The Middletown Press (Middletown, CT)
Cranberry overload spurs supply dumping
Cranberries might be a staple on Thanksgiving tables, but a glut of U.S. supplies has gotten so large that fruit could be headed to the compost pile.
Just as demand is hitting its seasonal peak, American processors are anxiously awaiting government approval that would allow them to turn excess fruit into fertilizer. The program would be the first of its kind for cranberries.
Supplies have piled up amid bountiful U.S. harvests and a surge in imports. Inventories were large enough to top consumption before farmers even started gathering this year’s crop in September. The overhang prompted growers and processors to vote in favor of the disposal program at a biannual meeting of the Cranberry Marketing Committee in August. The U.S. Department of Agriculture could rubber-stamp the proposal as early as this week.
“The order will allow the industry to get back into supply and demand balance,” said Kellyanne Dignan, the director of global cooperative communications at Ocean Spray Cranberries Inc., the largest U.S. producer and processor, and a name that’s become almost synonymous with the fruit.
The humble cranberry is iconic at this time of year as it pops up in everything from traditional relishes to Christmas cookies and cocktails. About 20 percent of annual sales of the fresh and processed fruit occurs during the week of Thanksgiving, celebrated on Nov. 23 this year. But becoming a celebrity of the fruit world hasn’t been enough to reverse the slowing pace of demand growth, leading the industry to take desperate measures to keep prices from collapsing.
Under the proposed initiative, fruit processors and exporters would be responsible for supply disposal. Some can be donated or used for research, but the lion’s share will likely end up as compost. The cranberry committee has also recommended that growers reduce next year’s production, leaving it 25 percent below average sales of the past six years, according to Michelle Hogan, executive director of the Wareham, Mass.-based group. The plan for next season is similar to a cropreduction method last used in 2000 and 2001.
“We are producing a lot more than we are selling,” Hogan said.
Even as U.S. exports climbed in recent years, with shipments to China helping boost American shipments by 33 percent over the past five seasons, that hasn’t been enough to prevent a jump in inventories. The problem is U.S. production grew 19 percent since 2011 and imports, mostly from Canada, tripled.
The cranberry is one of many agricultural products that are plagued by gluts, which has kept global food inflation in check.