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Sweet Yields?

Industry experts talk cherries
MS_Cherries_2

As the new season approaches, take a dive into the cherry industry as growers talk varieties and yields, receivers prep for the crop, and retailers get set to market the perfect fruit snack.

High Demand & Big Yields
The cherry industry is coming off a high, with more than 1 billion pounds produced in both 2014-15 and 2016-17, with 2017-18 predicted to go even higher. Growers faced the usual jittery moments during the early part of the season, but most are faring well.

Scott Marboe, marketing director for grower-shipper Oneonta Trading Corporation in Wenatchee, WA is excited about the new season. The sky, it seems, is the limit. “We keep selling more and we keep producing more.” The numbers tell a clear story of the rise: in 2000, cherry production was valued at $327.5 million, and in 2016 that number had more than doubled at $862.4 million.

James Michael, vice president of marketing for North America for the Washington State Fruit Commission, credits “improvements in market development, consumer education, and health research” for rising domestic and international demand.

For Aaron DeHerrera of Rainier Fruit Company in Yakima, WA, quality had the most influence. “Consumers responded positively to the excellent quality this past season with strong demand and return purchases,” he observes. And, grower-shippers are counting on this double-sided trend to continue for the upcoming season. “With the volume of newer plantings coming into production, we really rely on repeat purchases.”

The strong yields, however, did cause one concern for growers and receivers, what Ray Norwood, director of sales and marketing for Auvil Fruit Company, Inc. in Orondo, WA, called a “glut in supply after the Fourth of July” in both domestic and export markets, resulting in “a substantial drop in selling price.” And although the lower pricing may have dismayed suppliers and retailers, it was a boon for consumers.

Willing Weather
Last season was blessed with good weather and no significant temperature swings or extreme events. “This last year (2016-17) was a super year—the best year we’ve seen in a long time,” enthuses Mike Jameson, marketing director for Morada Produce Company, L.P., in Linden, CA near Stockton.

Dick Reiman, president of River City Produce Sales, a distributor and shipper from Sacramento, CA, concurs. “We had a really good wet, cold winter and got through bloom and harvest with no rain, so last season was a good season for us.”

Since cherries require a combination of weather elements, not all varieties fare as well, with some requiring greater chill hours than others. “Chill and a wet winter like last year are important,” agrees Jameson. Even though November was marked with warmer temperatures, he says, “December is the most important month to get the chill we need for a season with strong trees.”

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As the new season approaches, take a dive into the cherry industry as growers talk varieties and yields, receivers prep for the crop, and retailers get set to market the perfect fruit snack.

High Demand & Big Yields
The cherry industry is coming off a high, with more than 1 billion pounds produced in both 2014-15 and 2016-17, with 2017-18 predicted to go even higher. Growers faced the usual jittery moments during the early part of the season, but most are faring well.

Scott Marboe, marketing director for grower-shipper Oneonta Trading Corporation in Wenatchee, WA is excited about the new season. The sky, it seems, is the limit. “We keep selling more and we keep producing more.” The numbers tell a clear story of the rise: in 2000, cherry production was valued at $327.5 million, and in 2016 that number had more than doubled at $862.4 million.

James Michael, vice president of marketing for North America for the Washington State Fruit Commission, credits “improvements in market development, consumer education, and health research” for rising domestic and international demand.

For Aaron DeHerrera of Rainier Fruit Company in Yakima, WA, quality had the most influence. “Consumers responded positively to the excellent quality this past season with strong demand and return purchases,” he observes. And, grower-shippers are counting on this double-sided trend to continue for the upcoming season. “With the volume of newer plantings coming into production, we really rely on repeat purchases.”

The strong yields, however, did cause one concern for growers and receivers, what Ray Norwood, director of sales and marketing for Auvil Fruit Company, Inc. in Orondo, WA, called a “glut in supply after the Fourth of July” in both domestic and export markets, resulting in “a substantial drop in selling price.” And although the lower pricing may have dismayed suppliers and retailers, it was a boon for consumers.

Willing Weather
Last season was blessed with good weather and no significant temperature swings or extreme events. “This last year (2016-17) was a super year—the best year we’ve seen in a long time,” enthuses Mike Jameson, marketing director for Morada Produce Company, L.P., in Linden, CA near Stockton.

Dick Reiman, president of River City Produce Sales, a distributor and shipper from Sacramento, CA, concurs. “We had a really good wet, cold winter and got through bloom and harvest with no rain, so last season was a good season for us.”

Since cherries require a combination of weather elements, not all varieties fare as well, with some requiring greater chill hours than others. “Chill and a wet winter like last year are important,” agrees Jameson. Even though November was marked with warmer temperatures, he says, “December is the most important month to get the chill we need for a season with strong trees.”

Voluptuous Varieties
With over 1,000 varieties of cherries, only 10 are produced commercially in the United States. Three states dominate sweet cherry production for the fresh market (Washington, Oregon, and California) while Michigan leads the charge for tart cherries (most for the processing and foodservice markets).

Washington
Perennial favorite Bings are still the rage in Washington, but up-and-comers are nibbling at the succulent fruit’s dominance. “The Bing cherry is the standard all other sweet cherries are compared to,” says Norwood, but, he admits, “many other varieties are gaining a following.” Auvil Fruit grows primarily Rainier cherries, in addition to Bing, as well as Cristalina, a mid-season heart-shaped dark red to black cherry that can be picked stemless.

DeHerrera notes that more growers are planting Skeena cherries too. As a later season kidney-shaped variety, Skeena is known for good tolerance to rain-induced cracking. Marboe believes many new varieties will appear in the future, though he cites Rainier and dark sweet varieties as top among Washington growers.

“The main cherry varieties we grow are the same we’ve seen for the past 10 years,” shares Michael. However, he has “seen a small expansion into the early-ripening yellow cherries, all subvarieties of the popular Rainier.”

Oregon
High elevations produce sweet rewards for cherry growers in Oregon. The Willamette Valley and Mid-Columbia Valley areas contribute most of the state’s supply from a total of 15,500 acres.

Bing cherries are not only most prevalent, but originated in Oregon. June and July are the bigger harvest months, with remaining fruit hand-picked by the mid- or the end of August, depending on weather influences and variety.

California
In California, the Coral Champagne cherry is the newest kid on the block. “Corals do well with good yields for quality and flavor,” shares Jameson. The fruit has been well-received, he says, and “all new plantings in south and north have been Coral.” Similar to Bing in flavor, Coral cherries are firm, large, and a standout for exports. Jameson says Corals grow well in all districts, “from the earlier season in Bakersfield and Lodi all the way up to Stockton.”

Reiman has been getting “later and later variety Chelans,” which have a more tart flavor profile. After a large orchard in Bakersfield was taken out, he has fewer early season cherries, but says the lion’s share (around 80 percent) is consistent with Bings.

Precision Packing
Cherry packing has become progressively cutting edge. “For the most part, our industry has transitioned into optical sorting technology,” confirms Michael. The shift to the high-tech equipment has a dual benefit, as it “has allowed us to manage larger crops while maintaining quality and efficiency.”

“There are many changes on the packing side with everyone going to these high-optic machines that do a phenomenal job of sorting,” agrees Jameson. With a sharp eye for size, color, and defects the machines are “very uniform as far as the final pack,” he continues, “so most packers in California are implementing some sort of optics into their facilities.”

Rainier Fruit is enjoying its second season with what DeHerrerra describes as an all-new “massive packing line,” and says everyone is “very happy with the flexibility and speed it provides both for us and our customers.”

Morada Produce, too, is increasing capacity, adding another 40 lanes by 2019 for a total of 100 lanes, all with optic sorting.

International Markets
Just as demand for cherries has increased domestically, international customers are clamoring for more of the bite-size orbs as well. Morada Produce exports nearly 40 percent of its supply, with the remaining 60 percent sold in the United States.

Shipping to worldwide destinations, however, can present challenges. Markets each have their own tolerances for chemical levels, and Morada maintains full-time staff to monitor and keep track of every country’s requirements.

Although Japan used to be the largest importer of California cherries, Jameson says quantities have “decreased dramatically over the past 10 years. Fortunately, he sees South Korea as a promising market, as shipments continue to climb each year.

Reiman at River City still ships a great deal to Japan, but also sees South Korea becoming a bigger player, highlighting the two countries as Asia’s top cherry importers. Marboe has seen “many new markets open up and continue to grow,” citing Korea, Australia, and China.

Hurdles: Pests, Labor
Although it has not been an issue lately, the spotted-wing drosophila hovers in the back of California growers’ minds. The pest is a particular headache for organic growers. “Once there is any infestation and we have to spray, we have to take those trees out of the organic program,” explains Jameson. The result not only limits supply but “makes growers leery to go into organics because of the three-year certification process.”

The Pacific Northwest has fared a little better; Michael says, “pests and diseases are rarely an issue due to our climate, topography, and hard winters.”

Aside from pests and disease, “Labor and water from a production standpoint are key issues,” notes Jameson. Although water had been a critical issue in certain districts, last year’s wet winter helped. Regarding labor, the ability to hire returning workers who know the fruit and processes is a plus. “We’ve been fortunate to deal with the same people every year.”

Some Washington growers were not as lucky, and had cherries left hanging in trees due to a dearth of workers. “There were several million boxes that did not get harvested due to labor and market conditions,” admits DeHerrera.

FRESH FORUM
What changes do you see for grower-shippers in the next year? Five years down the road?

James Michael, Washington State Fruit Commission
The oldest adage in the cherry industry is, “the only thing for sure we know about next season is that it will be different.”

Dick Reiman, River City Produce Sales
I see steady product continuing and look forward to another great year, similar to what we had last year.

Aaron DeHerrera, Rainier Fruit Company
Labor will continue to be our most difficult challenge now and in the future. People might not realize that every single piece of fruit we pack is picked by hand.

Ray Norwood, Auvil Fruit Company, Inc. 
I anticipate small growth in the Washington cherry crop in the next few years, with some of the newer varieties gaining more of a following.

Scott Marboe, Oneonta Trading Corporation
Continued quality crops and consumer demand; newer varieties coming into production; and a new, more consumer-directed package.

Mike Jameson, Morada Produce Company, L.P. 
The volume in the state is getting bigger and bigger every year. We used to do 2 to 3 million cartons, and now we’re hovering close to 10 million. There are enough in the ground to keep up, we just need to focus on producing the quality fruit the market is looking for.

Bright Future
As one of the world’s largest cherry producing regions, the western United States has carved a dominant and delicious niche—but only for a few months. “Most products are year-round,” says Reiman, “but cherries are one of the few that still have a specific season.”

Luckily, demand and volume are clearly there. “Quality is key as we get more and more volume,” says Jameson, who sees the focus shifting to larger, firmer varieties that more easily maintain their quality.

Photo Courtesy of Auvil Fruit Company, Inc.

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