14 CapitalPress.com
February 9, 2018
Company to launch new GM apple product
By DAN WHEAT
Capital Press
SUMMERLAND, B.C.
— A small volume of geneti-
cally modified non-browning
sliced apples apparently were
well received by consum-
ers in the U.S. Midwest and
Southeast in November, and
the company making them
will launch a new product in
mid-February.
Neal Carter, president of
Okanagan Specialty Fruits
Inc. in Summerland, won’t
say what the new product is
but says 92 to 94 percent of
consumers who ate the com-
pany’s GM sliced Golden De-
licious in promotional testing
in six U.S. Midwest stores last
February and March accepted
them and said they would like-
ly buy them.
“We don’t feel we lack
consumer acceptance,” Carter
said.
Asked if he believes it is a
very vocal minority opposed
to GM products, he said, “Yes,
very much so.”
OSF launched commercial
sales Nov. 1 of only 40,000
to 50,000 pounds of Arctic
Okanagan Specialty Fruits
Okanagan Specialty Fruits
The non-browning genetically
modified Arctic Fuji, developed
by Okanagan Specialty Fruits
of Summerland, B.C., has been
approved for production and
sales in Canada.
Arctic Golden Delicious apple
slices sold last November in the
U.S. Midwest and Southeast.
The Canadian product is the
first genetically modified apples
sold in the U.S.
Golden slices in about 70
stores under three retail ban-
ners across the Midwest and
into the Southeast. They sold
in 10-ounce pouch bags at a
range of premium prices.
The sales and the earlier
testing provided valuable con-
sumer feedback on price points
and packaging, Carter said.
Another
120,000
to
130,000 pounds of the 2017
crop was held back for the new
product coming soon. Testing
of bagged, whole apples may
come next fall, he said.
OSF’s products all sell un-
der its Arctic brand.
The Canadian Food Inspec-
tion Agency and Health Cana-
da announced Jan. 30 that the
Arctic Fuji can be sold as food
in Canada, poses no greater
risk to human health than ap-
ples currently sold, has no im-
pact on allergies and is not dif-
ferent in nutritional value than
non-GM apples.
The Arctic Fuji had already
been approved for sales in the
U.S. by USDA in September,
2016.
Arctic Golden Delicious
and Granny Smith have been
approved in both countries
and OSF plans to submit re-
quests for approval of an Arc-
tic Gala later this year or ear-
ly next year. Approval takes
about nine months in the U.S.
and more than twice that in
Canada, Carter said. OSF is
considering other varieties, he
said.
Carter, company founder,
silenced a gene, reducing the
enzyme polyphenol oxidase
(PPO) to prevent browning
when apples are sliced, bit-
ten or bruised. The apples
match the industry norm of
not browning for three weeks
after slicing but without using
flavor-altering, chemical addi-
tives that the rest of the fresh-
sliced apple industry uses.
OSF touts its slices as pre-
servative free.
OSF grows most of its ap-
ples in undisclosed orchards
in Washington state and is ag-
gressively planting to increase
volume to become a national
brand in the U.S., Canada and
elsewhere, Carter said.
“We are pursuing regula-
tory approval in Mexico and
Argentina right now,” he said.
The company will have 660
acres of orchards in Washing-
ton by the end of 2018, grow-
ing to 1,450 by mid-2019 and
in 2020 will plant an addition-
al 1,000 acres in Washington
and the East Coast, he said.
So far, orchards are all
company owned but contract
growers likely will join, Car-
ter said.
Washington has been the
focus because of the availabil-
ity of large tracts of land and
because it’s good apple coun-
try, he said.
The company is consider-
ing several sites in Washing-
ton to build a storage, pro-
cessing and packing facility.
Currently, it slices apples on
its own line in facilities of an-
other company in the Pacific
Northwest.
Sales have only been in the
U.S.
“In Canada, you have to
have packaging in both En-
glish and French so it’s not
worth doing until we have
more fruit,” Carter said. “We
may have a small amount here
late this year from the 2018
crop.”
Warming causes worries for Washington snowpack
By DAN WHEAT
Capital Press
YAKIMA, Wash. — Low-
land snow on the east slopes
of the Cascade Mountains is
far less this winter than last
and a warm February could
threaten snowpack needed for
summer irrigation.
Statewide snowpack was
100 percent of normal on Feb.
5 and water storage in Yaki-
ma Basin reservoirs was 131
percent of average, according
to the Natural Resources Con-
servation Service and U.S.
Bureau of Reclamation.
It was 68 degrees Feb. 4 in
Yakima and 57 in Wenatchee,
according to the National
Weather Service.
“We’ve had three to four
days of considerably above
normal temperatures and rain
which does not bode well for
building mountain snowpack
as we should be doing,” said
Scott Pattee, NRCS water
supply specialist.
“It’s all a function of La
Nina. Warm and wet,” he said.
Snow depth shrank several
inches in a few days but not
water content and soil mois-
ture is good, Pattee said.
Snowstorms could rebuild
snowpack or even just cool-
er temperatures could main-
Western U.S. snow water equivalent
Basin-wide percent of February 2018 snowpack compared
to the aggregate average (1971-2010).
315
66
150
390
292
332 234
21
137 132
137
519
668
363
442
569 535 407
618
252
27 74
435 331 474
133 280
303
174
22
233 138 289489
321
664
136
3
345
88
562 558 233
12
112
377
132
100 393
12 25
200
246
9 0 20
132 419
75
22
57
20
126 156
231 276
25
36 85
2
170
126 31
7
240
20
0
31 63
0
168 270
0
0
332
43
156
14 16
22
8
26
0
57
59
18
13
39
6
145 237
277
463
277 346
291
Percentage key
(As of Feb. 6)
Unavailable
Less than 50%
50-69%
70-89%
90-109%
110-129%
130-149%
More than 149%
13 45 0
20
11
10
25
10
20
42
43
12
36
Miles
0
Source: USDA, Natural Resources Conservation Service
tain existing snowpack, but
the February outlook is for
above normal temperatures
0
150
300
Capital Press graphic
and equal chances of precip-
itation, he said.
March and April are ex-
pected to be below normal in
temperature and above nor-
mal in precipitation, he said.
“If we go through Febru-
ary with higher than normal
temperatures, that could start
to hurt if we’re not getting
snow, just rain. This time of
year, we should be collecting
snow in the mountains every
day and we’re getting rain,”
Pattee said.
Chris Lynch, U.S. Bureau
of Reclamation hydrologist
overseeing the Yakima Ba-
sin’s five mountain reservoirs,
said the water situation looks
good but that he doesn’t want
to lose ground and never likes
to see mountain snow melting
in February.
“Snowpack isn’t bad right
now but we don’t have a lot
of snow-building weather in
our forecast,” he said. “De-
cember was dry in the mid-
dle and came back strong at
the end. Historically, the ba-
sin builds snowpack through
mid-April.”
The five reservoirs, serving
464,000 acres of Yakima Ba-
sin farmland, were at 66 per-
cent of their 1,065,400-acre-
feet capacity on Feb. 5.
Precipitation at the reservoirs
for the first five days of Feb-
ruary was 8.65 inches and wa-
ter year-to-date precipitation
(Oct. 1 through Feb. 4) was
170 inches or 122 percent of
average.
Preliminary April through
September streamflow fore-
casts call for normal to slight-
ly above normal flows for the
upper and central Columbia
River regions, Pattee said.
“Some of the best snow in
the state is in the upper Co-
lumbia and into Canada,” he
said.
Snow water equivalent
snowpack in the Spokane ba-
sin was 106 percent of normal
on Feb. 5. The upper Colum-
bia (Okanogan and Methow
rivers) was 131 percent. The
central Columbia (Chelan,
Entiat and Wenatchee) was
106, the upper Yakima was
92 and the lower Yakima
95. Walla Walla was 76, the
lower Snake River was 103,
the lower Columbia was 84,
south Puget Sound (from Cas-
cade crest to lowlands) was
80, central Puget Sound 90,
north Puget Sound 116 and
the Olympics 126.
Snow is sparse below
4,000 feet in the foothills west
of Wenatchee. Lowland snow
levels and lack of snow are
normal for this time of year
but noticeable compared with
a year ago, which was above
normal, Pattee said.
Pulse industry asks federal government to purchase excess stocks
By MATTHEW WEAVER
Capital Press
Representatives of the
pulse industry will ask the fed-
eral government to purchase
excess pea and lentil stocks
after India unexpectedly hiked
its tariff on the crops.
The request is to reduce
“burdensome” stocks from an
unexpected market shock be-
fore the new crop year, said
Tim McGreevy, chief execu-
tive officer for the USA Dry
Pea and Lentil Council.
India was the largest export
market for U.S. peas and len-
tils, purchasing 150,000 metric
tons to 200,000 metric tons of
dry peas and 60,000 to 90,000
metric tons of lentils each year
in the last five years.
India represents about 25
to 30 percent of total pulse ex-
ports, McGreevy said.
In November, the Indian
Submitted Photo
Peas are shown in the header during harvest near Kendrick,
Idaho. A decision by India to increase its tariffs on peas and lentils
from the U.S. has forced the industry to ask the USDA to boost its
purchases of pulse crops.
government imposed a 50
percent tariff on all dry peas
imported by India. Then, in
December, the Indian govern-
ment imposed a 30 percent
tariff on lentil and chickpea
imports.
“What was particularly
disturbing about this decree
was they made it effective im-
mediately,” McGreevy said.
“That was very difficult, be-
cause some U.S. shippers had
product on the water bound to
be delivered into India by the
end of the year, or was already
loaded and shipped. That was
what we considered to be quite
poor trade practice.”
The shipments had to be re-
directed, causing some shippers
to take losses, McGreevy said.
India is within its rights un-
der the World Trade Organiza-
tion to impose the tariff on im-
ported pulses, McGreevy said.
The reason given is that In-
dia had a fairly large domestic
crop of pulses and is protect-
ing prices for its growers. Mc-
Greevy said it’s had the desired
effect: The tariff completely
shut off all sales into India, and
domestic prices increased “sig-
nificantly.”
India is the largest producer
and “by far” the largest con-
sumer of pulse crops in the
world, McGreevy said. Eighty
percent of India’s population is
vegetarian and constantly seeks
inexpensive sources of vegeta-
ble protein.
Stronger demand domes-
tically has helped soften the
blow for U.S. farmers, he said.
But stock levels are well above
the past five years. Prices have
dropped by 2 to 3 cents per
hundredweight since the tariffs
were announced.
“It was the biggest mar-
ket shock I’ve been a part of
in my 24 years,” McGreevy
said. “We’ve had droughts be-
fore, but you can kind of see
them coming. But to have a
shock like this where literally
a government decision to cut
off trade, after you’ve signed
contracts — it was significant.
There’s no way to plan for that
(or) insure against that. There
was no indication this was
coming.”
Wheat, soybean and corn
industries have faced a similar
tariff in India, McGreevy said.
“This isn’t something oth-
er commodity groups haven’t
faced — they have,” he said.
“It’s just the first time we’ve
faced it, because they’ve gen-
erally been pulse-deficit.”
Oregon wineries see surge in direct-to-consumer sales
By GEORGE PLAVEN
Capital Press
The U.S. wine industry continues
to experience a meteoric rise in di-
rect-to-consumer sales, with Oregon
wineries seeing the sharpest increase of
all in 2017.
That’s according to an annual report
by Wines & Vines magazine and So-
vos, a company that makes tax compli-
ance and regulatory reporting software.
Together, they have tracked growth in
the direct-to-consumer channel since
2010.
Wineries shipped more than 5.78
million cases direct-to-consumer in
2017, valued at $2.69 billion. Both
figures show roughly 15 percent annu-
al growth in the sector, outpacing the
six-year average of 11 and 12 percent,
respectively.
Oregon led all wine-producing
regions with a 31 percent gain in di-
rect-to-consumer sales, followed by
Washington at 26 percent and Sonoma
County, Calif., at 25 percent.
Napa County, Calif., remained the
leader both in volume and value of di-
rect-to-consumer sales, even after the
devastating wildfires that struck the re-
gion during harvest in October — the
busiest time for tourists.
In Oregon, direct-to-consumer wine
shipments have increased 214 percent
since 2012, with Pinot noir driving more
than half of that volume. The average
price per bottle also increased by 2.8
percent, to $39.16.
“Oregon is clearly having its day,”
the report states. “Due to larger than
average harvests in 2013-2015, along
with increased attention from inves-
tors, the trade, media and consumers,
Oregon’s sales and shipments are flour-
ishing.”
Sally Murdoch, a spokeswoman for
the Oregon Wine Board, said the news
is encouraging to every Oregon wine-
maker.
“This represents a lot of hard work
on the part of our producers in an ex-
tremely competitive and challenging
market,” Murdoch said. “It also shows a
lot of successful engagement with con-
sumers with a very sharp focus on what
consumers want in the high-end wine
sector.”
The Oregon Wine Board’s figures
show a similar increase in direct-to-con-
sumer sales, which rose by 63,536 cases
in 2016 over 2015.
Murdoch said tasting rooms are
largely responsible for those impressive
increases.
“People really want to get in there,
see the people who make the wine and
buy,” she said. “It’s very tactile.”
WSDA
determining
effects of
TPP pact
without U.S.
By MATTHEW WEAVER
Capital Press
The Washington State
Department of Agriculture
is trying to determine the
impact of the Trans-Pacif-
ic Partnership proceeding
without the U.S.
“We’re still figuring
out what that impact is,
and how quickly those
competitive disadvantages
will emerge,” said Derek
Sandison, WSDA director.
“How much time do we
have to find a solution be-
fore we actually are having
real, tangible impacts — in
terms of how much more
tariffs we’re paying than
our competitors?”
The U.S. wheat industry
estimates the tariff alone
will create a $200 million
annual disadvantage in Ja-
pan by the time the trade
deal is fully implemented
in nine years.
The department is
working with various com-
modity organizations to
get a sense of what they’ve
heard and know, Sandison
said. The state is using its
connections with USDA to
assess what they’re seeing.
“Who’s impacted, by
how much, and when?”
Sandison said.
During a National As-
sociation of State Depart-
ments of Agriculture fo-
rum in Washington, D.C.,
he spoke with Ted McKin-
ney, USDA Undersecretary
for trade and foreign agri-
cultural affairs, and Sharon
Bomer Lauritsen, assistant
trade representative for ag-
ricultural affairs and com-
modity policy for the U.S.
Trade Representative.
Sandison told McKin-
ney and Lauritsen that the
agreement, now called TPP
11, will create an uneven
playing field for U.S. com-
modities.
McKinney and Laurit-
sen said one problem is the
U.S. Senate is sitting on
the confirmation of Greg
Doud, who was nominat-
ed to be the chief agricul-
tural negotiator for USTR,
Sandison said. The hold
was recently lifted, but no
Senate vote has been set on
his appointment.
“Not having that criti-
cal position in place does
somewhat limit their abili-
ty to have a broad, ranging
set of discussions through-
out ag trade,” Sandison
said. “From their stand-
point, they still want to
pursue bilaterals, although
we’ve seen in recent news
stories that the president
has expressed some inter-
est in maybe revisiting the
multilateral side of this,
which has yet to be seen.”
Wheat industry rep-
resentatives recently met
with Japanese government
officials and flour millers
and were told that nation is
not interested in a bilateral
agreement. Sandison said
Japan expressed similar
sentiments to other groups
recently, including the
Montana Department of
Agriculture.
Japan recently entered
an agreement with the Eu-
ropean Union, which will
likely affect the ability to
compete selling Washing-
ton wine in Japan, Sandi-
son said. Wine-selling
competitors such as Aus-
tralia and New Zealand
remain in TPP, and will
have a competitive advan-
tage over the U.S. in the
Japanese market, Sandison
said.
Sandison planned to
be in Washington, D.C.,
this week with the state’s
wheat industry represen-
tatives, meeting with the
White House’s agriculture
and trade representative to
explain the potential im-
pacts of the U.S. leaving
TPP.
State agriculture repre-
sentatives met last week
with Senate Finance Com-
mittee staff to voice their
concerns.