Show ft ftP P i 4 T W A J p S Sour Cherry Story The Davis County Extension Office received a very informative informative informative inform inform- bulletin from Morris H. H Taylor Marketing Specialist Utah State University at Logan It should be particularly in interesting interesting interesting in- in to the sour cherry growers o of Utah as it not only covers the problems of the sour cherry market herein herein here herein in Utah but covers the market market market mar mar- ket over the entire nation Mr Taylor has this to say in his bulletin on the sour cherry market dated July Jilly 23 1969 with headlines Lets Look Ahead TO INDICATE that the sour cherry market is very slow to take shape this year is a gross understatement This slowness slowness slowness slow slow- ness can be contributed both to crop uncertainties and an unsettled market USDA's July 1 crop estimate estimate estimate esti esti- mate indicated an expected production of tons This compared with tons for 1968 This represents an 18 percent increase in crop output over last year Coupling Coupling Coupling Coup Coup- ling this with the over carry-over the whole industry has become become be be- come worried about selling this years year's crop THIS IS true despite some very intensive studies conducted conducted conducted con con- ducted by firms within the industry grower organizations organizations in the lake states and experiment stations' stations staffs in inthe inthe inthe the respective lake states The work particularly of the experiment stations of Michigan Michigan Michigan Michi Michi- gan State University indicates that a crop of this size could be marketed to the advantage of both growers and processors Nevertheless the whole market market market mar mar- ket psychology this year has been one of wait and see Few firms have been willing to show their hand because of laCK or-laCK ai of f confidence in what the final production figures might be and what the ultimate ultimate ultimate ulti ulti- mate strength of the market may maybe be PRICING HAS liAS therefore been variable and illusive with a sizeable portion of the crop moving on a consignment consignment consign consign- ment basis Ontario Canada Growers Marketing Board established a 10 cents per pound price with a grade tolerance of 8 percent IN MICHIGAN AN Pennsyl Pennsylvania ania New York and Wisconsin there are a number of contracts with witha a price of 9 cents to the grower for 96 to percent grade Eight and one one half half cents per pound for foi 96 to percent grade is being paid in southwestern southwestern south south- western Michigan for many cherries A number of processors in Michigan have been seeking to buy for 8 cents for a 96 to percent grade THERE ARE reports o of an anticipated contract of 10 cents per pound in Northwestern Michigan for a 96 to percent grade A All the prices established in inthe inthe inthe the lake states states' are subject to toa toa toa a scale-down scale from the above quoted figures with most firms rejecting fruit which will not grade 85 percent or better PRODUCTION uncertainties uncertain uncertain- ties continue as illustrated by browning in southwestern Michigan and leave spot in northwestern Michigan No Noone Noone Noone one really knows what the impact of such things will be except to say that total tonnage tonnage tonnage ton ton- nage har harvested will be reduced reduced re re- re and the grade of such fruit will be significantly im im- im- im paired The condition of Utah's cherry crop has and still presents some real difficult problems not only to the producer producer pro pro- ducer but to the processors After having visited each of the Utah's processors I am confident that they are doing a tremendous job of packaging the product SOME ARE bending over backwards in their efforts to up-date up the products through the hiring of additional help and close scrutiny of the prod prod- Only two processors have havea a significant quantity of quality quality quality ity fruit to work with Quality problems described above are making and will make me the marketing job difficult difficult difficult cult for Utah processors and their costs of operation willbe will willbe willbe be significantly higher than thanin in previous years The sale of C and under grade fruit represents a difficult task THERE IS a reasonably good market for grade A cherries Sizeable lots of Grade II A A frozen rozen cherries have been sold in Michigan for 15 and 16 cents Rumors are that several Utah processors processors processors sors have sold cherries for 15 and 15 cents There is quite a little variation variation variation vari vari- in the grade A cherry packs in Utah this year There is a significant difference in coloring and extent of scald Hence there would be justification justification justification justi justi- for at least a cent differential in the price of the Utah's grade A frozen pack LARGE CROPS a sizable over carry-over of particularly low low- grade fruit problems associated associated with hail damage browning brown ing leaf spot scald and mechanical mechanical me me- injury all contribute toward a market psychology which tends to bring about an over-compensation over in downward downward downward down down- ward price pressure Most of Utah's sour cherries are moving on a consignment or participating agreement basis This places great emphasis emphasis em em- on the need for or integrity and confidence between prod producers producers pro pro- d cers and processors CERTAINLY Utah processors process process- ors are putting forth an effort to do a good job A major conce concern n is that over-anxiety over not be permitted to result in pricing of grade A fruit at less than its true market value There is little alternative f for o 0 r under-grade under products other than to be price takers The market is in government contract sales coupled with wine juice and pectin outlets |