Fruit Outlook

Northwest Farm Credit Services has released their quarterly outlook of northwest crops including tree fruit. According to their report the 2014-15 pear season should be profitable for most growers. Good early season shipments to the domestic and Canadian markets, coupled with strong prices bode well. However, the industry will be challenged to make up sales and sales opportunities lost as the result of the West Coast port slowdowns. When it comes to apples, Matthew Kloes, Farm Credits Knowledge Center Coordinator explains.

The Northwest is experiencing a downturn in apple markets. For 2014-15, the largest crop in the region's history is matched with large U.S. and global crops. Additionally, exports sales have been hampered by trade restrictions and slowdowns at U.S. West Coast ports. Lost sales opportunities won't be made up. These dynamics are pressuring prices for nearly every major apple variety lower. While Northwest apple growers will experience profit margin compression during the 2014-15 season, the industry is financially well positioned to work through this down market given a string of profitable crops.

As for cherries the outlook remains uncertain, but the Northwest faces some risk of overlap with California's cherry season, which has the potential to disrupt prices and sales momentum. A compressed harvest is also a possibility, which would further challenge growers' ability to source adequate labor and drive picking costs higher.

That's today's Fruit Grower Report. I'm Greg Martin on the Ag Information Network of the West.