Home Archives August 2009 Bumper crops don't yield higher profits

Bumper crops don't yield higher profits

| Print |  Email
Thursday, July 23, 2009
ATS_berries

Berry and cherry crops have benefited from this summer’s perfect weather, but those lovely temperatures also created shorter picking seasons. As farmers scramble to pick, process and sell their fruit, many of them aren’t seeing higher profits.

Cherry production is expected to reach 60,000 tons, says Dana Branson, administrator of the Oregon Sweet Cherry Commission. B.J. Thurlby, president of Washington-based Northwest Cherry Growers, expects the value of production to be at an all-time high, but some growers have locked into higher prices while others have lost out.

“Every year in the cherry business there are winners and losers,” says Thurlby. “This is definitely a gambler’s proposition.”

He’s heard of packing companies turning growers away because they’re already processing at capacity. Some growers have told Branson they’ve stopped picking because large corporations are offering prices so low, growers will not make a profit.

“It’s heartbreaking,” says Branson. “Everybody started out this season with such optimism.”

Blackberries, strawberries and raspberries also experienced shorter picking seasons this year and normal yields that are still better than those of last year when cold weather damaged some of the crops.

Stocks of frozen blackberries are low and demand is up, a situation that has the potential to benefit farmers. But according to Dave Dunn of Salem-based Willamette Valley Fruit Company, “With the condensed crop, the opportunity to negotiate for better prices might not materialize.”

He thinks the future of blackberries could become more marketable. “Black is not a very attractive color in a drink but there’s an attitude that blacks are going to be the next trend. It’s a little early to tell.”

Blueberry growers have certainly benefited from health-food trends. For the last five years, the industry has grown steadily in both demand and production. But this year marks a plateau in the industry as supply exceeds demand for the first time. Growers are seeing lower prices across the board. Doug Krahmer of St. Paul-based Berries Northwest has seen fresh blueberry prices drop 25% this year and was losing money in July.

Bryan Ostlund, administrator of the Oregon Blueberry Commission, hopes companies will start creating more blueberry-based products with the assurance of a steady supply of fruit. “We’re always feeling like we’re in uncharted waters recently,” he says.
Growers might feel uncertain about the future or frustrated with the unexpected downside of a bumper crop, but this summer someone is definitely benefiting: the consumer.

JENNY FURNISS
 

More Articles

Closing the gap: Community colleges and workforce training

News
Thursday, March 27, 2014
03.27.14 thumb collegeBY MARY SPILDE | OP-ED CONTRIBUTOR

Community college career, technical and workforce programs present an opportunity to bring business and education together as never before.


Read more...

Speeding up science

News
Tuesday, February 25, 2014
02.25.14 Thumbnail MedwasteBY JOE ROJAS-BURKE | OB BLOGGER

The medical research enterprise wastes tens of billions of dollars a year on irrelevant studies. It’s time to fix it.


Read more...

Eking out a living

News
Tuesday, April 08, 2014
04.08.14 thumb ourtable-coopfarmsBY HANNAH WALLACE | OB BLOGGER

It may be obvious, but most farmers don’t make a lot of money. According to preliminary data from the 2012 Agriculture Census, 52% of America’s 2.1 million principal farm-operators don’t call farming their primary occupation. Farm cooperatives may offer a solution.


Read more...

Small business sales go big

March 2014
Tuesday, February 25, 2014

BY BRANDON SAWYER

Sales of small businesses surged in 2013 according to the biggest Internet marketplace of such transactions, BizBuySell, increasing to 7,056 reported sales, a 24% increase over 2012, when they dropped 7%. Portland Metro sales tracked by the site grew 9% to 73, capping three years of solid growth. On top of that, Portland’s median sale price jumped 67% to $250K, versus just 13% to $180K nationally. Portland was one of just six metros tracked where the median sale price matched the median asking price, with sellers getting, on average, 92% of what they asked.

BTNMarch14 tableBTNMarch14 line


BTNMarch14 piePDXBTNMarch14 pieUSA


Read more...

The 2014 List: The Top 33 Small Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...

Green your workplace

News
Thursday, April 03, 2014
100Green14logo200oxBY OB STAFF

Learn how to green your workplace and lower your environmental footprint at the office. Oregon Business presents a two-hour "Greening Your Workplace" seminar on May 28th, 2014 at the Nines Hotel in Portland.


Read more...

Why I became an educator

News
Tuesday, March 04, 2014
03.04.14 thumbnail teachBY DEBRA RINGOLD | GUEST CONTRIBUTOR

How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS