Market Watch


CHC working group gathers here to focus on the present and future of the Canadian industry.


T


o help celebrate the 125th anniversary of the B.C. Fruit Growers Association, the apple working group of the Canadian Horticulture Council met in the Okanagan this summer, where members got an update from each province and discussed a national apple association.


Reporting on the Canadian apple industry’s current situation was Farid Makki, fruit sector specialist for Agriculture and Agri-food Canada, who told growers that apples are still the top pick for consumers across Canada, despite stiff competition from the berry sector, exotic fruits and processed snacks.


He noted that a blip in 2011 saw blueberries tops in farmgate value over apples, but in 2013, apples were back in top spot, with a crop value of $191 million, compared to $188 million for blueberries.


Consumption of fresh cranberries went up by 240 per cent in 2013 over 2004, from .49 kg per person to 1.18 kg; while consumption of fresh cherries in that period went up 61 per cent, from .31kg to .5 kg; and fresh apple consumption went from 6.48 kg per person in 2004 to 7.6 kg per person in 2013.


Despite the variety of exotic fruit now available, consumers are steadfast in their loyalty to apples, and they’re still tops in terms of total fruit consumption across the nation.


Apples are the largest tree fruit crop in the country by both value and volume, with Ontario producing the lion’s share, at 40 per cent, or 151,215 tonnes, followed by Quebec with 28 per cent, or 108,026 tonnes and B.C. third with 20 per cent, or 80,950 tonnes. The 10-year sales trend has been stagnant at 400,000 tonnes, but Makki noted that prices are currently at an all-time high.


Canada’s production of apples is insignificant on the world stage, at .4 per cent of total world production,


By Judie Steeves Apples: A national perspective


which in 2012 (the latest year for which global apple production figures are available) was 76.4 million tonnes. Canada’s export of apples is dropping, with a 50 per cent decline in the past 10 years, likely due to a number of factors, he said, including rising input costs such as land, labour, transportation and chemicals and more challenges with access to resources such as labour and land.


There’s also increased concentration along the supply chain and more stringent market requirements such as quality, food safety, traceability and sustainability, he said. As well, there is static demand for fresh apples. Canada, he added, lags in production efficiency compared to other countries in areas such as yield per acre and planting density per acre.


He warned that in the near term the industry faces such challenges as a world oversupply of apples, retailer consolidation, production costs and the rising value of Canadian currency.


On the other side of the coin, though, he noted there are


opportunities for industry to adapt and meet the challenges by increasing orchard productivity and yields; improving consistency of quality in packed-out product; altering the product mix with introduction of appropriate varieties and strengthening consumer appeal of apples.


As well, the industry should capitalize on the ‘buy-local’ trend and build brands or trademarks, while building stronger relationships with retailers sourcing Canadian-branded apples and building alliances with


packers/marketers to help meet retailer and consumer needs.


New direct sales opportunities for apples could also be explored, along with new export market opportunities, he said.


There was a discussion of the failure of a vote in B.C. to form an Apple Research and Promotion Agency, which would be similar to what Ontario growers have had for the past decade. Group chairman Brian Gilroy of Ontario offered assistance from growers in that province to get such a program started in B.C. because he said, “Together we will be stronger.” If B.C. growers approve a levy


British Columbia FRUIT GROWER • Fall 2014 5


towards research and promotion, it would be possible for a national agency to be formed, and for the levy to be applied against imported apples as well, gaining considerable additional funds toward research and promotion for the Canadian apple industry.


BCFGA manager Glen Lucas told the group they are looking at an industry strategy and re-consideration could be part of that.


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