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Ontario Apple
Growers Newsletter - October 21, 2005
IN THIS
ISSUE
2005 Crop Update | Juice Apples
| U.S. Apple – Chinese Concentrate
| U.S. Senate Votes to Fully Fund Market Access
Program
National Replant Lobby Underway | Production
Insurance – Hail Rider | New Ontario
Apple Teaching Resource
New OAG Logo | Promoting Ontario
Apples | Promotional Materials | Acreage
Fee Collection Update | Safety Nets Update
Cost-shared Funding for On-farm Improvements
2005 Crop Update
It’s still too early to tell but going by the demand
for bins and the back up at the juice plants, the crop looks
like it will hit or exceed estimate. generally, the fruit
is smaller than last year which will put additional strain
on the bag market. Overall quality has been good but not as
good as expected. This may be why there is a back up at the
juice plants. Harvest has still a week or two to go and maybe
longer before all suitable juice apples are picked up.
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Juice Apples
As noted above, there is a backlog of juice apples at Ontario
plants. The processors are doing their best to move the apples
through as quickly as possible. They report that quality to
date has been as good as they have seen. One particular concern
has been over the amounts of debris they have found in apples
that were mechanically picked up. Bottles, rocks, leaves,
branches, etc. have been found. This slows down the pace of
processing. They ask that growers do a better job at catching
this at their end. To date, the OAG has not received a Ministerial
Exemption request from an Ontario juice processor therefore
100% of the juice apple purchases have been Canadian apples.
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U.S. Apple –
Chinese Concentrate
According to the U.S. Apple Association, the U.S. apple industry
has prevailed in their attempts to continue the antidumping
order. In a unanimous vote, the ITC Commissioners agreed that
the importation of Chinese apple concentrate posed a significant
threat to the U.S. apple industry; therefore the antidumping
order will continue. >>BACK TO TOP
U.S. Senate Votes
to Fully Fund Market Access
Despite comments to the effect that the U.S. intends to reduce
the cost of the U.S. Farm Bill, the U.S. Senate has agreed
to fully fund the Market Access Program for the 2006 fiscal
year. What does this mean? It means that U.S. producer organizations
will continue to have full funding to be used to finance programs
which are targeted at capturing an increased share of export
markets including Canada. We continue to advise the Ontario
and Canadian government of this market interference (subsidy)
but for the most part it continues to fall upon deaf ears.
This, coupled with the support U.S. producers receive under
the domestic feed program, provides significant support to
U.S.
apple producers. >>BACK
TO TOP
National Replant
Program Proposal
The Canadian apple, fruit and grape industry launched an all
out lobby in Ottawa on October 24th to sell in the need for
the revitalization program. Apple, Grape and Tender Fruit
producers from across Canada will meet with key MPs during
the day to discuss the plan. Each of the 308 sitting MPs from
across Canada will receive a gift pack of Canadian wine, apples
and fruit along with individual invitations to a reception
on Parliament Hill to showcase the proposal and some of the
new products our industry can produce to expand and enhance
their market share and increase their returns, provided producers
can partner with government to secure the needed investment.
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Production Insurance
– Hail Rider
The OAG continues to urge Agricorp, AAFC and OMFRA to continue
to offer the Hail Rider at the base rate premium cost sharing
(60/40) versus the high risk cost sharing of 1/3 government
and 2/3 grower. Our arguments were sent to government on October
19, 2005 and included the following comments:
“The OAG has
been advised that the Hail Rider which has been cost shared
at the base rate for many years will move into the High Risk
category for 2006. This will result in the cost sharing moving
from 60/40% to 33/67%. The overall premium cost to producers
including the hail rider will move up to the 17 – 18%
range. This simply is unaffordable and not equitable as it
penalizes the growers who operate a number of farms versus
growers who have only one farm site (whether large or small).
A number of observations are as follows:
- The growers who operate from one site
receive full hail coverage for their production unit and
only need to purchase the basic plan to receive full coverage
for all perils, including hail, at no extra cost. This provides
these growers with a tremendous advantage over growers with
multiple sites.
- As consolidation occurs in the industry
and farm sizes get larger, the amount of variability in
yield goes down due to geographic dispersion. Growers with
multiple sites therefore have reduced their potential for
P.I. claims which results in a savings to the plan. Since
growers have to take out the base coverage to get the hail
rider, the benefit from the hail rider with spot loss is
already offset by the reduced risk associated with generating
claims resulting from other perils.
- All historic information used to establish
premium rates are calculated based on previous smaller farm
size which increased the odds of claims.
- The hail rider at the base rate has operated
harmoniously with the base plan for years and apple growers
do not understand what has caused the need for change at
this time. It is obvious that moving the hail rider to “high
risk” creates inequities and the increased costs associated
with such a change will mean that P.I. will be unaffordable
for most growers. We don’t think this is the intended
outcome especially at a time that the only other alternative,
SDRM, is scheduled to end after 2005.”
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New Ontario Apple
Teaching Resource
A new apple resource is now available to teachers of Kindergarten
to Grades 6. The OAG contracted with Ontario Agri-Food Education
Inc. (OAFE) to update the resource and reprint in a new format
that has been found very useful to teachers. Teachers will
be able to purchase the resource directly from OAFE. The kit
comes with a guide, four full colour information sheets and
a variety poster. A copy of the resource is included with
this newsletter for your information. If growers would like
to order additional copies, the cost is $5.00 each plus shipping
and GST. Four copies of the cover will be included with each
kit. Please contact Kelly Ciceran by email at kciceran@onapples.com
or by fax at 905-688-5915 to place your order. Be sure to
include your delivery and mailing address.
>>BACK TO TOP
New Logo for OAG
The OAG has adopted a new logo which is included in the letterhead.
The logo to be used in our promotional materials is set out
below:
Promoting Ontario
Apples
The following is a run down of the upcoming Ontario apple
promotion activities:
- Foodland Ontario has developed
a new series of commercials which show the audience the
growing process of apples from blossom to a full grown apple
using time lapse photography. The commercial also suggests
that apples be stored separately from other fruits. Many
thanks to Foodland Ontario and OMAFRA. Other crops include
mushrooms, hot house tomatoes and cucumbers, peaches and
potatoes.
- November is the OPMA “5 to 10 a
Day for Better Health Month”. All major Ontario retailers
will carry Ontario apples and will contribute a portion
of the sale price to support the Canadian Cancer Society
and the Heart & Stroke Foundation. Their suppliers will
also provide a contribution. In total this year’s
campaign is expected to raise $25,000.
- During late October and early November
there are also a series of radio tags and commercials emphasizing
that “fresh Ontario apples” are in stores and
at farmers markets now.
- November will also see Ontario apples
featured at the Royal Winter Fair where two activities are
planned.
Heritage Cooking Stage – in partnership with
Foodland Ontario, there will be an Apple Pie Baking Demonstration
and Tasting using Spy, Idared and Empire. Fresh apples and
the new 2006 Foodland Ontario Calendar will be distributed
to the people attending the seminar.
AAFC Booth – AAFC staff will be handing
out apple POS material and recipe cards and expect to hand
out 30,000 apples. The industry will be providing the apples
which will include Honeycrisp, Ambrosia, Fuji and Royal
Gala.
- January and February 2006 will kick off
Ontario’s “Big Red Campaign”. This promotion
will feature Macs, Empire, Red Delicious and Idared apples
using radio tags and commercials. To enhance the promotion,
500,000 contest entry forms will be packed in 3 lb. bags
of Ontario red apples by participating packers. Thirty contest
winners will receive an “Ipod Nano” as their
prize.
- January will also include an Empire Apple
promotion in the U.K. – final details are still being
worked out.
- Additional activities are being finalized
for a retail display contest and additional promotion support
as required. These aggressive activities are being supported
by Foodland Ontario, the Apple Marketers Association of
Ontario, and the Ontario Apple Growers with funding support
from the CORD IV R & D Funding Program. We are very
excited about this year’s promotion campaign and look
forward to positive results. The cooperation of all involved
is appreciated. >>BACK TO TOP
Promotional Materials
There is still a supply of posters, recipe cards and booklets
available to growers. Enclosed please find an order form. >>BACK TO TOP
Acreage Fee Collection
All but $9,000 of the 2004 acreage fees have now been collected.
Commitments have been made by growers and marketers to remit
all but $3,000 of this amount. The OAG has hired the services
of Dixon Commercial Investigators to collect the remaining
fees owing plus interest
charges. There are four growers involved.
About $60,000 of the 2005 acreage fees remain
outstanding and are attracting interest charges
at 1.5% per month. Payments continue to come in daily. Several
growers have called and have requested extended terms and
agreed to pay the interest. We appreciate their cooperation.
We urge the remaining growers to remit their fees as quickly
as possible to avoid interest and/or legal costs.
The OAG is very appreciative of the efforts
and support of the marketers and processors for their cooperation
in the collection efforts. This is something they agreed to
do when the OAG was formed and we are pleased to see continued
commitment to ensure equity amongst all
growers. >>BACK TO TOP
Safety Nets Update
The OAG has received the following update:
- Roughly 28,000 Ontario producers
participated in the 2003 CAIS program. Most have been processed
(99%). 353 apple producers are enrolled in CAIS and 161
of these have received payments averaging $18,030. In addition,
these growers have/will receive the 24% top up payment.
- Roughly 9,500 Ontario producers participating
in the 2004 CAIS program have been processed. Of this, 125
apple producers have been processed and 59 producers have
received payments averaging $16,911. This is very preliminary
as only 1/3 of the participants have been processed.
- To be considered an apple producer, the
producer must have received at least 50% of his/her farm
income from apples. Therefore, if apple growers have income
from other farming operations exceeding 50% of their farming
income, they are not included as apple growers for the purpose
of categorizing producers in the CAIS Program.
Production Insurance Premium Rebates –
Agricorp has advised the OAG that they are now well underway
in reviewing the 2003 P.I. rebates and expect that all accounts
will be reviewed by the end of 2005. The OACC has requested
that these be finalized by the end of November in order that
growers will have this information in hand when they make
their decision to participate in the 2006 P.I. program. >>BACK TO TOP
Cost-shared Funding
for On-farm Improvements
Your farm may be eligible for up to $45,000 in cost-share
funding for on-farm improvements. Some eligible projects may
include:
- Improved Manure Storage and Handling
- Improvements to Fuel, Fertilizer and
Pesticide Storage and Handling
- Erosion Control Structures
- Improvements to Pesticide Application
Equipment
- Mobile Water Tanks
- Irrigation Equipment Improvements to
Increase Efficiency
- Consultative Services for Irrigation
Management Planning
- Fencing and Repellent Systems to Prevent
Wildlife Damage
- Construction of New Water Wells
- Abandonment of Old Water Wells
- Ponds for Storing Water for Agricultural
Purposes
- Delivery Systems to Bring Water to Property
Line
- Farm Water Treatment Equipment
In order to be eligible for funding, participants
must have a completed Environmental Farm Plan that has been
“deemed appropriate”. If you have already completed
an EFP between 1993 and 2004, eligible projects initiated
between April 2004 and March 31, 2006 may receive retroactive
funding.
To complete an Environmental Farm Plan you
must attend a Workshop. To attend a Workshop you must register
with Mark A. Neufeld, 905-682-2879. Workshops are held at
Rittenhouse Hall, Vineland OMAFRA. No Registration Cost. Canada-Ontario
Environmental Farm Plan Workshop dates for Niagara are:
- November 14, 2005
- January 10, 2006
- January 20, 2006
- February 9, 2006
- March 9, 2006
Additional workshops will be held in other
areas. A complete schedule of contact persons and locations
is attached.
>>BACK TO TOP
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