Good Fruit Grower

March 15

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1937 Assessment rate: One cent per box 1950s Introduction of picking bins and cartons Early 1960s CA storage introduced 1937–1947 C.E. Chase, first Washington Apple Commission President 1947–1957 Harold Copple 1957–1963 Robert Johnston 1963–1984 Joe Brownlow 1970s Asian markets open to Washington apples 1984–1994 Tom Hale shelf space and shelf location. "It was hard to go into a grocery store in the United States and not find Red Delicious apples the first thing you saw, and that was the big push of the commission. It helped Washington dominate shelf space, which was critical in influencing consumer behavior." But one of the biggest challenges he faced was the industry's shift from a singular focus on Red Delicious to multiple varieties. "Instead of being able to focus just on maximizing Red Delicious, it really required the ability to rethink not only the promotion but the merchandising, space allocation, and the types of conversations you would have with retailers," he recalled. "It introduced a lot of complexity." In 1998, after several unprofitable seasons, growers approved a three-year increase in the assessment rate to 40 cents a box in order to boost consumer advertising. When Lutz left the commission, it had a budget of more than $40 million. Welcome Sauer said that when he succeeded Lutz as president in 2000, he felt that the Apple Commission needed to work more closely with industry sales desks because they were big enough that they could do their own marketing programs. "I think that's one of the areas where I earned some respect in the industry by being willing to take the fence down between the Apple Commission and the industry sales desks, and it was well received by the industry," he recalled. Sauer said he was also pleased to see the development of the fresh-cut apple industry. Lawsuit But the greatest change that came during Sauer's Orchard Proven, University Tested Bee-Scent's natural, non-toxic pheromone ingredient induces the foraging behavior in honey bees, increasing the number of bee-to-blossom visits at each tree. The result is a higher percentage of blossom set and increased fruit yields. • Increase Fruit Set on Pears, Cherries and Braeburn Apples! • Increase Size Potential of Gala Apples by Increasing the Seed Complement! • Conforms to National Organic Program Standards • WSDA Organic Certifi ed 610 Central Avenue Billings, MT 59102 (406) 248-5856 1-800-735-5323 www.scentry.com For more information, call 1-800-735-5323 or visit www.scentry.com. 22 MARCH 15, 2012 GOOD FRUIT GROWER Bee-Scent research data obtained from Dr. Dan Mayer, Washington State University tenure was a drastic downsizing of the commission after it initiated a lawsuit to test the constitutionality of its assessments and lost. A settlement of the lawsuit, negotiated with several large growers and packers, limited the commission to handling only export promotions. The assessment rate was set at 3.5 cents per box, and a large proportion of the budget was to be passed on to support the Northwest Horticultural Council and USApple. The remainder was to be used for export promotions and to leverage federal funding for export promotions. "It was a period when the industry had gone through some very difficult economic times," Sauer recalled. "I don't think anybody in the industry looks back on those days with much fondness." Managing with less When Dave Carlson, a former board member, took over as president in 2003, the staff had been reduced to seven people, down from more than 50 (not including overseas representatives) before the settlement. The commission no longer had regional managers working on the domestic market. The smaller budget required a major change in mindset, Carlson recalled. "We didn't have an unlimited budget. We really had to focus on making every nickel count." Todd Fryhover, who succeeded Carlson as president in 2009, said the direction the commission takes in the future will depend on whether matching federal Market Access Program funds continue to be available. For the current year, the commission received $4.8 million in MAP funds, which pay for most of its export activities. There are fears that the program might be cut as part of federal budget-cutting efforts. "If the funding changes, there's going to have to be some dramatic changes to the Apple Commission promotional program," Fryhover said. "But I'm going to be optimistic—I'm going to assume that either the MAP funding will continue, or the industry will continue to fund us at a level where we can have an impact in overseas markets." • www.goodfruit.com - — 1940 - - - - — 1950 - - - - — 1960 - - - - — 1970 - - - - — 1980 - -

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