he said. Mike Taylor, marketing director for Stemilt Growers, Inc., Wenatchee, said he agreed with Foreman's theory that exporting more would improve overall profitability. "I do believe that the market- place is sophisticated enough for us to lower prices for export pears for the sake of movement," he said. "I believe that's a very doable thing. If we can hold the domestic market at a price level that pro- vides a really good grower return and export the surplus at a discount, we can have a better business model." Kevin Moffitt, president of the Pear Bureau Northwest, said Foreman made some thought-provoking observations, but it would be difficult to open up over- seas markets for an additional one million boxes of pears overnight. Lowering the export price might boost sales in some places, but Northwest pears are still a niche in many markets that are well supplied with local and imported fruit. However, there are hopes of expanding exports over the next few years in emerg- ing markets like Russia and India where the middle class is growing, making imported pears affordable to more consumers. There's a possibility that the United States will gain access for pears into China during the 2012–2013 season (see "Access to China is near," page 11). www.goodfruit.com 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. Credit products are subject to credit approval. Key.com is a federally registered service mark of KeyCorp. ©2011 KeyCorp. KeyBank is Member FDIC. ADL3614 no matter how you slice it Agribusiness can be cyclical; our support is constant. KeyBank is one of the nation's leading Agribusiness lenders – and your first source for financial guidance or assistance. Every one of our bankers has the agricultural and financial savvy to identify the nuances of your business, whether you're a grower, processor, packager or distributor. We specialize in: • Managing short- and long-term cash • Planning, protecting, and safeguarding your assets • Financing for the future • Access to capital markets expertise and capabilities Contact us today and help your business grow and thrive. go to key.com/agribusiness call Mike McKay at 800-346-8828 GOOD FRUIT GROWER FEBRUARY 15, 2012 9