Eastern apple shippers benefit from strategic location

When it comes to inflation, hey, at least Eastern apples have the benefit of proximity.

“With fuel costs being what they are, not only is buying closer to the orchard a sustainable measure, but it is a cost-savings one, as well,” said Cynthia Haskins, president and CEO of New York Apple Association.  

The state’s 600 growers are located close to the packinghouses, which are typically located closer to several major U.S. population centers, automatically reducing fuel costs and emissions.

With shorter trips for distribution, New York apple shippers drive sustainable progress — literally, Haskins said.

“Cost of goods have increased for everyone, all the way from cost of boxes to retail display shippers and signage. The industry is all in the same boat,” she said. “The good news is that we can secure supplies, whereas earlier in the year, we were having to place orders for supplies months ahead of time.”

That energy market volatility makes Ryan Hess, vice president of grower services at Hess Bros., Lancaster, Pa., grateful also for the geographic advantage of having most of his company’s apples end up along the Atlantic corridor.

“While we expect [across-the-board cost increases] to continue to be a challenge, we are grateful that our retail partners recognize this challenge and are working with us to return the most money to the grower — without destroying product movement at the retail level,” Hess said.

Freight rates seemed artificially low by the first week of August, said Brett Baker, president of United Apple Sales and H.H. Dobbins, but he expects higher rates once harvest gets going.

He’s concerned with how inflation will affect consumer apple shopping.

“As a shopper, it always seems cheaper to eat unhealthy options instead of healthy,” Baker said. “As apple pricing continues to rise, will the consumer grab a candy bar instead of our apples for a snack?”

It’s been tough for farmers.

Inflation has been a “huge factor” this past season, with operational costs increasing dramatically, said Marcus Albinder, operations manager and marketing lead for Hudson River Fruit Distributors, based in Milton.

“All growers in the produce industry are feeling the pain of increased fertilizer, fuel and labor costs, along with packaging and trucking increases,” he said.

With higher production costs, prices or efficiencies must be gained in other ways in order to ensure growers remain viable, Wells said.

And it’s tough on shoppers’ wallets.

Brenda Briggs of Gardners, Pa.-based Rice Fruit Co. said her company is trying to walk the line to meet the needs of both ends of the supply chain.

“Our stance has been to make sure costs are covered for our growers and us, but not push pricing beyond what is fair,” she said. “We still want consumers to be able to afford and enjoy our premium Eastern apples.”