Recent Trends in Organic Tree Fruit Production: 2002

1
Recent Trends in Organic Tree Fruit Production
2002
Organic pears near Chelan, WA

• David Granatstein
• Center for Sustaining Agriculture and Natural
  Resources, Wenatchee, WA

2
Growth of Organic Food Sales
Projected 20 billion in sales by 2005
Source Organic Trade Association
3
Acreages of Main Organic Crops in WA

• 2002 Cert. Trans.
• Tree Fruit 10773 2186
• Grapes 1410 298
• Berries 380 114
• Hay 4280 329
• Pasture 3043 81
• Grains 4110 70
• Fallow 2368 88
• Herbs 1982 5
• Vegetables 9335 43
• Total 39501 3381

4
The Organic Divide
WEST EAST Certified Acres 5656
(18) 25,312 (82) Transition Acres 80
(2) 3,904 (98) Growers 143 (34)
276 (66) Ave. Acres/Grower 39.5 91.7
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Washington Organic Tree Fruit Acreage by County
- 2001
certified transition
6
Estimated World Organic Apple and Pear Acreage -
2001
Certified Acres Apple Pear U.S.
17,572 2,798 Europe 8,675 3,665 New Zealand
2,873 163 South America 1,385
932 Canada 800 60 Total
31,005 7,618 China, Turkey ??

7
U.S. Organic Tree Fruit Acreage - 2001
Apple Pear Cherry All fruit WA
6540 1308 303 8436 CA 4529 842
179 8662 AZ 2800 -- 30
2830 CO 1535 100 133 1923 ID
503 -- -- 506 OR 350
500 25 1180 Others 1015 48
57 1198 Total US 17,272 2798
727 23,835
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Organic Tree Fruit Acreage in WA - 2002
Cert. Trans. Total Apples 8075
1786 9861 Pears 1771 192 1963 Cherries
501 184 685 Apricots 90 12
102 Peaches 195 4 199 Nectarines
78 3 81 Plums 46 3
49 Other 17 2 19 Total
10,773 2,186 12,959
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Organic Apple Acreage in Washington State
Pheromone MD
Alar
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Annual Changes in Organic Apple Acreage
Washington State
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Organic Orchard Acreage as a Percent of Total
Washington Orchards
Apple Pear 1996 0.68 1.49 1997 0.96
1.68 1998 1.05 1.84 1999 1.36 1.87 2000
2.48 2.54 2001 3.90 5.27 2002 4.81 7.14 200
2 (CT) 5.87 7.92 Based on 2001 USDA-National
Agricultural Statistics for bearing acreage
12
WA Organic Apple Acreage by Variety 2002
13
WA Organic Red Delicious Acreage
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WA Organic Apple Prices( per box FOB)
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WA Organic Apple Prices( per box FOB)
16
Recent Organic Apple Prices Washington(/box
FOB)
17
Price Trends
Org
Org
Org
Conv
Conv
Red Delicious
Conv
Golden Delicious
18
Price Trends
Org
Org
Conv
Conv
Granny Smith
Braeburn
19
Price Trends
Org
Fuji
Conv
Gala
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Organic Pear and Stone Fruit Acreagein
Washington State
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Organic Pear Acreage in Washington State
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WA Organic Pear Acreage by Variety 2002
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WA Organic Pear Prices (/box FOB)
24
Price Trends
Org
Conv
Bartlett
DAnjou
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Price Trends
Bosc
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Washington Organic Soft Fruit Acreage 2002
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WA Organic Cherry Acreage
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Challenges

• NOP implementation
• Lack of international harmonization export
  barriers
• Retail pricing U.S. vs. Switzerland

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Estimated Food Sector Share of the Apple Price
Grower Packer Trucker Retail profit
Organic Fuji
1.09
.45
.20
.15
.10
Broker
1.99/lb
Grower Packer Trucker Retail profit
Fuji
.225
.175
.11
.44
0.95/lb
Retail Markup Fuji 86 Org. Fuji 120
Farm Share of Retail Price Fuji
23 Org. Fuji 23
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Opportunities for Organic Tree Fruit

• Food quality differences taste, storability,
  nutrition, nutraceuticals
• Combine organic with other ecolabels
• US Farm Bill Conservation Security Program
  payments for stewardship