Early Summer Fruit, Nut Prices Are Up
August 2, 2011 This past week, the USDA’s Economic Research Service released a report detailing recent fruit and tree nut prices. Here is the introduction of the Fruit and Tree Nuts Outlook, “Crop Delays Boosts Early Summer Fruit Prices.”
The index of prices received by fruit and tree nut growers in June, at 157 (1990-92=100), rose 9% from the May index and increased 18% above the June 2010 index. Year-to-year price increases in June for process grapefruit and fresh-market apples, grapes, peaches, pears, and strawberries drove the index up over the previous year, offsetting price declines for fresh-market lemons and oranges.
On July 12, USDA’s National Agricultural Statistics Service (NASS) released its first complete forecast for U.S. peach production in 2011, pegged at 2.25 billion pounds, 2% below a year ago. This year’s production in California is anticipated to reach 1.63 billion pounds, fractionally below a year ago. The state’s clingstone crop is forecast down less than 1%, but the freestone crop is unchanged from a year ago. Despite California’s dominance in the country’s peach production, total domestic freestone production in 2011 is forecast down 3% and is attributed to forecast reduced production in 11 other states. The decline in the freestone crop will likely put upward pressure on fresh-market peach prices this summer.
On June 23, NASS released its first forecast for the 2011 U.S. sweet cherry crop, set at 649.7 million pounds, 4% larger than in 2010. Production in the Northwest is expected to increase due to forecast larger crops in Washington state and Idaho. Production is also forecast higher in Michigan. These increases will more than compensate for the smaller crops in California, Utah, Oregon, and New York. Because California sweet cherries are the first to come in season from the domestic crop, delays in crop maturity and reduced production in the State bolstered early 2011-season sweet cherry prices.
Based on the NASS forecast released on July 12, grape production in California will reach 6.7 million tons in 2011, down less than 1% from 2010. While California’s 2011 wine grape crop was forecast 6% smaller than in 2010, this reduction will be almost offset by increases in the table grape and raisin grape crop. Because California dominates in U.S. grape production, the bigger table grape crop suggests domestic fresh-market grape supplies will be ample in the 2011/12 marketing season. A cold, wet spring prolonged crop growth, pushing harvest about 2 weeks behind normal. This season’s shipments through mid-July fell below the same period last season, resulting in higher grape prices thus far.
A copy of the Fruit and Tree Nuts Outlook, “Crop Delays Boosts Early Summer Fruit Prices,” can be found here.
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