Issue link: https://read.dmtmag.com/i/514197
www.goodfruit.com GOOD FRUIT GROWER JUNE 2015 33 India F r e i g h t t o I n d i a , Washington's third most important export market after Mexico and Canada, can cost $4,000 to $6,000 per container, or $4 to $6 a box. A 50 percent duty is charged on the landed cost (f.o.b. price plus freight). That doubles the cost of a $15 box of Red Delicious and puts other varieties out of the price range of most Indian buyers, particularly now that the dollar is so strong against other currencies. "I think the biggest hurdle on the club varieties is not acceptance, it's not quality, it's that price point that's going to hold it down," Fryhover said. "It's going to be a niche deal." Opportunity But Fryhover said if prices of newer varieties moderate as volume increases and the domestic market becomes satiated, opportunities for exporting new varieties should improve. Gala, a new variety 30 years ago, is now Washington's number-two export variety with almost 7 million boxes (almost a third of the crop) exported last season, and Fryhover expects volumes to increase. More than 4 million boxes of Washington Fuji apples (also close to a third of the crop) were exported last year. Fryhover said Indonesia, with a population of 260 million and a growing middle class, could develop into a good market for new varieties. "Apples in Indonesia are exotic—a lot like tropical fruits are here," he said. "Red Delicious is a major com- ponent in Indonesia and they pay good prices, but other varieties are starting to make inroads." Consumers there are developing a taste for Ambrosia, Jazz, Envy, and Sonya apples, he said. "You can go there and see some of this product. There's not loads and loads and loads, but there're pallets being put on loads to diversify that market." Fryhover said Indonesia and Taiwan could be good potential markets for Honeycrisp, but, as long as the domestic market is paying high prices, shippers won't want to risk putting a $70-a-box apple on a ship for sev- eral weeks and having quality problems on arrival. If Red and Golden Delicious production declines as a result of poor returns this season and new varieties maintain their high prices, it will be diffi cult to maintain exports at their current levels, however. It would have a huge impact on Mexico, which is Washington's largest export market, taking almost 6 million boxes of Reds and 4.5 million boxes of Goldens. Those two varieties make up about 75 percent of the Washington apples going to Mexico. But on the positive side, China is opening this year to all varieties of apples, not just Red and Golden Delicious, as in the past. New varieties have been going into China unoffi cially via Hong Kong, where importers could pay as much as U.S.$30,000 a container in kickbacks to move the fruit through the so-called gray channel, Fryhover said. Going the legal route, apples will face a duty and val- ue-added tax totaling 23 percent of the value. This means that Washington apples should be much cheaper for Chinese consumers than they have been. "I'm very excited about that," Fryhover said. • "Red Delicious is a major component in Indonesia and they pay good prices, but other varieties are starting to make inroads." —Todd Fryhover Bleyhl Farm Service 1/3 block BW BRITE 'NUP Orchard Reflective Fabric 4000' Rolls In Stock Promotes early ripening & better color by reflecting sunshine into the lower canopy 800-645-4416 * Grandview, WA Several Widths Available * Call For Competitive Bid Pricing Brite 'Nup is OMRI listed. It may be used in certified organic production or food processing and handling according to the USDA National Organic Program Rule. on OHxF-87, & Pyro 233 Pears Apples on M-9 T337, M-9 PAJAM 2®, EMLA 26, Geneva® 41, Bud 118 & Bud 10 on Krymsk® 5, Krymsk® 6, Gisela® 6, Gisela® 12 Mazzard, Mahaleb & EMLA-COLT Cherries