US pumpkin growers toast nontraditional demand for fruit
CHICAGO (Reuters) – US farmers are cheering a bumper crop of pumpkins this year, due to dry weather, and celebrating a year-round boost in demand aided by new avenues of growth in such products as flavored coffee and pet food.
Experts said this year’s pumpkin crop will match or top 2016’s bountiful harvest thanks to favorable growing conditions in six states noted for producing half of the pumpkins in the nation. Farmers last year produced 726 million kilograms valued at $208 million, according to the US Department of Agriculture.
Sales of the fruit for decorations, such as jack-o’-lanterns, or pumpkin-pie filling and yogurt remain strong. But it is the new and different uses, such as liquid coffee, cereal and dog food, where demand is surging.
Sales of pumpkin-flavored items for the year ending July 1 have surged 45% since 2013 – the earliest year data is available – to a record $414m., according to market research firm Nielsen. That total is up 6% from a year ago.
“Any way you can consume it, it’s a good thing,” said Jim Ackerman, the agriculture manager for Libby’s, which supplies close to 80% of US canned pumpkin.
Libby’s is a unit of Nestle SA, which is also the parent company of Nestle Purina Petcare, the world’s No. 2 pet-food manufacturer.
“Pets love pumpkin too,” Purina nutritionist Janet Dempsey said, citing its antioxidant-like benefits and dietary-fiber content. Purina uses real pumpkin to accent its cat- and dog-food recipes year-round.
Sales of dog food with pumpkin flavors skyrocketed to $41.9m. for the 52-week period ending July 29, compared with $925,288 during a similar period in 2013.
Not all nontraditional sectors are hot for pumpkin, however.
The liquor market for pumpkins, including pumpkin-flavored craft beers, has cooled in recent years as fickle millennials switch to other flavors. Pumpkin-themed craft-beer sales fell to $83.6m. in 2016 from $115m. in 2014, according to Nielsen.
The bumper US pumpkin crop this year was aided in some regions by dry weather, which hurt corn and soybean crops but aided the large orange-yellow fruit.
In Illinois, which usually accounts for 90% of the US’s canned or processed pumpkins, farmers last year picked 307 million kg. of pumpkins, the US Department of Agriculture said. That was the second-highest total ever and was worth a record $52m.
“The drier, the better, because it results in less disease and yield loss,” University of Illinois plant pathologist Mohammad Babadoost said. “With all this strange weather, we may end up having one of the best pumpkin crops in years.”
Another perk for growers from the large crop was that any unharvested pumpkins will help protect the soil for incoming, or rotation, crops such as corn and soybeans, experts said.
Mark Berg, an Illinois farmer who grows pumpkins for Libby’s, was hurt by isolated rain in his area but said the industry overall would benefit from the dry weather.
“That will help offset a lower price, because you’re going to have at least the same or slightly better income from the pumpkins,” he said.