Organic apples in strong demand heading into new year

(USDA)

Organic apple supplies are tight and getting tighter in the 2021-22 marketing season.

The Dec. 25 average organic apple price was $56.26 per carton at U.S. wholesale markets tracked by the USDA, 41% higher than the $39.83 per carton average for conventional apples the same day.
The USDA reported size 72 Washington organic gala apples were trading at $34 to $36 per carton on Dec. 29, up slightly from a year ago.

The USDA reported the national average shipping point price for organic apples on Dec. 25 was $29.65 per carton, just 3% higher than the average shipping point price for conventional apples at $28.96 per carton.

The U.S. average retail promoted price for organic apples was $1.81 per pound in early December, up from $1.61 per pound in early December 2020. 

“Like conventional apples, the organic apple crop is also down on volume,” said Chuck Sinks, president of sales and marketing for Yakima, Wash.-based Sage Fruit Co. “That being said, the pricing has been strong across all varieties. We currently sell about 15% of our total crop in organics, but that number is growing yearly.”
As time goes by and organic apple inventories dwindle, Sinks said the prices for domestic organic apples could be headed higher in the months ahead.

In November, industry leaders pegged the Washington organic apple crop to top 15 million cartons, while the Washington state overall crop was projected at 118 million cartons.

Through Dec. 25, season-to-date domestic truck volume of Washington organic apples totaled about 5.5 million cartons, almost exactly the same volume as the same time a year ago.

Domestic truck shipments of Washington conventional apples through Dec. 25 equaled 24.4 million cartons, compared with 25 million cartons the same time a year ago, the USDA reported.
Organics account for about 30% of Stemilt Growers’ overall apple volume, said Brianna Shales, marketing director for the Wenatchee, Wash.-based company.

“We've focused on growing the varieties and flavors that consumers are seeking, and so the varietal mix helps drive organic sales,” Shales said. “Organics are growing rapidly in produce and across the supermarket, and apples are one of the unique products that have year-round supply. It's been a steady season for organic apples so far, with lots of momentum going into the late winter and spring months. Organic Honeycrisp continues to lead the category and has room for promotion in the New Year.”

For Honeybear Marketing, organic apples account for about 12% of the company’s sales mix, said Don Roper, vice president for Honeybear Marketing, Brewster, Wash.

“As organic demand on all varieties continues to grow, we are positioned in our orchards to grow in step with this demand,” Roper said. “Like our conventional mix, we tend to be overindexed with organic Honeycrisp, galas and fujis. It’s important to have the right mix on shelf and we pride ourselves on the ability to meet a variety of customer needs in organic. From bulk to different pack styles and sizes, we can build out a full suite of organic offerings on shelf.”
Honeybear Marketing has more domestic organic trees coming into production in the 2021 season, boosting this year’s volume of organic apples. The company has supplies of organic galas, Honeycrisp, granny smith, fujis, Pink Lady and Cosmic Crisp, Roper said.

“But there is a demand for organic apples year-round, so we provide a solution to provide apples and pears all year through our dual hemisphere program,” Roper said. “In the winter and spring, we offer a robust domestic supply, but in late summer, we meet demand with our Southern Hemisphere organic program.”

Organics account for about 15% to 20% of apple volume from CMI Orchards, said Rochelle Bohm, brand manager for the Wenatchee, Wash.-based company.

“Organics continue to climb in demand, and CMI is lucky that our growers and ownership group predicted a climbing trend towards demand for organics a long time ago,” Bohm said. “ This enabled CMI to be well positioned to cover consumer demand for organics. Pandemic buying habits accelerated organic purchasing and shoppers are hungry for organic options, including high-flavor, specialty organic products.”

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