NWFCS: Slight Profits Expected In Both Cherry, Apple Industries

As we continue our look at Northwest Farm Credit Services quarterly commodity report, we turn our attention to tree fruit.  Karen Witt, Vice President at NWFCS said they expect cherry growers to enjoy slight profits this year.

“A light California crop and an extended Northwest harvest window will allow markets to successfully sell the crop at profitable margins. The biggest threat to the cherry market is tariffs levied by China, the Northwest’s biggest export market, accounting for 30% of exports.”

Witt said the tariffs China plans to implement against U.S. Ag products on July 6^th remain a large variable that will impact growers this year, and into the future.

As far as the apple industry.  Witt said slight profits may be typical in the apple industry.  She noted the 2017-18 crop year yielded an abundance of small fruit.

“Low-quality and small fruit is sent to processors; this reduces packs per bin and decreases growers’ returns. Growers expect next year’s crop to be smaller compared to this season, which could increase prices.”

However, Witt added, geopolitical tensions dampen this optimism.  Washington’s biggest export markets for apples are Mexico, India and Canada, all of which have announced tariffs on American agriculture products.

Join us Monday as we focus on hay and wheat.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com