Apple growers eyeing big returns

YAKIMA, Wash. -- Record shipments of fresh Washington apples this season are raising hopes for better returns for growers over the next year in the face of a slow economy and competition.

The industry had shipped 17.6 million boxes of apples from the 2009 crop through Nov. 1, according to industry organizations that track those figures.

Shipments are ahead of last year's 15 million boxes and the three-year average of 15.3 million boxes.

The industry got some good news Wednesday when the U.S. Department of Agriculture announced the government will spend $18.6 million buying apples and apple products for a variety of federal programs such as school breakfast and lunch programs.

Industry sources suggest the purchase could result in up to 3 million boxes of apples.

"That is a positive for the apple industry," said Keith Mathews, chief executive officer of FirstFruits Marketing of Washington and former executive director of the Yakima Valley Growers-Shippers Association.

The early shipment momentum should help market a smaller 2009 apple crop. The industry estimates this year's fresh crop at 102.4 million 40-pound boxes, a 5 percent decline from last year's record 108 million-box crop.

The industry saw lower prices in moving the larger 2008 crop during the economic slowdown. Some of that has carried over into marketing the 2009 crop.

But this year's smaller crop, good quality and strong movement to date bodes well for prices later in the year. Season-average prices for all varieties are about $20 per box, about $2 below last year at this time.

"We are definitely looking to see some improved returns throughout this year," said Loren Queen, marketing and communications manager for Domex Superfresh Growers of Yakima. "As we get further in the season, we should start to see some pricing start to climb. That always signals a better return."