MARKETING SWEET CHERRIES. Shermain Hardesty Small Farm Program University of California March 1, 2009
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1 MARKETING SWEET CHERRIES Shermain Hardesty Small Farm Program University of California March 1, 2009
2 Overview US Cherry Supply & Demand Traditional marketing Direct marketing
3 Sweet Cherries: Bearing Acreage by Year, US
4 Sweet Cherries: Acreage,Yields, Production & Use source: USDA, Noncitrus Fruits & Nuts State & Bearing Yield/ Production Utilization Year Acreage Acre Total Fresh Processed Tons Tons Tons Tons CA , ,100 32,400 7, , ,000 67,400 14, , ,000 67,400 15,400 OR , ,100 29,600 23, , ,000 20,500 13, , ,000 17,200 9,200 WA , , ,000 45, , , ,000 28, , ,000 85,000 15,000 US , , ,770 96, , , ,560 83, , , ,620 65,100
5 Average Prices Paid to Producers California Cherries, Per Ton Fresh Processed 2006 $3,740 $ $2,250 $ $2,840 $202 source: USDA, Noncitrus Fruits & Nuts
6 US Per Capita Sweet Cherry Consumption source: USDA Fruit & Tree Nuts Yearbook lbs
7 Health Benefits of Sweet Cherries source: California Cherry Advisory Board Heart Disease Prevention flavonoid - quercetin Cancer Prevention phenolic acid called amygdalin, also termed Vitamin B17 and laetrile, found in the kernels of cherries and other fruits Pain Relief Anthocyanins found in cherries block inflammatory enzymes, reducing pain. 20 cherries are 10 times as potent as aspirin and have positive effects on gout and arthritis pain Bone Health Sweet cherries are an excellent source of boron. Boron consumption, coupled with calcium and magnesium has been linked to increased bone health.
8 Fresh Fruit and Vegetable Marketing Channels Adapted from U.S. Fresh Produce Markets: Marketing Channels, Trade Practices, and Retail Pricing Behavior by Carolyn Dimitri, Abebayehu Tegene, and Phil R. Kaufman Agricultural Economic Report No. (AER-825), September 2003.
9 Traditional Produce Marketing System Entities Packer/shippers Wholesalers/Distributors Retailers & Foodservice Operations
10 Packer-Shippers
11 Packer Shippers Usually are growers as well as packers Aggregate product Receive, sort, package, store, ship Usually pay a contract price Deduct for services Often contract direct with large customers, such as Costco, Safeway, SaveMart
12 Packaging Options 18 lb wooden box 18 lb carton 5 kilo carton Clam shells Bags
13 Japan Mixed Cherry Varieties 18PD.RICORDO.X.JAPAN 18 lbs. Ricordo Japan Loose Pack Net Weight 18 lbs. White Opaque Liner Non-Vented 9x9 Cherry pad Sealed w/ PPQ Tape Heat Treated (Yellow Striped) Pallet only Skid Pad on Pallet 90 units per pallet 9ti x 10hi Stacking Pattern Corner Board x 4 Pallet Strapped with Rapid Rope NO Leaves or Debris (Standard Carton) Inkjet Variety 3/5/2009 Cherry Pack Book
14 EXPORT 5-Kilo5 Net Weight: 5 Kilos (11 lbs) Packed inside of an MA bag. (Modified Atmosphere) 108 Boxes per pallet. All Sizes/Varieties.
15 5-Kilo Type of cherry. Row Size. Net Weight. Federal State Inspection lot. Lot #
16 Club Stores 4 Lbs Clams
17 Mixed Cherry Varieties 4/4C.COSTCO Four 4 lb. Clam Shells Net Weight 16 lbs. CHEP Pallet ONLY 95 units per pallet 5ti x 19hi Stacking Pattern Pallet Top on ALL full pallets Corner Board x 4 Pallet Bag Pallet Strapped with Rapid Rope Clams: 4 LB. UPC: (NO PRINTED SIZE OR VARIETY) COSTCO ITEM # On the clam label Boxes: New COSTCO 4-4 CLAM MASTER (Euro 40 x 60 footprint) Inkjet Packed and Shipped by address 3/5/2009 Cherry Pack Book
18 8/2 Bags
19 8/2 Bags Type of cherry Row Size Net Weight. Federal State Amount and weight of bags. Inspection lot. Lot #.
20 Direct Marketing Farmers markets CSAs Farm stand U-pick Internet/Mail Order OPPORTUNITY TO EARN FULL RETAIL BUT NEED TO CONSIDER PACKING, TRANSPORTATION & SELLING COSTS
21 Marketing Cherries At Farmers Markets Only farmers can sell at Certified Farmers Markets in California Exempt from Pack & Grade regulations Cherries are celebrated as first crop of summer Sampling regulations vary by market
22 Considerations With Direct Marketing Packaging Temperature control Branding your identity Product selection Liability insurance Packing, transportation & selling costs
23 Thank you to Stemilt and AllState Packing for sharing their marketing materials
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