How USApple Made A Push For USDA Bonus Buy
June 24, 2015 
Mark Seetin, Director of Regulatory & Industry Affairs, USApple
In response to a request from USApple, (USDA announced what is expected to be the largest single purchase of apples and apple products in history. In late April, the agency announced an estimated $18.3 million purchase of 34.9 million pounds of fresh apples and 16.1 million pounds of processed apple products.
The bonus buy purchase program is part of a USDA-administered surplus removal program begun in the 1930s. The agency is allowed to purchase foods in order to help stabilize prices in agricultural commodity markets by balancing supply and demand, while providing healthy food to low-income households. The apples and apple products will be used to supplement USDA’s supply for nutrition programs, including the school lunch program.
USApple had been monitoring the apple market situation since January. When USApple’s Feb. 1 Market News monthly storage report showed fresh and processing apple inventories at roughly 25% above the previous record for that month, USApple sent a letter to USDA’s Agricultural Marketing Service (AMS) requesting the action, also citing:
- Continuing labor strife at West Coast ports that was crippling efforts to export fresh apples to the global marketplace, and
- The imminent harvest of the 2015 Southern Hemisphere apple crop, estimated to be 5% above last year’s crop and which would soon be available to the U.S. market.
Following receipt of the USApple request, USDA officials analyzed the initial data, sought additional data and asked questions of USApple in the process of deciding upon a course of action. Following the USDA Agricultural Marketing Service (AMS) analysis, the request was approved by Secretary Vilsack and announced by AMS administrator Anne Alonzo.
The work surrounding the documentation of the need and the successful request to the USDA for this record purchase is central to the mission of USApple to support the economic health of our nation’s apple industry. Without the historical and current database provided by the Market News storage reports, the request would not have been possible.
“Coming on the heels of what was likely the largest apple crop in U.S. history, this USDA purchase is welcome news and we thank the department for it,” USApple president and CEO Jim Bair said. “Adding this action to USDA’s recent success in opening the China market for U.S. apples, it is an understatement to say we are grateful.”
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