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Recent Trends in Organic Tree Fruit Production: 2002 Organic pears near Chelan, WA David Granatstein Center for Sustaining Agriculture and Natural Resources, Wenatchee, WA 10 9 8 7 6 5 4 3 2 1 0 19 80 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 US Orgnaic Food Sales (billion $) Growth of Organic Food Sales Projected $20 billion in sales by 2005 Source: Organic Trade Association Acreages of Main Organic Crops in WA 2002 • Tree Fruit • Grapes • Berries • Hay • Pasture • Grains • Fallow • Herbs • Vegetables Total Cert. 10773 1410 380 4280 3043 4110 2368 1982 9335 39501 Trans. 2186 298 114 329 81 70 88 5 43 3381 The “Organic Divide” Certified Acres Transition Acres # Growers Ave. Acres/Grower WEST EAST 5656 (18%) 25,312 (82%) 80 (2%) 3,904 (98%) 143 (34%) 276 (66%) 39.5 91.7 Washington Organic Tree Fruit Acreage* by County - 2001 3000 2500 * certified + transition 2000 1500 1000 Apple Pear la n la W al to Cherry W al B en an Fr D ou gl kl in as n la C he O ka no ga n im a ak Y ra nt 500 0 G Acres 4000 3500 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 ?? U.S. Organic Tree Fruit Acreage - 2001 WA CA AZ CO ID OR Others Apple 6540 4529 2800 1535 503 350 1015 Pear 1308 842 -100 -500 48 Cherry 303 179 30 133 -25 57 All fruit 8436 8662 2830 1923 506 1180 1198 Total US 17,272 2798 727 23,835 Organic Tree Fruit Acreage in WA - 2002 Apples Pears Cherries Cert. 8075 1771 501 Apricots 90 Peaches 195 Nectarines 78 Plums 46 Other 17 Total 10,773 Trans. 1786 192 184 12 4 3 3 2 2,186 Total 9861 1963 685 102 199 81 49 19 12,959 Certified Transition 20 20 20 19 19 19 02 01 00 99 98 97 96 6000 Pheromone MD 8000 95 94 93 92 91 Alar 10000 19 19 19 19 19 19 90 89 88 4000 19 19 19 Area (ac) Organic Apple Acreage in Washington State 2000 0 Annual Changes in Organic Apple Acreage – Washington State 2500 2000 Acres 1500 1000 500 0 -500 1988 1990 1992 1994 1996 1998 2000 2002 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 2002 (C+T) 5.87 7.92 Based on 2001 USDA-National Agricultural Statistics for bearing acreage WA Organic Apple Acreage by Variety 2002 Red Delicious Granny Smith Gala Golden Delicious Fuji Other Braeburn Cameo Pink Lady Golden Types 0 500 1000 1500 2000 Acres Certified Transitional 2500 3000 WA Organic Red Delicious Acreage 3000 2500 2000 1500 1000 500 0 1998 1999 Certified 2000 2001 Transitional 2002 WA Organic Apple Prices ($ per box FOB) $/box FOB $40 $30 $20 $10 $0 Red Delicious 1995 Golden Delicious 1996 1997 Granny Smith 1998 Fuji 1999 2000 Gala 2001 WA Organic Apple Prices ($ per box FOB) $50 $/box FOB $40 $30 $20 $10 $0 Braeburn Jonagold 1995 1996 Red Rome 1997 1998 Cameo 1999 2000 Pink Lady 2001 Recent Organic Apple Prices – Washington ($/box FOB) $30 $/box FOB $25 $20 $15 $10 $5 $0 Red Delicious '01-'02 Golden Delicious Granny Smith to Nov15,'01 Fuji to Nov15,'02 Gala Nov 1-15, '02 Red Delicious $/box FOB Price Trends Org $30 Org Org $20 Conv $10 $0 Conv Con 1995 1996 1997 1998 1999 2000 2001 2002 v organic conventional Golden Delicious $/box FOB $40 $30 $20 $10 $0 1995 1996 1997 1998 1999 2000 2001 2002 organic conventional $40 $/box FOB $30 $30 $20 $20 $10 $10 $0$0 Org $35.00 Org $30.00 Price $/box FOB Granny Smith $40 $/box FOB Price Trends $25.00 Conv $20.00 $15.00 Conv $10.00 $5.00 $0.00 1995 1996 1997 1998 1999 2000 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 20002000 20012001 2002 organic organic conventional conventional $30 $50 $40 $20 $30 $10 $20 $10 $0 $0 $45.00 $40.00 $35.00 Price $/box FOB $/box FOB Braeburn $/box FOB $40 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 1995 1996 1997 1998 1999 2000 1995 1996 1997 1998 1999 2000 2001 2002 1995 1996 1997 1998 1999 2000 2001 organicconventional conventional organic $40 $30 $/box FOB Fuji $/box FOB $40 $20 $10 Org $30 $20 $10 Conv $0 $0 1995 1996 1997 1998 1999 2000 2001 organic1999 conventional 1995 1996 1997 1998 2000 2001 2002 Price Trends organic conventional $30 $20 $10 $0 $40 $/box FOB Gala $/box FOB $40 $30 $20 $10 $0 1995 1996 1997 1998 1999 2000 2001 1995 1996 1997 organic 1998 1999 2000 2001 2002 conventional organic conventional Organic Pear and Stone Fruit Acreage in Washington State 2000 Acres 1500 1000 500 0 1988 1990 1992 1994 Pear 1996 Stonefruit 1998 2000 2002 Organic Pear Acreage in Washington State 2000 Acres 1500 1000 500 0 1998 1999 2000 Certified Transitional 2001 2002 WA Organic Pear Acreage by Variety 2002 Anjou Bosc Bartlett Asian Red Anjou Red Bartlett Concord Other 0 200 400 600 Acres Certified Transitional 800 1000 $/box FOB WA Organic Pear Prices ($/box FOB) $60 $40 $20 $0 Bartlett 1996 Red Bartlett 1997 1998 D'Anjou 1999 2000 Bosc 2001 $/box FOB $/box FOB Price Trends $50 $40 $30 $20 $10 $0 Org $50 $40 $30 $20 $10 $0 1996 1997 1998 organic 1999 2001 Conv conventional 1996 1997 1998 1999 2000 2001 2002 Bartlett $50 $40 $30 $20 $10 $0 $/box FOB $/box FOB organic D’Anjou 2000 conventional $50 $40 $30 $20 $10 $0 1996 1997 1998 organic 1999 2000 2001 conventional 1996 1997 1998 1999 2000 2001 2002 organic conventional $50 $40 $30 $20 $10 $0 $/box FOB Bosc $/box FOB Price Trends $50 $40 $30 $20 $10 $0 1996 1997 1998 organic 1996 1997 1999 2000 2001 conventional 1998 1999 2000 organic 2001 2002 conventional Washington Organic Soft Fruit Acreage 2002 Pluot Cherry Peach Nectarines Plums Apricot 0 200 400 Acres Certified Transitional 600 800 WA Organic Cherry Acreage 600 Acres 500 400 300 200 100 0 1998 1999 2000 Certified 2001 Transitional 2002 Challenges • NOP implementation • Lack of international harmonization – export barriers • Retail pricing – U.S. vs. Switzerland Estimated Food Sector Share of the Apple Price Grower Organic Fuji .45 Packer Trucker .20 .15 .10 Retail profit 1.09 Broker Grower Packer Trucker Retail profit Fuji .225 0 .175 .11 .44 0.5 $1.99/lb $0.95/lb 1 1.5 Dollars Retail Markup Fuji 86% Org. Fuji 120% Farm Share of Retail Price Fuji 23% Org. Fuji 23% 2 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