California Cling Peach Industry Update and Review of Our - - PowerPoint PPT Presentation

California Cling Peach Industry Update and Review of Our Mechanization Initiative

National Peach Council Meeting Thursday, February 2, 2012 Hershey, Pennsylvania

California Canning Peach Association

• Cooperative Marketing and Bargaining

Organization Founded in 1922 – Oldest Bargaining Cooperative in the Nation.

• Owned by nearly 500 grower – members

representing approximately 80% of California’s cling peach growers.

• Objective: Enhance grower returns and seek

to maintain industry profitability.

• Our role is not limited to raw product pricing.

The California peach industry consists of many generations-old family farms. Our average farmer grows 50 acres of peaches. Our peaches are picked at the peak

• f ripeness and

generally packed within 24 hours of picking.

Consolidating U. S. Processed Peach Industry in California

• 1952 –

42 CANNERS

• 1972 –

17 CANNERS

• 2011 –

3 CANNERS 2 FREEZERS

California Canning Peach Association 2011 Peach Processors

Canners Del Monte Foods Seneca Foods Pacific Coast Producers Freezers Dole Packaged Foods Wawona Frozen Foods

30.9 31.4 31.7 30.2 26.8 26.3 24.9 24.3 22.8 22.3 23.1 22.0 23.0 24.0 25.0 26.0 27.0 28.0 29.0 30.0 31.0 32.0 33.0 34.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Proj. Thousands of Acres

California Cling Peach Bearing Acreage Trends 2002 - 2012

Cling Peach Acres Pulled vs. Acres Planted 2005 - 2010

3,912 890 4,526 990 1,284 969 2,372 1,479 1,291 1,650 2,463 1,075

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Acres Pulled Acres Planted

Acres Total Acres Pulled: 15,848 Total Acres Planted: 7,053

Cling Peach Delivery Trends Total Tons to All Processors

522 529 476 559 519 530 481 355 490 420 466 430 391

300 350 400 450 500 550 600

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Thousands of Tons

2011 Deliveries Down 9% from Last Year

California Cling Peach Industry Average Yield Trends

Year 2011 2010 2009 19.2 2008 16.9 2007 18.6 2006 13.3 2005 15.9 2004 16.7 2003 17.0 2002 18.1 17.2 10 Year Avg. Yield: 17.5 Yield/Acre 18.9

California Cling Peach Price Trends

$318 $286 $321 $286 $287 $233 $237 $235 $237 $239* $237* $276

$160 $180 $200 $220 $240 $260 $280 $300 $320 $340

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Price /Ton

*Average Value Ton – Converted to Same Basis as 1999 – 2003

$291

• Availability
• Timing
• Quality & Productivity
• Impact of Stepped Up Immigration

Enforcement

• Uncertainty Regarding Future U.S.

Immigration Law Reform

How do we harvest our fruit without access to a sufficient labor force?

Labor Concerns

U.S. Canned Peach Import Trends 2000 - 2011

1,235 2,345 3,065 2,410 1,763 1,815 2,369 4,118 4,217 3,099 3,102 3,334

400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800

99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11

Thousands of Cases

• U. S. Canned Peach Imports

2010 – 2011 Marketing Year

Greece 687,664 Cases 21% Chile 124,937 Cases 4% South Africa 83,123 Cases 2% China 2,279,605 Cases 68% All Other 159,093 Cases 5%

Marketing Year Total: 3,334,442 Cases (+ 7%)

• - American Institute for Cancer Research

“Canned and frozen fruits not only

• ffer great nutrition, but they are

inexpensive and convenient ways to make sure that we maximize the variety and number of fruit servings needed to protect our health.”

Summary

• Canned fruit offers great nutrition and is less

expensive on a cost per serving basis than fresh

• fruit. Shelf stable canned fruit is available year-round

and arrives ready-to-eat and packaged in appropriate portion sizes.

• Several university studies confirm that canned fruit

is nutritionally comparable to fresh fruit.

• Canned, Frozen, Dried, and Fresh – “It’s All Good!”

Canning Peach Mechanization Research Fund

• As part of our agreement with processors to jointly

fund peach mechanization research, CCPA formed a new entity called the Canned Peach Mechanization Research Fund in 2008.

• Growers and processors have completed the third

year of our three year agreement to jointly contribute 50¢/ton to fund the organization’s activities.

• The organization’s activities involve the joint funding
• f research work and demonstration projects aimed

at reducing the labor cost for growing and harvesting cling peaches.

Canning Peach Mechanization Efforts Underway

• Varietal Research
• “Long Keeper” Varieties (One Pick)
• Size Controlling Rootstock
• Mechanical Thinning
• Blossom Thinning (Darwin)
• Green Fruit Thinning
• Hand Held Thinners
• Vacuum Assisted Fruit Harvesting
• Oxbo/Picker Tech Unit
• DBR Unit
• Participation in SCRI Projects
• Fruit Thinning
• Harvest Technologies

Blossom String Thinner Trials

Oxbo/Picker Tech Fruit Harvester Trials

2011 DISTRICT MEETING SCHEDULE

DISTRICT DATE & TIME LOCATIONS

1 & 2 9:30 a.m. Moose Lodge Weds., November 9 Gridley 3, 4 & 5 2:00 p.m. Ag Commissioner's Office Weds., November 9 Yuba City 10 & 11 2:30 p.m. Kearney Ag Center Tues., November 15 Parlier 9 9:30 a.m. JACL Hall Weds., November 16 Cortez 6, 7 & 8 2:30 p.m. Stanislaus County Ag Center Weds., November 16 Modesto

“A Home and A Price” Representing California Growers Since 1922