High fuel prices may offer New York apples a competitive advantage

Two relatively new New York apple varieties saw another successful season. One of them, SnapDragon, is expected to sell out by the end of this month. “This variety will sell out ahead of last year due to more widespread distribution and season-long programs by almost all of our major retail partners,” says Jessica Wells, executive director, Crunch Time Apple Growers. Supplies of RubyFrost on the other hand are still strong and expected to stay that way until late June or early July and are available to ship now. “With all of our shipping partners offering a full slate of apple varieties, it’s convenient to put together a full truckload of apples to accompany RubyFrost on store shelves.

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Meanwhile, much of the new demand for both varieties has come from the Midwest. “We had a long-standing customer add several divisions in that part of the country, which allows a whole new group of customers to try both SnapDragon and RubyFrost,” says Wells. “In addition, both varieties continue to do extremely well in the Northeast, and retailers in the Southeast have experienced triple-digit growth year-over-year with SnapDragon.”

The power of premium apples

Wells adds that while general consumption of apples has remained fairly steady over the years, there are many new high-flavor, premium varieties on the market which means, there is the potential for consumption to increase. “This is simply because the available apples are better than ever and provide an excellent eating experience to consumers,” she says.

Also building into demand, Crunch Time recently launched a fundraising program which offers consumers access to SnapDragon apples who may not have seen the variety before. “We are not limiting the program to locations where there is a SnapDragon retailer. We offer 9 lb. boxes of SnapDragon to school groups, churches, sports teams and community organizations to sell within their communities,” says Wells. “The program is structured such that groups should make a great profit while offering a new and healthy alternative to other fundraisers.”

As for pricing, as with many commodities, FOB pricing on apples is up 20-30 percent over last season and up an additional two to five percent from the beginning of the season. “With the sell-out of SnapDragon on the horizon, we expect prices will stay steady there,” says Wells. “We do not anticipate a RubyFrost price increase, but the market will dictate that as we edge closer to the end of the season.”

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Rising fuel costs

Also factoring into the picture are the increased costs growers and shippers across the country are seeing. “With fuel prices as high as they are, I expect it will continue to be a factor for some time to come and certainly for the rest of our sales season,” says Wells.

In fact, those high fuel prices may help give New York apples a competitive edge. “All of our apples are grown in New York which provides an advantage over West Coast premium varieties since many of our retail partners are also located on the East Coast,” says Wells. “Not only does this lead to greater freshness and quality due to shorter ship times, but we are also able to efficiently transport apples to major population centers east of the Mississippi. Our shipping costs are between $7.50 and $12 per bushel ($.19 and $.30 per pound) lower than fruit shipped from the West, which means lower costs from the orchard to the store, fresher products, and hopefully happier consumers.”

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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