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Ontario Apple Growers Newsletter - March 10, 2005

IN THIS ISSUE
OMAFRA Funding Announcements | CAIS Program Status | Inventory Valuation for CAISP | Apple Promotion Update
Market Update | Storage Holdings | GIS/GPS Mapping Project | National Replant Program | Apple Working Group – Trade Action
AAC Approved Remote Post-Harvest Storage Project | Retailers Taking Food Safety Serious | Fire Blight Fact Sheet
Tree Fruit Field Guide | Publication 360 – Fruit Production Recommendations 2006 – 2007 | Wanted – Wooden Bushel Boxes

OMAFRA Funding Announcements
The Honourable Leona Dombrowsky, Minister of
Agriculture, Food and Rural Affairs announced on March 6, 2006 that the Ontario government
will provide the following support for Ontario producers of edible horticultural crops:

   Edible Horticultural Crop Payment - $35 million will be paid directly to producers of edible horticultural crops to offset past losses sustained by the horticultural sector on their 2005 crop. Producers enrolled in the CAIS Program for the 2004 program year will
be eligible and will automatically receive a payment. Producers who did not enroll in the CAIS Program for the 2004 crop year must submit an application form and copy of their 2004 T2024 or T1163 (as submitted to the Canada Revenue Agency) to Agricorp by June 30, 2006. Applications will be available on March 13, 2006 by calling Agricorp at 1- 877-838-5144 or visiting Agricorp’s website at www.agricorp.com to download the application form. Producers will receive 2.6 percent of their eligible net sales of edible horticultural crops for the 2004 (2005 crops for new farmers). If there are funds remaining after all applications have been paid, a final payment will be made to all
eligible producers. Example – If eligible nets sales = $100,000, a benefit of $2,600 will be paid. There is a $500,000 cap on payments. APPLE GROWERS are eligible to receive over $2 million from this program.Combined, apple, tender fruit and grape growers represented by the St. Catharines Board offices are eligible for approximately $5 million.

   Self-Directed Risk Management – Ontario will provide the province’s share of the 2006 SDRM program and will urge the federal government to participate as a partner in this program to provide their share as well. Ontario’s share is expected to provide $5 million
to edible horticultural crop producers. Minister Dombrowsky recognized the significance of the horticultural industry to the economies
of Ontario and Canada. She noted that this was a first step in what is expected to be a multiyear strategy that will stabilize and strengthen the province’s agricultural industry for the future. On behalf of the apple industry, Board Chair Jim Rickard acknowledged that the industry was grateful for Ontario’s support and offered to work with government to determine further transition programming as we move towards APF 2. Jim also stated that the Board had contacted Minister Chuck Strahl to urge the federal government to come to the plate and provide their appropriate share of these important funding initiatives. Our appreciation is also extended to the Ontario Fruit & Vegetable Growers’ Association for these efforts which culminated in these positive and meaningful results for their members.

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CAIS Program Status
Agricorp has provided the following summary of the CAIS Program:

Inventory Valuation for CAIS Program
As part of the payment calculation, CAIS requires growers to submit their annual inventory records. Many growers have used the CAIS Fair Market Value list as a guide for how to classify their apple inventory. Since the fair market value list only lists a fresh apple and a processing apple price, most growers have chosen to simply lump their apple inventory, regardless of variety or grade, into fresh or processed.

Growers can provide their apply inventory by variety and grade if they feel it will make CAIS more responsive to their situation. When doing so, growers will also need to provide an estimate of what they think is the fair market value or price of that variety and grade of apple.
As part of the review process when approving payments, Agricorp may require the grower to submit documentation to support the fair market values he/she has provided.

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Apple Promotion Update

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Market Update
Fresh Market – Movement has been good with most packers stating they are meeting their sales targets. Although prices have stabilized, there is little improvement from last year. Retail pricing has varied widely with some very low retail price points. This has increased the
movement of Ontario apples at retail but will result in some very low returns to packers and subsequently to producers. Quality has been very good although there has been a higher than normal percentage of bag sizes this year. Apples treated with SmartFresh are coming out of storage in very good shape.

Juice Market
The market for juice apples was slow during January and February but has now opened up and available supplies have been moving to market in an orderly fashion, both locally and to Quebec and U.S. outlets. One major processor reported that they have developed a new juice product for a major Canadian retailer and are already reaping significant increases in sales. A good example of what can happen if you are able to differentiate your product from the main stream
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Storage Holdings
Please find attached the latest Ontario storage holdings. These are probably the most accurate figures the industry has had for a number of months. Recently, we have been reluctant to provide storage holding reports as the information has been at best
incomplete. This was mainly as a result of CFIA not gathering the information as thoroughly as they have in the past. This is a very serious situation for commodity groups as well. Meetings have been held with AAFC and CFIA to determine a strategy for the future to ensure timely and accurate delivery of the vital market intelligence information.

The OAG and the Tender Fruit Board have agreed to hire a “Production Research Analyst”
whose responsibilities will include storage holdings, cost of production, GPS mapping follow up,
crop estimating and other market intelligence gathering duties deemed appropriate.
USApple reports in their March 9th Market News that U.S. fresh holdings of 51.1 million bushels
were 12 percent below last year, but were 2 percent above the five-year average.
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GPS Mapping Update
The project has continued throughout the winter months and is now nearing completion (about 80% of Ontario orchards have been measured). Agricorp will be supplying OAG with the total acreage for each grower. This acreage information combined with grower acreage reports will be used to determine acreage fee charges for the 2006 year. The OAG and Agricorp hope to be in a position to provide detailed maps to growers by the end of July.
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National Replant Program
The Replant Proposal has been delivered to the Provincial and Federal Governments and we await a decision. In preparation for a positive outcome, the OAG will be consulting with the marketers and processors to develop a business plan which would determine which varieties to either remove or plant based on market projections. The GPS measurement project results will play a crucial role in this strategic planning process.
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Apple Working Group – Trade Action
The Apple Working Group, representing all apple producing provinces, has provided unanimous support to proceed with a trade action against Washington State apples due to the dumping of their apples onto the Canadian market at distressed prices which resulted in downward price pressure for Canadian apples. Grower returns for the 2004 crop were down between 25% and 40% from previous years depending on variety and province, and returns have not improved much for the 2005 crop. The varieties targeted are Red and Golden Delicious, Royal Gala and Granny Smith.
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AAC Approved Remote Post-Harvest Storage Project
The University of Guelph has decided to relocate the existing post-harvest lab at the university. This will result in a reduction of approximately 50% in their capacity to conduct post-harvest research on apples. To offset this loss, the OAG applied for funding under the CanAdvance Program to establish a remote storage facility in Simcoe which will be dedicated to apple post-harvest research to supplement the research activities conducted at the Guelph lab. The facility will be up and running for the 2006 crop. The Agricultural Adaptation Council has approved 80% funding for this five-year project. The Canadian Horticultural Council, on behalf of the other apple producing provinces, has agreed to provide $50,000 and the OAG the remaining amount. The OAG share will come from the residual funds from the Ontario Apple Marketing Commission which was turned over to the OAG by the Farm Products Marketing Commission. The OAG extends its thanks to AAC and CHC for their support for this important project.
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Retailers Taking Food Safety Serious
Loblaws and Sobeys have advised their suppliers that they will be requiring an independent review of their food safety program. Loblaws has identified 3 audit firms which will be acceptable to them. The audits will take place during the 2006 season and suppliers are expected to make the necessary improvements. In their letter, Loblaws states that the Canadian industry is expected to meet the standards established by the Canadian Horticultural Council’s (CHC) Food Safety Program. In most cases, apple packers already meet either HACCP and/or Eurogap Food Safety standards and as a result growers are already compliant with the pre-requisite programs. Apple growers are urged to discuss this with their packer to determine if they will be requiring anything new. The CHC has developed a Tree Fruit and Vine On-Farm Food Safety Manual which is currently going through technical review process. Copies of this draft manual are available on CD only. If you are interested in receiving a copy of this CD please complete the attached form and fax it to the office or call Kelly Ciceran at 905-688-0990 ext. 241 to place your order. Hard copies of the manual will not be available until the final review process is complete which is expected to be in the summer of 2007.
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Fire Blight Fact Sheet
Enclosed please find a fact sheet developed by Agriculture and Agri- Food Canada (AAFC) and CHC. This document contains information on a variety of practices that can be used to help manage fire blight. The authors are suggesting that to obtain optimal control of the disease, an integrated pest management approach must be used. AAFC will be providing a CD of the Cougarblight prediction model to all apple and pear growers in Canada. The OAG will mail one to each Ontario apple growers once we’ve received them.
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Tree Fruit Field Guide
The Board will be purchasing copies of Tree Fruit Field Guide to Insect, Mite, and Disease Pests and Natural Enemies of Eastern North America for each apple producer. This resource has been developed by Natural Resource, Agriculture, and Engineering Service (NRAES) Cooperative Extension in the United States specifically to assist growers in identifying pests in the orchard. This full colour Guide focuses on tree fruit production in the eastern United States and Canada and one free copy will be mailed to each grower in May. Funding to provide this resource was obtained from Agricultural Adaptation Council (AAC) CORD IV funding. The Board would like to thank AAC for their continued support.
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Publication 360 – Fruit Production Recommendations 2006 – 2007
The newest version of Publication 360 will be available to growers in June 2006. The Board has secured funding from AAC CORD IV to purchase and mail one copy to each Ontario apple grower. The cost of Publication 360 has increased this year from $10 to $20 each. As well, since the Board is buying a bulk quantity, we are receiving a 30% discount. Our thanks to AAC for their funding support.
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Wanted – Wooden One Bushel Boxes
Dennis Taylor of Cannamore Orchard is looking for one bushel wooden apple boxes. These are to be used for displays. He has a collection of boxes from the Ottawa and St. Lawrence Valley region but would like to get more from the rest of the province. Please contact Dennis for further details at displaystuff@bellnet.ca or at 613- 448-3633.
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Yours truly,

Adrian Huisman

Manager

Kelly Ciceran

R & D Coordinator

Ontario Apple Growers - Newsletters

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