Issue link: http://read.dmtmag.com/i/61297
The future for organic apple sales is not bright E Desmond O'Rourke Economist suggests that "sustainable" has a better outlook. by Richard Lehnert astern United States apple growers fear that organic fruit production will really take off. That was evident in questions posed to the speaker. "How can we compete with western growers who grow in desert conditions when we have all these insects and diseases to contend with?" asked Paul Rood, fruit grower from southwest Michigan. "Will we be able to modify organic practices to fit our conditions?" "I hear that Walmart is going organic big time," said Fruit Ridge apple grower Harold Thome. "If they go that way, all the other big retailers will follow, and where will that leave us?" The speaker, apple industry analyst Desmond O'Rourke, didn't seem to share their fears. He noted that organic practices are rigid, not flexible, and—addressing Rood's question—can't be altered no matter what the sit- uation. That, he said, is a huge disadvantage. "It's like try- ing to fight Muhammad Ali with one hand tied behind your back," he said. The only reason growers would choose to do that is if there is a price premium. His take on Walmart was not at all like Thome's. "Walmart has had a long dal- liance with organic and has decided it does not fit the needs of their clientele," he said. "Walmart is very lukewarm on organics, and its prospects at Walmart are definitely up in the air." About 8 or 9 percent of the apple "Walmart is very lukewarm on acreage in the West is organic, he said, but in some years as much as 20 percent of the fruit is sold as conventional because it doesn't meet buy- ers' standards. So the price premium is not there for all the fruit that organic growers raise. "There has been no increase in organic apple acreage organics." —Desmond O'Rourke What organic producers need is a tar- geted marketing campaign, something they have not so far done. In his view, "sustainable" has a much better outlook than does "organic." O'Rourke, who is president of Belrose, Inc., came to Michigan from Pullman, Washington, to speak to the Michigan Pro- cessing Apple Growers Association about the future of the apple industry. The grow- ers belong to a legally constituted associa- tion accredited under Michigan law to in Washington in the last two years," he said. The price premium, once more than 50 percent, has fallen to 30 percent now. bargain with apple processors on price and other terms of sale. The association enjoys good grower support, with about 60 percent of processing apples—whether sort-outs or apples grown especially for processing—represented by the members. At their annual meeting, they were enjoying success—prices for juice apples and apples for other processed products have been good in recent times. Green Through Better Technology. a manner that is environmentally responsible. Traditional old, resulting in increased application rates and repeated calls to reduce or ban the very nutrients needed to accomplish your goals. Through the science of Redox, we have solutions that lower application rates by as much as 98 percent – including both phosphorus and nitrogen – while improving or maintaining crop quality and yields, without increasing the overall cost of treatments! Technical data demonstrates that Redox product solutions are the environmentally friendly choice for superior fertility management. But the results that matter are the show up in exceptional yields, and not in the streams. Ask your GS Long Co. representative about how you can grow "green" while seeing more "black" on your bottom line. U Redox Chemicals, LLC Distributed By www.redoxchem.com G.S. Long Co. Contact Doug Anyan (509)949-9231 douga@gslong.com Yakima, WA, Wenatchee, WA and Hood River, OR www.gslong.com 8 APRIL 15, 2012 GOOD FRUIT GROWER www.goodfruit.com T H E P O W E R O F N N E H A C R E T T S I E C E O F R E D O X