The state’s cranberry production is expected to hit 5.6 million barrels this fall, making up a significant majority of the country’s production of the tart fruit.
But an issue is facing producers all over the country, as these numbers contribute to an already-existing surplus. With that in mind, the Wisconsin State Cranberry Growers Association and others are taking steps to control inventory levels and increase demand.
“The Wisconsin cranberry industry is a major economic driver that supplies thousands of jobs and brings in a total value of nearly $1 billion each year,” said Tom Lochner, executive director of the WSCGA. “At the same time, the oversupply is a challenge for our growers. With the commodity price for cranberries well below the cost of production, many growers in Wisconsin and across the country are experiencing low returns and financial difficulties.”
The USDA’s National Agricultural Statistics Service also projected that the country will produce about 9 million barrels overall for this year’s harvest. The other top cranberry producing states are expected to be: Massachusetts, with about 2.2 million barrels; New Jersey, with 590,000 barrels; Oregon, with 480,000 barrels; and Washington, with 180,000 barrels.
Some factors playing a role in the surplus include good conditions for growing, advances in farming technology, low demand for cranberry juice and others.
At the U.S. Cranberry Marketing Committee’s recent annual meeting, a motion passed to regulate crop volumes for this year and the next. It goes next to the U.S. Department of Agriculture for approval.
“This motion is intended to help stabilize marketing conditions and improve grower returns,” Lochner said. “This short-term solution will help slow the excess supply being built while the industry continues to focus its efforts on the long-term solution of increasing demand both domestically and in international markets.”
Alongside the U.S. Cranberry Marketing Committee, Wisconsin producers will be hosting a Reverse Trade Mission this fall with representatives of India and China in an effort to increase demand in yet-untapped markets.
Lochner said doing so is “a big opportunity” for state cranberry producers, but added that most of the country’s cranberries are consumed by the Americans.
The largest foreign consumer of U.S.-produced cranberries, Lochner said, is the United Kingdom, with a lot of fruit being shipped to European Union countries and some former Soviet republics. Mexico is also a growing market for cranberries, he added.
But most of the ongoing efforts are aimed at stimulating demand in Asian markets, he said.
“Everyone is looking at China, Taiwan, South Korea… Fairly strong markets, they’re growing,” Lochner said.
Only about 5 percent of the state’s harvest will be consumed as fresh fruit; the rest will be frozen, packaged or incorporated into other products.
The state’s entire harvest comes from 21,000 acres across 20 counties, mostly located in central and northern Wisconsin, according to a map from WSCGA.
The harvest will start in late September, and will go throughout most of October as well, WSCGA says. NASS’ predictions are based off grower surveys, and could change if major hail storms or abrupt temperature shifts occur.
“If we have seasonal temps from now until harvest, we should be OK,” Lochner said. “But if we get an extended cold snap, it may slow down the growth, sizing of fruit.”
–By Alex Moe
WisBusiness.com
