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New York Looks to Form Apple Co-op
Steering committee meets to form APCO
By Karen Gentry Associate Editor
New York apple producers are considering developing an Apple Cooperative (APCO) to combat industry struggles and open up communications among all facets of New York’s apple industry. An Apple Industry Forum took place Jan. 30-31 in New York and was deemed “the most informative and progressive meetings in recent memory,” according to Caleb Torrice, Cornell University Extension educator for Central New York. Grower, packers, shippers, Extension agents, ag government officials and labor representatives gathered in Syracuse for the summit. The group gave their approval to investigate the formation of the co-op. The New York Strategic Apple Marketing Committee Task Force, made up of a cross-section of apple representatives began meeting last April to come up with solutions to problems in New York’s beleaguered apple industry. The task force made 29 recommendations to four action organizations, according to George Lamont, chair of the task force and executive director of the New York State Horticultural Society. Besides APCO, the other three organizations charged with assignments include the New York Apple Association (NYAA), New York State Horticultural Society and Cornell University. Lamont said a steering committee for the formation of APCO held its first meeting on March 27 in Little Falls, N.Y. The purpose of APCO will be to: • Facilitate marketing communications and coordination. • Collect and disseminate marketing information. • Improve the quality of apples by working with Cornell University to develop a Total Quality Improvement Program for New York apples. • Enhance grower returns. • Assist the industry with food, safety and environmental regulations. • Establish and enforce quality standards including proper labeling. “It’s exciting but nerve wracking,” said Torrice about the co-op. He said growers are typically independent people but know they have to work together for the industry’s survival. “Our number-one problem is the global marketplace,” said Torrice. He said areas with the lowest cost production can compete globally whereas New York doesn’t have ideal weather and has high labor costs. “Other parts of the country and the world can produce product for much cheaper,” Torrice said. New York needs 65% or more of the 600 plus apple producers and packers to belong to the co-op to make it work, according to Torrice. The main purpose of a co-op is so that all sales can go through one desk, according to Torrice. Chain stores are currently in control of the apple market. Torrice said growers know something has to be done and were questioning whether enough damage has been done to make a co-op necessary. Torrice expressed concern about who would pay for the cost of a co-op, including expenses related to inspecting the quality of apples. “I think it makes good sense,” said Joe Nicholson, from Red Jacket Orchard in Geneva, N.Y. Nicholson, a grower, packer and direct marketer, worked on the group that looked at the demand side for the task force. “It’s (co-op) the type of thing you have to walk before you run,” Nicholson said. The first task of any co-op is to develop trust and more communication before moving forward to develop minimum pricing and quality control, according to Nicholson. “It could be common billing where every thing is billed out of one office for the state,” said Nicholson. He said growers/packers are often their own worst enemy and buyers use that. Nicholson estimates 10% of growers in New York will go out of business this year and another 10% the following year. “There’s a lot of tough situations at the grower level. There are tough decisions to be made whether to stay in business or leave and maybe leave with something. It’s very somber and not a good situation,” Nicholson said. Nicholson is optimistic about the future and believes the industry will change in two years with improved supply. He believes MCP, which blocks the formation of ethylene, a natural ripening agent, could help improve the quality of apples to consumers. The product by Rohm and Haas is not yet registered for apples. “Consumers are largely faced with very unreliable product on the shelf. One time the product is firm, the next time soft. Some times the product has very little flavor and the next time it has tremendous flavor and firmness,” Nicholson said. Eric Behling, a grower in Mexico, N.Y. also agrees the co-op is a step in the right direction. “Packers and growers are competing against other packers and growers,” said Behling, who grows 165 acres of apples north of Syracuse. Behling said growers are concerned that packers would not be willing to share information on pricing is one of the issues that has to be addressed. He hopes the co-op will deal with the quality issues. Growers are also concerned about overlapping of duties with NYAA and APCO, according to Behling. Behling said the mood of the growers improved slightly compared to when they came in to the meeting. “It’s such a poor market. The mood is not one of great optimism,” he said. Growers and marketers on the steering committee for the formation of APCO include: Roderick Dressel, Tre’ Green, Dave Kast, Helene Kodra, Dan Sievert, John Teeple, Dan Albinder, Jim Kankoski, Lee Peters, Bob Rigdon, John Russell and Kaari Stannard. NYAA was charged with implementing a training program for apple handling in supermarkets, making sure only high quality apples are served in New York schools, increasing the amount of New York apples in state institutions and promoting health benefits and new and promising apple products, among other things. It was recommended that Cornell University work with APCO to develop a Total Quality Improvement Program for New York apples and develop a program for proper timing of harvests for all regions. It was also recommended that Cornell develop programs for proper cooler protocols, MCP implementation, food safety, yields, ICM and labor management.