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December, 1996

Empire Fruit Growers Co-op finds success in numbers

A group of New York apple growers is finding strength in numbers.

ìOur growers wouldnít be as successful as they are today if they would not have gotten involved in this co-op,î said Charlie Tompkins, general manager of Empire Fruit Growers Co-op. ìThe marketing end of it would have held them down, and they would have had to scale down.î

Empire Fruit Growers Co-op in North Rose is part of a growing trend of fruit and vegetable grower cooperatives in the northeast offering members access to the newest technology and marketing tools not easily obtainable by individual growers, according to a recent Cornell University study.

In the past seven years cooperatives in the 12-state northeast region have grown 56% to 42 from 27 in 1987. Sales top $2 billion. New York leads the northeast states with 11 fruit and vegetable cooperatives that all gross at least $10 million each year.


Need for consolidation


The consolidation of handling, packing and marketing operations by co-ops and other groups is needed for the New York apple industry to remain competitive, said Mike Durando, president of the New York Apple Association.

ìTo do business on a small scale wonít cut it in the real world for much of industry,î he said.

Fewer sellers could also conceivably increase returns to growers.

ìThe consolidation of marketing in fewer hands, some could argue, will increase prices and stop the undercutting of each other,î Durando said. ìSometimes we are our own worst enemies.î

There are several more consolidations and co-ops that have been formed or are being talked about in New York, according to Durando.

In the Hudson Valley growing region United Apple Sales is planning to construct a new packinghouse and consolidate smaller operations. The new facility will be able to pack at least one million bushels yearly.

On the processing side the Northeastern Juice Co-op was formed last year to increase grower returns on juice apples. It now has 60 members and in a normal crop year will move 500,000 bushels through one sales office.

In the future apple operations in the Champlain Valley may consolidate marketing efforts, Durando said.


Empireís beginning


The five founding members of Empire Fruit Growers saw the advantages of banding together in 1989 and purchased a packing facility from Cahoon Farms. They believed the state-of-the-art computer packing line would fulfill the need to produce a high quality pack.

The original co-op members were Cahoon Farms, Freer Fruit Farm, J. DeBadts and Sons, Teeple Farms and Thomas Farms.

All were Lake Country Storage Co-op members who wanted to go beyond what that co-op was doing. Lake Country didnít have a long-term marketing plan at that time and all fruit was being sold tree-run in bulk bins.

ìThe growers knew that they were transitioning from growing processing apples to fresh,î Tompkins said. ìThey realized that the bulk bin market was limited and couldnít support the amount of new acreage coming on-line. You can ship packed fruit all over the world, but you can only sell a bulk bin about 200 miles away.î

The co-op has expanded to seven members in the past seven years. Wafler Farms, Doyle Farms and Kevin Lessord have all joined. Fresh apple production of the members ranges from 15,000 bushels to 100,000 bushels.

This year Empire will pack 320,000 bushels with a goal to expand production by 10% annually. All of the co-op members have new plantings coming into bearing. This new production is geared toward fresh with Jonagold, Gala and Fuji taking the place of Rome and Ida Red. The largest production is Empire followed by McIntosh and Red Delicious. Jonagold will take second or third place by 2001 with Gala not far behind.

The co-op also offers its members market awareness to help guide them in their planting decisions, Tompkins said.

ìWe realize that we need to provide our customers with a number of varieties as the West Coast does today,î he said. ìWe need to offer retailers a varietal mix, but at the same time realize that McIntosh and Red Delicious are still very important varieties.î

The co-op idea also allows Empire to get a consistent supply of apples each year, Tompkins said.

ìWith the weather the way it is, it is a good idea to be diverse geographically,î he said. ìOne grower canít really do this, but a group can.î

To ensure the fruit is packed to the highest standards the packing facility has been updated with the latest equipment including an Agritech line featuring an electronic color sorter.

ìYou must have a color sorter to meet the demands of the market,î Tompkins said. ìIt gives us a consistent pack because it takes away the human factor and is a big labor saver.î

All apples are packed under the Royalty label and sold through New York Apple Sales in Hudson. This year 80% of the co-opís apples will be sold in the domestic market and 20% exported. Most of the exports are Empire and Red Delicious to the United Kingdom, Brazil, Israel and several Central American and Scandinavian countries.

Most of the processing apples are sold through Lake Country, which Empire members own about 60% of. It has a large storage facility with a CA capacity of 500,000 bushels and cold storage capacity of 100,000 bushels.

Empire plans to be very aggressive in the future and has tentative facility expansion plans scheduled for 1998. This may include a new packing house and additional cold storage.

ìWe are always interested in expanding our membership,î Tompkins said. ìThere is more and more interest in our co-op because of the things it can offer growers. Growers who arenít affiliated with a packing house market in a hit or miss way each year and donít always know if they have a home for their fruit.î _