Prune Association Makes Price Announcement

YUBA CITY, CA September 19, 2008 –The Prune Bargaining Association Board of Directors met this week to review price offers and considered input from packers and growers regarding this year's market situation. After deliberation the Board made a decision to announce the PBA field price without reaching a price agreement with packers. Present circumstances in the industry brought the Board to this unprecedented action.

With harvest now complete and production falling short of expectations, the Board acted to provide timely guidance on price to growers, packers, and buyers. The PBA field price schedule for the 2008 prune crop reflects an increase of 10 cents per pound for prunes larger than 82 per pound. While the announced prices on larger fruit are up 12% from last year, the overall impact reflects a minor increase from price levels set in 2005 when the industry last faced a tight supply. The new price schedule results in an average grower price of 81 cents per pound for standard prunes.

A widespread frost in April caused more crop loss than expected and some growers now say that the State crop estimate of 120,000 tons is overly optimistic. A number of packers have indicated that their contracted tonnage has fallen short of their needs. “The crop shortfall and the ongoing loss of prune acreage has everyone concerned,” stated Association Manager, Greg Thompson. “A string of bad crops and poor returns is causing growers to pull out orchards right after harvest this year.”  According to Thompson, packers are vying for a limited supply of prunes, which could lead to instability if more growers opt to sell prunes to the highest bidder rather than deliver under a contract. “Packers and growers may utilize the PBA Field Price to buy and sell prunes without the potential disruption that bidding would cause the industry,” says Thompson.

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.