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May 19, 2017 CapitalPress.com 5 Washington Ecology moves to increase air-monitoring fees Dan Wheat/Capital Press Kanzi apple trees in bloom May 2 at Mt. View Orchard in East Wenatchee, Wash. The industry expects another large crop this year as it struggles with low prices in finishing up sales of the 2016 crop. Kanzi is one of the new managed varieties that sell at strong prices. Second-largest crop pushes many apple prices lower By DAN WHEAT Capital Press CHELAN, Wash. — It’s been a tough sales season for the Washington apple industry. Not as tough as 2014, when a record crop tanked prices, but still bad enough that it’s “not sustainable,” a leading market- er says. Red Delicious apples, sell- ing below break-even prices, are still 29 percent of the 2016 crop and need to be more like 15 to 18 percent, says Tim Ev- ans, general sales manager of Chelan Fresh Marketing. Reds and Gala make up more than 50 percent of the crop. Prices of both have fall- en to less than profitable levels because it’s the second-largest crop in history. The crop was forecast in early August at 132.9 million, 40-pound boxes. The estimate peaked at 137.9 million box- es on Dec. 1 and now is back down to 132.8 million as of May 1. The number is adjust- ed from the start of packing in August through the year-long sales season, primarily for storage cullage. National fresh apple stocks were 16 percent larger on May 1 than they were a year ago, according to the U.S. Ap- ple Association. Red prices dropped in Jan- uary and Gala prices fell in February and have remained low enough that they’ve been a significant hit for growers and packer-shippers, Evans said. “Unless you are diversified and into new genetics, you’re probably not going to sur- vive,” he said. New genetics are new strains of old varieties and new varieties exclusive to individual companies and limited in volume to maintain strong prices. Red Delicious was initially forecast at 33 million boxes for the year but is ending up at 39.5 million boxes, which was enough to “tip it over on price,” Evans said. Certain sizes and grades went to processing into juice, sauce and baking ingredients, he said, adding he doesn’t know if there has been any dumping on fields, as occurred two springs ago after the re- cord 2014 crop. The average asking price of extra fancy (standard) grade, medium size (80 to 88 apples per 40-pound box) Red Deli- cious in Wenatchee and Yaki- ma was $11 to $14.90 on May 5, down from $12.90 to $16.90 on March 7 and down $5 on the low end and $4 on the high end since January, according to USDA tracking. Two years ago, Reds hit $8 per box. Break-even is gener- ally higher than $15 per box. USDA tracking showed Gala at $15 to $20.90 on May 5 compared to $15.90 to $18.90 on March 7. The March prices were down $3 on the low end and $4 on the high end from Feb. 8. Fuji was $21.90 to $26.90 on May 5, down slightly from March and from $25 to $28.90 in January and February. Granny Smith was $20.75 to $27.90 on May 5 versus $21.90 to $24.90 on March 7 but improved from $19 to $23.90 in January and Febru- ary because of short supply. Prices for Honeycrisp were not given because they are nearly sold out. Shippers kept Honeycrisp moving because of the poten- tial for bitter pit and soft scald problems in storage, Evans said. Initially this year’s Honey- crisp crop was estimated at 10 million boxes but it will end up about 8.3 million. As of May 1 there were about 800,000 box- es left to sell. “We planned to take them out longer initially but the way a majority of the fruit was act- ing it took more bins to pack and demand was there so we ended up being out sooner,” Evans said. As of May 1, 96 million boxes of apples had been shipped with 36.8 million re- maining, according to industry reports. That’s 72.5 percent shipped versus 71 percent at the same point last year and 76 percent two years ago during the re- cord 143.6 million-box crop. “We’re at a very manage- able level. With a cooler spring and later bloom, it will give us a couple of extra weeks (of old crop sales) going into the new crop,” Evans said. The Gala harvest normally starts around Aug. 1 but will likely be delayed until Aug. 15 this year, he said. By DON JENKINS Capital Press The Washington Depart- ment of Ecology plans to raise air-monitoring fees on more than 500 businesses, including such agricultural operations as hay processors, fertilizer man- ufacturers and cattle feedlots. Ecology has yet to make a specific proposal. But based on Ecology’s goals, the higher fees would approximately dou- ble the amount the department collects and fall most heavily on businesses with the lowest releases of contaminants. For example, nine distill- ers of mint oil that operate about six weeks a year and have mostly converted from diesel to cleaner-burning pro- pane and natural gas would no longer be exempt from the fees. “If I had my way, we would stay in the exempt cat- egory, but I don’t know how likely that is at this point,” Washington State Mint Com- missioner Shane Johnson said. The fees fund Ecology’s air-quality program in coun- ties without local clean-air agencies. That includes most Matthew Weaver/Capital Press Cattle feedlots and more than 500 other businesses that must report air emissions to the state Depart- ment of Ecology face higher fees to fund the program. of Central and Eastern Wash- ington, and San Juan County in Western Washington. The program tracks emissions from a wide range of industries be- sides agricultural operations. About 130 businesses, such as the mint oil stills, that must report their emissions to Ecology are exempt from fees. Most businesses pay a flat an- nual fee ranging from $450 to $1,000. About 30 of the largest emitters have a more compli- cated fee structure. They pay a base fee of $1,057, plus $16 per ton of emissions and an additional fee based on how much time Ecology spends monitoring them. Ecology says the current emissions-based fee structure doesn’t fairly distribute costs. It also doesn’t raise enough money, according to Ecology. The Washington Clean Air Act calls for the program to be self-supporting, but the fees, last raised five years ago, cov- er only 45 percent of the costs, according to Ecology. The department has so far met twice with industry rep- resentatives to discuss how to erase a projected annual short- fall of about $352,000. An Ecology spokeswom- an said in an email Thursday the department will meet with industries again May 24 in Moses Lake to continue dis- cussions, but does not plan to present specific numbers. Ecology has said it plans to make a formal rule proposal in August and have new fees in place by next March. Washington Cattle Feeders Association Executive Director Jack Field, who’s involved in the discussions, credited Ecol- ogy for seeking advice. But businesses won’t have much to respond to until they know how much they would pay under a new fee schedule. 20-2/#4N
