Today is Sunday October 25th , 2020

California Prune Growers Suffer the Brunt

YUBA CITY, CA, July 27, 2020 – California prune growers forced economically to make a 23% reduction in crop deliveries have also suffered a 28% reduction in price. This hardship comes in spite of a number of positive factors for the industry including $50 million in USDA purchases of prunes and positive results from trade mitigation offsets and industry promotion efforts in Japan and elsewhere. Growers reviewed the daunting double hit to grower returns from a number of factors including the disruption to trade caused by the coronavirus pandemic at the 52nd annual membership meeting of the Prune Bargaining Association (PBA) held on Thursday last week by conference call/video conference.

Average grower returns for a number of growers will fall by more than $500 per ton from the previous crop year according to data presented by PBA General Manager Greg Thompson. “Growers are to be commended for the tremendous efforts they have made to match production with demand,” explained Thompson. “Growers were told they would be paid little or nothing for smaller prunes, so they increased their efforts to prune, thin, and then screen out fruit at harvest, bringing the crop down from an estimated 110,000 tons to 85,000 tons.” As background, according to the University of California, growers have an investment of nearly $18,000 per acre (not including land) to establish a prune orchard. Growers spend an additional $4,194 per acre each year to produce and deliver the crop. “The extra effort made this past year by growers increases expenses and reduces yields,” explains Thompson. “It is truly a double whammy to have grower prices fall so precipitously.”

The brutal cut to grower prices comes in the face of many positives for the industry. Imports of cheaper but poorer quality prunes are down 76% for the first 5 months of year, while domestic shipments of California prunes are up 13%. USDA programs in response to unfair and retaliatory tariffs and trade barriers, and needy family feeding programs, have helped offset losses in overseas markets and gain back market share. Shipments to Japan, a key market for California prunes, are up 14% over the previous year. Over the past 3 years, the USDA has purchased nearly $50 million of prunes for needy families, school lunch, and other feeding programs.

One of the biggest positives for the California prune growers comes from a united industry working together to promote health and wellness through nutrition research. “Everbody wants to make a health claim these days,” explains Ranvir Singh, PBA President. “But prunes are the tried and true healthy and completely natural food. There is so much more to the health benefits of eating prunes than anyone first imagined.” Scientific research is revealing more and more about the importance of gut health to overall health. Prunes have been shown to have a positive impact on both gut health and bone health, among other bonuses. “The benefits of micro-nutrients, boron, potassium, fiber and an apparent anti- inflammation benefit in gut make prunes a truly remarkable food,” remarks Singh.

The Prune Bargaining Association was formed in 1968 as a grower-owned cooperative to improve the economy of the California prune industry, encourage the production of a quality product and provide a forum for growers to exchange ideas regarding the industry. The PBA establishes the industry’s raw product price for prunes.

(Note: the meeting presentation is posted in the members' section. Look for the PBA Annual Membership Meeting 2020 Pricing Report)

51st Annual Membership Meeeting

YUBA CITY, CA, July 12, 2019 – The 51st Annual Membership Meeting of the Prune Bargaining Association and 6th Annual Membership meeting of the California Prune Growers Marketing Association will provide prune growers with answers to some of the most pressing questions that growers face.

California prune shipments are forecast at less than 80,000 tons for the 2018/19 market year. With a potential carry-over in excess of 95,000 tons from last year and the current crop estimated at 110,000 tons, PBA members will have the opportunity to discuss what growers can do to mitigate a potential crippling oversupply, and review the latest data on what can be expected going forward.

Harvest screening of smaller prunes and working with commercial harvester operators and dryers to optimize fruit maturity will be considered by a panel of growers and dryer opterators. These measures will be considered in some detail in relation to field pricing, and seasoned members will share their experience in these areas to provide guidance.

Increased government purchases of prunes and increased trade mitigation this market year is also expected to help address the excess supply. Current trends in this area will be provided along with the outlook for California prune acreage.

(Note: the meeting presentation is posted in the members' section. Look for the PBA Annual Membership Meeting 2019 Pricing Report)

Growers Announce 2018 Prune Price

YUBA CITY, CA, January 15, 2019 – A 23% reduction in crop production has resulted in a price recommendation that holds prices steady on California prunes despite trade and global market challenges. Directors of the Prune Bargaining Association voted last month to maintain the same price schedule for the 2018 crop as the 2017 crop. The price schedule provides guidance to growers and packers on prices to be paid to growers for California prunes depending on size and quality of the fruit.

In making their decision PBA Directors considered domestic and international market factors, supply and trade demand, and average export volume and unit-value trends provided by the USDA Foreign Agricultural Service. Despite the down-turn in global trade for prunes, U.S. prune exports increased 11% in the first quarter of the 2018-19 market year, according to USDA-FAS. Since California accounts for nearly 100% of U.S. prune production, the increase in volume is good news for California growers who have seen some sharp volume declines in the recent past. In 2016, export volume fell to 37,000 tons from 43,000 tons in the previous year. Exports account for about 50 percent of the industry’s trade volume.

In charting a course to maintain firm prices to growers, PBA Directors acknowledged that the industry faces serious challenges, noting that cheap, inferior product from foreign sources and escalating tarriffs have impacted key markets. For example, the USDA reports shipments to Hong Kong down 35% and shipments to Germany down 21% for the first quarter of the new market year. Yet, PBA President, Ranvir Singh, is cautiously optimistic. "California quality and consistency is attractive to the trade and to consumers," he explains. 'Customers are finding that other sources of prunes just don't have the same quality they have come to expect from California."

The Prune Bargaining Association was formed in 1968 as a grower-owned cooperative to improve the economy of the California prune industry, encourage the production of a quality product and provide a forum for growers to exchange ideas regarding the industry. The PBA establishes the industry’s raw product price for prunes.