1146 pam connie 285437 0221 - california dried plums report...67,000 acres in 2006. non-bearing...
TRANSCRIPT
Total Production & Yield
215
172
175
142
103
48
168
170
93
205
40
80
120
160
200
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06
2.4 1.2 2.0 2.4 1.6 2.2 2.3 .7 1.4
Average Bearing Acre Yield
Tons
(000)
Proj.
2.4
No. 151 February 2007
This Annual Report was developed in accordance withthe Agricultural Marketing Act of 1937 to provide you witha summary of California Dried Plum Board activities forthe 2005/06 marketing year. Special recognition shouldgo to the members and alternates of the Board andCommittee shown on page 8 and the various subcommitteeswho have devoted many hours to California prune industrymatters during the course of the year.
PRODUCTION AND SUPPLYBearing prune acreage remained unchanged at67,000 acres in 2006. Non-bearing acreagedeclined slightly to 7,500 acres in 2005 versus8,000 acres in 2003. (The CDPB did not fund anon-bearing acreage survey in 2004).
Prune Acreage
86 86
7472 70 67
82 83 83
67
21
26
22 1511 9 8 8
0
10
20
30
40
50
60
70
80
90
100
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06
Acres
(000)
Bearing
Non-Bearing
Prune Tree Sales
324320
230
297 270
162
173
530
300
325
315
0
100
200
300
400
500
600
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07
Trees
(000)
Proj.
Prune tree sales, reported by nurseries, increasedby 67% to 270,000 trees in 2006 after dropping tothe lowest level in 2005 (162,000) since this surveybegan in 1990. The projection for 2007 sales was324,000 trees, which would represent a 20%increase.
2005 prune production increased by 95% to 93,233tons from the smallest crop in 86 years, but the2005 yield per acre of 1.4 tons was still 36% belowthe pre-2004 5-year average of 2.2 tons due toadverse weather conditions. The 2006 crop isprojected by packers to reach 170,000 tons, whichwould still be 3% below the pre-2004 5-yearaverage of 174,450 tons.
Carry-In Inventory
126
6971
60
22
65
101
64
102
26
10
30
50
70
90
110
130
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06
Carry in Desired
(000)
Tons
Desired
The 2005 carry-in of 25,931 tons was 62% smallerthan the 2004 carry-in of 68,833 tons but 17% largerthan the reported 22,140 ton 2006 carry-in.
When combined with 2005 production of 93,233tons, the total supply was 119,164 tons, which wasonly 3% larger than the 2004 supply. The projected2006 total supply of 192,140 tons would represent a61% increase from 2005.
Natural Condition Supply
225
226
116
239226
119
268
192
301
236
110
130
150
170
190
210
230
250
270
290
310
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06
Tons(000)
The average grower return per ton decreased by 1%to $1,474 per ton for 2005 according to theCalifornia Agricultural Statistics Service. Theaverage price for the 2004 and 2005 crop years was88% higher than the previous 5-year average of$789.
Average Grower Returns/Ton
1474
1496
810726
883
775
764 772
861
725
825
925
1025
1125
1225
1325
1425
1525
1625
'97 '98 '99 '00 '01 '02 '03 '04 '05
199 99 165 203 135 168 47
Salable Production
$
162 93
Average Returns / Bearing Acre
1722
1162
1782
1776
917
1860
20642119
1047800
1100
1400
1700
2000
2300
2600
2900
3200
3500
3800
'97 '98 '99 '00 '01 '02 '03 '04 '05
$
2.4 1.2 2.0 2.4 1.6 2.2 2.3 .7
Salable Yield
1.4
The average return per bearing acre nearly doubled(+97%) due to the increase in yield per acre.
SHIPMENTSTotal 2005 shipments of 105,583 processedcondition tons were 11% higher than 2004shipments which had been dramatically reduced dueto inventory limitations. Domestic shipmentsincreased by 29% while exports declined 8% due
to aggressive competition from France, Chile andArgentina. Exports as a percent of total shipmentsdeclined over 8 points to 40.6%.
Total Shipments
176 163 167
95
173
106
173178
155
86
928795 96
90 88
4963
8782
80
4346
67778176
40
60
80
100
120
140
160
180
200
'97 '98 '99 '00 '01 '02 '03 '04 '05
Tons(000)
Total
Domestic
Export
Shipments of pitted prunes increased by 2% versusyear ago while whole prunes increased by 33%.Pitted prune shipments as a percent of totalshipments declined 6 points to 64%. Pitted prunesaccounted for 75% of exports and 57% of domesticshipments.
Shipments - Whole & Pitted
178
163 167
173173
95
155189
106
28 3869
5966 60
84
54
63
105112
67 68
11398104 101 110
20
40
60
80
100
120
140
160
180
200
'97 '98 '99 '00 '01 '02 '03 '04 '05
Tons(000)
Total
Whole
Pitted
U. S. Prune Imports
233.6 184.2
7990.3
4237.8
992.8
28.9460.7243.4493.4
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1998 1999 2000 2001 2002 2003 2004 2005 2006
MT
(4 months)
The increasing availability of California prunes ledto a 47% drop in U.S. prune imports (excludingprunes in brine) last year to 4,237.8 MT. For thefirst four months this year imports dropped anadditional 43% to 992.8 MT with 95% of theimports coming from Argentina.
2
3
Imports of unfermented prune juice (includingprune concentrate converted to single strength juice)declined by 20% last year to 19,762.8 kiloliters (theequivalent of about 7,050 short tons of prunes). Forthe first four months this year 8,546.9 KL (about 3,050short tons) has been imported from Chile, France,Germany and China, an increase of 37%.
U. S. Prune Juice Imports(Unfermented)
24658.5
4756.4
2092.93615.0
1945.5
6704.57715.5
19762.8
8546.9
0
5000
10000
15000
20000
25000
30000
1998 1999 2000 2001 2002 2003 2004 2005 2006
KL
(4 months)
STRATEGIC PLAN
The California Dried Plum Board recently completeda Comprehensive Industry Strategic Plan (CISP) thanksto the facilitation and compilation of Ms. Mary Moosof Gordian Marketing, Inc. Representatives from allfacets of the industry as well as CDPB staff, agencyand consultant resources met for three work sessionsto develop a comprehensive and coordinated globalstrategic plan that would:
Support the long-term health of the industryRepresent areas of common interestProvide benefits to all industry segmentsBe used to make informed decisions aboutfunding and programming
From these sessions the following mission statementswere developed.Industry: To sell more California dried plums to morepeople worldwide.CDPB: To protect and support the health, growth andintegrity of the California dried plum industry.
It was agreed that the focus of the CDPB’s activitiesshould be:
Generic Promotions: Communicate differentiatedbenefits and encourage large-scale acceptance ofCalifornia dried plums
Research: Market research for measurement;production research to improve grower efficiency;nutrition research to identify positioningopportunities and value messagesTrade Policy: Protect the interests of theCalifornia dried plum industry globallyIssues Management: Protect the health of theindustry
The most critical issues facing the California prune/driedplum industry over the next five years were identified as:
Shrinking demandCompetition from exportsIncreased production costsDifficulty of marketing dried plums
The strategic planning process revealed the followingopportunities and strategies:Opportunity 1: Export Marketing
Strategy 1: Block foreign competition from takingadditional market share caused by inventory shortagesby employing marketing tactics that supportrelationships with retailers but don’t indirectly benefitforeign competitors.
Opportunity 2: Economic FactorsStrategy 2: Production ResearchIncrease grower efficiency and differentiate the productfor a competitive advantage.Strategy 3: New Applications and UsesIncrease demand through new value-added products soldinto industrial markets.Strategy 4: CommunicationsInfluence demand through communications of thedifferentiated value of California dried plums.
If you would like an electronic or hard copy of the strategicplan, please contact the CDPB office.
DOMESTIC MARKETING
Public RelationsThe public relations focus in the U.S. continued tobe on positioning dried plums as the #1 fruit fordigestive health due to their sorbitol, fiber,antioxidants and potassium. This positioningextends beyond consumers’ traditional association
of prunes with laxation to encompass lifestyle andwell-being.
Consumer public relations activities targeted generallyhealthy women who rely on processed, ready-to-eat/prepared foods for themselves and their families, whoare motivated by wellness and diet prone.
Our communication goals were to:
• Create and build awareness about theimportance of digestive health among:
– Consumers
– Media
– Health Professionals
• Drive awareness that California Dried Plumsare the essential component to digestivehealth
• Position the California Dried Plum Boardas the number one resource for informationon digestive health
The program strategies in 2005/06 were to:
• Continue to build scientific credibility fordigestive health gained in year one via aDigestive Health Summit
• Spark research interest among scientificcommunity
• Enhance tools created in year one• Expand communications to target audiences
4
Media outreach focused onour spokesperson, LeoTreyzon, MD, agastroenterologist at theUCLA Center for HumanNutrition who was featuredin broadcast, print and Internetcoverage. Dr. Treyzonemphasized “The DigestiveHealth Diet” consisting ofCalifornia dried plums andother colorful fruits and
vegetables as well as dietary sources of vegetable protein,fiber, calcium and Vitamin D. Dried plums were positionedas the number one fruit for digestive health.
Dr. Leo Treyzon
Influencers like dietitians, nutritionists, doctors andnurses are essential to spreading the dried plummessage to thousands of consumers. Digestive healthseminars were held at the American DieteticAssociation (ADA) in October 2005 and the Instituteof Food Technologists (IFT) in June 2006. The CDPBexhibited and distributed product samples andmaterials at both shows.
The Digestive HealthOrganization (DHO) website(www.digestivehealthorg.com)launched last year wasexpanded to share knowledgeabout digestive health withhealth professionals. Inaddition, a new website waslaunched to spread thedigestive health message toconsumers atwww.Tummywise.com and aBe Tummywise brochure wasdeveloped. The yearconcluded with a nationalsurvey to learn howconsumers definegastrointestinal health, whatthe key attributes are andwhat their level of GIknowledge is. The survey results were then used onthe DHO website and to develop press materials.
Nutrition Research
Activities of the Nutrition Research Programcontinued to emphasize digestive health. Incoordination with the Board’s Food TechnologyConsultant, Nutrition Advisory Panel (NAP) memberDan Gallaher, Ph.D. spoke on ‘What Is Good IntestinalHealth and How Can We Get It?’ at the annual meetingof the Institute of Food Technologists. Answers tocommon consumer questions about the role of dried plumsand digestive health are now posted onwww.Tummywise.com and the “White Paper on DriedPlums and Laxation” is available onwww.digestivehealthorg.com as a health professionalresource.
Nutrition research is receiving international interest andexposure. An overview and summary of the Board’ssponsored research was presented at the
TummywiseBrochure
5
International Prune Association meeting in Sardiniain May. Researchers from Harokopeio University(Greece) expressed interest in conducting research onprunes and satiety. Christine Wu, Ph.D., presented aposter on dried plums and oral health at the meetingof the International Association for Dental Researchheld in Australia.
The Nutrition Advisory Panel held its yearly meeting withthe Nutrition Subcommittee to evaluate current researchactivities and discuss future opportunities. ConnieRodgers, Ph.D., National Cancer Institute Laboratory onTumor Immunology and Biology has joined the Panel.
Research projects carried over into 2005/06 include:
• James Joseph’s, Ph.D. initial study on dried plums’effect on brain aging in rats is completed; however,Dr. Joseph continues to assess at no cost the anti-inflammatory activity of fresh plum juice in amouse cell model.
• Christine Wu, Ph.D., University of Illinois,Chicago, has added more subjects to her researchon the role of dried plums in oral health and thesuppression of cariogenic bacteria.
• Bahram Arjmandi, Ph.D., RD, began his USDA-funded clinical trial at Florida State University toinvestigate whether dried plums can reverse boneloss in postmenopausal women. The Board hasprovided snack packs for the study and fundingfor several measurements of oxidative stress todiscover dried plums’ antioxidant and anti-inflammatory role.
Other activities of the Nutrition Research programincluded:
• Supporting nutrition communications efforts inconsumer public relations to increase generalawareness of digestive health as an aspect ofoverall health and well-being.
• Participating in the development of acomprehensive strategic plan for the dried plumindustry.
• Meeting, prospecting and networking with otherinstitutions and government agencies to leverage andextend the nutrition research program activities.
• Preparing monthly updates including research itemsof industry interest.
Industrial Program
The California Dried Plum Board’s industrial/food serviceprogram is focused onthe use of various formsof dried plums as foodingredients. In prioryears the ingredientfocus was on bakedgoods and meatproducts. The benefitsof dried plums used inthese products werebroad and includedmoisture retention, fatreplacement, caloriereduction, antimicrobialprotection and food safety. More recently these multiplebenefits were narrowed to focus on how dried plums cancontribute to extended shelf life and shelf stability in meatand bakery products. This message was conveyed usingvarious communications tactics.
Specific projects in 2005/06 included:
• Two new trade ads promoting the shelf life benefitsof dried plums in meat and bakery products
• Trade advertising in Food Product Design andCulinology magazines
• Supporting technical bulletins summarizing driedplums’ shelf life benefits
• The completion of technical and applicationsresearch on dried plums’ use in 100-calorie snackfoods
• Press releases describing dried plums’ shelf lifebenefits
• Participation at the annual Research ChefsAssociation convention and the Institute of FoodTechnologists annual convention
Trade Baking Ad
INTERNATIONAL MARKETING
The California Dried Plum Board was granted $2,700,000in Market Access Program (MAP) support by USDA’sForeign Agricultural Service in 2005/06. Due to a secondshort California prune crop, promotional activities werefocused on building awareness of the benefits of buyingCalifornia prunes rather than prunes from other originswithout stimulating retail sales.
JapanDue to the continuing tight inventory situation, short-term demand stimulation activities like spot televisionadvertising and television publicity were limited. Thefunds were used instead to remind consumers aboutCalifornia prunes and reward retailers who did notreplace California prunes with prunes from Chile orFrance. This was done through in-store samplingdemonstrations, a consumer premium campaignoffering prizes for selected entrants and a supermarketdisplay contest. New point-of-sale materials wereproduced for use during these retail activities toincrease awareness of California prunes. School lunchseminars encouraging the use of California prunes inofficial school recipes were continued and asupermarket survey tracked inroads of foreign prunes atretail.
ChinaTrade show participation helped reassure buyers thatCalifornia continues to support its products despiteinventory limitations. A community promotion inShanghai conveyed prune nutrition education to 3million consumers. Pitted prune samples weredistributed at gyms in both Beijing and Shanghai and on
Southern China Airlinesflights. Advertising inhealth and women’smagazines and onbillboards in Beijing,Shanghai and Guangzhouincreased awareness of thenutritional attributes ofCalifornia prunes.
Magazine Ad
IndiaActivities in India focused on developing and printingnew point-of-sale materials and sampling promotionsin supermarkets, shopping malls and theaters.Publicity coverage was achieved in popular magazinesand local newspapers. Participation in several tradeshows, a Chef Awards ceremony and health seminarsdemonstrated the nutritional attributes and usageversatility of California prunes.
United Kingdom“Choose California –The Quality Choice”was the promotionaltheme in the U.K. ascommunicated in mediaoutreach and retailerpromotions like anarticle in Sainsbury’sMagazine and onTesco’s e-newsletter
and website. Sponsorship of the women’s EnglandNetball team continued to provide magazine publicityand sampling opportunities. The CPB also co-sponsored “The Big Toddle”, a walk for toddlers,parents and grandparents benefiting Barnardo’sChildren’s’ Charity.
ItalyA van decorated withbold California prunegraphics traveled tocycling, running andother popular eventsthroughout Italy. Thevan contained a smallelectric car whichattracted the media andthrongs of consumersas it stole the show at these events. Product samplesand literature were distributed and contest entries werecollected to win environmentally friendly prizes. Anew Italian website was launched and a “ChooseCalifornia Quality” brochure was distributed to thetrade via mail and a booth at MIA of Rimini trade show.
Choose California Brochure
Electric Car
6
Greece
Generic promotions began in Greece last year with atrade press luncheon in Athens, one-on-one consumerpress meetings, and development of Greek pressmaterials and POS materials.
Please note that the California Dried Plum Boardis a recipient of Market Access Program (MAP)funds from USDA’s Foreign Agricultural Service.The U.S. Department of Agriculture (USDA)prohibits discrimination in all its programs andactivities on the basis of race, color, national origin,gender, religion, age, disability, political beliefs,sexual orientation and marital or family status. (Notall prohibited bases apply to all programs.) Personswith disabilities who require alternative means forcommunication of program information (Braille,large print, audiotape, etc.) should contact RichardPeterson at (916) 565-6232.
PRODUCTION RESEARCHThe California Dried Plum Board funded a variety ofproduction research projects in 2005/06 as well asmembership in theMinor Crop FarmerAlliance and theI m p l e m e n t a t i o nWorking Group at atotal cost of$159,436. DonaldVossler served asChairman of theCDPB ResearchSubcommittee for 23years until his deathon August 27, 2006. The report on the 2005/06 pruneresearch projects was dedicated to Don for his yearsof dedicated service to the industry and his leadershipin production research. For a copy of this report,contact the Board office. Gary Obenauf, President ofAgricultural Research Consulting, coordinated allresearch activities.
UC Guide Offers Plum Good Info for Growers
In the newly released University of California SeasonalGuide to Environmentally Responsible PestManagement Practices in Prunes, growers can findguidance on some of prunes’ major pests such asaphids and peach twig borer.
Don Vossler
7
The guide also contains other valuable information tohelp prune growers protect their crop and avoidunnecessary insecticide spraying. The seasonal guideoutlines activities thatneed to be carried outbased on the cropgrowth stage. Alsoincluded are lists ofe n v i r o n m e n t a l l yfriendly insecticidesand broad-spectrumpesticides that haveimplications forwildlife and theenvironment.
A free copy of theguide is available toCalifornia prune growers and processors by contactingthe CDPB office.
2005/06 BOARD INCOME &EXPENSESThe 2005/06 Board statement of income andexpenses is shown below. These representaudited figures verified in the Board’s annualaudit by Hood and Strong, Certified PublicAccountants.
INCOME:
Carryover Funds $ 492,390Production (Assessable tons only) 93,441Assessment Rate per ton 32.00Assessment Income 2,990,105Misc. Income (Interest, etc.) 13,438
TOTAL INCOME $ 3,495,933
EXPENSES:
Operating Expenses $ 209,767Consulting Services 116,524Crop Estimating Services 32,000Production Research & Coordination 184,584Public Relations 710,274Advertising 0Consumer Research 66,510Sales Promotion 29,535International Market Development 1,012,082Administration 407,081
TOTAL EXPENSES $ 2,768,357
FUNDS CARRIED OVER $ 727,576
ADDRESS SERVICE REQUESTED
3840 Rosin Court, Suite 170Sacramento, CA 95834CDPB (916) 565-6232PMC (916) 565-6235FAX (916) 565-6237E-mail: [email protected]: www.californiadriedplums.org
The California Dried Plum News is published bythe California Dried Plum Board (CDPB) &the Prune Marketing Committee (PMC)
Tim Smith, Chairman, CDPBJon Lavy, Chairman, PMCRichard Peterson, Executive Director,CDPB & PMC
2005/06 MARKETING YEARCALIFORNIA DRIED PLUM BOARD PRUNE MARKETING COMMITTEE
DISTRICT/AFFILIATION MEMBERS ALTERNATES
PRODUCERS1 Vern Vereschagin Keith Larrabee (c)2 Ron Giovannetti W.C. “Buzz” Sowden3 Jaswant Bains Neill Mitchell4 Ken Lindauer Al Lengtat5 Jon Lavy Dan Bozzo6 Steve Danna Ranvir Singh7 Chris Steggall Lucille DemetriffCo-op Gus Collin Bob Amarel, Jr.Co-op Ren Fairbanks Jill CenedellaCo-op Brendon Flynn Joe TurkovichCo-op Bob Kolberg Phil FilterCo-op Hans Smith John RehermannCo-op Tim Smith (a) (c) VacantCo-op Donald Vossler (b) Vacant
MEMBERS ALTERNATESPRODUCERS
Vern Vereschagin Keith Larrabee (c)Ron Giovannetti W.C. “Buzz” SowdenNeill Mitchell VacantKen Lindauer (b) Dorothy LindauerJon Lavy Dan BozzoSteve Danna Ranvir SinghLucille Demetriff Dwayne CardozaGus Collin (a) (c) Bob Amarel, Jr.Ren Fairbanks Jill CenedellaBrendon Flynn Joe TurkovichBob Kolberg Phil FilterHans Smith John RehermannTim Smith VacantDonald Vossler Vacant
PROCESSORS PROCESSORSCo-op Arthur Driscoll (c) Harold UptonCo-op Dane Lance Steve Harris (e)Co-op Harold Schenker (c) Mark DalrympleCo-op Gary Thiara (c) Bruce NortonIndependent Mark Mariani (c) George Sousa, Jr.Independent Don Soetaert (d) David MazzolaIndependent Kent Mannee Rick Wilbur (c)
Mark Dalrymple Bruce NortonArthur Driscoll (c) Harold UptonHarold Schenker (c) Dane LanceGary Thiara (c) Steve Harris (e)Mark Mariani (c) George Sousa, Jr.Don Soetaert (d) David MazzolaRick Wilbur (c) Kent Mannee
PUBLIC MEMBER PUBLIC MEMBER
(a) Chairman, (b) Vice Chairman, (c) Executive Committee Member, (d) Replaced Ron Sandage and (e) Replaced Steve Riccardelli
Karen Berke Vacant Karen Berke Vacant
8