Input Costs Expected To Put Pressure On NW Tree Fruit Growers Says NWFCS

In our second installment of our Northwest Farm Credit Services quarterly commodity snapshot series, tree fruit takes center stage.  Bill Perry, Vice President at NWFCS said their 12-month outlook calls for slight profits for pear growers across the Pacific Northwest.

“The 2021-22 crop continues to see strong demand and good overall quality. Preliminary assessments of the 2022-23 crop are favorable, but prolonged cool, wet weather creates the risk of a smaller than average crop. Rising consumer inflation may lead to demand loss. In addition, rising input and transportation costs will continue to pressure margins and reduce competitiveness in East Coast markets.”

When it comes to the local apple industry, Perry says the 12-month outlook expects breakeven conditions.

“Supply of the 2021-22 crop is dwindling. Cool and wet weather will likely result in another small crop for the 2022-23 season. While growers and packers with normal to strong volumes should be profitable, many may face insufficient yields and throughput to cover operating and fixed costs. In addition, rising input and transportation costs will continue to pressure margins and reduce competitiveness of West Coast products in East Coast markets.”

Join us Thursday as our NWFCS quarterly commodity snapshot series turns to dairy and beef.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com