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Ontario Apple
Growers Newsletter - August 23, 2005
IN THIS
ISSUE
Orchard Juice Price Established | Ministerial
Exemptions | Labeling Yellow Apples |
2005 Crop Promotional Plans in Place
Canadian Crop Outlook | US Crop
Outlook | Comments from the Apple Marketers
Association of Ontario | Self-Directed Risk
Management Production Insurance Premium Rebates
| GIS/GPS Orchard Mapping Project | Outstanding
Acreage Fee Accounts
Orchard Juice Price
Established
The Juice Apple Negotiating Agency has been able
to reach agreement on pricing for the 2005 orchard juice apple
crop at 5.38¢ per pound FOB the farm. This is the same
as the 2004 price and once again there will be no BRIX Schedule.
Many factors entered into the equation including the pricing
of U.S. juice apples, declining exchange rates, increasing
transportation costs and quality issues. The OAG is very pleased
with the cooperation of the processors on reaching the agreement.
Growers are encouraged to:
- Deliver early to maintain the highest
quality (see Fact Sheet attached)
- Schedule their deliveries and deliver
on time to allow processors to maximize their plant utilization
- Deliver marginal apples for juice
purposes at harvest time rather than risk holding on to
them for a higher price during the winter. There was no
advantage to doing so last season. >>BACK
TO TOP
Ministerial Exemptions
Canadian apple producers have agreed to provide processors
with a blanket approval to import juice apples during the
harvest to supplement their requirements and to better utilize
their plants. Growers reserve the right to rescind their approval
if they find that the system is being abused. >>BACK
TO TOP
Labeling Yellow Apples
The CFIA has confirmed that "For the purposes of
the Golden Delicious variety, varietal requirements will be
considered as being met if the packages labeled Golden
Delicious contains the following strains of the variety:
Ginger Gold, Golden Supreme, Smoothee, Goldspur, Honey Gold,
Gibson Golden, Reinders Golden, Silken, Baby Gold, Autumn
Gold, Earligold, or Goldrush. The OAG extends its appreciation
to CFIA for their cooperation and support in resolving this
important issue. >>BACK
TO TOP
2005 Crop
Promotional Plans in Place
The OAG in cooperation with Foodland Ontario and
the Apple Marketers' Association have collectively developed
an aggressive promotional and marketing support program to
drive the sale of Ontario apples. The majority of the program
will be targeted at the early season (harvest through to the
end of March) in order to move as many apples early when quality
is at its best. Plans are also in place for a spring promotion
if and when needed to promote the sale of the balance of the
crop. In addition to promotional activity in Ontario, the
OAG will be cooperating with the marketers on a U.K. Empire
apple promotion during January and February. A calendar outlining
the programs is attached. Much of the cost of this year's
program has been sourced from CORD 4 funding managed by the
Agricultural Adaptation Council. Marketers are reporting positive
results from the major retailers on last year's radio advertisements.
We will continue to build on these positive results.
>>BACK TO TOP
Canadian Crop
Outlook - 2005
The Canadian crop is estimated at 22.8 million bushels
down from 23.7 million bushels in 2004 and down from the five-year
average of 24.4 million bushels. The Ontario crop is estimated
at 8.3 million bushels down 2% from 8.4 million bushels last
year. All areas of Ontario are reporting a very clean crop
with very little hail damage to date. A complete summary is
attached. >>BACK
TO TOP
US Crop Outlook
- 2005
The U.S. crop is estimated at 223.5 million bushels
down about 10% from 248.1 million bushels in 2004 and down
2% from the five year average of 227.4 million bushels. These
are U.S. Apple forecast and are somewhat lower than the USDA
forecast. The USDA forecast is 234.2 million bushels down
6% from last year and up 2% from the five-year average. Complete
details by state and variety are attached. The 2004 crop is
cleaning up and there should be reasonable transition from
old crop to new. >>BACK
TO TOP
Comments from
the Apple Marketers Association of Ontario (provided
by Tom O'Neill for the AMAO)
As harvest approaches the marketers and growers need to think
about how to make the best use of the crop to be harvested.
I was at a meeting this summer where the speaker started his
remarks with the phrase" the reality of two years ago is not
the reality of today" The speaker was from Washington State
and he was talking about the apple industry.
The same can be said of the Ontario industry.
Today much of the apples sales are programmed from early on
and decisions have to be made early to properly market the
crop. There are fewer and fewer opportunity markets throughout
the season. Marketers must also assess the volumes to be sold
and market accordingly.
I would encourage growers to contact their
marketer and talk with them about the type of fruit they are
looking for. Discuss sizes, colour requirements, grade requirements
and volumes. It is important for marketers to know what they
have to market and for the grower to know what where his fruit
will be going.
The discussion should also include what is
the best option for fruit not meeting specifications. I call
this fruit the "hope for market fruit". Today the costs of
carrying this fruit have to be considered against the potential
for return.
Ontario fruit still carries a significant
portion of the marketplace. As we increase our volumes of
newer varieties and work together this industry will progress.
>>BACK TO TOP
Self-Directed
Risk Management
An update on the SDRM program and program payments
for the 2003 tax year is included with this newsletter. Of
particular interest is the fact that 1500 producers applied
for SDRM and only about 1200 have applied for their claim
payment. In total, SDRM participants have received about $12
million government support for the 2003 tax year from the
SDRM program. If you are one of the remaining 300, you are
encouraged to submit your claim as there will be no interest
payment on the funds in your account.
For 2004, all producers participating in
the 2003 program will soon receive pre-printed 2004 SDRM program
application forms or correspondence prior to August 31, 2005.
If a producer is in CAIS for the 2004 stabilization year and
wishes to apply for SDRM for the 2004 tax year, they are encouraged
to do so by calling Agricorp at 1-877-838-5144. >>BACK
TO TOP
Production Insurance
Premium Rebates
As you may be aware, growers who are participants
in the CAIS program and who have had a crop insurance claim
and as a result, receive a lower claim under the CAIS program,
are eligible to receive a rebate of some or all of their crop
insurance premium equal to the saving to the CAIS program
but not exceeding 100% of the grower's crop insurance premiums.
Agricorp has had several start-up problems
getting the rebate system in place. They now report that the
processing has begun although they are still working out some
of the glitches. They have assured the OAG that producers
eligible for rebates for 2003 will receive them in due course.
>>BACK TO TOP
GPS/GIS Orchard
Mapping Project
Agricorp has started the project and there is activity
in all producing areas. Approximately 20% of the orchards
have now been mapped by variety with good cooperation from
growers. A handful of growers have allowed the mapping but
have expressed concerns over the confidentiality of their
production information. Rest assured that this information
will only be used in summary form by the OAG to update the
provincial apple tree inventory and establish trends by variety
(up and down). This will allow the industry to better plan
their marketing and promotional programs and provide producers
with important production information. Participating growers
will also have a tool to use on their own farms for many purposes
including crop estimating by variety and planting changes
over time. >>BACK
TO TOP
Outstanding Acreage
Fee Accounts - Reminder
The Board extends their appreciation to all those
who have reported and paid their 2005 acreage fees. To date
approximately 80% of producers have paid their acreage assessments.
Several new growers with less than 10 acres have now become
voluntary members and several smaller growers have planted
addition acreage and/or rented orchards to now qualify as
members of the OAG. This is very encouraging. Unfortunately,
not all growers complied by the June 30 th deadline. The Board
has developed the following strategy to ensure equity amongst
all members:
- All growers with outstanding accounts
as of July 1 st will be sent a reminder.
- All accounts still outstanding as of July
31 st will be charged interest at the rate of 1 ½%
per month.
- A list of all growers outstanding as of
July 31 st will be circulated to the processors and packers
and they will be asked to deduct the outstanding amounts
from their payments to these producers.
- All growers who have still not paid their
2004 fees and who do not market through processors or packers
will be submitted to an agency for collection (the good
news is that this only accounts for about 8 growers).
- Legal actions will be undertaken as required.
>>BACK TO TOP
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